TSI and CO2 Market Report

Transcription

Carbon Management Technology Conference (CMTC Nov. 2015)
EOR
Sequestration
11/17/2015
Confidential Information
The contents are strictly confidential and are not for any unauthorized person
Sudhir Brahmbhatt, Ph.D., MBA
Providing Innovative and cost effective solutions to the industry
1
Topics Covered
CO2 Gas
- A high profile Greenhouse gas and valuable market commodity
US CO2 Market - A changing Landscape
- Suppliers in US, CO2 Applic., CO2 market Opportunities
- CO2 applications in the market
US Regions and CO2 Market
- Market, Key Drivers and End Users
- CO2 supply capabilities, Regional Distribution Capabilities
Commercial Aspect:
- Market Pricing for US Region as a function of Volume
used by the end users
Business Options - Options and ROI calculation
- Notes on Economic Analysis
References
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2
Technology services Incorporated: The Company
Highlights:
Expert in Industrial gases applications in
>Chemical Industry, >Environmental Industry >Pharma and Biotech Industry
>Metal Industry
>Pulp & Paper Industry
>Cryogenic Applications
Industrial gases related experience more than 35 years with top 100 corporations.
More than 25 patents in a variety of industries, Commercialized new concepts
successfully with very attractive ROI
Have developed variety of markets from small portfolio to large no of clients.
Work with end users very closely to understand their needs and prepare
solutions to their needs.
Our Services:
Technology Support for productivity improvements, Yield increases in
Support in Environmental, Chemicals, high temperature and metal industry
in productivity gain, meet EPA regulation
Pharma/Biotech, In processes such as fermentation, Lyophilization,
Deoxygenation, Support in Global pharmacopeias requirements.
Creating Innovative ways to optimize operations. Premier Consulting
Add value to your products.
Contact Information:
Technology Services Incorporation, 1700 Country top Court,
Glencoe, MO 63038 636-458-1775 (o), 314-409-1120 (cell),
636-273-6093 (Fax), [email protected],
www.TSInc-US.com
11/17/2015
3
TSI and CO2 EMISSIONS
>Average coal plant today "generates 3.5 Million tons of CO2
per year
>In the U.S., the Obama administration has set a goal under
the Clean Power Plan to slash CO2 emissions from existing
coal-fired power plants 30 percent below 2005 levels by
2030.
>In the U.S. alone, burning coal emitted 1.87 billion tons of
CO2 in 2011, according to the U.S. Energy Info. Admin.
Worldwide, coal-burning released 14.4 billion tons of CO2
in 2011.
> CO2 emissions from U.S. electricity
generation by source, 2014
Million
metric tons
Coal
1,562
Natural gas
444
Petroleum
23
3
Other
11
Total
2,043
Source
Share of
total
76%
22%
1%
<1%
Coal generates 44% of our electricity, and is the single biggest air polluter in the U.S.
Coal pollutes when it is mined, transported to the power plant, stored, and burned
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US Coal Fired Power plants:
5
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CO2, A changing Landscape – Global Perspective
-CO2 is both a high profile greenhouse gas and a valuable market commodity
-This product is found naturally from underground wells
-It is also emitted from Fossil Fuel burning industrial plants
-Sourcing CO2 in US:
>For 2010 total US Merchant CO2 production capacity was
40,000 tpd
>Most of the Merchant CO2 is now from Ethanol plants.
>Ammonia plants are expected to continue to lag as No.
of plants shut down to high NG prices in 2002 onward.
This could change due to low NG price now.
>Ethanol plants continue to be dominant source of CO2
supply.
The current global demand
For CO2 is estimated at 80Mtpa based on 2010
data
•
Of this 80Mtpa, at least 50Mtpa is utilized for
EOR, almost exclusively in North America.
•
The remaining 30Mtpa represents the global
demand of all other uses, predominantly the
mature industries of beverage carbonation
and food industry uses.
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The future demand
Estimate (for the year 2020) for the short-listed
reuse technologies is 140Mtpa, including EOR.
