3. 3
February
2016
Novello GTL
Source:
November
2015
EIA
STEO
report.
USA
YTD
2015
avg
9.1
bbl/day
gasoline
consumpIon
at
$2.43/gallon
retails
price
average.
ProducIon
Technology
favors
Natural
Gas
over
Liquids
4. 4
February
2016
Our
Business
Process
Novello GTL
We
have:
MulIple
sites
pre-‐
idenIfied,
Plant
engineering
(non-‐
site
specific),
technology
license
rights.
We
obtain
with
customer/partner/
investor
funding:
Permits,
EPC
contract,
CommodiIes
supply
and
sale
agreements,
site-‐
specific
engineering
ConstrucIon
Start
&
OperaIons:
We
can
operate
under
opIon,
or
exit
via
sale
of
project
package
Pre-selected sites
save months and
years in time for
permitting and
negotiating logistical
needs
First USA MTG plant
successfully permitted by
this team. Multiple EPCs
capable and willing to build
with lump sum turn key
Flexible structures
for ownership,
operations, and
sale based on
stakeholder needs
5. 5
February
2016
Novello GTL Proven
Technology
• Chemistry
process
proven
for
decades.
Now
rapidly
commercializing
Nat
Gas
è
Syngas
è
Methanol
è
Gasoline
• Technology
is
NOT
Fischer-‐Tropsch
(F-‐T)
based.
Concentrated
gasoline
output
instead
of
broad
range
of
liquids
improves
profitability
• GTL
plants
have
historically
required
billions
of
dollars
of
capex,
but
Novello’s
design
is
highly
profitable
with
~$200mm
of
project
cost
(well
under
$100,000
per
bpd
capacity
for
capex)
• Gasoline
produced
meets
all
ASTM
specs:
used
in
the
USA
&
50
other
countries
No
Need
to
Take
Chances
When
Proven
Technologies
Exist
6. 6
February
2016
Novello GTL MTG
Technology
Two
Steps
to
Gasoline
from
Natural
Gas
*
ExxonMobil
operated
an
MTG
plant
in
New
Zealand
7
Imes
the
size
we
are
proposing
from
1985-‐1997
Step
1:
Standard
Methanol
Plant
Nat
Gas
è
Methanol
Step
2:
MTG
Conversion
Methanol
è
Gasoline
Commercial
Since:
1940s:
Worldwide
starIng
from
1970s:
First
large
plant
coal
and
natural
gas
and
now
biomass
built
and
ran
well
Common
Uses:
Industrial
Chemical
ProducIon
SubsItute
for
expensive
crude
oil
Examples:
Hundred+
plants
worldwide
*Exxon-‐Mobil
New
Zealand
Qinghua
1&2
Inner
Mongolia
Xinjiang
Zhongji
China
Xinjian
Xinye
China
Huifeng
Hebei
Kanglida
US
DOE
USA
(Chicago)
Jincheng
Anthracite
Mining
Group
(JAMG)
Turkmenistan
(6x
NGTL)
under
construcWon
Several
Under
ConstrucWon
in
China
Several
Under
PermiXng
in
USA
Methanol
Production is
majority of
project cost
7. 7
February
2016
Novello GTL GATOR:
Our
Unique
Design
Autothermal
Reactor
Gasoline
(80%+)
OpImized
for
USA
1. Common
Industrial
Process
:
Autothermal
Reactors
and
Steam
Reformers
are
popular
for
smaller
industrial
plants
2. OpImized
for
the
USA
market
:
Permijng,
environmental,
product
specificaIons,
modular
construcIon,
and
MLP
eligible
3. Concentrated
Output
:
With
only
two
products
(gasoline
&
LPG),
business
simplicity
improves
profitability
and
lowers
execuIon
risk
Gasoline
AutoThermal
OpImized
Reactor
8. 8
February
2016
• GATOR
can
be
operaIonal
in
less
than
27
months
• AcIve
markets
for
output:
80%
output
is
87+
octane
gasoline,
20%
LPG
with
no
sulfur
or
benzene,
fully
compliant
with
EPA
2017
Tier
3
Sulfur
gasoline
requirement
• Long-‐term
input
and
off-‐take
contracts
available
to
lock
in
today’s
profitability
and
minimize
market
risks
• “Minor”
source
permijng
due
to
high
energy
efficiency
and
small
environmental
footprint
GATOR
-‐
Advantages
Novello GTL
Built
for
speed
to
market,
to
minimize
risk
and
reduce
costs
Can be Modularized – Built Mostly
Indoors for better schedule & cost
control
9. 9
February
2016
Novello GTL GATOR
Requirements
Land
20
Acres
(~8
Hectares)
:
4
acres
used
for
process
area
and
tankage.
