Jatro Renewables S U S T A I N A B L E C H E M I S T R Y F O R E A R T H
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1 Jatr Renewables S U S T A I N A B L E C H E M I S T R Y F O R E A R T H
2 ,Transesterificatin: Refine t 2% FFA 2009, Esterificatin: Refine t 15% FFA 2015, Supercritical: Refine t 100% FFA 2015
3 * ** * ** Mt Cc Prducts, Philippines African Energy Initiative, Kampala, Uganda Supercritical technlgy plants Under cnstructin (cmpletin Feb. 2018)
4 ... apprximate amunt Super lwers ttal bidiesel prductin cst vs. traditinal... FFA feedstck can be used t lwer cst f feedstck chice by half r mre... purer glycerin by-prduct, as Super prcess uses n catalyst t cntaminate it... clud pint after final distillatin, renders a clear bidiesel suitable fr use in winter (Left) A feedstck blend f used cking il, crn il and trap grease with a cmbined FFA f 65%. (Right) ASTM 6751, B100 after prcessing with Super prcess * Jatr Renewables has trademarked Supercritical as Super
5 ASTM* D6751 prvides bidiesel specificatins 18 tests (in current ASTM versin) Includes bth quality and perfrmance indicatrs N specificatin cnstrains feedstck ptins Insures ASTM specificatin meets minimum quality Certificate f Analysis A CA typically available fr every lt f bidiesel Prvides a cmplete list f specificatins and test results (Abve) Typical chemistry lab with chrmatgraphy May cntain additinal tests beynd ASTM and ther testing D6751 equipment t perfrm a cmplete ASTM = American Sciety fr Testing and Materials ASTM test
6 Quality Assurance Prgram (QA) Prducers & Marketers Rigrus, externally-mnitred quality prgrams Prducer: n ff-spec. bidiesel leaves the plant Marketer: n ff-spec. bidiesel leaves the plant Super Prcess Requires additinal cntent tests fr: Created fr the bidiesel industry by the industry Mn-, di-, and triglyceride Misture Particulate cntaminatin Esters Cntent
7 Distillatin purifies liquids by a prcess f evapratin and cndensatin Petrleum distillatin prduces different cuts t get gasline, kersene, diesel, etc. Methyl ester distillatin creates a purified bidiesel A purer prduct that blends better with #2 (ULSD) diesel Superir cld weather peratin Greater feedstck flexibility Dependable supply & pricing Higher Cetane Lwer Carbn Intensity (Abve) Tw distillatins clumns:: ne fr methanl remval the ther fr final bidiesel distillatin
8 Drp-in diesel replacement Feedstcks are primarily fats, ils, and greases left ver frm prtein prductin r restaurant use, e.g.: Inedible crn il Animal fats Municipal trap grease Used cking il Sybean il Reduces GHG emissins 60% Blends with petrdiesel in any percentage (Abve) Tw distillatins clumns:: ne fr methanl remval the ther fr final bidiesel distillatin Once blended des nt drp ut
9 Adds lubricity t diesel engines Higher cetane Over 50 vs. petrdiesel at abut 44 Smther, mre cmplete burn Clse t zer sulfur Typically less than 5 ppm, whereas petrdiesel is abut 10 Almst zer armatics Reduces txicity Abut 10% xygen Reduces black smke particles, burns cleaner (Abve) Tw distillatins clumns:: ne fr methanl remval the ther fr final bidiesel distillatin Bidiesel is nn-hazmat rated
10 Typical Prductin Csts and Margin fr Super Table cnsiders 4 feedstck blends at varius csts Entry Items 100% Crn Oil 50% Crn, 50% UCO 30% Crn, 35% UCO, 35% Brwn Feedstck Cst Per lb $ Ttal Feedstck Cst/gal Prcessing G&A TOTAL COGS Glycerin Revenue B100* Revenue (10/5/17) TOTAL REVENUE/gal Margin (ebitda)/gal $ Traditinal plant margins 35% t 80% less using same blends except brwn grease (cl. 4 abve) as traditinal prcess can nt refine ver 15% FFA ils 15% Crn, 15% UCO, 70% Brn. Avg. blended feedstck cst dlvd. per lb and per galln (lbs x 7.55 = gals) Prcessing includes: feedstck lsses, chemicals, energy, labr and plant maintenance General and administrative: accunting, insurance, cmmissins, rent etc. Value per galln f bidiesel is duble r mre vs. glycerin frm traditinal prcesses * Includes RINs and $1.00 tax credit if credit is in frce. In this example credit is shared (Abve) 50/50 Tw when distillatins Cngress clumns:: re-enacts ne it as fr they have dne every year since 2007 methanl remval the ther fr final bidiesel distillatin
