In the region of Magallanes, in the far south of Chile, wind energy is harnessed to produce a carbon-neutral eFuel with the latest technology.
Background
What is Green Hydrogen?
The global hydrogen market is growing at a compound annual growth rate of 8%, and several governments have proclaimed ambitious plans for the H2-based economy. Hydrogen can be sustainably produced from various renewable sources and bioresources.
At the industrial level, hydrogen is produced by a procedure called electrolysis, in which water is subjected to electricity to split the H2O molecule into hydrogen and oxygen. Currently, 95% of the hydrogen produced worldwide is produced using natural gas, oil, or coal as the energy source, which results in significant CO2 emissions. It is known as “grey hydrogen” for this reason.
However, as there are no CO2 emissions during the electrolysis process when using renewable energy, the end product is referred to as “green hydrogen.” The only difference between this end product and others is how it was made.
The cost of the energy necessary to produce green hydrogen accounts for close to 70% of the total cost. Chile’s capacity to produce renewable energy thus plays a crucial significance. For instance, the Magallanes region has a high potential for producing wind power at a very competitive price because it has stable and powerful wind currents over land as opposed to other parts of the world where these are over the ocean.
The Atacama desert also has the highest levels of solar radiation in the world and can produce significant amounts of solar energy. This nation is able to produce renewable energy at a meagre cost, making hydrogen synthesis here the most affordable in the world. A study by McKinsey & Co performed recently [1] found that the green H2 industry in Chile is envisioned to be 33 times larger by 2050, leveraged by limited domestic use and then expanded by the export of renewable hydrogen fuel and some related byproducts, such as green ammonia.
The Project
In 2022, the firm Highly Innovative Fuels Global (HIF) inaugurated in Chile, near Punta Arenas, the first fully integrated plant in the world for the production of neutral CO2 fuels based on green hydrogen. The Haru Oni demonstration plant has already produced its first litres of synthetic fuels, also called eFuels.
Haru Oni is the biggest project of its kind in Latin America and one of the very first worldwide. The plant will use renewable energy from wind currents and a well-known process called electrolysis to obtain green hydrogen. The project will also capture carbon dioxide from the atmosphere and use a method of synthesis to combine the CO2 and H2 to produce eFuels, including carbon-neutral gasoline (eGasoline) and carbon-neutral Liquefied Gas (eLG).
It is vital that the new green hydrogen industry favours job creation and improves people’s quality of life. In this way, we will be providing certainty for a much more sustainable future. And Haru Oni plant has that symbolic value.
Figure 1. Magallanes is a region of uttermost natural beauty and ecological significance. Source: https://unsplash.com/es/fotos/whcZwWIhl7w
eFuels can be employed as a direct substitute for fossil-based fuels, with no changes to existing logistics, infrastructure, or engines required. The eFuel will create a way for the present infrastructure to become carbon-neutral by continuously reusing and recycling CO2.
eFuels are carbon-neutral fuels. Although they emit CO2 when used in combustion engines, they also use carbon dioxide as an input in their production, so they are climate neutral. By replacing traditional fuels, they can contribute to significantly reducing emissions in sectors that are still difficult to decarbonize, such as heavy transport by land and sea.
The plant has the capacity in this first pilot stage to produce about 350 tons of e-methanol and 130,000 litres of e-fuel per year. HIF could scale production in successive steps to reach nearly 55 million litres by the middle of this decade and about 550 million litres a few years later. Porsche will be the primary customer for fuels produced in Haru Oni.
The yearly capacity of this Chilean factory will have grown to around 550 million litres of synthetic fuel by 2026. In order to supply the demand for gasoline for use in cars with current powertrains on a global scale, approximately 2000 plants of this type would be required. The main benefit of using e-methanol or similar derivatives is that they can be stored in regular tanks or underground facilities, allowing us to compensate for fluctuations in energy production that are caused by nature without having to make the kind of significant infrastructure and logistics investments needed for BEVs, for example [2].
An Insight Into Haru Oni
The Production Process
Figure 2. The eFuel production process. Source: https://www.hifglobal.com/haru-oni
Carbon Capture
There are eight major carbon capture technologies [3], which are below:
- Pre-combustion (gas sweetening)
- Post-combustion (traditional method)
- Cryogenic
- Oxyfuel combustion
- Chemical looping
- Fuel cells
- Direct Air Capture
- Biogenic
The two most popular capture technologies are gas sweetening and post-combustion, primarily due to a large number of industrial applications in which CO2 is separated using these two. Natural gas processing facilities capture CO2 through the gas sweetening process, while power plants use post-combustion to capture the dioxide from the flue gas through regenerative solvents.
