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Deep Sea Resources The Next Frontier


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Case study presented by DP Holding SA at the Next Big Energy Surprise session at the 2013 Atlantic Council Energy & Economic Summit.

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Deep Sea Resources The Next Frontier

  1. 1. Deep  Sea    Resources   The  Next  Fron4er     Conversion  of  Black  Sea  Sapropelic  Mud  to   Organic  and  Inorganic  Products     21-­‐22nd  November  2013  
  2. 2. Contents   1. Occurrence of Sapropelic Mud in the Black Sea 2.  Extracting and Processing “Sapropelic Mud”: Applying Marexin Proprietary Technologies 3. Economic, Social and Environmental Effects 2
  3. 3. 1. Occurrence of Sapropelic Mud in the Black Sea 3
  4. 4. Sapropelic  Mud  is  distributed   across  the  seabed  surface  of  the  Black  Sea   The world’s largest permanently anoxic basin. Surface Area 1,253 m 4,111 ft Max Depth 2,212 m 7,257 ft Water Volume Black Sea 168500 miles2 Average Depth Romania 436,402 km2 547,000 km3 131,200 miles3 Sapropel Resource* 3.2 x 1011 m3 11.3 x 1012 ft3 248 years extraction at 8 MM tonnes/year flowrate project. * AAPG European Region Annual Conference, October 17-19, 2010 Kiev, Ukraine Shnyukov; The Black Sea Sapropel and Sapropelic Sediments as a raw material for production of new types of complex fertilisers 4
  5. 5. Sapropel  accumula?on  in  Black  Sea   was  caused  by  a  developing  anoxic  environment     Approx 88% of Black Sea waters are Anoxic Oxygenated, low salinity region Transition region Anoxic, high salinity region Black Sea Bosphorus Straight Mediterranean Sea 1.  Saline waters of the Mediterranean Sea rose and entered the fresh waters of the Black Sea 7,500 years ago 2.  Salinity difference prevented mixing of the water column 3.  High salinity deeper waters became anoxic causing a major crash of the entire deep ecosystem killing all oxygen-dependent life forms 4.  Organic matter of the dead sea creatures did not decompose in the anoxic conditions and accumulated in the sea floor mud Remains of marine life accumulate on the seabed as sapropelic mud 5
  6. 6. Sapropelic  Mud  is  composed  of  layers   enabling  our  unique  product  mix   Exploration Results •  Top layer: Coccolith is a layer of high concentration calcium carbonate 1,300 km 808 miles High Resolution Bathymetric Surveillance 1,000 km 621 miles Core Samples Collected and Analysed •  Middle layer: Sapropel has organic content, derived from dead marine creatures in conjunction with nano sized mineral deposition. Sub Bottom Profiling 165 - Natural Resource TOC , %wt Sapropelic mud 7 ~ 15 c.f. Fossil Source Rocks e.g. Domanik Shales * 2~3 •  Bottom layer: Mineral Muds is a layer of inorganic materials * Volga Ural Basin, Europe 6
  7. 7. 2. Extracting and Processing “Sapropelic Mud”: Applying Marexin Proprietary Technologies 7
  8. 8. Proprietary  Marexin   processing  using  proven  technologies   Organic   Processing   • Gasifica?on   Gasify  organic   material  to   produce  syngas   Extrac?on   • From  the  seabed   at  around   2000m  below   sea  level   • Using  a  subsea   mining  tool  and   riser  to  bring  the   resource  to  the   sea  surface   Offshore   Processing   • Dewatering  via   chemical  and   physical   processes     • Return  of   excess  marine   water  to  the   seabed   Logis?cs   • Barges   transport   dewatered   resource  to  an   onshore   processing   facility       • Syngas   Conversion  of   syngas  to   higher  value   organics CO2  Capture  and   U?liza?on   • Carbon  dioxide  captured   from  the  organic  and   inorganic  processes   reprocessed  to  produce   valuable  organic   compounds  or  biofuels.   Inorganic   Processing   • Minerals   Various  mature   alloys  and  slag   processing   technology   employed 8
  9. 9. Proprietary  Marexin     technology  for  deep  sea  mining   9
  10. 10. Proprietary  Marexin     technology  for  deep  sea  mining   Offshore Processing Vessel Vertical Transportation System Subsea mining tool 10
