Air Capture & Carbon Negative Technology - Economics & Engineering - Graciela Chichilnisky (October 17, 2012 @ Cambridge University)

1. 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

2. 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?

3. 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

4. Global Risks
• Climate Change
• Biodiversity Extinction
• Clean Water scarcity
• Life in the Seas going extinct
Avoiding Extinction

5. 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

6. Sources: Earthtrends Database of the World
Resource Institute (WRI) http://earthtrends.wri.org/
Columbia Consortium for Risk Management
(CCRM) www.columbiariskmanagement.net 6

7. 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

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 8

9. 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

10. 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

11. Sustainable Economics
2009 The newly created G-20 requires
change: a Sustainable World Economy
How to do it

12. Changes Articulated by the
United Nations
Kyoto Protocol

13. The Kyoto Protocol
Carbon Market
International Law since 2005
Compulsory Carbon Markets now exist in 4
continents:
EU ETS, Japan, Australia & California USA

14. December 2011:
Kyoto Protocol extended 3 years
in Durban COP 17
• Existing KP limits valid until 2015
• New global emission limits pledged for 2020

15. The Carbon Market
- by its author -
• What is it?
• What it is not

16. Emission Limits
are the basis of Carbon Market
How does it Work
Carbon Makes
Clean Energy CARBON CHANGES THE
Dirty pays
profitable PRICES ARE $25/TON ENTIRE
clean – ZERO
Dirty Energy THE Missing EMITTED GLOBAL
overall costs
expensive and Signal ECONOMY
Undesirable

17. The Missing Signal
• If we destroy all trees & make toilet paper our economy improves – why?
• Because Toilet Paper has Market Value & Trees do not.
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

18. 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)

19. 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

20. 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

21. 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

22. Where are We?
What comes Next?

23. What to do?
• Changing International Law
• Changing Economics
We may just have to do it
• For the survival of our Species

24. 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

25. 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

26. 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

27. 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

28. 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)

29. The Global Commons
New Economics
From maximizing profits to
economic progress
that ensures survival of our species

30. Technology Urgently Needed
• To Reduce Carbon from the Atmosphere
• In a Profitable Way
The Word needs Energy
CLEAN ENERGY FOR DEVELOPING
NATIONS

31. Why Carbon Negative Technology™
Carbon Neutral is not enough Reducing CO2 Concentrations in
• Neutralizing emissions does not prevent
the Atmosphere
CO2 Parts per Million (PPM)
800
further increases in atmospheric CO2
700
• Even the most aggressive efficiency Business as Usual
improvements and renewables adoption 600
are unlikely to keep CO2 concentration at 500 Constant Growth
the generally agreed 450ppm to avoid 400
catastrophic climate risk Wedges
300 Approach /
Negative Carbon is the solution1 200
Stabilization
Global
Thermostat
• Air capture enables direct and rapid 100
reduction of CO2 concentration 0 Hazardous Level
450 ppm
• 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
GT’s technology directly reduces
1 United Nations Headquarters, New York, November 12, 2009. Presentation by G.
Chichilnisky on "The Rising Tide at Copenhagen:
carbon concentration in the air,
A Win-Win Solution for Industrialized and Developing Nations“
making carbon negative possible
Global Thermostat Company Confidential Page 31

32. Engineering:
Closing the Carbon Cycle for Sustainability
A Key Strategy for Environmental Protection, Energy
Security, and Economic Development

33. 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

34. 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

35. Markets for Captured CO2
Storage Enhanced Oil Algae-Based
Recovery* Biofuels*
*EOR and Algae-based
biofuels represent most
significant opportunities
for commercial applications
of CO2 captured using
GT’s technology
Hydrogen- Products
Based Fuels cement, fertilizer, plastic
s, greenhouses
Global Thermostat Company Confidential Page 35

36. Global Thermostat:
Captures CO2 from Air
Transforms CO2 from a Global Threat
Into A Massive Profit Opportunity
Benefits the Environment
globalthermostat Company Confidential 2

