Air Liquide SA · EURONEXT:AI
Air Liquide SA — Investor Day (December 2009)
49 slides from Air Liquide SA's investor day presentation, Dec 7, 2009
Slide 1: Investor Day: CCS Clean Conversion
Investor Day Air Liquide, Energy & the Environment CCS Clean Conversion December 7, 2009 Air Liquide, world leader in gases for industry, health and the environment
Slide 2: Cleaner & Higher Yield Fuels
Cleaner & Higher Yield Fuels Christine George General Manager, Large Industries Belgium 42 40 Reference scenario 38 Gt of CO2* 36 34 32 CCS Clean conversion 30 28 Stabilization scenario (450ppm) 26 2007 2015 2020 2025 2030
Slide 3: Christine George
Christine George General Manager, Air Liquide Large Industries Belgium Christine George owns a B.S. in Chemical Engineering from the Ecole Supérieure de Chimie Industrielle of Lyon, France, and a Masters of Science in Chemistry from the University of Houston, Texas. She later acquired an MBA from th
Slide 4: Global Oil Product Demand & Concentration
Global Oil Product Demand & Concentration 120 2,5 . Average Growth Rate, %p.a. 100 Global Demand Forecast Total Demand, Mb/d 2,0 80 Global demand growth 1,5 60 driven by: 40 1,0 20 0,5 Asia and Middle East 0 0,0 2000 2005 2007 2008 2010 2015 2020 Asia Pacific Middle East North America Transportation
Slide 5: Global Crude & Refining Trends
Global Crude & Refining Trends Heavy Crude Supply Outlook Crude Quality % of heavy crude Light & sweet Light & sour Heavy & sour As global refined product demand recovers, supply will become heavier with a higher sulphur content over time Increased desire for operational flexibility 5 Air Liquide, w
Slide 6: Two main uses for hydrogen in a refinery
Two main uses for hydrogen in a refinery Capturing sulphur for legislative compliance S S S H2 S hydro S S gen S S SS S S S Tighter specifications lead to hydrogen need for desulphurization Splitting heavy and long hydrocarbons into higher value products hydrogen H2 Heavier crude leads to hydrogen n
Slide 7: From crude oil to clean fuels
From crude oil to clean fuels H2 Atmosphere Sulphur oxides are the main source of acid rain Additional H2 for Desulphurization Crude upgrading (SOx) Cleaner transportation fuels Gasoline Crude Oil and Diesel Heavier & higher sulphur crude supply Sulphur affects catalytic converters Refinery adversel
Slide 8: A unique position in H2 technology & supply
A unique position in H2 technology & supply LURGI has built, designed or engineered: More than 120 Gas Reforming Plants More than 30 Hydrogen Plants Sizes from 10,000 Nm3/h* of Hydrogen to 900,000 Nm3/h* of Syngas Process Gas Air Liquide has a wide experience Combustion Air in hydrogen purification
Slide 9: Air Liquide Worldwide Hydrogen Operations
Air Liquide Worldwide Hydrogen Operations H2: 545 km H2: 950 km H2 H2: 40 km Key Figures: AL’s assets for H2 supply: H2 Production Unit for OTF supply of H2 55 Hydrogen / CO Units H2 Purification Unit – OTF Supply of H2 23 H2 Purification Units H2/CO Production Unit (SMR / POX) OTF: Over the Fence s
Slide 10: Northern Europe Hydrogen Pipeline
Northern Europe Hydrogen Pipeline Northern Europe network: More than 35 years of 2,800 km continuous development … … with new large scale H2 unit under construction in Rotterdam World’s Longest Hydrogen Pipeline Network: 950 km 10 Air Liquide, world leader in gases for industry, health and the envir
Slide 11: Summary: a bright future ahead
Summary: a bright future ahead… Structural trends support huge hydrogen opportunities Global oil demand growth – driven by emerging economies Tighter environmental regulation globally Heavier and sourer crude Increased desire for operational refining flexibility Air Liquide is uniquely positioned: G
Slide 12: Potential
Potential For Air Liquide REMINDER H2 25% new Air Liquide capacity Total H2 capacity: to come on stream in 2011 > 1.3 M Nm3/h 12% of Gas & Services sales today H2 sales: €1.2bn Market H2 for refineries: + 6-7% H2 market growth pa mainly in Asia and Middle East 12 Air Liquide, world leader in gases f
Slide 13: Oxy-combustion
Oxy-combustion Christophe Chalier Vice-President, Global Energy Market, Large Industries WBL 42 40 Reference scenario 38 Gt of CO2* 36 34 32 CCS Clean conversion 30 28 Stabilization scenario (450ppm) 26 2007 2015 2020 2025 2030
Slide 14: Christophe Chalier
