The document discusses carbon capture and utilization (CCU) and provides a 2050 vision for CCU to become a new multi-billion dollar industry. It outlines current CCU business capturing 140 million tons of CO2 annually, mainly for enhanced oil recovery and urea production. Key CCU pathways discussed include reducing CO2 to make fuels and chemicals, inserting CO2 into products without reduction, and mineralizing CO2. The document addresses opportunities and challenges for different CCU technologies and pathways, and how regulation, value chain structuring, technology development, and demonstrations can help realize the vision for CCU.

1. CCU Outlook
Robert Gresser Former EVP Innovation leader
at Solvay
Oct 2019
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2. Agenda
 2050 Vision for a new industry
 CCU today
 Main pathways for CCU
 Opportunities and challenges
 How to make it happen
 Concluding remarks
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3. CCUS 2050 Vision for a new
industry
 CCUS should provide >5GT of CO2 reduction
(IEA 2°C scenario)
 Residual emissions will remain (steel,
cement, ..)
 Geopolitical impact will keep fossil energy:
(ex China ).
 In 2050 CCUS will be a new industry
worth a few hundred bn$.
◦ All possible levers must be used together
◦ The foundations of this industry are built now
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4. CCU 2050 Vision
 CCS is necessary for large scale CO2 storage
where it’s possible.
 CCU: Carbon Management for value creation
in a circular economy context :
◦ Substitution of fossil or bio-based carbon feedstocks
by recycled carbon.
◦ Relevant where carbon is necessary (Steel,
Chemicals…)
◦ Although the theoretical potential of CCU might be up
to 2GT, value creation is a key driver.
◦ Potential to store renewable energy
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5. CCU Business today:
approx 140MT , value >
10bn$
CO2
140MT
DemandSupply
• EOR 80MT
• Fertiliz / Urea: 36MT
• Food & Bev: 14MT
• Others (*) : 10MT
• Concentrated CO2
sources, (>90%)
• Industrial : 80MT
(Sugar, Nat Gas,
Ethylene, Ammonia)
• Natural (Dome)
• cost 5 -30$/T CO2
(*) Carbonate, Metal welding,
Refrigerant…
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6. CCU Tomorrow: Industrial sectors
Industrial
Sector
Main
Role in CCU
Output
Steel Valorize the Steel Gas exhaust (1)
MeOH, EtOH, C3
Hydrocarbons
Chemicals CO2 based products
Ethylene, Propylene MTO;
BTX; Polyols…
Cement
Concrete
Carbonatation Olivine , Fly ash.
Cement strengthening
Aggregates, Concrete
Transport Non-Fossil based fuels MeOH, EtOH, OME
Oil & gas,
Energy
Reduce CO2 footprint Chemicals and fuels
(1) Coke Oven; Blast furnace; Converters
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7. CCU Tomorrow: key Technology
pathways
Technology Pathway Output Challenges
Reduction of CO2
MeOH, Ethylene, C3,
OME fuels Renewable Electricity
Insertion of CO2
without reduction
Polycarbonate, PU,
Polyols.. Market development
Inorganic fixation of
CO2
Carbonates, aggregates,
concrete
Process, Logistics, Market
development
Biological conversion
of CO2
EtOH, CH4 Proteins
from microalgae
Fermentation need CO or H2
Early stage for microalgae
Electroreduction Electricity or or semiconductor / Light.
Photochemical
reduction
CO2 Reduction by solar energy (artificial
photosynthesis).
Far from IndustrialClose to Industrial
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8. CO2 reduction
 MeOH is probably the best pathway. First Industrial unit (CRI
5KT capacity)
 Need to access to low cost renewable electricity .
 Steel exhausts contain CO and H2.
 Short term opportunities : MeOH and OME for fuels
◦ Regulated market (>600€/T in some EU countries)
◦ OME could be a drop-in substitute of biodiesel
 Competitivity in Chemicals: so far difficult
◦ Need a breakthrough in the renewable electricity price.
◦ Some potential in industrial ecosystems.
◦ Incentive system to start the business.
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9. Insertion of CO2 without reduction
 Low energy required but the basic chemical
building blocks are not accessible.
 Limitation to applications where CO2 is
incorporated in the chemical molecule
without breaking the C-O bonds
◦ Polycarbonate , Polyols, Polyurethane..
 Competition with established fossil based
products without incentive system.
