Johnson Matthey PLC · LSE:JMAT
Johnson Matthey — Investor Day (January 2009)
125 slides from Johnson Matthey's investor day presentation, Jan 29, 2009
Slide 1: Presentation to Analysts / Investors
Presentation to Analysts / Investors Johnson Matthey Technology Centre, Sonning Common 28th / 29th January 2009
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in which Johnson Matthey operates. It is believed that t
Slide 3: Overview and Trading Update
Overview and Trading Update Neil Carson Chief Executive
Slide 4: JM Executive Board
JM Executive Board • Neil Carson - Chief Executive • John Sheldrick - Group Finance Director • Larry Pentz - Executive Director, Emission Control Technologies • Dr Pelham Hawker - Executive Director, Process Technologies and Fine Chemicals & Catalysts • David Morgan - Executive Director, Corporate D
Slide 5: Other Senior Management
Other Senior Management • Bill Sandford - Division Director, Precious Metal Products • Neil Whitley - Division Director, Process Technologies • Dr David Prest - Technology & Business Development Director, ECT • Jeremy Coombes - Fuel Cell Today • Dr Jack Frost - Director, Johnson Matthey Fuel Cells •
Slide 6: Strategic Opportunities for Environmental Technologies
Strategic Opportunities for Environmental Technologies • Existing regulations for transport and stationary source engines will continue to tighten globally • Substantial market expansion in heavy duty diesel (HDD) expected over the next six years • Increasing regulation for NOx control in other mark
Slide 7: Programme
Programme 09.40 Overview and Interim Management Statement (Neil Carson) Opportunities in NOx Emission Control 09.50 Argillon Acquisition Overview (Larry Pentz) 10.00 Heavy Duty Diesel Emission Control (David Prest) 10.30 Future Opportunities in Stationary Emission Control (SEC) (Larry Pentz) 11.00 C
Slide 8: Interim Management Statement
Interim Management Statement • Summary Results for third quarter of 2008/09 • Sales excluding precious metals slightly ahead • Operating profit* 4% below last year • Profit before tax* 7% below last year • Cash flow positive * Before amortisation of acquired intangibles 8
Slide 9: Estimated Light Vehicle Sales and Production
Estimated Light Vehicle Sales and Production for the 3 months to 31st December 2008 Quarter ended 31st December 2008 2007 Change millions millions % Sales 3.1 4.5 -31.1 North America Production 2.7 3.6 -25.0 Sales 4.2 5.5 -23.6 Total Europe Production 4.2 5.7 -26.3 Sales 4.3 4.8 -10.4 Asia Productio
Slide 10: Interim Management Statement
Interim Management Statement • Environmental Technologies • Sales (ex pms) 6% below last year, 13% down on constant currency basis • Emission Control Technologies’ sales well down. Global car production fell by 19% in third quarter compared with last year. Further action taken to reduce costs • OEMs
Slide 11: Interim Management Statement
Interim Management Statement • Precious Metal Products • External revenue and profits up. Good demand for fabricated products and gold refining. Volatility offset some of the impact of lower pgm prices • Fine Chemicals & Catalysts • Also up. Good sales of research chemicals and active pharmaceutical
Slide 12: Outlook for Fourth Quarter of 2008/09
Outlook for Fourth Quarter of 2008/09 • Last year Precious Metal Products’ fourth quarter was very strong as a result of record pgm prices. This year will be lower • Environmental Technologies will also be lower with global car production projected to be 25% down • On that basis our range for full y
Slide 13: Opportunities in NOx Emission Control
Opportunities in NOx Emission Control
Slide 14: Agenda
Agenda 1 Argillon Acquisition Overview 2 Heavy Duty Diesel Emission Control 3 Future Opportunities in Stationary Emission Control (SEC) 14
Slide 15: Argillon Acquisition Overview
Argillon Acquisition Overview Larry Pentz Executive Director
Slide 16: Key Facts
Key Facts On 10th December 2007 announced purchase of Argillon from a KKR subsidiary for €214m Completed on 7th February 2008 Headquarters and principal site at Redwitz, Germany. Sales offices in the US and Asia Products – catalyst technology for the control of oxides of nitrogen (NOx). Engineered c
