ih2 technology: integration with existing assets

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IH 2 Technology: Integration With Existing Assets Pat Leung, CRI Catalyst Company, 910 Louisiana, Houston, TX 77002 RENEW. REFINE. REFUEL. ARTC Presentation 6 March 2014

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Page 1: IH2 Technology: Integration With Existing Assets

IH2 Technology: Integration With Existing Assets Pat Leung, CRI Catalyst Company, 910 Louisiana, Houston, TX 77002

RENEW. REFINE. REFUEL.

ARTC Presentation6 March 2014

Page 2: IH2 Technology: Integration With Existing Assets

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 statementsexpressing 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, 2013 (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, 6 March 2014 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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Page 3: IH2 Technology: Integration With Existing Assets

Main Points

• Why IH2 technology?

• Integration with existing assets

• Commercialization Process

• Product Quality Update

• Executive Summary

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Page 4: IH2 Technology: Integration With Existing Assets

Why IH2 Technology?

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• Self-sufficient, self-contained and self-sustaining

• Feedstock flexible, product yields 67-172 gal/ton (MAF) Spans gasoline, jet and diesel range No detectable oxygen or TAN

• High GHG reductions

• Integrates commercially proven equipment; Market Ready

• Attractive economics (< $2.25/gal; 2000 dry mt wood/day USGC pricing) $450mln TCI ex KBR; 60% financed @ 8%; 20% overall IRR; $72/dry ton feed No RINs, No Carbon or Blending Credits, No Subsidies of any kind included

• Improved catalysts enhanced product yield & quality

Page 5: IH2 Technology: Integration With Existing Assets

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Distilled Hydrocarbon

Hi Pressure Steam

Clean Water

Fertilizer

BioChar

Biogenic CO2

Crop Residue

City Waste

Wood/ForestResidue

Energy Crops

Algae

Gasoline, Jet and DieselHydrocarbons  (67‐172 gal/ton)R100 Regular  Gasoline (Wood)R100 Intermediate Gasoline (Wood) R100 Diesel (Wood)

Feed

Products

2) Fluidized Bed 

Proprietary  Catalyst SystemRenewable H2

340‐470C<500psig

1) Feed ConditioningSizing , Drying & Feeding

1st Stage 2nd Stage

3) Fixed Bed 

Proprietary Catalyst SystemRenewable H2

<500psig

4) SMR C1‐C3 GasRenewable H2

Process

5) Cyclones

Why IH2 Technology?

Page 6: IH2 Technology: Integration With Existing Assets

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Option 1: Full StandaloneLocation Flexibility, Minimum Environmental ImpactMaximum GHG reductionLowest CI productHighest Capital Cost

Option 2: Integrated with Refinery HTMinimum Environmental ImpactLowest CI productMaximum GHG reductionLower Capital Cost

Option 3 Integrated with Refinery H2Higher Environmental ImpactReduced GHG reductionHigher CI productLowest CostCapital 20% - 25% lower than base case

Integration with Existing Assets - Refinery

Page 7: IH2 Technology: Integration With Existing Assets

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Integration with Existing Assets - Sugar Mill

IH2 UnitBagasse

Cane Trash/Sugar Cane Tops

SugarCane

Sugar Factory

EnhancedEnergy

Integration

Hot water

HP Steam

Co-Gen

Sale to grid

SugarMolasses

Fuels

Boiler

Char

LP Steam

Page 8: IH2 Technology: Integration With Existing Assets

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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 MAF70% gasoline/

30% diesel

Integration with Existing Assets - Algae Facility

Page 9: IH2 Technology: Integration With Existing Assets

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Growth Harvest ExtractionWhole Algae

NH3 / S

LP Steam / Hot Water

CO2

HP Steam or HP Steam to Power

Fuel

157 -172 gal/ton MAF(50% gasoline/

50% diesel)

Integration with Existing Assets - Algae Facility

Page 10: IH2 Technology: Integration With Existing Assets

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0.02L/dayBangalore 1L/day

Chicago, Bangalore

22L/dayChicago

2000L/day

NanoScale EE HT toolsGTI/CRI Design BasisCommercially EngineeredCommercially Fabricated

1st Stage System2nd Stage SystemOn line analytical suite

Up to 16 runs/day/system

Chicago Unit GTI Design BasisGTI Built

Bangalore Unit GTI/CRI Design BasisCommercially EngineeredCommercially FabricatedMixture online/offline

Up to 3 runs/week

GTI Design BasisCommercially EngineeredCommercially Fabricated

Mixture Online/Offline

Up to 1 run/week

GTI/CRI Design BasisCommercially Engineered

Mixture Online/Offline

Up to 3 runs/month

Commercialization Process

Page 11: IH2 Technology: Integration With Existing Assets

2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

GTI first demonstrates IH2 technology at MBU (bench) scale March 1st gen CRI catalysts developed June

GTI executes Joint Development and exclusive Commercial Agreements with CRI2nd gen CRI catalysts developed April

GTI demonstrates process flexibility & product yields MBU scaleCRI executes ESAs with Zeton and KBR

GTI IH2® 50kg/day pilot plant commissioned February3rd gen CRI catalysts developed August1st demo license executed December

KBR finalizes customer site-specific FEL-2 SeptemberCRI Nanoflow 2nd stage & MBU commissioned2 commercial and 1 demo license executed June-August

GTI’s first Patent issued

CRI Nanoflow 1st stage commissionedExpect more customer FEL-2 / 3 studies4th gen CRI catalysts developed January

First LCAs published

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Commercialization Process

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Commercialization Process - 3D Rendering

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Hydrocarbon

Water

Total Liquid Product 2nd Gen Catalysts Lab Scale

Total Liquid Product 1st Gen Catalysts Lab Scale

Hydrocarbon

Water

Gas/Jet/Diesel Product 3rd Gen Catalysts Lab Scale

4Q09 “R5” 3Q10 “R25” 2Q12 “R60+”

Improve product yield, appearance and quality

Product Quality Update

Jet/Diesel Product 4th Gen Catalysts Lab Scale

1Q14 “R100”

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Product Quality Update

Gasoline Product 3rd Gen Catalyst Pilot Plant ScaleDrop In / Tank ReadyR100 Quality

Jet/Diesel Product 3rd Gen Catalyst Pilot Plant Scale> R60 Quality

Water Product 3rd Gen Catalyst Pilot Plant ScaleClean, No Carbon

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Product Quality Update

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US• Gasoline (from wood):

R100 Meets ASTM D-4814-10b ~87 Octane S < 15-ppm

• Diesel (from wood) Approaching R100 ASTM D-975-11 Derived Cetane # approx. 40 S < 10-ppm

Europe:• Petrol (from wood)

Petrol (from wood) EN 228: Petrol – Jan 2009 Octane Low S ~10-ppm

• Diesel (from wood) EN 590:2009+A1:2010 Cetane # Low S ~15-ppm

• 3rd Party Testing in Progress in 2014• More Upgrading Wood Product for

EU Specs

Page 16: IH2 Technology: Integration With Existing Assets

Executive Summary

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• Self-sufficient, self-contained and self-sustaining

• Feedstock flexible, product yields 67-172 gal/ton (MAF) Spans gasoline, jet and diesel range No detectable oxygen or TAN

• High GHG reductions

• Integrates commercially proven equipment; Market Ready

• Attractive economics (< $2.25/gal; 2000 dry mt wood/day USGC pricing)

• Improved catalysts enhanced product yield & quality

• Available exclusively from CRI Catalyst Company

Page 17: IH2 Technology: Integration With Existing Assets

Thank You

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Learn more at http://www.cricatalyst.com/catalysts/renewables.html