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Biomass to Bio-Crude to Biofuel : Integrated Bio-Refineries in India

Dharmesh Mahajan

New Delhi

March 8th 2018

Biomass- A Massive opportunity in disguise

“Burning Biomass” to “Bio-Crude Reserves” of Nation:

Confidential

• Who we are

• What is the Opportunity/ Challenge in India

• Why Honeywell UOP

• Where it is already being done

• When India will need its own “Bio-Crude Reserves”

• How the “Challenge” becomes a massive “Opportunity”

• Summary

• Next Steps

Better Economics Continuous Innovation Reliability Expertise

2,500

200 with PhDs

Engineers and scientists

• Process Technology

• Catalysts

• Adsorbents

• Equipment

• Services

UOP technology makes more than 60% of the world’s gasoline, 70% of its polyester and 90% of biodegradable detergents, and processes more than 40% of its

LNG

Petrochemicals Natural GasRefining Renewables

UOP technologies offer a high return on

investment

Continuous technology improvement allows customer

operations to remain cutting edge

UOP technologies are among the most widely proven

in the world

UOP has a century-long record leading technology

development for the oil and gas industry

Largestprocess licensing organization

in the

world

31out of 36refining technologies in use today

were developed by

UOP

800+R&D employees

3,000+ Active patents

Honeywell In India- Committed since 1930’s- 1st Indian refinery at Digboi license Dubbs Cracking Process from UOP in 1930’s

- 6 Manufacturing locations today- Gurgaon, Pune, Dehradun, Chennai, Vadodara

- 5 Technology and Engineering Center- Gurgaon, Bangalore, Hyderabad, Madurai

- More than 3,000 technology products, solutions, and applications engineered in India

- Around 15,000 employees in India, including 8,000 engineers across 50 cities

India is our “Knowledge Center”, not a “Low Cost Manufacturing destination”

Honeywell UOP, in a glance

What We can do with “Surplus Biomass” Challenge

UOP 7299-3

Key Supply Chain Steps1) Use locally available biomass from the agricultural farms

2) Convert it to Bio-Crude/ RFO at nearby RTP™ unit

3) Store/Transport Bio-Crude/ RFO to Refiner who has an FCC unit

4) Refiner injects Bio-Crude/ RFO into FCC to make Fully Fungible transport fuels

Agri -residues Surplus Biomass

Waste Wood

1

RTP™ unit to convertBiomass to Bio-Crude/ RFO near farms

2

Bio-Crude/ RFO to FCCunit for conversion to transport fuels

43

Bio-Crude/ RFO torefinery by truck orrail

Fresh Feed

Backward Integrated Supply Chain for a Bio-refinery

to Flue Gas System

LPG

Gasoline

LCO

VGO

RTP green fuel

UCO

What is “Bio-Crude”

Liquid Biomass produced in 2 seconds from Bulky Biomass

• Is “Liquid Biomass” made from non-food, woody waste biomass through Rapid

Thermal Processing® conversion

• Complex mixture of carbon, hydrogen and oxygen containing compounds

(aldehydes, phenolics, acids, alcohols, etc.)

• Elemental Composition– 42wt% C, 8 wt% H, 50 wt% O

– < 100 ppm S– 25wt% +/- 5% soluble water

– Density: 1.2 g/mL

– pH<3 (organic acids)

• Viscosity– Quite fluid at 70ºF– Highly viscous below 50ºF

FCC Co-Processing….Knowing the Unknowns

Because we know Refiner’s challenges, and we know FCC’s

• Oxygenates

– Acid conversion virtually complete in FCC riser

– Oxygenates in FCC naphtha same as those already seen in petroleum-only FCC operation

– LCO and heavier cuts no perceptible change in oxygenates

• Alkali metal effects

– Studied deactivation at lab scale

– Economic alkali metal management techniques developed

• Chlorides

– Chlorides are possible source of concern in all FCC units

– Review of operations and equipment before co-processing allows trouble-free operation

• Unsaturated hydrocarbons

– Method of operation avoids fouling issues commonly associated with pyrolysis oil at high temperature

– Trial showed trouble-free injection

Concept Selection

Pilot Plant Trials

Commercial Design

Commercial Trial

EPA Part 79

EPA Part 80

Technology Deployment

2016201520132012 2018

Addressing the Concerns…

When India will need its own “Bio-Reserve” of Bio-Crude

प्रधानमंत्री मोदी: हमारा मकसद 'खाडी का तेल और झाडी (जैव ईधंन) का तेल ममलाना है

https://www.thehindubusinessline.com/economy/modi-calls-for-slashing-oil-gas-imports-by-10-in-next-7-years/article7039287.ece

“We currently import around 77 per cent in energy sector,

in oil, gas and petroleum sector. We can reduce this

import by at least 10 per cent by 2022. This 10 per cent

we will produce ourselves and this should be our dream,”

he said.

