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Green Capitalism: India, August 7, 2014


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Graciela Chichilnisky will deliver a presentation on "green capitalism" in India, August 7, 2014.

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Green Capitalism: India, August 7, 2014

  1. 1. globalthermostat Company Confidential A Solution to Climate Change Business: Carbon Negative Technology Global Policy: the Green Power Fund Graciela Chichilnisky – Columbia University NY USA Green Economics: MEA IIM India August 7 2014 a carbon negative solution
  2. 2. globalthermostat Company Confidential 2 Climate & Industry Face Carbon Challenge Supply • Natural sources limited, depleting, and isolated – E.g.: CO2 EOR is concentrated in Texas • Industrial extraction processes are expensive, and provide inadequate supply Transport • Trucking and pipelines not viable for most applications Industrial Markets Food & Beverage Refrigeration & Greenhouses Carbonates Concrete / Cement Polymers Formic Acid Graphene Oil & Gas Enhanced Oil Recovery Clean-up of Natural Gas Processing Renewable Fuels Algae Biofuels Synthetic Gasoline Substantial Unmet Demand 300 320 340 360 380 400 1958 1968 1978 1988 1998 2008 CO2 PPM ≈20% increase in atmosphere in last half- century Readings hit 400ppm in 2013 for first time …but huge industrial demand for CO2 remainsunmet… …due to two critical issues Atmospheric CO2 levels rising… Critical Challenge: Profitably Harnessing Atmospheric CO2 for Productive Industrial Use – creating Abundant, Reliable, Low Cost Supply Wherever Needed
  3. 3. globalthermostat Company Confidential 3 Challenges Must be Overcome, and a Precedent Must be Set, for Governments to Reduce CO2 Emissions Governments need to standup to help mitigate their countries’ CO2 emissions Each Government is aware of CO2 emissions levels Leadership Cost Upside In addition to being able to solve the problem of atmospheric CO2 levels, a new stream of revenue is created CO2 can be resold and used for industry GT’s technology provides CO2 for the lowest cost in the world, and can do so practically anywhere, and in whatever amount desired Our technology is completely modular and easily expandable
  4. 4. globalthermostat Company Confidential 4 Business Solution CO2 is Both a Challenge to the Global Climate and a Valuable Industrial Gas • US Pentagon recognizes climate change as one of the US’ greatest security threats • CO2 used in a myriad of productive industry applications: beverages, refrigeration, chemical manufacturing, oil recovery, synthetic- & bio-fuels • Huge unmet demand due to significant shortage of CO2 for use in industry* No Prior Solution has Solved Key Challenges of Cost, Transport & Availability – offering a Carbon Negative Solution • GT technology actually decreases CO2 in the atmosphere • Current CO2 sources limited to depleting natural reservoirs & costly industrial extraction • Transportation is a key cost & logistical barrier, requiring massive pipeline infrastructure investment Global Thermostat Proven Solution Addresses Transportation, Availability & Costs • Breakthrough extraction technology protected by a robust IP portfolio • Demonstration Plants operating since 2010 • Significant industry interest from large strategics in Oil & Gas, as well as biofuels arenas • Carbon Negative solution, adding significant social and economic upside Tremendous Market Opportunity to Disrupt & Expand CO2 Market by Meeting Unmet Demand • Seeking growth equity investment to scale commercial efforts – adding resources to respond to offers to build GT Plants from large corporates & strategics * “Carbon Dioxide: A Market Flooded by Demand”, Cryogas International, May 2013.
