CONCEPT TO
COMMERCIALIZATION
- Navigating Process Development and Scale Up
Challenges
Presented by: Chris Rentsch & Mauricio Villegas
Koch Modular Process Systems
Chris Rentsch
Process Development Manager
Chris.rentsch@kochmodular.com
989-941-7051
Mauricio Villegas
Business Development Manager
Mauricio.villegas@kochmodular.com
832-859-0416
Koch Modular Presenter Biography
Chris Rentsch is a Process Development Manager at Koch Modular and is
responsible for process development and overall design and operating parameters of
chemical plant process systems within the Chemical Processing Industry.
Chris has 15+ years of experience working with developing technology companies as
well as established chemical industries, which includes
numerous international plant start-up assignments.
Prior to joining Koch Modular, he held various engineering roles at Origin, Dow and
BP. Chris holds a BS in Chemical Engineering from the University of Michigan.
Poll Question
Are you currently involved in, or anticipate being involved in an upcoming
project to commercialize a new technology?
1. Currently involved
2. Within 1 - 6 months
3. Within 6 - 12 months
4. 1 year +
5. n/a
Koch Modular Process Systems is a Joint Venture company,
partnered with , one of the world's most
prominent suppliers of mass transfer equipment. Koch-Glitsch’s
parent company is Koch Industries, one of the largest privately
held corporations in the United States.
Technical Expertise
For over 30 years Koch Modular has successfully designed and
supplied complete modular constructed process systems for the
worldwide Chemical Processing Industry.
Our customers rely upon us for our technical expertise and
quality systems.
Koch Modular at a Glance
Industries Served
▪ Performance Materials
▪ Specialty Chemicals
▪ Petrochemicals
▪ Polymers
▪ Pharmaceuticals/Biotech
▪ Food, Flavor & Fragrance
▪ Agricultural
▪ Biofuels
▪ Plastics/Rare Earth Metals
Recycling
▪ Renewable Chemicals
▪ Mining & Metals
▪ Environmental
▪ Oil & Gas
5
Our Capabilities & Expertise
Engineered Smarter. Built Modular.
Process
Engineering
Pilot Plant
Testing
Modular Process
Systems
Expertise in Distillation,
Liquid to Liquid Extraction,
Gas Absorption and
Thermal Design.
Pilot Plant specialized in
the development and
testing of mass transfer
processes.
Early FEL partner in the
design and commercialization
of fixed price modular process
systems with a performance
guarantee.
• Process Design Solutions
for Complex & Difficult
Mass Transfer problems
• Proven Technology
backed by Pilot Testing
and Koch Modular
Performance Guarantee
• Project Certainty and
Savings through Modular
Design and Delivery
Core Strengths
Navigating Process Development and Scale
Up Challenges
Critical Success Factors & Challenges
Project Critical Success Factors:
• Timely Concept/Technology Selection
• Viable CAPEX/OPEX Economics
• Technoeconomic Scalability
• Achieving Project Funding at Each Gate
• Successful Pilot Testing
• Design Development & Process Optimization
• Construction and Start-Up
• Time To Market
Project Team Challenges:
• Expertise Breadth
• Resource Availability
• Project Management Experience
• Pilot Testing Facilities
• Operations & Maintenance Expertise
modularLAUNCHTM
10
modularLAUNCHTM: Engineered Smarter. Built Modular.
6
Technology Development
FEL-2 FEL-3 Detailed Design
EPC Industry
±0%
±0%
12
modularLAUNCHTM: Engineered Smarter. Built Modular.
6
Process Technology Development
Process Development - Concept
1) chloroform
bp = 142F
2) dodecane
bp = 420F
Process Development - Concept
SOLVENT
PRODUCT
PRODUCT
PRODUCT
Process Development - Filtration
Process Development - Filtration
Filtration
Process Development - Filtration
Process Development - Filtration
Process Development - Distillation
Process Development - Distillation
Process Development
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0.95
1.00
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00
Liquid mol fraction AVapormolfractionA
Process Development
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Lower
Pressure
Intalox 1.5T
77 ft2/ft3
Liquid mol fraction AVapormolfractionA
Process Development
BX Wire Gauze
Process Development
Process Development – Heat Transfer
https://www.fluor.com/SiteCollectionDocuments/reboiler-
circuit-debottleneck-chemical-engineering-aug2017.pdf
See Figure 3 in “Reboiler Circuit Debottleneck with
No Hardware Changes”
Process Development – Heat Transfer
Thermosiphon Forced circulation Falling film Kettle
Process Development – Heat Transfer
0
500
1000
1500
2000
2500
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Area(ft2)
-20%
Next: Economic Feasibility Evaluation
Commercial Validation
Engineering the Details of Your First-of-a-Kind Commercial Plant
Design
Modular Construction: The Plant Takes Form
Current Changing Contract Landscape
EPC’s Exiting Competitive Lump Sum Contracting
KBR followed recently by Fluor announce exit from competitive EPC Lump-sum
bidding for energy and chemicals business citing:
• Increased Project Risk
• Transactional Market Place
• Market Uncertainty driven by COVID-19 Pandemic
35
Module Fabrication
All equipment, electrical, instrumentation and piping readily accommodated within the confines of the structural steel
frames and Factory Tested onsite prior to shipment.
