wbm asia - ih2 technology: commercial progress and product quality update
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WBM Asia - IH2 Technology: Commercial Progress and Product Quality UpdateTRANSCRIPT
IH2 Technology: Commercial Progress and Product Quality Update
DisclaimerThis 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 andinvolve 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, 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, 17 June 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.
Main Points
• Why IH2 technology?
• Integration with existing assets
• Commercialization Process
• Product Quality Update
• Executive Summary
Why IH2 Technology?• 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 (standalone or co-locate with existing assets)
• Improved catalysts enhanced product yield & quality
• Available exclusively from CRI Catalyst Company
Why IH2 Technology?
Distilled Hydrocarbon
Hi Pressure Steam
Clean Water
Fertilizer
BioChar
Biogenic CO2
Crop Residue
City Waste
Wood/ForestResidue
Energy Crops
Algae
Feed
Products
2) Fluidized Bed
Proprietary Catalyst System
Renewable 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
Gasoline, Jet and DieselHydrocarbons (67-172 gal/ton)R100 Regular Gasoline (Wood)R100 Intermediate Gasoline (Wood) R100 Diesel (Wood)
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Option 1: Full StandaloneLocation Flexibility, Minimum Environmental ImpactMaximum GHG reductionLowest CI productHighest Capital CostNo Fixed Cost Synergy
Option 2: Integrated with Refinery HTMinimum Environmental ImpactLowest CI productMaximum GHG reductionLower Capital CostSome Fixed Cost Synergy
Option 3 Integrated with Refinery H2
Higher Environmental ImpactReduced GHG reductionHigher CI productLowest Capital CostCapital ~25% lower than base case
Integration - Refinery
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IH2 UnitBagasse
Cane Trash/Sugar Cane Tops
SugarCane
Sugar Factory
EnhancedEnergy
Integration
Hot water
HP SteamCo-Gen
Sale to grid
SugarMolasses
Fuels
Boiler
Char
LP Steam
Integration – Sugar Mill
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Growth Harvest Extraction
Primary Product(s)
Residues
NH3 / S / Ash
LP Steam / Hot Water
CO2
HP Steam or HP Steam to Power
Fuel
100 gal/ton MAF70% gasoline/ 30%
diesel
Integration – Algae Facility
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Growth Harvest ExtractionWhole Algae
NH3 / S / Ash
LP Steam / Hot Water
CO2
HP Steam or HP Steam to Power
Fuel
157 -172 gal/ton MAF(50% gasoline/
50% diesel)
Integration – Algae Facility
• Wood Supply System– Procurement staff & buyer networks/intellectual capital
– Fiber Supply Agreements
– Landowner data: US RFS-2 “chain-of-custody” requirements
• Contract data – ownership & legal description
• Load tickets – link delivered loads to harvest location
• Harvest location maps – spatial data
• Fiber Accounting & Information Systems Integration
• HSE Systems – Air & water permits
– Sampling & reporting structure/agency interaction
9/23/2014 CRI & SHELL CONFIDENTIAL INFORMATION
10
Integration – Paper Mill, “Soft Assets”
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11
Integration – Paper Mill, “Hard Assets”
Paper ProcessDigestion, refining,
washing, paper machines Paper
Hea
t
LP Steam / Heat
Power
Fuel
90 gal/ton MAF65% gasoline/ 35%
diesel
Char Boiler/Co-Gen
Wood YardHandling, storage,chipping, drying, hammer milling
LP S
team
or
Pow
er
to grid
Biomass Feedstock
Chips
Ch
ar
Multiple uses for low-grade heat or power
Soft Assets
LP S
team
/ P
ow
er
0.02L/dayBangalore 1L/week
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
Commercialization Process – 3D Render
Product Quality – MBU Scale
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
Jet/Diesel Product 4th Gen Catalysts Lab Scale
1Q14 “R100”
Product Quality – Pilot Scale
Gasoline Product 3rd Gen Catalyst Drop In / Tank ReadyUS R100 Quality (RBOB)
Jet/Diesel Product 3rd Gen Catalyst US R100 Diesel
Water Product 3rd Gen Catalyst Clean, No CarbonContains NH3/H2S (lacks commercial design water clean up )
US
• Gasoline (from wood): R100 Meets ASTM D-4814-10b
~86 Octane
S < 15-ppm
Fully renewable premium RBOB
• Diesel (from wood) R100 Meets ASTM D-975-11
Cetane Number 44
S < 10-ppm
Product Quality SummaryEurope:
• 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 Underway in 2H2014
• More Upgrading Wood Product for EU Specs
Executive Summary• 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 (standalone or co-locate with existing assets)
• 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