GoodFuels the sustainable fuel company. Commercializing Marine Biofuels

Transcription

1 GoodFuels the sustainable fuel company Commercializing Marine Biofuels Isabel Welten, April 10 th 2018

2 Advanced biofuels applications Advanced, sustainable fuels are the best option for energy-intensive transport sectors like aviation, shipping, heavy road and rail transport. Aviation Shipping Heavy road & Rail NGO's support the fact that for these sectors, sustainable biofuels are the best option for reducing the carbon footprint significantly.

3 GoodFuels: core competences GoodFuels is the linking pin between a variety of fuel suppliers and end users in the maritime, road and rail sectors Upstream Downstream Plant 1 Plant 2 GoodFuels provides tailor made solutions for producers and clients through: 1. Product development 2. Offtake 3. Commercialization

4 All fuels are 100% sustainable Thanks to our independent sustainability board, and our ISCC & RSB certification, we offer complete transparency and protection for our clients reputation. Independent Sustainability Board All our fuels are under strict supervision of our independent sustainability board. Certification ISCC & RSB are globally recognized certification standards to warrant the origin and sustainability of the feedstock. Sustainability principles Ms Barbara Bramble Prof. Martin Junginger Prof. Patricia Osseweijer Waste and residue based No competition with food No direct or indirect land use change (ILUC) No deforestation or biodiversity loss Our NGO partners No higher quality application possible Minimum 70% CO 2 reduction No negative social or legal impacts

5 Global regulation by the IMO: GHG emissions Current environmental legislation for the maritime industry is focused on local emissions SOx (and PM): Global limit: Currently: 3.5% As of 2020: 0.5% Emission Control Areas (ECA): limited to 0.1% NOx: Global limit: Tier I (built before 2011) and Tier II (newly built as of 2011) Emission Control Areas (ECA): Tier III The introduction of SECAs has led to a change in the marine fuel mix, away from heavy fuel oil.

6 Global regulation by the IMO: CO 2 emissions Focus shift to include GHG is urgently needed European level: EU MRV (monitoring, reporting, validating) Obliges all ships above 5000 gross tonnage to report yearly data on CO 2 -emissions as of International level: efficiency measures EEDI: Energy Efficiency Design Index Standards to all newly-built vessels from 2013 onwards. SEEMP: Ship Energy Efficiency Management Plan Monitoring a ship or fleet efficiency through tools such as the Energy Efficiency Operational Indicator (EEOI). Efficiency measures are insufficient to reduce carbon emissions. International level: CO 2 -emission reduction targets Growing consensus that shipping has to own it s fair share of emission reduction IMO will finalize its GHG strategy in 2023 Shipping will be included in EU-ETS if no strategy is completed by 2023

7 European GHG targets and low-carbon fuel requirement To meet EU targets, Europe will need 60 Mtonne of sustainable marine fuel in 2050 CO 2 emissions (Mt CO 2 /yr) Industry Growth 30% efficiency improvement Emission gap EU Target Fuel consumption (Mt/yr) Sustainable Fuel Fossil Fuel Inputs Base case scenario: Emission factors fossil fuel mix developing according to IMO low-lng scenario Biofuels combustion emissions: 0 gco 2 /MJ, (Source: Kyoto protocol) European emissions share: 19% > 13% 2050 (Source EU/IMO projection) EU target: 50% GHG reduction vs 2005 levels (Source: The Commission's 2011 White Paper on transport)

8 The role of biofuels in reducing GHG and CO 2 -emissions Biofuels are extremely low in SOx and CO 2 -emissions High SOx emissions SOx 3.5% (non-eca 2015) HFO MDO Low CO 2 emissions SOx 0.5% (non-eca 2020) SOx 0.1% (ECA 2015) MGO High CO 2 emissions Bio fuels SOx 0% Low SOx emissions LNG

9 Numerous options for GHG reduction exist, but few are significant Vessel size Speed optimization

10 Zero-emission options Biofuel is the most cost efficient option for zero-emission vessels in 2030 Relative profitability impact compared to: TEU container vessel running on HFO + scrubber Extra capital machinery Extra fuel costs Extra capital energy storage Capacity lost Source: Lloyd s Register & UMAS Zero Emission vessels 2030: How do we get there?

