Liquid Sunshine Opportunities and Pathways to a Green Future for All

DRAFT Summary Report (July 31, 2017)

Summary Report Based on a Chinese Academy of Science report of similar title

Choon Fong Shih, Tao Zhang, Jinghai Li Chinese Academy of Sciences (CAS)

Contributing Institutes Dalian Institute of Chemical Physics, CAS (DICP) Institute of Coal Chemistry, CAS (ICC) Institute of Process Engineering, CAS (IPE) Institute of Electrical Engineering, CAS (IEE) Institute of Engineering Thermophysics, CAS (IET) Shanghai Advance Research Institute, CAS (SARI) Research Center for Eco-Environment Sciences, CAS (RCEES) University of Chinese Academy of Sciences, CAS (UCAS) Chinese Academy of Sciences Holdings (CASH) Clean Energy Commercialization Company (CECC)

Pre-reading material for “Opportunities and Challenges for Methanol as a Global Liquid Energy Carrier” Stanford University, July 31st – August 1st, 2017

DRAFT Summary Report (July 31, 2017)

ABSTRACT Liquid Sunshine: From Fossil Fuels to Green Liquid Fuels

Nature combines energy from the Sun with CO2 and water from the environment to produce glucose, a stable form of chemical energy. Glucose is transported, through liquid-based circulatory systems, to the cells of organisms where it is converted back to energy for regenerating cells and driving electrical and mechanical functions. In these processes, CO2 and water, which facilitate the transport of the Sun’s energy, are recycled back to the environment. This cycle has been at work for billions of years. Drawing inspiration from nature, this report discusses the Liquid Sunshine vision of an ecologically-balanced (carbon-neutral) green energy system encompassing energy harvesting, conversion, storage, distribution and utilization that is compatible with nature’s cycle. The ecological balance is achieved by using CO2 and water to bind and store the sun’s energy as green liquid fuels. At utilization, CO2 and water are returned to the environment, thus emulating nature’s energy-carbon-water cycle. In such a system, energy-dense stable liquids are stored in energy reservoirs and drawn and distributed on demand to meet the energy needs of a multitude of applications across the world. To achieve the vision of an ecologically-balanced energy system, the Liquid Sunshine roadmap outlines intermediate steps that entail low-emissions production of clean methanol combining fossil and renewable energy. Commercial deployment of clean methanol production could be expected by the early 2020s. More than effecting an immediate positive impact on the environment, it also creates the impetus for the further development of advanced technologies towards the production of green methanol from renewable energy.

Methanol is a natural first target of Liquid Sunshine. It emits less CO2 than coal and oil and practically no NOX, SOX, VOCs, PM. It is also a versatile multi-purpose energy carrier for various applications: (i) feedstock for petrochemicals, (ii) fuel for stationary heat, power and machinery, (iii) fuel for marine and ground transportation, (iv) potential medium for large-scale energy storage as “liquid electricity” and “liquid hydrogen” carriers. The simplest of alcohol fuels, methanol is a building block for higher energy density alcohols, such as ethanol, propanol and butanol. A 2013 report1 highlights that “The world’s development process is at a crossroad. Given the unsustainability of current economic growth in both China and the world, a new approach to development is needed. The concept of green development is such an approach. Green development can become a potentially transformative process for the economy, for society, for the environment, and for the role of government. It is an opportunity: an open door.” In fact, green development is an opportunity for all countries, particularly developing countries. The commonality of sunshine and the multiplicity of technologies for harnessing sunshine can usher in a new era of international cooperation that creates a more diverse and reliable supply of affordable clean energy for the world and pave the way to a green future for all. The Liquid Sunshine roadmap lays out common man solutions and actionable pathways that are responsive to near-term imperatives of energy security and environment protection and still congruent with the long-term goal of building a sustainable green future for humankind.