Slide 17: Business Portfolio
Business Portfolio (Continuing Businesses) Catalysts Power Plants Stationary HDD Selective Catalytic Reduction (“SCR”) of Nitrogen Oxide (NOx) Catalysts for power Engineering and Used in diesel trucks: plants, industrial supply of catalytic • Heavy duty vehicles applications and systems for: waste i
Slide 18: Strategic Rationale
Strategic Rationale HDD Power Plant • New emission control market • Adds sales in Europe • Significant growth opportunity in • Broader product / technology China portfolio • Tightening regulations in US and • Combined extruded / coated EU technology development • Introduction of other JM • Product o
Slide 19: Current Status
Current Status • Sales €59 million, operating profit €10 million in first half of 2008/09 for the continuing businesses • Completed sale of Insulators and Alumina business to Lapp Inc. on 26th November 2008 for €21 million in cash plus €2 million vendor loan note • Argillon fully integrated into ECT
Slide 20: Heavy Duty Diesel Emission Control
Heavy Duty Diesel Emission Control David Prest Technology & Business Development Director
Slide 21: Agenda
Agenda 1 Current Market Update 2 Developing Markets 3 Selective Catalytic Reduction (SCR) 4 Extruded and Coated SCR 5 Key Points 21
Slide 22: Emission Control Technologies: HDD Legislation Timeline
Emission Control Technologies HDD Legislation Timeline 22
Slide 23: Market Update
Market Update Current markets (HDD on road vehicles >6 tgvw) Estimated in Q1 2008 (Thousands of units) Estimated in Q4 2008 (Thousands of units) 1400 1400 1200 1200 1000 1000 800 800 600 600 400 400 200 200 0 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 Western Europe, >15
Slide 24: Evolution of Typical HDD Aftertreatment Systems
Evolution of Typical HDD Aftertreatment Systems 2003 2004 2005 2006 2007 2008 2009 2010…... SCR SCRT® DOC CRT®/CCRT® 24
Slide 25: Number of Catalyst Bricks
Number of Catalyst Bricks (‘000s) 8000 7000 6000 5000 4000 3000 2000 1000 0 2007 2008 2009 2010 2011 2012 2013 Source: Johnson Matthey estimates Estimated catalysts fitted to HDD vehicles >6 tgvw in current markets: Western and Eastern Europe, North America, Japan and Korea Includes Diesel Oxidation
Slide 26: Developing Markets
Developing Markets New territories, on road market Non-road market 26
Slide 27: HDD Legislation in New On Road Markets
HDD Legislation in New On Road Markets Territory & Application Legislation Timing Russia (on road) Euro IV 2010 China (on road) Euro IV New models: 2010. All sales: 2011 India (on road) Euro IV Major cities: 2010. Whole country: 2014 Brazil (on road) Euro V 2012 • New territories are generally adopt
Slide 28: Fuel Quality – Sulphur Content
Fuel Quality – Sulphur Content Key Enabler for Catalytic Aftertreatment 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 USA EU Japan South Korea Russia China (all) (Beijing) Hong Kong India (all) (Major cities) Brazil (all) (Major cities) >500 ppm S <500 ppm S <350 ppm S <50 ppm S <30 ppm S <15 pp
Slide 29: OEMs in On Road Developing Markets
OEMs in On Road Developing Markets Typical Annual Sales (‘000 units) China Brazil • DongFeng 180 • MAN 45 • FAW 170 • Daimler 35 • CNHTC 110 • Ford 20 • Shaanxi 75 • Volvo 10 • Beiqi Futian 65 • Iveco 5 India Russia • TELCO 150 • KamAZ 55 • Ashok Leyland 50 • GAZ 25 • Eicher 20 • UralAZ 15 Estimated
Slide 30: Developing Markets: Non-Road
Developing Markets: Non-Road Scrapers Telehandlers Backhoes Inland and Inshore Marine Excavators 30
Slide 31: HDD Legislation in Non-Road Markets
HDD Legislation in Non-Road Markets Territory & Application Legislation Timing North America Europe Non-road (130 – 560 kW) Tier 4a Stage IIIb 2011 Tier 4b Stage IV 2014 Non-road (56 – 130 kW) Tier 4a Stage IIIb 2012 Tier 4b Stage IV 2015 Non-road (37 – 56 kW) Stage IIIb 2013 (19 – 56 kW) Tier 4a 20
Slide 32: Aftertreatment Systems for Non-Road
Aftertreatment Systems for Non-Road Non-road may use • DOC only Very versatile • DOC plus coated filter duty cycles • SCR Depending on engine manufacturer, engine size and application 32
Slide 33: OEMs in Non-Road Regulated Markets