This estimate is based on a predicted growth of
current technologies such as EOR and urea
fertilizer and the implementation and
commercialization of demonstration projects for the
remaining technologies in line with their prospective
development timeframes.
Ref: SRI Consulting, March 2010, Chemical Economics Handbook 2010
6
CO2 Supplies in US
Suppliers in US:
Major CO2 suppliers and distributors are unique as they commonly do not produce the gas.
• Linde is the largest supplier of CO2 in US with 25% of total 27,000 tpd produced.
• Fullerton, NY Sunoco ethanol plant started in 2010 producing 600 tpd of CO2 and supplying to Food,
beverage, chem. manufacturers including dry ice to the industry.
• Praxair, Airgas, and Air Liquide follow Linde.
• Airgas is the largest producer and whole sale distributor of dry ice in US.
• EPCO, recently (2014) purchased by Air Products, is large specialized producer with 10% market
share.
• Pain Enterprise, Flo CO2, and Continental Carbonic together contribute 22% in market share. Matheson
Trigas bought Continental Carbonic in Feb 2014.
• 75% of CO2 liquefier plants built in past 10 years are owned by small specialized producers.
For 2010 total of 40,000 tons per day of CO2
was the capacity. Two third, 27,000 tpd was
produced and distributed in the market.
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TSI and CO2 Applications
Carbon Dioxide Supplies And Users
Key Applications: For Dry Ice
- Gaseous CO2: Supplied by Pipeline
- Liquid CO2 is supplied by Merchant Channels
such as tankers and Cylinders to a wide
variety of industries.
>Demands are steady for :
- Food and Beverage Applications
- Laser production and welding
- Dry ice
- Pharmaceutical Industry
- Green House Gas
>Demand has surged and will remain strong in:
- Enhanced Oil recovery using pipeline CO2
consuming 177,000 tpd of CO2 to extract
additional Oil from reservoirs
-Food Industry: Meat processing, Short term food
storage, distribution In flight catering, R & D
-Dry ice blasting: surface cleaning technique, a gentler
and green process.
-Pharma and Biotech Industry
As a note:
-In Midwest region, Illinois based Continental Carbonic
produces 1400 tpd of Liquid CO2 where 80% of this
product is converted to and sold as dry ice. It has 8
production facilities and 31 distribution sites. Matheson
Trigas, a major industrial gases company in US,
recently purchased Continental Carbonic gaining
market share in dry ice business. This will also offer
organic sales growth to Continental Carbonic as
Matheson market share is diverse that includes
welding, specialty gases and electronics.
8
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Some Applications of CO2 by Industry
Manufacturing and Construction Uses:
>Carbon dioxide is used on a large scale as a shield gas in MIG/MAG welding, where the gas protects the
weld puddle against oxidation by the surrounding air. A mixture of argon and carbon dioxide is commonly
used today to achieve a higher welding rate and reduce the need for post weld treatment.
>Dry ice pellets are used to replace sandblasting when removing paint from surfaces. It aids in reducing
the cost of disposal and cleanup.
Chemicals, Pharmaceuticals and Petroleum Industry Uses:
>Large quantities are used as a raw material in the chemical process industry, especially for methanol and
urea production.
Rubber and Plastics Industry Uses:
>Flash is removed from rubber objects by tumbling them with crushed dry ice in a rotating drum.
Food and Beverages Uses for Carbon Dioxide:
>Liquid or solid carbon dioxide is used for quick freezing, surface freezing, chilling and refrigeration in
the transport of foods.
>In cryogenic tunnel and spiral freezers, high pressure liquid CO2 is injected through nozzles that convert
it to a mixture of CO2 gas and dry ice "snow" that covers the surface of the food product. As it sublimates
(goes directly from solid to gas states) refrigeration is transferred to the product.
>Carbon dioxide gas is used to carbonate soft drinks, beers and wine and to prevent fungal and
bacterial growth.
>Liquid carbon dioxide is a good solvent for many organic compounds. It is used to de-caffeinate coffee.