11 Margins Fr Diesel Fuel Retailers fr Super (B20) Entry Items Per Galln Prices NYMEX Heating Oil (HO) 02/16/18 $1.88 Price B100 Dlvd. Rack/Blender 3.20 Less Heating Oil Value 1.62 Less RIN $1.02 x Price Basis T HO w/ RINs: HO Net Price At Rack (after trading RINs) 1.67 Margin Over ULSD fr B Margin Per Galln f B The typical margin fr a galln f ULSD is $0.15 t $0.25. Therefre, bidiesel adds frm 23% t 14% additinal margin. (Abve) Tw distillatins clumns:: ne fr methanl remval the ther fr final bidiesel distillatin
12 Federal Tax Subsidy Renewable Fuel Standard (RFS) $1.00 per galln subsidy Managed by IRS Currently law delayed, cngress needs t vte Cngress established a law (EISA) in 2005 t develp alternative energy Managed by EPA Requires refiners and fuel imprters t blend increasing %ages f renewable fuel int transprtatin fuels T pt ut, refiners can buy a pass, called a Renewable Identificatin Number (RIN), a traded value attached t each galln f renewable fuel Califrnia Lw Carbn Fuel Standard (LCFS) Abut $.050 t $1.00 per galln depending n Carbn Intensity (CI) f the fuel. Wrks similar t RFS. (Abve) Tw distillatins clumns:: ne fr methanl remval the ther fr final bidiesel distillatin
13 RFS: vlumes Used t determine the prpsed percentage standards fr RFS Fuel Type Cellulsic Bifuel 106 m 206 m 311 m 238 m/y Bimass-based Diesel 1.70 b 1.80 b 2.0 b 2.1 b/yr Advance bifuel 2.90 b 3.40 b 4.28 b 4.24 b/yr TOTAL RENEWABLES (Includes ethanl) b b 18.5 b 21.0 b LCFS: n vlume target... ther than 50% renewable transprtatin fuels by 2030 (Abve) Tw distillatins clumns:: ne fr methanl remval the ther fr final bidiesel distillatin
14 Renewable Fuel Standard Prcess Tracking system t measure RFS2 cmpliance Each qualifying galln f renewable fuel has its wn unique number called a renewable identificatin number (RIN) Every galln f B100 prduced generates D4 class RINs The RIN value is determined by the market as they area tradable cmmdity Fuels (nt just bidiesel) have different energy levels. A bidiesel D4 galln has 50% mre energy than ethanl and is wrth the value f the D4 RIN x 1.5 Obligated parties meet their EPA-regulated vlume bligatin by blending renewable fuel r instead accumulating (buying) RINs RINs are detachable and trade actively amng prducers, bligated parties, and traders RIN prices are a mechanism t balance supply and demand.
15 Examples f Obligated Parties
16 Bidiesel blended fuels have a psitive impact when taking advantage f state tax incentives: Iwa: Eligible fr a 4.5 cent retail tax credit per galln fr B5 bidiesel, and 3 cents per galln fr blends f B11 r mre Califrnia: LCFS creates tremendus bidiesel blending ecnmics Illinis: Bidiesel blends f B11 and abve exempt frm state excise tax f 6.25% at the retail Texas: $.20/gal. at retail fr B99 blended New Yrk: Mandate fr B5 in heating il
17 The Merits f Bidiesel Myth Car and Truck manufacturers (OEMS) d nt warranty engines fr Bidiesel Bidiesel is made frm sy and takes fd ut f the fd supply chain Bidiesel made frm used cking il, trap grease and ther lw frms f grease d nt make quality bidiesel Bidiesel clgs fuel filters Bidiesel is nt that gd fr engines in the lng run. Des nt help an engine Bidiesel has a lw cetane, s less pwer, pr perfrmance Bidiesel is limited t summer mnths Reality Almst all d: OEMs making diesel engines cver engines 100% when using up t a 20% blend f bidiesel t diesel N truth t this. Als, 70% f bidiesel is made frm waste cking ils and waste animal fats, fish il and inedible crn il etc. N truth t this. Many types f grease can be cnditined t make the highest quality bidiesel. Sme at very lw cst. N truth t this: During the first mnth f use all fuel line filters shuld be checked as the bidiesel will be cleaning build-up in lines, tank and injectrs... and leaving it in the filters. N truth t this: Bidiesel acts an engine lubricant supplanting sulfur when diesel fuel cntained 2000 ppm sulfur, nw its belw 15 ppm by law N truth t this: Bidiesel has a 47 t 51 cetane vs. diesel at abut 40. Engines run smther N truth t this: A 20% blend (B20) Bidiesel can be used all year, and dwn t temperatures as lw as- 30 F
18 Fr Mre Infrmatin abut Jatr Renewables and Bidiesel Cntact: Ian M. Lawsn (937) Nrth Main Street Miamisburg, OH JatrRenewables.cm
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