Module Assembly Indoors in Horizontal Orientation
~90%
Field work
eliminated
Different Types of Truckable Modules
Demonstration Scale
System
Pilot Scale System
36
Different Types of Truckable Modules (Cont’d)
Commercial Scale System
37
Modular Project Delivery Model - Benefits
• Controlled environment
• Increased Productivity
• Schedule improvement
• Minimize interruption to
site operations
• Construction proceeds
while waiting on permits
• Reduced workplace
hazards and injury
• Reduced exposure to
Illness
Health & Safety ContractCompletion Commercial
• Greater risk transferred
to Contractor
• Performance Guarantee
• Single Source
Responsibility
• Advanced Definitive
Estimate
• Fixed Pricing
• Overall Cost Savings
Manage project risk through modularization and achieve project
predictability.
• LSTK Price Contracts
• Shorter Time to Market
• Lower Capital Cost
• Construction & Permitting Simops
• Minimize Hazards and Safety Risk
• Single Source Responsibility
39
Module Transportation
Koch Modular has existing relationships to manage module transportation to both domestic and global project sites.
Transporting modules requires highly specialized transport vehicles, a
knowledge of available transportation routes, interstate & local
permitting requirements as well as anticipated road hazards.
40
Module Staging and Installation
The remaining installation effort includes installing
any shipped-loose items and completing process
and utility piping tie-ins and necessary electrical
connections.
Start-up
42
Start Up & Commissioning Support
By employing a modular delivery model, projects can potentially reduce start up and
commissioning time by weeks.
Depending on number of modules within a process system, complete process systems can be
installed over a single day or over just a few days.
Since modules are ~90% completed and FAT tested, start-up and commissioning activities can
begin almost immediately and supported by Koch Modular staff.
Support includes:
• Operator Training
• Start-up and Commissioning Onsite Technical Support
Case Study
44
Recycled Polypropylene Project
Client: PureCycle Technologies
Product: Recycled Polypropylene
Process: Condfidential
Project Overview:
Koch Modular has been working together with PureCycle for more than three years
on the development of its advanced recycling technology which removes color, odor
and other contaminants from recycled feedstock resulting in virgin-like ultra-pure
recycled polypropylene (UPRP).
Koch Modular has completed the Phase I Feedstock Evaluation Unit (UPRP) and
delivered successful production of UPRP at scale. This award includes the supply of
a complete raw-material-in-finished-product-out process system, modularly
constructed in a controlled indoor environment and shipped to the plant site via
roadway.
Subsequently, Koch Modular has been awarded the contract to construct Phase II of
its commercial recycled polypropylene facility, to be located in Ironton, Ohio and
designed to produce over 105 million pounds of UPRP per year. Construction of the
facility is underway, and the plant is expected to come online in 2022.
PureCycle CEO Mike Otworth says,
“Koch Modular’s guidance, professionalism and end-to-end expertise in innovative
technologies scale-ups like this one, plus their modular construction approach, was
a critical success factor for our project.”
45
Biomass Conversion Project
Client: Confidential
Product: Chlorinated Hydrocarbon
Process: Reaction, Distillation and Filtration
# Modules: 17 (15 Process Modules, 2 Stair,
1 Standalone Vessel)
Schedule: 14 -16 months
Project Overview:
Koch Modular supported scale-up and commercialization
of complex bio-based plastic production technology.
Primary focus was front end engineering related to
conversion of biomass to a chlorinated hydrocarbon, via
reaction, distillation and filtration unit operations.
Scope of services included: engineering services,
process conceptualization and pilot testing phase,
process design package and capital project estimate,
detailed engineering, ISBL & OSBL controls and
construction of their demonstration scale system.
Technical challenges included changing byproduct
compositions as a result of evolving feedstock choice
and the need to produce enough volume (read yield) of
material, after feedstock and technology selection.
Poll Question / Q& A Session
Poll Question
From a Project Delivery standpoint, what do you see as your greatest
challenge to Commercializing new Technology?