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10. Mineralization
 Ready to business opportunities
◦ CO2 for Cement strengthening: Solidia, CarbonCure
◦ Carbon8: Aggregates
 Carbonatation of end of life recycled concrete fine particles
 Carbonatation of natural ores (silicates wollastonite ,olivine,
serpentine )
 Challenges for Large scale up and economic feasability :
◦ CO2 absorption (Max 400Kg/T for steel slags)
◦ Use of the carbonated product logistic and Business model
◦ Slow conversion rate of natural ores
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11. Biological Conversion
 Fermentation process Industrial stage
◦ Steel gas fermentation (contain CO and H2) to make EtOH
(Lanzatech) .
 Microalgae: still a long way to industrial large scale
production:
◦ 1ha open pond: 200T/y CO2 to produce 100T/y dry biomass
◦ Need resistant microalgae and reliable culture processes
◦ Need Breakthrough for the drying / separation process to get
the best value
◦ Target cost of the dry biomass <<0,5€/Kg Today 4-5€/Kg
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12. Regulation today
◦ Increasing reach of carbon pricing. (source World Bank 2019)
◦ 46 national and 28 sub-national juridictions on carbon pricing,
covering 11 GtCO2e or 20% of GHG emissions
◦ Carbon Price 1- 127$/TCO2 , 44bn$ raised in 2018, 51% of the
emissions are priced at < 10$/TCO2
 Minimum CO2 price range to be consistent with Paris
Agreement: 2020: 40-80$/T CO2, 2030: 50-100$/T
 Favourable regulatory context for the re-use of CO2 (ex
EU Directive on transport).
 US 45Q Tax Credit for CCUS
◦ Performance based CO2 reduction / LCA
◦ eligibility threshold 100KT Captured Carbon
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13. 13
18-25€/GJ
Bio fuelsRenewable
MeOH
20-30€/GJ Challenges :
 incorporation into the gasoline:
Direct Blending MTBE,
Transesterification
 Regulatory scheme to compete
vs biofuels (EU transport
directive)
 Drop in existing fuel from
Renewable MeOH (MTG)
 Development of new fuels (ex
DME, OME) need adaptation of
the transport industry
Fossil
MeOH
10-15€/GJ
Source VITESSE² Consortium
Competitivity of CO2 to MeOH for fuel
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14. Circular economy for Carbon
Management
C
Fossil + Biomass
Carbon
Recycled Carbon
Renewable
Energy
Carbon in
Products: Steel,
Chemicals Concrete
fuels..
Carbon in
Energy
CO2C
Fossil + Biomass
Carbon
Renewable
Energy
Carbon in
Products: Steel,
Chemicals Concrete
fuels..
Carbon in
Energy
CO2 CCU
With CCUToday
For the Same
Products as today
 Less Carbon from Fossil and Biomass origin in
the product mix.
 Look at the carbon in the product with a circular
economy logic promoting value creation.
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Carbon Feedstock
Carbon Feedstock

15. Value chain structuration
Capture
Product
Developmen
t
Renewable
Energy
CO2
Emittors
Conversio
n
CO2
Transport
 Need quick connections between different industrial
sectors and use existing assets adding CCU block
 Need for a regulator authority to get fair prices along
the value chain and avoid monopolistic situations
(similar to electricity, gas or telecom).
Refineries, Energy sector, Steel ,
Chemical industry, Cement,
Fuels…
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16. Technology developments
 Catalytic reduction of CO2, Electroreduction.
 Photochemical reduction.
 Chemistries for CO2 based specialties
 Fast and cheap carbonatation of natural ores
(Olivine…)
 Applications for carbonated products
 New stable & productive microalgae
 Effective cultivation process
 Separation and valorization of the algae biomass
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17. Real industrial and Business
demonstration
 Several large scale demonstration
projects launched thanks to a strong
drive of the EU commission.
◦ Carbon2Chem, Steelanol, Carbon4Pur,
COZMOS…
 Beyond the technical aspect , a strong
emphasis should be put on the business
model along the value chain:
◦ Define the best model and rules to create
value
◦ Propose attractive pathways to develop the
business.
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18. Concluding Remarks
 CCU is part of CCUS , it’s Carbon
Management for value creation in a circular
economy context.
 First market could start with CO2 to MeOH
for fuels in the regulated transport market.
 Ultimately CCU is more relevant for Organic
or inorganic chemical products.
 The value chain should be structured with
◦ Quick connections between industrial sectors
◦ A Regulatory authority ensuring fair prices along
the value chain to avoid monopolistic situations.
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19. Thanks
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Robert Gresser Former EVP
Innovation leader at Solvay
Robert.gresser@gmail.com
+33 6 80 21 02 56