No large corporation is without its lawyers. Here is a short disclaimer which advises you not to run out and buy corporate stock solely on the basis of what I say here today
I intend to cover only two points in the discussion today. First, introduce you to IH2 as a cost effective route to convert biomass into cellulosic hydrocarbon fuels and secondly, perhaps even more importantly, a strategy to combine IH2 operations with a variety of biomass handling operations to extract economic synergies and thus further increase the value derived from this exciting technology
‘Require no infrastructure’ is the key point here. For a greenfield construction site the design principle provides maximum flexibility with respect to choice of location. It does come with a higher capital cost, however, it appears to be lower than each of the competitive all in prices we have found for finished renewable hydrocarbons.‘Minimal unsustainable impact’ indicates IH2 is intended to use as much closed loop recycle as possible. The exceptions are the export of thermal and chemical energy and emission of CO2 derived from biomass conversion.
*Original analysis did not allow for direct oxygen measurement The Oxygen content was therefore determined by difference, which does not allow for reporting accuracy below 1-wt%.
I won’t have time to talk about MSW
Entire IH2 process operating within the Pulp and Paper Mill, consuming materials not sent to the rest of the process, tops, stumps, chips, bark, mill residueExport steam Energy for Paper Machine, Power Generation
In the case of corn ethanol, as the ethanol industry expands there could be an excess of distiller’s dried grains with solubles, which contributes up to 0.10$/Liter Ethanol produced. Primary outlet for this material is livestock-feed (2007) - If the market becomes saturated this 0.10$/L which is key to ethanol processing economic viability is jeopardized. Excess DDGS could potentially be fed w/stover to increase hydrocarbon production and gain higher value product distribution.http://nabc.cals.cornell.edu/pubs/nabc_19/NABC19_5Plenary2_Rosenstrater.pdfhttp://www1.eere.energy.gov/biomass/ethanol_myths_facts.htmlEthanol Myths and FactsGraph – Source Wang, et al, Environmental Research Letters, Vol.2, 024001, May 22, 2007C.I. - Carbon IntensityCarbon Footprint Analysis of IH2 Biofuels: Corn Stover Feedstock from Cargill Company - David Shonnard1, et al Michigan Technological UniversityEOR – Enhanced Oil Recovery Cane Ethanol has high GHG reduction because bagasse used as fuel to the ethanol production process. Using Bagasse as IH2 feed would be an economic/GHG reduction analysis and would presume that an alternative biodervied fuel was available to replace the bagasse used as fuel currently.
Consumes extraction residue or whole harvest – 2 Scenarios Food & Fuel – Petro Algae Environmental Remediation – Aquaflow Provides significant export high pressure steam Algal Biomass growth – Food & Fuel PA example they could use steam to hold Rx’s at temperatureEnergy Export – Environmental Remediation – Don’t need to facilitate Algae growth, use steam for export energy Provides CO2 and NH3 / (NH4)2SO4 fertilizer concentrateProvides recession-resistant revenue from high quality ‘drop-in’ fuels or blend stocks
Stand Alone or,Reduced capital cost optionsExisting hydrogen supplyIdled assets or Rx’s that could be suitable for Second Stage Facilities have existing storage / distribution network for liquid hydrocarbonsProvides Refiners with control to assure their supply of renewable fuel to meet mandate “License to operate”RFS-2 “each producer and importer of gasoline and diesel determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel,” according to EPA. Case could be made that the light ends from IH2 still end up being green moles of H2 because they came from a green source, but whether that would be “allowed” or could be counted/metered is debatable at this stage.
