Download A Brief History of Western Economics

Air Capture
&
Carbon Negative Technology™
Economics & Engineering
Graciela Chichilnisky -- www.chichilnisky.com
Columbia University and Global Thermostat – www.globalthermostat.com
Cambridge University
October 17 2012
A Human Dominated World
Human Beings are today the largest geological
force in the planet
We are changing the planet’s atmosphere, its
body of waters, and the complex web of species
that makes life on earth
Climate Change?
The Anthropocene
The change we are producing will be read in rock formations
for thousands of years
Geologists define a new geological era - the ‘Anthropocene’ –
follows the Holocene – starting 1945
The Bretton Woods Institutions after
WWII led to
Globalization of Western Economics
Global Risks
•
•
•
•
Climate Change
Biodiversity Extinction
Clean Water scarcity
Life in the Seas going extinct
Avoiding Extinction
Are Humans Next?
• Need Action Now
• Waited too long
• Industrial economies 20% of world population cause
most of world’s C02 emissions – the North
Energy from fossil fuels
45% of global emissions
$55 Trillion Infrastructure
89% based on fossil fuels (IEA)
Clean Energy is the Only Solution
Sources: Earthtrends Database of the World
Resource Institute (WRI) http://earthtrends.wri.org/
Columbia Consortium for Risk Management
(CCRM) www.columbiariskmanagement.net
6
The North and the South
• Since 2000, developing nations that did not yet
complete their industrialization are the engine of
growth of the world economy – the South
Developing nations are for the first time the largest growth sector in the world
economy – largest emitters in the future?
• Creation of G-20 in 2009:
Advocating Sustainable Development
GDP and Carbon Emissions
Source: World Bank (2009) and UN Millennium
Development Goals Database (2009)
Columbia Consortium for Risk Management
(CCRM) www.columbiariskmanagement.net
8
GDP and Carbon Emissions
Source: World Bank (2009) and UN Millennium
Development Goals Database (2009)
Columbia Consortium for Risk Management
(CCRM) www.columbiariskmanagement.net
9
Present & Future Energy Demand
• 15 TW: Current use
• Double global use by 2030
• 10 fold increase by end of XXI Century (IEA)
The World Needs More Energy
Today Energy = CO2 Emissions
Sustainable Economics
2009 The newly created G-20 requires
change: a Sustainable World Economy
How to do it
Changes Articulated by the
United Nations
Kyoto Protocol
The Kyoto Protocol
Carbon Market
International Law since 2005
Compulsory Carbon Markets now exist in 4
continents:
EU ETS, Japan, Australia & California USA
December 2011:
Kyoto Protocol extended 3 years
in Durban COP 17
• Existing KP limits valid until 2015
• New global emission limits pledged for 2020
The Carbon Market
- by its author -
• What is it?
• What it is not
Emission Limits
are the basis of Carbon Market
How does it Work
Dirty pays
clean – ZERO
overall costs
Carbon Makes
Clean Energy
profitable
Dirty Energy
expensive and
Undesirable
CARBON
PRICES ARE
THE Missing
Signal
$25/TON
EMITTED
CHANGES THE
ENTIRE
GLOBAL
ECONOMY
The Missing Signal
•
•
If we destroy all trees & make toilet paper our economy improves
Because Toilet Paper has Market Value & Trees do not.
– why?
We lack Market Prices
New Market prices = New Values
New costs and New benefits
The Carbon Market
Provides the Missing Signal
•
•
1997: KP Placed Limits on industrial emissions
2005: KP Carbon Market International Law
New Markets
• SO2 market in CBOT – successful & 20 years
old
• New markets for water and for biodiversity
• (Chichilnisky (1992, 1996, 2000, 2002, 2009,
2010, 2011)
The Carbon Market
• Trades $215 Bn/year EU ETS
• Reduced 37% EU emissions
• CDM transferred $50 Bn for clean energy
projects in poor nations
• Changes US$55 Trillion energy infrastructure
Carbon Market
Links to Global Economy
Everything is made with energy
Economic growth = Energy Use
Link to Energy
Carbon Market provides Missing Signal
New Market Prices = New Values
FOCUS of Carbon Market
• Capping Emissions
• We can’t get there without emissions reductions
Markets for trading a Global Public Good:
Compensates bringing down Atmospheric CO2
Creating Equity and Efficiency
Closing the Carbon Cycle
Where are We?
