Sustainable Aviation FuelsSustainable Aviation FuelsJames Rekoske

Vice President/General ManagerRenewable Energy & Chemicals

James RekoskeVice President/General ManagerRenewable Energy & ChemicalsRenewable Energy & ChemicalsRenewable Energy & Chemicals

Farnborough Air ShowJuly 19-20, 2010

© 2010 UOP LLC. All rights reserved. UOP 5411-01

• Demand for energy and broader sources to complement fossil fuel

Drivers for Energy Diversity• Demand for energy and broader sources to complement fossil fuel• Government mandates and global concerns over sustainability and

greenhouse gas emissions• Job creation in rural communities for developing nations

Aviation CO2 Using less fuel

ions

Aviation CO2Emissions Challenge

Using less fuel- Efficient Airplanes- Operational Efficiency

CO

2Em

iss

Changing the fuel- Sustainable BiofuelsC Baseline

Sustainable Biofuels

Carbon Neutral Timeline 2050Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA

Our Biofuels Vision• Building on UOP’s nearly 100 years of experience in refining• Produce real fuels instead of fuel additives/blends• Leverage existing refining/ transportation infrastructure to lower g g g p

capital costs, minimize value chain disruptions, and reduce investment risk

• Focus on path toward second-generation feedstocks

Inedible Oils: Camelina, Jatropha, Halophytes

FirstGeneration

Second Generation

Natural oils from vegetables and Waste biomass,

greases oil from algae

Renewable Energy TechnologiesF d P P d t

UOP/Eni EcofiningTM

Process

UOP/Eni EcofiningTM

Process

Natural Oil/Fats

Hydrogen

Honeywell Green DieselTM

Feed Process Product

Green Jet (if req)ProcessProcess

Renewable Jet Process

Renewable Jet Process

yd oge

Natural Oil/Fats

HydrogenHoneywell Green JetTM

Green Diesely g Green Diesel

GasificationGasificationSeparationSeparation

Rentech / UOP Alliance

FT SynthesisFT SynthesisConversionConversion Green Fuels

RTP®

(Pyrolysis)RTP®

(Pyrolysis)Biomass Green Power / Fuel Oil (now)Upgrading ProcessUpgrading Process

Green Fuels (2012)

Sustainable, feedstock flexible technologiesEnvergent Technologies – UOP/Ensyn JV

Commercial & Military Testing

• Commercial aircraft demonstrations• Air New Zealand (jatropha)• Continental Airlines (jatropha & algae)Continental Airlines (jatropha & algae)• Japan Airlines (jatropha, camelina & algae)• KLM (camelina)

Anticipating ASTM approval in 2010• Anticipating ASTM approval in 2010

• Military demonstrations• Up to 600,000 gallons of fuel made from camelina,

algae and animal fats for U.S. DESC• U.S. Air Force A-10 Thunderbolt II (camelina)• Navy F/A-18 Green Hornet (camelina)

• Royal Netherlands Air Force Apache Helicopter (algae & used cooking oil)

Green Jet Fuel Meets Flight Specifications

Key Properties of Green Jet Fuel

DescriptionJet A-1 Specs

Jatropha Derived

SPK

Camelina Derived

SPK

Jatropha/ Algae

Derived SPKDescription Specs SPK SPK SPK

Flash Point, oC Min 38 46.5 42.0 41.0Freezing Point, oC Max -47 -57.0 -63.5 -54.5JFTOT@300oCJFTOT@300oC

Filter dP, mmHg max 25 0.0 0.0 0.2Tube Deposit Less Than < 3 1.0 <1 1.0

N t h t f b ti MJ/k i 42 8 44 3 44 0 44 2Net heat of combustion, MJ/kg min 42.8 44.3 44.0 44.2Viscosity, -20 deg C, mm2/sec max 8.0 3.66 3.33 3.51Sulfur, ppm max 3000 <0.0 <0.0 <0.0

Prod ction of Green Jet f el is demonstrated a ailable

Current UOP Green Jet processing rate >3 million gallons per year

Production of Green Jet fuel is demonstrated, available today and feedstock flexible

Performance and Operability is Similar

Specific Fuel Consumption: The Bio-SPK blends show an improvement when compared to jet fuel, consistent with the heat of combustion increase.

L Bl O t i C i d b t t i l j t f l d Lean Blow Out margin: Comparisons were made between typical jet fuel and the Bio-SPK blends, showing equivalent performance.

Engine starts: Under both cold-soaked and warm thermal state conditions, no significant changes were noted in start times or in peak starting exhaust gassignificant changes were noted in start times or in peak starting exhaust gas temperature.

Light off delay: The time interval between introduction of fuel into the combustor and fuel ignition was compared with no significant changes notedcombustor and fuel ignition was compared, with no significant changes noted.

Acceleration response: No significant changes in engine acceleration response time or peak EGT were noted during acceleration tests.

All h f fli ht i l di I Fli ht R t t N i ifi t hAll phases of flight, including In-Flight Restart: No significant changes were noted for the use of the Bio-SPK blends for all 3 aircraft flight tests.

Boroscope Inspections: No significant engine deterioration changes were noted from comparing pre and post flight boroscope analysesnoted from comparing pre- and post-flight boroscope analyses.

