Air Liquide’s CCS initiatives at Rotterdam- Green Hydrogen (NER 300) - CO2 Hub with JV partners

Brussels, 27/11/2013 l Kiewiet, Jacques l Air Liquide Industrie B.V.

27-11-20132 Air Liquide, world leader in gases for industry, health and the environment

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■ Air Liquide’s NER300 proposal consisted of Green Hydrogen in Rotterdam

■ At a later stage, Air Liquide could consider deployment at its Antwerp facility

Green Hydrogen opportunities in the Benelux

Rotterdam:

• up to 500 kt/y Antwerpen:

• up to 550 kt/y

27-11-20133 Air Liquide, world leader in gases for industry, health and the environment

Air Liquide’s Green Hydrogen Project

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R’dam with ROAD

(EEPR + Dutch support):

R’dam with ROAD + Green Hydrogen (NER300 + Dutch support):

27-11-20134 Air Liquide, world leader in gases for industry, health and the environment

Air Liquide’s evaluation of NER300

Facts:

■ Air Liquide spent 4 years developing a viable and solid CCS proposal

■ Dutch subsidy secured (meanwhile withdrawn); final conditions under negotiation

■ Major condition precedent: NER300 funding

What went wrong?

■ AL was unable to produce the Final Confirmation letter, because the project economics as calculated under NER300 program were not matching Air Liquide’s own economics

■ Full clarification of this misalignment was (due to NER300 competition + confidentiality reasons) only possible after the Final Award selection

The Green Hydrogen project was not awarded with NER300 and stopped

27-11-20135 Air Liquide, world leader in gases for industry, health and the environment

Main difficulties in developing CCS in Europe

■ “Usual” liabilities for emitters

■“Usual” liabilities for E&P operators

■New and unacceptable liabilities during injection and xx yrs after closure

Civil Code Environmental damages Climate damages (ETS)

Capture X X X

Transport X X X

Storage X X X

1. RES has an Investment hurdle; Industrial CCS also has an operational hurdle (Operation cost > ETS) Is a Performance grant the right tool?

2. Transport & Storage synergy is essential for developing CCS, though:■ Support programs only focus on ‘point-to-point’ solutions ■ Support schemes are managed by different DG’s + MS ■ Transport & Storage is not core for emitters

How to develop (essential) synergies between CCS projects (clusters)?

3. London Protocol: cross border CO2 Transport & Storage (e.g. EOR case)

4. ETS + CCS Directives are linked via an ETS opt-in of a CO2 storage site

End of presentationThank you for your attention