The real potential of technologies under development Sustainable Alternative Jet Fuel Aircraft Noise and Emissions Reduction Symposium (ANERS) 20-21 April 2017 Alexandria, Virginia Steve Csonka Executive Director, CAAFI First flight from continuous commercial production of SAJF, 10Mar 16. Fuel from AltAir Fuels, Paramount, CA (HEFA-SPK 30/70 Blend) Now being delivered to LAX fuel farm for everyone s upload 21Apr 17
Com l Aviation s CO2 commitments To decouple carbon growth from demand growth 1.5% annual fuel efficiency improvements CNG 2020 These 3 commitments currently being promulgated into Int l Regulation through an ICAO/CAEP basket of measures : CO2 Standards CORSIA: MBMs Gap filler to CNG 2020 Will facilitate SAJF Will monetize carbon Similar commitment from BizAv & DOD 3 May 2017 2
Overall industry summary: Sustainable Alternative Jet Fuel (SAJF) activity SAJF are key for meeting industry s commitments Aviation enterprise aligned; SAJF delivers multiple benefits, including net GHG reductions of from 50-100% (some carbon-negative) Segment knows how to make it; Activities from FRL 1 to 9 Significant work on pilot, demo, and commercial production Commercial agreements inked, more being pursued Pathway identified for fully synthetic (50% max blend today) Making progress, but still significant challenges only modest production focus on enabling commercial viability CAAFI originally put in place to work a full range of Public-Private Partnership activities to break down barriers and lower risk: foster, catalyze, enable, facilitate, participate Potential for acceleration a function of many elements External: Policy, oil price, public pressure, transport paradigm changes Internal: Risk mitigation, engagement & success replication 3 May 2017 3
SAJF Sustainable Alternative Jet Fuel a.k.a. aviation biofuel, biojet, alternative aviation fuel Alternative: Creating synthetic jet fuel by starting with a different set of hydrocarbons than petroleum a synthetic comprised of molecules essentially identical to petroleum-based jet (in whole or in part) enables drop-in approach no changes to infrastructure or equipment, no recertification, Sustainable: Doing so while taking Social, Economic, and Environmental progress into account Jet Fuel: Delivering the properties of ASTM D1655 pure hydrocarbons Net LCA GHG reduction: Benefit comes from leaving carbon molecules in the ground; Instead, utilizing the carbon already in the biosphere via recycling or dual use 3 May 2017 4
Jet Fuel / Kerosene Aviation Enterprise optimized around the fuel A middle distillate kerosene stream is used for aviation fuel Comprised of mixtures of aliphatic and aromatic hydrocarbons with carbon numbers predominantly in the range of C8-C16, which is typically a mixture of: 25% / 11% normal / branched paraffins 30% / 12% / 1% mono- / di- / tri-cycloparraffins 16 / 5% mono- / di-nuclear aromatics (25% max aromatics air quality concern) There is no standard formula for Jet Fuel Composition that delivers the physical properties and performancebased requirements / characteristics of ASTM D1655 specification A Gaussian distribution of hydrocarbons, represented as C12H23
Creating synthetic jet fuel In order to maintain the aircraft / engine certification basis, we need: Set of molecules / chemicals that are essentially identical to those found in jet Don t allow the overall distribution of molecules to move the aggregate fuel properties outside the physical and fit-forpurpose constraints of D1655 3 May 2017 6
SAJF conversion processes or, dispelling the fear of revisiting Chemistry 101 Start with hydrocarbon / organic building-blocks Deconstruct & remove extraneous molecules Process to workable intermediates Reformulate to appropriate C8-C16 molecules Utilize standard refinery finishing processes D7566 - SAJF Blending Components D1655 from petroleum and D7566 fuel blends 3 May 2017 7
SAJF conversion mechanisms Challenge doing it at the price of petroleum refining $ $? Fossil HC Lipids Plant & Animal Cellulose & Hemi- & Lignin Sugars & Starch Wastes & Syngas Gasify Pyrolize Torefy Saccharify Deconstruct Digest Separate Ferment Dehydrate Catalyze Process FT CH CC APR HL Oligomerize CH4 CO2 Hydrotreat Hydroprocess Hydroisomerize Distill FT-SPK, HEFA-SPK, HFS-SIP, FT-SPK/A, ATJ-SPK, 3 May 2017 8
SAJF blending component examples HDCJ HFS-SIP CH ATJ-SPK HEFA-SPK FT-SPK FT-SPK HEFA-SPK HEFA-SPK 3 May 2017 9
SAJF approved production pathways Annexes to ASTM D7566: D1655 fuel following blending Approved Syngas FT (FT-SPK) Hydroprocessed lipids (HEFA-SPK) Biochem sugars (HFS-SIP) Syngas FT w/ aromatic alkylation (FT-SPK/A) Isobutanol conversion (ATJ-SPK) 50% max blend 50% max blend 10% max blend 50% max blend 30% max blend Commercialization for each in development, in some cases by multiple parties who would use licensing Entities may not achieve commercialization for several years following approval 3 May 2017 10
