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Generating electricity from flare gasConnecting value between oil and gas and technology
The Geopolitics
Gas flaring is a visual reminder that we are wastefully sending CO2 into the atmosphere but we can do something about this. Together we can take concrete action to end flaring and to use this valuable natural resource to light the darkness for those without electricity.Former World Bank President (2012-2019) Jim Yong Kim
In Hard Numbers
• 141 billion standard cubic metres of natural gas were flared globally by the oil and gas industry in 2017• This is enough to generate over 60 Gigawatts of electricity• In 2017, data centres globally consumed over 45 Gigawatts
of electricity per year, or 2% of global electricity supply. • This demand has been forecast to grow to as much as 450
Gigawatts, or 20% of global electricity supply by 2030.• In addition, Bitcoin mining currently consumes nearly 8
Gigawatts of electricity with demand subject to macroeconomic and global monetary trends
What is Metcalfe Energy?
Metcalfe Energy aims to feed the increasing demand for cheap electricity from data center operators and Bitcoin miners by generating electricity at low cost from gas flared by the oil and gas industry globally.
Our team of negotiators and engineers, starting in Mexico where conditions are most favorable, can develop sites producing over 50MW of electricity at a time for a long term price of between $0.03 and $0.04 per kWh at high availability with raw project IRRs, before any debt gearing, well over 30%.
Initial Opportunity
• 700 MMSCFD total potential natural gas supply in Mexico from gas flares and under-developed wells• Single land flares emitting 20 MMSCFD of natural gas
(enough to produce over 80MW of electricity)• This gas was subject to a deal which would have created a
new gas pipeline to Southern Mexico as well as an LNG terminal• Due to a change of government the previous deal fell
through, but Metcalfe Energy retains the key players, market intelligence and experience from that deal
Long Term Opportunity
• Interest already shown from the oil and gas industry in Colombia• Strong connections and opportunities all over South America• Once the business is cash flowing and we have demonstrated
proof of concept we can not only target flares but also stranded gas deposits• Opportunity to increase margins by offering more services,
vertically integrating via Bitcoin Mining hosting, cloud mining rental, mining Bitcoin ourselves or becoming a data center operator.• Total opportunity is much greater than the 60 Gigawatts of
flared gas. Metcalfe aims to become a 100 Gigawatt energy producer by 2030.
Typical Development Economics
• 20 MMSCFD flare• $0.035 per kWh electricity cost (conservative)• 80 Megawatts total generating capacity (conservative)• $40 million project CAPEX (conservative)• $0.8 million per month OPEX (including natural gas)• $2 million per month revenue• $1.2 million per month profit• 36% IRR (before debt gearing/leveraging and before
overhauls/downtime)• Comfortably over 100% IRR with leverage
Typical Development Economics
0% 10% 20% 30% 40% 50% 60% 70% 80%
Best / Worst Case
Total CAPEX
Hard Cost
Soft Cost
Revenues
Startup
OPEX
IRR Tornado
Over Under
-50.00 0.00 50.00 100.00 150.00
Best / Worst Case
Total CAPEX
Hard Cost
Soft Cost
Revenues
Startup
OPEX
MillionsNPV Tornado
Over Under
Growth Philosophy
• Metcalfe Energy will grow and scale with a ‘software first’ approach, turning our business processes into web applications and using best available technology where possible, with blockchain highlighted as having great potential as an engineering quality assurance tool. • We aim to remain lean, dynamic and continuously scalable,
and eschew the mistakes of present day engineering companies by learning from the successes of tech companies such as Uber and Facebook who have grown and scaled as enabling and disintermediating software platforms as opposed to production and man-hour billing machines.
The TeamThe Team
Antonio PrinceMexico Negotiations and Strategy Advisor35 years of experience in the oil, gas, geothermal, petrochemical, electricity and renewable industries. 25 years at Schlumberger in 13 countries with positions held in management.
Guillermo RomeroMexico Engineering AdvisorWith 38 years of experience in the definition of strategies and the development of projects of oil and natural gas production facilities. Guillermo is recognized as an international expert in fast track projects.
John TomineyCo-Founder/CEOJohn has been working in business development in Mexico's oil and gas industry for close to ten years now. Developing projects for Schlumberger, Technip FMC and the British Government in Mexico has allowed John to establish himself as a seasoned operator at senior executive level across the sector.
Patrick MockridgeCo-Founder/CTOPatrick has a unique set of skills intersecting businesses at all scales from start ups to large multinational corporations in the oil industry as a process engineer and technology as a founder and software developer. Patrick is a proven thought leader, multidisciplinary engineer and business strategist.