What comes Next?
What to do?
• Changing International Law
• Changing Economics
We may just have to do it
• For the survival of our Species
Change International Law
Basic Needs
• 1974 This author created Basic Needs within the
Bariloche Model of the World Economy
• 1002 The new concept of Basic Needs becomes
the basis of Sustainable Development and is
voted by 150 nations at UN Earth Summit in Rio
Brazil
• 2009 G-20 adopts Sustainable Development
Sustainable Development
Change International Law
The Carbon Market
• 1997 The Carbon Market - designed and written by the
author into the UN Kyoto Protocol - international law since
2005
• Since 2005 Productive clean CDM transfers to developing
nations $50 Bn
• 2012 EU ETS Trades $215 Bn/year, decreased 37% EU
emissions since it became law
• Makes profitable the use of clean energy for the production
of all goods and services
• Changes the energy foundation of the Global Economy
• China ratified the Kyoto Protocol and since 2005 leads the
World in Solar and Wind markets
• US did not and we are left behind in clean technology
Change International Law
The Green Power Fund
• 1997 Sustainable Development requires Carbon Negative
Technology™
• $200Bn/year private public Green Power Fund to support
Sustainable Development in the short and the long term – and
change the global energy industry
• Uses Kyoto Protocol and its Carbon Market to fund Carbon
Negative Power Plants - in LA. Africa & 43 Small Island States
• 2009 GPF Created by the author in Copenhagen COP 15
• 2011 Partially approved as the $200 Bn/year Green Climate
Fund in Durban COP17 December 2011
New types of Markets = New GDP
• Market economics can be made consistent with sustainable
goals
• But markets themselves must change
• Individualistic markets must evolve into new types of
markets that I postulated - markets for the global commons
– which incorporate connections between people and value
Valuing the Global Commons
• They are slowly emerging due to new scarcities: carbon
market I created within the Kyoto Protocol, international
law since 2005 trading $200Bn/year; SO2 markets in CBOT,
new markets for water and for biodiversity - Chichilnisky 1992, 1996,
2000, 2002, 2009, 2010, 2011, Chichilnisky Heal and Starrett 1994, Chichilnisky & Heal 2000
New Global Markets value privately produced public goods:
the Global Commons
Green Capitalism in the 21st Century
• The basis exists: international law and new
economics
• Theoretically and in practice
• New markets for the global commons, new
growth theory, new cost benefit analysis and
new GDP measures, new international law
• New international law – self-funded and
creating economic value (Kyoto Protocol)
