Biohydrogen – Prospects in a Transatlantic Perspective

1. Research & Technology Seminar – Intersection of Energy, Agriculture and Biotechnology – 16-08-04 Biohydrogen – Prospects in a Transatlantic Perspective Elisabet Fjermestad Hagen Director Hydrogen Business Development Norsk Hydro ASA

2. Overview • Brief presentation of Norsk Hydro • EU Policy on energy • Why renewables – why hydrogen? • Pathways for biomass to hydrogen • Information sources and contacts

3. Progress of a different nature • Hydro is a Fortune 500 Energy and aluminium supplier with 36,000 employees in more than 40 countries. • Hydro has solid experience in offshore oil and gas production and is heading one of the world’s most spectacular deep see offshore field development projects • Hydro is the third largest integrated aluminium supplier in the world.

4. Norsk Hydro Solutions for sustainability Operating revenues 2003: Company total: NOK 172 bn Aluminium Oil & Energy Decison on public listing of Agriunder the name YARA Agri NOK 69 bn NOK 60 bn The third largest integrated aluminium supplier in the world The second largest producer of oil and gas on the Norwegian Continental Shelf The world’s leading supplier of plant nutrients

5. Hydro positioning in renewables and hydrogen • Hydro power • Wind power • Solar energy - integration in Hydro building systems • Preparing for a future position as a hydrogen supplier • Venture investments in promising technologies • wave energy ++ • CO2 separation and storage for converting natural gas to power and hydrogen • Green certificates trading

6. Overview • Brief presentation of Norsk Hydro • EU Policy on energy • Why renewables – why hydrogen? • Pathways for biomass to hydrogen • Information sources and contacts

7. EU policy on energy – anchored to three key goals Reducing imports - Security of supply Reducing emissions of CO² and pollutants. - Environment Local job creation - Employment

8. CO2 considered main emission problem

10. EU targets for renewables – key driver for business action • EU-target: 12 % of electricity from renewables in 2010(equals 270 TWh) • Growing support for hydrogen – public incentive programmes in the transport sector, but still no formal targets.

12. European H2/FC Technology Platform HLG vision Member States’ Mirror group TP secretariat Advisory Council Incl. Executive group Deployment strategy Strategic Research Agenda Steering-panels Initiative groups H2/FC Road map Public awareness Safety, codes & standards Finance & Business Dev. Education & training Platform activities/projects

13. Overview • Brief presentation of Norsk Hydro • EU Policy on energy • Why renewables – why hydrogen? • Pathways for biomass to hydrogen • Information sources and contacts

14. Energy supply today depends almost 80% on fossil fuels Current energy supply system Source: IEA 2002 (World 2000 data)

15. Replacing fossil fuels with renewable energy sources • Direct replacement : Significant reduction of flexibility • Biomass not well suited for large-scale distribution to end-users • Limited resource availability for use as transport fuel • A new secondary energy carrier needed – hydrogen is the most versatile: • Hydrogen can be produced from nearly all energy carriers • Hydrogen can be used for all energy needs, using different conversion technologies • Hydrogen offers possibilities for electricity storage • Hydrogen allows virtually emission-free end-use

16. Overview • Brief presentation of Norsk Hydro • EU Policy on energy • Why renewables – why hydrogen? • Pathways for biomass to hydrogen • Information sources and contacts

17. Possible pathways to renewable hydrogen

18. 1. Hydrogen production from renewable sources – direct hydrogen production Renewable energy Thermochemical processes • Gasification or pyrolysis the most promising medium term technology Biochemical processes • Very early stage of development - low conversion efficiencies Photoelectrolysis • Early stage of development – material cost and practical issues to be solved 1 2 3 7 Hydrogen Electricity 4 5 6 Transp., heating, industry, household

19. 2. Hydrogen production from renewable sources – indirect hydrogen production • Hydrogen production using electricity • electricity from renewable sources • splitting of water by electrolysis • Water electrolysis represents mature technology wind/wave/solar/hydro/ biomass/biogas/waste water electrolysis electricity hydrogen

20. Biomass gasification for hydrogen production - status • No commercial biomass gasification processes exist • Gasification technology to convert biomass into hydrogen rich synthesis gas has been demonstrated • Cleaning technology to produce clean syngas from biosyngas for production of hydrogen is available • Logistics is a challenge, usually only economic at large scale • Large- scale supply requires a large market