1 Chapter 1 of “Supporting Report 3: Seizing the Opportunity of Green Development in China” – 2013 Report by the World Bank and Development Research Center of the State Council, People’s Republic of China 2

DRAFT Summary Report (July 31, 2017)

Overview of Key Ideas and Points Energy systems based on coal and oil have been around for more than a hundred years. These fuels are major sources of Greenhouse Gases (GHG) and pollutants such as NOX, SOX, volatile organic compounds (VOCs) and particulate matter (PM). With growing global population and rising energy consumption, the expanding use of coal and oil threatens humankind’s existence. Pollution and CO2 emissions not only result in planetary climate change in the next few decades, but also lead to major air, soil, and water pollution that particularly afflicts non-OECD countries. This environment degradation must be tackled in the very near term, or even immediately. Coal, oil and gas are non-replenishable fossil fuels and some would even argue that these are depleting resources. Without affordable and reliable supply of energy, not only will economies falter, but there is an even more serious global threat that socio-political unrests might result if current and future energy needs could not be met. Common Man Solution for Our Common Destiny

Since 2005, fossil fuel consumption by non-OECD countries has exceeded OECD countries. Non-OECD countries now comprise about 60% of the world’s total fossil fuel consumption, contributing to about 62% of the world’s fossil fuel-derived carbon dioxide emissions. With both population and energy consumption per capita rising in non-OECD countries, this trend will only accelerate, exacerbating the problems of pollution and depleting fossil fuels. These mounting problems can only be addressed by common man solutions that are affordable, reliable, scalable, as well as ecologically and environmentally sustainable. Will it be business as usual that takes humankind down the abyss of obliteration or will it be common man solution that harnesses plentiful sunshine creating a green future for all? Sunshine is the vast harnessable energy resource and an answer to a green future – one that is ecologically and environmentally sustainable. However, some challenges remain before sunshine can achieve this potential. For example, just as large water reservoirs are required to store captured rainwater to supply water on-demand, large “energy reservoirs” will also be required to store harvested sunshine to supply energy on-demand.

DRAFT Summary Report (July 31, 2017)

Taking on the energy-environment challenges of our time will require a comprehensive approach to energy systems addressing the efficiency, economics and environmental impact (3E) of energy harvesting, storage, distribution and utilization. Technology Pathways to Green Methanol the first target of Liquid Sunshine

* In the production of green methanol, CO2 and H2O are used to bind and carry energy from the Sun to the end user. Methanol is also a building block for higher energy density alcohols, such as ethanol, propanol and butanol. The Liquid Sunshine roadmap outlines actionable step-wise strategy to (1) deploy commercially viable low-emissions technologies to produce clean methanol from natural gas and renewable power from as soon as the early 2020s and (2) target the first deployment of scalable green technologies to produce green methanol from sunshine and wind energy by 2040. Green methanol can serve as the energy reservoir for green electricity, forming a synergistic dual energy system – green electricity and green liquids – that fulfils all of the energy needs for modern day applications. Clean methanol can be produced in various geographical regions. They can leverage existing global logistics infrastructure for storage, shipping and distribution. These solutions promote energy diversification, enhance global energy security and present attractive investment opportunities in clean energy. They also create the impetus for developing green technologies and pathways to green alcohol fuels, offering new avenues of growth for both OECD and non- OECD countries.

DRAFT Summary Report (July 31, 2017)

