ih2 technology: integration with existing assets
TRANSCRIPT
IH2 Technology: Integration With Existing Assets Pat Leung, CRI Catalyst Company, 910 Louisiana, Houston, TX 77002
RENEW. REFINE. REFUEL.
ARTC Presentation6 March 2014
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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Main Points
• Why IH2 technology?
• Integration with existing assets
• Commercialization Process
• Product Quality Update
• Executive Summary
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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
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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?
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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
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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
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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
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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
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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
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
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
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
Thank You
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Learn more at http://www.cricatalyst.com/catalysts/renewables.html