ih : algal biomass direct-to-fuels...
TRANSCRIPT
IH2® : Algal Biomass Direct-to-Fuels Technology
Algae Biomass Summit 1 October, 2013
CRI Catalyst Company
910 Louisiana, Houston, TX 77002
Disclaimer
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses
of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking
statements. Forward-looking statements are statements of future expectations that are based on management’s current
expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements
include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements
expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking
statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’,
‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and
similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could
cause those results to differ materially from those expressed in the forward-looking statements included in this presentation,
including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c)
currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry
competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition
properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in
developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments
including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries
and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental
entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m)
changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their
entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on
forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the
year ended December 31, 2012 (available at www.shell.com/investor and www.sec.gov ). These factors also should be
considered by the reader. Each forward-looking statement speaks only as of the date of this presentation 1 October 2013
Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or other information. In light of these risks, results could differ materially
from those stated, implied or inferred from the forward-looking statements contained in this presentation.
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Main Points
• Introduction to GTI and CRI
• IH2® Technology Overview
• Algae as Feedstock
• IH2® Product Quality
• IH2® Process Economics
• IH2® Commercial Deployment
• Conclusion
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Introducing Gas Technology Institute
• US 501c3 R&D company founded as IGT in 1941
• Capabilities span natural gas value chain & biomass energy conversion
• Inventor of the IH2® process
• Des Plaines, Illinois USA campus – 250 professional staff
– 18 acre campus with 28 specialized labs totaling 200,000 ft2
• >1,200 patents; 750 licenses; 380 current licenses
• 500 products commercialized with partners
• CRI is the exclusive partner for IH2® technology
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Pilot Scale Gasification Campus Energy & Environmental Technology Center Offices& Labs
Introducing CRI Catalyst Company
• Wholly owned Shell Catalyst Business with 50+ year history
• Houston based global business – Houston
– London
– Singapore
• Research Facilities – STC Amsterdam
– STC Bangalore
– STC Houston
• Manufacturing Facilities – USA: Martinez, CA; Kansas City, MO; Conshohocken, PA
– Leuna, Germany
– Gent, Belgium
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IH2® Technology Overview
• The IH2® process uses catalysts, hydrogen and heat to cost-effectively convert
a wide variety of biomass directly into high purity hydrocarbon “drop in” fuels
(i.e. R100) and/or high quality blend stock (e.g. >R60)
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• The IH2® process takes only minutes to convert biomass to hydrocarbons—
Nature requires millions of years…
• The IH2® process can be integrated into existing refinery, mill, ethanol plant,
agricultural, or recycling operations to create higher value from biomass than
afforded by heat and electrical power sales (NA basis)
• The IH2® process is NOT Gasification/Fischer Tropsch
• Produce fungible hydrocarbon fuel/blend stock from a broad range of inedible/residual biomass feed at low cost
– maximizes product value; – eliminates availability, regionality, seasonality issues; – enhances project scale/capital efficiency
• Require no infrastructure other than road/rail transport into and out of the production. Can be integrated with existing facilities for even better economics.
– self-sufficient, self-contained and self-sustaining operation minimizes biomass transportation costs, build where the biomass is
• Have minimal unsustainable impact on the surrounding environment
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IH2® Technology Overview
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Gasoline, Jet and Diesel Hydrocarbons (67-157 gal/ton) R100 Regular Gasoline (Wood) R100 Intermediate Gasoline (Wood) R60 + Diesel (Wood)
Products
2) Fluidized Bed
Proprietary Catalyst System Renewable H2
340-470C <500psig
1) Feed Conditioning Sizing , Drying & Feeding
1st Stage 2nd Stage
3) Fixed Bed
Proprietary Catalyst System Renewable H2
<500psig
4) SMR C1-C3 Gas Renewable H2
Process
Distilled Hydrocarbon
Hi Pressure Steam
Clean Water
Fertilizer
BioChar
Biogenic CO2
City Waste
Wood/Forest Residue
Energy Crops
Algae
Feed
5) Cyclones
Crop Residue
IH2® Technology Overview
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IH2® Technology Overview
Wood
(Hard-Soft) Lemna MicroAlgae Bagasse MacroAlgae Corn Stover