Christophe Chalier Vice–President Global Energy Market Air Liquide Christophe Chalier holds an MSc (Ecole des Mines d’Alès – France) and an MBA from Metz’s IAE (Institut d’Administration des Entreprises). He began his career in the Engineering department of the French coal company (Charbonnages de F
Slide 15: Technologies for Clean Power Production
Technologies for Clean Power Production 1 Post-combustion 2 Oxy-combustion CO2 capture units 3 Pre-combustion/IGCC Post combustion Air Boiler capture Example: Amines 1 Fossil Fossil Cryogenic Compression fuels 2 Oxy-boiler Purification or liquefaction fuels (e.g. Coal) (CPU) O2 Transport 3 Partial O
Slide 16: Current clean coal electricity production cost
Current clean coal electricity production cost Electricity cost per type of combustion for power 120 Post-combustion Pre-combustion 1 100 3 2 80 US$/Mwh 60 40 20 0 Typical air boiler Oxy-combustion Gasification With CCS Without CCS Source: DOE Report 2007 FEPP; B&W/AL Studies 16 Air Liquide, world l
Slide 17: What is Oxy-Combustion?
What is Oxy-Combustion? Traditional combustion Oxy-combustion Air CO2 O2 CO2 + Carbon energy Carbon CO 2 + based fuel + O2 based fuel energy N2 N2 Combustion gases Combustion gases 100 100 H H22O O H2O H2O O2 75 CO22 75 % by volume % by volume N2 N2 CO2 CO2 50 50 25 25 O2 0 0 In Out In Out 17 Air Li
Slide 18: Air Liquide Expertise in Oxy-combustion
Air Liquide Expertise in Oxy-combustion: from solution design and pilot testing to industrial validation R&D furnace Modelization Flame measurement Supporting technologies Different types of burners Combustion technologies * From Metals… …to Glass Industry …and Power Generation Since the 70’s throug
Slide 19: Oxy-Combustion for CCS on coal fired boilers
Oxy-Combustion for CCS on coal fired boilers CO2 recycle Ash Sulphur Water, inert gases CO2 cryogenic CO2 transport CO2 ESP* FGD* purification & storage unit Boiler Coal power generator steam turbine steam O2 Mixer water (H2O) ASU Bricks required for CCS compared ~20 TPD O2/MWe net AIR to reference
Slide 20: Air Separation Unit optimized for Oxycombustion
Air Separation Unit optimized for Oxycombustion From today’s most efficient ASUs … to a new specific design for oxy-combustion ISAB IGCC (2x 1800 tpd O2) Operation since 1999 & the world’s largest ASUs (additional power reduction through cycle integration) Sasol Train 15 (4200 tpd O2 – Sea level) Op
Slide 21: CO2 purification development roadmap to commercial scale
Our CO2 purification development roadmap to commercial scale 2009 2011 2015 30 MWth 100 MWth 3000 tpd CPU* Design for 300 MWth Demonstration Plant Lacq Callide * CPU: CO2 purification unit 21 Air Liquide, world leader in gases for industry, health and the environment Investor Day – Paris, December 7
Slide 22: Air Liquide contribution to Lacq Project (France)
Air Liquide contribution to Lacq Project (France) Retrofit of an existing steam boiler 32 MWth to Oxy-combustion CO2 will be geologically stored in depleted natural gas field Start-up: Q1 2009 AL Oxy-combustion burners with CO2 purification unit (adsorption) O2 Over the Fence Supply 22 Air Liquide,
Slide 23: Air Liquide contribution to Callide project (Australia)
Air Liquide contribution to Callide project (Australia) Project: Retrofit by CS Energy of a 100 MWth coal boiler to oxy-combustion with CO2 partial capture and geologically stored - Start-Up: 2011 Air Liquide’ Scope: CO2 Purification Unit (75 tpd) and Oxygen supply (660 tpd) Boiler (30 MWe gross) O2
Slide 24: Conclusion
Conclusion Product development pathway Today Tomorrow Fundamental Pilot Demonstration Commercial Development Phase Phase Deployment Air Liquide has built on its historical expertise to develop Oxy-combustion for power We are participating in several projects to demonstrate the technology on a large
Slide 25: Potential
Potential For Air Liquide REMINDER O2 O2 O 2 E&C Total O2 capacity: 140,000 tpd E&C sales: ~€1bn Market If 10% of US coal power plant capacity (ie 34,000 MWe*) was converted to oxy-combustion, it would require: O2 production of 680,000 tpd CPU units totaling capture capacity of 700,000 tpd CO2 Horiz
Slide 26: Gasification in the context of clean conversion
Gasification in the context of “clean conversion“ Thomas Wurzel Vice-President Product Management, E&C Lurgi 42 40 Reference scenario 38 Gt of CO2* 36 34 32 CCS Clean conversion 30 28 Stabilization scenario (450ppm) 26 2007 2015 2020 2025 2030
