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Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
Cellulosic Hydrocarbon Fuels from IH2 Technology
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Cellulosic Hydrocarbon Fuels from IH2 Technology

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  • 1. Cellulosic Hydrocarbon Fuels from IH2 TechnologyAlan Del Paggio, CRI Catalyst Company, 910 Louisiana, Houston, TX 77002 WBM Presentation 13 March 2013
  • 2. 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 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, 2011 (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, 13 March 2013 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.3/20/2013 2
  • 3. Main Points• Introduce Gas Technology Institute (GTI) and CRI Catalyst (CRI)• What is the IH2 process?• Why does IH2 technology transform renewable fuels processing?• IH2 process economics• Where is IH2 in the commercial deployment?3/20/2013 3
  • 4. Gas Technology Institute• Not-for-profit gas research & services organization with a 70+ year history• Capabilities that span the natural gas value chain• Current focus in diversified energy solutions• Facilities – 18 acre Chicago campus – 28 specialized labs totaling 200,000 ft2• Staff of 250• >1,200 patents• >750 products commercialized with partners Offices& Labs CRI is the partner for IH2 Pilot Scale Gasification Campus Energy & Environmental Technology Center3/20/2013 4
  • 5. CRI Catalyst Company• Catalyst Business with 50+ year history• Houston based global business – Houston – London – Singapore• Research Facilities – Amsterdam – Bangalore – Houston• Manufacturing Facilities – US (3) – Germany – Belgium3/20/2013 5
  • 6. What is the IH2 Process?• The IH2 process uses catalysts, hydrogen and heat to cost-effectively convert a wide variety of biomass directly into high purity hydrocarbon ―drop in‖ fuels (i.e. B100) and/or high quality blend stock (e.g. >B50)• The IH2 process takes only minutes to convert biomass to hydrocarbons—Nature requires millions of years…• The IH2 process can be integrated into existing refinery, mill, ethanol plant, agricultural, or recycling operations to create higher value from biomass than afforded by heat and electrical power sales (NA basis)• The IH2 process is NOT Gasification/Fischer Tropsch3/20/2013 6
  • 7. IH2 Process (Simplified, Stand Alone) Products Process Biogenic CO2 Feed City Waste Renewable H2 4) SMR C1-C3 Gas Hi Pressure Steam HDO‘d Vapors Crop Residue Distilled 2) Fluidized Bed Hydrocarbon 3) Fixed Bed Wood/Forest Gasoline, Jet and Diesel Range Residue Proprietary Proprietary Hydrocarbon Fuels / Blend Stocks Catalyst Catalyst Clean Water Renewable H2 Renewable H2 Energy Crops 340-470C <500psig <500psig Fertilizer Algae 1st Stage 2nd Stage BioChar 1) Feed Conditioning Sizing , Drying & Feeding3/20/2013 7
  • 8. Transformative Differentiators• Fungible, high purity hydrocarbon fuel and/or blend stock products - Gasoline produced from wood passes ASTM specs (i.e. B100) for economy & mid octane - Diesel produced from wood too aromatic, currently ~B50, target is to get to B100 - Diesel produced from whole algae likely B100 (in testing)• Nearly carbon neutral*• Feedstock flexible with high product yields (67-157 US gallons/US ton)• Attractive economics (~ $2/gal for 500 dry MT/day wood feed USGC pricing) - Low capex (only 4 major process steps, low pressure, non corrosive) - Low opex (predominated by feedstock)• Exothermic process with 72% - 86% bioenergy recovery (wood)• No engineering miracles required! Ready for market *>94% GHG reduction per Professor David Shonnard at MTU: http://services.lib.mtu.edu/etd/THESIS/2012/ChemicalEng/maleche/thesis.pdf3/20/2013 8
  • 9. Evolution of IH2 TechnologyAdvanced catalysts improve product, Wood Example Gasoline Product 3rd Gen Catalyst Total Liquid Product Total Liquid Product Gas/Jet/Diesel Product Pilot Plant Scale1st Gen Catalyst Lab Scale 2nd Gen Catalyst Lab Scale 3rd Gen Catalyst Lab Scale Jet/Diesel Product 3rd Gen Catalyst Hydrocarbon Pilot Plant Scale Hydrocarbon Water Water Water Product 3rd Gen Catalyst Pilot Plant Scale “GOAL“ Drop In Process & Catalyst 4Q09 ―B5‖ Quality 3Q10 ―B25‖ Quality 2Q12 ―B60+‖ Quality R&D Continues Stand Alone ―B100‖3/20/2013 9
