Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
• Super Biodiesel
• Renewable Diesel
• BioJet Fuel A
• . . . and by-Products
Business overview to build and
operate multiple biochemical
plants and produce . . .
“Moooo, plant left-overs are my feast!”
4-29-18
Vision 1Mission 2Fuel Pathways 3Opportunity 4About JatroRenewables 7Future (3 to 5 years) 8Margin Analysis 9Products Review 10Supercritical Biodiesel (Super) 11Renewable Diesel (RD) 12Competitive Processes 13Patents 14Marketing of Fuels 15Marketing of Plants to Co-locate 16Plant Logistics 17Plant Locations 18Plant Statistics (industry) 19Operations 20Quality Assurance Program (QAP) 21Biodiesel and Renewable Diesel Subsidies 22Renewable Identification Numbers (RINs) 23California Low Carbon Fuel Standard (LCFS) 26Feedstock Acquisition 27Feedstock Volumes by Type 28
APPENDIX A Equipment Fabrication 29APPENDIX B Fuel Features Comparison 33
Chemical Comparison 34Engine Performance 35
APPENDIX C Schematic Super Biodiesel 36Schematic Renewable Diesel (partial) 37
1. Become one of the leading world companies in the
production and marketing of biofuels
made from 100% sustainable
(renewable) materials
2. Be acknowledged as a leading global
company in environmental R&D and
well-known for our products
3. Provide an optimal work place to attract
the best possible employees and maintain
and develop their careers
4. Be respected by the financial community as a result of
valuable IP, sustained growth, and the value to the
community from our technological innovation.
Keeping it clean . . . like a city park or your back yard!
1
1. Contribute to the development of the fuel market for
transportation market using renewable (green) technologies
2. Develop innovative technology solutions through
investment in R&D to provide more efficient
production processes, higher quality products
and raw material diversification
3. Create shareholder value, focusing on
creating profitable and sustainable
(enduring) technology and IP
4. Contribute to the personal and professional
development of employees through on-going training
and with personalized development goals.
2
Cellulosic Biomass
Bioemulsion
Diesel
Substitute
Transesterification
Biodiesel
Isomerization
Hydrotreating
Renewable Diesel²BioJet Fuel
Catalytic
Conversion
Catalysis & Aqueous
Phase Reforming
DMF
Gasoline, Jet Fuel &
Hydrocarbons
Fermentation
Ethanol, Butanol &
Hydrocarbons
Biogasoline
ETG Via Catalysis
Pyrolysis
Bio Oil
Renewable Diesel &
Jet Fuel
Syngas
Fermentation
Ethanol,
Methanol,
Propanol,
Butanol
Renewable Diesel,
BioJet Fuel
Gasification³
Acid or Enzyme
Hydrolysis
Saccharification
Syngas
1st. Generation (D4 RIN for RD & Biodiesel) 2nd. Generation (D7 RIN for RD)
Natural Oils
Notes: 1. Sugars / Starches” column, ethanol fermentation counts as 1st Gen.2. Feedstock is reacted with hydrogen at elevated temp. and pressure
3. Biomass-To-Liquid (BTL) where biomass is gasified into syngas, cleaned then passed over solid metal catalyst
4. Gray boxes: JatroRenewables pathways (products)
Sugars / Starches¹
Fischer-Tropsch
Catalysis
g⁴
3
CHS, Inc. Supercritical Biodiesel Plant, Annawan, IL
1. To build and operate multiple Supercritical Biodiesel
(BD) and Renewable Diesel (RD) plants in the
US, Canada and ROW¹
2. Nameplate of plants to correspond with
geographic market offtake potential and
economic availability of feedstock sources
3. Jatro Renewables to own and operate plants
6. Co-located plant shareholders have option to Invest
in plant’s equity and receive dividends regularly
4. Plants to be greenfield and others co-located
with existing biodiesel or ethanol plants
Note: 1. Rest of World
Continued . . .
5. Plant types use same design scaled by market size
4
East Kansas Agri Energy, Renewable Diesel Plant, Garnett, KS
7. Plant types built to be determined by market
dynamics. For example: California = RD & BD;
Midwest = BD; New York City = RD etc.