Case by case basis. Rate of Return 10% used for NREL economicsFeed cost 72$/Ton dry basis (10% moisture) as deliveredCapital Cost NREL 234-Million $, 70-Million gallons/yr, 2000-ton/day
Platts & ERTC presentation
Direct Production of Gasoline and Diesel from Biomass using Catalytic Hydropyrolysis or Integrated Hydropyrolysis and Hydroconversion (IH2) Celeste McLeod, Alan Del Paggio, Lawrence Kraus CRI Catalyst Company, Houston, Texas, United States Terry Marker, Larry Felix, Martin Linck, Michael Roberts Gas Technology Institute, Des Plaines, Illinois, United States11/15/2011 1
DisclaimerThe information contained in this material is intended to be general in natureand must not be relied on as specific advice in connection with any decisionsyou may make. None of CRI/Criterion Inc or any of its affiliated companies areliable for any action you may take as a result of you relying on such material orfor any loss or damage suffered by you as a result of you taking this action.Furthermore, these materials do not in any way constitute an offer to providespecific products or services. Some products or services may not be availablein certain countries or political subdivisions thereof.11/15/2011 2
Points Covered• IH2 – A path to “drop in” cellulosic hydrocarbon fuels & blend stocks• Economic value derived from integration with existing operations11/15/2011 3
IH2 Design Principles• Produce fungible cellulosic hydrocarbon fuel/blend stock from a broad range of inedible/residual biomass feed at low cost• Requires no infrastructure other than road/rail transport into and out of the production site• Have minimal unsustainable impact on the surrounding environment11/15/2011 4
IH2 Design Elements• Feed Conditioning Unit: – Sized, mixed and dried to moisture contents between 10-45wt%• Hydropyrolysis Reactor (bubbling fluidized bed) – Biomass meets catalyst and H2 at ~400C to remove >90% oxygen• Hydrogen Manufacturing Unit (HMU) – Converts C3- gases to renewable H2 sufficient to meet all requirements• Hydroconversion Reactor (low pressure fixed bed HT) – 1st stage product „polished‟ over a second catalyst system11/15/2011 5
IH2 Advantages & Eleven Key DifferentiatorsAdvantages Green CO2Stand Alone or Synergistic Operation Light Gases 3) Renewable H2Feedstock Flexible Wood/Forest Hi Press Residue SteamDifferentiators HDO‟d LiquidExothermic Ag Residue CellulosicLow Capital (low pressure, low TAN, simple) Hydrocarbon ProductLow Operating costs Gasoline, Jet and DieselHydrocarbon Yields 80-160 gal/ton MAF Garbage (MSW) 2) Bubbling Fluidized Bed Proprietary Catalyst 4) Fixed Bed Hydrotreater RangeSelf-sufficient internal “green” H2 Renewable H2 Proprietary Catalyst Hot Water Hydrocarbon 340-470C Renewable H2 >90% Green House Gas reduction <500psig <500psig Energy Crops Eases logistical constraints (H2)High BTU HC (blend stock & ‘drop in’) N/S stream for FertilizerReplaces ‘whole barrel’ gas/jet/diesel AlgaeFungible in Fuel Pool Hydropyrolysis HydroconversionAttractive economics Char (burn)Integrating existing technologies 1) Feed Conditioning Sizing , Drying & FeedingRapid implementation 11/15/2011 6
IH2 Raw Liquid Products Hydrocarbon Hydrocarbon Water Water Wood Lemna 1stStage CRI-4211 CRI-4221 2nd Stage CRI-4212 CRI-421211/15/2011 7
IH2 Operating Modes• Full Stand Alone• Economically Integrated – Pulp & Paper / Forest Products – 1st Generation Ethanol – Algae – Refining – (Municipal Solid Waste)11/15/2011 9