Other
buffer.
Nat
Gas
Source
Pipeline
or
field
gathering
lines
supplying
20,000
Dekatherms/day
(20
Billion
BTUs)
Nat
Gas
Quality
950+
BTU
per
Cu
Ft
containing
low
sulfur
Transport
of
Gasoline
&
LPG
Roads
for
14
truck
runs
per
day
or
barge,
rail,
pipeline
Electricity
<
11
MW
with
ASU.
<2MW
without
ASU
Environmental
Low
water
consumpIon
at
<
150
gpm,
depending
on
final
site
and
design.
Low
emissions
and
“minor”
permits
required.
Catalysts
reclaimed.
Low
water
discharge.
Employees
30
local,
full-‐Ime
for
operaIons
and
rouIne
maintenance.
Contract
crar
technicians
and
inspectors
for
turnarounds.
Small Capex, little water
usage, and low emissions
10. 10
February
2016
Novello GTL
Engineering
RendiWon
of
a
Permied
Project
Photo
of
a
Similar
OperaWng
Plant
Plant
RepresentaWve
Images
11. 11
February
2016
GATOR
–
Clean
Products
Novello GTL
The
GATOR
process
produces
just
three
clean
products
lowering
business
execuIon
risk:
1. 80%+
of
the
liquids
output
of
about
2300
bbl/d
is
midgrade,
87+
octane
gasoline.
This
product
meets
all
ASTM
D-‐4814
specificaIons.
It
has
no
sulfur,
low
benzene
and
low
olefins
which
makes
it
a
premium
blending
component
for
motor
fuel.
It
is
fully
compliant
with
new
EPA
2017
EPA
Tier
3
gasoline
requirements.
Product
has
been
tested
for
blending
with
10%
Ethanol.
2. Approx.
20%
of
the
output
is
clean,
LPGs.
Of
this,
roughly
80%
is
butane
and
20%
is
propane.
3. The
process
produces
medium
to
high
pressure
and
high
temperature
steam.
This
steam
can
be
used
to
generate
electrical
power
or
be
provided
via
pipeline
to
a
local
industrial
user.
The
steam
condensate
is
recycled
and
used
again.
12. 12
February
2016
Novello GTL Management
Paul
Hamilton,
President
–
Former
long-‐Ime
senior
execuIve
of
Shell
Oil.
Over
3
decades
of
technical
and
operaIonal
experIse
while
serving
as
Shell
VP
Engineering,
CEO
of
Global
SoluIons
USA,
Head
of
Refinery
Maintenance
USA,
and
many
other
posiIons.
Shell
has
created
and
operated
the
world’s
largest
natural
gas
to
liquids
producIon
faciliIes
in
the
world.
Environmental
Engineering
graduate
degree
and
combined
working
experience
allow
Novello
GTL
to
have
the
most
advanced,
economically
efficient,
and
environmentally
sound
processes
and
technologies.
Albert
Lin,
CEO
–
Serial
Entrepreneur
in
technology
and
financial
industries.
InnovaIons
in
USA
permijng,
financial
services,
and
technology
commercializaIon
fit
Novello’s
market
posiIon
well.
Public
and
private
company
governance
experience
through
various
company
board
of
directorships.
Rick
Imig,
COO–
Engineering,
refinery
operaIons,
and
IT
at
energy
companies
like
Shell
Oil.
Control
Systems
and
IT
experience
spanning
3
decades
puts
operaIng
a
Novello
facility
well
within
the
experience
profile.
Bill
Douglas,
Corporate
General
Counsel
–
Experience
in
the
energy
business
in
the
USA,
Mexico,
and
China
in
a
number
of
roles.
Served
as
the
President
of
EmberClear
Hong
Kong,
LTD.
Industry
experience
in
commodity
trading,
power
infrastructure,
complex
negoIaIons
and
contracts.
13. 13
February
2016
Novello GTL Contact
InformaWon
Albert
Lin
CEO
alin@novellogtl.com
(415)
409-‐9150