OEMs in Non-Road Regulated Markets Typical annual Typical annual production (‘000) production (‘000) Kubota 300 Komatsu 80 Yanmar 200 Cummins 70 Caterpillar / Perkins 200 Mitsubishi 70 John Deere 160 JCB 40 Case New Holland 150 SISU 40 Deutz 150 Volvo (CE & Penta) 25 Isuzu 90 • Estimated total catal
Slide 34: Impact of Developing Markets
Impact of Developing Markets 5,000 4,500 Non-road, <56 kW 4,000 Legislated engines, '000 Non-road, 56-130 kW 3,500 Non-road, 130-560 kW Brazil 3,000 India China 2,500 Russia 2,000 Japan & Korea Eastern Europe 1,500 Western Europe North America 1,000 On road vehicles >6 tgvw 500 plus regulated non-ro
Slide 35: Market Values
Market Values Estimated market value, 2014 $ billion Developed markets 1.6 Developing markets 0.4 Non-road 0.5 Total 2.5 Catalyst values: sales excluding precious metals 35
Slide 36: Selective Catalytic Reduction
Selective Catalytic Reduction NO + NO2 + 2NH3 2N2 + 3H2O Copyright Johnson Matthey Plc 2009 36
Slide 37: Features of SCR Aftertreatment
Features of SCR Aftertreatment Coated Substrate • SCR has the potential for improved fuel economy (typically ca. 5%) compared with alternatives • SCR more tolerant to high S fuel than filters Extruded • SCR requires urea e.g. AdBlue® • SCR is mature, proven technology 37
Slide 38: Complementary Features and Benefits of Extruded and Coated SCR
Complementary Features and Benefits of Extruded and Coated SCR… Both perform the same NOx reduction Extruded Coated • Improved low temperature activity • Higher maximum operating • Higher ammonia storage temperature • Superior resistance to coking • Can be used with metallic substrates • Able to mee
Slide 39: Key Points
Key Points The current on road market will grow with the introduction of new technologies, starting 2010 There are significant new market sector opportunities in new on road territories and non-road, starting 2010 SCR is a key technology for HDD NOx control, both on road and non-road Extruded and co
Slide 40: Future Opportunities in Stationary Emission Control (SEC)
Future Opportunities in Stationary Emission Control (SEC) Larry Pentz Executive Director
Slide 41: Technologies and Markets
Technologies and Markets JM Oxidation Catalyst Argillon Three Way Catalyst NOx Emission Diesel Particulate Control Reduction Dioxin Decomposition Catalyst Mercury Control (SCR) Systems SCR (Plate type) Catalyst SCR (Coated) Catalyst SCR (Extruded) Catalyst (Moderate Temp / Low Dust Exhaust) (High Te
Slide 42: Products
Products Plate SCR Catalyst Coated Catalyst Extruded SCR Catalyst 42
Slide 43: Products – Engine Emissions Control System
Products – Engine Emissions Control System Oxidation SCR Catalyst Catalyst 43
Slide 44: Installations
[UM{a Johnson Matthey Installations 44
Slide 45: Markets
Markets Current Markets Future Markets Power Marine Generation Industrial Locomotives Processes Coal Power Small Utility Plants Engines 45
Slide 46: Power Generation SCR Systems Market
Power Generation SCR Systems Market • Market Drivers: • Engines (all fuels) – increased requirement for NOx control • Diesel Generators – increased requirement for PM and NOx controls • Gas Turbines – demand to rise until new coal plants are installed • Current market size ~$200 million, JM share 9%
Slide 47: Industrial Process Emissions Control Market
Industrial Process Emissions Control Market • Industrial Process Applications: • Waste to Energy • Cement kilns • Nitric acid manufacture • Steam methane reforming plants • Glass manufacture • Current market size ~$30 million with potential to grow to around ~$80 million by 2012, JM share 15% • Comp
Slide 48: Coal Power Plant SCR Catalyst Market
Coal Power Plant SCR Catalyst Market 400 350 300 Millions of $s 250 200 150 100 50 0 2008 2009 2010 2011 2012 USA Europe China Taiwan / South Korea Japan ROW Source: Boston Consulting Group 48
Slide 49: China Coal Power Plant SCR Catalyst Market
China Coal Power Plant SCR Catalyst Market • Market Drivers: • China is the world’s largest producer and consumer of coal • Coal power plants produce 75% of China’s power • The installed coal power plant capacity is ~535 GW • ~100 GW of new power to be installed by 2015 • ~100 GW of replacement powe
