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Praxair’s OTM Solid State Combined

Reformer – A Modular Syngas Generator

PIOGA Technical Conference

Seven Springs Mountain Resort,

Champion, PA

August 23 – 24, 2016

OTM

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OTM – How it works:

Solid State Combustion Driven Air Separation and Compression

Dual phase

dense layer

Cross Section High

Pressure

Fuel

Porous support Active layers

Electrons

Pure

Oxygen

Low

Pressure

Air

950-1000oC

Oxy-

combustion

Product

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Step Change OTM Syngas Technology

Combined reforming in a single integrated efficient package

Primary Steam

Methane Reformer (SMR) Air Separation

Unit (ASU)

Secondary AutoThermal

Reformer (ATR)

Multi-Process

Combined

Reforming

O2

Heat OTM tube

ASU + ATR

Air

NG + Steam Syngas

Partially Reformed Syngas

(H2, CO, CO2, CH4, H2O)

Primary

reformer (SMR)

O2

O2

Benefits of OTM Lower capex

• 3 unit ops in 1 (SMR

+ ASU+ATR)

• Modular design

Lower opex / NG • High quality syngas

• Utilizes tail gas

Significantly reduced

GHG emissions

Optimal fit with scale

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Integrated Combined Reformer Panel Array

Combined reforming in a single pass

ceramic membranes

reformer

OTMs

Reformers

NG + Steam

to reformers

Product

Syngas

Thermal integration

Multiple Panels Back to Back

Facilitate Thermal Integration

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Panel Array Scale-up

Single Panel

Double Panel

Quad Panel

0.5 bpd

5000 scfd NG

2 bpd

20,000 scfd NG

8 bpd

80,000 scfd NG

Panels number-up to meet target capacity

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Modular System Scale-Up

Scale-up simplified by numbering up repeatable modular elements

Modular System

Design

Furnace “Pack”

Single Furnace “Train”

Ceramic and Reformer

Panel Array

ceramic membranes

reformer

Repeating elements facilitate mass

manufacturing Panels number-up to meet

target capacity 10 – 20 panels per pack

Wide range of train capacities (200 – 800 BBL/d)

by varying panel design and number of packs Entire plant arrives in prefabricated skids & modules

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Robust System Operation

No ceramics failures through 44 week torture test!

Site

power

failure

Month 1 2 3 4

Stand-by

Operating

OT

M

Process

Trips

Process Starts

Deep

thermal

cycles

■ 44 Week operating campaign

■ Site NGSyngas

■ 50,000 scfd Syngas

■ +150 on/off syngas cycles

■ Multiple deep thermal cycles

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Technology Readiness

Achieved commercial ceramic performance targets

– Extraordinary progress on flux, strength, creep life, degradation

– Robust glass-ceramic seals

Proved unique combined reforming process

– Demonstrated at single and multi-panel levels

– Robust to system-start up, shut-down, trips, and transients

On-Track with Supply Chain and Cost Reduction

– Tube manufacturing capacity increased to 8 MM scfd syngas/yr

– Qualifying external parties for high volume substrate manufacturing

– Shops qualified to manufacture panel array modules

– Delivering on key capital cost reduction targets

Ready for industrial scale demonstration

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Large Methanol Economics with OTM

Joint evaluations with major licensor and producer

Greenfield methanol plants: 1000 – 3000 metric tons/day

But world scale methanol (280 MMSCFD) too large for OTM today …

SMR + ATR + ASU (CR)

SMR

CO2 emissions Base +16% NG Consumption Base +13% Operating cost Base +7% Capital investment Base -9%

15 yr IRR, % 14.1% 14.9% Net income*, $MM/yr 82 84

OTM CR

-29% (142,000 t/yr) Base

-4% ($5 MM/yr) -18% ($175 MM)

18.4% 113

Conventional IRR’s within 1%

OTM achieves efficiency of a combined reformer without an O2 plant

Enhances project returns by 4% and net income by $30 MM/yr

*3000 mT/d; MeOH @ $350/mT

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Small GTL Prospectus

OTM provides step change economics

– $20/bbl lower production cost

– Lower “oil price threshold” for GTL projects based on gas – liquid spread

– Projects viable when SMR and ATR are not

Projects are manageable scale, cost and risk but….

Small GTL market is developing slowly

– First projects are nearing completion

– Low oil prices, high capital cost and technology risk have slowed project

development

– Expect improved market conditions as these headwinds abate

Meanwhile…Establishing channels to market with stakeholders

– “Back end” technology licensors and equipment suppliers

– Engineering and fabrication companies

– Companies that are already developing projects, working with end customers

Small GTL is right sized for early term commercialization

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OTM Economics for GTL

Flare gas and stranded gas – compelling early opportunities

SMR

OTM*

$4/MMBtu

$20/bbl ∆ confirmed by GTL stakeholders

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60

80

100

120

140

160

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Equ

iv. c

rud

e o

il, $

/BB

L

BBL/d

$0 Flare gas

$2 Stranded gas

$4 Pipeline gas

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Next Milestone - Commercial Reference Plant

Modular shop fabricated syngas Generator for a range of applications

8 MM scfd syngas at a

Praxair HYCO facility

Platform for….

80 mtpd MeOH

5 MM scfd H2

200 bpd GTL

Demonstrates key

technology elements at scale

Design and operational data

Exercises ceramic and

system supply chain

Engaged specialty equipment

suppliers, fabricators,

technology and engineering

firms

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Mid Term Ambitions…

60 MM scfd syngas

Platform for….

600 mtpd MeOH

40 MM scfd H2

1500 bpd GTL

Maximize shop fabricated

modular content

Mass manufactured ceramic

components identical to

smaller scale systems

Benefits of modular membrane systems extends to larger scales

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Acknowledgements

This material is based upon work supported by the Department of Energy under Award Number DE-FE26-07NT43088. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and options of authors expressed herein do not necessarily state or reflect those of the United States government or any Agency thereof.

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