>It is used as an inert “blanket”, as a product-dispensing propellant and an extraction agent. It can also
be used to displace air during canning.
>Supercritical CO2 extraction coupled with a fractional separation technique is used by producers of flavors
and fragrances to separate and purify volatile flavor and fragrances concentrates.
>Cold sterilization can be carried out with a mixture of 90% carbon dioxide and 10% ethylene oxide, the
carbon dioxide has a stabilizing effect on the ethylene oxide and reduces the risk of explosion.
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TSI and CO2 & Applications
•Medicine: In medicine, up to 5% CO2 is added to pure oxygen. This helps in provoking breathing and to
stabilize the O2/CO2 balance in blood. SCCO2 applic. in sterilization of drugs and Extraction.
Global CO2 market in Pharma & Biotech is $85 mm, US is $32 mm and growing.
•CO2 Laser: The CO2 laser, a common type of industrial gas laser uses CO2 as a medium. Welding: It
also find its use as an atmosphere for welding.
•Oil Wells: Carbon dioxide is commonly injected into or next to producing oil wells to draw lost traces of
crude oil .
•Metals Industry: It is used in the manufacture of casting influences so as to enhance their hardness.
•Fumigation: Used as a fumigant to increase shelf life and remove infestations.
•Enhanced Oil Recovery:
Heightened interest in US in Enhanced Oil Recovery (EOR) using tertiary techniques such as EOR
using CO2. However, Laid in cost for using CO2 in EOR projects is driven by distance from its source to
application site.
Danbury resources, a key CO2 supplier in Texas via pipeline sells 400 mmscf per day CO2 for EOR
in Southeast region.
Major limitation in other areas of US is CO2 supply in scattered EOR project locations.
Carbon Sequestration and storage:
Syngas and Power projects for many regions of US and Canada will provide CO2 for EOR services
in years to come.
Oklahoma state has numerous EOR projects where CO2 is pipelined from Bravo Dome and others
are supplied by ammonia where CO2 is byproduct.
This is new area and it will take years before its activities are at peak.
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Waste CO2 to Valuable Products from Algae
Separated CO2 from Flue emission can be further:
-Purified, compressed, and sold to commercial gas
clients
-Used in agriculture e.g. algae farming.
Algae has found its usage in a variety of industries
as follows:
- Fuel: EPA 2011 renewable fuel std. volume
requirements at 1.35 billion gallons of advanced
biofuels. And the U.S. Navy's goal is to operate at
least 50% of its fleet on clean renewable fuel
sources by 2020. Achieving this objective will
require a significant use of biofuels.
-Renewable Oil Markets: This area is focused on
addressing the needs of chemicals,
nutritionals, and skin and personal care
markets using algae.
-Chemicals: In 2009, about 9 million metric tons of palm
kernel and coconut oils were consumed globally
for food and industrial applications such as
laundry detergent, soap, and shampoo, functional
fluids such as airplane de-icing fluids, Algae oils
are a natural fit for these markets.
-Nutritionals: The $2 trillion packaged food industry is
actively seeking more natural, sustainable
sources of fiber and healthful fats without
compromising value, quality, taste, or nutrition.
Commercializing a suite of microalgaederived food ingredients is in progress.
-Health Sciences: Target market is global skin and personal
care market, which is estimated at $323 billion. Within
this market, focus area of business are
(1) Toiletries, makeup, and hair care, estimated at $239
billion
(2) skin care, estimated at $84 billion.
Consumers are staying active and living longer, and
their desire to appear youthful will continue to drive
growth in the beauty and personal care markets.
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CO2 Market
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12
TSI and CO2 Market for the CO2 Manufacturer
CO2 Market Opportunities – Should it be Wholesale Raw Gas or Direct
Marketing to Consumers?
• Some decades back, in the United States, many of the sources (i.e. ethanol,
ammonia plant) operators and owners were and are the same parties who
owned operated the CO2 plant near the raw gas source operation and
marketed.
• Today, also numerous independents thrive in the United States, as direct
sales to consumers. Since the emergence of the major gas companies,
most of the raw CO2 is actually sold to the gas refiner – which is also the
marketing operation for the merchant CO2.
