Jeff McDaniel MSW to Biofuels and Bio-products Summit, 6th October 2014 Case study: Velocys partnership with Waste Management, Ventech Engineers LLC and NRG Energy
Velocys The company at the forefront of smaller scale GTL and BTL Leader in smaller scale gas-to-liquids technology 15 years and >$300 million invested in technology development Exhaustive global patent protection (>900 patents world-wide) Commercial roll-out underway Solena GreenSky London GTL JV Red Rock Biofuels Well capitalised with strong resources Commercial center in Houston, Texas; technical centers near Columbus, Ohio and Oxford, UK Permanent pilot plant in operation 2
The Fischer-Tropsch (FT) process For biomass-to-liquids (BTL) and gas-to-liquids (GTL) Gasification Biomass, waste Syngas carbon monoxide + hydrogen Fischer Tropsch Hydroprocessing Syncrude Synthetic crude oil Clean synthetic fuels: diesel, naphtha, jet fuel etc. Reforming Natural gas, biogas 3
Velocys Fischer-Tropsch fuels Choose from a range of high value products Drop in replacement for petroleum derived fuels, lubricants and other products Zero (or near zero) sulfur content Can be used as a blend stock for ultra-low sulfur fuels High cetane Meets military specification for aviation fuel FT diesel powered every 24 hour Le Mans winner since 2006 Lower emissions Lower SOx, NOx and particulates compared to petroleum fuels Quieter engine operation 4
Velocys Fischer-Tropsch specialty products Choose from a range of high value products C5 ~20% FT naphtha Syngas Co catalyzed FT Syncrude ~80% FT wax Highest quality and reproducibility Gasoline blendstock Transportation fuels, tar diluents Mixed solvent Coatings, adhesives Pure solvent Pharma, electronics, personal care Kerosene Aero fuels, surfactants Diesel Transportation fuels Lubricant basestock Group III+ engine oils Medium wax Candles, construction, tires Hard wax Adhesives, polymers, personal care sulfur, amine and aromatic free Excellent eco-tox profile products Performance advantages in high end product formulations Added value specialty products Gaussian carbon distribution Approx. 95% N, 5% ISO paraffin C100 5
The historical face of Fischer-Tropsch Mega-scale GTL projects Conventional Fischer-Tropsch reactor 6
Think Smaller TM 7
Think Smaller Plant scaled to match MSW collection logistics Conventional FT reactor Velocys commercial FT reactor Nothing wasted Better options Smaller scale facilities makes the most of the resources available Smaller, low cost plants need less gas or waste to be profitable 8
Smaller scale Improves the economics Our design leverages standardization, unlocking opportunities that were previously uneconomic Our design is specific for smaller scale plants, not just a scaled down large plant Reactor manufacture Our components are standardized, reducing costs Our strategic partnerships allow us to deliver at volume 9
Smaller scale Works anywhere Our plants are modular, so they are easier to ship and easier to install Velocys reactors are significantly smaller and lighter than conventional technology 70% of a plant can be factory-built before installation Modular components fit in standard containers for ease of shipping 1,400 bpd FT process unit designed by Ventech Engineers 90 ft L x 46 ft H x ~40 ft W Building is fast, we ve reduced the risk of delays, and plants can even be integrated with existing facilities 10
Smaller scale Works for anyone Velocys unlocks more business by working flexibly allowing companies to capitalize on more opportunities Smaller projects means more opportunities, accessible to more companies Ashtabula GTL We have strong partnerships with key players throughout the value chain Velocys can support all aspects of project development and execution 11
Commercial roll-out 12
JV with Waste Management, NRG Energy and Ventech Monetising renewable gas with natural gas through GTL WM (Fortune 500) North America s leading provider of comprehensive waste management services Role: renewable gas and certain locations NRG (Fortune 500) Owns largest independent power generation portfolio in US Role: project development and management Ventech Global leader in design and construction of modular refineries Role: engineering, fabrication, EPC 13
First JV project Go-ahead received Adjacent to WM East Oak landfill in Oklahoma City, USA Site of GTL plant Existing pilot plant and lab Landfill Final Investment Decision made to proceed (July 2014): Upfront engineering complete; key permits received; all major contracts signed Construction begun; ground-breaking by year end; mechanical completion end of 2015; full operation Q1-Q2 2016 Will provide first Velocys commercial reference plant 14
