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Innovation project name:

Non-catalytic methane conversion in the microwave plasma torch

Sk Skolkovo Name of organization:

Plazma-conversion Ltd.

Moscow, 2015

The known technologies of production of synthetic liquid hydrocarbons (SLH) from

natural gas (GTL-productions) are not profitable in the small-scale sector. The

main reason is: the high cost of methane conversion to synthesis gas, as a key

stage of GTL-process (occupying from 50 to 70% of the cost of SLH production).

Significant volumes of associated petroleum gas (APG) and natural gas of distant,

hard to reach and small deposits are not involved into the processing.

For oil&gas and gas-chemical companies interested in processing of APG and

natural gas of distant deposits in the place of extraction, our solution is able to

provide an additional source of profit.

At the current moment cost-effective profitable small-scale technologies for

producing of syngas from natural gas are absent on the market.

Our project is able to ensure the profitability of small-scale GTL-productions and

solution of a largest problems: APG processing and the problem of "northern

delivery" (in the part of liquid motor fuels) (for Russia).

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1. The description of the problem on which decision the project is

aimed to:

The proposed technology of methane conversion in the microwave plasma torch ensures the possibility of

highly efficient and profitable small-scale production of synthesis gas - as a key stage of GTL production.

2. The description of proposed problem solution and its advantages:

Experimental confirmation of the effectiveness of the method:

Conducted experiments have confirmed the efficiency of method:

The conversion of methane to syngas (the proportion of methane flow

transformed into synthesis gas):

= 0,45 0,11 (4511)%;

The energy cost of production of syngas (Referred to 1 liter of methane) :

СH4 = (3,7 0,7) 10-2 kWh / liter;

Energy cost of production, referred to 1 liter of syngas:

sg (0,92 0,2) 10-2 kWh / liter;

The photography of microwave plasma torch in the zone of which the conversion

reaction takes place

Consumer benefits as a result of application of Project solution:

Profitable processing of today unused resources of APG and natural gas of small-debit and hard to reach

deposits. Source of additional profit.

Reducing by 2 times the energy consumption for a process of conversion of natural gas to syngas in

comparison with the traditional method of steam conversion.

Reduction by several times the capital costs at the stage of syngas production.

Source of additional profit for equipment manufacturers by reducing the prime cost.

Gas is supplied through the central coaxial electrode. After the

launch of magnetron the microwave radiation starts to accumulate

in a system of “rectangular resonator – coaxial tract”. During the

operation of the magnetron and the accumulation of microwave

energy the field strength at the end of the nozzle increases, and at

some point in time, reaches the breakdown magnitude. In this case

at the end of the nozzle in the jet of the working gas the breakdown

occurs and the field of gas discharge plasma is formed. This

plasma, because of its high conductivity, actually becomes an

extension of the inner electrode of the coaxial line, and the

electromagnetic wave can now spread further to coaxial, to the end

of the area occupied by the plasma, where the breakdown

conditions for adjacent area are provided again. Thus, in a working

gas jet the plasma torch is formed, the length of which can reach

tens of centimeters. Because of the electric field strength at the

nozzle end due to the accumulation of microwave energy in a

coaxial resonator can reach a significant value even at a not very

powerful magnetrons, the device can operate in a wide range of

gases and their mixtures.

It is revealed that the energy cost of producing synthesis gas

(referred to 1 liter of methane) is (3,7 0,7) 10-2 kWh / liter.

3. The description of the basic Project technology:

Scheme of layout of plasma

chemical methane

conversion reactor

1 - rectangular resonator 2 -

coaxial resonator 3 -

continuation of outer electrode

of coaxial waveguide (grid), 4

- working chamber of 5 -

viewing window 6 - microwave

discharge plasma 7 -

magnetron 8 - water supply

unit.

High energy efficiency of the conversion process due to

maximally complete transfer of microwave energy into

the working gas

Reduction by 2 times the level of the energy

consumption for the production of synthesis gas as

compared to existing solutions (up to ≈2 kWh/m3)

Process is non-catalytic

Process does not require the preliminary heating and

compression of the working gas

Space-saving, mobility

Periodicity of the process - instant start-up of device, the

insensitivity to the number of starts / stops

Relatively low capital costs

4. Competitive advantages:

Acting model of the reactor

of plasma chemical

methane conversion

Power: 1 kW

Productivity: 2*103 m3/year

Target market of Project (segments):

Russian market: $2,1 - $2,7 billion. Planned market share: 25-30%.

Global market: $6 – $9,4 billion. Planned market share: 5-10%.

Directions of Project commercialization:

Sale of licenses

Research contracts related with the introduction and development of technology

5. Market / Business model:

Comparison of Plazma-conversion Ltd’s solution with the most similar analogues:

6. Comparison with Competitors:

Key parameters

/ Solution

Plazma-

conversion

Ltd.

