uc davis ane symposium long beach, ca february 26, 2018 · 10 renewable jet astm d7566-11,...

UC Davis ANE Symposium

Long Beach, CA February 26, 2018

• Location Paramount, California

• Process Technology Catalytic Hydrotreating (Honeywell-UOP)

• Design Capacity 2,500 bbls/day

• Feedstock Inedible agricultural fats and oils

• Products Renewable F-76 and JP-5Renewable Jet, Diesel, Gasoline and Propane

3

Risk Elimination and Capital Efficiency

Significant Use of Reconfigured Assets….

Equipment Description

No. 5 HDS

Unit

> Reactor charge pump

> Recycle gas compressor

> Reactor feed / effluent heat exchangers

> Reactor charge heater / stripper reboiler

> Reactor effluent air condenser

> Reactor product separator

> Recycle gas amine scrubber KO drum

> Recycle gas amine scrubber tower

> Recycle gas compressor KO drum

Penex Unit

> Penex reactors

> Feed / effluent heat exchangers

> Reactor charge heater

Offsite

> Tallow feed tank

> Vegetable oil feed tank

> Diesel rundown tanks

> Jet rundown tanks

> Finished diesel tank

> Finished jet tank

Blueprint For Additional Locations…

Equipment Description

Select New

Equipment

Purchased

> Reactor feed / effluent heat exchangers

> Pretreat reactor

> Deox reactor

> Reactor effluent air condenser

> Reactor product separator

> Reactor charge pump

> Fractionation tower

> Hydrogen from Praxair facilities

The AltAir Paramount project reconfigured existing equipment

significantly reducing capex and expediting several permitting

requirements relative to a similar greenfield facility

The project also highlights a repeatable process that can be

used to efficiently deploy similar conversions at other refineries

Meets fuel performance requirements

Requires NO change to airplanes or engines

Requires NO change to infrastructure

Can be mixed or alternated with Jet-A fuel

4

PROJECT PARTNERS

…

…

CustomersRegulatory,Standards

&Associations Site/O&MSupply/MarketingWorkingCapital

FlightTestedJetEngineOEM’s

Construction

Technology ProjectFinance

Defense

Logistics

Agency

DPA

Title III

UOP Process Flow Diagram

Lipid Feedstock

deCO2

& HDOSeparation

Selective

Hydrocrack

Product

Recovery

Gasoline /

Chemicals

Jet

Diesel

H2

Water, CO2

Renewable

Products:

First reaction:Removes oxygen from natural oils and

produces diesel range waxy paraffins

Second reaction:"Cracks" diesel paraffins. End products are molecularly

identical to petroleum fuels/components

1

2 3

Removes O2, removes S & N,

converts triglycerides to straight chain

diesel range paraffins

Treating (Deoxygenation) Reactor

Graded bed layers

& demetallization

catalyst

Deoxygenation

catalyst

Removes remaining contaminants

(metals, phosphorous), controls

pressure drop, some saturation occurs

1Guard Reactor

Graded bed

layersDemetallization

catalyst

Demetallization

catalyst

2

Converts straight chain diesel range

parraffins to branched jet range

paraffins

Cracking Reactor

All beds

contain

cracking

catalyst

Guard

Reactor

Treating (Deoxygenation)

Reactor

Cracking

Reactor

Graded bed

layers

Demetallization

catalyst

Demetallization

catalyst

Graded bed

layers &

demetallaization

catalyst

Deoxygenation

catalyst

(BDO-200)

All beds

contain

cracking

catalyst

(DI-100)

