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  • Title: Techno-economic Analysis of the Integrated Hydropyrolysis andHydroconversion Process for the Production of Gasoline and Diesel Fuels fromBiomassAuthor: Eric C. D. TanPlatform: Analysis ReportDate: May 23, 2011
  • Energy Biofuels Trends Brazil E25 mandate back as of May 2013 – partially because of gasoline priceArgentina increased production 32%, Colombia by 7% and Peru met 7.8 vol% Next generation Biofuels – only Brazil investing in Next Gen, several plants under constructionAccording to the Renewable Fuels Association, Jamaica, Costa Rica and El Salvador are respectively the second-, third- and fourth largest exporters of fuel ethanol to the US. The region began exporting ethanol to the US under the Caribbean Basin Initiative, which allowed tariff-free exports of ethanol up to 7 percent of US ethanol production.
  • CRI LARTC 2013

    1. 1. Cellulosic Hydrocarbon Fuels from IH2 Technology – Fuel Quality Celeste McLeod, CRI Catalyst Company, 910 Louisiana, Houston, TX 77002 LARTC Presentation 10 April 2013
    2. 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 and ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 10 April 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. 9/24/2013 2
    3. 3. Discussion Topics • Introduce Gas Technology Institute (GTI) and CRI Catalyst (CRI) • IH2 Technology overview • IH2 Technology product quality • IH2 process economics • IH2 Technology integration sugar/ethanol • IH2 commercial deployment 9/24/2013 3
    4. 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 licenses granted & 500 products taken to market 9/24/2013 4 Pilot Scale Gasification Campus Energy & Environmental Technology Center Offices& Labs CRI is the partner for IH2
    5. 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 – Belgium 9/24/2013 5
    6. 6. What is the IH2 Process? • IH2 process – Catalysts, Hydrogen & Heat – Cost-effectively converts wide variety of biomass – Directly produces hydrocarbon “drop in” fuels (R100) and/or high quality blend stock (>R50) 9/24/2013 6 • IH2 Technology offers integration opportunities – Refinery, paper mill, ethanol plant, agricultural, or recycling operations – Creates higher value from biomass than afforded by heat and electrical power sales (NA basis)
    7. 7. 2) Fluidized Bed Proprietary Catalyst Renewable H2 340-470C <500psig 1) Feed Conditioning Sizing , Drying & Feeding 1st Stage 2nd Stage 3) Fixed Bed Proprietary Catalyst Renewable H2 370-400C <500psig HDO‟d Vapors 4) SMR C1-C3 GasRenewable H2 Process 9/24/2013 7 IH2 Process (Simplified, Stand Alone) Distilled Hydrocarbon Hi Pressure Steam Clean Water Fertilizer BioChar Biogenic CO2 Crop Residue City Waste Wood/Forest Residue Energy Crops Algae Gasoline, Jet and Diesel Range HCs Feed Products
    8. 8. IH2 Transformative Differentiators • Fungible, high purity hydrocarbon fuel and/or blend stock products • Nearly carbon neutral* • Feedstock flexible w/ high product yields – 67-157 US gallons/US ton • Attractive economics – ~ $2/gal; 500 dry MT/day wood; USGC – Low capex (4 major process steps, low pressure, non corrosive) – Low opex (feedstock predominates) • Exothermic process with 72% - 86% bioenergy recovery (wood) • Market Ready! Combination of Available Technologies 9/24/2013 8 *>94% GHG reduction per Professor David Shonnard at MTU:
    9. 9. 9/24/2013 9 Evolution of IH2 Technology Hydrocarbon Water Total Liquid Product 2nd Gen Catalyst Lab Scale Total Liquid Product 1st Gen Catalyst Lab Scale Hydrocarbon Water Gas/Jet/Diesel Product 3rd Gen Catalyst Lab Scale 4Q09 “R5” Quality 3Q10 “R25” Quality 2Q12 “R60+” Quality “GOAL“ Drop In Stand Alone “R100” Gasoline Product 3rd Gen Catalyst Pilot Plant Scale Jet/Diesel Product 3rd Gen Catalyst Pilot Plant Scale Advanced catalysts improve product, Wood Example Water Product 3rd Gen Catalyst Pilot Plant Scale Process & Catalyst R&D Continues
    10. 10. 9/24/2013 10 Comparison of Liquid Quality from Woody Biomass Pilot plant Laboratory unit % Carbon 88.20 88.40 % Hydrogen 11.60 11.00 % Sulfur 0.02 0.02 % Nitrogen <0.10 <0.10 % Oxygen BDL BDL Total acid number, mg KOH/g <0.05 <0.05