• In addition to this exception today in North America,
This direct CO2 marketing scheme is quite common in Latin America
and many other regions.
Ref: http://www.biofuelsdigest.com/bdigest/2011/11/23/carbon-dioxide-applications-%E2%80%93-a-key-to-ethanol-project-developments/
11/17/2015
13
TSI and CO2 Market for the CO2 Manufacturer
• One fact supporting direct sales of CO2 by the ethanol firm to a limited merchant
or niche market is a large margin difference between the raw gas prices to a
refiner/gas company. Raw gas prices range from $5 to $25/ton v. consumer
market prices usually averaging around $90 to $100/ton; and in some high
priced markets with little regional competition or no local supply can be $200 to
$300/ton.
• It will be necessary to evaluate the costs of production, distribution, and
overhead, initially to consider wholesale raw gas sales or direct markets.
• Further, once markets are understood, and the costs & requirements for
producing CO2 for the merchant trade is known, along with distribution; then
potential risks for direct marketing can be properly evaluated.
• Numerous cases exist, where a niche market or a specific region would make the
most sense, in terms of directly marketing the commodity – and a true opportunity
to produce much stronger revenues.
We now quickly review different US regions, their key drivers and CO2 capabilities
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14
The New England Region -Market
Key Drivers in the Region:
•
For New England Region the most important driver is the Govt. R &D as total
revenue has been steady from $67 billions to $69 billions from 2006 to 2011. Health
care and related services have grown to $66 Billion in 2011 an increase of $7 billion
since 2006. Computer, electronics and component mfg. has seen largest growth
since 2006 from $20 b to $34 billion in 2011. Chemical, Petrochemical and plastic
segment has dropped more than 40% while construction more than 20% in same five
years period. Food and beverage sector is steady $5 Billion during the five year
period.
CO2 Supply capabilities:
• No CO2 production facility in this region.
• Nearest CO2 sources for New England region are from Ethanol plants operating in New York state.
• Both CO2 plants, one EPCO Now Air Products in Madina near Canada, and other by Linde near
Albany were commissioned in 2007-2008.
• Independent CO2 distributors are -American Carbonation in Palmer, MA, - Esquire Gas Production
now Tech Air Both companies have rail receiving Terminals.
• In addition, Linde has rail depot with 500 t CO2 storage capacity for beverage grade CO2
supplied from their Volney, NY facility.
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15
The Mid-Atlantic Region -Market
Govt. R & D market in this region has grown steadily from $269 billion in 2006 to
$277 billion in 2011 roughly 3% increase. Largest potential market for gas industry.
Healthcare and related services is the second growing market that grew 10%
form 2006 till 2011. It is now $188 billion market.
Computer, Electronics and component market grew 65% from 2006 till 2011. It
was $38 billion in 2011.
In contract chemical segment shrunk to $31 billion in 2011 from $46 Billion in 2006.
The Natural gas extraction is picking up at rapid pace.
CO2 supply capabilities:
Four known CO2 plants in this region with Total Capacity of 1500 tpd of CO2. Two are in New
York both from Ethanol plants. Medina, NY plant was built by EPCO now APCI while other plant
in Albany, NY owned by Linde.
Medina plant built by EPCO also covers Canada.
Linde ships product to the region by rail and has terminals in NJ and PA. It has second LCO2
plant in Cumberland, Maryland from cogen plant.
Air Liquide has CO2 plant next to the refinery in Delaware. The plant was shut down in 2010-2011.
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16
The SouthEast Region -Market
•
Large Number of Govt. R & D in region value $403 Billion in 2011. Florida is
home for NASA Operation at Kennedy space Center, while Virginia for govt. labs
and TN for largest National lab for DOE.
• Healthcare is another driver worth $215 Billion in 2011.
• Total manufacturing is another key driver in the region, where food and beverage
is $67 billion in 2011, automotive $22 Billion, $50 billion for computer, electronics
and components.