  5. 5. globalthermostat Company Confidential 5 Global Thermostat - Company Highlights Disruptive Technology Addressing >US$1T market opportunity Highly Recognized Leadership Team Including the two co-founders Proven Process With 10 Patents and 2 operational Pilot Plants at SRI 5 2 Well Advanced in Development Pathway & have raised $22MM to-date 1 Modular Design Allowing great flexibility & scale 4 Economically Viable Generating revenues from captured CO2, and licensing 3 Tier-1 Technology Partners Including SRI, Corning, BASF, Georgia Tech 6 7
  6. 6. globalthermostat Company Confidential 6 Introduction to Global Thermostat Graciela Chichilnisky, authored the carbon market of the Kyoto Protocol Co-founder & CEO Peter Eisenberger, Exxon research executive leader Co-founder & CTO Edgar Bronfman, Jr., Global business leader Chairman Leadership Research partners Industrial partners
  7. 7. globalthermostat Company Confidential 7 Low-Cost, Breakthrough Process Advanced Modular Design Slashes CAPEX & OPEX; Eliminates Transport Costs Absorption Regeneration Low-energy, low-cost Abundant Supply Location Independent Affordable w/o Subsidies or Carbon Credits GT’s Proven, Patented Approach: A Truly Disruptive, Proven Solution CO2 supplied on-site, wherever needed • Eliminates trucks & pipelines Can be stand-alone, or co- located w/ large emitters • Needs only residual heat, and electricity • Ideal for remote locations CO2 drawn directly from air, or from industrial flues Supplied in any quantity, via totally modular design • Modules capture 50,000 tonnes/yr. each • Can expand as needed, by adding more modules Easy to integrate with existing or new-built power plants • Has been done with just one day of power plant down-time Small footprint: can fit on land adjacent to industrial facilities Carbon negative: can capture more CO2 than power plants emit CO2 remains trapped • Patented Carbon Sponge: porous “monolith” blocks coated with proprietary amine sorbents • Ambient Air and/or Flue Gas flows through and binds to sorbent – Structure & process resembles a car’s catalytic converter 3. Monoliths return to air stream; cycle restarts … 2. Low temperature “residual”/ process heat applied, releasing 98% pure CO2 for collection 1. Monoliths lowered into sealed chamberCO2 Available in atmosphere, unlimited supply Air or flue gas Air exits w/o CO2
  8. 8. globalthermostat Company Confidential 8 Existing CO2 Capture Alternatives Fall Short Active CO2 Capture Via a facilitated industrial process (multiple methods) • Energy intensive • Insufficient production • No cost-effective transport Legacy Flue Gas Capture CO2 extracted from combustion exhaust gasses • Legacy methods too costly to build & operate • Can’t easily be retrofitted to existing facilities Byproduct of Chemical Manufacture • Energy intensive • No cost-effective transport • Insufficient production Extraction from Natural Reserves Extract CO2 trapped in subterranean caverns • Geographically stranded – no cost-effective transport outside limited regions* • Capital intensive (pipelines) • Doesn’t reduce CO2 levels in atmosphere * Extraction from natural reserves in Texas an exception. Pipeline constructed to serve EOR market in local geography. Existing Power Plants & Large Emitters: • No current economically viable solution – “Business as usual” emissions, with mounting regulatory/financial cost, is a vanishing option For New-Built Power Plants: • Can try other experimental solutions, but they impose a large parasitic load – Ex: Texas Clean Energy Project’s coal gasification plant using Linde’s cryogenic Rectisol™ process Enhanced Oil Recovery Operators: • Pipelined if available (else $1.5MM/mile to build) • Trucked-in CO2 (at up to $200/tonne) • Natural CO2 domes (very limited geographically) – Lack of CO2 supply is what has restrained the growth and spread of EOR By Customer Segment Algae Biofuels/Synthetic Fuels Makers: • Pipelined or trucked. Land near emission sources often too limited and expensive By Method Critical Gaps Co-produced with ammonia & hydrogen manufacture