The Global Commons
New Economics
From maximizing profits to
economic progress
that ensures survival of our species
Technology Urgently Needed
• To Reduce Carbon from the Atmosphere
• In a Profitable Way
The Word needs Energy
CLEAN ENERGY FOR DEVELOPING
NATIONS
Why Carbon Negative Technology™
Carbon Neutral is not enough
• Even the most aggressive efficiency
improvements and renewables adoption
are unlikely to keep CO2 concentration at
the generally agreed 450ppm to avoid
catastrophic climate risk
Negative Carbon is the
solution1
• Air capture enables direct and rapid
reduction of CO2 concentration
• GT allows for the capture of even more CO2
than we are loading into the atmosphere or
that the earth’s systems can absorb –
Negative Carbon
1 United Nations Headquarters, New York, November 12, 2009. Presentation by G.
Chichilnisky on "The Rising Tide at Copenhagen:
A Win-Win Solution for Industrialized and Developing Nations“
Global Thermostat
CO2 Parts per Million (PPM)
• Neutralizing emissions does not prevent
further increases in atmospheric CO2
Reducing CO2 Concentrations in
the Atmosphere
800
700
Business as Usual
600
500
400
300
200
Constant Growth
Wedges
Approach /
Stabilization
Global
Thermostat
100
0
Hazardous Level
450 ppm
GT’s technology directly reduces
carbon concentration in the air,
making carbon negative possible
Company Confidential
Page 31
Engineering:
Closing the Carbon Cycle for Sustainability
A Key Strategy for Environmental Protection, Energy
Security, and Economic Development
Global Thermostat
• GT creates Carbon Negative Power Plants™
• More Energy for Development
• While Cleaning the Atmosphere
• GT Transforms the worse emitters – the fossil
power plants - into carbon sinks
• GT technology makes solar plants more
profitable and even faster carbon sinks
Closing the Carbon Cycle™
• GT Technology Captures Carbon from Air
• Inexpensive: Uses Low Process Heat
• Cogenerates Power Production with Carbon
Capture
• With GT the More Power is Produced – the
More Carbon is Reduced
• Makes Coal Plants Carbon Negative
• Makes Solar Power Plants even more Carbon
Negative
Markets for Captured CO2
Storage
HydrogenBased Fuels
Global Thermostat
Enhanced Oil
Recovery*
Products cement,
Algae-Based
Biofuels*
*EOR and Algae-based
biofuels represent most
significant opportunities
for commercial applications
of CO2 captured using
GT’s technology
fertilizer, plastics,
greenhouses
Company Confidential
Page 35
Global Thermostat:
Captures CO2 from Air
Transforms CO2 from a Global Threat
Into A Massive Profit Opportunity
Benefits the Environment
globalthermostat
Company Confidential
2
Global Thermostat:
Transforms Energy and Fuel Markets
Enables National Security
& Economic Development
Turns CO2 from a global liability
and pollutant into a profit center
and source of clean fuel
Closing the Carbon CycleSM
globalthermostat
Company Confidential
3
Leadership Team
Graciela
Chichilnisky
•
•
Managing
Director
•
•
•
World leading economist, entrepreneur, inventor, & executive
Founder CEO of FITEL & Cross Border Exchange, financial technology
companies
Authored carbon market of Kyoto Protocol (EU ETS), and formal theory of
Sustainable Development
PhDs (2) in Mathematics and in Economics, MIT and UC Berkeley
Tenured Professor Columbia University, previously Harvard & Stanford
Key Advisors
Ed Hotard
Former COO, Praxair
Eric (Ric) Redman
President, Summit Power
Ron Chance
Emeritus Science Advisor, Exxon
Rocco Fiato
Accelergy, Exxon
Richard Kauffman
Peter
Eisenberger
Managing
Director
•
•
•
Leading physicist, R&D energy executive - 20 year career as head of R&D
at Bell Labs and Director
EXXON Global R&D, Vice Provost Columbia University
Expertise in innovation around CO2 - renewable gasoline, chemicals,
materials
Founding Director Princeton University Materials Institute
Founding Director Columbia University Earth Institute
•
•
•
•
•
Chairman, Endeavor Global
General Partner, Accretive LLC
Former President and CEO of the Seagram Company
Former Chairman and CEO, Warner Music Group
Recently and successfully sold Warner for $3.3 billion
•
•
CEO, Energies
Nicholas Eisenberger
Pure Energy Partners
Ben Bronfman
Global Thermostat
Chris Jones
Georgia Tech
Roger Cohen
Edgar
Bronfman, Jr.
Chairman
Ex-Exxon
Michael Fleisher
Bain, Gartner
Eric Redman
President, Summit Power
Sasha Mackler
Summit Power
globalthermostat
Company Confidential
11
CO2 Management and Commercialization
39
GT Pilot at SRI - October 1, 2010 – Commercial Demonstration Fall 2012
globalthermostat
Company Confidential
16
September 2012
First Commercial Demonstration Plant at SRI
Commenced March 2012 - TRL 9 expected Fall 2012
Uses heat from SRI Co-gen Power Plant
GT Tandem + Carburetor lowest cost embodiment full
integration
Cost Breakthrough
Powered by low-cost, process heat from SRI Co-gen
Plant
Eliminates transportation costs
Modular Design
5,000-1,000,000 tons CO2/year
Locates anywhere with 100 C heat source
Flexible Integration
Into Legacy or New Industrial Facilities
Carbon Negative Solution
Captures more CO2 from SRI fossil fuel Co-gen
power plants than is emitted by plant
Global Thermostat
Company Confidential
Global Thermostat - CONFIDENTIAL
42
Closing the Carbon Cycle
You need to know where you are going to get there…
• Sustainability Requires Humans Close the Carbon Cycle
– Climate Sustainability
– Energy Security
– Economic Development
• A Human System that Closes The Carbon Cycle
– Flexibility in location of sources and sinks
– Connectivity between different components
– Serve both todays fossil fuel and tomorrows renewables
– Consistent with existing infrastructure
– Provide net carbon negative technologies to offset carbon emitters
– Value carbon so as to support positive feedbacks
– New types of cooperation between countries and companies
Global Thermostat - CONFIDENTIAL
43
Current Approaches to Climate Change
“Wedges” approach a good start…
– Sensible, diversified strategy based on existing pathways
– Portfolio of renewable energy and efficiency technologies
– Potential to keep CO2 below 500ppm (still 2x pre-indust.
