1. Impacting Your Business Clean Energy Systems & Green Hydrogen
Purpose of preso is to identify customer needs & drivers, present items of most interest to them, introduce customers to the company,products, applications, show differentiation, identify next steps
Confidential Property of Proton Power, Inc.
Tel: (865)
Fax: (865)
Proton Power, Inc.
487 Sam Rayburn Parkway
Lenoir City, TN 37771

2. Cellulose To Hydrogen Power (CHyP)
…And Make This…
We Take This…
Electricity
Liquid Fuels
Water
Heat
Biochar
Energy
Crops
MSW
Woody
Waste
In A Way That Is
Carbon Negative

3. The Proton Power Difference…
Inexpensive Hydrogen From Proton Power

4. How The CHyP System Works
Biomass processing system prepares feedstock
45% maximum moisture content – 6-12mm chip sizes
Biomass broken down in pyrolysis process in CHyP
Heated to 1000C in absence of oxygen
Syngas cleaned by recirculating through incoming biomass
Tars, particulates removed
Syngas and biochar exit the CHyP
~96% syngas, ~4% biochar
Lignocellulosic biomass: Plant biomass that is composed of cellulose, hemicellulose, and lignin. The carbohydrate polymers (cellulose and hemicelluloses) are tightly bound to the lignin. Lignocellulosic biomass can be grouped into four main categories: agricultural residues (including corn stover and sugarcane bagasse), dedicated energy crops, wood residues (including sawmill and paper mill discards), and municipal paper waste.
Hemicellulose: A hemicellulose is any of several heteropolymers (matrix polysaccharides), such as arabinoxylans, present along with cellulose in almost all plant cell walls. While cellulose is crystalline, strong, and resistant to hydrolysis, hemicellulose has a random, amorphous structure with little strength. It is easily hydrolyzed by dilute acid or base as well as myriad hemicellulase enzymes.
Measured the output of NO2 and other standard compounds
No bad chemicals in output gas stream  All of bad stuff is trapped into the biochar
Thought that we might have an issue with sulfur (H2S) with switchgrass, but not an issue
Typical tar content in conventional syngas ~4%  With CHyP, it’s ~1.1%
Tars eliminated via a proprietary catalytic process
Exploring use of waste gas recovery

5. Advantages Of The CHyP Process
65% H2, 30% CO2, <5% CO in syngas
Highest hydrogen content of any syngas
Up to 45% biomass moisture content acceptable
No need for expensive and energy-intensive drying process
Insignificant amounts of tars, particulates in syngas
No need for expensive and energy-intensive clean-up
~96% syngas, ~4% biochar
High quality biochar is valuable co-product
One tonne of biomass yields 150 kg of hydrogen
5x the yield of most competitors
1 patent granted, 8 patents in process
This is different than anything else
Lignocellulosic biomass: Plant biomass that is composed of cellulose, hemicellulose, and lignin. The carbohydrate polymers (cellulose and hemicelluloses) are tightly bound to the lignin. Lignocellulosic biomass can be grouped into four main categories: agricultural residues (including corn stover and sugarcane bagasse), dedicated energy crops, wood residues (including sawmill and paper mill discards), and municipal paper waste.
Hemicellulose: A hemicellulose is any of several heteropolymers (matrix polysaccharides), such as arabinoxylans, present along with cellulose in almost all plant cell walls. While cellulose is crystalline, strong, and resistant to hydrolysis, hemicellulose has a random, amorphous structure with little strength. It is easily hydrolyzed by dilute acid or base as well as myriad hemicellulase enzymes.
Measured the output of NO2 and other standard compounds
No bad chemicals in output gas stream  All of bad stuff is trapped into the biochar
Thought that we might have an issue with sulfur (H2S) with switchgrass, but not an issue
Typical tar content in conventional syngas ~4%  With CHyP, it’s ~1.1%
Tars eliminated via a proprietary catalytic process
Exploring use of waste gas recovery
Low Capital, Production Costs  Excellent ROIs

6. Additional Benefits Of CHyP
Cellulosic fuel is renewable and sustainable
Process is carbon neutral or negative
Continuous operation
CHyP system can provide energy all ways energy used: heat, electricity, and liquid fuel
Small footprint allows remote locations
Hydrogen on-demand – no need for storage
Systems are scalable upward from 250 kwe
A Renewable Energy System That Makes Sense

7. electricity project financials

8. Electricity 1200 kwh per tonne of biomass (measured bone dry)
Combustion product is mostly water
CHyP syngas output can be varied for genset operation
40% H2 / 40% CO / 10% CH4
Energy content up to 400 Btu/scfm – lowers genset derate
Systems scalable upward from 250 kw
Have to derate gensets by about 30% with 65% H2 mix

