Consortium "Wind-hydrogen dimethyl economy. National technological project

Consortium "Wind-hydrogen dimethyl economy. National technological project

Managing Company – Executive Committee Interregional association for economic cooperation of constituent entities of Russia "Big Ural" (Executive Committee IA "Big Ural")

Explanatory notes

Wind-hydrogen dimethyl economy concept

Editors:

V. G. Gorodetskiy, PhD

A. I. Potapov, PhD

V. V. Tyukov, PhD

Yekaterinburg, March 2013

I. Introduction

Growing environmental problems and limited hydrocarbon resources (especially oil) that the world's energy sector and economy rely on today force one to look for solutions to these problems through a more efficient use of hydrocarbons, the advancement of environmentally friendly power generation technologies, and a wider use of hydrogen, an eco-friendly source of energy and fuel. Electrolysis of water using electricity from environmentally friendly sources –wind and the sun - has so far been considered the most appealing scheme of hydrogen production.

The 1970s energy crisis spurred research into hydrogen energy. However, long-term hydrogen energy programmes did not form the basis of energy polices in developed countries until 2003, after the 2002 Johannesburg Summit was held with energy issues being at the centre of its agenda, as well as after global fuel prices surged and the Kyoto Protocol entered into force. [1]

The Group of Eight (G8) summit in St. Petersburg in July 2006 discussed global energy security issues and adopted the St Petersburg Plan of Action on Global Energy Security. Two sections of the action plan (21 and 26) are directly related to hydrogen energy. Part of section 21 dealing with the energy efficiency of transport says: "Increase research to develop vehicles using gasoline/hydrogen fuel and hydrogen fuel cells to promote the hydrogen economy". Section 26 says: "We support the transition to the Hydrogen Economy, including in the framework of the International Partnership for the Hydrogen Economy (IPHE). A critical part of this effort is to develop common international standards in the field of commercial development of hydrogen power, infrastructure and security requirements." Consequently, hydrogen energy and the hydrogen economy have been recognized at the top level as promising global energy development trends in the 21st century.

One should remember, however, that there are huge problems with the storage and delivery of hydrogen to the end user. The volume density of hydrogen is so low that even when liquefied, its energy density is three times as low as that of petrol. Hydrogen is much more difficult and expensive to transport via pipelines than natural gas. A completely new transportation, storage and distribution infrastructure needs to be created for a wide use of hydrogen as a source of energy.

To become truly in demand, hydrogen energy has to prove not only its high environmental performance compared to traditional energy, but also its economic viability. The latter is yet to be achieved.

One should also take account of the fact that a carbonless economy cannot be established – people need plastics and other synthetic materials made of hydrocarbons.

It has become clear that the hydrogen economy alone is not the best of options. Given the limitations imposed by the properties of hydrogen and demand for products made from hydrocarbons, it seems appropriate to use a concept of transition to a new economy that was suggested by American chemist and Nobel Prize winner D. Olah and his co-authors A. Goeppert and S. Prakash in their book "Beyond Oil and Gas: The Methanol Economy" (published in Russian under the title "Метанол и энергетика будущего. Когда закончатся нефть и газ" [2]). The concept rests on the idea of a gradual transition from today's fossil fuel economy to an economy based on methanol and dimethyl ether (DME) along with the recycling of carbon in the economy and the use of hydrogen produced through environmentally safe processes, e. g. electrolysis of water using wind and solar power. As a result, we inevitably face the need for the long-term development of a combined hydrogen-dimethyl economy in which dimethyl ether will play the role of a strategic energy source, replacing oil and its derivatives, while hydrogen will be a key element of DME synthesis, an accumulator of energy from renewable sources and a fuel for power plants. In the short term, dimethyl ether will be increasingly produced from gas, coal, peat, wood other carbon containing waste materials. Gradually, carbon dioxide emitted by power plants and industrial facilities will start being used for DME production. Eventually, a closed-loop carbon cycle will be established in the economy.