• Construction sector has dropped 31% in 2001 from 2006 to $107 billion from $154
Billion.
CO2 Supply Capabilities:
SouthEast has large infrastructure of ASUs, 105 ASUs owned and operated by major gas companies
with total capacity of 21,000 tpd of LIN/LOX which is 27% of total installed liquid capacity in US. This
is large region with12 states and more than 80 million population.
There are 22 known and identified LCO2 production plants with total capacity of 9000 tpd. Over 75%
of CO2 is associated with Natural gas wells. Owned and operated by Danbury resources. 15 % is from
Ammonia plants and the rest from ethanol plants and refinery.
Air Gas, Linde, and Praxair are major CO2 players, and some independent sources such as Matheson
(Former Continental Carbonic) are also in this region.
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The Great Lakes Region -Market
•
•
•
•
•
•
Great lakes Region manufacturing represents very large share of the Industrial
gases market (US gas business is $16 billion in 2011)
Largest Automobile related market ($44b) in region and home for power
houses like Kraft, Kellogg, Smucker and food and beverage sector ($33b)
Healthcare and related services is also a bright spot ($148b)
Computer, electronics growing 7% and was $21b in Great lake area in 2011.
Chemicals, Petroleum, plastic sector growing 7% and was $66b in 2011.
Govt. R & D represents second largest overall market in Great lake region after
total mfg.
19 CO2 production facilities with total installed capacity of over 6000 tpd. Mainly from IL, WI, and IN.
Over last decade dramatic increase in CO2 capacity. And it is linked to number of new ethanol
plants. 75% of capacity is associated with from Ethanol plants.
APCI acquired EPCO in 2013 with four new CO2 plants in the region.
Air gas has important position in the region for CO2. Linde, Praxair have owned and operated
plants for some time now.
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18
The Plains Region Market
Key Economic Drivers in the Region:
• Agricultural segment grew 37% between 2006 and 2011 ($30b).
• Food and Beverage market size is $22b in 2011 making it largest individual
manufacturing segment by market share.
• Healthcare and Govt. R & D sector in the plains is healthy. Healthcare grew 13%
to $69b from 2006 thought 2011, while govt. services sector grew 2.1% to $99b.
• Mining, oil and Exploration grew 62% from $2.9b in 2006 to $4.7b in 2011.
• Computer and Electronic grew 38% to $20b from 2006 to 2011.
• Important source of CO2 through Ammonia plants and Ethanol plants. 5000 tpd installed capacity.
• 20 Known and identified LCO2 production facilities Operating in the region.
• 75% of CO2 capacity is from Ethanol plants and 15% is from the ammonia(NH3) plants., remaining
10% is sourced from the refineries.
• APCI with EPCO purchase now has 10 production plants competing with Praxair who was the
leader in the region before 2013. Matheson purchase of Continental Carbonic and
Air Liquide through acquisition has also increased their share in the market.
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19
The SouthWest Region -Market
Manufacturing segment is key driver with $204 billion in 2011 (pertaining to the
gas business). Largest is chemical, petroleum, and plastics sector with $65.5 billion in
2011.
Computer, Electronics, & components mfg. is second largest with $61 Billion in
2011.
The key driver for the gas industry is the govt. R & D, $183 billion with key govt.
institutions such as Los Alamos lab, Sandia National Lab.
22 known LCO2 production facilities with total Installed capacity of 6600 tpd of which 38% are sourced
from Natural gas wells compared to 75% in SouthEast Region.
Ammonia plant is the next largest source of CO2 accounting or 28% of total supply of CO2.
Petrochemicals and refining account for 22% of CO2 sourcing while remaining 12% is from Ethanol
plant, Power plant and cogen. (CO2 for EOR is excluded in analysis)
Reliant Holdings is the largest operator of CO2 merchant capacity. Linde has five CO2 plants while
Airgas owns and operates 3 facilities. Air Liquide and Praxair have access to some merchant CO2.
Continental now Matheson also has presence in this region.
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20
The Rocky Mountain Region -Market
Govt. R & D $57.4 B (in 2011) is leading the key drivers for the gas Industry.