Slide 27: Dr. Thomas Wurzel
Dr. Thomas Wurzel Vice-President Product Management Lurgi GmbH Dr. Thomas Wurzel owns a PhD in Technical Chemistry from the Ruhr- University of Bochum, which he was awarded magna cum laude for his work on syngas generation. He has authored or co-authored numerous publications and presentations and i
Slide 28: Agenda
Agenda Clean Conversion Examples for Gasification Air Liquide unique position Markets and Trends Conclusion 28 Air Liquide, world leader in gases for industry, health and the environment Investor Day – Paris, December 7, 2009
Slide 29: What is Clean Conversion?
What is Clean Conversion ? Feedstocks Air Liquide technologies Customer output solid, liquid Heavy Oil Clean conversion Syngas processing technologies applications Bitumen SMR Fischer Tropsch ATR Methanol Syngas Coal Gas Chemicals Gas cleaning Methanation Fuels Pyrolysis Hydrogen: Power Oil Sands -
Slide 30: What is gasification?
What is gasification? Oxygen Water Carbon Carbon dioxide Syngas O2 + H2O + C = CO2 + CO+H2 Fuel Gasification Products coal steam O2 CO2 Removal Chemicals & Synthesis Fuels Gas conditioning Power ASU CO2 transport & storage ~ 1 T O2/ T Coal AIR Sulphur Source: AL Estimates 30 Air Liquide, world leade
Slide 31: Example 1: Substitute Natural Gas (SNG)
Example 1: Substitute Natural Gas (SNG) The only large scale reference for SNG CO2 used for Enhanced Oil Recovery Lurgi provided engineering and procurement services Lurgi’s scope of technologies: North Dakota, USA Gasification Gas shift Gas cleaning “Rectisol” CO2 removal Methanation 31 Air Liquide
Slide 32: Example 2: Synthetic Fuels Plant
Example 2: Synthetic Fuels Plant 160,000 barrels per day of synthetic fuels (approx. 8 million tons/year) 20 million hours of operation 1 billion tons coal gasified More than 39,000 tpd of oxygen Lurgi provided engineering and procurement services Lurgi scope of technologies: Sasol Secunda, South Af
Slide 33: Differentiating factors in Air Liquide
Differentiating factors in Air Liquide Consistently constructed process chains will give leverage to Air Liquide ASU expertise High R&D spending Clean Conversion Technology building bricks O2 N2 H2 CO Client Site Lurgi Technologies & Process Optimization Enlarged scope and leverage 33 Air Liquide, w
Slide 34: Air Liquide: A Unique Process Chain
Air Liquide: A Unique Process Chain Competitors Industrial Licensors Licensors Process AL E&C gases Chinese without N°of EPC* with operations operations 1 2 3 1 2 3 ASU -- -- -- - Gasification 3 1 2 Gas Cleaning 1 -- -- Gas Separation -- -- -- Synthesis 4 2 1 *EPC: Engineering Procurement and Constr
Slide 35: Market drivers for clean conversion
Market drivers for clean conversion Chemicals (CTC): Mainly China, The marketplace for gasification today. Growing demand of base petrochemical products due to increasing living standard Shift of production sites to consumer markets Leverage on large local coal reserves Fuels (CTL): In USA, China, I
Slide 36: Summary
Summary Gasification (focus: coal) is of strategic value to increase independence from crude oil by leveraging large coal resources Air Liquide provides capacity to offer expertise across the complete process chain from feed-stock to final product Significant differentiating factor in industrial gas
Slide 37: Potential
Potential For Air Liquide REMINDER O2 H2 Total O2 capacity: 140,000 tpd CO E&C E&C sales: ~€1bn Market Clean Conversion projects under discussion: China: Chemicals - more than 100 projects US: Clean energy - more than 50 projects (IGCC* and SNG) ROW: Clean energy - more than 20 projects (mainly IGCC
Slide 38: Carbon Capture And Storage
Carbon Capture And Storage Christophe Chalier Vice-President, Global Energy Market, Large Industries WBL 42 40 Reference scenario 38 Gt of CO2* 36 34 32 CCS 30 28 Stabilization scenario (450ppm) 26 2007 2015 2020 2025 2030
Slide 39: Christophe Chalier
Christophe Chalier Vice–President Global Energy Market Air Liquide Christophe Chalier holds an MSc (Ecole des Mines d’Alès – France) and an MBA from Metz’s IAE (Institut d’Administration des Entreprises). He began his career in the Engineering department of the French coal company (Charbonnages de F
Slide 40: Why do we need CCS?
