Viability of different bio jet fuel conversion technologies from a market point view. Maarten van Dijk - CEO SkyNRG IEA Bioenergy 2015

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1 Viability of different bio jet fuel conversion technologies from a market point view Maarten van Dijk - CEO SkyNRG IEA Bioenergy 2015

2 Outline Introduction SkyNRG Assessment

3 Company Founders Sustainability Board Copernicus Institute Utrecht University

4 SkyNRG s main focus is to supply aviation with sustainable jet fuel To do this we have two main pillars in the company Supply & Operations 1 2 Market development Operational Fuel sourcing Blending & certification Delivery & paperwork Regional supply chain development Feedstock Technology Downstream logistics Co-funding the premium Corporate program Airport commitments Incentivized systems Feedstock Ensure sustainability Enabling projects Discussion & Interaction Different stakeholder groups (governments, airlines, industry, NGOs) Conferences Workshops

5 Track record SkyNRG founded by three complementary JV partners SkyNRG Sustainability Board Copernicus Institute Utrecht University KLM Corporate BioFuel Programme SkyNRG first operator capable of supplying RSB certified jet fuel into wing New partnerships Holland BioPort Brisbane BioPort SkyNRG Nordic Karlstad BioPort Project Solaris SkyNRG supplied most commercial sustainable jet fuel flights up to date First Green Route Start weekly KLM SJF flights from JFK New York to Schiphol Amsterdam Nordic green flights Fly Green Fund launched

6 The market: we see a shift from single flights to supply chain initiatives Year Single (commercial) test flights NOT EXHAUSTIVE Series of commercial flights Supply chain initiatives

7 Outline Introduction SkyNRG Assessment

8 What is the aviation industry looking for in a new jet fuel? Able to use existing infrastructure Meeting the specs e.g. cloudpoint, density, boiling range No oxygen Technical/Quality Market/Commercial Availability/security of supply Sustainability Scalability Cost price Basically: it needs to be jet fuel ASTM 1655, DEF-STAN 9191, JIG3

9 On the technical/quality side there is a pretty well established process to approve new fuels, coordinated by ASTM Overview of the fuel approval process

10 But you need quite a lot of fuel to go through the process Overview of the fuel approval process

11 There are 7 pathways for alternative fuel in various stages of ASTM approval Technology Fischer-Tropsch (FT) Hydroprocessed Esters and Fatty Acids (HEFA) Direct Sugars to Hydrocarbons (DSHC) Feedstock Biomass, MSW* Oils and fats Sugars ASTM Alcohol to Jet (ATJ) Hydrotreated Renewable Diesel (HRD) Sugars, biomass, MSW Oils and fats Catalytic Hydrothermolysis (CH) Oils and fats 2016 Hydrotreated Depolymerized Cellulosic Jet (HDCJ) Biomass 2018

12 On the market/commercial side it s harder to make a decision. What should you be looking for? Solid technology platform Relevant patents Scalable Feedstock flexibility Sustainability Professional team Right stage of development Possibility to make jet fuel Capacity to go through ASTM Industry partnerships Owner/operator involved Supply & off take contracts secured Market for the product Link to policy Funds for demo plant in place Etc, etc.

13 Finding all components is very difficult, but in the end there s only 1 thing that matters: get the plant financed Solid technology platform Relevant patents Scalable Feedstock flexibility Sustainability Professional team Right stage of development Possibility to make jet fuel Capacity to go through ASTM Industry partnerships Owner/operator involved Supply & off take contracts secured Market for the product Link to policy Funds for demo plant in place Etc, etc. Create a financeable business case

14 Which pathways to pursue? Down selecting the options by techno-economic assessment of the case Assessment methodology Historical commodity feedstock price + Technology specific cost for conversion to biojet (CAPEX, OPEX, by-products) = Projected biojet price VS Indexed jet A1 prices

we can t predict the future, but we have an idea about the past Assessment methodology Historical commodity feedstock price + Technology specific cost for

15 we can t predict the future, but we have an idea about the past Assessment methodology Historical commodity feedstock price + Technology specific cost for conversion to biojet (CAPEX, OPEX, by-products) = Projected biojet price VS Indexed jet A1 prices This basically gives you the historic bio jet fuel prices

One of our main conclusions: it will be very hard to get to fossil jet parity when starting with a commodity indexed feedstock Historical bio jet fuel prices in $/ton 4.500 4.000 3.500 3.000 2.500 2.

