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Conversion of CO2 to Using as Feedstock

C.B. Panchal, Richard Doctor, Rachel Sturtz and John Prindle E3Tec Service, LLC 2815 Forbs Avenue, Suite 107 Hoffman Estates, Illinois 60192 [email protected] www.e3-tec.com

1 SBIR Phase II Project Status

➢ Technical: Developed validated ASPEN Plus® design based on pilot-scale tests at Michigan State University

➢ Economic Analysis: CAPEX for a 50 kTA DMC plant, competitive selling price of DMC compared to syngas-based DMC production, ProForma based NPV & IRR

➢ Intellectual Property: Two patents on DMC process plus one patent on Differential Kinetic Test Unit (DKTU)

➢ Industry Interactions: Interactions with potential industrial organizations for feedback on TRL status and economic analysis

➢ Path Forward: Commercial demonstration (build and operate) to validate techno- economic merits

2 Alkyl Carbonates - Ideal Candidates for

Conversion of CO2 to Value-Added Products

Expanding Market Demands

CO2 DMC Alkyl Carbonates ➢ High market growth considering replacement of based process and to meet expanding demands for and surging demand for LITHIUM-ION Li-ion batteries BATTERIES

DMC AS OXYGENATED ➢ E3Tec focus on high-purity 99.9%+ CO based DMC LOW VOC FUEL ADDITIVE (DIESEL) 2 POLYCARBONATES REPLACING ➢ MEG is one of the top 50 chemicals

Global DMC Market Potential - kTA* Application 2017 2030

DMC in Production 2,440 4,910 Li-Ion Battery 45 350

Solvents (replacing ketones) 1,430 1,820 Chemical Intermediate, e.g. 11,350 18,470 Potential diesel oxygenate additive** 1,580,000

*kTA - Thousand Tonnes Per Year ** Based on government approval for pollution control

3 Alkyl Supply Chain

Alternate Supply Chain Consumer Polyethylene Products Mono-Ethylene Terephthalate (PET) Fiber, Film, Glycol (MEG) Bottles Polycarbonate Plastics Plastic Captured E3Tec Alkyl Products CO2 Process Carbonates Intermediate, e.g. isocynate Commodity (DMC) Chemicals Lithium-Ion Energy Batteries Storage

SynGas NG Chemical Fuel Diesel Process Manufacturing Additives

Low VOC Solvents NG and Phosgene Paints Methanol Process Present Supply Chain

4 E3Tec’s Process Based on Two Chemical Pathways

Ethylene-Oxide-Based Process with Selective Co-Production of Mono- (MEG)

O O + CO2 O O Ethylene Oxide Ethylene Dioxide Carbonate H H O O CH3 O + 2 CH3OH H3C + HOC COH O O O H H Ethylene Methanol Di-Methyl Mono- Carbonate (DMC) Glycol

5 E3Tec’s Process Based on Two Chemical Pathways

Urea-based Process with Acting as a Chemical Carrier and for Breaking DMC/Methanol Azeotrope

O O

NH3 + CO2 + H2O - + H2N O NH4 H2N NH2 Ammonia Carbon Dioxide

O O O CH3OH CH3OH CH3 H3C CH3 + NH + NH3 O 3 O O H2N NH2 H2N

Urea Methyl Ammonia DMC Ammonia Carbamate

6 Heat Integrated Reactive (HIRD) Process Equipped with Side Reactors & PerVap Membrane

Captured MeOH CO2 Ethylene Storage Oxide Recycle MeOH PerVap to Side Membrane Reactors

Recycled MeOH High-Purity Ethylene EG Carbonate Process Side Recycle from Reactor Reaction Column

To MeOH Recovery Column

Side Product Recovery Reactor MeOH Column Recovery High-Purity Column DMC

Recycled

MeOH

Fresh Reaction MeOH Column Recycle with EC Feed

DMC 51.7 kTA MEG 35.8 kTA CO2 Consumption 25.6 kTA Purity of Products: DMC 99.99% wt MEG 98.9% wt US Patent 9,518,003 B1 December 2016 and 9,796,656 B1 October 2017

7 Integrated CO2 Source DMC Process

2 to 3 Stage Compressor P ~ 3.5 bar CO2 P ~ 35 bar Capture DMC Process

Captured CO2 Ethylene Oxide

High-Purity Methanol MEG DMC MEG High-Purity Ethylene DMC Oxide Natural CO2 Cooling Water Gas Source Electric Power Steam Combined Heat & Power

8 Economic Analysis of Integrated Process Case Study: 15 MWe Coal Plant

Baseline Case UIUC 15 MW Coal Plant Power Generation 15 MWe

CO2 Emission 300 Tonnes / day CO2 Capture & Sequestration Costs

CO2 Capture Costs $56.2 $ / Tonne CO2 $16,860 $ / day

Sequestration Costs $44.8 $ / Tonne CO2 $10,080 $ / day COE Impact (assuming 90% availability)

CO2 Capture $52

CO2 Sequestration $31 $/MWe Total $83 DMC/MEG Production

Fraction of CO2 Emission Consumed in DMC 25%

CO2 Consumption 75 DMC Production 150 Tonnes / day MEG Production 105 Annual DMC Produciton 50.0 kTA Annual MEG Production 35.0

Product Margin Required for Offsetting CO2 Costs

CO2 Capture & Sequestraiton $180 Commercial Price of 99.99 wt % Purity DMC $1,789 $ / Tonne DMC Production Costs of CO2-Based DMC $1,285 Product Margin $504