Methanol and DME could be used for producing the majority of valuable products of organic synthesis and engine fuels, but DME is easier to produce as it has higher heating value, is non-toxic, non-corrosive, it quickly evaporates in case of an emergency spill and can be directly used as a diesel fuel substitute in diesel engines.

Strategic benefits of dimethyl ether:

1. DME contains three key atoms: those of hydrogen, carbon and oxygen. Nitrogen that is required for further organic synthesis is abundant in the atmosphere and does not need to be transported. This makes it possible to arrange final synthesis gas facilities at minimum costs.

2. For DME, transmission costs per unit of energy are 15 times lower than in the case of hydrogen pipeline transportation. Unlike hydrogen, DME can also be transported by rail, car and sea. The cost of compression equipment for DME pipeline transport is at least three times lower than that of hydrogen. A DME pipeline is more durable than a hydrogen one due to hydrogen embrittlement.

3. DME can be derived from all types of primary renewable and non-renewable carbon feedstock without any waste.

4. Carbon bonds are the most convenient and compact way of holding hydrogen in car fuel (jet fuel, marine fuel). Handling of liquids is well-proven and safe; there is available infrastructure for them; they can be stored in containers for a long time. Hydrogen lacks these benefits as it has an extremely low boiling point.

II. Preconditions for building wind-hydrogen dimethyl economy

The concept of transition to the dimethyl economy already makes it possible for basic Russian mining industries (gas and coal industries) to make an environmentally safe product with a higher added value – dimethyl ether – that can utilize with minor modifications the transportation, storage and distribution infrastructure that is available in Russia and abroad. As long as gas and coal reserves are still available, it is environmentally appropriate to convert them into liquid hydrocarbons. When gas and coal reserves are depleted, it will be necessary to establish a carbon cycle in the economy by converting carbon dioxide emissions from power generating and production facilities into DME, preserving Russia's export potential for the future by means of using renewable wind power resources of the country.

Russia has the resource and intellectual potential for moving to a new technological era based on dimethyl ether with the use of hydrogen derived from wind-powered water electrolysis. The development of wind power generation will make it possible at the current stage to reduce gas consumption for purposes of DME production. In the future, as gas reserves are depleting, wind power will cover energy needs for producing hydrogen and DME synthesis utilizing carbon dioxide.

In Russia, a great contribution to improving dimethyl ether production technologies was made by the vice-president of the Russian Academy of Sciences, academician A. Plate, Prof. A. Rozovskiy and his associates. Currently, research into DME synthesis is being conducted at the Topchiev Institute of Petrochemical Synthesis of the Russian Academy of Sciences (RAN); the Zelinskiy Institute of Organic Chemistry of RAN, the Joint Institute for High Temperatures of RAN; The Boreskov Institute of Catalysis of RAN; the Institute of Solid State Chemistry of the Urals branch of RAN; the Institute of Coal Chemistry and Material Science of the Siberian branch of RAN; the Melentyev Energy Systems Institute of the Siberian branch of RAN; Moscow State University; the Mendeleyev University of Chemical Technology; the Gubkin Russian State University of Oil and Gaz and others.

Energy resources and raw materials for wind-to-hydrogen dimethyl economy in Russia:

- wind power resources in the Arctic areas of Russia alone outstrip the capacity of the entire national energy grid at least 20-fold;

- Russia boasts the largest gas reserves (32 per cent of global reserves; 30 per cent of global production) in the world and the third largest coal reserves;

- carbon dioxide emissions from coal-fueled power plants, metallurgical, chemical and cement plants; locally available biomass feedstocks (wood chips, straw, peat, pulp waste, urban and rural waste etc.). Carbon dioxide emissions in Russia total 1.6bn tonnes annually. This amount is enough for producing 300m tonnes of petrol. The annual production of petroleum products in Russia is about 105m tonnes, while oil production stands at about 510m tonnes a year.

