2014 Gas/Electric Partnership

Transcription

1 2014 Gas/Electric Partnership Strategies for Utilizing/Monetizing Wellhead Gas Brian Cody February 5

2 About us Leaders in smaller scale GTL Unique innovative technology solution for smaller scale GTL World-class pedigree 20 yrs of research and development University of Oxford: top global research centre; largest chemistry department in Western World Battelle: world s largest independent science and technology organisation Global leader World s largest and strongest microchannel IP portfolio (>800 patents) >$300 million invested, much by commercial partners Critical mass ~100 employees focused on FT; backed by a strong balance sheet First class partners offering a complete GTL solution 2

3 Many applications From low-value gas to high-value fungible products Shale gas: monetizing low prices in North America Stranded gas: estimated over 30% of world reserves are uneconomic to bring to market Associated gas: 5% of natural gas production is flared GTL allows valuable products to be created and shipped Ultra low-sulfur diesel (70 cetane) & jet Waxes, lubricants and solvents Not just gas: also biomass and coal 3

4 The gas-to-liquids (GTL) process Chemical conversion of gas to refined products Reforming Fischer-Tropsch (FT) Hydro-processing Natural Gas Syngas (carbon monoxide + hydrogen) Syncrude (synthetic crude oil) Clean synthetic fuels & chemicals (diesel, jet fuel, lubricants etc.) LNG / CNG = physical compression Product remains natural gas GTL = chemical conversion into refined products (petroleum equivalent) Smaller scale GTL: gas-based minirefinery 4

5 Velocys microchannel technology Compact, robust, efficient and economic Velocys FT reactor Principles of design and operation Particulate catalyst in small channels High catalyst volume fraction Syngas downflow, products exit bottom Cross-flow coolant water / steam generation Heat removal by steam generation Strengths High per pass conversion (75%+) Isothermal behavior thermally stable Extremely robust to upsets Strong economy of mass manufacturing Accommodates high activity catalysts Installed spares relatively cheap High on-stream factor Tail gas recycle only to achieve high conversion Extremely high volumetric productivity Ease of modularization 5

6 Microchannel scale up = numbering up Equivalent to conventional fixed bed reactors Gas flow Key dimensions do not change Laboratory reactor Channel dimensions same as commercial reactor Pilot reactor Full size repeating layer Demonstration reactor >1 full size repeating layer Commercial reactor Many full size repeating layers Micro-macro interface ensures consistent results in pilot and commercial installations PILOT COMMERCIAL LABORATORY DEMONSTRATION Number of channels increases, size does not 6

7 Super-active FT catalyst Velocys catalyst is 10x more active than conventional 1600 Catalyst Productivity (kg/m3/hr) Fixed Bed Slurry Bed Velocys (Shell) (Sasol) 7

8 Exceptional FT catalyst stability Operated for 2 years without regeneration CO conversion Current operation approaching 3 yrs Temperature CH 4 selectivity 8

9 High productivity (single stage with recycle) >90% overall conversion with minimal recycle 100% 280 % Conversion, % Selectivity 90% 80% 70% 60% 50% 40% 30% 20% CO conversion Loss of cooling system - high t. Regeneration Temperature Equal to 91-92% overall conversion Equal to 94.5% overall conversion Temperature, oc 10% Methane selectivity 190 0% Time on Stream (days) 9

10 Reactor design Optimized for serviceability Manways size and location designed with Mourik for optimum access for catalyst handling Bottom manways have elliptical heads to allow liquid phase product draining. Removable for catalyst change-out Diameter ~4.5 ft Length ~12 ft (15 ft for a 4-core) Reactor size optimized for weight / crane limits Weld locations optimized for mass manufacturing 10

11 Integrated modular GTL facility Site-specific client designs underway 11

12 Velocys enables winning economics Base case Costs & proceeds ($/barrel of liquid products) $150 $125 $100 $75 $50 $25 Premium from sale of diesel Oil (WTI) OPEX Depreciation Natural gas Key financial assumptions Facility producing 80% diesel & 20% naphtha Gas price = $4/mmbtu 9,500 scf gas per barrel Capital cost = $100k per bpd for 2,500 bpd stand-alone Gulf coast plant Operating cost = $15/bbl 20 year plant life $0 Costs of Velocys enabled GTL plant Proceeds from production of liquid fuels 12

13 Pilot plant and training facility Supporting sales and delivery Integrated GTL pilot plant at the Velocys Ohio, USA site Provides 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 13

14 Complete GTL solution Together with world-class partners Technology Resource holders Engineering Modular GTL Field services Fabrication Catalyst 14