Role of Energy in Societal Innovation and Development

Inflection points and dawn of agrarian, industrial, advanced societies Over the millennia, there were inflection points in human development when societies were dramatically transformed as consequences of discovery of certain resources, mastery of new technologies, or both. Man’s ability to harvest and control water and energy resources have underpinned societal innovation and development – changing the course of humankind. Agrarian Society – Water reservoirs enabled man to gain control over rainfall With the development of rainwater management systems, humans evolved from communal groups living near rivers and lakes to large communities living in cities supported by reservoirs and aqueducts. These early water systems enabled the delivery of convenient on-demand water supply, paving the way for irrigated agriculture. However, the primary energy source of agrarian societies was low energy density biomass such as wood and agriculture waste, and this constrained the productive potential of agrarian societies. Industrial Society – Energy-dense fossil fuels started the machine age and mass production The discovery of energy-dense fossil fuels and efficient methods to extract, process and utilize them was the dawn of the industrial society. Coal mines, oil and gas wells could be thought of as “fossil energy reservoirs” – depot for fossilized sunshine – that was created in the Earth’s crust millions of years ago. Coal brought on the age of machines – steam engine, iron production, locomotive and electricity. Oil fuelled the transportation age – automobiles, aviation, heavy machinery and petrochemicals. These created a paradigm shift of economic productivity and scientific-technological progress. Today, we face the consequences of two centuries of exponential growth powered by fossil fuels – environmental degradation and climate change. Furthermore, at the current rate of usage, fossil fuels would likely be depleted in 50-100 years. Arguably, our fossil fuel-driven industrial society is running out of steam. Will this be a positive inflection point or a negative turning point? Advanced Society – Developing energy reservoirs stocked by energy-dense green liquid fuels Two insights can be drawn from our past and present. With “energy reservoirs”, man can turn sunshine into an energy resource that can be controlled and delivered on demand. High energy density fuels are vital to powering a myriad of modern day applications well into the future. Liquid Sunshine incorporates both insights. Energy-dense green alcohol fuels, mass-produced from plentiful sunshine, can be easily stored to form large energy reservoirs. By mid-century, these reservoirs can deliver energy that meets the needs of society. Until then, low-emissions technologies to produce clean methanol from natural gas and renewables are ready to go. These can be scaled up to supplement coal and oil, and fill the energy supply gap created by their dwindling supplies.

DRAFT Summary Report (July 31, 2017)

Energy-Related Existential Threats

Humankind’s use of fossil-based electricity and liquid fuels has resulted in three major global trends: (1) rapid growth of world population to almost 5 times since 1900, (2) energy consumption surging to over 13 billion tonnes of oil equivalent (toe) per annum, and (3) rising CO2 emissions from fossil fuel utilization to more than 33 gigatonnes per annum. Taken together, the above trends have destabilized planet Earth’s long-standing ecological balance. Today, humankind faces three existential threats: (1) planet-scale climate change, (2) environment degradation of cities and urban areas, and (3) eventual depletion of fossil fuels. The severity of environment degradation varies across countries. In general, Non-OECD countries are more dependent on coal (37% of total energy consumption) than OECD countries (18%). Consequently, the degree of environment degradation, as approximated by the average PM2.5 concentrations in the air, for non-OECD countries is 3 times that of OECD countries. Fossil fuel reserves have historically increased with greater technical challenge and extraction costs. However, against the backdrop of rising population and energy consumption, energy reserves per capita has actually been declining. This downward trend will very likely persist unless reliable and abundant substitute energy sources are found. 6

DRAFT Summary Report (July 31, 2017)

The Threats are Greater for Non-OECD Countries! Green Thinking for Common Man Solution

“Water, water everywhere, nor any drop to drink” To work towards a shared green future requires a mindset change, one that challenges accepted views, disjointed piecemeal thinking and actions often with negative long-lasting consequences, some unintended. Green thinking should start from the perspective of seeking a shared sustainable solution for all. It encompasses three key ideas: i. Plentiful and Inexhaustible: Every hour, the sun beams onto Earth more than enough energy to satisfy global energy needs for an entire year! If sunshine is to be humankind’s primary energy source, it must be converted into an energy-dense fuel using low-emissions processes. This would require complex energy systems that entail horizontal and vertical integration of various processes, e.g. harvesting, manufacturing, storing, shipping, distributing the sun’s energy worldwide. Would extensive new infrastructure be required to transport the new energy carrier to local and global markets? Could it use the idle capacity of existing storage and logistical infrastructure as the world’s supply of fossil fuels is being depleted. ii. Cycles are the key to sustainability: Green energy systems must be in harmony with natural cycles. To maintain an ecological equilibrium, waste or emissions created (from cradle to grave and well to wheels) should be recycled to nature in an efficient way and in non-toxic degradable form. On this point, CO2 is an essential part of nature’s energy-carbon- water cycle all life on Earth depends on. CO2 becomes a problem when the rate of emissions exceeds the rate at which it is absorbed back into the biosphere, water bodies and soil. iii. Universal: Climate change, environment destruction and depleting global resources transcend geographical and political boundaries. With non-OECD countries contributing more towards global energy consumption and CO2 emissions, broad-based implementation of any proposed solutions by these countries is essential to achieve global impact. Niche, and often costly, solutions will have little impact and some could even be the source of tomorrow's problems. Some of yesterday's solutions have become today’s problems. Will today’s solutions become tomorrow’s problems?