  • 10. IH2 Process Economics (USGC) NREL 06/11 Basis Installed Equipment Costs $112.6mln Operating Costs Total $1.60/gal* 4.7 Wood $71.97/dry ton Feed 17.7 29.6 Other Op Costs: 36.6 1st Stage HP/ 2nd Catalyst, Disposal, etc. Stage HC 5.9 Fixed Cost 6.8 Fractionation 17.3 91.31 Depreciation HMU 2.14 Avg Income Tax Utilities & Contingency 44.0 @ 35% 7.8 Avg ROI *Includes $0.093/gal coproduct credit Total Capital Investment $232.8mln • Stand Alone/Green Field (US Gulf Coast basis) • 2000mt/d wood (50% moisture fed, dried to 10% moisture at 1st stage) Installed Equipment Costs • 60% financed at 8% interest, overall 10% IRR Land/Develop • Feed Stock ~55% of Operating Cost 102.7 112.6 • No subsidies, tax, RIN or carbon credits included! Permits & S/U • Minimum Fuel Selling Price – $0.423/L (2007) $0.465/L (2012) Standard Project Add-Ins** • Refinery Synergy w/Refinery H2 Supply 11.7 5.7 • Reduces Capital Cost ~44.0MM$ ** Prorated Expense (10%), H O & Construction (20%), Field • Estimated MFSP $0.359/L (2007) $0.394/L (2012) Expense (10%), Working Capital (10%) , Project Contingency (30%) • NREL TIC validated by KBR pointing to higher HMU costhttp://www.osti.gov/bridge/servlets/purl/1059031/1059031.pdf • Opex validated by prospective clients 3/20/2013 10
  • 11. IH2 Process Economics (USGC) NREL 09/12 BasisInstalled Equipment Costs $127.5mln Operating Costs Total $1.64/gal* 4.7 Feed Wood $71.97/dry ton 1st Stage/2nd Stage 29.6 17.7 Other Op Costs: 40.5 Fractionation 5.9 Catalyst, Disposal, etc. 4.0 Fixed Cost HMU 17.3 91.31 Depreciation Ammonium Sulfate Absorption/Stripping 2.14 Avg Income Tax 2.8 55.02.8 Utilities & Contingency Avg ROI 7.8 @ 35% *Includes $0.1884/gal coproduct creditTotal Capital Investment $263mln • Stand Alone/Green Field (US Gulf Coast basis) Installed Equipment • 2000mt/d wood (50% moisture fed, dried to 10% moisture at 1st stage) Costs • 60% financed at 8% interest, overall 10% IRR 116.5 Land/Develop • Feed Stock ~55% of Operating Cost 127.5 • No subsidies, tax, RIN or carbon credits included! Permits & S/U • Minimum Fuel Selling Price – $0.433/L (2007) $0.476/L (2012) Standard Project Add-Ins** • Refinery Synergy w/Refinery H2 Supply 13.2 6.3 • Reduces TIC ~55.0MM$ • Estimated MFSP $0.359/L (2007) $0.394/L (2012)** Prorated Expense (10%), H O & Construction (20%), FieldExpense (10%), Working Capital (10%) , Project Contingency (30%) • KBR FEL-3 underway • Opex validated by prospective clients3/20/2013 11
  • 12. IH2 Technology Deployment• Bench Scale – Since 02/2009 @ 0.5kg/hr• Pilot Scale – Since 02/2012 @ 50kg/d – Confirmed bench scale results – Producing fuels for EPA Registration – Producing fuels for ASTM Qualification – Gasoline ex wood is B100• Pre Commercial Scale – BDEP for 5mt/d cellulose done – 1st demonstration license awarded 12/2012, more expected in Q1 2013• Commercial Scale – KBR is CRI‘s exclusive basic engineering partner for commercial units – FEED 500 & 1000mt/d wood (FEL-2 complete, FEL-3 underway) – Target Q1 2014 for full scale commercial deployment3/20/2013 12
  • 13. Commercial Timeline, Current Status Demo Scale Units Only (11 units) Full Lab Scale Pilot Scale (Brownfield Construction; Date Basic Engineering Starts) Commercial 1Q10 Process 2Q10 Variables and Semi- Wood, 5-1000mt/d 3Q10 Continuous 4Q10 Operation Crop Residues, 5-10mt/d Construct 50kg/d 1Q11 Pilot Plant Micro Algae, 5mt/d 2Q11 Mixed Paper/OCC/Urban Wood, 5mt/d Receive Unit 3Q11 4Q11 Shake Down 1Q12 2Q12 Continuous Pilot Plant Operation 3Q12 4Q12Today 1Q13 2Q13 FEL-2 Complete 1000m t/d FEL-2 Complete 500mt/d FEED Set to begin 5mt/d 3Q13 FEL-2 Underway 5mt/d FEL-3 Complete 5mt/d 4Q13 1Q14 Basic/Detailed 2Q14 Engineering 3Q14 4Q14 Construction 3/20/2013 13
  • 14. Executive SummaryThe IH2 technology is – a cost-effective process developed by GTI with US Dept of Energy co-funding and CRI proprietary catalysts that converts biomass directly to hydrocarbon fuels and/or high volume blend stocks – self-sufficient and self-sustaining with little unsustainable impact on the surrounding environment needing only transport in/out of the site – feedstock agnostic, able to utilize a broad range of biomass – NOT gasification/Fischer-Tropsch – nearly carbon-neutral (LCA >94% GHG* reduction) – currently in FEED (FEL-2/-3) for multiple feed demonstrations – available exclusively from CRI Catalyst Company3/20/2013 14
  • 15. Thank You Learn more at www.cricatalyst.com3/20/2013 15

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