Uusiutuvat polttoaineet jäte- ja tähdevirroista Teknologiajohtaja Lars Peter Lindfors, Neste Oil
Neste Oil in brief A refining and marketing company focused on premium-quality traffic fuels Refining capacity: 15 million t/a of petroleum products and 2 million t/a of renewable diesel Net sales: 17.5 billion (2013) Operations in 15 countries; employs approx. 5,000 people Listed on the Helsinki Stock Exchange Largest owner: Finnish State (50.1%) 2
Being innovative drives our leadership position 1,000 professionals in R&D and engineering Co-operation with large number of leading universities, institutes and companies Creating unique technological innovations Expanding raw material base Several new products since 2008 3
Cleaner products along the way 1980 1990 2000 2010 City-gasoline: lead-free, with MTBE as an important component Neste Alfa lubricants Futura brand: gasoline that keeps engines clean Lead-free Futura 95E, replacing 92-octane gasoline Futura Citydiesel: end of sales for the low-aromatic and nearly sulfur-free gasoline City Futura, with an oxygen-containing MTBE component synthetic PAO New Futura: less sulfur than ever before VHVI base oils Sulfur-free gasolines and diesel fuels New Futura gasoline market launch NExBTL diesel from renewable materials Neste Green diesel Neste Green 100 diesel NExBTL renewable aviation fuel Neste Pro Diesel 4
So far we have consumed over 1,000 billion barrels of oil, but there is plenty of it left 5
Road transportation dominating total oil demand also in coming decades fuel economy improving significantly Oil demand in road transportation Mbpd 70 OECD 60 50 40 Non-OECD OECD Non-OECD Biofuels Other* Heavy duty fleets, aviation and city traffic have limited ways to increase renewable share advanced biofuels, e.g. NEXBTL, are a viable option 30 20 Hybrid cars increase rapidly after 2020 (representing ~10 % of fleet in 2030) 10 0 2010 Increased number of vehicles Reduced average usage Improved vehicle efficiency Increased use of alternatives 2030 Electric / natural gas vehicles expected to remain marginal due to cost and functionality considerations * Including GTL, CTL, LNG and electricity Source: ExxonMobil, The Outlook for Energy 2012; BP, Energy Outlook 2012 6
GHG emissions from well-to-wheel strongly dependent on feedstock and technology Well-to-wheel gco 2eq /km 0 50 100 150 gasoline E10 E85 Diesel B7 dieselhybrid renewable diesel (NEXBTL) electric car (EU-average electricity) Source: JEC, 2014
The drivers for biofuels To combat climate change and reduce emissions To reduce society s dependency on crude oil and imports To safeguard energy security 8
The growth estimate Bio/renewable diesel demand, million tons 50 40 30 20 10 0 +8% p.a 26 27 4 4 5 5 39 5 6 8 5 5 20 12 13 2014 2015 2020 Asia-Pacific Latin America North America Europe Source: Neste Oil estimates 9
Neste Oil The leading producer of renewable diesel in the world Since 2007, the renewable business has grown from 0 in earnings and revenue to earnings of 273 m and revenues of 2,5 bn in 2013 Customers are choosing NEXBTL due to its superior quality and flexibility using it as drop in fuel Strong market position in several European countries and in North America 4.8 million tons avoided GHG emissions Fuelling 2.6 million cars with renewable fuel 10
NEXBTL renewable fuels fully compatible with fossil diesel Biodiesel (FAME / RME) Fossil diesel Renewable diesel (HVO) e.g. NEXBTL Fischer-Tropsch (BTL) Raw material Vegetable oils & animal fats (mainly rapeseed oil) Crude oil (mineral oil) Flexible mix of raw materials (vegetable oils & waste fats) Biomass Technology Esterification Traditional refining Hydrotreating Gasification & Fischer-Tropsch End product Ester-based, conventional biodiesel Hydrocarbon (gasoline, jet fuel, diesel) Bio-based hydrocarbon (renewable diesel, jet fuel, bionaphta, biopropane) Bio-based hydrocarbon (renewable gasoline, jet fuel, diesel) Chemical composition O II H 3 C-O-C-R C n H 2n+2 + aromatics C n H 2n+2 C n H 2n+2 FAME = Fatty Acid Methyl Ester, conventional biodiesel HVO = Hydrotreated Vegetable Oil, advanced biofuel i.e. renewable fuel RME = Rapeseed Methyl Ester, conventional biodiesel BTL = Biomass to Liquid 11
Range of renewable raw materials used commercially is growing aste animal fat from the food processing industry Waste fat from the fish processing industry Vegetable oil residues (stearin, PFAD and spent bleaching oil) Technical corn oil Used cooking oil Tall oil pitch Crude palm oil Camelina oil Jatropha oil Soybean oil Rapeseed oil Next generation feedstock to include waste streams from forestry and agricultural activities, as well as algae oil 12
