HOUSTON – A startup called Twelve is focusing on technology at its new demonstration site in Washington state. Their goal is to produce e-fuels and e-materials that can compete in price with those made from bio-based and recycled materials.
E-fuels get their name because they use electricity to turn water and carbon dioxide (CO2) into hydrogen and carbon monoxide (CO). These raw materials can then be used to create fuels and chemicals that can be easily used like traditional fuels.
However, e-fuels have gained a reputation for being very costly. According to the International Air Transport Association (IATA), the production cost of e-fuels can be up to 12 times higher than conventional fuels. In the case of sustainable aviation fuel, the costs can even be double.
To combat high production costs, Twelve is implementing various cost-saving designs and technologies. One major change is using a CO2 electrolyzer, which simplifies one of the most expensive parts of making e-fuels.
Twelve aims to bring its product prices in line with renewable alternatives, especially when taking carbon credits and other incentives into consideration, as stated by co-founder and CEO Nicholas Flanders in a recent interview.
In the long term, the company hopes that the costs of production will align with the price of renewable power.
TWELVE DEVELOPS SMALL-SCALE PLANT
Twelve’s facility in Moses Lake is designed to produce 40,000 gallons of e-jet fuel each year, combining the CO2 electrolyzer with other equipment. So far, the jet fuel produced meets industry specifications, though the output is modest compared to traditional operations.
The company is exploring additional sites in the U.S. that could generate tens of millions of gallons annually.
REDUCING THE HIGH COSTS OF E-FUELS
Twelve has managed to cut production costs by removing the need for a reverse water gas shift reaction, a step some e-fuel producers still utilize.
This reaction converts CO2 and green hydrogen into carbon monoxide (CO) and water. It’s costly because it requires significant energy and produces water, which isn’t used in the final products.
Instead, Twelve’s CO2 electrolyzer directly converts CO2 into CO, reducing hydrogen consumption by a third. The subsequent production process resembles that of other e-fuel manufacturers, starting with water electrolysis to create green hydrogen.
The CO and hydrogen are then processed in a Fischer-Tropsch reactor to create synthetic oil, which is further refined to produce a mix of fuels, including sustainable aviation fuel and diesel.
COST-CUTTING STRATEGIES
Twelve incorporates several strategies to further reduce costs, such as:
- Using high-purity CO2 from ethanol plants, which needs less treatment.
- Utilizing power from hydroelectric plants, which typically offer lower energy costs.
- Establishing long-term contracts for CO2 and power, providing pricing stability for customers.
- Improving yields and efficiencies in some of the thermochemical steps.
- Employing a modular design for plants.
- Implementing proprietary reactor technology.
- Future facilities could be strategically located to minimize peak power costs.
TWELVE’S SUSTAINABILITY FOCUS
The company aims to compete in the sustainability market, which heavily relies on regulations. In the U.S., blenders can use e-SAF to meet requirements under the Renewable Fuel Standard (RFS).
States like California, Hawaii, New Mexico, Oregon, and Washington have their own Low Carbon Fuel Standard (LCFS) programs, which mandate that fuels must have increasingly lower carbon footprints.
The EU also has introduced the Renewable Energy Directive III (RED III), setting targets for greenhouse gas reductions and renewable energy consumption in transport and industry.
In light of these regulations, Twelve has secured several agreements for sustainable fuel, including:
- A 14-year e-SAF offtake agreement with IAG, which will receive 785,000 tonnes (260 million gallons) of e-SAF.
- Alaska and Microsoft have committed to purchase undisclosed amounts of e-SAF.
- Twelve has also signed contracts to provide SAF certificates to Autodesk, Boston Consulting Group, and Shopify to help offset their travel-related emissions.
ANOTHER PATH FOR RENEWABLE CHEMICALS
If successful, Twelve’s process could offer a new method for the chemical industry to produce renewable plastics and chemicals. Most current bio-based technologies face limitations and can spark debates about competing for food resources.
By using air and water to create essential chemical components, Twelve avoids these concerns. Carbon monoxide produced can be transformed into methanol, and naphtha cracking can yield olefins and aromatics.
These advantages extend to fuels such as ethanol, biodiesel, renewable diesel, and sustainable aviation fuel (SAF). For Twelve, challenges lie in the cost of power and the innovative nature of its technology. Their next objective is to demonstrate the viability of their production process at their new plant.
Article by Al Greenwood.
The image shows Twelve’s e-fuels facility, known as AirPlant One. Photo by Twelve.