Feed wt % C 49.7 46.3 43.1 43.1 34.0 40.2
Feed wt % H 5.8 5.8 6.1 5.0 4.43 5.0
Feed wt % O 43.9 35.7 20.4 35.3 23.6 35.7
Feed wt % N 0.11 3.7 6.5 0.34 4.6 1.0
Feed wt % S 0.03 0.3 0.7 0.10 1.9 0.05
Feed wt % Ash 0.5 8.2 23.1 16.2 29.4 18.1
Feed H/C 1.40 1.50 1.70 1.39 1.56 1.49
Typical % C4+ Liquid
Yield (MAF) (Moisture/Ash Free)
26-30 30 46 30 35 21
C4+ Gallon/Ton (MAF) 86-92 100 157 100 119 67
Product Oxygen b d l b d l b d l b d l b d l b d l
Product TAN# <0.02* <0.05 <0.05 <0.05 <0.05 <0.05
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Wood (Hard-Soft)
Lemna MicroAlgae Bagasse MacroAlgae Corn Stover
Feed wt % C 49.7 46.3 43.1 43.1 34.0 40.2
Feed wt % H 5.8 5.8 6.1 5.0 4.43 5.0
Feed wt % O 43.9 35.7 20.4 35.3 23.6 35.7
Feed wt % N 0.11 3.7 6.5 0.34 4.6 1.0
Feed wt % S 0.03 0.3 0.7 0.10 1.9 0.05
Feed wt % Ash 0.5 8.2 23.1 16.2 29.4 18.1
Feed H/C 1.40 1.50 1.70 1.39 1.56 1.49
Typical % C4+ Liquid
Yield (MAF) (Moisture/Ash Free)
26-30 30 46 30 35 21
C4+ Gallon/Ton (MAF) 86-92 100 157 100 119 67
Product Oxygen b d l b d l b d l b d l b d l b d l
Product TAN# <0.02* <0.05 <0.05 <0.05 <0.05 <0.05
Algae as Feedstock
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Algae as Feedstock
Extracted algae:
• Hydrocarbon yields 100 gal/ MAF ton of extracted algae
• The product split is roughly 70% gasoline and 30% jet/diesel range
Whole algae:
• Hydrocarbon yields range from 157 gal/ MAF ton of wild algae to over 172
gal/ MAF ton of high lipid algae
• The product split is roughly 30% gasoline and 70% jet/diesel range
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Algae as Feedstock
Growth Harvest Extraction
Primary Product(s)
Residues
NH3 / S
LP Steam / Hot Water
CO2
HP Steam or HP Steam to Power
Fuel
100 gal/ton MAF
(70% gasoline,
30% jet/diesel)
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Algae as Feedstock
Growth Harvest Extraction Whole Algae
NH3 / S
LP Steam / Hot Water
CO2
HP Steam or HP Steam to Power
Fuel
157 – 172 gal/ton MAF
(30% gasoline, 70%
jet/diesel)
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IH2® Product Quality (Wood)
Hydrocarbon
Water
Total Liquid Product
2nd Gen Catalyst Lab Scale
Total Liquid Product
1st Gen Catalyst Lab Scale
Hydrocarbon
Water
Gas/Jet/Diesel Product
3rd Gen Catalyst Lab Scale
4Q09 “R5” Quality 3Q10 “R25” Quality 2Q12 “R60+” Quality
Gasoline Product
3rd Gen Catalyst
Pilot Plant Scale
Drop In ‘R100’
Jet/Diesel Product
3rd Gen Catalyst
Pilot Plant Scale
>R60 Quality
Advanced catalysts improve product appearance and quality
Water Product
3rd Gen Catalyst
Pilot Plant Scale
Clean, No Carbon
Process & Catalyst
R&D Continues
IH2® Product Quality (Wood)
Gasoline from IH2®-50 Pilot Plant
Distilled 5 gallons
Passed all ASTM D-4814-10b unleaded gasoline specs as R100 for economy
(86/87 octane) and intermediate (88/89 octane) US grades
For US premium (92/93 octane) add ethanol or sell as renewable RBOB
EN 228 and EN 590 testing set to begin 4Q13
EPA emissions testing (certification) set to begin 4Q13
Diesel from IH2®-50 Pilot Plant
Distilled 2 gallons
Passed all ASTM D-975-11 as No 2 middle distillate fuel
Except Cetane Index & Viscosity
Bangalore Research demonstrating increased cetane and reduce viscosity
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4.7
17.7
4.0
55.0 2.8
2.8
40.5
Feed
1st Stage/2nd Stage
Fractionation
HMU
Ammonium Sulfate
Absorption/Stripping
Utilities & Contingency @ 35%
Installed Equipment Costs $127.5MM • Stand Alone/Green Field (US Gulf Coast basis)
• 2000mt/d wood at 10% moisture
• TIC of $127.5MM results in TCI of $263MM
• HMU (SMR) is largest single expense @ $55mln ~45% TIC
• Feed Stock ~55% of Operating Cost
• No subsidies, tax credits included! $3.96capex/annual gallon
• KBR FEED underway (FEL-2 complete)
• Opex validated by prospective clients
• Minimum Fuel Selling Price:
$1.64/gal (2007) $1.80/gal (2012)
$0.433/L $0.476/L
• Refinery Synergy w/Refinery H2 Supply
- Estimated MFSP $1.36/gal (2007) $1.49/gal (2012)
$0.359/L $0.394/L
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91.31
7.8
2.14
17.3
5.9
29.6
Wood $71.97/dry ton
Other Op Costs: Catalyst, Disposal, etc. Fixed Cost
Depreciation
Avg Income Tax
Avg ROI
Operating Costs Total $1.64/gal*
*Includes $0.1884/gal coproduct credit http://www.osti.gov/bridge/servlets/purl/1059031/1059031.pdf
IH2® Process Economics
• Bench Scale
– Since 02/2009 @ 0.5kg/hr
• Pilot Scale
– Since 02/2012 @ 50kg/d
– Confirmed bench scale results
– Producing fuels for EPA Registration
– Producing fuels for EN Qualification
– Wood derived gasoline is R100
• Pre Commercial Scale
– BDEP for 5mt/d cellulose done
– 2 showcase licenses awarded since 12/2012
• Commercial Scale
– KBR is CRI’s exclusive commercial engineering partner
– 500 & 1000mt/d stand alone USGC wood FEL-2 completed; FEL-3 begins
– 2 commercial licenses awarded since 06/2013
IH2® Commercial Deployment
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Conclusion
• The IH2® technology produces high quality hydrocarbon fuels and
blend stock directly from biomass
• Feedstock flexible with high product yields
• Presents an opportunity for integration with algae production and/or
extraction facility for better site margin
• Nearly carbon neutral*
• Attractive economics
• Available exclusively from CRI
>94% GHG reduction per Professor David Shonnard at MTU:
http://services.lib.mtu.edu/etd/THESIS/2012/ChemicalEng/maleche/thesis.pdf
Thank You
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Learn more at
http://www.cricatalyst.com/catalysts/renewables.html