More than half of the renewable feedstock used by Neste Oil is waste/residue based Neste Oil renewable feedstock split, 2013 H2/2014 waste/residue based feedstock: 66 % 52 % 48 % Waste/residue Vegetable oils 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0 2007 2008 2009 2010 2011 2012 2013 13
Development/committment is required to increase the usage of waste/residue streams Several challenges Availability, small local volumes, varying quality level, lack of logistic solutions Technology Flexible production technologies Pretreatment solutions Global procurement network Logistics Qualit assurance and segregation Sustainability Partnerships Commercial concepts Co-operation 14
Waste/residue streams are crucial for next generation applications Global energy consumption / Transport sector: 95000 PJ/a Availability of some waste/residue based feedstock (PJ/a) The accessability of the waste/residue feedstock in the table corresponds to 1/3 of global energy consumption in the transportation sector 15
Finnish forests are not able to supply the transportation fuel needs in Finland at present Oil product demand in Finland (2014) vs. theoretical maximum of wood based fuel availability (Mt/a) Fuel from wood Diesel/Gasoil Gasoline Jet Max. wood availability 0,7 1,5 2,0 4,3 ~ 35 Mt dry wood grows in Finland annually Currently 70% of Finland s annual wood growth is already in use If all the rest wood (30%) would be used for fuel, the amount would be ~ 10 Mt With 20% mass conversion, the corresponding theoretical maximum fuel volume is ~ 2 Mt/a, i.e. 30% of the demand Sources: Metla, Wood Mackenzie Conversion from cubic meters to dry t: 0,35
Technologies from wood to biofuels is still on the development stage Feedstock Fractionation & hydrolysis Sugar Fermentation Microbial oil Fermentation Hydrotreatment Product Renewable diesel Cellulosic ethanol/ butanol Woody biomass Pyrolysis (fast/ catalytic/hydrous) Biocrude Upgrading Biofuels Fischer-Tropsch BtL biofuels Gasification Syngas Catalytic conversion Fermentation Methanol, other alcohols Dehydration Ethanol Gasoline components BioDME Fermentation (Wood Sugar Fuel) St1 is planning a demo plant to Kajaani No wood based commercial plants running or under construction Pyrolysis (Wood Biocrude) KiOR has build the first pyrolytic plant with upgrading, they ran out of money and cannot restart There are biocrude facilities without upgrading, eg. Fortum Gasification (Wood Syngas Fuel) Projects of UPM and Vapo are cancelled or on hold INEOS Bio (fermentation to ethanol) has opened a demo plant in U.S. No other gasification based wood-to-biofuels commercial plants running or under construction 17
Global advanced biofuel capacities today Mt/a Renewable diesel (e.g. NEXBTL) 0 0,5 1 1,5 2 2,5 3 Cellulosic ethanol Biomethanol Neste Oil Others Catalytic pyrolysis Syngas fermentation Woody feedstock Advanced biofuels exclude traditional bioethanol and biodiesel Capacities include commercial and commercial reference plants 18
Global biofuels investment have a decreasing trend Global investment in biofuels by region $bn Most of the biofuel investments have taken place in the Americas where light-duty fleets use mainly gasoline instead of diesel
Summary Alternative energy solutions for traffic are emerging slowly Continuing dominance for ICE (internal combustion engine) based technologies is forecasted, implying very extensive use of renewable biofuels in traffic Long term novel feedstock solutions are far away A broad range of globally available feedstock is needed New conversion technologies have challenges to meet commercialization Existing second generation technologies, such as NEXBTL, are proven enablers for fulfilling the biomandate EU Biofuels policy should Keep ambitious biofuel targets (volume / quality) and maintain technology neutrality Not allow protectionism to gain ground Accept that feedstock are global just like oil is Neste Oil provides a strategic agenda striving for renewal -> Significant volumes of NExBTL renewable diesel and biojet -> Renewable fuel for lowering GHG and urban air emissions -> Continuously broadened flexible mix of sustainable feedstock and technologies 20
Increasing use of biofuels and waste/residue based feedstock an opportunity for Finland Knowhow Globally active companies in relevant fields Strong research and educational position in crucial areas Development of competitive solutions for reducing GHG emissions In transportation, energy production and chemical sectors Feedstock sources Opportunity to increase the amount of domestic rawmaterials 21
Kiitos. lars-peter.lindfors@nesteoil.com