Presentation in BECCS Workshop Edinburgh, Scotland, 4 th of December 2009

Presentation in BECCS Workshop Edinburgh, Scotland, 4 th of December 2009

1. Biorecro in Brief

Biorecro AB Focus solely on BECCS Swedish business (AB) Founded in 2007 Owned by Swedish, British and US private investors and the management team Financially backed by Swedish and Norwegian state innovation funds We develop BECCS carbon credits

Our market Biorecro brings together: Biomass CCS Carbon markets Customers in the voluntary and nation level compliance markets 140 120 100 80 60 40 20 0 The global carbon markets, in billions of USD 2005 2006 2007 2008

Biorecro AB Board of Directors Lennart Byström, Chairman Biorecro, CEO Occam AB, entrepreneur Henrik Karlsson, president Biorecro, entrepreneur Magnus Rehn, fmr CEO Tagmaster AB, advisor to Swedish Globalisation Council Mattias Söderhielm, fmr Passagen, FramFab, Bredbandsbolaget, entrepreneur Anna Krohwinkel, researcher, Stockholm School of Economics, SADEV, Swedish National Audit Office Advisory Board Mihai Gherman, investment mngr NC Advisory, fmr McKinsey&co Johan Gustafsson, founder and chairman Hattrick.org Lars Kristoferson, fmr Secretary General of WWF Sweden, prof Intl. Env. Policy, Sthlm Univ. K.G. Lindström, financial mngr SonyEricsson, fmr CFO Kenya Oil Kenneth Möllersten, researcher, Swedish Energy Agency Michael Obersteiner, researcher, IIASA and UN hosted Group on Earth Observations Staffan Riben, fmr CEO Statoil Sverige and director Statoil ASA Elisabeth Ten Brink, coordinator Highwire, Stanford University Sandy Torres, publicist & mngr music industry, Florida Peter Wassberg, senior advisor ADL, fmr VP Volvo Lastvagnar AB

Network

BECCS RD&D and Networking Norwegian-Swedish BECCS R&D project ( 350.000) co-funded by Innovasjon Norge and Tillväxtverket Preparing BECCS demos with PCOR and MGSC Seminar in Stockholm in June 2009 on CCS and BECCS together with Shell, Schlumberger, Confederation of Swedish Enterprise, ZERO, Sargas, the Norwegian Embassy etc Cooperation on BECCS related article in Global Environmental Change Expert reviewers on a IEA-GHG technical BECCS report Discussing major BECCS research program with Mistra

2. Why BECCS?

Too much CO 2 in the atmosphere CO 2 How do we put it back? Crucial for ambitious climate scenarios (350, 400 ppm)?

Carbon Cycle CO 2

Existing Systems CO 2 Energy Materials

Add CCS -> BECCS CO 2 BECCS - Bio Energy with Carbon Capture and Storage A negative emission technology Energy Materials

System comparison CO 2 CO 2 CO 2 CO 2

Trillion USD Cost of meeting mitigation targets 20 18 16 14 12 10 8 BECCS Fossil fuels with CCS 6 4 2 0 200 250 300 350 400 450 500 550 ppm CO2 Source: Azar et al. 2006

3. Case: BECCS in Sweden

-COSTS- Pulp and paper: Similar cost structure as for Energy Cost of BECCS in Sweden BECCS systems in Sweden cost 70-90/ton stored CO 2 Black liquor gasification and ethanol production early opportunities 66% Pulp and Paper sector: Average weights of individual components of total CCS cost BIG emission points 27% 7% Transportation Storage Capture Sources: Zantioti et al, Opportunities and Societal Costs of Introducing the BECCS Technology in Sweden, CEMS at Stockholm School of Economics, 2009; m.fl. 16

Pan-nordic BECCS system CO 2 sources in Sweden and Finland Norwegian North Sea storage sites

-COSTS AND REDUCTION POTENTIAL- GHG Mitigation, Sweden 2020 Källa: Möjligheter och kostnader för att reducera växthusgasutsläpp i Sverige, McKinsey & Company, 2008

GHG Mitigation, Sweden 2020, with BECCS Reduktionskostnad Kronor per ton CO2e 38,8 miljoner ton CO2e utsläppsreduktion 6 000 BECCS, pappersmassa, mindre 4 000 2 000 0-2 000-4 000 2 4 CCS, stål och cement Energieffektivisering, biobränslen, mm. BECCS, pappersmassa, större BECCS, energi, större BECCS, energi, mindre 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 Reduktionspotential Miljoner ton CO2e 1000 kronor per ton CO2e -6 000 Källor: Zantioti et al, Opportunities and Societal Costs of Introducing the BECCS Technology in Sweden, CEMS at Stockholm School of Economics, 2009; Möjligheter och kostnader för att reducera växthusgasutsläpp i Sverige, McKinsey & Company, 2008; m.fl.

-COSTS- Energi 65,5 5,2 GHG Mitigation, Sweden 2030 1,1 8,1 1,8 Miljoner ton CO 2e Referensscenario och åtgärder under 1000 SEK/ton till 2030 8,4 Industri 28,2 Bostäder 1,8 23,4 Total reduktionspotential för BECCS (31,8 Mton CO2) Transport 20,5 0,6 1,8 0,0 0,6 19,7 Avfall 0,4 Jordbruk 9,5 2030 referens Energi Industri CCS Industri övrigt Energi BECCS Industri BECCS Bostäder och lokaler Transport Avfall Jordbruk 2030 efter åtgärder Källor: Zantioti et al, Opportunities and Societal Costs of Introducing the BECCS Technology in Sweden, CEMS at Stockholm School of Economics, 2009; Möjligheter och kostnader för att reducera växthusgasutsläpp i Sverige, McKinsey & Company, 2008; m.fl. 20

4. Swedish BECCS Pilot

BECCS Pilot Opportunities in Skåne Sedimentary subsurface Biogas upgrading with pure CO 2 -streams Cost effective BECCS pilot Source: Ekström et al, CO2-lagring i Sverige, Elforsk 2004

Thank you!

Contact Primary point of contact: Henrik Karlsson + 46 707 12 75 69 henrik.karlsson@biorecro.se Secondary points of contact: Lennart Byström +46 708 533 221 lennart.bystrom@biorecro.se Josef Wiklund +702 01 26 91 josef.wiklund@biorecro.se www.biorecro.com

Appendix CO2 Emission Demand and Supply

Demand CO 2 Emissions Price Emissions Quantity

Supply Negative CO 2 Emissions Price Negative emissions Quantity

Global Zero Emission System Price P Emissions Negative emissions Quantity

Carbon Negative System Price Emissions Negative emissions Emissions < Negative emissions Quantity Confidential