    11. 11. 9/24/2013 11 IH2 Liquid Product Quality(Wood) • 3rd generation gasoline – Gasoline Meets ASTM D-4814-10b unleaded gasoline specifications – R100 RBOB Quality Economy & Intermediate U.S. – Evaluating EU split v EN-228 • 3rd generation diesel – Passed all D-975-11 as No 2, general purpose middle distillate fuel as R100 – Except Cetane Index & Viscosity – Diesel aromatic, currently ~R50  Target R100 – Diesel (whole algae) likely R100 (in testing) – Evaluating EU split v EN-590 LA options for IH2 hydrocarbons: internal consumption or export
    12. 12. ** Prorated Expense (10%), H O & Construction (20%), Field Expense (10%), Working Capital (10%) , Project Contingency (30%) • Stand Alone/Green Field (US Gulf Coast basis) • 2000mt/d wood (50% moisture fed, dried to 10% moisture at 1st stage) • 60% financed at 8% interest, overall 10% IRR • Feed Stock ~55% of Operating Cost • No subsidies, tax, RIN or carbon credits included! • Minimum Fuel Selling Price – $0.433/L (2007) $0.476/L (2012) • Refinery Synergy w/Refinery H2 Supply • Reduces TIC ~55.0MM$ • Estimated MFSP $0.359/L (2007) $0.394/L (2012) • KBR FEL-3 underway • Opex validated by prospective clients IH2 Process Economics (USGC) NREL 09/12 Basis 9/24/2013 12 127.5 6.313.2 116.5 Installed Equipment Costs Land/Develop Permits & S/U Standard Project Add-In's** Total Capital Investment $263mln 91.31 7.8 2.14 17.3 5.9 29.6 Wood $71.97/dry ton Other Op Costs: Catalyst, Disposal, etc. Fixed Cost Depreciation Avg Income Tax Avg ROI Operating Costs Total $1.64/gal* *Includes $0.1884/gal coproduct credit 4.7 17.7 4.0 55.0 2.8 2.8 40.5 Feed 1st Stage/2nd Stage Fractionation HMU Ammonium Sulfate Absorption/Stripping Utilities & Contingency @ 35% Installed Equipment Costs $127.5mln
    13. 13. Sugar/Ethanol Important Latin American Region 9/24/2013 13 Country Area Production Productivity % of World Production(million ha) (million tons) (Tons/ha) Brazil 5.343 386.2 72.3 29% India 4.608 289.6 62.8 22% China 1.328 92.3 65.5 7% Thailand 0.97 64.4 66.4 5% Pakistan 1.086 52 47.9 4% Mexico 0.639 45.1 70.6 3% Colombia 0.435 36.6 84.1 3% Australia 0.423 36 85.1 3% USA 0.404 31.3 77.5 2% Philippines 0.385 25.8 67.1 2% Indonesia 0.35 25.6 73.1 2% Cuba 0.654 22.9 35 2% South Africa 0.325 20.6 63.4 2% Argentina 0.295 19.2 65.2 1% Myanmar 0.165 7.5 45.4 1% Bangladesh 0.166 6.8 41.2 1% WORLD 20.42 1333.2 65.2 100% • ~38% World Sugar Cane (SC) • Brazil, Colombia, Argentina known SC Ethanol Producers; Guatemala, Jamaica, Costa Rica, El Salvador export SC Ethanol • Residual materials – Bagasse, Cane Trash, Filter Cake, Spent Wash, Molasses • Next Generation Biofuels – Brazil • IH2 w/Sugar/Ethanol  Cellulosic Hydrocarbon Sugar Cane Production Data & Sugar Cane Growth Region Map
    14. 14. 9/24/2013 14 Cogeneration Steam  Electricity 34.5 – 65 GW/yr** IH2 Integration w/ Sugar/Ethanol *Material Energy Balance provided by J.P.Mukherji Associates Pvt. Ltd. – India ~150 days Operation, Bagasse @50% Moisture, Indian Sugar Mill Typical Sugar/Ethanol plant 160 t/hr Sugarcane Excess Bagasse: 41.8 t/hr; 147854t/yr* IH2 Hydrocarbon & Steam***  Electricity 32.1 MML Hydrocarbon/yr ** Location, Cogeneration Equipment Efficiency, Steam T, P, Distribution Losses, etc. impact final GW available for sale to Grid *** 72% - 86% bioenergy recovery
    15. 15. 9/24/2013 15 IH2 Integration w/ Sugar/Ethanol High Level Evaluation Cogeneration Steam  Electricity 34.5 – 65 GW/yr** IH2 Hydrocarbon & Steam***  Electricity 32.1 MML Hydrocarbon/yr** Location, Cogeneration Equipment Efficiency, Steam T, P, Distribution Losses, etc. impact final GW available for sale to Grid *** 72% - 86% bioenergy recovery • IH2 Liquid hydrocarbons benefit v Cogeneration • IH2 Location specific – Commodity Price – Conversion – Efficiency – IH2 Capital  MFSP • IH2 Hydrocarbon Only • IH2 Feed Flexible – Other Sugar/Ethanol residues – Local Alternative Feeds World bank – gasoline base prices by country Business week – Electricity prices by country 08/12 * Brazil has since reduced electricity price per KWH $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00EstimatedMM$/yr Bagasse Conversion Cogeneration v IH2 Hydrocarbon IH2 Hydrocarbon @ Resale 75% of Retail IH2 Hydrocarbon @ Resale 50% of Retail Low - Electricity to Grid High - Electricity to Grid Average - Electricity to Grid
