1. Upgrading Price

2. Goal Determine Cost to convert syngas to hydrogen with this process (on per kg of produced h 2 basis) Must consider Capital to build the process and Operating expenses, but… – Capital is a one time expense – Operating costs occur every year

3. Determine Capital & Op. Costs You need to add the rest of the equipment (and utility requirements) per your design Capital Cost $5.2 Million

4. Total Yearly Operating Costs Chemecon adds Labour, etc. to run process See “Profitability” Sheet $4.3 Million Per year – from year 4 and beyond

5. Yearly Cost – including capital One common way to account for the Capital is to assume you depreciate it over a 10 year period. You pay for 1/10 th of the capital every year. Thus, yearly cost is: – $4.3 Million + 1/10 ($5.2 Million) = $4.82 Million

6. Cost of H2 500 kg/hr of H 2 is – 24 hr/day * 365 day/yr * 0.95 % uptime = 4.1 Million kg/yr Cost to convert syngas to H2 is: – 4.1 MM kg/yr / 4.82 $ MM /yr = $0.86 / kg of H 2 Reality check! Question, if most H2 is generated from natural gas, and bulk H 2 sells for between $0.32 to $0.75 / Std Cu M, do we have a competitive process?