Why do we need CCS ? Energy - Related CO2 emissions 42 40 Reference scenario 38 Efficiency Gt of CO2* 36 34 32 Renewables + Biofuels 30 28 Nuclear Stabilization scenario (450ppm) CCS clean conversion 26 2007 2015 2020 2025 2030 CCS as a required mitigation tool Source: IEA WEO 2008, IPCC 2005 * 1Gt
Slide 41: What is CCS?
What is CCS ? Capture Depleted Saline Oil & Gas Aquifers fields Source: Alberta geological survey 41 Air Liquide, world leader in gases for industry, health and the environment Investor Day – Paris, December 7, 2009
Slide 42: Air Liquide CO2 Capture Technologies
Air Liquide CO2 Capture Technologies Commercial Technologies CO2 Purity Amines / Rectisol / Purisol Cryogenics MEDALTM Membranes Demonstration (V)PSA Adsorption units (VPSA) 1% 20% 40% 60% 80% 100% Feed CO2 content 42 Air Liquide, world leader in gases for industry, health and the environment Invest
Slide 43: CO2 Capture from Air Liquide H2 units
CO2 Capture from Air Liquide H2 units CO2 removal Options: CO2 ACO2 from process gas removal B H2 • Up to 60% Steam Wet Syngas 1 Wet Syngas 2 of the total CO2 emission SMR SMR Shift Shift PSA PSA Natural gas Dry Off-gas BCO2 from flue gas CO2 A • Up to ~90% Air of the total CO2 emission Puertollano,
Slide 44: CO2 Capture from Blast Furnaces
CO2 Capture from Blast Furnaces ULCOS Project: European program pooling together the efforts & talents of 48 partners (Steel & its supply chain). Experimental blast furnace with in-process CO2 capture Air Liquide Scope: CO2 removal unit (PSA) and oxygen supply - Pilot plant started-up in 2006 - Swed
Slide 45: Air Liquide capabilities beyond capture
Air Liquide capabilities beyond capture More than 50 years of experience in the purification, liquefaction and transportation of CO2 67 CO2 production plants in operation Supplying CO2 today for the oil industry (EOR - Enhanced Oil Recovery) Participation in several capture/storage projects Lacq (Fr
Slide 46: Air Liquide well positioned for CCS
Air Liquide well positioned for CCS Air Liquide has a broad range of technologies for CO2 capture More than 50 years in the CO2 business, for production and transportation Currently participating to several CCS demonstration projects Air Liquide well positioned to play an active role when large scal
Slide 47: Economic gap
CCS cost to meet carbon price €/tonne CO2 90 80 Es Demonstration tim phase ate 70 d Commercial Economic gap co st phase 60 fo rC CS 50 40 Carbon price forecast impact of new policy not included 30 20 10 0 Demo phase Early commercial phase Mature commercial phase Source: McKinsey 47 Air Liquide, worl
Slide 48: Potential
Potential For Air Liquide REMINDER O2 E&C Total O2 capacity: 140,000 tpd E&C sales: ~€1bn Market Commercial CCS is dependent upon regulation and appropriate financial mechanism It is bound to happen CCS will boost: O2 consumption through gasification and oxy-combustion processes Technology bricks ma
Slide 49: Investor Day: CCS Clean Conversion
Investor Day Air Liquide, Energy & the Environment CCS Clean Conversion December 7, 2009 Air Liquide, world leader in gases for industry, health and the environment