level)
But may not be enough to avoid climate change…
–
–
–
–
Depends on continued net natural absorption rate
Does not address 2000’s already elevated emissions
Underestimates projected growth rate by factor of two
No solution past 2055
Climate will change destructively on its own
– Earth history has many climate disasters
– New York City under a 1 mile high ice sheet
A safe, effective, and affordable solution to climate change is still urgently needed
Global Thermostat - CONFIDENTIAL
44
Emissions Scenarios…
Global Thermostat - CONFIDENTIAL
45
Future Atmospheric Concentrations…
Global Thermostat - CONFIDENTIAL
46
What Carbon Negative Can Achieve…
Global Thermostat - CONFIDENTIAL
47
The Cost of Atmospheric CO2…
Global Thermostat - CONFIDENTIAL
48
The Need for Going Carbon Negative…
Carbon Neutral is not enough
Business as usual
– Neutralizing new and existing
emissions does not prevent
atmospheric concentration of CO2
from further increasing
– It doesn’t solve the climate risk
problem (reducing atmospheric
concentrations below 500 ppm)
7 Wedges (aggressive
renewable energy use,
efficiency, point-source
sequestration)
Carbon-Negative Required
– To reduce atmospheric
concentrations faster than the natural
absorption rate
– To achieve a safe level of CO2
concentration
Air Capture Can Make Going
Carbon Negative Possible
Negative Carbon
Technology (such
as Global
Thermostat) with
aggressive
renewable energy
Pacala and Socolow, Science, Vol 305, 8/13/2004, Pg 969.
Note: 7 Wedges refers to the seven stabilization wedges,
created by Wigley, Richels & Edmonds, necessary to achieve
an atmospheric concentration of CO2 of 500 ppm by 2125.
Global Thermostat - CONFIDENTIAL
49
A Sustainable Solution
Close the carbon cycle –CO2 from air to make the
energy we needENERGY SECURITY FOR ALL
̶
AIR AND WATER MORE EQUABLY DISTRIBUTED
CONTROL HUMAN CO2 INPUT TO CARBON CYCLE
̶
TEMPERATURE CONTROL
GREEN ENERGY FUND STIMULATES ECONOMIC GROWTH
̶
̶
STIMULATES TRANSITION TO CLOSING THE CARBON CYCLE
MONETIZE THE CO2 SO IT IS A VALUABLE AND NOT A POLLUTANT
Global Thermostat - CONFIDENTIAL
50
Renewable 95: Closing the Carbon Cycle
CONVERTING CO2 FROM AIR &
HYDROGEN FROM WATER
TO
95 OCTANE GASOLINE
Water Vapor and CO2
CO2 Capture
&
Hydrogen Conversion
95
Octane
Global Thermostat - CONFIDENTIAL
51
GT Project with Algae Systems
GT is developing a fully-integrated biorefinery
through a partnership with Algae Systems
• Produces carbon negative transportation fuels (diesel, jet, etc)
• Treats municipal wastewater and produces drinking water
• Generates green electricity and biochar fertilizers
CO2
Solar
Energy
Waste
water
Algae
Production
Dewatering
Fuel
Production
Fuels,
Electricity &
Biochar
Treated
Wastewater
Desalination
Drinking
Water
This unique combination of technologies provides critical municipal
services while producing energy in an embodiment that is
As Green As It Gets
Global Thermostat - CONFIDENTIAL
52
Geothermal Electricity + CO2
Collaboration with Green Fire Energy
– Uses CO2 instead of water
– 10-20% of circulating CO2 sequestered
Using CO2 captured by Global Thermostat
– Location flexibility of air capture
– Economic advantage of locating near use
– Increased geothermal locations accessible
Produces Carbon Negative electricity
Global Thermostat - CONFIDENTIAL
Page 53
