Cutting Edge Technologies: Industry Insights

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Cutting Edge Technologies: Industry Insights Synthetic methane as a key player for the energy turnaround eurogas Workshop: Smart gas grids in practice Brussels, December 01, 2015 Reinhard Otten Sustainable Product Development AUDI AG

Why do we need innovative renewable fuels? Best case energy supply for transport in EU-27 (~ 2050) Naval transportation 1% ~5.000 TWh EU energy consumption in the mobility sector in 2020 1 Aviation 14% Heavy duty mobility 33% Individual mobility 50% Railway 3% Long range Short range Power-based renewable gaseous & fluid fuels Electric power Quellen: 1 Eurostat, European Commission, DG Energy and Transport: European Energy and Transport, Trends to 2030

Stages of electrification Energy supply HEV Full Hybrid Electric Vehicle PHEV Plug-in Hybrid Electric Vehicle BEV Battery Electric Vehicle FCEV Fuel Cell Electric Vehicle H 2 > 2 km 50 km Target: > 500 km Target: > 500 km Examples Q5 hybrid quattro Audi A7 Sportback h-tron quattro A3 e-tron VW e-golf (190 km electric range) VW Jetta Hybrid Golf SportWagen HyMotion

Audi A7 Sportback h-tron quattro The hydrogen option based on fuell cell technology Dynamic 0 60 mph in 7,8 sec 113 mph (180 km/h) e-quattro Practical for everyday driving Driving range 342 miles (550 km) Sustainable Zero-emissions for long-distance mobility Sophisticated No limitations for passengers: package, equipment and comfort at the highest level

Fossil fuels (and biofuels) are limited in their availability: Audi s e-fuels will help fill the gap Fossil fuels Biofuels Audi e-fuels

Audi e-fuels are fuels made from renewable energies, water and CO 2 + + renewable energies Audi e-fuels: water CO 2 Audi e-fuels No fossil sources No competition with food production Compatibility with present infrastructure Use of CO 2 as raw material

Residual Load [GW] Despite ideal grid coverage, renewable energy supply needs very large storage capacities 60 40 20 0-20 -40-60 -80-100 Residual load after applying load management and pumped hydro storage (scenario 78% renewables) Deficit Surplus Capacity and power Gas storage today Capacity and power Pumped hydro today -120 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Surplus: - 187.7 TWh Deficit: 43.5 TWh Gas storage facilities have 3,000 times the capacity of all pumped storage facilities in Germany

Power-to-Gas: Coupling the electricity sector and the gas / mobility / heat sectors electricity H 2 CH 4 = e-gas Feed in station electrolysis methanation CH 4 CO 2 Gas grid: power CO 2 Audi A3 g-tron CH 4 = natural gas (for industry, heat, residential sectors) CO 2 + CH 4 CH 4 Audi s first CO 2 source: CO 2 from waste fueled biogas plant CH 4 = biomethane gas fired power plant

Partners Audi e-gas project

Power-to-Gas: Audi e-gas Anlage in Werlte (Emsland) Quelle: EWE Netz

Technical highlights of the Audi e-gas plant World s first industrial power-to-gas plant Electric input power of electrolysis: 6 MW Intermittent operation, use of surplus renewable electricity World s largest methanation reactor (manufactured by MAN) e-gas production: max. approx. 1000 t p.a. Complex heat management with biogas plant Two interconnected heat circuits Even use of excess heat of electrolysis

Technical Data Audi e-gas plant (Werlte) Energy content e-gas (average) Electricity input (prognosis) Power input electrolyzers 13,85 kwh/kg 26 29 GWh/a 3 x 2 MW Efficiency power to gas (with using heat) 54 % ~70 % Max. H 2 output Max. H 2 storage time Max. e-gas output Operation time (prognosis) e-gas output (prognosis) 1300 Nm³/h 60 min 325 Nm³/h 4.000 h/a 1000 t/a Seite 12 AUDI AG

el. Power [kw] Dynamic drive of the electrolysis From 04.03.2014 7000 Summe Wirkleistungen Trafo 1-3 Vorgabe Elektrolyseurleistung el. Wirkleistung gesamt Peripherieleistung 6000 5000 4000 3000 2000 1000 0 22:48 0:00 1:12 2:24 3:36 4:48 6:00 7:12 Clear following of a given signal

Simulation: How does a PtG plant run in function of prices at the electric power spot market? Running especially at night and during the weekends Making use of times of low demand and ongoing renewable energy production Turning on/off 33 times in one month

