Transcript LanzaTech_Presentation_Template

Engaging the Dragon
Adding Value to Steel Mill Gases in China
Dr. Sean Simpson
CSO & Founder
LanzaTech
© 2010 LanzaTech Inc. All rights reserved.
From waste
carbon to high
value products
LanzaTech has developed a gas fermentation
technology that allows diverse resources to be
used for fuel & chemical production while
reducing CO2 emissions
Private and Confidential
Company Overview
 Founded in January 2005 by Drs. Sean Simpson & Richard Forster
 Funding
– Startup: 2005 : 2007 Amazing Angels
– Series A : Khosla Ventures - $12m in 2007
– Series B: Qiming Ventures - $18m in 2010
– NZ Govt. Support $10m
 Team
– CEO: Jennifer Holmgren
– 40 staff
– Auckland (New Zealand) and Shanghai (China) , Chicago (USA)
 Patents
– 50 patents filed
 Commercialization
– Pilot Plant (BlueScope Steel): Successful & Operating since Nov 2008
– Negotiation with Chinese Steel Companies to for
2 phase construction of 1st commercial plant
Private and Confidential
Significance of Funding by Khosla Ventures
Vinod Khosla based on Sand Hill Rd in Menlo Park
– Partner at Kleiner Perkins, founded Sun Microsystems
– Viewed as the “guru” of Clean Tech
– Key advisor to US government on energy
 Fortune Magazine: “(VK is) one of the most successful
venture capitalists of all time”
 Forbes has labelled him the #1 VC more than once.
Private and Confidential
Alternative fuels and fuel technologies are needed
• Cheap oil is gone
• Demand is growing
• Promotes climate change
5
Private and Confidential
3 Trillion reasons to make fuel
Low Carbon-Fuel
• Global
• Growing
• Mandated
6
Private and Confidential
Low Carbon fuel: a technology-led industry
feedstock
+
technology
=
• Today's technologies are not enough
• New technologies are required
• Lowest cost technologies will dominate
7
Private and Confidential
Fuel
Using Gas for Fuel and Chemical Production
Gases
Carbon Monoxide
(CO)
Proprietary
Fermentation Process
Fuels and Chemicals
Gas-to-liquids
....and if available
Hydrogen
(H2)
Diverse Feedstock
...Converted by a single process
Private and Confidential
...to valuable products
Traditional Low-Carbon Fuel and Chemical
Production Is Feedstock Restricted
Existing
Technologies
Available technology approaches for fuel and chemical production
are limited to the use of sugar or cellulose feedstocks:
• Food-based
• Expensive
• Capital intensive
Private and Confidential
Targeting Low Cost Inputs
Our proprietary microbe uses gases as
its sole source of carbon and energy for
fuel production
Private and Confidential
LanzaTech: Using Available Resources
Industrial flue gas
e.g. from Steel Mill
Available
High volume
Point Sourced
Low value
Non food
Syngas
Municipal Solid
Waste (MSW)
Steam Reformed
Methane
e.g. Biogas
Coke Ovens Gas
Private and Confidential
Feedstock Flexible
Gas
Composition
CO
Industrial
Flue Gas
e.g. from Steel Mill
Fuels & Chemicals
Gas-to-liquid Conversion
Syngas
Municipal Solid
Waste (MSW)
H2
Steam
Reformed
Methane
e.g. Biogas
Coke
Ovens Gas
A broad range of CO:H2 ratios can
be used by the LanzaTech process
 Fuel production has been demonstrated with
a wide range of available waste gas resources
Private and Confidential
Resolving the Hydrogen Puzzle….
LanzaTech can use a Hydrogen free-gas for the
production of ethanol
The ethanol molecule contains 6 Hydrogen's:
H
H
H H
H
H
………..?
Private and Confidential
Making Hydrogen on Demand
CO + H2O
CO2 + H2
[H2]
• Microbe can make H2 form CO and water
as required
• Any CO:H2 ratio can be used
Private and Confidential
The World’s First Pilot Plant of Its Kind
Gas & services connection with Mill
Gas management and buffering module
1000 liter capacity fermentation module
Media storage, process cleaning and
sterilization module
Data and control linkage to all modules
Process control module
Private and Confidential
Tough, Proven Process
• Pilot in operation for 12 months
• Pilot plant uses “raw” steel waste gas
• Commercial production rates achieved
• Tolerates all gas contaminants
• Tolerates variations in gas composition
• Ready for commercial scale up
The LanzaTech pilot plant operates at the New Zealand Steel mill
Private and Confidential
From fuels to Chemicals
 Fuels can come in many
forms….
 Commodity chemicals
primarily consist of:
Hydrocarbons:
C: Carbon
Electrons:
H: Hydrogen
Hydrogen:
O: Oxygen
LanzaTech sees tremendous opportunity in offering a
route to sustainable chemical production
Private and Confidential
1
7
Microbes as chemical producers
 Bacteria are known to synthesize a wide variety of products
– Alcohols
– Organic Acids
– Amino acids
– Polymers
– Vitamins
– Alkenes and ketones
 Multiple examples for fermentations
on sugar and starch
Using gases as substrate is unique!