Russia has a strong machine building industry that could provide a platform for launching the production of required cutting-edge equipment, among other things in cooperation with foreign partners.

Existing markets for dimethyl ether:

- using DME on the domestic market as the environmentally safest transport fuel. Additionally, aviation, railroads and the quarrying industry could be considered as potential markets. The key advantages of DME are that it is environmental friendly, efficient, ensures the silent running and instant start of an engine at temperatures as low as minus 50o C;

- as a feedstock for the synthesis of petrol, diesel fuel, ethanol and engine fuels. This option will require the construction of standardized small-scale fuel refineries (with a capacity of 2m tonnes a year) across the country. The key advantages are environmental friendliness, good logistics; adaptability to the local market;

- DME as a feedstock in the chemical industry;

- European market. Gazprom has announced that it is technically possible to use at least one of its 17 export gas pipelines for transmission of other products to Europe due to spare capacity on the pipeline system. Initially the pipeline might be used for DME transportation to Europe; in the future another pipeline might be designated for receiving liquid carbon dioxide from Europe for subsequent processing into DME. Europe has passed legislation on carbon capture. DME could be marketed in Europe either directly, or through synthetic fuels.

- Chinese and Asian markets. In 2006, China adopted legislation regulating the use of DME as a car fuel; a strategy for the extended application of synthetic engine fuels was set out in a state procurement contract worth 130bn dollars up to 2020. China's environmental programme was passed with a budget of 1,950bn dollars through to 2020. The key transportation solutions include a supply pipelines along the Altai gas pipeline that is planned to be run between the Yamal-Nenets Autonomous Area, the Xinjiang Uyghur Autonomous Region (North-Western China) to Shanghai (the appropriate agreement was signed in 2007, but was not implemented for economic reasons), and a pipeline parallel to the Eastern Siberia–Pacific Ocean oil pipeline and extending to in North-Eastern China, the Pacific Ocean, island states and America. There is an option for regional distribution by agreement. In the future, construction is to begin from China of a liquid carbon dioxide line for receiving liquid carbon dioxide and processing it into DME. China is interested in capturing industrial emissions and addressing its serious environmental issues. The Asian market appears to be the most promising one, it can potentially consume over 1bn tonnes of DME annually.

DME and liquid carbon dioxide in particular have very low viscosity, so unlike natural gas and oil, they can be transported via pipelines at an unlimited distance. This property is one of the key characteristics of the wind-hydrogen dimethyl economy that ensures its global nature.

III. National strategy, state programme "Wind-hydrogen dimethyl economy. National technological project" and industrial federal targeted development programmes.

Building a wind-hydrogen dimethyl economy in Russia will mean the transition to a new technological era as it will transform the entire national economy. New branches of industry will be created; new technologies, materials and machinery will be designed and put to use. Existing companies will be encouraged to modernize; new markets will emerge. In addition to energy and technological issues the wind-hydrogen dimethyl economy also addresses the problems of pollution, health, demography, climate, agriculture, national defence, even distribution of labour force, transport, construction, the development of new territories, new metallurgy, international issues etc. The transition to the wind-hydrogen dimethyl economy means a qualitative change of life, a scientific breakthrough bringing cutting-edge technologies practically to every sphere of life in Russia.

Such major economic transformation is impossible without coordinated effort of a huge number of market participants and government bodies. A national strategy is required for this transformation, as well as a state programme "Wind-hydrogen dimethyl economy. National technological project" and industrial federal targeted development programmes.

Sections of the state programme "Wind-hydrogen dimethyl economy. National technological project":

- wind power,

- production, storage and utilization of hydrogen,

- fuel cells,

- DME production (from gas, coal, biomass and CO2,

- DME application in transportation and power generation,

- DME-based organic syntheses,

- off-road transport,

- environmental issues etc.

A number of strategic tasks are to be solved as part of the programme:

1. Creating large-scale DME production facilities in areas near coal reserves and with high wind power potential. Such production units should meet a substantial part of internal demand for DME and export needs.