1) Concept Selection / Scale-up
2) Cost Estimating / Economic Modeling
3) Resource Availability & Depth
4) Project Management
5) Other
Q& A Session
THANK YOU

Concept to Commercialization – Navigating Process Development and Scale Up Challenges

  • 1.
    CONCEPT TO COMMERCIALIZATION - NavigatingProcess Development and Scale Up Challenges Presented by: Chris Rentsch & Mauricio Villegas Koch Modular Process Systems Chris Rentsch Process Development Manager Chris.rentsch@kochmodular.com 989-941-7051 Mauricio Villegas Business Development Manager Mauricio.villegas@kochmodular.com 832-859-0416
  • 2.
    Koch Modular PresenterBiography Chris Rentsch is a Process Development Manager at Koch Modular and is responsible for process development and overall design and operating parameters of chemical plant process systems within the Chemical Processing Industry. Chris has 15+ years of experience working with developing technology companies as well as established chemical industries, which includes numerous international plant start-up assignments. Prior to joining Koch Modular, he held various engineering roles at Origin, Dow and BP. Chris holds a BS in Chemical Engineering from the University of Michigan.
  • 3.
    Poll Question Are youcurrently involved in, or anticipate being involved in an upcoming project to commercialize a new technology? 1. Currently involved 2. Within 1 - 6 months 3. Within 6 - 12 months 4. 1 year + 5. n/a
  • 4.
    Koch Modular ProcessSystems is a Joint Venture company, partnered with , one of the world's most prominent suppliers of mass transfer equipment. Koch-Glitsch’s parent company is Koch Industries, one of the largest privately held corporations in the United States. Technical Expertise For over 30 years Koch Modular has successfully designed and supplied complete modular constructed process systems for the worldwide Chemical Processing Industry. Our customers rely upon us for our technical expertise and quality systems. Koch Modular at a Glance
  • 5.
    Industries Served ▪ PerformanceMaterials ▪ Specialty Chemicals ▪ Petrochemicals ▪ Polymers ▪ Pharmaceuticals/Biotech ▪ Food, Flavor & Fragrance ▪ Agricultural ▪ Biofuels ▪ Plastics/Rare Earth Metals Recycling ▪ Renewable Chemicals ▪ Mining & Metals ▪ Environmental ▪ Oil & Gas 5
  • 6.
    Our Capabilities &Expertise Engineered Smarter. Built Modular. Process Engineering Pilot Plant Testing Modular Process Systems Expertise in Distillation, Liquid to Liquid Extraction, Gas Absorption and Thermal Design. Pilot Plant specialized in the development and testing of mass transfer processes. Early FEL partner in the design and commercialization of fixed price modular process systems with a performance guarantee. • Process Design Solutions for Complex & Difficult Mass Transfer problems • Proven Technology backed by Pilot Testing and Koch Modular Performance Guarantee • Project Certainty and Savings through Modular Design and Delivery Core Strengths
  • 7.
    Navigating Process Developmentand Scale Up Challenges
  • 8.
    Critical Success Factors& Challenges Project Critical Success Factors: • Timely Concept/Technology Selection • Viable CAPEX/OPEX Economics • Technoeconomic Scalability • Achieving Project Funding at Each Gate • Successful Pilot Testing • Design Development & Process Optimization • Construction and Start-Up • Time To Market Project Team Challenges: • Expertise Breadth • Resource Availability • Project Management Experience • Pilot Testing Facilities • Operations & Maintenance Expertise
  • 9.
  • 10.
  • 11.
    Technology Development FEL-2 FEL-3Detailed Design EPC Industry ±0% ±0%
  • 12.
  • 13.
  • 14.
    Process Development -Concept 1) chloroform bp = 142F 2) dodecane bp = 420F
  • 15.
    Process Development -Concept SOLVENT PRODUCT PRODUCT PRODUCT
  • 16.
  • 17.
    Process Development -Filtration Filtration
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
    Process Development 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00 0.00 0.050.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00 Liquid mol fraction AVapormolfractionA
  • 23.
    Process Development 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00 0.00 0.050.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00 Lower Pressure Intalox 1.5T 77 ft2/ft3 Liquid mol fraction AVapormolfractionA
  • 24.
  • 25.
  • 26.
    Process Development –Heat Transfer https://www.fluor.com/SiteCollectionDocuments/reboiler- circuit-debottleneck-chemical-engineering-aug2017.pdf See Figure 3 in “Reboiler Circuit Debottleneck with No Hardware Changes”
  • 27.
    Process Development –Heat Transfer Thermosiphon Forced circulation Falling film Kettle
  • 28.
    Process Development –Heat Transfer 0 500 1000 1500 2000 2500 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 Area(ft2) -20%
  • 29.
  • 30.
  • 31.
    Engineering the Detailsof Your First-of-a-Kind Commercial Plant
  • 32.