Slide 50: China Coal Power Plant SCR Catalyst Market
China Coal Power Plant SCR Catalyst Market Comments Market Development by Phases m$ • New power station, catalyst Phase 1 Phase 2 Phase 3 New Builds Retrofits Reloads contracts by boiler manufacturers 90 and EPC companies 75 • Retrofits of existing power stations, catalyst contracts mainly by EPC 60
Slide 51: China Coal Power Plant SCR Catalyst Market
China Coal Power Plant SCR Catalyst Market • Supply Drivers: • Installed global capacity for catalyst production can not meet growing Chinese demand • Chinese utility companies are interested in locally supplied catalysts • Plate type catalysts are especially suitable for China’s high ash content co
Slide 52: Marine SCR Systems Market
Marine SCR Systems Market • Current Market Drivers: • Norway NOx Tax and Sweden Fairway Dues • Commercial cargo customers demanding “Green” ships • Future Market Drivers: • IMO (International Maritime Organization) designated ECAs (emission control areas) to be established in 2009: • US / Canada, Ja
Slide 53: Marine SCR Systems Market
Marine SCR Systems Market 400 350 300 Millions of $s 250 200 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Maritime equipment supplier 53
Slide 54: Locomotive SCR and PM Systems Market
Locomotive SCR and PM Systems Market • Market Driver – US EPA New Source Performance Standards: • NOx and PM controls • New Tier 4 (MY 2015) locomotive engines • Estimated US Market Size (2015): • Line Haul engines - $240m/year • Switcher engines - $34m/year • Major Locomotive Engine Companies – GE,
Slide 55: Small Utility Engine Catalyst Market
Small Utility Engine Catalyst Market • Market Driver: • CARB Tier 3 (2008) and US EPA Phase 3 (2011 MY) non-handheld lawn and garden equipment, portable electrical generators and gasoline marine inboard and outboard water craft • Estimated US Market Size: • $100m/year in 2011 • Competitors – BASF, H
Slide 56: Catalyst Manufacturing at Redwitz
Catalyst Manufacturing at Redwitz 56
Slide 57: Conclusions
Conclusions NOx control is an established and growing global market Beyond on road and non-road HDD, new market opportunities exist in SEC: China coal fired power plant | Locomotives | Marine | Small utility engines Currently the total SEC market is worth around $500 million (sales excluding pms). B
Slide 58: Fuel Cell Today
Fuel Cell Today www.fuelcelltoday.com Jeremy Coombes 58
Slide 59: Fuel Cell Today – an Independent Resource
Fuel Cell Today – an Independent Resource FCT Consulting Website Fuel Cell Today Annual Review Three main types of analysis www.fuelcelltoday.com : undertaken: 1. 15+ free reports - analysis on 1. Can we use a fuel cell to developments in the industry power product ‘X’? over the past year 2. We want
Slide 60: Today
Today Informing the fuel cell industry With hybrid technology fae! cells are not needed .
Slide 61: The Reality (2009)
The Reality (2009) •2008 shipments of fuel cells increased to 18,000 with a growth rate of 50% from 2007 •A conservative estimate of current manufacturing capacity is 180 MW (up from around 100 MW in 2007) •In 2008 a number of new products became commercially available •Globally, new policy and legi
Slide 62: Fuel Cell Types and Characteristics
Fuel Cell Types and Characteristics Operating Power Catalyst Target temp. 0C (typical) applications AFC 60 - 90 up to 20 kW PGM niche transport, small stationary PEMFC 80 up to 250 kW PGM transport, residential, UPS DMFC 60 - 130 <1 kW PGM portable, APU, personal electronics PAFC 200 >250 kW PGM pow
Slide 63: Fuel Cell Today is:
Fuel Cell Today is: Dr Kerry-Ann Adamson, Principal Analyst, kerry-annadamson@fuelcelltoday.com Lisa Callaghan Jerram, Senior Analyst (North America), lisacallaghanjerram@fuelcelltoday.com Dr Jonathan Butler, Analyst (Asia), jonathanbutler@fuelcelltoday.com Dr Ben Todd, Consultant, bentodd@fuelcellt
Slide 64: Johnson Matthey Fuel Cells - Update
Johnson Matthey Fuel Cells - Update Jack Frost Director, Johnson Matthey Fuel Cells
Slide 65: Outline
Outline 1 Johnson Matthey Fuel Cells’ product positioning 2 The markets JMFC operates in 3 The progress the business is making 65