2. Building dispersed hydrogen-dimethyl power generation when electricity and heat are generated close to individual consumers: households, farms, industrial facilities, remote settlements. It will make it possible to ensure the reliability and convenience of supply in areas that are not connected to centralized power and gas supply networks, and to make maximum use of available human and natural resources for developing the domestic market.

3. Arranging production of DME from industrial carbon emissions with the use of renewable energy sources for obtaining hydrogen.

To address these strategic goals, innovative production units that are new to Russia will have to be created:

- wind turbines of various capacities, including megawatt class turbines and vertical-axis wind turbines that are more efficient and environmentally safe, which is very important for dispersed generation;

- solid polymer (SPE) electrolyzers and high-temperature electrolyzers. They are more efficient than low-temperature ones and do not require the use of catalysts and precious metals;

- power plants using solid polymer electrolyte fuel cells and zirconium oxide-based solid oxide fuel cells with various additives that do not require catalysts and precious metals;

- DME synthesis reactors employing cutting-edge Russian technology that derived from space and membrane technologies using mixed ion-electron-conducting solid oxide membranes;

- new construction and functional materials and products based on carbon fiber composite materials, rare-earth magnets, ceramics for various applications etc.;

- airships and ground effect craft for operation in off-road conditions.

Each of these fields of production is of national importance and economically attractive.

The implementation of the state programme "Wind-hydrogen dimethyl economy. National technological project" and industrial federal targeted development programmes could bring the following long-term and short-term effects: a) improved living standards; creation of highly productive modern jobs; better accessibility of energy sources in remote areas; introduction of combined elements of dispersed generation and better safety of electrical grids; development of infrastructure; companies engaged in the programme will gain a marketing edge for their products; higher tax revenues; and the implementation of welfare programmes; b) diversification of the Russian economy; more effective use of carbon-bearing energy sources and a smooth transition to the wind - hydrogen dimethyl economy against the backdrop of falling production of naturally occurring hydrocarbons; ensuring Russia's economic competitiveness and maintaining the country's export potential.

The implementation of the programme will also create bigger markets and market sectors for manufacturing companies and facilitate their full-fledged integration into international cooperation systems and the global economy. New innovative products will be designed and put into production as part of the programme; new advanced technologies will be created and put into practice; new industries will be established. The programme will enable companies to raise funding for R&D projects, make them more competitive and implement PPP projects.

The programme will give an opportunity to scientific and educational establishments to raise funding for R&D, win staff training contracts, enter into research and production partnerships with manufacturing companies and improve their research infrastructure to match world standards.

IV. Creating major DME production unit and wind farm in the Yamal-Nenets Autonomous Area.

A project for the construction of a major production complex in the Yamal-Nenets Autonomous Area (Yamal) is a key one in the state programme "Wind-hydrogen dimethyl economy. National technological project". It provides for building a wind farm with a fleet of electrolyzers for obtaining hydrogen and producing dimethyl ether. Huge natural gas reserves and gigantic wind resources of the peninsula estimated at over 250 GW, more than the total capacity of Russia's energy sector, make it possible.

Potential specifications of the production complex clustered around a theoretically possible gigantic 256 GW wind farm in Yamal were substantiated by A. Potapov in the "Wind-hydrogen DME" project that he presented at a round table discussion entitled "Wind-hydrogen energy. National technological project" in Yekaterinburg on 20 December 2012 [3-10].

The true scale of the Yamal production complex could be determined after appropriate research is conducted and design data are obtained, on the grounds of feasibility study results taking account of environmental requirements and the assessment of strategic security and marketing prospects of DME.

The following are implementation stages of the project for construction of the DME and power production complex in Yamal:

1. Building a pilot DME production unit on the basis of existing projects for trialing the technology;

2. Building a demonstration installation for DME production at a gas field;

3. Building an experimental complex including a DME production unit and a wind farm with a fleet of water electrolyzers for verifying production parameters.