Pursuing the development of multiple plants GTLGTL JV LLC First First JV LLC siteplant at East Oak landfill site Development activities for additional sites will begin in the near future 15
BTL field demonstration - Güssing accomplishments FT technology demonstrated in Güssing, Austria Demonstration conducted 2010-2011 on gasified wood Demonstrated that the high performance FT helps overcome some challenges of BTL High conversion of expensive syngas Robust to gasifier upsets 193 syngas interrupts, 32 upsets and 36 shutdowns Steady performance Excellent temperature control Robust to changes in H2/CO ratio 16
GreenSky London Renewable jet fuel in London Velocys selected by Solena Fuels as FT supplier for commercial 2,500 bpd wastebiomass-to-liquids plant GreenSky London plant in partnership with British Airways Competitive selection process after technology evaluation advised by Fluor BA to provide off-take for jet fuel Pre-Front End Engineering completed Site selection announced April 2014 Site of former Coryton oil refinery in Thurrock, Essex, UK Picture courtesy of British Airways 17
Red Rock Biofuels US DoD sponsored BTL Velocys selected for 1,100 bpd biomass-to-liquids (BTL) plant Located in Oregon, USA Using forestry waste feedstock Supported by US Department of Defense and US Department of Energy Received $4.1m phase 1 grant for engineering in July 2013 FEED study complete Received a $70m construction grant in September 2014 Targeting final investment decision H1 2015 Southwest Airlines to offtake 3 million gal/yr of aviation fuel from the plant 18
Pilot plant and training facility Supporting sales and delivery Integrated GTL pilot plant at the Velocys Ohio, USA site Designed to provide Performance data to support differing client designs Product for client studies Permanent training facility for plant operators Platform for Developing our own field support staff Demonstrating future product generations Add pilot plant photo Pilot plant 19
Velocys pilot plant 1,500+ hours of successful operations at client conditions 20
Supply chain Ready for commercial deployment Commercial FT reactor manufactured Optimized final design for manufacture at volume Catalyst service partner Mourik trained and certified Catalyst loaded in May 2013 Declared as fit for commercial application Commercial reactor Reactor approved as fit for deployment by independent third party Manufacturing ramping up for mass production Catalyst loading 21
Summary Smaller scale GTL & BTL using FT is now a reality Fischer-Tropsch process now economic at smaller scales Converts low value input into high value liquid fuels & specialties Velocys technology is ideally suited to BTL applications as well as GTL Can be built economically at the appropriate scale Meets the technical demands Velocys technology field demonstrated Selected for four commercial projects Construction of first commercial GTL plant that will use a combination of biogas and natural gas has begun Supply chain ready for commercial deployment 22
Thank you Jeff McDaniel Commercial Director jeff.mcdaniel@velocys.com Plain City, Ohio office +1 614 733 3300 Houston office +1 713 275 5840 www.velocys.com 23
Think Smaller
Appendix Technology
High performance reactor architecture Microchannels intensify chemical processes Shell-and-tube Microchannel ~ 25-150 mm Enhanced mass and heat transfer ~ 0.110 mm Conventional FT reactor Velocys FT reactor 26
Super-active FT catalyst Velocys catalyst is 10x more active than conventional Catalyst Productivity (kg/m3/hr) 1600 1400 1200 1000 800 600 400 200 0 Fixed Bed (Shell) Slurry Bed (Sasol) Velocys 27
Exceptional FT catalyst stability Operated for nearly 2 years without regeneration CO conversion Temperature CH4 selectivity 28
High productivity (single stage with recycle) >90% overall conversion with minimal recycle 100% 280 Equal to 91-92% overall conversion CO conversion Equal to 94.5% overall conversion 270 80% 260 70% 250 Regeneration 60% Loss of cooling system - high t. 50% 40% 240 230 220 Temperature 30% Temperature, oc % Conversion, % Selectivity 90% 210 20% 200 Methane selectivity 10% 190 0% 180 0 50 100 150 200 Time on Stream (days) 250 300 350 29
Repeatable FT catalyst regeneration High stability over multiple regenerations (12 shown) 30
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