9. 5MWe Proton Power System
5M facility: 10k ft2 building, 1 acre of land, 22 – 250kw CHyPs

10. Project Scope Included Not Included
CHyPs
Natural Gas Gensets
Two-Stage Biomass Reduction
3 Day Biomass Storage
Biochar Collection & Removal System
Controls
Biomass, Biochar Conveyors & Hoppers
Nitrogen Generation System
Pneumatic Compressor System
Buildings For CHyP Units, Gensets
Valves, Diverters, Etc. Included
Utility Interconnection Equipment
Installation
Startup and Commissioning
System Operation Training
Site Preparation
Tractors, Loaders, Forklifts, etc.
Fees and expenses associated with the application and/or qualification process for permits, approvals, and/or licenses
Sales taxes, import taxes, tariffs, duties
Financing costs

11. System Price Vs. System Size
Economics
Smaller Systems Penalized:
Redundant CHyPs
Redundant Gensets
Biomass equipment not downwardly scalable
Solutions:
Use small systems for base loads with no redundancy
Buy pre-processed feedstock
Size Matters!

12. Production Cost Vs. System Size
Economics
Smaller systems penalized (again) due to labor component not downwardly scalable
Solutions:
Use existing manpower to run CHyP systems
Better where labor rates low
Used “Conservative” manpower recommendation
$40/tonne biomass cost
$25/hr labor rate
24/7 operation
Parasitic electricity is produced by CHyP – net output of system is “System Size”
Labor Costs Drive Production Costs

13. Biomass Cost Has Significant Impact
ROI Vs. Biomass Cost
Economics
As expected, biomass cost is major determinant of financial performance
Solutions:
Locate close to biomass source
Lock in long term agreements
Best when biomass is a byproduct of a manufacturing process and has a disposal cost
No incentives included
Assume 100% uptime
$350/tonne income for biochar
Biomass Cost Has Significant Impact

14. ROI Vs. Electricity Rate
Economics
As expected, electricity rate is major determinant of financial performance
Solutions:
Base load to offset retail rate without tying to grid
Locations with high electricity rates more attractive
Locations with high incentives more attractive
No incentives included
Assume 100% uptime
$350/tonne income for biochar
Electricity Rate Has Significant Impact

15. Investment Tax Credits Production Tax Credits
Incentives – U.S.
Economics
Grants
Investment Tax Credits
Production Tax Credits
Open-loop: $0.011/kwh
Closed-loop: $0.023/kwh
If construction begins by 12/31/13
Renewable Energy Credits
Loan Programs
Source:

16. ROI Vs. Biomass Cost (w Incentives)
Economics
No incentives included
Assume 100% uptime
$350/tonne income for biochar
Note: Production tax credit of $0.023/kwh assumed
Production Tax Credit Doesn’t Help Much

17. ROI Vs. Electricity Cost (w Incentives)
Economics
No incentives included
Assume 100% uptime
$350/tonne income for biochar
Note: Production tax credit of $0.023/kwh assumed
Production Tax Credit Doesn’t Help Much

18. Conclusions Works best when: Cheap source of biomass
Economics
Works best when:
Cheap source of biomass
Expensive electricity
Larger systems
Cheap labor or existing personnel
Use to serve a base electrical load
Can get by with no redundancy (small systems)
Location with high incentive programs
Always check first to see if diesel supplementation is an alternative

19. applications: DIESEL SUPPLEMENTATION

20. Diesel Supplementation
60% reduction in diesel consumption
Reduced diesel exhaust pollutants, too
Best financial return
Paybacks < 3 years
No new gensets required
No redundant gensets required

21. System Price Vs. System Size
Economics
Smaller Systems Penalized – but not as much as with new gensets:
Biomass equipment not downwardly scalable
Solutions:
Buy pre-processed feedstock
Size Still Matters!

22. Production Cost Vs. System Size
Economics
Smaller systems penalized (again) due to labor component not downwardly scalable
Solutions:
Use existing manpower to run CHyP, biomass systems
Better where labor rates low
Used “Conservative” manpower recommendation
$40/tonne biomass cost
$25/hr labor rate
24/7 operation
Parasitic electricity is produced by CHyP – net output of system is “System Size”
Labor Costs Drive Production Costs

23. Excellent ROIs At Range Of Biomass Costs
ROI Vs. Biomass Cost
Economics
Biomass cost is not a major determinant of financial performance
Excellent ROIs over a wide range of biomass costs
No incentives included
Assume 100% uptime
$350/tonne income for biochar
Excellent ROIs At Range Of Biomass Costs