Rocky Mountain Lab (RML) in Hamilton, Montana is the largest lab NIH has in this
region.
The Mfg. segment is $44 B ( in 2011) followed by computer and component equipment
sector $15.6 B (in 2011). The Chemicals, petroleum and plastics make up $7.9 B in
2011.
The Healthcare industry is $28.5 b ( in 2011) while Oil and mining is $12 B (in 2011).
Colorado accounts for $ 9.0 B in Mining while Wyoming mining industry is $8.8 B
The construction industry is $14 B ( in 2011) that was down by 26.6% from 2006.
11 ASUs owned by major gas companies with total capacity of 2300 TPD LOX/LIN
NORCO, large distributor owns a ASU in Boise, ID.
8 LCO2 production facilities in the region with total installed capacity of 2000 tpd of CO2. Over 50 % of
CO2 is from Natural gas processing. 25% of CO2 is from the natural wells. Remaining 25 is from Ammonia in
Wyoming and Ethanol plant in Colorado.
Significant CO2 pipelines in the region for EOR (Enhanced Oil Recovery).
Linde and Praxair are two largest CO2 players in the region. However, Ferus bought independent operator
of pure CO2 and Reliant Holding built CO2 recovery plant at only ethanol plant. Kinder Morgan Energy
partner invested $671 M in 2011 in CO2 infrastructure and expand CO2 production and 500 miles Cortez
pipeline to reach from Colorado to Eastern New Mexico.
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The Far West Region -Market
• The large significant manufacturing sector is computer, electronics, and
component market totaled $152 billion in 2011 out of which $86 B is in California
and $60.5 B in Oregon. Electronics and Semiconductor processing are large users
of gases and specialized materials.
• Healthcare and related services is also large market share of $154 billion in 2011.
• Govt. R & D sector totaled $274 billion in 2011, while Petroleum, plastics sector
totaled $41 billions in 2011.
• Oil and Gas mining sector totaled $31 billion in 2011, Alaska mining was $10.5 b
while California was $16.4 b in 2011.
• Construction shrunk down by 36% to $74.5 b in 2011 from 2006.
California has largest no. of ASUs in the region. The region has 7 merchant plants operated by Air
Liquide, with two Joint ventures one with Praxair and other with Air Products. Total liquid supply
capability by all ASUs in the region is 10,000 tpd
11 LCO2 production facilities in the region with capacity of 4500 tpd of CO2 almost all associated
with refinery H2 production except single facility operated by Airgas in Hawaii.
Praxair and Linde have similar size capacity followed by Air Liquide. Recent start of Pixley CO2
facility by Air Liquide has further increased AL presence in the region.
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22
Various Business Options for CO2 Suppliers
Business Options
Option I: Contractual relationship with Industrial Gases Company
Pros: Minimum investment by the supplier, long term contract
Cons: Typical current price can be $ 8- $10 per ton.
Comment: Contact Distributors and industrial gases companies to pursue this option.
Option II: Install pipeline to send CO2 to closest pipeline for Enhanced Oil Recovery project in the area.
Pros: Minimum investment and involvement once the CO2 is sent to the pipe for EOR and make
CO2 as a revenue stream
Cons: The pipeline cost may be prohibitive depending on the location of the main pipeline for EOR
and CO2 source.
Comment: Will require to ensure that a long term agreement is put in place with EOR. This may
generate $10 to $12 per ton of CO2.
Option III: Independent distributorship. This will require investment of capturing and testing CO2 onsite
and have delivery station to distribute the product to local distributors and demand
price >$11 per ton.
Pros: Can demand higher price that market can bear, long term contracts
Cons: Invest in capturing CO2 onsite and delivery station. May want to use third party
transportation service to deliver product.
Comment: This will require separate business line with sales and mgmt. team.
Competition: This will be competing with major CO2 suppliers such as NuCO2, Linde, Praxair, Air
Liquide, Airgas, Air Products,Matheson, and other independent distributors.