4. Building an industrial complex including a DME production unit and a wind farm with a fleet of water electrolyzers.

It is obvious that the capacity of the Yamal wind farm might be considerable. Back in the 1980s the USSR started the construction of the largest wind farm in Yamal with a capacity of 6 GW that was planned to consist of 1.5m small wind turbines with a capacity of 4 kW per unit. The Astrakhan-based VETRON factory was only able to produce 1,500 wind turbines. Over the past 20 years the capacity of wind turbines has grown by a factor of 1,000. Economically, wind farms rival conventional power plants in areas with sufficient wind power potential. Low-noise and efficient vertical-axis wind turbines have emerged as a new promising technology trend in the production of wind turbines.

Yamal's largest wind farm will provide the foundation for DME production, the implementation of the Russian Federation Strategy for Arctic Zone Development and for ensuring national security up to 2020 that was approved by Russian President Vladimir Putin on 20 February 2013 [11]. Part of electricity generated by the wind farm will be supplied to industrial areas of the Urals.

The industrial production of DME and hydrogen ought to be located near Salekhard. Gas pipelines from Yamal's gas fields will be extended to Salekhard, and so will the gas pipelines of Nadym – Pur - Tazovskiy district utilized for DME transmission. Gas from the Bovanenkovo oil and gas field contains about 2.1 per cent of carbon dioxide; in the future a CO2 pipeline running from the Reftinskaya district power plant to Salekhard via Yekaterinburg, Nizhniy Tagil, Verkhniy Tagil and Serov could be extended to the DME production facility. Later it could be connected to branch pipelines from other areas of Russia. Captured carbon dioxide is planned to be traded at 45 to 55 dollars a tonne (depending on the project's technical and economic assessment). It will solve environmental problems in polluted towns of the Urals at first and then in the rest of Russia.

Funding for the DME production and wind farm project in Yamal within the framework of the state programme "Wind-hydrogen dimethyl economy. National technological project" and in view of the Strategy for Arctic Zone Development is expected to come from a range of sources: the federal and regional budgets (funding for infrastructure, welfare facilities, research and development), public-private partnerships (state guarantees, mutual obligations), private businesses.

Several years will pass between the construction of a pilot unit and the construction of an experimental production complex in Yamal and availability of data for designing an industrial complex. This time should be used for arranging above mentioned new innovative production processes that are required for implementing the DME production and wind farm project in Yamal, and are economically self-reliant, too.

V. Distributed generation

Another key project of the "Wind-hydrogen dimethyl economy. National technological project" programme provides for the creation of combined stand-alone energy units for dispersed generation that would use renewable energy resources, including the conversion of biomass into DME. For example: a) DME-based fuel cells; b) a wind turbine combined with an electrolyzer and a fuel cell; c) solar panels plus batteries; d) a wind turbine plus a diesel generator plus a DME reactor.

Implementing this project will ensure energy stability in settlements that are not connected to centralized electricity and gas supply networks, remote drilling, industrial and welfare facilities, will give a boost and tools for the development of economically distressed areas and to review development strategies for promising uninhabited areas.

VI. Utilization of flare gas and development of small gas fields.

All too often it is impractical to lay a pipeline to gas sources or small gas fields. Associated petroleum gas has to be burnt off, wasting a valuable material and polluting the environment. Processing flare gas into liquid energy carriers helps solve this problem. In many cases, small gas fields have to be shut down. One example is the Bukharovskoye gas field in Sverdlovsk Region. It is not cost-efficient to lay a pipeline there, but the gas deposit is located near an industrial area that needs fuel. Converting natural gas into DME and its follow-up transportation by land could make the operation of the Bukharovskoye gas field economically viable.

VII. Consortium "Wind-to-hydrogen dimethyl economy. National technological project"

Given that only federal executive authorities can initiate problem solving through federal programmes [1], it is appropriate to present the draft concept of the national strategy and state programme "Wind-hydrogen dimethyl economy. National technological project" to the Russian president and the Russian government, the governors of the Ural regions, in the first place to the governors of the Yamal-Nenets Autonomous Area, Sverdlovsk Region and Chelyabinsk Region to make maximum use of the regions' economic potential.