Private and Confidential
2,3 BDO: a 4-carbon first
 LanzaTech is the first company to demonstrate 2,3-butanediol
(2,3-BDO) production by gas fermentation
 2,3, BDO is a platform chemical used in the manufacture of multiple
Private and Confidential
high-value products
Valuable Chemical Product Opportunities
Product
Global Mkt
(2008)
Value
($/Gal)
Application
Ethanol
$36Bn
$1.8
Fuels, Chemical intermediate
MEK*
$2.3Bn
$4.6
Solvent for coatings and paint
Acrylic
Acid
$5.5Bn
$5.4
Plastics, coatings,
adhesives and elastomers
*MEK: Methyl Ethyl Ketone
Private and Confidential
Converting
Carbon Gas
to Liquid
Fuel
Commercialization
Private and Confidential
Steel Gases = >30Bn Gal High Value Products
RUSSIA
1,830
S. KOREA
1270
USA
W. EUROPE
925
4,870
CHINA
E. EUROPE
1,300
10,800
JAPAN
3,750
BRAZIL
INDIA
955
1,315
Bus Dev Focus
in China
Country
Potential Ethanol Production Capacity
(MM Gas/yr)
Private and Confidential
Steel Mills (>5M Tpa)
 Expanding Steel Industry
 Commitment to
Ethanol Fuel
 Low cost of Capital
(50%) locally
Efficient energy conversion
60%
40%
20%
0%
Coal to electricity
Corn to ethanol
LanzaTech
LanzaTech
-20%
Energy conversion efficiency %
=
heating value of products
heating value of feed materials
Private and Confidential
>2.5 x More Value from Steel Mill Gas
Revenue comparison per Million Tonnes of Steel production using ONLY BOF gas
BOF Gas
LanzaTech
Ethanol
Converts to....
Revenue
20,ooo Tonnes
¥100MRMB
¥5,000RMB / Tonne
Vs.
Gas from 1 M
Tonnes of steel
Electricity
90 GWh
¥0.42RMB /KWhr
Private and Confidential
¥38MRMB
Displacing
20% of Gasoline in China
Scenario:
Access to 50% of China’s steel capacity
Steel Mill Gas
All Gases Produced
Available
Gases
Potential Ethanol
Production (tonnes)
43.2 Million
% of 2010 Gasoline
Demand Displaced*
66%
12.0 Million
20%
*Assumes 60 Mtpa gasoline consumption in China in 2010
Private and Confidential
Commercialization in 2 Phases
Phase 3
Complete
Commercial

Phase 2
Phase 1
Demo
Pilot
Integrate Demo
into Commercial
Plant
 Operational
Phase 1
Productivity:
Phase 2
Phase 3
300 TPA
120 000 TPA
Single Reactor Vol: 20,000 Liter
500,000 Liter
Accelerates Commercialization, Mitigates Scale-up Risk
Private and Confidential
26
Rapid Progress Made in China
 Team established in Shanghai
 Chinese Academy of Science:
– LOI signed, strategic partnership deal signed
 Steel Industry:
– LOI’s Signed with Two of the top 10 steel companinies
– Demo-to-Commercial partnership MOU signed with Baosteel
 Gasification:
– 3 Coal to liquids companies
engaged
– Demo-to-Commercial partnership
MOU signed with Henan Coal and Chemical
Private and Confidential
China: Fast
 Fast: be prepared to move very quickly
 1st trip to China was in November last Year..
 We have since:
• Formed a partnership with CAS
• Raised finance
• Secured LOI’s with several major energy-sector
players
• Baosteel
Private and Confidential
China: Challenging
 IP ….how do you protect it
 Deals: Do all parties KNOW what deal has been done?
 The wild west…..
Private and Confidential
多原料、多产品生产利润高
产品市场规模和增长情
况（人民币）
140
环境和能源安全问题促进燃料乙醇的增
长
¥80Bn
¥23Bn
120
100
•成本最低的生产商将主宰市场
80
60
¥38 Bn
40
20
¥770 Bn
¥16Bn
• 原料成本最低 = 成本最低
只有LanzaTech能利用工业废气为原料
¥250 Bn
0
2008
Ethanol
2020
MEK
Acrylic Acid
Private and Confidential
China: Exciting
– Fastest Growing economy in the world
– 100 million people live within 1 hour of Shanghai
– The largest single market for almost everything
– New Zealand is the ONLY western economy
with a free trade agreement with China
– Being small give us some big advantages….
Private and Confidential
A Sensible Path…
Waste for Energy
This Aligns:
Industrial
Growth
Energy
Security
Energy
Efficiency
To Produce
Food
For People
Land for Food for People
This Allows:
Land
Private and Confidential
Thank you
Private and Confidential