NH 3 The Other Hydrogen TM N

NH 3 – “The Other Hydrogen TM” N. Olson P. E. , J. Holbrook Ph. D.

Oil Experts See Supply Crisis in Five Years International Energy Agency July 10, 2007

Mid East

Energy Independence Goals l Use U. S. Resources for U. S. Energy Needs l Eliminate Petroleum Imports l Provide a Bridge to Renewable Energy l Protect the Environment l Create U. S. Jobs/Improve Economy l Eliminate NH 3 Imports

Background Information

The Fossil Fuel Era % of total 100% Traditional Fossil Fuels Renewables - Biomass - Wind - Water - Animals - Mechanical - Combustion - High temperature - Electric - Low temperature - Catalysts 75% 50% 25% 0% 1800 1850 1900 1950 2000 2050 2100 2150 Source: Ewald Breunesse, Shell Netherlands, 14 th IAMA Annual World Conference, Montreux, June 14 th 2004

Oil Reserves

World Crude Oil Reserves Jan 2007 1, 317. 4 billion barrels 7, 749 quads (Coal: 22, 171 quads) (NG: 5. 500 quads) OPEC Share (68%) Compiled from “Worldwide Look at Reserves and Production, ” Oil & Gas Journal, Vol. 104, No. 47 (December 18, 2006), pp. 24 -25.

Natural Gas Reserves

Source: Petro. Strategies, Inc. World Total: 5500 Tcf, 5500 quads (Petroleum: 7749 quads) (Coal: 22, 171 quads)

Coal Reserves

World Recoverable Coal Reserves, Jan 2003 997. 7 billion short tons 22, 171 quads Oil: 7, 749 quads NG: 5. 500 quads USDo. E - EIA, unpublished data, Coal Reserves Database (April 2007). World Energy Council, 2004 Survey of Energy Resources, Eds. J. Trinnaman and A. Clarke (London, UK: Elsevier, December 2004).

The Ideal Transportation Fuel • Can be produced from any raw energy source (i. e. wind, solar, biomass, coal, nuclear, hydro etc. ) Don’t exclude wind, solar, hydro and nuclear energy as potential transportation fuel sources!!! • Is cost effective • Has significant storage and delivery systems already in place • Environmentally friendly • Can be used in any prime mover (i. e. diesel engines, fuel cells, SI engines, gas turbines, etc. ) • Has a proven, acceptable safety record • Produced in the U. S.

NH 3 Basics 1 l l l Ammonia (NH 3) can be produced from any raw energy source, including all fossil, renewable and nuclear sources. Ammonia is cost competitive with gasoline as a transportation fuel Ammonia has extensive, worldwide transportation and storage infrastructure already in place Ammonia is very environmentally friendly when used as a transportation fuel and produces only N 2 and H 20 at the tailpipe with low-cost emissions controls. Ammonia has been successfully demonstrated in SI engines, CI engines, and fuel cells.

NH 3 Basics 2 The U. S. imported over 50% of it’s nitrogen fertilizer for the first time in 2004 and continues to import increasingly more than it produces domestically l Ammonia high cost partially due to highly seasonal nature of use (inefficient use of infrastructure) l Ammonia has been produced from coal in Beulah, North Dakota for decades and with CO 2 capture since 2000. China has huge coal to ammonia capacity. l

g cn

Freedom Car Targets w/ 2005 NH 3 Comparison Parameter (2005) Units 2007 2010 2015 NH 3 Spec. Energy k. Wh/kg 1. 5 2 3 3. 0 Energy Density k. Wh/L 1. 2 1. 5 2. 7 Storage Cost $/k. Wh 6 4 2 2. 1 $/gal. Gas equiv 3 1. 5 Fuel Cost ammonia 1. 7* *$280/ton

Fuel Costs l l l l Ammonia - $200/metric ton* Methanol - $0. 79/gallon* Ammonia - $350/short ton (coal) Gasoline - $2. 50/gallon Ethanol - $2. 20/gallon Gasoline - $3. 50/gallon Wind NH 3 -$1000/short ton (estimate) *June 2003 Chemical Market Reporter $/MMBtu $10. 01 $13. 68 $19. 26 $21. 92 $28. 93 $30. 69 $55. 02

Future Compatibility Hydrogen + Nitrogen Ammonia Storage & Delivery – Pipeline, Barge, Truck, Rail Stationary Power Fertilizer Transportation

Delivery Infrastructure

Ammonia Storage & Transport

NH 3 and Gaseous H 2 Transport 736 t/day H 2 104, 350 GJ/day H 2 (104 bar) 1, 531 t/day H 2 217, 065 GJ/day 2. 22 k. Whe/kg H 2 10, 580 GJ -4. 9% (loss) 12”, 1 k mile H 2 Pipeline H 2 Comp. 690 bar 75, 712 GJ 72. 5% eff. 4. 16 k. Whe/kg H 2 19823 GJ -19. 0% (loss) 1. 85 k. Whe/kg H 2 8815 GJ -8. 5% ( loss) NH 3 Synthesis 0. 31 k. Whe/kg H 2 1477 GJ -0. 7% (loss) 12”, 1 k mile NH 3 Pipeline 0. 9 184, 507 GJ 84. 9% eff. Assume: H 2/NH 3 used to gen. k. Whe @ 55% Eff.

