Velocys1

Velocys Product/ProcessVelocys Product/Process
DevelopmentDevelopment
John GlenningJohn Glenning
July 23, 2009July 23, 2009

Velocys Micro-Channel ProcessVelocys Micro-Channel Process
Fischer-Tropsch Project: Micro-channel Reactors
Reactor Block Metal
1. 304L Stainless Steel
• Low Metal Cost
• Poor Thermal Conductivity (16.2 W/M°K)
2. Copper
• High Metal Cost
• Great Thermal Conductivity (401 W/M°K)
3. Aluminum
• High Metal Cost
• Great Thermal Conductivity (250 W/M°K)
• Low melting point
Thermal Coefficient of Expansion was within 10% to 15% of each other

Manufacturing Costs
• Sale Price based on Market Analysis: $225K to $250K

Manufacturing Costs
• Manufacturing cost: $270K/Reactor
Measure 20% of the shims & 3% of the features/shim

Manufacturing Costs
• Measure 100% of the shims & 3% of the features/shim
Cost: $340K/Reactor

Manufacturing Costs
Cost: $340K/Reactor
Cost: $1,700K/Reactor

Manufacturing Costs
Cost: $340K/Reactor
Cost: $1,700K/Reactor
• Shipping Costs: $95K/Reactor

Plan of Record Manufacturing Process
• Photochemical Machining (PCM) of patterns into the Shims
• Plating Shims with brazing material
• Clean Shims
• Stack Shims
• Braze Reactor

• Clean Shims
• Stack Shims
• Braze Reactor
Photochemical Machining industry is consolidating in the US
• Projecting increase manufacturing costs

• Clean Shims
• Stack Shims
• Braze Reactor
Photochemical Machining industry is consolidating in the US
• Projecting increase manufacturing costs
Photochemical Machining in Asia
• Reduced PCM Cost
• Offset by Trans-Pacific Shipping Costs

Manufacturing Capability
• 5 reactors builds using 3 PCM companies

• If design specification became manufacturing specification: 0% yield

• Manufacturing process was “Not Capable”
• Over 80% of specified features had Cp/Cpk significantly less than 1.00
on a consistent basis
• Processing variability was well within the norm for the PCM industry
• To eliminate the need for mass inspect, all the Cp/Cpk had to be
greater than 2.00

greater than 2.00
• Initial product testing showed Reactor productivity 60% to 80% higher than
anticipated based on modeling

greater than 2.00
• Reviewed results and proposed specification relief

greater than 2.00
• Reviewed results and proposed specification relief
• With specification relief, the manufacturing process was still “Not Capable”
and still had 0% yield

Product Design Review:
• Identify potential alternative manufacturing processes

• Reduce manufacturing cost

• Improve manufacturing capability

• Improve manufacturing capability
• Improve reactor productivity

Reactor Productivity
• Limiting Factor for Reactor Productivity: Heat generated in the
catalyst bed

catalyst bed
• Limits Syn Gas injection rate

catalyst bed
• Limiting Factor for removing heat: Thermal Conductivity of the
stainless steel

catalyst bed
stainless steel
• Current design of the reactor is cross-current cooling

catalyst bed
stainless steel
• Created a temperature gradient across the diagonal of the reactor

catalyst bed
stainless steel
• Created a temperature gradient across the diagonal of the reactor
• Limited productivity and selectivity from the reactor

Reactor Redesign for Manufacturability
• Counter-Current Cooling: Design minimizes temperature gradient in the catalyst
bed improving productivity and selectivity due to uniform temperature

• Improve reactor productivity and selectivity due to better heat transfer

• Coolant channel flow with no eddy currents

• Manufacturing Process: Electro-Chemical Machine (ECM) reactor with
alternative design

• Manufacturing Process: Electro-Chemical Machine (ECM) reactor with
alternative design
• Eliminates:
• Plating Brazing material
• Cleaning
• Stacking
• Brazing

Electro-Chemical Machining (ECM)
• ECM is a method of removing metal by an electrochemical process

• ECM’s use is limited to electrically conductive materials

• ECM can cut small or odd-shaped angles, intricate contours or cavities in
extremely hard metals

• Current is passed between the tool (cathode) and the part (anode) through an
electrolyte material, which conducts current, removes the etched metal and heat

• Current is passed between the tool (cathode) and the part (anode) through an
electrolyte material, which conducts current, removes the etched metal and heat
• The pressurized electrolyte is injected into the area being etched

ECM Process Cost Reductions
• Metal Costs Reduction: $40K to $36K
• Shipping Costs Reduction: $95K to $15K
• Eliminate Plating, Clean, Stacking and Brazing: $100K cost
reduction
• Eliminate $184K in manufacturing costs

ECM Process Cost Reductions
• Metal Costs Reduction: $40 to $36K
• Shipping Costs Reduction: $95K to $15K
• Eliminate Plating, Clean, Stacking and Brazing: $100K cost
reduction
• Eliminate $184K in manufacturing costs
Eliminate metal-brazing interfaces (240/reactor)
• Eliminate fatigue failures to the CTE mismatch
• Operate at higher pressures
• Increase conversion rates
• Increase formation of long chain liquid hydrocarbons

ECM Manufacturing
• 5 ECM companies in the US

ECM Manufacturing
• ECM lines were built for the Raptor and Joint Strike Fighter
projects

ECM Manufacturing
projects
• Capacity utilization was between 5% and 20%, depending
on the ECM company

ECM Manufacturing
projects
• Capacity utilization was between 5% and 20%, depending
on the ECM company
• Worked with ECM companies to determine process
limitations and manufacturing variability

ECM Manufacturing Costs
• Tooling Costs
• Design & Build of initial tooling: $50K to $150K
• Back-up Tooling Build: $25K to $50K
• Prorated tooling costs/Reactor over 7 years: $45 to
$115

• Tooling Costs
$115
• ECM manufacturing time: 4 to 8 hours per reactor block

• Tooling Costs
$115
• ECM manufacturing time: 4 to 8 hours per reactor block
• ECM costs were not determined due to Velocys’ acquisition
by Oxford Catalyst

Productivity Improvement Opportunity
• Limiting Factor: Removing the heat from the catalyst bed

• Thermal conductivity of 304L Stainless Steel: 16.2 W/M°K

• Researched coating options to improve heat transfer

• Thermal conductivity of Diamond: 1800 W/M°K

• Consulting with CVD company in California

• 50 microns of diamond on the catalyst channel walls

• Significantly increase Syn gas injection rate while being able to
remove heat from the catalyst bed

• Increase liquid hydrocarbon productivity

• Increase liquid hydrocarbon productivity
• Cost and feasibility were not determined due to Velocys’ acquisition
by Oxford Catalyst

End of Fischer-Tropsch
Presentation

Velocys1

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