Slide 66: The Fuel Cell and Membrane Electrode Assembly (MEA)
The Fuel Cell and Membrane Electrode Assembly (MEA) 66
Slide 67: The Components of a PEM Fuel Cell
The Components of a Polymer Electrolyte Membrane (PEM) Fuel Cell 67
Slide 68: Johnson Matthey Fuel Cells' Products
Johnson Matthey Fuel Cells’ Products 68
Slide 69: Product Positioning
Product Positioning Fuel Cell Stacks Catalysts Application Engineers Government Catalyst coatings Actions Ionomers Integrated Cars Membrane MEAs Buses Distribution Substrates Materials handling Channels Seals, gaskets Consumer electronics Backup power Power plants 69
Slide 70: Johnson Matthey Fuel Cells' Markets
Johnson Matthey Fuel Cells’ Markets DMFC H2 UPS Time PEM Mobile Laptops phones and Cars Mobile phones Laptops Chargers Buses Buses hybrids Current applications are Portable commercial now, replacing inadequate conventional FLTs technology Commercial Commercial CHP PAFC They are on technology pathway
Slide 71: Markets – Direct Methanol (DMFC)
Markets – Direct Methanol (DMFC) • Readily available fuel, especially at small scale enabling commercial portable devices now • Leisure • Recreational vehicles, leisure craft, remote cabins • Dissatisfaction with batteries and intermittent solar and wind alternatives • Noise and pollution of IC gene
Slide 72: Markets - Direct Methanol (DMFC)
Markets - Direct Methanol (DMFC) • Stand alone chargers offering mains autonomy. These are near to commercial launch • Possible future products have significant potential • Integrated ‘media bay’ units - hybrid operation to continuously recharge existing battery at low power • Battery replacement fu
Slide 73: Markets – Hydrocarbon Fuels
Markets – Hydrocarbon Fuels • Combined heat and power (CHP) is the most cost effective way to reduce carbon emissions from power generation quickly • Conventional CHP difficult / unattractive to deploy at local scale • Fuel cells enable deployment of CHP at small scales e.g. residential and commerci
Slide 74: PAFC for Commercial CHP
PAFC for Commercial CHP • Over 7 million operating hours • New lower cost unit released 2009 • 400 kWe, 500 kW heat / cooling • Freedom Tower, NY • Quiet, clean, efficient • Suitable for distributed power • CHP; substantial CO2 savings • 5,000 units would save as much CO2 as the proposed Severn Barr
Slide 75: Markets – Hydrogen
Markets – Hydrogen • Today's markets are for the replacement of costly and inadequate conventional alternatives • Backup power for grid failure • Telecoms masts, data and security systems • Low maintenance, low noise, low emissions • Replaces battery packs and diesel generators • Materials handling
Slide 76: Hydrogen PEM for Buses and Cars
Hydrogen PEM for Buses and Cars • Buses: continue to attract interest • Hybrid configuration demonstration fleets around the world • Wider deployment from 2015 • Cars: largest potential market • 10,000 cars p.a. = 2 - 5 million MEAs • 60 million cars = 5 - 10 billion MEAs • Climate change and urban
Slide 77: Vehicle Power Train Evolution
Vehicle Power Train Evolution • Efficient petrol and diesel engines • Mild hybrids – regenerative braking for auxiliary power • Parallel hybrids – mechanical drive, battery support • Series hybrids – electric drive with on board generator, plug-in hybrid • All electric vehicle – batteries only • Key
Slide 78: Electricity as the Future Fuel - Issues
Electricity as the Future Fuel - Issues • Current grid electricity generation is carbon intensive • Decarbonising grid electricity requires investment in renewables, carbon capture and storage and nuclear • GM’s Chevrolet Volt battery provides 5.5 kWhr of usable energy. Sufficient for 40 miles. It w
Slide 79: Hydrogen as a Future Fuel
Hydrogen as a Future Fuel • Like electricity, hydrogen can be generated from many sources and is zero emission at the point of use • Low carbon hydrogen available in the near term from waste to hydrogen • Decarbonising electricity generation means producing huge quantities of low carbon hydrogen as
Slide 80: Summary