  9. 9. globalthermostat Company Confidential 9 GT’ Solution is Affordable, Proven, and Commercially Ready to Scale & Penetrate Global Markets Technology Development, IP Prototype Demonstration Next Step: Commercialize & Scale Technology Fully Baked • Created by Peter Eisenberger and Graciela Chichilnisky • Tech developed at SRI & Georgia Tech; Verified by Corning, Linde, Det Norske Veritas • Operational since 2010 IP Rights Secured • Strong IP portfolio – 10 patents so far – Worldwide rights • Freedom To Operate opinion Prototypes Operational • Two prototypes in Silicon Valley validate technology & economics • Performing as modeled; results consistent from bench- to pilot-scale Design for Manufacturability • Developing engineering plans for full-scale production units • Already realized large CAPEX & OPEX reductions vs. pilots • All components fit in standard shipping containers Sales • Advanced negotiations with large industrial partners (underway) • Contract & Execute projects IP Commercialization • Advanced IP licensing negotiations with large strategics (underway) Seeking growth equity investment for team build-out, tech development, and commercialization activities (investment supplemented by project financing)
  10. 10. globalthermostat Company Confidential 10 Breakthrough Development, Robust IP Portfolio Strong Technology Story Robust IP Portfolio • IP created by Peter Eisenberger & Graciela Chichilnisky • Technology was developed & prototyped at SRI & Georgia Tech – Fine-tuning in progress; No new science required • GT selected as finalist in $25MM Virgin Earth Challenge Prize – 11 finalists selected from more than 2,600 proposals • Improvements in process & materials represent recent cost breakthrough – 3rd Party reports validate GT technology & costs • GT has been awarded 9 US patents + 1 in Japan; additional patents and worldwide protection are pending • Freedom-to-Operate opinion assures no conflict with any others’ existing IP • GT offers preferential IP treatment to low income nations in somc cases charges no license fees
  11. 11. globalthermostat Company Confidential 11 1st Technical Demonstration 2nd Commercial Demonstration Two Prototypes Built To-Date… … with Strong Results Successful Prototype & Plant Development Application in Industrial setting Stand-Alone Demonstration Validated technology’s potential in large-scale applications * At 2x 50m2 commercial scale. Costs will fall with scale and experience. **Production based on current design changes. † Fully-loaded cost including consumables/maintenance and CAPEX amortization. Ranges based on embodiment, location, boundary conditions, and cost of funds. Cost reduction potential verified by Det Norske Veritas – independent 3rd party technology evaluation firm Validated Economics Est. cost/unit: $0.7-1.2MM* Est. production: 50k TPY** Cost/tonne: $10-35/tonne† These demonstration units already capture the CO2 emissions from SRI’s on-site power plant a well as from air, so could make it Carbon Negative
  12. 12. globalthermostat Company Confidential 12 Graciela Chichilnisky CEO & Founder • World leading economist, entrepreneur, executive, and inventor in IT, financial instruments, and CO2 capture • Founder CEO of FITEL and Cross Border Exchange, successful financial services technology companies • Authored of the Kyoto Protocol’s carbon market legislation (EU ETS) • PhD in Math from MIT and in Economics from UC Berkeley • Tenured Professor Columbia University, previously Harvard and Stanford Peter Eisenberger CTO & Founder • Leader and technology innovator in the global energy industry, and CO2 capture • 20+ year career including heading global R&D at Exxon, and lead scientist at Bell Labs • Tenured professor and former Vice Provost at Columbia University • Former Director of Columbia University’s Lamont-Doherty Earth Observatory • Founding Director Princeton University Materials Institute • Founding Director Columbia University Earth Institute Edgar Bronfman, Jr. Investor & Chairman • Chairman, Endeavor Global • General Partner at Accretive LLC • Former President and CEO of the Seagram Company • Former Chairman and CEO of the Warner Music Group • Recently successfully sold Warner for US$3.3 billion Key Advisors Ed Hotard Former COO, Praxair Eric (Ric) Redman President, Summit Power Ron Chance Emeritus Science Advisor, Exxon Rocco Fiato Accelergy, Exxon Michael Fleisher Bain, Gartner Sasha Mackler Summit Power Leadership Team