3

Technology Guaranteed by

5

Synthetic Paraffinic Kerosene (SPK) from a Bio-Derived Source

PropertyJet A orJet A-1 SPK

ASTM Test Method

Camelina Jet Algae Jet

Fluidity

Freezing point, degrees Celsius max -40 Jet A -63 -55

D 5972, D 7153,

D 7154, or D 2386

-47 Jet A-1

Combustion

Net heat of combustion, MJ/kg min 42.8 44.0 43.5

D 4529, D 3338,

or D 4809

Nearly 4% more

energy content

23 °C Lower Freeze

Point

* Data Provided by UOP

Freezing point

High temperature thermal stability

Energy density

Storage stability

Elastomeric compatibility

Must be a replacement solution

Meet ASTM fuel specs

Have a low CO2 footprint

6

Renewable Jet

Meets fuel performance requirements

Requires NO change to airplanes or engines

Requires NO change to infrastructure

Can be mixed or alternated with Jet-A fuel

7

Customer Demand Signals

Rel

ativ

e C

O2

emis

sio

ns

as

com

par

ed t

o je

t fu

el

Jet fuel from crude oil

Liquid hydrogen from water and nuclear power

Jet fuel from plant sources

Jet fuel from coal with CO2

sequestration

Jet fuel from coal

0

1

2

3

*Based on a Life Cycle Assessment performed by Massachusetts Institute of Technology

8

84%

GreenJet - Reduces Greenhouse Gas by 84%*

Successfully Tested by Customers

January 7th, 2009 January 30th, 2009 August 2nd, 2009

November 23rd, 2009

October 13th, 2009

April 22nd , 2010March 25th, 2010 March 18th, 2011

December 30th, 2008

August 27th, 2010

• AltAir has been awarded and delivered 9 separate U.S. Department of Defense contracts • More than 30 successful military and commercial certification flights conducted

9

10

Renewable Jet

ASTM D7566-11, Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons was approved July 1, 2011 allowing renewable fuels to be blended with conventional commercial and military jet (or gas turbine).

ASTM D7566 allows up to 50 percent bioderived synthetic blending components to be added to conventional jet fuel. Hydroprocessed esters and fatty acids (HEFA), are identical to hydrocarbons found in jet fuel, but come from vegetable oil or from animal fats called tallow. The standard already has criteria for fuel produced using Fischer-Tropsch synthesis previously approved in 2009.

Mark Rumizen (FAA), who helped lead the work to revise the specification, heads the certification-qualification group for the Commercial Aviation Alternative Fuels Initiative (CAAFI)®. The relevant ASTM committee that revised the D7566 standard consists of more than 2,000 members representing 66 countries.

D7566 fuels also meet the requirements of ASTM D1655, Specification for Aviation Turbine Fuels, which has been used by the aviation community for decades for the quality control and distribution of conventional aviation turbine fuel. This allows thesenew D7566 fuels to be seamlessly integrated into the distribution infrastructure and onto certificated aircraft as D1655 fuels.

11

Policy Driven Pricing Disadvantage vs. Renewable Diesel

RFS Equivalency Value• Chicken and egg registration process• Lower RIN equivalency vs. Renewable Diesel

California LCFS• Program did not contemplate renewable aviation fuel• On track for program inclusion Q1 2019

Policy application can disadvantage renewable jet vs. renewable diesel• Rack fees vs. pipeline: LA CARB Diesel + CAR + LCFS Fee - ?

12

First Production

Jan 01, 2016: Plant started operating on (feed-in)

Jan 05, 2016: First on-spec production of Naval Distillate (F-76)

Jan 15, 2016: First product delivery completed to Defense Logistics Agency o 1.3 million gallons of F-76 consisting of a 10% blend of Renewable Diesel

Jan 28, 2016: First on-spec production of Renewable Jet and Road Diesel

13

LAX – Los Angeles World Airports

March 11, 2016

14

Oslo AirportLos Angeles World Airports

Customer Diversity

15

The Future Growth of Renewable Jet

Partnering to process novel feedstocks with existing process• Solaris tobacco oil• Agrisoma carinata oil

Green Crude Oil• Cellulosic feedstocks for hydroprocessing

• Abundant• Low-cost• Lower carbon intensity

• Technical and regulatory challenges

16

Thank You