DavyProcess

Technology,

Mahler

Steam methane

reforming

LLC Gazohim-

Techno

Partial

oxidation of

methane

Haldor Topsoё,

Lurgi, TEC, JFE

Partial oxidation

of methane

ARCO, Kerr-

McGee, Marathon,

Repsol

Autothermal

methane reforming

Energy

consumption ≈2kW*h/m3 ≈4kW*h/m3 Exothermal

process

Exothermal

process ≈4kW*h/m3

Necessity of

using catalysts NO

Requires cobalt /

nickel catalyst

Requires nickel

catalyst

Requires cobalt

catalyst

Requires a highly

active nickel catalyst

Capital intensity Low High High High High

Special

conditions of the

conversion

process

Pressure

0,2-0,3 MPa

Pressure

2 MPa

Pressure

0.8 MPa

Pressure

3-4 MPa

Pressure

2-3 MPa

Price ≈$3 mln. No data ≈$8 mln. No data No data

In 2014, the project received Skolkovo participant status, which provided tax

incentives in the form of exemption from the duties of the taxpayer's income tax

and VAT for a period of ten years.

On fundamental research conducted in the GPI RAS, a working model of reactor

power of 1 kW has been created.

Installation experiments of plasma chemical methane conversion have been

conducted, positive results have been obtained.

Russian patents for invention and utility model have been obtained; PCT

application for the invention has been filed.

In 2015 - 2016 it is planned to create a working prototype of plasma chemical

methane conversion reactor and adjustment of optimal parameters of stability and

controllability of the process of plasma chemical conversion of methane

depending on the types of conversion.

7. Project current status:

The project team has been succeeded to conduct

an experiment on microwave conversion of

methane using principally different source -

GYROTRON. According to the first results

obtained in a single experiment, the energy cost

of carbon dioxide conversion can be as small as:

≈ 2,5 10-3 kWh / liter

Thus, working with the GYROTRON in pulse-

periodic mode with the pulsed power Pi ≈ 500 kW,

pulse duration τi ≈ 4 10-3 s and a repetition

frequency f = 50 Hz, it is possible to achieve the

productivity of one reactor:

W ≈ 2,2 – 3,5 106 m3/year

Modular configuration, placement in a standard

container (14 m2)

8. Parameters of planned prototype:

Purpose of investment:

• Creation and testing of a prototype of reactor of plasma chemical methane conversion:

– power: 600 kW.

– rated productivity: 2,2 – 3,5 mln m3 / year.

• Adjustment of optimal operating modes of reactor depending on the composition of the feedstock.

• Marketing measures on promotion of the technology to the market.

Exit Strategy:

• Investor’s sale of its share to the company-developer;

• Investor’s sale of its share to a third party;

• Joint sale of Project to a profiled strategic investor.

9. The need for capital investments / Offer to investor:

Needs capital investments: $0,95 mln.

Expect to attract funding under the scheme:

50% of the required amount - Skolkovo Foundation grant.

50% of the required amount - co-investor funds.

Share of investors' participation in the project: 10 - 25%.

Term return on investment: 4 years from the beginning of

the commercialization.

Proposal to partners:

Creation of joint ventures with engineering

companies for technology industrialization.

The acquisition of exclusive rights to the

use of technology in the region 1 (Europe):

$5.35 mln.

Patenting geography:

Russia, Britain, France, Germany, Italy, China, Canada, USA, Brazil, Malaysia, South Africa,

South Korea, Japan.

10. Patenting:

Intellectual property:

Number Name

Russian patent for utility model №124105 dated

10.01.2013, application №2012135708 dated

21.08.2012.

Microwave plasmatron.

Russian patent for invention №2486719 dated

27.06.2013, application № 2012117620.

The method of treatment, destruction and

conversion of gas.

Russian patent for invention №2513622,

application № 2012135387, priority 17.08.2012.

The method of microwave conversion of

methane-water mixture into the synthesis

gas.

Application PCT/RU 2012/056848, priority

17.08.2012

The method of microwave conversion of

methane-water mixture into the synthesis

gas.

11. Information about the project team:

Igor Cossyi – d. p/m. sciences (GPI RAS), Moscow

Scientific adviser of the project

30+ years in applied research in the field of plasma physics. Participation in

projects jointly with the Eindhoven Technical University, University of Knepper,

NWO, ISTC

Alexei Davydov – c. p/m. sciences (GPI RAS), Moscow

Leading researcher of the project

10+ years of experimental work in the field of low temperature plasma physics.

Participation in projects jointly with the IAP RAS, CNES, Chalmers University

of Technology

Renat Khabeev – General Director of the MC «Navigator» Ltd., Saratov

Venture Partner, Business Mentor of Project

15+ years of management of industrial enterprises (Plant Neftegazmash), the

establishment of partnerships with specialized companies. Creation and

management holding company LLC MC Navigator

Plazma-conversion Ltd. – was created for Project realization in 2013

12. Contact Information:

Plazma-conversion Ltd.

410005, Russia, Saratov, Bolshaya Sadovaya, 239, office 616.

phone: (8452) 459523, 459524, 459510.

e-mail: avdvoenko@gmail.com

Alexander Dvoenko

Director