DRAFT Summary Report (July 31, 2017)

Energy System Inspired by Nature

Nature uses CO2 and H2O to “bind” and store the Sun’s energy in stable chemical forms, such as glucose, for subsequent utilization. Glucose is transported to the cells of plants and animals in aqueous solutions via liquid-based circulatory systems. The diagram below highlights the key features of an energy system inspired by nature:

Energy System: Harvest, Conversion & Storage, Distribution  Harvest: Energy from intermittent sunshine is captured by catchment devices. e.g. solar PV, wind turbines.

 Conversion & Storage: Through catalytic conversion processes, CO2 and H2O are used to bind and store energy from the Sun as stable chemical liquid fuels.  Distribution: Green liquid fuels are transported and distributed through existing global infrastructure built for fossil liquid fuels.

Energy System: Utilization and Recycling  Utilization: Green liquid fuels can be used in a wide range of applications including power and heat generation, transportation, and feedstock for chemicals and synthetic materials.

 Recycling: Upon utilization, the stored energy is consumed while CO2 and H2O are returned to the environment, thus completing the self-regulating processes that recycle Earth’s CO2 and H2O.

CO2 and H2O are in effect the energy transporters in nature-inspired green energy systems

DRAFT Summary Report (July 31, 2017)

Green Energy Reservoir Turning Sunshine Into Usable Resource

Water reservoirs: We need not search too far for a solution to harnessing sunshine on a global scale. Rainfall is a natural phenomenon that comes and goes intermittently. While man could not control rain, when and where it rains, he engineered water storage and distribution systems that store water on rainy days and resupply water on demand to many people at very affordable prices. Indeed, since early times, sophisticated systems for harnessing water – moving water from catchment areas to reservoirs for storage and subsequent distribution – laid the foundation for the development of cities and urban communities. This was one of the greatest achievement of early civilizations. Green energy reservoirs: Similarly, sunshine and wind are beyond the control of man. Solar PV and wind turbines are merely energy catchment devices and by themselves do not create a green energy system and solution. To harvest, store and distribute energy from sunshine and wind, it would be necessary to develop “energy reservoirs” that store captured energy in the form of green fuels. These green fuels can then be drawn and distributed on demand, all within the control of humans. If green fuels are to make a difference to the world, they must be  stable, distributable and traded globally as liquid energy commodities  efficient, economic, and environmental  deployed on a massive scale Green energy reservoirs to store vast reserves of mass-produced green fuels provide a practical common man solution that reaps the fruits of tapping sunshine and wind power.

Green energy reservoirs can provide man with reliable green fuels just as water reservoirs provide man with reliable water supply

DRAFT Summary Report (July 31, 2017)

What about the Size and Weight of Energy Reservoirs?

* Li-ion batteries have the highest energy density among batteries, at 250-500Wh/L. Vanadium redox flow batteries have one-tenth the energy density of Li-ion batteries. Using flow batteries would result in energy storage in excess of 200km high. Battery, Hydrogen & Alcohol Energy Reservoirs Reservoir size for 3 hours storage of global energy needs in 2050

Lithium-ion batteries: low energy density storage devices by weight and volume  Materials-intensive devices: Developing lithium-ion batteries as a reservoir system would consume about 86% of the world’s lithium reserves. Moreover, an additional 10- 15% of capacity must be added each year to offset battery degradation.  Hazardous battery disposal: Unless recycling of used batteries becomes economically viable, mountains of stockpiled hazardous battery waste will become a global problem. Compressed hydrogen storage: high energy density by weight, low energy density by volume.  Challenging to store at large scale: Because of low energy density by volume, costly and heavy storage tanks made from steel or carbon fiber reinforced composites would be required to store hydrogen.  Serious safety risks: Hydrogen at high pressure is prone to leakage and highly inflammable. Large-scale hydrogen energy reservoirs present serious safety risks. Alcohol fuels: liquid state at ambient pressure and temperature – high energy density by weight and volume; easy to store and transport. A good example of alcohol fuel is methanol.  Convenient and stable storage: Unlike batteries and hydrogen, alcohol fuels are stable, do not discharge or leak. Liquids can be stored in containers of variable shapes and sizes.  Versatile and transportable: Alcohols can be easily transported and distributed in liquid fuel form or converted to electricity and transmitted through the grid, using existing infrastructure. Consequently, they enjoy better downstream utility. There is a correlation among size, weight and cost. Some estimations indicate that the combined amortized and operational cost of storage is highest for batteries, followed by hydrogen, and lowest for liquid fuels.

