Local Energy - Positive Impact

Hydrogen development strategy in Lorraine

March 7th 2024

FDE : MAKING NET ZERO HAPPEN

Developing the leading negative carbon energy producer

Present on all key sustainable energies

With a pan European footprint

Trusted by Tier 1 Partners

On track to achieve its FY26 objectives

  • 3,5 Million tons of CO2eq emissions currently avoided annually*
    Power - Gas - H2 - Heat

Producing in 4 countries: France - Belgium - Norway - Bosnia

C. 50 staff members in 5 locations

World Class clients : Engie, EDF, Gazel…

Strong financing partners: Rothschild AM, SocGen, BPI, ING Stable shareholders (Allianz, Amundi, Arbevel, HSBC…)

On track to achieve over 100 M€ of revenues and 50 M€ of EBITDA by FY 2026

  • 1,4 Million tons are certified - Sources: 2019 Ineris certification updated with a Global Warming Potential of 82,5 (AR6 - IPCC) and including the Béthune and Avion 7 site (FDE extrapolation), 2022 Polytechnic University Mons study

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FOCUS ON THE LORRAINE DEVELOPMENT… LORRAINE: 41 SITES CERTIFIED BY SPROULE

GERMANY

Dilingen

Völkingen

Sarrebrucken

MosaHYc pipeline

BLEUE LORRAINE

GAS CONCESSION

Saint- Avold

Pontpierre

Lachambre

Headquarters

First test site

GRAND EST (France)

10 KM

Bleue Lorraine Concession (100% FDE) - valid until 2040

Valorisation options

87 billions m3 of gas

H2 Hydrogen

resources

Gas

TO BE CONVERTED INTO

Power

LOW CARBON H2

Heat

CO2 Storage

Reserves

Development plan

Production lease granted

Hydrogen studies

1st site production

Certification (2016)

(2016 -2023)

(November 2023)

(2023-2024)

(2027)

1 - Certified Contingent Ressources (2C) Bleue Lorraine, and surrounding areas (MHA, 2018)

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…INCLUDING THE LATEST MAJOR NATURAL DISCOVERY

Dillingen

« Trois Evêchés » Permit Application

« Bleue Lorraine » Concession

Saarstahl

MosaHYc

CarlHyng

EmilHy

FOLS-1A

Significant discovery made in Folschviller (FOLS-1A)

Application for the « Trois Evêchés » permit (>2000 km2) submitted to secure the licence

  • Evaluation of potential
  • Pilot well
  • Production test and certification

New consortium REGALOR II with planned appraisal program

  • FDE
  • Academic partners (universities, research labs)
  • Institutional partners (national surveys, research centers)
  • Industrial partners (listed companies, SME)

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MARKET POTENTIAL: H2 & BLACK CARBON

Strategic location: 5 km away from the the MosaHYc (Moselle Saar Hydrogen Conversion) pipeline

Integrated into the Grande Region Hydrogen (GRH) initiative to develop a hydrogen ecosystem in the Grande Région, including Saarland (Germany), Lorraine (Grand Est) and the Grand Duchy of Luxembourg where large H2 consumers are operating

Consumption of H2 (excluding grey H2) is estimated to reach 20 billion tons by 2030 representing a market in excess of EUR 60 billion according to EU commission

Positioning black carbon as an added value by-product

Market for black carbone is estimated to EUR 11 billion and includes the following industries* :

Tyres (67 %)

Rubber (25 %)

Paints, surface treatments, inks, etc. (8 %)

* Etude Enerka, 2019

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A KEY PROJECT FOR THE REGION AND AN EXAMPLE FOR EUROPE

Industry /

Mobility

HH

H2

Lorraine

Bassin

Natural H2

Production

Plasma

Pyrolysis

Black

Carbon

Gas Production

CO2

Capture

Injection &

Storage

CRYO PUR

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LOW CARBON HYDROGEN PRODUCTION

1st axis: Developing low carbon hydrogen

15 years of work - Nearly €50 million invested by FDE

Important gas resources present in Lorraine coal: c. 87 billion m3 (2C)

42 production sites identified on the Bleue Lorraine concession granted in 2023

Objective: Replace imported energy with a low carbon H2 production

CH4 → C(s) + 2H2

POWER

H2

Plasma Pyrolysis

Technology under development

Produces carbon black/graphene as by-product

Plasma

No CO2 production

Reactor

Potentially competitive production cost

compared to green H2

Solid carbon

Illustration of a thermal plasma pyrolysis process

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WITH NATURAL H2 PRODUCTION AND CO2 CAPTURE AND RE-USE

2nd axis: Developing natural hydrogen

6 years of work in partnership with the University of Lorraine and the CNRS and the support of the Region and the State (State- Region Pact) - Nearly €5 million invested by FDE

Very high natural H2 concentration: 6.8% measured at 808m depth, 15% measured at 1093m

Objective: Set up local production of natural hydrogen

3rd axis: Developing CO2 capture to decarbonize industries and combine with H2

6 years of work in partnership with the University of Lorraine and the CNRS and the support of the Region and the State (State- Region Pact) - Nearly €5 million invested by FDE

Significant CO2 storage capacity demonstrated in the laboratory in Lorraine coal and possibility to enhance CBM production

Possibility to develop E-fuels

IMPLEMENTATION OF A UNIQUE CIRCULAR ECONOMY

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PLASMA PYROLYSIS : STANDARD MODULE APPROACH

PLASMA PYROLYSIS

Replicating the cogeneration business:

Production of black carbon - no CO2 emission

Modular and replicable

Within the existing regulatory framework

Modular approach / upscaling

Opportunity to create additional value selling black carbon

No competitor onshore Europe

Limited exposure for FDE: each selected site meets economical criteria

Industrial approach: standard module Ability to replicate during ramp-upphase

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H2 ECONOMICS IN BLEUE LORRAINE

Total CAPEX

Per28 M€ standard

Site

OPEX AND LOCAL

TAXES

2,3 M€ /year

PAY-BACK

< 7 years

ANNUAL ANNUAL

PRODUCTION REVENUES

680,000 kg H2

4,2 M€

2,200 Ktons black carbon

2,6 M€

IRR

> 10%

Minimum 2 to 4 Sites to be installed each year during 14 years

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La Française de l’Energie SA published this content on 08 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2024 14:22:28 UTC.