IH2 Synergy - Pulp & Paper / Forest Products Green CO2 Light Gases 3) Renewable H2Consumes various feeds Wood/Forest Residue Hi Press slash Steam round wood HDO‟d Liquid chips Ag Residue saw dust Cellulosic Hydrocarbon mill sludges Product Gasoline, Jet mixed feeds Garbage (MSW) 2) Bubbling Fluidized Bed 4) Fixed Bed and Diesel Proprietary Catalyst Hydrotreater Range Renewable H2 Proprietary Catalyst Hydrocarbon Hot WaterImproved site margins 340-470C <500psig Renewable H2 <500psig conversion of low cost feeds Energy Crops land fill/other cost avoidance N/S stream for Fertilizer export HP steam to mill Algae liquid hydrocarbon for sale or use Hydropyrolysis Hydroconversion Char (burn) 1) Feed Conditioning Sizing , Drying & Feeding 11/15/2011 10
IH2 Synergy - Ethanol Plants Green CO2Consumes cellulosic residues bagasse Light Gases 3) Renewable H2 stover Wood/Forest Hi Press Residue mixed feeds Steam HDO‟d LiquidImproved site margins Ag Residue Cellulosic conversion of low cost feeds Hydrocarbon Product higher value use of cellulose Gasoline, Jet export steam offsets use of cellulose Garbage (MSW) 2) Bubbling Fluidized Bed Proprietary Catalyst 4) Fixed Bed Hydrotreater and Diesel Range prevent market surplus DDGS Renewable H2 Proprietary Catalyst Hot Water Hydrocarbon 340-470C Renewable H2 provides liquid fertilizer for use <500psig <500psig Energy Crops cellulosic hydrocarbon for sale or use N/S stream for FertilizerReduces site average C.I. of alcohol made Algae Hydropyrolysis Hydroconversion Corn ethanol averages 19% reduction Char (burn) Cane ethanol averages 78% reduction 1) Feed Conditioning Sizing , Drying & Feeding IH2 derived fuels have ~93% reduction* 11/15/2011 11
IH2 Synergy - Multiple Algae Scenarios Green CO2Consume post extractive residue Light Gases 3) Renewable H2 protein extraction (food & fuel) Wood/Forest Residue Hi Press lipid extraction (energy crop) Steam HDO‟d LiquidConsume whole algae Ag Residue Cellulosic Useful for remediation Hydrocarbon Product Useful to simplify process for fuel Gasoline, Jet with mixed cellulosic/wood feeds Garbage (MSW) 2) Bubbling Fluidized Bed 4) Fixed Bed and Diesel Range Proprietary Catalyst Hydrotreater Renewable H2 Proprietary Catalyst Hydrocarbon 340-470C Renewable H2 Hot WaterImproved site margins <500psig <500psig conversion of low cost feeds Energy Crops export HP steam N/S stream for Fertilizer re-use of CO2/liquid fertilizer Algae use of low grade heat to ponds Hydropyrolysis Hydroconversion liquid hydrocarbon for sale or use Char (burn) 1) Feed Conditioning Sizing , Drying & Feeding 11/15/2011 12
IH2 Synergy - Refining Option 1: Full Standalone Location Flexibility, Minimum Environmental Impact Maximum GHG reduction Lowest CI product Highest Capital Cost Option 2: Integrated with Refinery HT Minimum Environmental Impact Lowest CI product Maximum GHG reduction Lower Capital Cost Option 3 Integrated with Refinery H2 Higher Environmental Impact Reduced GHG reduction Higher CI product Lowest Cost Capital 25-30% lower than base case 11/15/2011 13
IH2 Integrated w/ Refinery Capex/Opex Advantaged • Stand Alone – NREL Minimum Selling Price (MSP) $1.60/gal (2007 USD) – Green field economics – 2000 t/d wood based process • Refinery Synergy – Use existing hydrotreater • Reduces Capital Cost ~3.3MM$ • Estimated MSP $1.59/gal (2007 USD) – Use existing hydrotreater & Refinery H2 • Reduces Capital Cost ~47.4MM$ • Estimated MSP $1.36/gal (2007 USD) • NREL Economics Validated by major American Engineering Company 11/15/2011 14
IH2 Conclusions• IH2 uses virtually any (ligno)cellulosic biomass to produce hydrocarbon fuels/blend stock at low cost• IH2 offers Stand Alone & Synergistic Installation• IH2 Synergistic Installation has benefits beyond solely hydrocarbon production, which varies by industry• IH2 Refinery Synergy can reduce capital cost and fuel MSP• Fuel MSP may further decrease based on feed selection and site requirements• Fuel MSP at current estimate of 1.60$/gal is typically less than bulk and rack pricing for regular/premium gasoline. Additional upside.11/15/2011 15