For Haru Oni, carbon dioxide is captured directly from the atmosphere or an industrial or biogenic source.
Wind & Electrolysis
Renewable electricity is used to produce green hydrogen through a process called electrolysis, which separates the hydrogen from the oxygen in the water.
Coupling renewable energy systems with hydrogen-generating electrolyzers have the potential to provide low-cost, environmentally friendly electricity and hydrogen. Using available wind and solar energy offers immense potential for hydrogen production via electrolysis. Chile has excellent potential for both wind and solar electricity and, thus, for hydrogen produced from these renewable electricity sources.
Electrolysis was discovered in the 1800s. The electrolyzer industry grew substantially during the 1920s and 1930s. Multimegawatt hydrogen production facilities that incorporated alkaline electrolyzers were developed during this time and were installed near hydroelectric plants that supplied an inexpensive source of electricity. Advanced concepts and research into electrolysis include the examination of higher pressure operation, with reduced compression in hydrogen systems, and operation at elevated temperatures to improve efficiencies.
Integrating electrolyzers with renewable energy systems can present challenges as well as unique benefits. Currently, most renewable energy systems produce power and interconnect with the electrical grid via some form of power electronics.
Wind energy can be put onto the electric power system and then transferred to the hydrogen generation point via the grid, or wind electricity can be used to coproduce hydrogen and grid electricity at the wind site; Haru Oni is an example of the latter.
The green H2 is combined with the captured CO2 to produce eFuel in a reactor through a process called synthesis. Further processing makes other carbon-neutral eFuels that can be used for different purposes. For example, eGasoline for road transport, Sustainable Aviation Fuel for air transport, and LPG.
eFuels
The carbon-neutral eFuel can be used by existing cars, trucks, ships, and aeroplanes as a complete replacement for its fossil fuel. It releases the same carbon dioxide which was initially captured and will be recaptured: a carbon recycling system.
The hydrogen-, methane- or methanol-based eFuel economy have in common the use of electricity originating from any renewable source, followed by conversion into a high-energy density fuel. The specific advantage of methanol is its liquid composition, which makes it compatible with current state-of-the-art automotive technology and biofuel-based distribution and dispensing networks.
A crucial operational characteristic of a fuel is the energy density, which (along with conversion efficiency) determines the travel distance between re-fuelling when considering a storage capacity that is sufficiently proportional to the vehicle’s dimensions. The relatively low energy density of Lithium-ion (Li-ion) batteries results in a penalty in terms of additional mass of the portable energy and, consequently, in a limited travel range.
Figure 3. Haru Oni could be a technological milestone towards producing sustainable aviation fuels. Source: https://www.openaccessgovernment.org/solar-powered-tower-for-carbon-neutral-jet-fuel-production/140187/
Applications
Hydrogen-based infrastructure is seriously being considered in EU Member States to overcome these limitations (making them potential customers of the Chilean H2). Liquid fuels at room temperature have a competitive fuel density compared to Li-ion batteries or hydrogen without the required pressurizing or cooling steps of the liquid fuel.
For example, the aviation industry is forced to reduce its carbon emissions. To do so, the fuel should be mostly renewable-based and have low lifecycle GHG emissions, hence being sustainable. Aviation fuel might be obtained via Gas-to-Liquid (GTL) process through Fischer-Tropsch (FT) synthesis. This process can be made more sustainable by lowering its carbon emissions. Adding wind power to the GTL process aims to reduce its carbon footprint.
Two promising designs are considered which have very low CO2 emissions: 1- Using Autothermal Reformer (ATR) to produce syngas and Solid Oxide Electrolysis Cell (SOEC) to produce H2 and O2; and 2- Production of syngas through electrically heated Steam Methane Reformer (E-SMR). In both designs, the addition of renewable power significantly reduces carbon emissions and increases carbon efficiency, which means increased production for the same amount of natural gas feed. By assessing the two designs based on FT production, carbon efficiency, and FT catalyst volume, it is a better choice to add renewable power to the SOEC rather than use it in an E-SMR. These designs are considered in order to help us safely transit to a low-carbon society.