CLOSING THE CARBON CYCLE
FOR ENERGY, ECONOMIC, AND CLIMATE SUSTAINABILITY
54
Global Thermostat
Our goal is to provide technology to:
̶
Facilitate the transition to a renewable future
• Our Carburetor Technology to Clean Fossil Fuel Sources
̶
Provide carbon for the renewable energy future
• Our Direct Air Capture Technology to Close the Carbon Cycle
̶
Provide a common technology platform
•
̶
Connects air and concentrated CO2 sources
Make money by doing good
We seek and welcome partners
̶
They have already been essential to our efforts
We are committed to broad dissemination
̶
Licensing model
Global Thermostat - CONFIDENTIAL
55
How GT Technology Works
“GT CARBON SPONGE”
Patented Carbon Sponge: porous block
coated with proprietary amine sorbents
Ambient air and/or flue gas goes through
and binds to sorbent
Carbon Sponge lowers into sealed
chamber
Low temperature process heat releases
pure CO2 gas for collection
Pipes to oil well, algae, etc.
And the cycle restarts…
Global Thermostat - CONFIDENTIAL
56
56
Technology Operation
Ambient air
OR
Monolith
Contactors +
Sorbent
“Cartridge”
Air-flue gas blend
GT Module
Adsorption
Phase
Regeneration
Phase
Global Thermostat - CONFIDENTIAL
Step 1
Air Input
• GT uses Corning
monolith contactors
similar to those in your
cars tailpipe
• Contactors provide
high surface contact
areas at low
pressure drop
• Enables movement of
large volumes of air
with effective contact
of CO2 at low cost
• 40 minute cycle
57
57
Technology Operation
Ambient air
OR
Monolith
Contactors +
Sorbent
“Cartridge”
Air-flue gas blend
GT Module
Adsorption
Phase
Regeneration
Phase
Global Thermostat - CONFIDENTIAL
Step 2
CO2 Capture
• GT sorbents proven
highly effective by
Georgia Tech confirmed by SRI,
BASF, and NETL
• BASF process to
deposit immobilized
amines in pores of the
contactor walls at high
loading
• Dramatically reduces
heat required
compared to liquid
based CCS
58
58
Technology Operation
Monolith
Contactors +
Sorbent
“Cartridge”
GT Module
Adsorption
Phase
Step 3
Regeneration
• CO2-rich sorbent is
heated with lowtemperature process
heat (90-105C) steam
• CO2 is collected and
sorbent is regenerated
Regeneration
Phase
105C Steam
• CO2 can be stored or
used in multiple
commercial
applications
• 4 - 10 minute cycle
CO2 Collection
Global Thermostat - CONFIDENTIAL
59
59
Closing the Carbon Cycle is Key
For Sustainable Carbon-Based Life: Close the Carbon Cycle…
Need Direct Air Capture
̶
̶
Carbon for a sustainable renewable energy future
Flexibility to provide sources and sinks
Need Negative Carbon
̶
Climate Security
Need Carburetor for transition
̶
̶
Short term carbon free products
Long term carbon negative products
Need a Green Energy Fund
̶
Global Economic Sustainability
Global Thermostat - CONFIDENTIAL
Page 60
The Global Thermostat
Carbon dioxide
concentration
decreasing
ENERGY
Atmosphere
800
Contact
Graciela Chichilnisky
Co-Founder and Managing Director
[email protected]
Peter Eisenberger
Co-Founder and Managing Director
[email protected]
Global Thermostat
Confidential
62
A Game Changing Company
Transforms Energy and Fuel Markets
Enables National Security & Economic Development
Turns CO2 from a global liability and pollutant
into a profit center & source of clean fuel
Closing the Carbon CycleSM
Global Thermostat
Company Confidential
Page 8