CATO 3 & Utilization of CO 2 Can the Utilization of CO 2 enhance the development of CCS?

Status of CCS in the world

CATO 3 work program WP1: Capture WP2: CO2 Utilization WP3: Storage, monitoring and verification WP4: Chain integration & Transport WP5; Policy, Law and Regulation WP5: Communication and Public Perception

WP Capture: CATO Pilot plant for PC-capture Flue gas details 1250 m 3 /hr flue gas, 250 kg/hr CO 2 captured Flue gas gas from pulverized coal power plant 90% of CO 2 captured from flue gas side-stream E.ON Rotterdam Maasvlakte

5 Storage in P18/P15 for Rotterdam demos and Shell’s Willingen – Reinland refinery in Germany. Storage in Q1 (from Jan-20) via shipping for the North Netherlands demos and new direct offshore pipelines from Eemshaven (Essent, Nuon) and Maasvlakte (E.ON, Electrabel) full scale operations. WP Transport: Roadmap for the Netherlands -Schematic Overview RTM Hub/ Gathering Network CINTRA Terminal P18 (40.5MtCO2) P15 (38.8MtCO2) 0.5MtCO2 RC Jan-20 to Dec MtCO2/yr RC Jan-23 to Dec MtCO2/yr RC Jan-25 to Dec-43 Maasvlakte Eemshaven (NNL) Q1 (200MtCO2) New offshore pipeline from Maasvlakte to Q1 (~110km, 10MtCO2/yr capacity) P18 to P15 (~22km, 5MtCO2/yr) 4.5MtCO2/yr RC Jan-30 to Dec-43 ROAD 1.5MtCO2/yr RC Jan-15 to Dec-29 Offshore pipeline from ROAD to P18 (~21km, 5MtCO2/yr) ROAD/EON tie in to CN (1km) Electrabel tie in to CN (1km) (~33km) Maasvlakte 0.5MtCO2/yr RC Jan-20 to Dec-24 3MtCO2/yr RC Jan-25 to Dec MtCO2/yr RC Jan-17 to Dec-26 GREEN HYDROGEN 0.5MtCO2/yr RC Jan-17 to Dec MtCO2/yr RC Jan-20 to Dec-29 W-RR Imports 0.4MtC02/yr RC Jan-20 to Dec-29 Shipping (~212km) Gathering Network Eemshaven to Q1 (~219km) - shipping in demo phase and pipeline (5MtCO2/yr capacity) in FS Ship Terminal

6 1 st test: K12-B8 - Injector GDF-Suez K-12B 2 nd test: K12-B5 - Producer 2 nd test: K12-B1 - Producer 2 nd test: K12-B6 - Injector Courtesy GDF-Suez Offshore Enhanced Gas Recovery, CO2 gas treatment led by TNO

EERP Demo (Maasvlakte) ROAD CCS DEMO (250 MW PC); FEED study P18 storage location executed by CATO 7

CATO 3 work program WP1: Capture WP2: CO2 Utilization WP3: Storage, monitoring and verification WP4: Chain integration & Transport WP5; Policy, Law and Regulation WP5: Communication and Public Perception

The Global CO2 Market ► Current global CO2 demand is estimated to be 80 Mtpa - 50Mtpa is used for EOR in North America. ► CO2 demand is expected to rise to 140 Mtpa by ► CO2 supply from large point sources is currently18,000 Mtpa which includes: ► 500 Mtpa from high concentration sources like Amonia & hydrogen production, gas processing (low cost sources) ► An extra 2,000 Mtpa is available from low to medium cost sources There is a very large global surplus of CO2. CO2 available from lower cost sources is likely to supply the majority of near-term reuse demand growth. Current Demand and Supply for Bulk CO2 Demand for bulk CO2 (0.8%) Remaining supply of CO2 (99,2%)

Existing Bulk CO 2 market: 80 Mton

Existing Industrial Uses of CO 2 Enhanced Oil & Gas Recovery Urea fertiliser production ‘Captive‘ use Food processing, preservation and packaging Beverage Carbonation Coffee Decaffeination Pharmaceuticals Horticulture Fire suppression

Existing Industrial Uses of CO 2 Winemaking Pulp and Paper processing Water Treatment Inerting Steel Manufacture Metal Working Electronics Pneumatics

Emerging Industrial Uses of CO 2 Enhanced Coal Bed Methane Recovery Enhanced Geothermal Systems (using CO2 as a working fluid) Power Generation with CO2 as a working fluid Polymer Processing Algal bio-fixation and bio-fuel production Bauxite residue processing Carbonate mineralisation (aggregate production) CO2 concrete curing

Industrial Uses of CO 2 by potential future demand EXISTING USES Current non-captive CO 2 demand (Mtpa) Future potential non-captive CO 2 demand (Mtpa) Enhanced Oil Recovery (EOR)50< Demand < 30030< Demand < 300 Fertilizer – Urea (Captive Use)5 < Demand < 30 NEW USES Future potential non-captive CO 2 demand (Mtpa) Enhanced Coal Bed Methane Recovery (ECBM)Demand >300 Enhanced geothermal systems – CO 2 as a working fluid5< Demand <30 Polymer processing5< Demand <30 Algal Bio-fixation>300 Mineralisation Calcium carbonate & magnesium carbonate & Sodium Bicarbonate >300 CO 2 Concrete Curing30< Demand <300 Bauxite Residue Treatment ('Red Mud’)5 < Demand < 30 Liquid Fuels Renewable Methanol>300 Formic Acid>300

15 TechniekProductPotentie Directe inzet CO 2 in delfstoffenwinning (EOR, EGR en ECBM) Fossiele brandstoffen (methaan/ kolen)  30 – 60 Megaton (= totaal potentieel CO 2 voor EOR / EGR in Nederland)  35 Mton per jaar in de gehele Noordzee Gebruik CO 2 in KassenGewassen1,0 Megaton Directe inzet CO 2 in frisdrank/ food en super kritische oplosmiddel n.v.t.0,1 Megaton CO 2 als grondstof voor algenbiobrandstoffen in combinatie met chemicaliën en food/ feed Megaton Omzetten CO 2 tot brandstofMethanol, Syngas, Biodiesel e.d.2 Megaton CO 2 als grondstof voor (organische) chemicaliënVerbeteren Ureum opbrengst 1 Megaton Overige chemicaliën (met name carboxylaat route) CO 2 als grondstof voor polymerenpolycarbonaten en polyolen (carbonaat route) CO 2 als grondstof voor anorganische materialenbouwmaterialen (cement, toeslagmateriaal) 1,5 Megaton Totaal ~ 7 Mton per jaar

Key Findings 1.The current and potential demand for CO 2 reuse is limited compared to industrial emissions 2.Reuse has the potential to provide a moderate revenue stream for near-term CCS demonstration projects. (Timing issue!). 3.EOR will remain the dominant form of CO 2 reuse in the short to medium term due to its maturity and large-scale use of CO 2. EOR has a role to play in supporting the large-scale demonstration of CCS. 4.Most emerging reuse technologies have years of development ahead before they reach the technical maturity required for deployment at commercial scale.

Key findings 5.CO 2 reuse can tial role to play in supporting the demonstration phase of CCS development in the absence of strong carbon prices. However that initial role becomes less important as and when the cost of emitting carbon rises. 6.Bulk CO2 market prices are likely to fall in the long-term as and when restrictions on CO2 emissions are introduced CO2 reuse can play an important role in supporting the demonstration phase of CCS. However, this role becomes less important in the long-term and as the cost of emitting carbon rises.