Batteries and hydrogen are unsuitable for large-scale energy storage systems – alcohols offer the best prospects

DRAFT Summary Report (July 31, 2017)

Evaluating Energy Systems Requires Life Cycle Approach e.g. battery cars are “clean”, but what lies beneath?

Batteries and hydrogen have received much attention for their clean properties at the point of use (POU). Batteries in battery electric vehicles (BEV) generate pure power and some waste heat, while hydrogen emits only water. However, POU is only one part of the total life cycle of any energy system. Efficiency, Economics and Environment-impact (3E): As the saying goes, “To a man with a hammer, everything looks like a nail.” Instead of forcing a pre-determined solution on a complex problem, the right approach should be to find a holistic 3E solution to the problem. A full evaluation of energy solutions requires a life cycle approach also encompassing the following: I. Before POU: the processes before the fuel/energy is delivered to the application – resource extraction/mining, conversion/refining, transportation, storage and distribution. II. Production: production of components, assembly and delivery of finished product to user. III. Disposal: at the end of life, materials can be recovered, recycled or be discarded.

At all three stages, energy is consumed and emission are produced. The amount of CO2 and pollutants emitted depends on the processes and types of fuel used in the various stages. Certain processes such as mining for required component materials can lead to extensive damage to the immediate land and local environment. The above diagram shows that battery electric vehicles production can account for almost half of its lifetime CO2 emissions, primarily from battery production. Batteries, hydrogen are not low-emissions options for transportation Based on life cycle assessment, batteries and hydrogen powered vehicles fare no better than fossil fuel-based incumbent systems. On the issue of disposal: Would future generations carry the burden of seeking solutions to the problems of hazardous waste that we leave behind?

DRAFT Summary Report (July 31, 2017)

Liquid Sunshine: opportunities and pathways to green future

The Liquid Sunshine Methanol Roadmap outlines the progressive technology pathways and phases that optimize the use of natural resources and integrate increasing proportions of renewable resources for production of clean and eventually green methanol, the simplest alcohol. It is the first target of green liquid fuels and is also the building block for higher energy density liquid fuels such as ethanol, propanol and butanol. Phase I Fossil Methanol: Technologies for producing methanol from coal (1G-coal) and natural gas (2G-Gas) have been around for decades. These are carbon intensive high-emissions technologies. Phase II Clean Methanol: Phase II integrates renewable power into the production process, thereby resulting in lower carbon intensity and lower emissions. . 3G-Gas combines natural gas and renewable power and is ready for large-scale commercial deployment. 3G-Gas can be deployed in regions with rich natural gas and renewable energy resources. . 3G-Coal are hydrogen-enriched coal-based hybrid systems assisted by gas, nuclear or renewable power. Such systems are ready for pilot testing. . 4G-Biomass systems integrate biomass as a source of renewable carbon into hybrid systems. These systems require further development to become commercially viable. Phase III Green Methanol and the Green Future: 5G technologies uses renewable power and CO2 to synthesize green methanol, enabling massively scalable and sustainable production of methanol. Since CO2 is used in methanol production and the same CO2 is released when methanol is combusted, the whole cycle is carbon neutral. There is considerable ongoing scientific research and technology development in the areas of carbon capture, hydrogen generation and hydrogenation of CO2. First deployment of 5G-Green Methanol could be envisaged by 2040, or thereabouts.

