Dr Philipp Stratmann ABLC, Washington DC, March 2017 Roll-out of smaller scale gas-toliquids: current commercialisation and future approach
Introduction to Velocys A market leader in smaller scale GTL and BTL Commercial center in Houston, Texas; technical centers near Columbus, Ohio and Oxford, UK Fischer-Tropsch technology: Demonstrated via 26,000 hours at pilot/ demonstration scale and 1.3 million hours laboratory testing Commercial reactors and catalyst manufactured Strong plant economics underpinned by technology performance Strong team: experienced in commissioning and starting-up GTL plants: technical, operational and commercial First product produced at commercial reference plant IP: exhaustive and proven patent protection, successfully defended ENVIA Energy GTL plant 2
Gas-to-liquids (GTL) and biomass-to-liquids (BTL) process Chemical conversion of gas to refined products Reforming Stranded natural gas, landfill gas, associated gas Syngas carbon monoxide + hydrogen Gasification Biomass, waste Hydroprocessing FischerTropsch Raw products Premium fuels and speciality products (diesel, jet fuel, waxes) Products are renewable if using landfill gas or biomass as feedstock 3
Smaller is bringing GTL to the mainstream Large-scale economics at smaller scales Conventional Fischer-Tropsch reactor Note: Reactor capacities differ considerably Velocys Fischer-Tropsch reactor 4
ENVIA Energy s GTL plant Status
Video taken around the Oklahoma City site Can be viewed here http://www.velocys.com/media_videopage15_envia_okc.php 6
ENVIA Energy s gas-to-liquids plant Oklahoma City 7
First Fischer-Tropsch product at ENVIA, Oklahoma City 8
A high-performing professional collaboration David Pummell with the ENVIA Plant Manager and senior Velocys staff on site A wealth of experience from the development of our technology Highly experienced and motivated commissioning and start-up team A team of experienced people from our pilot plant and demonstration sites 9
ENVIA Energy Velocys Fischer-Tropsch reactors in situ 10
ENVIA Energy Oklahoma City project Status Delivered a safe and successful start-up of the Fischer-Tropsch modules and upstream units First Fischer-Tropsch product successfully produced Fuels expected to qualify under RFS generating tradeable RIN credits Landmark event for Velocys technology and its commercial reference plant The operations team is now focusing on ramping up production to full capacity Key stakeholders visiting the plant 11
Other projects And future approach
Third part project - Red Rock Biofuels US DoD sponsored BTL 1,100 bpd biomass-to-liquids (BTL) plant Located in Oregon, USA Will use forestry waste as feedstock Licensed plant agreement signed with Velocys FEED study complete Southwest Airlines & FedEx to each offtake 3 million gal/yr of jet fuel from the plant Supported by US Department of Defense and US Department of Energy $4.1m phase 1 grant for engineering $70m construction grant 13
Four strategic themes Drive scale and pace to market Strategic alliances world class partnerships The offer one stop shop Business model take control but remain capitallight Leverage differentiated capabilities 14
Morimatsu Modularisation and fabrication partner 70 years experience in the design, engineering & fabrication of modular processing facilities for oil & gas and many other industries World-leading clients Fabrication facilities include 3 plants in China (800,000 m2 of floor space and 3,500 staff) Combines competitive Chinese labour costs & Japanese quality & management systems Jointly targeting plant-wide reductions in CAPEX, OPEX and footprint for BTL and GTL plants 15
FT island modular plant design for a 5,000 bpd plant Globally optimized plant, 700 bpd reactors, 0.8 acres footprint 16
TRI Gasification partner Leading provider of steam reforming gasification systems Proven technology 10,000+ hours at demonstration plant in North Carolina Syngas shown to be suitable as input to the FT process Norampac TRI gasification system Selected for and deployed at various commercial projects in North America Norampac, a division of Cascades Paper, in Trenton, Ontario 17
Rapid progress to delivering BTL offer Key steps to a financeable solution Engineering design already underway for a BTL plant TRI will support Velocys and its other partners, like Morimatsu, to further optimise: Overall plant CAPEX and OPEX Financing of the first BTL plant accessing USDA loan guarantee for product offtake Velocys skid-mounted GTL pilot plant in Ohio Integrated technology demonstration at TRI Costs supported by US DOE Velocys to relocate skid-mounted pilot plant from Ohio Integral to USDA loan guarantee qualification TRI s demonstration facility in North Carolina 18
Summary Smaller scale GTL and BTL using FT is now a reality Fischer-Tropsch process now economic at smaller scales Scales consistent with biomass supply chain constraints Converts low value feedstock into high quality, high value renewable fuels Expected to be eligible for RIN and LCFS credits Velocys technology: ideally suited to BTL and GTL applications First product produced at commercial reference plant Selected for Red Rock Biofuels BTL project Developing integrated offer with partners to facilitate investment decisions and drive roll-out of technology at pace 19
Thank you Dr Philipp Stratmann Business Development Director philipp.stratmann@velocys.com Houston office +1 713 275 5840 www.velocys.com 20
Appendix 21
FT fuel delivers environmental benefits Chemically similar to conventional jet and diesel, with advantages FT route to jet fuel and diesel from biomass can reduce lifecycle greenhouse gas emissions by ~70% Meets industry specifications Jet: ASTM D7566 approved at up to 50% in blend with conventional kerosene EN 15940 for synthetic diesel Reduces air pollution Jet <0.5% aromatics, <15ppm sulfur Substantial emissions improvements Local supply chain benefits stakeholders and reduces fuel transport Conventional diesel (right) vs FT diesel (left) 22