Summary • Today’s commercial markets are in portable power, backup power and commercial CHP • These markets on their own will enable Johnson Matthey’s Fuel Cells business to achieve profitability in the next few years • Fuel cells for consumer electronics is a huge potential market • Further progres
Slide 81: Coal to Products and Low Carbon Technology
Coal to Products and Low Carbon Technology Barry Murrer Director, Johnson Matthey Technology Centre Sue Ellis Manager, Low Carbon Research Group
Slide 82: Topics
Topics Coal Barry Murrer, Director, JMTC Greenhouse Gas Mitigation Sue Ellis, Manager, Hydrogen Generation and Low Carbon Research Group Storage 82
Slide 83: Energy Demand and Supply
Energy Demand and Supply World Primary Energy Demand by Fuel • Oil supply nearing the peak • Oil is more difficult and costly to extract • ‘Dirtier’ oil requires more refining • Gas and coal forecast to grow Source: IEA 2006 Presented during Billingham / Stockton visit Jan 2008 83
Slide 84: Increasing Use of Gas and Coal
Increasing Use of Gas and Coal • Gas (Syngas) to Products Traditional Applications • Methanol - Wood preservative, vinyl paint, resins, adhesives, MTBE • Hydrogen - Desulphurising fuels, chemical processes, fuel • Ammonia - Fertiliser, pharmaceuticals, chemical intermediates New Energy Sources • Gas
Slide 85: Coal
Coal • Use of coal will increase for chemicals, fuels and power generation • Coal is dirty and these applications all generate more CO2 than comparative oil / gas based technology • We need to use coal cleanly and eventually capture and sequester CO2 85
Slide 86: Coal
Coal http://en.wikipedia.org/wiki/File:Struktura_chemiczna_w%C4%99gla_kamiennego.svg 86
Slide 87: Coal is a Variable Feedstock
Coal is a Variable Feedstock….. Carbon / Energy Content of Coal Moisture Content of Coal Low Rank Coals Hard Coal 47% 53% Lignite Sub-Bituminous Bituminous Anthracite 17% 30% 52% 1% Thermal Metallurgical Steam Coal Coking Coal USES Largely power Power Power Iron and Domestic and generation Cement Ma
Slide 88: Coal – What is it used for?
Coal – What is it used for? Other Industrial 13% Cement 5% Steel 16% Electricity 66% Total estimated demand 2008 = 5.9 billion tonnes Data source: Energy Information Administration www.eia.doe.gov 88
Slide 89: A Tonne of Coal Contains…
A Tonne of Coal Contains… Coal Types Average Energy Content Carbon CO2 / tonne Moisture Ash Content coal MJ/tonne kWhr wt. % tonnes wt. % wt. % Anthracite 33,000 9,170 86 – 97 3.2 – 3.6 <3 Bituminous 27,900 7,750 45 – 86 1.7 – 3.2 3 – 13 7 – 14 Sub-bituminous 20,000 5,550 35 – 45 1.3 – 1.7 28 – 30 5
Slide 90: Potentially Harmful Components in Coal
Potentially Harmful Components in Coal Element Global Average Range Element Global Average Range (g/tonne) (g/tonne) Mercury 0.02 – 0.19 Sulphur 2,000 – 40,000 Arsenic 0.3 – 13 Cadmium 0.01 – 0.31 Selenium 0.1 – 5 Antimony 0.02 – 1.4 Chlorine 100 – 1,500 Fluorine <20 – 340 Lead <1 - 22 90
Slide 91: Process Technologies: Coal to Chemicals
Process Technologies Coal to Chemicals Hydrogen Methanol Products Coal Gasifier Sour Shift SNG Process Technologies offers leading products FT and / or technology for each of these Ammonia building blocks 91
Slide 92: Planned Coal to Chemicals in China
Planned Coal to Chemicals in China mtpa 70 • Current world methanol 60 capacity is 35 mtpa 50 • JM is a strong catalyst 40 supplier and licensor in this 30 area 20 • Manufacturing sour shift at JM 10 joint venture in Qingdao 0 2010 2015 2020 FT gasoline Alkenes Methanol DME Source: Exposure draft of
Slide 93: Coal to Chemicals – Substitute Natural Gas
Coal to Chemicals – Substitute Natural Gas Coal Gasifier Sour Shift SNG • JM offers methanation process technology through DPT to produce SNG • Based on our high activity CRG catalyst • At Dakota Gasification Company, CO2 separated and used for enhanced oil recovery (EOR) • Projects being developed
Slide 94: Coal to Chemicals
Coal to Chemicals Coal is a valuable feedstock Conversion of coal to chemicals is important now and will increase Compared to power generation CO2 emissions from coal to chemicals are negligible New JM opportunities will arise 94
Slide 95: Coal to Fuels