DRAFT Summary Report (July 31, 2017)

Liquid Sunshine: energy carriers for green energy systems Liquids store power efficiently and can return power to the grid on demand

Electrification was the greatest engineering achievement of the 20th Century. With the flick of a finger, each one of us taps into vast sources of energy – deep veins of coal and great reservoirs of oil … – all transformed into electricity, the workhorse of the modern world (US National Academy of Engineering, 2003). Likewise, fossil liquid fuels power the world’s vast transportation system and provide feedstock for synthetic materials and chemicals. Today, more than 70% of the electricity generated and almost all liquid fuels come from non-replenishable reservoirs of fossilized sunshine formed millions of years ago. If the modern miracle of electricity and liquids is to continue and expand, they have to be produced from radiant sunshine. What are the options? The Liquid Sunshine strategy provides pathways to build replenishable green energy reservoirs to deliver green electricity and green liquids in the coming decades. When green electricity from solar farms is insufficient to meet the power demand, green energy reservoirs can be tapped to produce the additional power needed. Similarly, surplus green electricity from solar farms can be turned into green liquids. In effect, green liquids can also be regarded as “liquid electricity”. Above all, a dual energy system of green electricity and green liquids can fulfil all the energy needs of the modern world – electricity for lighting, office equipment, home appliances, computers, mobile gadgets and liquid fuels for personal vehicles, public transport, air travel, shipping, and feedstock for synthetic materials and a range of chemicals essential to modern life. Green electricity and green liquid fuels are the synergistic dual pillars of green energy systems

DRAFT Summary Report (July 31, 2017)

Non-OECD countries transitioning to green energy We have a window of opportunity to take appropriate actions to develop near-term and longer- term solutions. Deploying 3G-Gas today and 3G-Coal technologies for the production of clean methanol in the near term will abate carbon emissions and pollutants. These technologies offer humankind the breathing space it needs until we get to 5G technologies for the production of green methanol. In the paragraphs below, a timeline for China’s possible transition to a greener energy mix is discussed. Charting China’s journey to greener energy mix

China’s CO2 emissions are projected to peak by 2030 Changes in China’s energy mix in the coming decades are highlighted below: . Clean methanol begins commercial deployment by 2020, primarily with the strategy of deploying 3G-Gas in overseas locations and 3G-Coal locally . Coal consumption peaks around 2020 . Oil consumption increases only slightly peaking around 2030 . Carbon neutral energy sources are electricity used directly through the grid. Hydroelectric and nuclear capacity are assumed to have limited potential for capacity expansion. Direct use of intermittent solar and wind power, which are not integrated with storage system, is also limited. Hence, carbon neutral category could not exceed a certain fraction of the energy mix. . Increased integration of solar and wind power is reflected through the deployment of green methanol as green energy reservoirs. . Green methanol begins commercial deployment by 2040, enabling an increased usage of renewable power in the overall energy mix thereafter. Through diversification of the country’s energy mix, China not only increases its energy supply but also strengthens its energy security.

DRAFT Summary Report (July 31, 2017)

Delivering Common Man Solutions for Our Green Future Versatile Methanol: ‘Liquid Electricity’, ‘Liquid Hydrogen’

