Environment

CarbonSaver is an abatement technology. HENG from CarbonSaver reduces CO2 emissions from natural gas-fired equipment because for every tonne of carbon removed before combustion, approximately 3.7 tonnes of CO2 are avoided when HENG is burned. HENG also helps to prevent the formation of thermal NOx, because it allows for stable combustion at leaner gas mixtures to achieve lower flame temperatures than is possible with conventional natural gas. Finally, HENG can also improve engine efficiency and lower emissions of harmful pollutants because adding even small amounts of hydrogen reduces misfires and leads to more complete combustion of CO and other unburned hydrocarbons. 

CO2 Abatement
Regulatory requirements for the control of GHGs and air quality criteria emissions have become increasingly more stringent. CO2 is the GHG species that attracts the most attention in efforts to address climate change. Currently, the alternative approaches to decarbonizing natural gas before combustion to reduce CO2 include non-combustion process changes, such as improved insulation, tighter controls, optimized temperatures and waste heat recovery, and post-combustion capture of CO2 for sequestration, which include approaches based on a range of solvent and membrane capture techniques. CarbonSaver is complementary with both alternative approaches.

The CO2 abatement from CarbonSaver is realized from three principal sources. First, by lowering the carbon intensity of natural gas, HENG with 10% hydrogen by volume achieves CO2 reductions of approximately 4% from end-use equipment. Second, the increase in prime mover efficiency can reduce the amount of energy consumed for the same output, resulting in CO2 reductions from combusting less fuel. Third, by generating carbon from natural gas without the emissions, CarbonSaver avoids 100% of CO2 associated with conventional furnace black processes.

NOx Abatement
Regulatory requirements for the control of large engine and turbines emissions have become increasingly more stringent since the passage of the U.S. Clean Air Act Amendments of 1990. The emission species of greatest relevance to large engines and turbines is NOx, which is a precursor to ozone formation.

In the natural gas industry, an array of controls have emerged over the past decade to reduce NOx to the  3-5 grams per brake horsepower per hour (g/bhp-hr) range for large engines and to 25 ppm for turbines. This is generally seen as the first step in NOx reduction. The next step, which has recently gained traction among regulators, involves pushing operating limits on NOx emissions to 1 g/bhp-hr for large engines and 2 ppm for turbines. In general, new engines and turbines can achieve these goals. But for many operators of new and legacy equipment, the cost of ultra-low NOx and high-efficiency technology is prohibitive.

CarbonSaver can be integrated with new and legacy equipment, and the HENG helps to avoid the formation of thermal NOx, because it allows stable combustion at leaner gas mixtures to achieve lower flame temperatures than is possible with conventional natural gas. Operational studies involving the CarbonSaver with HENG in the range of 10% hydrogen suggest it is possible to reduce NOx to 1 g/bhp-hr in a lean burning engine and the 2 ppm range for turbines, while maintaining or increasing useful energy from the equipment. 

In the North American natural gas industry, interstate pipelines, local distribution companies (LDCs) and utility-owned power generation facilities are directly regulated with respect to the rates they charge, the access they offer, the location and construction of new assets and the refurbishment of older assets.  In order to build new facilities, or expand existing infrastructure, regulated companies must demonstrate to the regulators that the assets will serve the public interest and will realize significant environmental benefits. This involves installing improved emissions-reduction technologies on equipment to conform to U.S. Environmental Protection Agency rules and the Clean Air Acts, for example.  Typically, though, the best available emissions-reduction technologies carry a cost of abatement. But through the regulatory framework, franchise companies include emission-reduction investments in their overall cost of service that determines the rates they charge their customers and rate of return they can earn.

Because regulated natural gas companies include abatement technologies, such as CarbonSaver, in their cost of service for rate-making, AHI will focus its market entry activities in the following three regulated markets: interstate pipelines, local gas distribution and power generation.

The near-term market for CarbonSaver is gas transmission compressors, with a particular focus on the U.S. interstate pipeline system. AHI will also target selected unregulated gas producers and midstream companies with field compressors as well as organizations that own and operate combined heat and power capacity in NOx nonattainment areas. This will require 70% to 80% of the resources of the company from 2010 to 2012.

Longer-term markets for CarbonSaver is local gas distribution systems and utility-owned gas-fired turbines. AHI expects to enter these markets as the company completes its scale-up targets in the 2013 to 2015 timeframe and after it has implemented capital and operating cost reduction strategies for large industrial CarbonSaver plants. This will require about 20% to 30% of the resources of the company from 2010 to 2012.