world waste to energy city summit – may 2015 vincent chornet president and ceo enerkem...
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World Waste to Energy City Summit – May 2015
Vincent ChornetPresident and CEO
Enerkem biorefineries:setting a new global standard in biofuels, chemicals and waste management
We’re building the bioeconomy. | © Enerkem, 2015
Enerkem at a glance
• MSW-based biofuels and renewable chemicals producer
• World’s first full-scale commercial MSW biorefinery beginning operations in Edmonton, Alberta
• 300 million invested to date to move from R&D to commercial stage
• 200 employees
• New alternative to landfillingand incineration
ENERKEM ALBERTA BIOFUELS
Capacity: 38 million litres per year(i.e. 1 X standard Enerkem system)
Feedstock: Municipal solid waste (household garbage from City of Edmonton)100,000 dry tonnes per year
Products: Biomethanol, cellulosic ethanol
World’s first commercial MSW-to-biofuels and chemicals facility inaugurated June 4th 2014
We’re building the bioeconomy. | © Enerkem, 2015
Laboratory Pilot SyngasDemo
MethanolDemo
EthanolDemo
Full-scale commercialproduction
SHERBROOKE
WESTBURY FACILITYMODULAR COMMERCIAL BIOREFINERIES
UNIVERSITY OF SHERBROOKE
PILOT
Not skipping steps: an essential
x 2 x 2
x 3
We’re building the bioeconomy. | © Enerkem, 2015
Cost-competitive and sustainable ACT solution
Municipality:
• Supplies 100,000-400,000 tons of MSW per year(long-term contract)
• Pays tipping fee – attractive compared to status quo
• Suggests sites
Enerkem:
• Invests approx. $100M to build, own and operate the biorefinery
• Converts RDF into 38 to 152 MLPY of biofuels/biochemicals
• Works with the city to optimize MSW sorting into commodities and for site selection
• Manages business risks incl. sale of final product
• Creates high-quality jobs:
• 600 direct/indirect during construction
• 150 direct/indirect (permanent) during operation(for 1 X standard Enerkem system of 10 MGY)
• Generates $C65M/year in net economic benefits in the region(for 1 X standard Enerkem system of 10 MGY)
38-152 MLPY
We’re building the bioeconomy. | © Enerkem, 2015
Comparison with incineration
Enerkem Incineration
Where does the carbon go?Biofuels and chemicals (replacing oil)
Smokestack emits CO2
FinalityChemical recycling of carbon into alcohols
Waste elimination
Technology
Partial oxidation Reforming Catalytic conversion
Mass combustion
CAPEX for equivalentplant EBITDA*
$225M $425M
Primary revenue sourceSale of liquid fuels and chemicals
Sale of waste disposal service and electricity
Break-even tipping fee
Power generation: ½ the tipping fee
Fuels and chemicals: less than ½ the tipping fee
Greater than $80/mt
* For processing 500,000 mt/year unsorted MSW
City of Edmonton’s Integrated Waste Management Centre
Recycled 20%
Composted 40%
Biofuels 30%
Landfill 10%
Waste diversion = 90%
We’re building the bioeconomy. | © Enerkem, 2015
Large market potential
Sources: World Bank, 2012; Statista 2015; MarketsandMarkets
BIOFUELS: US$ 98 BILLION REN. CHEMICALS: US$ 57 BILLION
We’re building the bioeconomy. | © Enerkem, 2015
Business model
• Moving beyond BOO model licensing and equipment supply
• Modular manufacturing approach enabling global expansion
• 43 pre-fabricated modules for standard facility (e.g. Edmonton):
• 15 process-driven modules
• 28 structural modules
We’re building the bioeconomy. | © Enerkem, 2015
Target growth areas for global partnerships
• Strategic partnerships with leading industrial groups
• Selection based on market attractiveness:
• public policies
• tipping fees
• proximity to petrochemical infrastructure
• population
Thank you
For more information:
www.enerkem.com
Vincent ChornetPresident and CEO