Methanol is a versatile fuel for a variety of downstream applications. Besides substituting oil as clean fuel oil for combustion systems and as feedstock for chemicals, methanol can also be regarded as convenient energy-dense “Liquid Electricity” and “Liquid Hydrogen”. Methanol can be used in fuel cells to generate electricity. On a volume basis, methanol also contains 40% more hydrogen than liquid hydrogen at -253oC. Hydrogen could be readily extracted from methanol using reformers and then used in hydrogen applications. The following are some direct applications of methanol: I. Feedstock for petrochemicals: Methanol is a feedstock to produce chemicals such as formaldehyde, acetic acid and MTBE and more recently, propylene and ethylene. II. Heat and steam generation: Methanol can be used in dedicated methanol boilers to generate heat and steam for industrial purposes, cost-effectively and with low pollution. III. Power generation: Methanol can also be used in turbines and fuel cells for power generation for both on-grid and off-grid applications.  Modified gas turbines for utility-scale power generation.  Microturbines for user-scale power generation and combined heat and power applications.  Fuel cells for power generation at on and off-grid locations. IV. Fuel for marine vessels: Methanol-diesel dual-fuel systems significantly reduce emissions. V. Fuel for ground transportation: Methanol can be used to power ground vehicles via two types of power trains:  Fuel cell electric vehicles (FCEV) have electric powertrains like BEVs. Fuel cells generate power while small batteries act as capacitors to supply additional power during acceleration and recover energy from deceleration. FCEVs have high efficiency and can be refuelled quickly and conveniently at pump stations.  ICE vehicles can also be either fuelled by methanol-blended fuel, or pure methanol in dedicated methanol ICE engines. The latter have significantly higher engine efficiency (30-40%) compared to conventional ICE engines (<20%). Methanol is often perceived as a toxic chemical. While methanol can be toxic upon ingestion, inhalation or through skin contact, it is actually less toxic than gasoline. For example, ingesting as little as 13 ml of gasoline is lethal, compared to 30-100 ml for methanol. More importantly, methanol, unlike gasoline, poses no known cumulative health hazard. Gasoline, on the other hand, is carcinogenic (cancer causing), mutagenic (alters genetic material), and teratogenic (affects fetus development).

DRAFT Summary Report (July 31, 2017)

Case Study: Methanol, A Compelling Value Proposition!

Comparison of Life Cycle Cost for Light Vehicles (RMB/km) Based on exchange rate of 6.8 CNY to the USD Efficient and Economical: Consider the example of light vehicles. The life cycle cost includes the cost of the vehicle (amortized over the lifetime distance travelled) and the fuel cost. The results shown above are based on the key assumptions used in a life cycle report by Argonne National Lab. The cars are standardized vehicles, except for Methanol Geely ICEV, which is produced by China’s Geely Automobile. Results for the Methanol Geely ICEV were computed from data provided by Geely. In comparison with gasoline ICE vehicles, methanol ICE vehicles may have a higher vehicle cost, but this is more than compensated for by the lower cost of fuel consumed. Geely has a methanol ICE vehicle in production. Based on their specifications and costs, the vehicle enjoys an even lower life cycle cost. The vehicle has a single engine but dual-fuel tank and injection system, one for gasoline and the other for methanol.

Minimal distribution infrastructure upgrade costs: Alternative vehicle systems such as battery and hydrogen will require huge investments in new infrastructure for energy distribution which can be very costly. By contrast, methanol is a liquid fuel which can be supplied by existing distribution infrastructure with minor modifications. Environment-friendly: Methanol is also more environment-friendly than gasoline ICE, battery and hydrogen vehicles. Compared to gasoline ICE vehicles, the life cycle emissions of CO2 and pollutants are around 40% and 80% lower for methanol ICE vehicles.

Methanol is ready to go Efficient, Economical, Environment-friendly

DRAFT Summary Report (July 31, 2017)

“Treat the Earth Well – it is Borrowed From Our Children and Our Children’s Children”

Energy is indispensable for all around the world. It is used in in every aspect of our lives. Without a sustainable supply of energy, life as we know it would come to a standstill. Access to affordable reliable energy supply is important for socio-economic development. It is one of the most effective ways to break the mutually reinforcing downward spiral of human poverty and environmental degradation. Some argue that Earth is close to a tipping point beyond which Earth’s ecosystems will be irreversibly damaged – rising temperatures and sea levels, destruction of natural food cycles, agriculture, and living environments – potentially threatening humankind’s survival. Humankind must tackle today’s problems today. What we do will affect not only the present generation but also future generations. Today's complacency could be tomorrow's catastrophe. Liquid Sunshine is NOT a zero-sum game Liquid Sunshine is abundant and available to all societies. It is not a zero-sum game – one person’s consumption does not deprive others from consuming from the same sun. Liquid Sunshine offers societies the opportunity to produce green fuels using technologies customized to utilize resources specific to their location in the most efficient way.

The commonality of limitless sunshine and the multiplicity of technologies for harnessing sunshine can usher in a new era of international cooperation that creates a more diverse and reliable supply of affordable clean energy for the world. In short, Liquid Sunshine is the plentiful clean fuel that can transform energy systems, the economy, the environment, and pave the way to a green future for all.