  13. 13. globalthermostat Company Confidential 13 GT Team Management & Technology Team: • Graciela Chichilnisky, Co-founder & CEO • Peter Eisenberger, Co-founder & CEO • Edgar Bronfman, Jr., Chairman • Kenneth Michie, SVP of EOR Operations • Keith Meyer, SVP of Energy & Oil Operations • Jason Offenhartz, Finance & Business Associate Advisory Board: • Ed Hotard, Former COO Air Products • Eric (Ric) Redman, President, Summit Power • Ron Chance, Science Advisor, Exxon • Rocco Fiato, Accelergy, Exxon • Roger Cohen, Ex-Exxon • Shane Smith, CEO of Vice Financial & Legal Team: • Corporate Counsel: Mitchell Zucklie, Esq., Chairman of Orrick, Herrington & Sutcliffe • IP Counsel: Paul Sutton, Esq., of Sutton Magidoff (formerly Sr. Partner at Greenberg Traurig) • Investment Bankers: Christopher Carter & Christopher Reynolds, Morgan Stanley UK • Auditors: Citrin Cooperman • Controller: Robert Bernstein, CPA, Esq., of Bernstein & Seidman • Dr. Eric Ping, Ph.D., Dir. of Technology Development • Tom Miller, Engineer & Project Development • Sharon McIlnay, Contract Attorney • Prof. Chris Jones, Ph.D., Georgia Tech • Dr. Gopala Krishnan, Ph.D., SRI International • Anoop Nagar, SRI International
  14. 14. globalthermostat Company Confidential GT Technology Description Step 1: Air Input & Carbon Capture • GT uses stacks of ceramic “monolith” contactors (similar to those in a car’s tailpipe catalytic converter), coated with an amine-based “sorbent,” that together act like carbon sponges – trapping, but not transforming, CO2 it encounters in an oncoming air/gas stream • Monoliths provide high surface contact areas at low pressure drop (air resistance) – Enables movement of large air volumes with effective contact of CO2 at low cost • GT’s advanced sorbents were proven highly effective by Georgia Tech, and further confirmed by SRI, and DN Veritas – Proprietary process bonds sorbent to monoliths’ porous walls, at high loading – This dramatically reduces heat required compared to liquid-based Carbon Capture • ~1.5-30 minute cycle (depending on embodiment and implementation) Step 2: Regeneration • CO2-rich monoliths are moved into air-tight, evacuated Regeneration Chamber • Low-temperature residual heat (90°-105°C steam) is applied, stripping CO2 from monoliths • Liberated CO2 is collected and piped away, at atmospheric pressure – Output is 95-98% pure CO2 – No other inputs are consumed; no other byproducts are released • Now-empty monoliths are raised from the Regeneration Chamber, back into the oncoming air stream, to repeat the cycle • ~1.5-3 minute cycle Step 3: Heat Transfer • Neighboring Regeneration Chambers are kept out of phase with each other, yet are interlinked, allowing steam to pass between them • As one Regeneration Chamber completes is cycle, the other is just beginning • In the just-completed Chamber, water evaporates from hot monoliths (cooling them to below the oxygen degradation temperature). That water & steam is piped to the just- beginning Chamber, where water condenses on the cool monoliths, pre-warming them • Cool monoliths receive 50% of their heat this way, substantially reducing operating costs GT Module Absorption Phase Regeneration Phase Monolith Contactors + Sorbent “Cartridge” 105° Steam CO2 Collection GT Module Absorption Phase Regeneration Phase Ambient Air OR 20:1 Air-Flue Gas Blend Monolith Contactors + Sorbent “Cartridge” ` GT Module Absorption Phase Regeneration Phase Monolith Contactors + Sorbent “Cartridge” Evacuated steam from hot box to neighboring box/module 14
  15. 15. globalthermostat Company Confidential 15 2010: GT’s 1st Pilot at SRI (Stanford Research Institute) SRI International 333 Ravenswood Avenue Menlo Park, CA 94025
  16. 16. globalthermostat Company Confidential 16 2013: GT’s 2nd Commercial Demo Plant at SRI SRI International 333 Ravenswood Avenue Menlo Park, CA 94025 GT Achieved US DOE/DOD Technology Readiness Level 7 - TR7