ASTM approval pipeline Next 3 ( 17 18 approvals) have implications for lipids In- Process Task Forces Refinery Co-processing 5% max incoming blend Catalytic Hydrothermolysis 50%+ max blend HEFA+ (wider-cut HEFA with HDRD) modest max blend ATJ-SPK (expansion to C2-C5 alcohols) SK/SAK (CCS - APR) ATJ-SKA Low FRL 15 additional processes 3 specifically applicable to lipids 3 May 2017 11
Achieving cost competitiveness High Lignocellulosic Conversion Gasification Pyrolysis Torrefaction Deconstruction miscellanea OPEX Conversion of C5/C6 sugars Catalytic Biologic Low Economically Competitive Solution Space Low CAPEX High Valorization of lignin HTL Steam Chemical / Ionic Biochemical 3 May 2017 12
Achieving cost competitiveness High Enabled by: R&D OPEX + ++++ + + D&D Support Policy Commercialization learningcurve progression Build-out Scale Competitive uses Low Economically Competitive Solution Space Valued co-products Enabling approaches informed by analytics Low CAPEX High 3 May 2017 13
Cost-focus is only part of the need Techno-economic assessments don t address total value Expectation that viability will be enabled via other revenue and other services 3 May 2017 14
Commercialization in-development Renewable Diesel & Jet Existing DPA Awardees Red Rock, Fulcrum Emerald AltAir Build out (3-5X) Diamond Green expansion SG Preston (5 facilities in first tranche) ARA licensing and build-out UOP licensing for refinery retrofit Neste, REG, UPM, potential pivots Unlocking of renewable diesel and refinery co-processing Greater than 1B GPY capacity by 2021!?! necessitates serious engagement with purpose grown oilseed & FOG development / expansion 3 May 2017 15
Commercialization intent - lipids Declared nameplate capacities: significant opp ty Gallons per Year (M) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 If all addressed via oilseeds: 1.5 to 2.0 M acre/yr 1.75x more if refinery coprocessing gets traction 24 / 32 12 / 16 Production Acreage Required (million acres) at 200 / 150 gal/acre Significantly more at lower yields of some oilseeds 0 0 / 0 Ignores 2.5B gpy biodiesel production 3 May 2017 16
Lipid feedstocks Potentially enabling of significant production Multiple conversion processes Multiple feedstock developers Multiple producers Multiple low LUC/ILUC agribased feedstocks, plus: White Grease, Poultry Fat, Tallow UCO / Yellow Grease Brown Grease, Biosolids Easier supply chain scale-up leveraging biodiesel and HDRD production capacity Lowered H2 cost & availability (from NG) helps 3 May 2017 17 Targeting most sustainable solutions: Low, or Zero, impact LUC/ILUC & F-v-F solutions; Environmental Services a plus.
SAJF offtake agreements Beyond numerous demonstration programs neat quantities 5 M gpy from 2016 3 yr agreement 30/70 blend 3 yr agreement Enabling LAX flts 375M usg 90-180 M gpy Over 10 yrs 50 M gpy Over 10 yrs 3 M gpy each going into Bay Area, CA 3 May 2017 18
SAJF offtake agreements Beyond numerous demonstration programs neat quantities 48 A350 deliveries 10% blend 10M gpy, 10 yrs Up to 40M gal Over 5 yrs (MOU) (Bioport on demand) (Salvage MSW work?) (HBE defunct, focus on new engagement) 3 May 2017 19
Summary of Potential SAJF technically viable slowly being commercially developed Opportunities actually continuing to expand Challenge is achieving price-point equivalency to petro-jet, but policy has been shown to close business cases Some producers remain bullish on their costs without policy Feedstock availability might be pacing for some pathway families, but not envisioned to be an ultimate constraint Full range of activities ongoing to try to bring down cost, reduce risk, incentivize production, develop feedstocks, Oil price and policy mechanisms will be key determinants Industry still counting on execution of SAJF, commensurate with progress on other pillars 3 May 2017 20
Steve Csonka Executive Director, CAAFI +1-513-800-7980 csonka.caafi.ed@gmail.com steve.csonka@caafi.org www.caafi.org
SAJF Qualification Status Vertimas? Global BioEnergies? SBI BioEnergies? Joule? POET? Shell / GSR / GTI IH 2 HDCJ Collecting Tier 1 & 2 Data & Developing Reports ATJ-SKA (Byogy, (Swedish Biofuels) Green Diesel (HEFA Plus) Virent SAK Currently In Review Process ATJ-SPK (Ethanol) (LanzaTech) Collecting Tier 3 & 4 Data & Developing Reports Virent SK ARA CHJ Approved Fuels Mark Rumizen October 25, 2016 Annex A5 ATJ SPK (Isobutanol) Annex A4 FT-SKA Annex A3 SIP Annex A2 HEFA Annex A1 FT-SPK