NH 3 and Cryogenic H 2 Storage 2, 664 t H 2 377, 701 GJ H 2 (104 bar) H 2 Liquefaction 10. 0 k. Whe/kg H 2 165, 313 GJ -44. 7% (loss) Liquid H 2 Storage 1. 82 k. Whe/kg H 2 8672 GJ -2. 3% ( loss) 203, 716 GJ 53. 9% eff. 2, 664 t H 2 377, 701 GJ 2. 22 k. Whe/kg H 2 18, 409 GJ -4. 9% (loss) NH 3 Synthesis 0. 03 k. Whe/kg H 2 432 GJ -0. 1% (loss) NH 3 Liquefaction 0. 18 k. Whe/kg H 2 2597 GJ -0. 6% (loss) Liquid NH 3 Storage 0. 9 Assume: H 2/NH 3 used to gen. k. Whe @ 55% Eff. 320, 636 GJ 84. 9% eff.

U. S. Ammonia Pipeline 3000 Miles Total

Natural Gas Pipelines

Crude Oil Pipelines

Refined Products Pipelines

California Hydrogen Stations http: //www. fuelcellpartnership. org/ fuel-vehl_map_print. html

Iowa Hydrogen Refueling Stations Over 800 retail ammonia (the “Other Hydrogen”) outlets currently exist in Iowa.

NH 3 Refueling Station Underground 12, 000 gallon Chilled NH 3 (Atm Press. )

Ammonia Refueling NH 3 Original Photo: Clean Fuels Inc.

Anhydrous Application Anhydrous ammonia expands into a gas as it is injected into the soil where it rapidly combines with soil moisture.

End Use Applications • Spark-Ignition Internal-Combustion Engines (w/ethanol) • Diesel Engines (w/biodiesel and/or DME) • Direct Ammonia Fuel Cells • Gas Turbines • Gas Burners (including residential furnaces)

Health And Safety l l l l NH 3 is classified by DOT as a non-flammable liquid an inhalation hazard (not a poison) Iowa Energy Center funded comparative quantitative risk assessment CQRA study completed by March 2009, Quest Consultants Inc. , Norman, Oklahoma “Safety assessment of ammonia as a transportation fuel”, Nijs Jan Duijm, Frank Markert, Jette Lundtang Paulsen, Riso National Laboratory, Denmark, February 2005 WWI (Fritz Haber) Terrorists Ammonia plant operators Ammonia safety is an engineering issue. It can be made to be as safe as is necessary. It is safer than propane and as safe as gasoline when used as a transportation fuel.

Scapegoat? Ammonia Ephedrine and Pseudoephedrine Methamphetamine NH 3 C 10 H 15 NO C 10 H 15 N VOC’s + NOx + O 2 + Sunlight = ozone = smog+ NOx + H 2 O + ammonia = ammonium nitrate = smog. If the NOx doesn’t form ammonium nitrate it goes to ozone (worse) Fossil fuels (the source of NOx ) are the problem, not ammonia Ammonia is actually used to clean up NOx emmissions at coal plants

CQRA Study – NH 3, Propane, Gasoline Transport Trucks

CQRA Study – NH 3, Propane, Gasoline Refueling Station 10 -6

Progress 1 • Flex fuel (gasoline/ammonia) vehicle successfully driven from Michigan to California (nh 3 Car) • Over 50% efficiency demonstrated in a SI engine (HEC) • Irrigation pump demonstration with SI engine (HEC) • Direct ammonia fuel cell bench-scale demonstration (Howard U. ) • 1. 5 Mw wind to ammonia demonstration funded, construction underway (U. Minn. Morris) • 95% ammonia, 5% diesel, 110% rated power in a John Deere diesel engine (IEC/ISU)

Progress 2 • New ammonia synthesis technologies under development that match well with renewable energy sources. • Ammonia trademarked as “The Other Hydrogen TM” (HEC) • Comparative quantitative risk assessment (CQRA) report completed March 2009 projected completion date. (IEC) • Ammonia Fuel Network (AFN) website established • Participation in AFN annual conference increasing 50% per year. • Focused RFP for ammonia research/demonstration issued, grants awarded (IEC) • AFN plan to petition DOE for listing of non-carbon NH 3 as official alternative fuel

Economic Impacts T Boone Pickens - $700 Billion new U. S. industry.

Summary 1 l l l Ammonia meets most 2015 Freedom Car targets today Ammonia has a very extensive, worldwide transportation and storage infrastructure already in place. With relatively minor modifications, existing oil and natural gas pipelines could be converted to transport NH 3 Only H 2 and NH 3 have no tailpipe greenhouse gas emissions Only H 2 and NH 3 can be made from electricity and water (+air for NH 3) Ammonia can replace diesel fuel, gasoline, natural gas and propane in all fuel applications NH 3 is the world’s most hydrogen dense chemical by volume, ~50% greater than liquid hydrogen. Results in outstanding green energy storage capability.

Summary 2 l l l l NH 3 from coal, natural gas and nuclear energy now NH 3 from renewables in the near future (Including wind, solar, OTE and hydro!) NH 3 diesel (CI) and spark-ignition (SI) engines now Direct NH 3 fuel cells in the near future NH 3 is not a toxic chemical! It is an very prevalent, naturally occurring chemical Any known transportation fuel has some associated safety risks but NH 3 is as safe as gasoline and safer than propane when used as a transportation fuel. NH 3 looks very good now and in the future Hydrogen stored, delivered and utilized in the form of NH 3 may be the key to cost-effective, near-term U. S. A. energy independence