An update on the SAJF demand pull from aviation

Transcription

1 An update on the SAJF demand pull from aviation UF IFAS Carinata Field Day Steve Csonka Executive Director, CAAFI Date: 15Mar 16 Place: NFREC, Quincy, FL UF IFAS 15Mar 16

2 CAAFI - Public/Private Partnership A reflection of the 23+B gpy U.S. jet fuel market pull An aviation industry coalition established to facilitate and promote the introduction of alternative aviation fuel Goal is development of non-petroleum, drop-in, jet fuel production with: Equivalent safety & performance Comparable cost Environmental improvement Security of energy supply for aviation Enables its diverse stakeholders to build relationships, share and collect data, identify resources, and direct research, development and deployment of alternative jet fuels 18 March

3 Aviation s Successes & Challenges Unprecedented Value! Safe, High-Speed, Efficient Transport Connectivity & Trade lifelines Full range of transport products Jobs, Development & GDP resulting in robust growth Commensurate Challenges Noise & Emissions (CO2 and LAQ) Costs: Development & Operating Overall sustainability Continued efficiency improvement

4 Aviation s commitment To decouple carbon growth from demand growth 1.5% annual fuel efficiency improvements CNG 2020 This commitment is currently being converted into pending regulation through an ICAO/CAEP basket of measures : CO2 Standards MBMs PM Standards Similar commitment from BizAv & DOD 18 March

5 Why Aviation cares about SAJF Sustainable Alternative Jet Fuel, a.k.a. biofuel, biojet Aviation commitments Decouple carbon growth No other viable options! Industry alignment on SAJF value proposition Net carbon relief! Supply surety, Price stability Energy security Lower criteria pollutants Improved energy mass density Minimal infrastructure impact Economic development Biofuels are key to achieving goals SAJF works! Challenges, yes but abundant 0ptions! Multiple feedstocks, conversion technologies, entrepreneurs 18 March

6 Approved SAJF approved production pathways Limited to paraffins to-date other molecules pending Gasification & FT (FT-SPK) Hydroprocessing F.O.G. (HEFA-SPK) Biochem sugars (HFS-SIP) FT-SPK/A ATJ-SPK (in balloting & review) 50% max blend 50% max blend 10% max blend 50% max blend 30% max blend 18 March

7 Pipeline In- Process Task Forces Pipeline of pathways Focus on delivering lower CapEx and OpEx solutions ATJ-SPK (bio/thermochem butanol) SK/SAK (CCS - APR) CH (lipids) HEFA+ (wider-cut HEFA with RD) HDCJ (pyro cellulose) ATJ-SKA Co-processing (multiple approaches) Catalytic conversion of alcohols Biochem isobutene Hydrothermal Liquefaction Biochem conversion of wastes STG+, REACH. Expecting final ATJ balloting in 1Q 16 Possible for subsequent approvals every ~6-12 months thereafter Path of discovery to fully synthetic fuels 18 March

8 In- Process Approved Bio-Lipids (F.O.G.) applicability Multiple conversion pathways (fats, oils & greases) SAJF Pathway Gasification & FT Hydroprocessing FOG Biochem sugars Thermochem alcohols (ATJx2) Hydrotherm oils (CH) Thermochem various (APR / HL) Renewable Diesel Thermochem cellulose (HDCJ) Refinery Co-processing Others: (Forge, Tyton) 18 March Honeywell / UOP-Eni Ecofining Neste NEXBTL: SAJF Intentions (first facilities) AltAir Fuels Emerald Biofuels SG Preston ARA - unique value proposition Potential as 100% drop-in Intent to unlock existing RD production - Already approaching 1 B+ gpy capacity Front-end: Blend with crude Mid: FCC, HC, Coker? Back-end: Hydroprocessing 40 M gpy 88 M gpy 120 M gpy

9 Looking diligently at lipids TEA suggests feasibility is in the feedstock economics Multiple conversion processes Lowered H2 cost & availability Multiple feedstock developers Multiple producers Multiple low LUC/ILUC agribased feedstocks, plus: White Grease Chicken Fat Tallow UCO Yellow Grease Brown Grease Easier supply chain scale-up leveraging biodiesel and RD production capacity Targeting most sustainable solutions: Low, or Zero, impact LUC/ILUC & F-v-F solutions; Environmental Services a plus. 18 March

10 Airline offtake agreements and more in process 5 M gpy from M gpy Over 10 yrs Supply from M usg 180M usg over 11 years 3 M gpy 3 M gpy 18 March

11 Recent SAJF related headlines AltAir Fuels First dedicated US production facility for SJAF fuels in Paramount, CA (LAX), 40 Mgpy from FOG. Currently in production. UAL started regular operations out of LAX with 30% HEFA-SPK blend on 11Mar 16. Other fuel going to World Fuel Services, Gulfstream, and 2 additional airlines tba. Navy Launching First Great Green Fleet This Week The Navy obtained about 78 million gallons of biofuel to power the "Great Green Fleet," according to Biofuels Digest, an industry newsletter, adding that the Defense Logistics Agency paid $2.05 per gallon. 18 March

12 Other recent SAJF related headlines 18 March

13 Other recent SAJF related headlines 18 March

14 Other recent SAJF related headlines Bioport Holland for aviation biofuel SEATAC, Alaska, Boeing fund infrastructure study Lufthansa, KLM, SAS, and other airlines can fuel up with Neste alternative jet fuel at Oslo Gardermoen Airport through the efforts of SkyNRG, Avinor, and AirBP Virent Bio-Jet Fuel Emits 50 Percent Less Particulate Matter than Conventional Jet Fuel while Maintaining Engine Performance UN FAO Director General Comments on the Biofuel versus Food Myth 18 March

15 Summary Approaching 2020 CNG aviation commitments Activity needed in next 2-3 years for SAJF to have a material impact against goal and expected carbon monetization Making progress on multiple fronts, but challenges remain Working a full range of activities targeting commercialization Opportunities to contract seed oils at large scale are pending Emerald, SG Preston, Neste, 18 March

16 Steve Csonka Executive Director, CAAFI