8. Projected Plants Operating Over 7 Years:
Year BD RD Total/Year
2020 2 1 3
2021 2 2 7
2022 2 3 12
2023 3 3 18
2024 2 4 24
2025 2 4 30
2026 2 5 37
15 22 37
9. Each plant completed within 15 to 18 months starting with design
thru permitting, construction (sub contract), and EPA approval
Continued from last slide
Continued . . .5
Vanguard Synfuels, Biodiesel, Pollock, LA,
10. Revenue Projections by Year:pppp
Year Plants¹ Gals. $ Rev. EBITDA
2020 3 150m 487m 92m
2021 7 350m 1.14b 222m
2022 12 600m 1.90b 381m
2023 18 900m 2.92b 571m
2024 24 1.20b 3.90b 762m
2025 30 1.50b 4.87b 952m
2026 37 1.85b 6.00b 1.2b
Note: 1. Avg. plant size 50MMgy.
Avg. Revenue per gal. $3.25 dlvd.
Avg. EBITDA margin (after debt service) $0.635/gal.
Continued from last slide
11. Biodiesel plants produce Super biodiesel plus 8%
glycerol. RD plants produce D975 diesel and/or
BioJet fuel plus naphtha & fuel gas by-products
37 6.55b 21.22b 5.08b
6
• JatroRenewables was founded in
2004 with partners
• Built first biodiesel plant near
Dayton, OH
• 2006 began installing biodiesel
plants and mass transfer modular
systems in the U.S.
• 2010 adapted esterification to allow
use of lower cost oils (to 15% FFA
from 3% FFA)
• By 2012 the company developed a
patented technology called
Supercritical to process
oils with up to 100% FFA
• Supercritical process lowers opex
by about 35%7
• 19 plants installed since 2004
• 1 plant using Supercritical,
another under construction (in
2017 company awarded grant
from California Energy
Commission for $3.8m)
• Another Supercritical plant will
begin construction in May 2018,
in California
• In 2017 company began offering
patented Renewable
Hydrocarbon Diesel ASTM D975
with one commercial system and
another (formerly operating)
moved to another location (and
currently under construction.
Wood chips from forest slash or other wood sources offers abundant feedstock and wholly sustainable
1. By about 2022 cellulosic biomass will begin to dominate
the industry for both diesel fuel and ethanol
2. The plan is to add this capability to all existing
plants producing renewable diesel
3. The effort initially will be to license the
technology. Later the company will
acquire/develop internally
4. Pyrolysis appears to have the most promise
with the ability to mitigate TAN
5. A company in Norway has acquired this capability and
has licensed it to two companies in the U.S. recently.
8
CRITERIATRADITIONAL
BIODIESEL
SUPERCRITICAL
BIODIESEL
RENEWABLE
DIESEL
Production/Year (gals) 50,000,000 50,000,000 50,000,000
CAPEX $49,000,000 $52,000,000 $115,000,000¹
Cost Per Nameplate Gal. 1.30 $1.50 $2.10
Feedstock/lb (dlvd) 0.26 0.24² 0.24²
Feedstock/gal 1.96 1.81 1.81
Operations, G&A⁴ 0.82 0.77 0.82
Total Cost 2.78 2.58 2.63
Revenue B100 (dlvd.) 3.45 3.25 3.50
By-Products/eGal. (fob) 0.08 0.14 0.06
Total Revenue/gal³ 3.53 3.59 3.56
EBITDA/gal 0.75 1.01 0.93
Total EBITDA/Year 37,500,000 50,500,000 46,500,000
Months to Payback 17 14 30
IRR (10 years) @ EBITDA 41% 40% 29%
Notes: 1. Includes all plant equipment, SMR, tanks, permitting and labor. Deduct capex of about $25m to $40m ifconnecting to H2 pipeline or any plant w/excess H2.
2. About 25% low cost feedstock blend (corn oil, YG/UCO @ $0.29 & brown grease $0.14 dlvd). 3. USDA, & TheJacobsen spot pricing 1/28/18.