37. 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

38. Leadership Team
Graciela • World leading economist, entrepreneur, inventor, & executive Key Advisors
Chichilnisky • Founder CEO of FITEL & Cross Border Exchange, financial technology
Ed Hotard
companies Former COO, Praxair
Managing • Authored carbon market of Kyoto Protocol (EU ETS), and formal theory of
Director Sustainable Development Eric (Ric) Redman
President, Summit Power
• PhDs (2) in Mathematics and in Economics, MIT and UC Berkeley
• Tenured Professor Columbia University, previously Harvard & Stanford Ron Chance
Emeritus Science Advisor, Exxon
Rocco Fiato
Accelergy, Exxon
Richard Kauffman
CEO, Energies
Peter • Leading physicist, R&D energy executive - 20 year career as head of R&D
Eisenberger at Bell Labs and Director Nicholas Eisenberger
• EXXON Global R&D, Vice Provost Columbia University Pure Energy Partners
Managing • Expertise in innovation around CO2 - renewable gasoline, chemicals, Ben Bronfman
Director materials Global Thermostat
• Founding Director Princeton University Materials Institute
• Founding Director Columbia University Earth Institute Chris Jones
Georgia Tech
Roger Cohen
Ex-Exxon
Edgar • Chairman, Endeavor Global
Bronfman, Jr. • General Partner, Accretive LLC Michael Fleisher
• Former President and CEO of the Seagram Company Bain, Gartner
Chairman • Former Chairman and CEO, Warner Music Group Eric Redman
• Recently and successfully sold Warner for $3.3 billion President, Summit Power
Sasha Mackler
Summit Power
globalthermostat Company Confidential 11

39. CO2 Management and Commercialization
39

40. GT Pilot at SRI - October 1, 2010 – Commercial Demonstration Fall 2012
globalthermostat Company Confidential 16

41. 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

42. Global Thermostat - CONFIDENTIAL 42

43. 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

44. 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

45. Emissions Scenarios…
Global Thermostat - CONFIDENTIAL 45

46. Future Atmospheric Concentrations…
Global Thermostat - CONFIDENTIAL 46

47. What Carbon Negative Can Achieve…
Global Thermostat - CONFIDENTIAL 47

48. The Cost of Atmospheric CO2…
Global Thermostat - CONFIDENTIAL 48

49. 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
Carbon-Negative Required use, efficiency, point-
source sequestration)
– To reduce atmospheric
concentrations faster than the natural Negative Carbon
absorption rate Technology (such
as Global
– To achieve a safe level of CO2 Thermostat) with
concentration aggressive
renewable energy
Air Capture Can Make Going
Carbon Negative Possible 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

50. A Sustainable Solution
Close the carbon cycle –CO2 from air to make the
energy we need-
ENERGY 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

51. 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

52. 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
Fuels,
Algae Fuel
Solar Dewatering Electricity &
Production Production
Energy Biochar
Waste
water Treated Drinking
Desalination
Wastewater 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

53. 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

54. CLOSING THE CARBON CYCLE
FOR ENERGY, ECONOMIC, AND CLIMATE SUSTAINABILITY 54

55. 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

56. 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

57. Technology Operation
Ambient air
OR Monolith Step 1
Air-flue gas blend
Contactors + Air Input
Sorbent
GT Module “Cartridge”
• GT uses Corning
Adsorption monolith contactors
Phase similar to those in your
cars tailpipe
• Contactors provide
high surface contact
areas at low
Regeneration pressure drop
Phase • Enables movement of
large volumes of air
with effective contact
of CO2 at low cost
• 40 minute cycle
Global Thermostat - CONFIDENTIAL 57
57

58. Technology Operation
Ambient air
OR
Monolith Step 2
Air-flue gas blend Contactors + CO2 Capture
Sorbent
GT Module
“Cartridge”
• GT sorbents proven
Adsorption highly effective by
Phase Georgia Tech -
confirmed by
SRI, BASF, and NETL
• BASF process to
deposit immobilized
Regeneration
amines in pores of the
Phase
contactor walls at high
loading
• Dramatically reduces
heat required
compared to liquid
Global Thermostat - CONFIDENTIAL
based CCS 58
58

59. Technology Operation
Monolith Step 3
Contactors + Regeneration
Sorbent
GT Module
“Cartridge”
• CO2-rich sorbent is
Adsorption heated with low-
Phase temperature process
heat (90-105C) steam
• CO2 is collected and
sorbent is regenerated
Regeneration • CO2 can be stored or
Phase used in multiple
commercial
applications
• 4 - 10 minute cycle
105C Steam CO2 Collection
Global Thermostat - CONFIDENTIAL 59
59

60. 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

61. The Global Thermostat
Carbon dioxide
concentration
decreasing
ENERGY
Atmosphere
800

62. Contact
Graciela Chichilnisky
Co-Founder and Managing Director
chichilnisky1@gmail.com
Peter Eisenberger
Co-Founder and Managing Director
peter.eisenberger@gmail.com
Global Thermostat Confidential 62

63. 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