21. Biomass to hydrogen: Optimum pathway “tailor made” Optimum choice of energy resource and technology • depends on resource availability and market demand • both vary with location and time Feedstock Conversion Product Property of feedstock Availability Logistics Technology Experience Cost Quality Price Capacity

22. BTL- Biomass to liquid – an intermediate solution? • BTL production - A two-stage process: • Production of synthesis gas from biomass gasification (H2 and CO) • Hydrocarbon synthesis over a Fischer Tropsch Process catalyst to obtain a dieselfraction mixture (BTL fuels) • Addition of external hydrogen to the process can significantly improve the process results (Choren – see attachment)) • The BTL process can also be used to produce hydrogen

23. BTL- Biomass to liquid – an intermediate solution? • BTL fuels can be used directly in diesel engines or mixed with diesel. • BTL fuels could largely enhance the market share of biofuels beyond the EU target of 6 % in transport for 2010. • Use of added hydrogen to enhance the process and/or co-production of BTL fuels and hydrogen could provide a cost –efficient pathway to large volume renewable hydrogen production • Of interest for Norway? Raw materials: agricultural residues (e.g. straw), forest residues or energy plants grown for the purpose (short rotation trees or other cellulose material)

24. Biomass gasification for hydrogen production– Research needs – Prospects for collaboration Development needed to improve the economics of production processes and logistics of feedstock • Feed Preparation • Biomass Gasification • Raw Gas Handling and Clean-up • Interface Issues and System Integration • Information Dissemination and Policy

25. Overview • Brief presentation of Norsk Hydro • EU Policy on energy • Why renewables – why hydrogen? • Pathways for biomass to hydrogen • Information sources and contacts • Main source basis: IEA Hydrogen Implementing AgreementAnnex 16: HYDROGEN FROM CARBON CONTAINING MATERIALS - Subtask B: Biomass to hydrogen http:/www.eren.doe.gov/hydrogen/iea/

26. IEAHIA -SUBTASKB: BIOMASS TO HYDROGEN • Objective: Evaluate the technical and • economic potential of different applications • and establish R&D needs • Main activities: • B1: Biomass to Hydrogen: State of the Art and Research Challenges         B2: Networking and interaction with other IEA Tasks and other research groups B3: Analysis of Scenarios for Deployment: Feed-stocks, Conversion Technology and Market Opportunities          B4: Processes and fundamental work: Hydrogen from Biomass Gasification Technologies          High Pressure Aqueous Processing          Biological processes          Pyrolysis

27. Available reports Biomass to Hydrogen: State of the Art and Research Challenges - NREL http:/www.eren.doe.gov/hydrogen/iea/ Biomass Gasification for Hydrogen Production – Process description and research needs - IEA Bioenergy Thermal Gasification Task /GTI http://www.eren.doe.gov/hydrogen/iea/ The role of biomass in a hydrogen economy – ECN http:/www.ecn.nl/library/reports/2003/c03028.html Renewable Hydrogen – BTG, Hydro, Uppsala University (Supported by EU 5th FWP – report under preparation)

28. For more information contact: Elisabet Fjermestad HagenHydro Oil & EnergyN - 0246 OSLO+ 47 22 53 7584elisabet.fjermestad.hagen@hydro.com www.hydro.comwww.electrolysers.com

29. Attachments

30. Brief description of the Choren BTL process- Diesel fuel based on biomass, using hydrogen addition in process The technology: • The Choren process is characterized by a two stage gasification of biomass. The technology of the first stage may give rise to substantial energy profit. The second stage reactor is relatively unique by allowing both high temp. gas burning and gasification of the coal powder. • Adjustment of the optimal H2/CO ratio of approximately 2:1 by supplying hydrogen from electrolysis and increase of diesel production from 30.2 litre/hour to 53 litre/hour can be obtained. • Another advantage of external hydrogen supply is that the CO contained in the synthesis gas will not be consumed for hydrogen production via the shift reaction (and emitted as CO2) • All CO entering into the subsequent FT unit will result in increased total FT-product yield

31. Input from the EU study Renewable Hydrogen The following key project deliverables, relevant to biomass to hydrogen, are available: • List of European projects and networks focusing on hydrogen from renewable resources • An extensive overview of possible thermo-chemical biomass to hydrogen conversion technologies including their current status and applicability to different types of biomass • A comprehensive list of pilot projects on biomass conversion technologies (mainly different gasification, pyrolysis technologies), which can potentially be used as the basis for the development of future biomass to hydrogen conversion technologies