11 Renewable fuels in shipping The marine propulsion systems and marine fuels of the future are various. Our current focus is on drop-in solutions Petroleum-derived conventional fuels Fossil fuel alternatives Renewable fuel alternatives Distillates (MGO) Residuals (HFO) Drop-in solutions Bio-MGO Bio-HFO LNG Bio-LNG CNG Bio-CNG Alternative propulsion systems LPG Methanol Electricity Hydrogen Bio-LPG Bio-/Renewable Methanol Renewable Electricity Renewable Hydrogen

12 Future outlook To make the marine biofuel a success story, we need the following actors to step up Government Shipping Key actions Awareness & dedication Willingness to invest Offtake contracts Key actions National Incentives equal to road fuels Global GHG targets Carbon pricing mechanism Biobased Key actions Develop marine fuel products Scale production Develop quality standards

13 Let s start today: MEPC 72 The climate DEAL of the year, April 9-13 in London

14 Contact Isabel Welten Marine Business Development +31 (0) isabel@goodfuels.com

15 Market perspective on marine biofuels Some important conclusions from the study concerning low-carbon non-fossil fuels. Danish Shipowners Association (2016): Most of the pathways will require a substitute to fossil fuel to keep the share of global emissions from shipping constant over time (±2,5%), because energy efficiency improvements alone will not be sufficient in the medium to longer term. International Renewable Energy Agency (2015): Biofuels are currently the most relevant alternative for replacement or blending with fossil fuels in the transport sector. ( ) Although biofuel s share in the shipping sector s energy mix is small and will most likely remain so in the short- to medium-term, over the long run they will have a substantial role to play. Technology learning for the production ofadvanced orsecondandthirdgeneration biofuels is increasing, making these fuels the most viable renewable energy option with the highest penetration rate for the shipping sector in the long term. Bjørn Haugland, DNV GL (2017): A recent study on low-carbon pathways for shipping carried out by DNV GL shows that if we are to significantly reduce emissions from shipping as an industry without using nuclear fuel, the only real option we have today is sustainable biofuels, probably mainly in the form of biodiesel, as this is wat today s prime movers utilize. International Energy Agency (2017): Efficiency technologies available today could roughly halve the average fuel consumption per vehicle kilometer of new ships (IEA estimate based on Smith et al., 2016). This will need to be complemented by the use of advanced biofuels.

16 Exclusively sustainable feedstocks GoodFuels only uses the most sustainable feedstock and is a leading supplier of sustainable fuels made from forest residues and waste oils. GoodFuels does not use palm oil or palm derivatives. Not part of our portfolio x Palm-oil Palm-derivatives Waste-oil Wood-based Sustainability PES Used Cooking Crude Tall Oil POME PFAD SBEO Oil (UCO) (CTO) List A, annex IX feedstock (Renewable Energy Directive) Supported by NGO s

17 Technology development Each feedstock requires specific conversion and upgrading, leading to many possible pathways. The marine market offers a lower entrance quality option. Feedstock Conversion Intermediate Upgrading Fuel Markets Current pathways Vegetable oils Esterification Biodiesel Future pathways UCO/ CTO Woody biomass Agriculture residues Lignin Municipal Solid Waste Sewage sludge Manure Corefining Hydrotreating FT Pyrolysis HTL Bio-Crude Bio-Gas Full Hydrotreating Partial Hydrotreating Upgrade Bio-MGO Bio-MGO Bio-HFO Bio-LNG Fermentation Gasification Bio- Methanol Aviation Road Marine Fuel Quality Requirement

18 Marine biofuels market Strong growth is projected for the next decades as sustainability becomes more important in the shipping sector Marine biofuel market drivers 1 Emission regulations SOx NOx CO 2 2 Local Incentives Ports Governments 3 Market incentives Public tenders Global brands Cargo owners Alternative fuel options SOx reduction GHG reduction NOx reduction Market projections (Mtonne/yr) Total marine fuel volume 2012: Mtonne Projected to increase steadily Source: IEA report: Alternative Fuels for Marine Applications (2013) Engine modification needed Biofuel 100% ~80% 10% NO YES LSMGO 95% 0% 0% NO YES Scrubber 95% -5% 10% YES YES LNG 100% 0% 90% YES NO Infrastructure in place Biofuels LNG

19 Benchmark of sustainable marine biofuels Biofuels offer significant benefits compared to the alternatives in the market today. Emission reductions Needs Future CO 2 SO x NO x Engine modification Infra developments Uncertainties LSMGO 0% 95% 0% NO NO Refinery capacity MGO + scrubber -5% 95% 10% YES NO Legislation on CO 2 LNG 0% 100% 90% YES YES Legislation on CO 2 GoodFuels 75-90% 100% 10% NO NO Availability See next slide

20 GoodFuels Marine GoodFuels Marine is global market leader for marine biofuels. Segment Purchase drivers Clients Dredging & offshore wind Green public procurement Government Port authorities & harbor services Pax transport National GHG targets and energy security Exemplary role model, air quality, regulation, inherent drivers Green public procurement (ferries), passenger demands & port access (cruise) Inland waterways Air quality regulation, CO 2 ambitions of cargo owners Ocean freight CO 2 ambitions of cargo owners Boating & yachting Port s green reputation, air quality regulation & intrinsic motivation of boat owners

21 The GoodShipping Program A quick, transparent and convenient way to reduce carbon footprint coming from ocean freight. What do we offer? Climate-neutral sea freight at minimum premium Regardless of your operation, geography or size Using advanced drop-in biofuels (no compensation programs) Truly sustainable by ensuring the most stringent sustainability criteria Hassle-free operations. We take care of everything. Supported by a waterproof compliance program