India will be celebrating its 75th year of independence in

2022 and lowering imports will be a tribute to those who

sacrificed their lives for our freedom, Modi said.

https://www.thehindubusinessline.com/economy/modi-calls-for-slashing-oil-gas-imports-by-10-in-next-7-years/article7039287.ece

• Vulnerability to Climate Change is a key concern for India

• Goal: Reduce emissions intensity of GDP by ~33-35% (2030 vs 2005)

• Avoided emissions ~ 3.59B tons CO2e over BAU

• Thrusts on renewable energy, green transport

• Urban Air Quality concerns

• Linkages to “स्वच्छ भारत, हररत भारत” Mission and “Make in India” synergies

99.8 102.0

76.068.4

57.0 56.7

21.7 20.1 19.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

GasolineBaseline

DieselBaseline

MidwestCorn

Ethanol

CaliforniaCorn

Ethanol

SoybeanBiodiesel

BrazilianSugarcane

Ethanol

EnsynRenewable

Diesel

EnsynRenewableGasoline

Biodieselfrom usedcooking oil

Select LCFS Pathway Carbon Intensities (gCO2e/MJ)

Source: LCFS Readopted Regulation, Ensyn Pathway Application

Where “Biomass to Bio-Crude” conversion is taking place

UOP 7299-7 Proven pathway – Fixed Price, Fixed Delivery, Modular Packages

• Commercialized in the 1980’s

• 6 units operating in the US and Canada, 1 in Commissioning World’s Largest Biomass Fast Pyrolysis Unit

Project Location Capacity Feedstock Application

United States 400 BDTPD Forest Waste Transport Fuels

Brazil 400 BDTPD Forest Waste Transport Fuels

South East Asia 400 BDTPD Palm Mill Residue CHP

Northern Europe 400 BDTPD Agri-Residue CHP

How Biomass Challenge becomes a massive opportunity in India

UOP 7299-8Opportunity: 42 MMT BD Biomass ~ 10% of Fossil Crude Demand

42 MMT 24.7 MMT* (141 Million Barrel)

Surplus BD Biomass Bio-Crude

Renewable

Fuel Oil

Bio-Crude for

Refineries

for Refineries

222.3, 90%

Fossil

24.7, 10%

Crude Refining Capacity in India

247 MMT

Source: MoPNG

98, 65%

52, 35%

Surplus Biomass in India ~ 150 MMT

* Estimated yields for Paddy Straw, BSU trials needed to confirm yields

Bio-Crude Co-processing- Why it make sense in India

Creating Value from Surplus Biomass: Planet…People….Profit

Technical Merits

Proven application

Feedstock flexibility (70+ feeds tested)

High yields as 100% Biomass used

High Biomass Energy Densification (~72%)

Liquid Wood=Ease of Storage/Logistics

Fully Fungible, Pipeline compatible fuel

Decoupled Biomass Value Chain

Energy Security

Energy diversification

Reduced dependence on Crude imports

Stable prices with off-take agreements

Freedom from Crude Price fluctuations

Economics

Fixed Price, Fixed Delivery Schedules

Highly attractive Revenue potential

Leverages existing refinery assets

Provides alternate revenue stream for farmers, supports rural economy

Fossil Crude Replacement= Forex saving

Environment & Social

Sustainable Solution for Biomass Burning

Agri-Economy/Waste to Wealth/Rural

Employment/ Additional Farm Income

One of the lowest CI under US LCFS

Proven pathway under US CARB (RG/RD)

UOP: Global Presence in Sustainable Fuel initiatives

SAFUG: Sustainable Aviation Fuels User Group

ATAG: Air Transport Action Group

ICAO Sustainable Aviation Fuel Expert Team

Global Initiatives

Masdar Institute

Sustainable Biofuels

Research Consortium

Sustainable Aviation Fuels

Northwest (SAFN) (US/Pacific

Northwest)

Midwest Aviation Sustainable

Biofuels Initiative (MASBI)

SABB: Sustainable Aviation

Biofuels Brazil

National Advanced Bioenergy

Consortium (NABC)

National Alliance for Advance

Biofuels and Bioproducts

(NAABB)

Algae Biomass Organization

(ABO)

Advanced Biofuels Association

(ABFA)

Plan de Vuelo hacia

los Biocombustibles Sustentables de

Aviación en México

SAFRM: Sustainable Aviation

Fuels

Road Map

China Biofuels Initiative Ohio Biomass Collaborative

Aviation Biofuels Romania

Consortium

AirReg

SWAFEA - Sustainable Way for

Alternative Fuel and Energy in

Aviation

Indonesia Aviation Biofuel &

Renewable Energy Task Force

Honeywell is committed to providing technology

options that better enable our customers to

produce better quality Renewable fuels & Energy for a

more sustainable future

THANK YOU

UOP 7301-11

Ecofining™ & UOP Renewable Jet Fuel™ Process

12Proven Technologies for Feedstock Flexible Drop-in Fuels

Ecofining Process or

UOP Renewable

Jet Fuel Process

Honeywell Green Jet Fuel™

(HEFA SPK)

Plant-derived Oils

Animal Fats & Grease

Used Cooking Oil

Algal Oil

Future feed stocks?

Honeywell Green Diesel™

(HVO)

Process of the Year:

Honeywell’s UOP Green

Fuels TechnologyHoneywell Green Jet Fuel™

2016 Heroes of Chemistry Award2017 Hydroprocessing Awards

Best Refining Technology- Ecofining™

Operating Plants Using UOP’s Renewable Technology

13UOP Has Extensive Commercial Experience Producing Green Fuels

2013

Diamond Green Diesel

• First New Ecofining Unit installed at Louisiana, Biggest in USA

• Expansion to 180% in progress

2014

ENI #1

• First refinery retrofit to Ecofining Unit at Venice

• Expansion to 150% in progress

2016

AltAir

• First refinery retrofit to UOP Renewable Jet Fuel Unit at LA, California

• Produces Green Jet and Green Diesel

2018 ENI #2

• Second refinery retrofit to Ecofining Unit at Gela, Italy

• Startup in 2018

Confidential