❘ 1

Coal-Biomass Direct Liquefaction

R.F.BaumanP. Maa

S. ZaczepinskiApril 17, 2012

❘ 2

Accelergy Team Goals

● Economically produce transportation fuels from coal

● Provide technology with World’s highest thermal efficiency

● Minimize water use

● Ensure 100% Carbon Capture and Utilization (CCU)

❘ 3

International TeamCombines “Best” of East and West

Technology Providers

Demonstration Engineering Contractors

PARC

CCRI

❘ 4

Direct Coal Liquefaction Process Result of 30 Year Development Program

● Three scale-up steps (0.03, 1, and 250 T/D) to minimize risk

● Tested lignite, sub-bituminous, and bituminous coals extensively

● Defined impact of key variables on operability and productivity

– Included catalysts, reactor types, donor solvent, upgrading, etc.

• Equipment design guides developed during 1,000 B/D demo

• No need for additional equipment testing

● 1st and 2nd Generation DCL Processes declared Technically Ready

– Requires 0.1 T/D integrated confirmation run for new coals

❘ 5

Distinguishing Features of 2nd Generation Microcatalytic Coal Liquefaction (MCL)

● Based on ppm level Microcatalyst addition

● Eliminates solvent hydrotreater and associated energy loss

● Uses low recycle gas rates - minimizes compression and equipment cost

● Utilizes slurry liquefaction reactors

● Bottoms recycle

● Produces a raw 380°C minus product from liquefaction

● Fixed bed upgrading to premium, all transportation fuels product

Design offers highest thermal efficiency and lowest investment/operating cost

❘ 6

CCRI Pilot Plant Extensively Modified to Operate in MCL Mode

❘ 7

CCRI MCL Operations on Ordos Basin Coal

Up to 67wt% (maf) C5/380°C liquid produced from high inertinite, Ordos Basin coal

0 10 20 30

Days on Coal

Rela

tive

As

Cont

ent,

%

Condition 1

Condition 2

Yankuang Demo

For direct liquefaction, the ash level in the unconverted coal is a direct measure of conversion to liquid fuels and the stability of the operation.

❘ 8

MCL Successfully Demonstrated On Ordos Basin Coal

● Basis for Yankuang NDRC submittal

● Modified unit achieved 100% Service Factor

● No reactor deposits or solids buildup

● Operated without solvent hydrotreater

● Recycle gas rate minimized

● Liquid product 380°C Minus

❘ 9

Criterion Upgrading Demonstrated on Ordos Basin Product

● Raw MCL product upgraded to finished diesel and jet fuel

– Two stage upgrading utilized with Criterion catalysts

– Euro 4 blends prepared with Yankuang derived F-T diesel

– Jet fuel and U.S. diesel products also produced from MCL

● All diesel and jet fuel samples meet product specifications

– Final products free of sulfur, nitrogen, and oxygen

❘ 10

Upgrading of MCL Product to On-Specification Diesel or Jet Fuel Demonstrated

MCL derived fuels have high volumetric Btu content and excellent cold flow properties

Product U.S. Diesel Euro 4 Diesel (1) Jet Fuel

Specific Gravity 0.87 0.84 0.83

Combustion PropertiesSmoke Point, mm n.a. n.a. 24Cetane Number 47 52 n.a.

Cold Flow Properties. °CCloud Point < -35 < -10 n.a.Freeze Point n.a. n.a -64

Note: (1) Blend of Yankuang F-T and MCL diesel

❘ 11

Range of Commercial Applications Defined

● Based on Ordos Basin Coal

● All balanced plants (no import or export of power)

● Plants include onsites and offsites (coal drying, etc.)

● Finished products leaving plant battery limits

● Cases do not include Accelergy Carbon Capture and Utilization (CCU)

– Will be addressed in later slides

❘ 12

Accelergy Offers Highest Known Thermal Efficiencies

F-T MCL & F-T MCL Only MCL OnlyCoal Coal Coal Coal / Natural Gas

Typical GTL

(Yankuang)

40

45

50

55

60

65

70

75

80

Ther

mal

Effi

cien

cy, %

HH

V

❘ 13

CO2 Production Lower For High Efficiency Cases

1 2 3 420

30

40

50

60

70

80%

of F

eed

Carb

on to

CO

2

F-T MCL + F-T MCL MCLCoal Coal Coal Coal + Natural Gas

Typical GTL

❘ 14

Features of Accelergy TerraSync™ Carbon Capture and Utilization (CCU) Technology

● Converts CO2 into bio-fertilizer or soil remediation agent

● Continues to consume CO2 after application to fields or desert

– Typically 30 times the CO2 (over life time) required to produce TerraSync™

● Bio-fertilizer returns carbon from the atmosphere back into soil

– Restores soil fertility

– Fixes nitrogen from the air

● Can also be used as a soil conditioner

❘ 15

Integration of MCL and TerraSync™

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TerraSync™ CCU Advantages Over Carbon Capture and Sequestration (CCS)

● CCS

– Energy intensive

– Only applicable to areas with appropriate geologic structure

– Risk of future release

● MCL / TerraSync™ (CCU)

– Only requires processing of 1/30th of CO2 produced

– Pure CO2 available from MCL at pressure

– Ammonia byproduct available as nutrient for algae growth

– Waste heat available from MCL for drying

– Nitrogen fixation reduces need for synthetic fertilizers

❘ 17

Commercial Status

● Yankuang MCL / F-T Project submitted to NDRC

– 3.4 million metric tons/year fuels capacity

– Based on high inertinite, Ordos Basin coal

– MCL and Upgrading fully demonstrated

– Diesel meets Euro 4 specifications

– Utilizes TerraSync™ to offset CO2 emissions

– TerraSync demo scheduled to start 2nd Q

– Exceeds NDRC targets for thermal efficiency, water use, CO2 reduction

● U.S. Feasibility Studies focused on diesel and jet fuel

– Will take full advantage of available low cost, natural gas

❘ 18

Bright Future Predicted

● Accelergy only technology platform to fully meet NDRC requirements

– Offers route to offset China’s rapidly increasing oil imports

– Reduces concerns over oil availability and unstable price

– Extends life of coal reserves

– Produces required high quality diesel and jet fuel

– TCC evaluation confirms attractive economics

● Attractiveness improves when both coal and natural gas available

– Significantly reduces investment and increases efficiency

– Combination of coal and gas optimum; avoids CO2 production from coal or H2O production from GTL