bound4blue concept applied to

the Chilean mining industry

Lorenzo Reyes-Bozo, Cristina Aleixendri Muoz, Jos Miguel
Bermdez Miquel, Carlos Fnez Guerra
 INTRODUCTION
Mining is the largest
economic sector in Chile
and the considerable
energy requirements
represent 20 - 40% of
operating costs.
The industry is heavily
dependent on other
countries for the supply
of this demand.
 THE PROBLEM
Chiles mining industry needs:

1) High quantities of cost efficient energy for their

processes.
2) Water, demand for water in Chiles mining
industry is set to rise.
3) To reduce their associated Greenhouse Gas
Emissions in order to comply with new
regulations.
THE SOLUTION: BOUND4BLUE
STEPS OF THE PROCESS
 VIDEO
3:09 min
https://vimeo.com/113636390
 HOW CAN WE DO IT P2G

Transfer of electricity into other demand sectors electricity, heat,

mobility and industrial use to fulfill ambitious political targets.
Power to Gas provides flexibility for the electricity system and thus
supports the integration of renewable energy.
Power to Gas uses existing infrastructure, e.g. natural gas network,
natural gas storage facilities and power generation facilities .
Power to Gas technology will be a key player for energy storage
especially long term storage in a future energy system.
Power to Gas technology is mature and ready for use.
HOW CAN WE DO IT P2G
HOW CAN WE DO IT P2G
HOW CAN WE DO IT P2G
 ADVANTAGES OVER CURRENT H2
PRODUCTION METHODS
Very low production cost.

Scalable production.

No visual impact, no fixed infrastructures.

No polluting emissions.

Moving production system.

Contribution to energy independence.

 WHY CHILE?
Chile has a unique global capacity
for energy production by means
of the wind as a renewable
energy source.
Just by taking into consideration
the land-based wind potential,
the Global Wind Energy Council
estimates that there is 40 GW
available to extract.
If we consider the wind capability
in the sea, this number would
increase considerably.
SYSTEM POWER OUTPUT

Under a wind-conservative scenario

Vw= 11-12 m/s 6,2 MW/ship
 ASSUMPTIONS
bound4blue fleet size: 100 ships
Nominal power at turbines per ship: 6,2 MW @ wind 11-12 m/s
Load factor for H2 for O2 generation: 70%
Power lost for auxiliary purposes: 10%
Load factor for P2G plant: 70%
Energy consumption for electrolysis: 4,65 kWh/Nm3
Average cost of natural gas in Chile: 0,7 $/m3
Cost of CO2 emissions: 5 $/Tn
P2G CAPEX assumptions for 2020 (with no electrolysis): 725 $/kW_CH4
P2G OPEX assumptions for 2020 (with no electrolysis): 73
$/kW_CH4/year
CO2 capture cost assumptions for 2020: 56 $/Tn
O2 market price: 1,45 $/kg
 PROFITABILITY ANALYSIS
Payback period: 9 years
6.000
Free CH4 from year 9
Anual EBITDA
Annual EBITDA
Revenue from O2 sales
5.000
Accumulated
Acumulated EBITDA
EBITDA
4.000

3.000
EBITDA [M]

2.000

1.000

-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
-1.000

-2.000
Year

We have considered CAPEX & OPEX of:

bound4blue ships operation, P2G plant and CO2 capture system
 SYSTEM CAPABILITES
Hydrogen production: 735.840.000 Nm3/year
Oxygen production: 370.258.000 Nm3/year
CH4 production: 183.960.000 Nm3/year

Revenues from O2 sales: 766 M$/year

Savings from CO2 emissions: 503 k$/year
PROJECTED ENERGY CONSUMPTION BY THE
CHILEAN COPPER INDUSTRY

Source: Cochilco, 2014

GLOBAL SYSTEM CAPABILITIES
Average wind of 11-12 m/s @ Nominal power per ship: 6,2 MW
Fleet size of 100 ships

CH4 production
184 million m3

1,72 TWh

4,41% of the expected demand in 2025

 HIGH SOCIAL IMPACT
Building a fleet of 100 ships would create
Turnover of more than 1.500 M for shipyards and
auxiliary industry
800 direct jobs operating the fleet
15,000 indirect jobs

And for our environment

100.000 Tn of CO2 less in our
atmosphere per year
 FINAL REMARKS
Chile is a country dependent on energy from other
countries.
Copper mining sector could be covered in a sustainable
way based on renewable energy.
Bound4Blue concept will be used to generate hydrogen
and oxygen at sea.
Hydrogen is transformed into synthetic natural gas or
synthetic diesel for use in industry, mining and
population.
Oxygen can be used in chemical and metallurgical
processes.
Thank you for your attention
Carlos Fnez Guerra - carlos.funez@cnh2.es
Lorenzo Reyes-Bozo - lreyes@unab.cl
Jos Miguel Bermdez Miquel - jmbm@bound4blue.com
Cristina Aleixendri Muoz - cam@bound4blue.com