1 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
eShuttle® EDC ProcessParadigm Shifting Technology
IHS Global Chlor-alkali, Vinyls and Polyurethanes Conference
October 7, 2020
2 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20202
Agenda» Introduction to Chemetry
» Overview of eShuttle® EDC Process
» Tour of EDC Demonstration Facility
» Impact of eShuttle® EDC Technology
» Introduction to eShuttle® PO Technology
3 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
Introduction to Chemetry
4 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20204
Chemetry Overview» Funded by leading energy investors and US
Department of Energy
» World class laboratories and demonstration
facilities with 100,000+ R&D hours
» Strategic partnership with engineering and
technology licensing leader - TechnipFMC
» Patents: 60+ allowed and 30+ pending
» Technology proven at pilot scale and
partnerships for commercialization for EDC
» 3 MT/day EDC Demo Plant operational 2022
» Propylene Oxide technology currently being
validated at Chemetry Pilot Plant
2017 Kirkpatrick Honor
Award Recipient
2018 American Chemical Society
Green Chemistry Award
5 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20205
The Commodity Chemical Problem» HIGH ENERGY CONSUMPTION
– Accounting for > 600,000 MWh of electricity daily
» HIGH OPERATING COSTS
– Plants uneconomic in high energy price regions
» ENVIROMENTAL IMPACT
– Worldwide CO2 impact of >160 BTA
– International markets rely on mercury and asbestos
» HEALTH & SAFETY CONCERNS
– Numerous accidents involving chlorine gas
» NOT GOING AWAY
– >>$100BB industry producing essential chemicals used
in 41% of goods
6 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20206
The Solution - Chemetry’s eShuttle® Platform
7 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20207
Overview of eShuttle® EDC Process
®
8 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20208
eShuttle® Platform - Next Generation Technology✓ Reduces power consumption by 25-50%
1 Plant = CO2 Savings of 100,000 EV’s
✓ Intrinsically safer process
✓ Same products from same feedstocks
✓ Proven at pilot scale
✓ Key strategic partnerships in place
✓ Shut-down economics
9 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20209
eShuttle® EDC is Commercialization Ready
2012
Chemetry-TechnipFMCCommercial Agreement
2016
2018
2020
2014eShuttle® Process
Conception
Laboratory Validation
eShuttle® Pilot Plant Construction
eShuttle® EDC Demo Plant Agreement
eShuttle® Demo PlantConstruction
Cell scale-up and manufacture
10 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202010
EChlor-Alkali = 3.0V EeShuttle™ = 2.4V
eShuttle® Process Simplified2NaCl + 2H2O + C2H4 → H2 + 2NaOH + C2H4Cl2
Cl-
CATHODE
-+
ANODE: Cu+ Cu2+ + e-
E˚ = 0.159 → 0.7VCATHODE: 2H2O + 2e- H2 + 2OH-
E˚ = -0.83V
Na+
NaCl
H2
OH-
NaOH
CATION
MEMBRANE
ANION
MEMBRANE
CuCl
CuCl2ANODE
Homogenous Catalysis Reactor
Ethylene
H2O
EDC
11 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202011
eShuttle® EDC Process Proven at Pilot Scale
✓ Fully integrated and automated facility
✓ 36 months of operation achieving key performance metrics
12 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
Demonstration Facility» Maceio, Alagoas State, Brazil
Map and photos courtesy of Braskem, SA
13 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
Facilities Location
PONTAL DA
BARRA
TRAPICHE
MACEIÓ
MARECHAL
DEODORO
14 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
Chloralkali Plant
Chlor-Alkali plant is located on the coast a few kilometers south of Maceio, 200
meters from the Mundau lagoon and 100 meters from the Atlantic Ocean.