  17. 17. globalthermostat Company Confidential 17 GT: Carbon Negative Solution, Long-Term Upside High potential for incremental profit from tax on carbon emissions under current & emerging regulations • Beginning to be applied in some developed countries and likely to spread to others given nature of climate change debate • Recent EPA legislation demonstrates benefits and upside for Carbon Capture technology While not considered in any GT business projections, carbon credits & other incentives create significant upside to current opportunity • 26 US Code §45Q provides a CO2 EOR tax credit of ≈$10.75/tonne • Carbon credits in California & EU-ETS trading above $12/tonne today Independent of a tax on CO2, Governments likely to make grant dollars available to support the development of CO2 capture* Atmospheric CO2 Captured by GT’s process Permanently removed or re-used in: Entire GT Process Carbon Negative EORIndustry BioFuels * Draft UN report (1/15/2014) notes global goals to limit CO2 are unlikely to be met without actively removing CO2 from the atmosphere, recommends direct CO2 capture GT’s Technology Represents an Enormous Opportunity, Irrespective of Regulation
  18. 18. globalthermostat Company Confidential 18 Summary of Global Thermostat True, proven technical breakthrough GT proven technology solves critical barriers to productive CO2 application in industry Enormous market business potential Large, diverse and unmet market opportunity today Significant opportunity to expand market, enables new applications – $ Trillions per year opportunity Commercial readiness and exit paths Major technical proof-points established and protected with robust IP worldwide Global Solution to Climate Change Several paths to both create a big business and reach a liquidity event in 3-5 years $200 Bn/year Green Power Fund to accelerate deployment of GT plants and other carbon negative technologies Contact: Graciela Chichilnisky, CEO Global Thermostat O: 1-212-678-1148 C: 1-646-623-3333 www.
  19. 19. globalthermostat Company Confidential 19 To accelerate carbon negative technologies: The Green Power Fund • $200 Bn/year Private Public Fund • Financial & Technological solution for Global Climate Change • Quick global deployment of Carbon Negative Power Plants in Developing Nations • Using funding available from the UNFCCC CDM of the EU ETS • Providing clean power for rapid growth in least developed nations: SIDS, Africa and LA • Liberating women and children used today as beasts of burden
  20. 20. globalthermostat Company Confidential 20 The Green Power Fund Green Capitalism Economic Growth and Sustainable Development Focus on Least Developed Nations • Introduced by the author in Copenhagen COP 15 2009 • Supported by H. Clinton US Department of State • Voted partially by UNFCCC in Durban South Africa COP 17 as Green Climate Fund • Requires only Diplomatic Completion in Lima Peru COP 20 December 2014 • Needs legislative support at global negotiations COP 21 Paris 2015 • Led by Monaco with the moral support & votes of 30 SIDS
  21. 21. globalthermostat Company Confidential 21 The Green Power Fund How does it work? • GPF offers profitable off-takes or PPA – attracting private funding • High IRR for building Carbon Negative power plants in Africa LA and SIDS • Adding to CDM funding and funding from sovereign funds
  22. 22. globalthermostat Company Confidential 22 Why a Carbon Negative Technology? Because it is needed No solution otherwise (IPCC 2014)
  23. 23. globalthermostat Company Confidential 23 Why LA, Africa & SIDS? Because they are needed No solution otherwise (IPCC 2014)
  24. 24. globalthermostat Company Confidential 24 Why The Green Power Fund? Because it is needed No solution otherwise (IPCC 2014)
  25. 25. globalthermostat Company Confidential 25 A Green Monaco • Could set a global precedent by implementing GT • becomes the catalyst with UN mandate for addressing climate change
  26. 26. globalthermostat Company Confidential 26 Next steps 1. Leading Global Thermostat to a profitable deployment of GT plants all over the world 2. UN Legislation for Green Power Fund • Participation of Monaco and AOSIS in UNFCCC COP negotiation committees • COP 20 Peru December 2014 • COP 21 Paris December 2015 • The Green Power Fund