A consortium "Wind-hydrogen dimethyl economy. National technological project" was set up to combine the effort and to coordinate steps of manufacturing companies, research and educational establishments and government bodies who are interested in advancing the concept and implementing the strategy and programme "Wind-hydrogen dimethyl economy. National technological project".

The following organizations have already confirmed their interest in joining the Consortium:

- Presidium of the Urals branch of the Russian Academy of Sciences;

- South Urals State University;

- International Exchange for Commercialization of Innovation (IECI);

- Uralmet Research Institute;

- GRTs-Vertical Ltd;

- Executive committee of the Big Ural interregional association;

- AZ Kapital investment group;

- Uralkhimmash joint stock company;

- Elmash (UETM) Ltd;

The following organizations consider joining the Consortium:

- Sverdlovsk Region ministry of energy and utilities;

- Science and innovation department of the Yamal-Nenets Autonomous Area;

- Institute of Solid State Chemistry of the Urals branch of the Russian Academy of Sciences;

- High Temperature Electrochemistry Institute of the Urals branch of the Russian Academy of Sciences.

A foundation called "Wind - hydrogen dimethyl economy. National technological project" is planned to be set up to accumulate funding from the Consortium participants and other sources for project implementation.

References.

*****ssia: strategy of transition of hydrogen economy. B. N. Kuzyk, Y. V. Yakovets / Moscow, Institute for Economic Strategies, 2007

2. George A. Olah, Alain Goeppert, G. K. Surya Prakash, 2009, Beyond Oil and Gas: The Methanol *****ssian edition: Метанол и энергетика будущего. Когда закончатся нефть и газ / Дж. Ола, А. Гипперт, С. Пракаш; пер. с англ. – М. : БИНОМ. Лаборатория знаний, 2012. – 416с.

3. Presentation of A. I. Potatov, director-general of South Urals Power Generation Company, author of "Wind-hydrogen DME" project at round table discussion "Wind-hydrogen energy. National technological project" in Yekaterinburg on 20 December 2012. http://www. *****/index. php? main=news_energo&id=100281&pg=4

4. Wind of change. A. I. Potapov, A. L. Shestakov, S. D. Vaulin, S. B. Sapozhnikov. Bolshoy Ural (Big Ural) magazine v.3 17 Dec 2p. 14-17 (http:///smi/archive )

5. Wind-hydrogen economy – future of Russia. Bolshoy Ural (Big Ural) magazine v.1 1 Feb 2p. 76-77 (http:///smi/archive )

6. Expert assessment and opinion on "Wind-hydrogen DME" project. Bolshoy Ural (Big Ural) magazine v.1 1 Feb 2p. 78-79 (http:///smi/archive )

7. National issues. N. V. Mushnikov. Bolshoy Ural (Big Ural) magazine v.1 1 Feb 2p. 79-81 (http:///smi/archive )

8. Adapting to global competition and limited resources. M. B. Petrov. Bolshoy Ural (Big Ural) magazine v.1 1 Feb 2p. 82-83 (http:///smi/archive )

9. Government support is needed. Y. E. Solomin. Bolshoy Ural (Big Ural) magazine v.1 1 Feb 2p. 84-85 (http:///smi/archive)

10. From investor's point of view. A. A, Metsger. Bolshoy Ural (Big Ural) magazine v.1 1 Feb 2p. 86 (http:///smi/archive)

*****ssian Federation strategy for Arctic zone development and for ensuring national security through to 2020. http://xn--80aealotwbjpid2k. xn--p1ai/docs/22846/

12. Procedure for drafting and implementing federal targeted development programes and interstate targeted development programmes with the participation of the Russian Federation. http://www. *****/read/documents/government/594_95/development_realization