  11. 11. Both  organic  and  inorganic  components     are  processed  in  one  single  system   Electric  Arc  Furnace   Sapropelic  Mud   Ini?al  Products   Syngas Final  Products   Biochemical process Ethanol Organic content Single feed Inorganic content Mineral rich slag Proven processes Metallurgical Products Construction Materials 11
  12. 12. Product  mix  for  indica?ve  annual  extrac?on     rate  of  8  MM  tonnes  of  Sapropelic  Mud   Product   In  tonne/year   Average  Price   EUR/tonne   Industrial   Applica?on   2,800,000 Ethanol 1,000 Fuel 1,900,000 Cement 60 Construction 1,500,000 Precipitated Calcium Carbonate 180 Paper , Construction 800,000 FeSi Alloys 1,120 Steel 400,000 Aluminium 1,810 Transportation, Construction 160,000 Magnesium 2,250 Automotive Titanium 25,000 Aerospace Manganese 2,500 Steel 712 Vanadium 23,260 Steel 616 536 Nickel 16,460 Steel Chromium 3,870 Steel Cobalt 25,050 Superalloys 21,450 4,056 176 12
  13. 13. 3. Economic, Social and Environmental Effects 13
  14. 14. A mega project with significant economic benefits 45,0%   40,0%   Key Financials (For 8 MM tonnes/year) IRR NPV IRR   ~ € 5.7Bn OPEX 30,0%   > € 20Bn CAPEX 35,0%   > 40% ~ € 1.1Bn • Substantial impact on communities and markets in the region • Increase competition in each of the product areas • Significant positive boost to Romania’s GDP 25,0%   • Boost the strategic importance of the region 20,0%   0   500   1000   1500   2000   2500   Sapropel  Flowrate  [tone/h]   14
  15. 15. Numerous new jobs and improvements to national infrastructure would be achieved INVESTMENT  AND  IMPROVEMENT  IN  INFRASTRUCTURE   •  Maritime facilities in Romania will receive 6 - 10 MM tonnes of Sapropelic mud p.a. •  Products from the onshore facility will be transported by road, rail and maritime vessels •  Turnover of Project will be equivalent to 5% GDP in Romania Romania Black Sea Key Features (For 8 MM tonnes/year) New Direct Jobs* ~ 6,000 FTEs New Indirect Jobs** ~ 60,000 FTEs TOTAL JOBS ~ 66,000 FTEs * Around 6000 FTEs will be required directly. **Another 60,000 FTEs will be required in the supporting industries such as infrastructure, construction, transportation etc. 15
  16. 16. Marexin proprietary engineering design will minimize environmental impact offshore Recovered marine methane will be utilised to power the ship’s operations Sea surface Oxygenated waters Oxygenated/Anoxic water interface Anoxic waters Disturbance to the marine habitat will be minimised and temporary through design of the subsea vehicle Discharge water from the extraction process will be returned to the anoxic zone where the hydrogen sulfide levels will rapidly deplete any entrained oxygen Monitoring biological activity of the seabed environment, before, during, and after the exploitation Conformity to Present and Foreseeable EU, Romanian, Black Sea & IMO Regulations for Discharges 16
  17. 17. …onshore Marexin will convert waste streams to products REDUCE RECYCLE Water treatment units will assure the treatment of the industrial waters to minimise the compliant discharging into the Black Sea . The developed processing chain and natural structure of the sapropelic mud is allowing the conversion of the solid wastes to cement and fertilisers. Conformity to Present and Foreseeable EU, Romanian, Black Sea & IMO Regulations for Discharges & solid wastes REUSE Carbon dioxide waste streams will be processed to produce carbon monoxide and hydrogen, then converted to ethanol 17
  18. 18. Unique Opportunity Environmentally Responsible Significant Economic and Social Benefits for the region Sapropelic Mud Project Applies Proven Technologies 18
  19. 19. Deep  Sea  Resources   The  Next  Fron4er     Conversion  of  Black  Sea  Sapropelic  Mud   to  Organic  and  Inorganic  Products     Dinu Patriciu Melanie Chen Razvan Popescu Chairman of DP Holding SA COO of Marexin BV Managing Director of Marexin BV 21-­‐22nd  November  2013   e-mail: e-mail: e-mail: