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Making Distributed Gas to Liquids a Reality
- 1. SMI GTL, 4th October 2012 Neville Hargreaves Business Development Director Making Distributed Gas to Liquids a Reality
- 2. 2 Market in North America perfect for GTL 0 5 10 15 20 25 30 $/MMBTU Low Sulphur Diesel Price Natural Gas Price Prices are monthly averages at LA (diesel) and Henry Hub (gas); source: EIA
- 3. 3 GTL can make money from associated gas 5% of natural gas production is flared Regulation of flaring increasing Current solutions – Compression, then reinjection or transport – Electricity generation GTL allows valuable products to be created and shipped
- 4. 4 What does distributed GTL require? Economics at right scale Modularisation
- 5. 5 $- $25 $50 $75 $100 $125 1 2 3 Diesel Cost / Value ($/bbl) Fuel Spread Oil (WTI) OPEX Natural Gas Depreciation Winning economics for plant owners $- $25 $50 $75 $100 $125 1 2 3 Diesel Cost / Value ($/bbl) Fuel Spread Oil (WTI) OPEX Natural Gas Depreciation Clean Diesel Price OCG plant ≥5,000 bpd OCG plant 1,500 bpd $4/MMTBU gas $63-66 diesel Key Assumptions Fully integrated facility producing 75% diesel & 25% naphtha Gas price = $4/MMBTU 9,000 scf per barrel Capital cost $100k per bpd Operating cost = $15/bbl 20 year plant life Enables 15% - 20% ROI (excluding product premium) Margin
- 6. 6 Unique technology: modular GTL GTL “for the masses” – Large number of opportunities for 1,000 – 15,000 bpd Modular – Suitable for remote locations – Capacity can be adjusted to field Lower risk – Smaller plants = smaller investments – Investment can be phased Reduced costs – Shop fabricate units – Modules / plant ‘designed once’ 1000-1500 bpd FT module designed by Ventech Engineers
- 7. 7 Two distinct markets Velocys Steam Reforming CO / H2 Syncrude Velocys Fischer- Tropsch Blend into crude Diesel or Jet Fuel Auto Thermal Reforming CO / H2 Syncrude Velocys Fischer- Tropsch Blend into crude Offshore Onshore Hydro- cracking OR
- 8. 8 Velocys Fischer-Tropsch reactor core Close integration of exothermic Fischer-Tropsch synthesis and steam generation 0.1 – 10mm 0.1 – 10mm
- 9. 9 Microchannel technology systems outperform conventional reactors Controls reactions at optimal conditions Accelerates processes by 10 – 1,000 fold Allows use of novel, much more active catalysts Enables smaller, more productive reactors FT Reactor Core
- 10. 10 Demonstration & commercial FT reactors 2010 2011 2012 0.5 bpd 25 bpd 200 bpd 50X 8X Full single core Multi-core
- 11. 11 0 200 400 600 800 1000 1200 1400 1600 Catalyst Productivity (kg/m 3 /hr) Fixed Bed Slurry Bed OCG Highest FT catalyst productivity (Shell) (SASOL)
- 12. 12 Exceptional catalyst stability 190 200 210 220 230 240 250 260 270 280 290 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 100 200 300 400 500 600 700 Temperature ºC CO Conversion, CH 4 Selectivity Time on Stream (days) 600+ Days without regeneration 600+ Days without regeneration CO conversion CH4 selectivity Temperature
- 13. 13 0 1000 2000 3000 4000 5000 6000 7000 8000 United States Europe, Russia Canada China Japan Australia South Korea South Africa Other Granted Claims Pending Claims Exhaustive patent position OCG has over 25,000 patent claims across the globe
- 14. 14 Petrobras Fortaleza, Brazil 6 bpd GTL in 2013 Facilities with Velocys reactors SGC Energia Güssing, Austria 0.5 bpd BTL in 2010 Microchannel FT Microchannel FT and SMR Confidential FT in 2012 Velocys Pilot Plant 0.5 bpd GTL in 2012 Rosneft/Gazohim 100 bpd GTL in 2014 Solena Commercial BTL, 2000+bpd London by 2015 Calumet Commercial GTL, 1000+ bpd Karns City, PA, US by 2015
- 15. 15 Velocys Pilot Plant and training facility Fully integrated microchannel SMR, FT & hydro-cracking (0.5 bbl/day) Stage I complete: SMR operating FT by year end Integrated performance data to support differing client design needs Permanent training facility for plant operators
- 16. 16 Full single-core reactor demonstration Existing facility with FT capabilities Reactor manufactured and delivered to site in Q1 ‘12 Phase 1 testing successfully completed Will support design basis of 5,000 bpd commercial facility
- 17. 17 Commercial selection for GreenSky London Velocys selected by Solena Fuels as FT supplier for commercial waste-biomass- to-liquids plant Solena GreenSky London plant with partner British Airways Competitive selection process based on technology evaluation advised by Fluor Picture courtesy of British Airways
- 18. 18 Selection by Calumet Specialty Products Velocys selected to supply FT technology for 1,000 bpd commercial GTL plant in Karns City, Pennsylvania, USA Final ‘decision to proceed’ expected 1H 2013 About Calumet Revenue: $4.1bn >20% pa 5yr revenue growth Produces over 1,500 specialty products which are sold to over 2,700 customers Operates 8 facilities with total throughput of 135,000 bpd
- 19. 19 Calumet – Karns City, PA Proposed site of Velocys first GTL plant
- 20. 20 Calumet – Karns City, PA In the heart of the Marcellus Shale Karns City, PA
- 23. 23 Commercial (1,000 bpd+) modular GTL plant design Designed by Ventech Engineers Modules 14m x 4m x 4m Target Capital Cost = $100,000 per bpd Three engineering studies underway for US modular GTL (including Calumet) Diesel Haldor Topsoe Auto Thermal Reforming CO / H2 Syncrude Velocys Fischer- Tropsch Haldor Topsoe Hydro- cracking 125 – 200 bpd reactors
- 24. 24 Modular GTL plant: FT island Designed by Ventech Engineers
- 25. 25 Summary The time has come for distributed scale GTL Velocys: leader in advanced distributed scale GTL technology – Over $300M invested – Over 7,500 granted GTL patent claims Complete modular GTL solutions Commercial roll-out under way
- 26. 26 Neville Hargreaves Business Development Director neville.hargreaves@oxfordcatalysts.com Oxford Catalysts Ltd 115e Milton Park Oxford, OX14 4RZ, UK Phone: +44 1235 841700 Velocys Inc 7950 Corporate Blvd. Plain City, OHIO 43064 USA Phone: +1 614/733-3300 Web: www.velocys.com Contact information