Audi CNG cars fueled by e-gas show best-in-class emission values and are high leverage for CO 2 -reduction in the mobility sector CO 2 -eq [g/km] 168 CNG to gasoline: -15% CO 2 (cradle-to-grave) e-gas to gasoline: -70% CO 2 (cradle-to-grave) Fuel production(well-to-tank) Consumption (tank-to-wheel) Vehicle production 30 145 33 114 92 53 46-65 25 20 20 33 3 Gasoline (fossil) CNG (fossil) 92 BEV (wind power) BEV (EU-Mix) assumptions: compact class (A3 TFSI & g-tron); 200.000 km over lifetime e-gas (wind power)

How do customers use e-gas? Customer opts for a pre-paid contract for Audi e-gas Amount of fuel is registered via his Audi e-gas card Audi feeds in same amount of e-gas Monthly account statement of amounts of e-gas purchased and reduction in CO 2 emissions Fill up at more than 600 German CNG stations Easy payment with e-gas credit card Monthly debiting of fuel price and e-gas climate fee Monthly reporting of saved CO 2 by using e-gas

The Audi e-gas project helps to tackle important challenges of the future in the mobility and the energy sector Today Tomorrow and today CO 2 -neutral energy for extra-urban mobility Energy turnaround (Storage of renewable energy, control of power grid)

PtG = Synergy catalyst for powertrains of the future: CO 2 -neutral mobility for short and long distances e-power (e-tron) Audi e-gas Project: CO 2 -neutral mobility for three drive concepts e-hydrogen (HFC) e-gas (g-tron) Fuels from renewable energy sources, CO 2 and water Impulses for expanding renewable energy sources.

The Audi e-gas plant was just the beginning. A dozen plants running, producing H 2 or CH 4 AUDI AG, 6MW el Werlte, Lower Saxony, Germany: Production of CH 4 for A3 g-tron Source: dena A dozen more plants currently planned across EU (France, Netherlands, Sweden, ). -19-

Theoretical calculation of PtG potential: Land needed for supplying passenger cars of today by PV + PtG About 110.000 km 2 for production of e-gas (efficiency PV 17%, efficiency PtX 60%) Land use about 20 times lower compared to biofuels And: Also non-arable land can be used

Synergies Power-to-Gas / Biomethane Production Connection to natural gas grid Option: Common feeding-in compressors Highly concentrated CO 2 from biogas-upgrading available Waste heat from PtG avoids gas burning for heat purposes in biogas plant improved efficiency, reduced emissions Mixture of product gases improves efficiency of dynamic PtG operation Optional: Positive control power and complementary heat provision by integrated CHP plant

Conclusion Sustainable energy system of the future needs flexibility options and storage Power-to-Gas and biomethane plants are such options, make use of existing infrastructures, and are complementary and highly synergetic solutions Methane as a universal fuel can help to integrate more renewable energy CNG mobility is a logical and synergetic complement to E-mobility Power-to-Gas opens the pathway for more green hydrogen in the economy End consumer charges for flexible PtG plants must disappear Innovative renewable fuels (w/o biomass) must be part of the biofuels quota GHG regulations regarding passenger car fleets should be opened for renewable fuels with low land use change factors 22

Thank you! Reinhard Otten Sustainable Product Development AUDI AG reinhard.otten@audi.de

Efficiency PtG: Theoretical considerations Dr. Sterner 2010

1 23 45 67 89 111 133 155 177 199 221 243 265 287 309 331 353 375 397 419 441 463 485 507 529 551 573 595 617 639 661 683 705 727 749 771 793 815 837 859 881 % [Nm³/h] Starting process of methanation: ~ 5 min. until feed-in quality 100 90 80 70 60 50 40 30 20 10 0 e-gas Einspeisung CH4_Konzentration H2_Konzentration CO2_Konzentration Prüfung_CH4 Prüfung_H2 400 350 300 250 200 150 100 50 0 Sekunden

Thermal management biomethane / PtG plant Concept and source:

Installed power MW Power price /MWh PtG in a future power mix 2022 with 55% renewables (moving average of 250 h) 100000 80000 60000 40000 20000 0 1 GW PtG Export avoidance of EEG-subsidy -20000 1 1000 renewables 1999 2998 3997 4996 5995 6994 7993 Hour h -40000 Use of surplus renewables PtG 4.000h Lignite is baseload power plant Source: Study of IAEW II der RWTH Aachen Optimalszenario ; 12.10.2011 50 45 40 35 30 25 20 15 10 5 0-5 -10-15 -20 EE Speicher (Aus) Import KWK Erdgas Speicher (Ein) Steinkohle Export Braunkohle Nachfrage Marktpreis

Power supply with direct-wind-commercialization Hourly In-Stream -commercialization Unlimited bids powerbourse Windpark Limited bids e-gas D+1 Power-physically Power-quality Schedule Origin certificate wind (DK,A,CH) Rebuy of green ability Devaluation at HKN-registry Power purchase by an In-Stream direct-wind-commercialization to achieve 100 % green electricity