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Various Business Options for CO2 Suppliers
Option IV: Make beverage and USP grade CO2 onsite by investing and having delivery station.
Pros: Can provide excellent ROI based on New customer base and growing business
line. Long term contracts with commitments from 5 to 7 years.
Con: Will require investment, Sales team, distribution network
Comment: Separate business line and portfolio.
Competition: Airgas, Air Products, Linde, Praxair, independent distributors.
Option V: Make selectively USP grade CO2 for Pharma industry onsite by investing and having delivery
station.
Pros: Based on pharma industry intelligence, US supplies $32 mm USP CO2 to the Pharma
industry. Excellent opportunity
Cons: Will require investment to make product, Sales team, distribution network.
Competition: Major Industrial gases companies such as Airgas, Linde, Praxair, Air Liquide etc.
11/17/2015
24
Notes on Economic Analysis
•
A 300 tpd plant, the estimated cost to clean up captured LCO2 to food grade and USP grade is
$5 million, however, $6 million is used on calculation.
•
The operating cost used in calculation is 30% of revenue. This number is very conservative as
average production cost is $15 per ton for new plant, plus the cost of piping from the source and
the cost of producing CO2.
•
The price for CO2 is estimated by the field sales as stated in the analysis. If price is significantly
reduced to $30, $35 and $40 for different use rate, the ROI is 3.67. This analysis is in the
spreadsheet titled Analysis in Extreme case.
•
It is assumed that CO2 available from the power plant is 72% w/w CO2 and purified to >99%
when available as USP and Food grade for use
11/17/2015
25
Economic Analysis for Options
CO2 plant Business Analysis for Options III, IV, and V
Option II
Option III, IV, V
Extreme Case
Pipeline
Estimated Investment LCO2 purification, piping
Tanks, compressors investment
Production capability, TPD
Product spec
300.00
Industry grade
$6,000,000.00
$5,000,000.00
300.00
Beverage and USP grade
$6,000,000.00
$5,000,000.00
300.00
Beverage and USP grade
Expected ROI , Years
No of contracts
Contract length, Years
2.64
1.00
10.00
1.83
20 for 300 TPM, 16 for 100TPM, 10 for 50 TPM
5.00
3.67
20 for 300 TPM, 16 for 100TPM, 10 for 50 TPM
5.00
Distribution, $ per ton CO2 for 150 miles
Delivery Charge, $ per delivery
HAZMAT per delivery
$40.00
$90.00
$50.00
$40.00
$90.00
$50.00
$40.00
$90.00
$50.00
Tons per month, available ( 90% uptime)
Tons used
8,183.70
8,183.70
8,183.70
8,100.00
8183.7
8100
Pricing, $ per ton
$11.00
Pricing, $ per ton
$85.00
$95.00
$140.00
Pricing, $ per ton
$30.00
$35.00
$40.00
$63,015.00
$500,000.00
$250,000.00
Users , 300 tpm
100 tpm
50 tpm
Net Revenue ( Estimate) per month
Note:
$2,000,000.00
Options III, IV, V
>Option II piping, Option III,IV,V have compressors, tank investments as separate item
>Except Options I, and II, estimated investment for all options is for purification equipment to meet food grade and USP grade product
>Distribution capital not included.
>This is strictly an estimate based on best available data.
26
11/17/2015
Recommendations
TSI team can help evaluating the potential of becoming supplier of CO2 to the market
Depending on the option, TSI can support the client in developing information that can help make
sound decision. This may include:
- Regional Market study and identifying:
1. Industrial gases company that may take additional product, its contact and support in
contract negotiation if needed.
2. TSI can help finding distributor and/or delivery net work for the product
3. TSI can support in exploring opportunity in pipeline for EOR projects in the area.
4. TSI can help come up with the list of end users and their volume needs with the possible
availability date if option III, IV, or V is chosen and do the detailed market study.
5. May help secure businesses using experienced account Managers if required.
11/17/2015
27

TSI and CO2 Market Report

Transcription

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Methodologies and Robust Algorithms for Subsurface Simulators