The Role Of Companies
Siemens Energy & Porsche
Siemens Energy and sports car manufacturer Porsche have joined forces to build the industrial plant for the production of virtually carbon-neutral eFuel in Punta Arenas.
The Chilean project company HIF has now acquired the required environmental permits (Highly Innovative Fuels). Additionally, Siemens Energy has already begun laying the groundwork for the project’s upcoming crucial commercial phase [5].
Siemens provides the 1.2 MW PEM electrolyzer powered by wind energy, also a 3.4 MW Siemens Gamesa turbine. The carbon-neutral synthetic gasoline will be transported to Europe via a container ship, each having a loading capacity of 25,000–30,000 litres, to be used by Porsche and others for modern and classic sports cars.
Figure 4. A view from Haru Oni in Patagonia, Chile. Source: https://press.siemens-energy.com/global/en/pressrelease/construction-begins-worlds-first-integrated-commercial-plant-producing-co2-neutral
Porsche, a maker of sports cars, started the demonstration project and will use the eFuels in its own vehicles with combustion engines. Porsche was formed with a pioneering attitude, according to Michael Steiner, a member of the executive board for research and development at Porsche AG.
They thrive on invention; therefore, that’s what motivates them. In terms of renewable fuels, they regard themselves as innovators as well, and they want to advance development. This complements their well-defined overall sustainability plan. As a result, Porsche will already have a CO2-neutral balance sheet by 2030.
Global Thermostat
In April 2021, Global Thermostat (a U.S.-based DAC company founded in 2010) announced it signed an agreement with HIF to supply its direct air capture equipment to its synthetic gasoline pilot plant in Magallanes, Chile. The unit is deemed to remove up to a maximum of 250 kg of carbon dioxide per hour from the atmosphere.
ExxonMobil has invested in Global Thermostat and using its technology to deploy DAC at Haru Oni Project.
Global Thermostat makes use of porous, honeycomb ceramic monoliths that work together as carbon sponges and are bonded to dry, amine-based chemical sorbents. These carbon sponges accomplish direct CO2 adsorption from the atmosphere.
Low-temperature steam (between 85 and 100 °C) is then used to peel the captured CO2 off and collect it. It produces 98 per cent pure CO2 as its output.
There are no pollutants or any effluents produced throughout the process; just steam and power are used.
Johnson Matthey
As a leader in clean tech, including those that are critical for sustainable chemicals and fuels, Johnson Matthey (JM) disclosed an agreement to supply cutting-edge technologies, equipment and advisory services to the Haru Oni project in Patagonia, Chile. The Haru Oni project, which Siemens Energy is developing in partnership with Johnson Matthey and several other big players, including Porsche, will grow into the world’s first integrated and commercial large-scale plant to produce climate-neutral e-methanol and e-gasoline.
Advancing the production of e-fuels is an essential step in the energy transition, as the performance of e-fuels is comparable to that of gasoline and diesel, but they are made from renewable energy. As a provider of syngas decarbonization solutions, JM will get a methanol technology licence and deliver the engineering, catalyst and equipment for the ground-breaking project.
The JM-designed unit will take atmospheric carbon dioxide as a feedstock for the conversion to e- methanol. This CO2 will be recovered by direct air capture and combined with green H2 (produced from water proton exchange membrane -PEM- electrolysis). Using JM’s latest innovative catalyst, the pilot unit will further demonstrate JM’s lead in the area of green chemicals and fuels and its commitment to decarbonization and sustainability.
In Haru Oni’s initial pilot phase, the unit will be capable of producing around 900,000 L/y of emethanol as early as 2022. In two further phases, capacity is then to be increased to about 55 M L/y of e-fuels by 2024 and around 550 M L of e-fuels by 2026, sufficient for about 220,000 gasoline vehicles at 50 L use per week.
References
[2] Hannibal, W. E-fuels and Hydrogen in Mobility Conserve the Earth’s Resources. MTZ Worldw 83, 66 (2022). https://doi.org/10.1007/s38313-022-0835-3
[3] Singh, H., Li, C., Cheng, P., Wang, X., & Liu, Q. (2022). A critical review of technologies, costs, and projects for the production of carbon-neutral liquid e-fuels from hydrogen and captured CO 2. Energy Advances, 1(9), 580-605.
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