16 One of our main conclusions: it will be very hard to get to fossil jet parity when starting with a commodity indexed feedstock Historical bio jet fuel prices in $/ton DSHC jet fuel (cane sugar) FT jet fuel (wood chips) AtJ jet fuel (ethanol) HEFA jet fuel (palm oil) Fossil jet fuel jul-13 jan-13 jul-12 jan-12 jul-11 jan-11 jul-10 jan-10 jul-09 jan-09 jul-08 jan-08 jul-07 jan-07 jul-06 jan-06 jul-05 jan-05 jul-04 jan-04 jul-03 jan-03 jul-02 jan-02 jul-01 jan-01 jul-00 jan-00 NOTE: Graphs made with publicly available information

17 So what can we do to increase scale of bio jet fuel production? We see 4 possibilities 1 Bridge the gap Structural policy (mandates, incentives); end-users 2 Get to fossil parity by starting from non-commoditised feedstock Locked in sources, with no link to trade markets 3 Find synergy with higher value end products (chemical/materials) Scale benefits combined with high market prices 4 Close the supply chain Make sure intermediate products with high(er) value don t find their way to market

18 What are we betting on? Technology Fischer-Tropsch (FT) Hydroprocessed Esters and Fatty Acids (HEFA) Direct Sugars to Hydrocarbons (DSHC) Feedstock Biomass, MSW* Oils and fats Sugars ASTM Alcohol to Jet (ATJ) Hydrotreated Renewable Diesel (HRD) Sugars, biomass, MSW Oils and fats Catalytic Hydrothermolysis (CH) Oils and fats 2016 Hydrotreated Depolymerized Cellulosic Jet (HDCJ) Biomass 2018

19 What are we betting on? Technology Fischer-Tropsch (FT) Hydroprocessed Esters and Fatty Acids (HEFA) Direct Sugars to Hydrocarbons (DSHC) Feedstock Biomass, MSW* Oils and fats Sugars ASTM Alcohol to Jet (ATJ) Hydrotreated Renewable Diesel (HRD) Sugars, biomass, MSW Oils and fats Catalytic Hydrothermolysis (CH) Oils and fats 2016 Hydrotreated Depolymerized Cellulosic Jet (HDCJ) Biomass 2018

20 What are we betting on? Technology Fischer-Tropsch (FT) Hydroprocessed Esters and Fatty Acids (HEFA) Direct Sugars to Hydrocarbons (DSHC) Feedstock Biomass, MSW* Oils and fats Sugars ASTM Alcohol to Jet (ATJ) Hydrotreated Renewable Diesel (HRD) Sugars, biomass, MSW Oils and fats Catalytic Hydrothermolysis (CH) Oils and fats 2016 Hydrotreated Depolymerized Cellulosic Jet (HDCJ) Biomass 2018

21 What are we betting on? Technology Fischer-Tropsch (FT) Hydroprocessed Esters and Fatty Acids (HEFA) Direct Sugars to Hydrocarbons (DSHC) Feedstock Biomass, MSW* Oils and fats Sugars ASTM Alcohol to Jet (ATJ) Hydrotreated Renewable Diesel (HRD) Sugars, biomass, MSW Oils and fats Catalytic Hydrothermolysis (CH) Oils and fats 2016 Hydrotreated Depolymerized Cellulosic Jet (HDCJ) Biomass 2018

22 Thank you More information:

Readiness of aviation biofuels. Misha Valk Head of Business Development SkyNRG

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