24. Diesel Cost Has Impact, But ROIs Good
ROI Vs. Diesel Cost
Economics
Diesel cost has moderate impact on financial performance
But, financial performace good – even at low rates
No incentives included
Assume 100% uptime
$350/tonne income for biochar
Diesel Cost Has Impact, But ROIs Good

25. applications: SYNTHETIC FUELS

26. Synthetic Fuels One set of CHyPs makes hydrogen
One set of CHyPs makes bio-oil
Hydrotreater: Hydrogen used to upgrade bio-oil
Hydrocracking, distillation makes liquid fuels

27. 4.8M Gal/Yr Synthetic Fuels Facility
Biomass Storage
Biomass Transfer
CHyP Syngas
Production
Green Diesel
Storage & Loading
Biochar Storage
& Loading
Synthetic Fuels
Production

28. Project Scope Included Not Included
CHyPs
Synthetic Fuel Hydroprocessing System
Two-Stage Biomass Reduction
3 Day Biomass Storage
Biochar Collection & Removal System
Controls
Biomass, Biochar Conveyors & Hoppers
Nitrogen Generation System
Pneumatic Compressor System
Buildings For CHyP Units, Synthetic Fuel System
Liquid Fuel Storage & Loading Facilities
Valves, Diverters, Etc. Included
Installation
Startup and Commissioning
System Operation Training
Site Preparation
Tractors, Loaders, Forlifts, etc.
Fees and expenses associated with the application and/or qualification process for permits, approvals, and/or licenses
Sales taxes, import taxes, tariffs, duties
Financing costs

29. System Price Vs. System Size
Economics
Smaller Systems Penalized:
Hydroprocessing equipment not very downwardly scalable
Solutions:
Paybacks, ROIs will still likely be good
Size Matters!

30. Production Cost Vs. System Size
Economics
Smaller systems penalized (again) due to labor component not downwardly scalable
Solutions:
Financial hurdle rates, budget drive the decision
Used “Conservative” manpower recommendation
$40/tonne biomass cost
$25/hr labor rate
24/7 operation
Parasitic electricity is produced by CHyP – net output of system is “System Size”
Labor Costs Drive Production Costs

31. Biomass Cost Impact Not Significant
ROI Vs. Biomass Cost
Economics
Financial performance good at varying biomass costs
Suggestions:
Locate close to biomass source
Lock in long term agreements
No incentives included
Assume 90% uptime
$350/tonne income for biochar
Biomass Cost Impact Not Significant

32. Diesel Fuel Rate Impact Not Significant
ROI Vs. Diesel Fuel Rate
Economics
Financial performance good at varying diesel costs
Suggestions:
Know whether your income will be based on retail rate or wholesale rate – impacts the size of system that you select
No incentives included
Assume 90% uptime
$350/tonne income for biochar
Diesel Fuel Rate Impact Not Significant

33. Incentives – U.S. RIN (Renewable Identification Number)
Economics
RIN (Renewable Identification Number)
Based on renewable content of process
CHyP: 1.7 RINs per gallon
RIN value ~ $0.75/RIN (Mar 2013)
CHyP RIN value = $1.275/gal
USDA grants and loans
Renewable fuel tax credits
30% tax credit over 10 years
Additional incentives vary state-to-state

34. ROI Vs. Diesel Cost (w Incentives)
Economics
No incentives included
Assume 100% uptime
$350/tonne income for biochar
Note: 1.7 RINs/gal, $0.70/RIN, 90% RINs sold
RINs Make A Big Difference

35. ROI Vs. Diesel Cost (w Incentives)
Economics
No incentives included
Assume 100% uptime
$350/tonne income for biochar
Note: 1.7 RINs/gal, $0.70/RIN, 90% RINs sold
RINs Make A Big Difference

36. Conclusions For SynFuels Plant
Economics
Works best when:
Larger systems
Income based upon retail price of liquid fuels

37. Summary
The Bigger, The Better
Synfuels projects are high return
Choose Diesel Supplementation vs. CHyP/NG Genset for electricity generation whenever possible
CHyP/NG Genset electricity projects can generate good returns under the right circumstances

38. questions/discussion

39. Biomass to Hydrogen Power Clean Energy Systems & Green Hydrogen
Thanks For Your Time And Interest
Biomass to Hydrogen Power Clean Energy Systems & Green Hydrogen
Purpose of preso is to identify customer needs & drivers, present items of most interest to them, introduce customers to the company,products, applications, show differentiation, identify next steps
Tel: (865)
Fax: (865)
Proton Power, Inc.
487 Sam Rayburn Parkway
Lenoir City, TN 37771