UOP Proprietary

Air New Zealand: Engine Testing

Engine ground run data from a Rolls Royce RB211-524G engine shows a reduction in fuel flow due to the higher heat of combustion of the Green Jet Fuel

Air New Zealand 747-400 Flight Test Profile

35000

40000

300

350Slam maneuvers at FL350 Engine relights

25000

30000

250

15000

20000

ALT

- ft

150

200

VC

AS

- kt

s

5000

10000

50

100Simulated missed approach

-5000

00 1000 2000 3000 4000 5000 6000 7000 8000 9000

time - sec

0

50

ALT VCAS

ASTM D4054 Fuel Qualification Process

Specification Properties

Engine/APU Testing

Fit-For-Purpose Properties

Component/Rig Testingope t es TestingProperties Testing

ASTM

Review

ASTM

Review

FRL 6.1 FRLs 6.2 & 6.3 FRL 6.4FRL 4.2

ASTM Research

Report

Accept & Ballot

Re-EvalAs Required

Reject

Accept & Ballot

Re-EvalAs Required

Reject

OEM Review & Approval

ASTM Balloting Process

pASTM

SpecificationASTM

Specification

ASTM Specification

FRL 7: Fuel Class Listed in Int’l Fuel Specifications

Slide courtesy of Mark Rumizen, FAA/CAAFI

Biomass to Liquid Fuels Technology

Gasification & Fischer-Tropsch technologies to convert biomass to jet, diesel and naphtha

Utilize available forest and agricultural waste to create valuable fuelsUtilize available forest and agricultural waste to create valuable fuels

UOP Technology

UOP Technology

Renewable Jet: Demand Projections

R bl J D d D i

6

7

8

9

10

llion

s)

80

100

120

140

antit

ies

(BG

Y)

• Renewable Jet Demand Drivers• Industry commitment to carbon neutral

growth• Concerted effort by OEM’s to accelerate

0

1

2

3

4

5

Valu

e ($

Bil

0

20

40

60

Annu

al F

uel Q

uaHRJ discount vs Jet-A

Renewable Fuel Produced

Total Aviation Fuel Usage

• Concerted effort by OEM s to accelerate certification

• DOE grants to promote renewable jet units

02008 2011 2014 2017 2020 2023

Year

0

• OEM’s, Airlines & US Air-Force driving initial demand

• Major Airlines who are publicly committed to significant biojet use from

Source: Boeing Biojet forecast

G J t D d committed to significant biojet use from 2013 to 2020:

• Air NZ, LH, AF, Virgin, JAL, Continental, BA, KLM, SQ, EKJatropha

2015: ~45K BPD 2025: ~720K BPD

Green Jet Demand

• ~750K BPD Demand by 2025Camelina

Halophytes

Algae

OEM Led Market DevelopmentFeedstock shift towards Algae

Verno Group CONFIDENTIAL

pand Supported by Legislation

Bridging Capacity till 1st Commercial Unit 2012/13

Honeywell Green Jet Fuel capacity today at ~2500 gpd product on average with semi-batch/continuous mode.

Cost of production significantly reduced from initial 650 gpd modeCost of production significantly reduced from initial 650 gpd mode. Honeywell UOP working on options for fully continuous

2-Stage unit with 5,000-10,000 gpd of product being considered.

Jan 2011?

Honeywell Green Jet Fuel Availability Options – 2011/2012

10000 gpdAug 2009 Jan 2010

650 gpd 2500 gpd 5000 gpd

Interim demand indications from USAF/Navy/Army will drive next capacity increase and fuel availability for next 2 years

2500 gpd

Challenges for Commercialization

Technical Risk• Primary Technical Risks mitigated

• Growing practices, yields for major bridging crops established

Operational Risk• Risk of operation of biofuels value

chain identified• Demo facility operational lessonsmajor bridging crops established

• Analyses and fuel production completed on large (semi-commercial) scale

Demo facility operational lessons• Most risks can be effectively

hedged or insured• Remaining operational risk are

common with fuels from petroleumcommon with fuels from petroleum

Financial RiskFinancial Risk• Financial risks not associated with technology or operation largely remain

• Do financial markets and other stakeholders sufficiently understand the business proposition?

• Can lenders identify and assess appropriate risk premium?• Can lenders identify and assess appropriate risk premium?• Can projects be structured to be profitable to all members of the value chain?• Is capital investment (fixed / working) sufficiently understood to properly forecast

flows?• Is appropriate risk mitigation (loan guarantees grants insurance etc ) available?Is appropriate risk mitigation (loan guarantees, grants, insurance, etc.) available?

Challenges Ahead: Future Vision

Green Green JetJet--range range ParaffinsParaffins

Selective Selective Cracking/Cracking/

IsomerizationIsomerization

Natural Natural Oils and Oils and

FatsFatsDeoxygenationDeoxygenation

Renewable Jet FuelJet Fuel

Solid Solid BiomassBiomass

Catalytic Catalytic Stabilization/Stabilization/PyrolysisPyrolysis

/ Other/ OtherJet Range Jet Range

Cyclic Cyclic BiomassBiomass DeoxygenationDeoxygenation/ Other/ Other yyHydrocarbonsHydrocarbons

100% Renewable Jet Fuel‐‐ from ‐‐f

100% of Available Plant Resources

Summary Drop-in Aviation Biofuels are here, ready today

– Will make up increasing share of energy pool– Essential to overlay sustainability criteria (GHG, water)– ASTM certification expected late 2010

Feedstock availability is an important enabler– Bridging feedstocks – build infrastructure and acceptance– Second generation feedstocks (cellulosic waste and algal oils)

are on the horizonDi f d k i i i i bl i l– Diverse feedstock initiatives enable regional,sustainable solutions

Most hurdles met but some remain: Most hurdles met, but some remain:– Broadly available, cost competitive feeds– Mitigation for financial risk