Coal to Fuels • If adopted widely would generate huge amounts of CO2 and require major expansion of coal production • Synthetic fuels from coal have a carbon intensity 2.5 - 3.5 times that produced from burning conventional HCs • US consumption of liquid fuels is 13 million bpd • 10% replacement by
Slide 96: Coal to Electricity
Coal to Electricity • The largest application of coal • Will continue to grow 96
Slide 97: Electricity Generation by Energy Source
Electricity Generation by Energy Source Trillion kWh 18 16 14 12 10 2005 8 2030 6 4 2 0 Oil Nuclear Renewables Nat. Gas Coal Source: www.eia.doe.gov Energy information administration international energy outlook 2008 97
Slide 98: Cleaner Electricity from Coal
Cleaner Electricity from Coal • NOx abatement from power plants • JM SEC (Argillon) • Mercury removal from flue gas • Mercury and other metals in IGCC • Direct carbon fuel cells 98
Slide 99: SEC Catalyst for Mercury Oxidation
SEC Catalyst for Mercury Oxidation Mercury • Metallic mercury oxidised by gold catalyst Oxidation Catalyst • Oxidised mercury can be scrubbed and removed from flue ESP • Lower Colorado River Authority, Texas Wet FGD System (SO2 / Hg Removal) • 200 MW coal fired power station, two year trial • 1174 f
Slide 100: Other JM Hg Related R&D
Other JM Hg Related R&D JM / Anglo / NETL : Pd based sorbents for removal of Hg, As, Se etc. from syngas at elevated temperatures Trials at two US sites Won US DOE R&D 100 Award in 2008 MERCURYCAP : EU funded programme – improved Hg oxidation over SCR catalysts Argillon / JM SEC supplying catalysts
Slide 101: Carbon Capture and Storage
Carbon Capture and Storage - Necessary for Future Expansion of Coal Use? ‘Permanent’ storage of captured CO2 in geological formations Currently used in EOR with economic benefit 101
Slide 102: Carbon Capture and Storage
Carbon Capture and Storage “The only hope for mankind…” or “False hope” ? Prof. David King Greenpeace • Issues - Capture technologies too costly and remain to be proven at scale - Long term carbon policies are unclear and variable - Conventions are needed to cover CO2 storage and stewardship - Publi
Slide 103: Demonstrated Technologies for CO2 Capture from Coal Power Stations
Demonstrated Technologies for CO2 Capture from Coal Power Stations • Post combustion – chemical absorption of dilute CO2 from flue gas • Oxyfuel – combustion in pure oxygen and direct compression of exhaust • Pre combustion – physical / chemical separation of high pressure CO2 from syngas 103
Slide 104: Carbon Capture and Storage: Similarities and Opportunities
Carbon Capture and Storage Similarities and Opportunities Natural gas Coal IGCC Coal oxyfuel Coal post combustion catalytic reforming gasification Syngas processing Flue gas clean up CO shift catalysis Sour shift catalysis Sequestration Purification Purification Products CO2 separation CO2 separatio
Slide 105: IGCC Integrated Gasification Combined Cycle
IGCC Integrated Gasification Combined Cycle Gasification Based Energy Production System Concepts Sulfur Sulfur = opportunities for JM By-Product By-Product catalyst / purification Fly Fly Ash Ash By-Product By-Product technology Slag Slag By-Product By-Product 105
Slide 106: Direct Carbon Fuel Cell
Direct Carbon Fuel Cell • Electrochemical oxidation of solid carbon E° = 1.02 V, 750 – 850 °C C + O2 CO2 Diverse cell designs Theoretical efficiencies >80% Concentrated CO2 exhaust suitable for capture Modular power generation concept at tens of MW scale x Significant coal processing require
Slide 107: Project Portfolio Summary
Project Portfolio Summary • There are short and medium term opportunities being worked on by Process Technologies. There is a rigorous project selection and management process in place within Process Technologies • We have a JMTC / Process Technologies process to identify and prioritise longer term
Slide 108: Low Carbon Technologies – Future Opportunities
Low Carbon Technologies – Future Opportunities Sue Ellis Manager, Low Carbon Research Group
Slide 109: Low Carbon Research Group
Low Carbon Research Group • Identify Johnson Matthey’s Low Carbon Technology interests • Understand emerging markets • Develop early business opportunities • Implement Low Carbon R&D projects • Renewable H2 generation • Distributed H2 generation • Hydrogen storage • GHG reduction technologies 109