    16. 16. • Bench Scale – 02/2009 @ 0.5kg/hr • Pilot Scale – 02/2012 @ 50kg/d – Confirmed bench scale results – Fuels for EPA Registration – Fuels for ASTM Evaluation – Gasoline (wood) is R100 • Pre Commercial Scale – BDEP for 5mt/d cellulose done – 1st demonstration license awarded 12/2012, more expected • Commercial Scale – KBR is CRI‟s exclusive basic engineering partner – FEED 500 & 1000mt/d wood (FEL-2 complete, FEL-3 underway) – Full Scale Deployment Target Q1 2014 IH2 Technology Deployment 169/24/2013
    17. 17. Commercial Timeline, Current Status 9/24/2013 17 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Process Variables and Semi- Continuous Operation Lab Scale Demo Scale Units Only (11 units) (Brownfield Construction; Date Basic Engineering Starts) Full Commercial Construction Basic/Detailed Engineering Construct 50kg/d Pilot Plant Receive Unit Pilot Scale Continuous Pilot Plant Operation Shake Down Wood, 5-1000mt/d Crop Residues, 5-10mt/d Micro Algae, 5mt/d Mixed Paper/OCC/Urban Wood, 5mt/d FEL-3Complete5mt/d FEL-2Complete500mt/d FEL-2Complete1000mt/d Today FEL-2Underway5mt/d FEEDSettobegin5mt/d
    18. 18. – Cost-effective process developed by GTI using CRI proprietary catalysts – Converts biomass directly to hydrocarbon fuels and/or high quality blend stocks – Self-sufficient & self-sustaining w/ little lasting environmental impact, needs only transport in/out – Feedstock flexible – Nearly carbon-neutral – Integrated for potentially improved economics – Currently in FEED (FEL-2/-3) for multiple feed demonstrations – Available exclusively from CRI Catalyst Company 189/24/2013 Technology is:
    19. 19. Assumptions, Credits, References 1. Slide 3 Image credit: <a href=' let.html'>iqoncept / 123RF Stock Photo</a> 2. Slide 6 Image credit: <a href=''>styleuneed / 123RF Stock Photo</a> 3. Slide 8 Transformative Differentiators *>94% GHG reduction per Professor David Shonnard at MTU: 4. Slide 8 Image credit: <a href=''>kamonrat / 123RF Stock Photo</a> 5. Slide 11 – Hart Energy‟s international Fuels Quality Center – Sulfur Limit World Graphs for Diesel and Gasoline 6. Slide 12 IH2 Process Economics (USGC) NREL 06/11 Basis 7. Slide 13 - According to the Renewable Fuels Association, Jamaica, Costa Rica and El Salvador are respectively the second-, third- and fourth largest exporters of fuel ethanol to the US. The region began exporting ethanol to the US under the Caribbean Basin Initiative, which allowed tariff-free exports of ethanol up to 7 percent of US ethanol production. 8. Slide 13 Data & Sugarcane Map via 9. Slide 13 Sugar Cane Photograph By Rufino Uribe (caña de azúcar) [CC-BY-SA-2.0 (], via Wikimedia Commons 10. Slide 14 Maximize Returns w/ IH2 Integration Sugar/Ethanol Material Energy Balance provided by J.P.Mukherji Associates Pvt. Ltd 11. Data Assumptions used for Slide 15 Maximize Returns w/ IH2 Integration Sugar/Ethanol – - Electricity Prices – – World Bank Gasoline Prices by Country (2010) – -- Discount Resale Gasoline Price U.S. Used to Adjust World Bank Values to Resale taken at 75% of Retail based on U.S. reduction retail to resale taken from eia data. – Conservative estimate for IH2 hydrocarbon value was taken at reduced rate of 50% of retail for each country – CPI Inflation Calculation taken at 106% conversion 2010 to 2013$ – Economic benefits included are for illustration only. Further economic evaluation should be conducted on a site specific basis. – Electricity conversion was estimated based on Mass Balance provided by J.P. Mukherji Associates Pvt. Range of electricity conversion was assumed based on internal values for conversion . Low end total GW produced assumed an 80% efficiency and high end assumed no losses. Estimated electricity price applied to calculation for the Low scenario assumed 80% of the retail electricity price was the selling rate per KWH back to the grid. High scenario assumed the selling rate per KWH was the same as retail price. 12. Slide 14 &15 electricity pylon Image credit: <a href=' clouds-and-blue-sky-background.html'>peteg / 123RF Stock Photo</a> 9/24/2013 19
    20. 20. Thank You, Gracias & Obrigada 9/24/2013 20 Learn more at