Good MorningAppreciate the opportunity to present along side these executives from very successful companiesFuels developed from renewable sources are critical to meeting the world’s ever increasing demand for energy and transportation fuels – pleased to share KiOR’s perspective on this topicWhile we are in a race to develop economic alternatives to traditional petroleum based fuels, there will be many different technologies and approaches toward reaching our common objectiveSome will succeed and some will fail. The key is to solve the challenges without creating new ones. Thus, adopting and remaining true to the principles of sustainable feedstock harvesting practices is essentialAlso key to this industry’s future is receiving continued government support for technology development much the way Brazil has for many years.For these reasons and more, we see Brazil as an attractive and logical region for investment and will discuss why over the course of the next 10 minutes
Brazil is a leader in the world for its feedstock resources such as sugar and energy cane, wood biomass and opportunities for additional land use productivity gainsIndustry across Brazil from petrochemical and energy companies to agriculture and forest products companies are all engaged in exploring alternative and diversified revenue streams compared to their traditional business lines. Many have made or are planning to make substantial investments that result in adding power to the grid, fuels for transportation or chemicals. Brazil stands out as a leader when compared to many other countries, mainly because it can demonstrate real investmentsThe Brazilian governments both local and central have created an environment that cultivates and fosters innovation and incents companies to take risks on new technologies. Economic stability has come a long was over the past decade and risk premiums for investment have come down substantiallyBrazil’s infrastructure is improving. Additional investment, specifically in port management will allow for continued growth of exports of energy intermediaries and blendstocks to meet strong demand from international marketsFor these reasons, we view investment in Brazil to be very attractive
Brazil has vast resources committed to growing a diverse range of feedstocks capable of being utilized for renewable fuels. These pictures show some of them.Ethanol and bio diesel products are well established in Brazil and have spurred a tremendous amount of investment in the growing and harvesting of sugar cane.Next generation clean tech energy is focused on utilizing lesser value elements of the sugar cane, like bagasse and converting it to actual transportation fuels instead of just as fuel for boilers.KiOR’s technology can convert a broad range of feedstocks such as bagasse and wood biomass into actual drop in gasoline and diesel blendstocks. These products are actual hydrocarbons. In time we expect to see the processes competitive with conventional gasoline and diesel without the help from government subsidies.
When we look at the biofuels landscape, we see many different categories. It is possible to segregate by feedstock source, actual process, or life cycle emissions. This graphic segregates by anticipated impact on the environment, based upon US Renewable Fuels standards specifications.Corn ethanol and sugarcane ethanol have been around for quite some time. FAME biodiesel, particularly produced from Soy, has gained traction throughout the world. Renewable diesel is starting to get a foothold, and cellulosic biofuel is at the start of commercialization. Each type of biofuel has a different impact on the environment – or a different carbon footprint. While some may have more or less impact, it’s important to remember that all of these routes contribute to energy security – and a diversified energy portfolio can pay great dividends for Brazil.
As I mentioned at the onset of my presentation, sustainable operating practices are a core principle for KiOR.Along these lines, KiOR’s next gen technology also has a smaller carbon footprint when compared to other technologies.Compared with conventional gasoline and diesel production, KiOR’s lifecycle greenhouse gas emmissions are substantially lower.GREET: The Greenhouse gases, Regulated Emissions, and Energy use in Transportation model generated by Argonne National Laboratory (US DOE)CARB:California Air Resources Board model for carbon footprints
First generation – corn/sugar ethanol and soy/palm/rapeseed biodieselFOOD vs FUEL on the feedstock side, Product properties have some negative aspects (blend walls, cold flow properties)Next generation thrust #1 – similar feedstocks, better productsStill use sugars or oils – examplesBiotechnology improvements to convert sugar to higher value products (e.g. Amyris, Gevo)Process improvement to convert oils to fuels (e.g. renewable diesel or jet, Neste, Tyson syntroleum, Valero Darling)Help broaden use and eliminate blend wallsAllows things like jet fuel, not possible with gen 1True drop ins, eliminates blendwalls, just have to meet specsStill have cost issues due to higher cost feedstocksNext generation thrust #2 – similar products, lower quality feedstocks– e.g. cellulosic ethanolTake tougher feedstock (biomass) and make sugars to make ethanolMuch broader potential feedstock, avoid food vs. fuel, potentially much lower costTechnology and financing challengesStill have blendwall issues and cannot make drop ins/jetKiOR’s solution is to make better products with lower quality feedstocks
KiOR takes wood chips, logging residue, etc and converts them into gasoline and diesel blendstocks which can be used in pipelines, fueling stations, and engines TODAYOur primary focus is on developing our catalyst, which cracks the biomass into a renewable crude oil.Woody biomass combines with the catalyst in an FCC-type reactor Renewable crude is producedThe renewable crude is hydrotreatedAnd then we collect gasoline, diesel, and some fuel oil.
KiOR’s initial focus for feedstock and business development in Brazil will be focused on wood biomassAs you can see, Brazil has abundant wood resources. While much of the forests are in remote areas that are challenging to operate in, a significant amount of wood is available in very accessible markets such as the southeast part of the country.Investments in forest products and timber growing has been growing very rapidly. We expect for this to continue, especially as the demand for feedstock for energy continues its rapid growth. Some of the wood is converted to pellets and exported to other countries.KiOR’s model is to convert the wood biomass into transportation fuels for consumption in Brazil, although exporting of the end products, gasoline and diesel, are likely to occur.We estimate that a KiOR facility that makes about 2000 barrels of oil per day could operate on a sustainable basis with a secured source of feedstock harvested from a 60k hectare footprint.
Dan strope kior tecnologia
Renewable Fuels Have a Bright Future in Brazil<br /><ul><li>Vast Feedstock Resources with Huge Upside Productivity Opportunity