Slide 110: Global Anthropogenic Greenhouse Gas Emissions
Global Anthropogenic Greenhouse Gas Emissions 77% total CO2 GWP = 1 Gt CO2eq / year 14% total CH4 GWP = 21 8% total N2O GWP = 310 1% total Others 2005 Data Source: IPCC 4th Assessment Report 2007 110
Slide 111: N2O Abatement
N2O Abatement A Growing Opportunity • N2O is formed as a side reaction in nitric acid manufacture • 5% of anthropogenic N2O emissions • Global emissions: 400,000 t/yr = 125 million tonnes CO2 equivalent • Catalytic technology developed by JM / Yara reduces >90% emissions • 70% market share with inst
Slide 112: Anthropogenic Methane Emissions
Anthropogenic Methane Emissions 18% • Agriculture accounts for almost half 47% • Other significant sources • Oil & gas operations • Landfill gas • Coal mining • Manure 12% 6% 13% 4% Oil & Gas Landfill Coal Manure Other Agriculture 2005 Data Source: Global Anthropogenic Emissions of Non-CO2 Greenhous
Slide 113: Mine Related Methane
Mine Related Methane Coal Bed Coal Mine Ventilation Air Methane Methane Methane Gas drained from coal Gas drained from Extracted from mine seam pre-mining / worked areas of mine to allow safe working unmineable coal seam 60 - 94% CH4 30 - 95% CH4 0.1 - 0.8% CH4 in air Few m3/sec Few m3/sec 100s m3/s
Slide 114: Methane Abatement
Methane Abatement New JM Opportunities Oil and Gas Landfill Coal Mines Manure ‘Waste’ Methane Power Fuels Chemicals CO2 • Issues with variable methane concentrations, gas flow and contaminants 114
Slide 115: Hydrogen Generation Pathways
Hydrogen Generation Pathways Waste Biofuels Coal Gasification Photochemistry Solar Thermal Hydrogen Production Photobiology Technology Nuclear Electrolysis Reforming Distributed Conventional SMR Fuel Processors On Site H2 Generators 115
Slide 116: Hydrosol: Splitting Water with Sunlight
Hydrosol Splitting Water with Sunlight 116
Slide 117: Hydrogen Storage
Hydrogen Storage A Problem Waiting for a Solution • Fuel cell vehicles are being designed with >300 mile range using high pressure tanks to store the hydrogen • A low pressure alternative could offer benefits of • Space • Cost • Performance • The international R&D effort continues… 117
Slide 118: JM and Hydrogen Storage
JM and Hydrogen Storage • H2 storage cited as a barrier to fuel cell commercialisation • Strategic driver from fuel cell business • Current JM materials have technical benefits but not suitable for automotive systems • Historical IP position on Mg and La Ni5 (AB5) materials • Excellent technology fi
Slide 119: JM Hydrogen Storage Activities
JM Hydrogen Storage Activities • Research and Development • Full range of metal and complex hydrides • Translating powder and thin film results into reality • Microscale gram scale kg scale • Testing and characterisation • Networked with 25 Universities • EU FP7 project • Two Technology Strategy
Slide 120: Low Carbon Technologies - Summary
Low Carbon Technologies - Summary • Greenhouse gas regulation will open up opportunities for JM • New markets for existing products • New process and licensing opportunities • New technology offerings • JM has a breadth of core technologies that can be used to tackle the emerging challenges • N2O ab
Slide 121: Tour of Johnson Matthey Technology Centre
Tour of Johnson Matthey Technology Centre
Slide 122: Wrap Up and Q&A
Wrap Up and Q&A Neil Carson Chief Executive
Slide 123: Glossary
Glossary AFC Alkaline fuel cell ECT Emission Control Technologies APU Auxiliary power unit EGR Exhaust gas recirculation As Arsenic EOR Enhanced oil recovery ASC Ammonia slip catalyst EPA Environmental Protection Agency (USA) BRIC Brazil, Russia, India, China ESP Electrostatic precipitator CARB Cali
Slide 124: Glossary
Glossary JMFC Johnson Matthey Fuel Cells OEM Original equipment manufacturer JMTC Johnson Matthey Technology Centre PAFC Phosphoric acid fuel cell LDD Light duty diesel PEM Polymer electrolyte membrane LNT Lean NOx Trap PFCs Perfluorocarbons MCFC Molten carbonate fuel cell Pgm Platinum group metal M
Slide 125: Johnson Matthey
JME) Johnson Matthey