9 C-footprint Analysis ASPEN Plus® based process block diagram

P1 Captured P40 CO2 CO2 Emission

P24 Feed Methanol P4 Ethylene P23 PerVap P2 Carbonate P27 Manifold Cooler Recycle Ethylene Process P32 Oxide P28 Feed Cooler P6 Feed P30 P5 Pre-Reactor Stripping P25 Heater Cooler Column Methanol P7 Feed Recovery Column Recycled Heater P22 PerVap P29 P31 Recycled Methanol Heater PerVap Product Methanol Column P9 Feed P10 Side Cooler Reactor Recycled P26 Feed Methanol Heater P33 P34 P19 Side DMC P18 Feed Product P11 Flash Reactor Product P12 Feed P8 Main Cooler Cooler Heater Distillation Column P21 Feed P20 Flash P3 MeOH P14 Heater Feed Feed P15 Bottom P13 Feed P36 EG Heater Reactor Cooler P35 Product Product Cooler

P16 Flash Steam to Side Reactor Heaters P38 Steam P39 Fuel - Generation NG P17 Reboiler

P37 P42 P41 Byproducts Electricity Pumps Usage

Dimethyl Carbonate (DMC) / Ethylene Glycol (EG) Process Block Diagram Mass Flow Energy Flow

10 C-footprint Analysis

Offsetting CO2 Emissions

CO2-Based Syngas-Based Process Process

CO2 Consumption, tonne CO2/tonne DMC -0.51 0

CO2 Emission Inside Battery Limits (ISBL) 0.58 1.29 Energy Consumption Thermal, MWh/Tonne DMC 2.87 4.41 Electric, MWh/tonne DMC 0.01 0.02 Cooling water, tonnes/tonne DMC 108.0 206.5 CO2 emission Outside Battery Limits (OSBL) Methanol, tonne CO2/tonne DMC 0.39 0.47 Ethylne oxide, tonne CO2/tonne DMC 0.31 Total CO2 Emission, tonnes CO2/tonne DMC 1.28 1.76

Offsetting CO2 Emission of MEG Produciton -0.58 0

Net Emission tonne CO2/tonne DMC 0.19 1.76

11 Potential Abatement of CO2 Emissions

Global CO Abatement Potentials* kTA Application 2 2018 2030

DMC in Polycarbonate Production 3,831 7,708 Li-Ion Battery Electrolyte 71 550

Solvents (replacing ketones) 2,245 2,857

Chemical Intermediate, e.g. Polyurethane 17,820 28,998

Potential diesel oxygenate additive** 2,480,600

*Based on offsetting CO2 emissions by commerial production of DMC by syngas and MEG by hydration of ethylene oxide processes

** Based on government approval for pollution control

12 Economic Analysis Competitive Product Margin

E3Tec Process Syngas Based Process Plant Capacity, kTA DMC 51.7 50.0 MEG 35.0 0.0 Capital Costs (CAPEX), $ Million $ 164 $ 223 Costs $/tonne DMC Total Variable $ 291 $ 431 Total Fixed $ 196 $ 254 Cash Cost of Production $ 487 $ 685 Capital Charge $ 798 $ 1,104

Selling Price $ 1,285 * $ 1,789 Product Margin $ 504 * Taking into credit for MEG as co-product

13 Economic Analysis Proforma Based NPV and IRR

Economic Parameters

Plant Service 30 Years Normal Discount Rate 9 % Corporate Income Tax 34 %

Inflation Rate Between 2.2 % & 3.0 %

Net Present Value (NPV) $ 249 million Internal Rate of Return (IRR) 21%

14 Technology Demo Unit as Next Step

Design Criteria

➢ Skid-mounted unit with DMC capacity of one tonne per day

➢ Total Installed Cost (TIC) within $10 million

➢ Continuous operation of fully integrated process, including recycle streams

➢ Catalyst activities for an extended period (12 months or more)

➢ Demonstrate product yield and purity – DMC and MEG

➢ Scale-up from MSU test unit ➔ Demo Unit ➔ Commercial plant

➢ Validation of the ASPEN Plus® design model as well as reactor models

15 MSU Test Unit

HE-8

PT T HE-2 T

MeOH/ DMC/ PT HE-7 HEMC

T T

T T T T T HE-3 HE-9 T T

PT HE-14 HE-8 T T Side Draw T for EG T T P T P T HE-12 T T T T HE-6 T P T T PT SR-1 SR-2 T T T T T SR-3 T HE-5 T T T HE-7 T HE-11 T T T T T T T HE-4

HE-1 HE-13 MeOH B-1 P P Bottom FM FM Product MeOH FM HE-10

P M Methanol D DMC E Experimental Data EG Ethylene Glycol SBIR Phase II Project P ASPEN Plus Prediction EC Ethylene Carbonate SIZE DRAWING # TITLE REV H HEMC DRAWN D E3T-PP002 MSU Pilot Plant DMC Tests VII Feed: Ethylene carbonate dissolved ISSUED No SCALE None June 6, 2017 SHEET 1 OF 1 in methanol

16 Technology Demo Unit Scaled up from MSU Test Unit

MeOH Storage Recycle MeOH Recycled PerVap to Side MeOH Membrane Reactors High-Purity EG Mixing Tank Ethylene Carbonate

Recycle from Side Reaction Column Reactor

To MeOH Recovery Column Methanol Recovery Column

Side Reactor Product Recovery Recycled Column MeOH Side High-Purity Reactor DMC

Fresh Reaction MeOH Column Recycle with EC Feed

17 Path Forward Partnership Opportunities

➢ Funding and Investment: Pilot plant demonstration of the technology at a cost of $10 million with a possibility of SBIR Phase III CRADA funding

➢ Licensing Partners: Licensing the patented technologies and/or strategic alliances for advancing TRL to commercialization stage

➢ Facilities: Industrial site for pilot plant demonstration

➢ Collaboration for Marketing: DMC Offtakes

➢ Path Forward: Commercial demonstration (build and operate) to validate techno-economic merits

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