  • 33.
    Modular Construction: ThePlant Takes Form
  • 34.
    Current Changing ContractLandscape EPC’s Exiting Competitive Lump Sum Contracting KBR followed recently by Fluor announce exit from competitive EPC Lump-sum bidding for energy and chemicals business citing: • Increased Project Risk • Transactional Market Place • Market Uncertainty driven by COVID-19 Pandemic
  • 35.
    35 Module Fabrication All equipment,electrical, instrumentation and piping readily accommodated within the confines of the structural steel frames and Factory Tested onsite prior to shipment. Module Assembly Indoors in Horizontal Orientation ~90% Field work eliminated
  • 36.
    Different Types ofTruckable Modules Demonstration Scale System Pilot Scale System 36
  • 37.
    Different Types ofTruckable Modules (Cont’d) Commercial Scale System 37
  • 38.
    Modular Project DeliveryModel - Benefits • Controlled environment • Increased Productivity • Schedule improvement • Minimize interruption to site operations • Construction proceeds while waiting on permits • Reduced workplace hazards and injury • Reduced exposure to Illness Health & Safety ContractCompletion Commercial • Greater risk transferred to Contractor • Performance Guarantee • Single Source Responsibility • Advanced Definitive Estimate • Fixed Pricing • Overall Cost Savings Manage project risk through modularization and achieve project predictability. • LSTK Price Contracts • Shorter Time to Market • Lower Capital Cost • Construction & Permitting Simops • Minimize Hazards and Safety Risk • Single Source Responsibility
  • 39.
    39 Module Transportation Koch Modularhas existing relationships to manage module transportation to both domestic and global project sites. Transporting modules requires highly specialized transport vehicles, a knowledge of available transportation routes, interstate & local permitting requirements as well as anticipated road hazards.
  • 40.
    40 Module Staging andInstallation The remaining installation effort includes installing any shipped-loose items and completing process and utility piping tie-ins and necessary electrical connections.
  • 41.
  • 42.
    42 Start Up &Commissioning Support By employing a modular delivery model, projects can potentially reduce start up and commissioning time by weeks. Depending on number of modules within a process system, complete process systems can be installed over a single day or over just a few days. Since modules are ~90% completed and FAT tested, start-up and commissioning activities can begin almost immediately and supported by Koch Modular staff. Support includes: • Operator Training • Start-up and Commissioning Onsite Technical Support
  • 43.
  • 44.
    44 Recycled Polypropylene Project Client:PureCycle Technologies Product: Recycled Polypropylene Process: Condfidential Project Overview: Koch Modular has been working together with PureCycle for more than three years on the development of its advanced recycling technology which removes color, odor and other contaminants from recycled feedstock resulting in virgin-like ultra-pure recycled polypropylene (UPRP). Koch Modular has completed the Phase I Feedstock Evaluation Unit (UPRP) and delivered successful production of UPRP at scale. This award includes the supply of a complete raw-material-in-finished-product-out process system, modularly constructed in a controlled indoor environment and shipped to the plant site via roadway. Subsequently, Koch Modular has been awarded the contract to construct Phase II of its commercial recycled polypropylene facility, to be located in Ironton, Ohio and designed to produce over 105 million pounds of UPRP per year. Construction of the facility is underway, and the plant is expected to come online in 2022. PureCycle CEO Mike Otworth says, “Koch Modular’s guidance, professionalism and end-to-end expertise in innovative technologies scale-ups like this one, plus their modular construction approach, was a critical success factor for our project.”
  • 45.
    45 Biomass Conversion Project Client:Confidential Product: Chlorinated Hydrocarbon Process: Reaction, Distillation and Filtration # Modules: 17 (15 Process Modules, 2 Stair, 1 Standalone Vessel) Schedule: 14 -16 months Project Overview: Koch Modular supported scale-up and commercialization of complex bio-based plastic production technology. Primary focus was front end engineering related to conversion of biomass to a chlorinated hydrocarbon, via reaction, distillation and filtration unit operations. Scope of services included: engineering services, process conceptualization and pilot testing phase, process design package and capital project estimate, detailed engineering, ISBL & OSBL controls and construction of their demonstration scale system. Technical challenges included changing byproduct compositions as a result of evolving feedstock choice and the need to produce enough volume (read yield) of material, after feedstock and technology selection.
  • 46.
    Poll Question /Q& A Session
  • 47.
    Poll Question From aProject Delivery standpoint, what do you see as your greatest challenge to Commercializing new Technology? 1) Concept Selection / Scale-up 2) Cost Estimating / Economic Modeling 3) Resource Availability & Depth 4) Project Management 5) Other
  • 48.
  • 49.