Atlantic Ocean
Green Belt
Maceio city
15 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
Demo Plant Location
16 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202016
Overview of Demonstration Plant
17 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202017
Electrolyzer
18 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202018
Side View of Electrolyzer and Frame
19 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202019
Top of Reactor Tower
20 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202020
Project Timeline» Construction through Q4 2021
» Transport and assembly on site – Q1 2022
» Commissioning and operations – Q1 2022 through Q2 2023
» Site visits possible beginning in Q2 2022
21 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
Impact of eShuttle® EDC Technology
22 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202022
Mercury Cell Chloralkali Plants» Number of plants - 22
» Capacity - 1,570 KTA
» Power consumption - 5.4 million
MWh/yr
» Power savings - 2.3 million MWh/yr
» Cost reduction - $70 million/yr
» GHG reduction - 1.5 million MT
CO2/per year
Capacity and baseline cost data courtesy of IHS Markit
23 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202023
Diaphragm Chloralkali Plants» Number of plants* - 34
» Capacity - 10,900 KTA
» Power consumption – 30.9 million
MWh/yr
» Power savings - 9.2 million MWh/yr
» Cost reduction - $267.8 million/yr
» GHG reduction - 6.1 million MT CO2/yr
* - Not including plants committed to PO production
Capacity and baseline cost data courtesy of IHS Markit
24 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202024
Older* Membrane Chloralkali Plants» Number of plants - 95
» Capacity - 13,713 KTA
» Power consumption - 36.2 million
MWh/yr
» Power savings - 8.9 million MWh/yr
» Cost reduction - $354 million/yr
» GHG reduction - 5.9 million MT CO2/yr
* - Plants built before 2000
Capacity and baseline cost data courtesy of IHS Markit
25 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202025
The Economic Value of eShuttle® EDC» Potential Savings for the average plant in each decile on the cost curve
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
1 2 3 4 5 6 7 8 9 10
Mil
lio
n U
S$
pe
r ye
ar
Decile of Cost Curve
Annual Cost Savings for an average plant in each Decile
Annual Savings (25% savings) MM$ Annual Savings (30% savings) MM$ Annual Savings (40% savings) MM$
26 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
Preview of the eShuttle® PO Process
27 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202027
» Chemetry process reduces power, NaOH, and wastewater
requirements
– Chemetry process saves 45+ tonnes of water for every tonne of PO
– 60% less energy versus traditional PO process
» Ability to leverage EDC
development work and pilot facility
» Pilot facility designed, constructed,
and producing PO
» Clear economic advantage
and market demand
– $500+MM additional NPV per plant*
Second Product - eShuttle® PO Process
2016
Chemetry-TechnipFMCCommercial Agreement
20182019
2020
2017Laboratory Validation
Pilot Plant Construction
*Based on Industry Validated Assumptions
Process Optimization
28 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202028
PO Process Overview: Process Loops
Overall Reaction is: C3H6 + ½ H2O + ¼ O2 → C3H6O + ½ H2
29 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202029
PO Process Overview: Key Advantages
Conventional
eChem Cell
Chlorohydrin
Reactor
PO
Reactor
O H
Cl
2 NaCl
O
2 NaOH
Chemetry
eChem Cell
Chemetry
Bromohydrin
Reactor(s)
PO
Reactor
O
1 NaOH
H2O
1 CuBr2
1 CuBr
Conventional Chlorohydrin Process
Chemetry eShuttle® Process O2
Cl2
Power savings:
Lower voltage
from eShuttle™
Zero-Liquid Discharge
from high concentration
saponification
Power savings: with
oxybromination,
current cut in half
H2O
OH
Br
NaBr
30 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202030
eShuttle® Platform Summary» EDC Technology on path for commercialization
– Demonstration Plant in operation in 2022
– Reduced operating expense and inherently safer process
– Partners are in place for scale up and commercialization
» PO Process being optimized in Pilot Plant
– Lower Capital Costs and Operating Expense than current processes
– Zero Wastewater generation and lower GHG Generation
– Seeking Demonstration Partner
» Chemetry and the eShuttle® Platform are focused on reducing power
consumption and environmental impact of Commodity Chemicals
31 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020
Thank you!
» Robert Snyder
» Chief Strategy Officer
» Chemetry Corporation
» 11500 Dolan Rd.
» Moss Landing, CA 95039
» M - +1 404 823-3902