4. Labor, Energy, Chemicals, Maintenance, Freight out, Accounting, Ins. and Debt Service at 50% of capex @$0.08/g.
9
1. Biodiesel Revenue
Biodiesel/gal. Midwest $3.02–3.15
4/30/18 NY Harbor 3.12 –3.22
Gulf Coast 2.95–3.07
California 3.45–3.60
97% Glycerol/lb . All Markets 0.15–0.19¹
2. About 11.5% of total production, per gal. renewable diesel
Calgren Energy, 60MMgy ethanol plant, Pixley Calif. Co-located biodiesel plant under construction by Jatro Renewables
Notes: 1. About 9% of total production, per gal. of biodirsel
2. Renewable Diesel³
Biodiesel/gal. Midwest $3.02–3.51
4/30/18 NY Harbor 3.12 –3.22
Gulf Coast 2.95–3.07
California 3.45–3.60
Napatha/eGal. All Markets .0.06–0.08²
Flue Gas All Markets TBD
3. Renewable Diesel is priced the same as biodiesel 10
1. It significantly simplifies refining, improves fuel
quality and costs less to make
2. 28% is the approximate amount Super
lowers total biodiesel production cost
3. High FFA oils will reduce cost by up to
about 35% when using just 25% of it
4. 100% FFA feedstocks can be used to
lower the cost of feedstock choice
5. 95-97% glycerin by-product, worth twice
over traditional processes as the Super
process uses no catalyst
6. 0°C cloud point after final distillation, and
renders a clear biodiesel, makes it more
suitable for use in sub-freeze conditions.
Feedstock on the left, finished Super biodiesel on the right
Notes: 1. More details in Appendix A
11
1. Hydrotreating process is simple to master as an Operator
with about 100 years of use in oil refineries
2. Uses same feedstocks as biodiesel
3. Production cost similar to Super biodiesel
(uses hydrogen vs. methanol)
4. Low cloud point at -15°C (10 degrees less
than #2 diesel). Can be pushed to -40°C²
5. High cetane of about 70. Provides for a
better running engine
6. No blending as it’s a drop in fuel
7. Same characteristics as #2 diesel
Can go on pipeline, transported and stored same as #2 diesel
8. Has the same ASTM D975 designation as #2 diesel
9. Emits 60% to 80% less volatile emissions vs. #2 Diesel
10. Can be stored indefinitely (contains no oxygen)
Renewable diesel vs. #2 diesel when burned to show smoke in the lab.
Notes: 1. More details in Appendix A2. In production
12
1. Supercritical Biodiesel
Producers try to keep prying eyes from their methods of production; however,
we estimate only 3 to 5 have the ability to handle up to 100% FFA feedstocks
(about 3% of biodiesel plants)
2. Renewable Diesel
There are about 12 companies worldwide who can
process virgin oils using hydroprocessing methods:
Neste, Finland, 3 operating plants, about 750MMgy
ENI, Italy Conoco, Ireland Preem, Sweden
Petrobras, Brazil Total, France REG, Louisiana (85)
Valero, LA (256) AltAir, L.A. (40) RB Processing, TX
East Kansas AE.(5) Houston Refining, TX.
3. There are five known technologies the above companies are using: from
Honeywell UOP, Neste, Chevron, Petrobras and Cetane Energy.
Note: This section needs more research to validate numbers
Honeywell UOP refining process
13
1. JatroRenewables licenses the Supercritical process from a small company in Japan.
2. The semi-exclusive license covers the world
3. The company has built one Supercritical plant, a second one is under construction in California.Another plant at 15MMgy is scheduled to begin construction in May 2018, also in California
4. The Renewable Diesel technology is covered by two patents surrounding the reactor (as virgin oils are reacted differently than crude oils)
5. A license agreement with the renewable diesel processdepends on our ability to raise funds to start a project
6. JatroRenewables will continue to develop both the Supercritical and Renewable Diesel processes as part of the continuing license agreements.
Cities in California are clamoring for renewable dieselas it contains very low levels of nitrogen oxides, a cause of smog.
Notes: 1. More details in Appendix B
14
Multiple smaller storage tanks can be less costly than single
large tanks, the latter found in crude oil refineries where
volumes are 100 times that of the typical biodiesel plant
1. The selling of fuel is structured a number of ways and is
highly dependent on market forces as fuels
are a commodity. Examples:
(i) Long-term contract hedged by Buyer
using heating oil as the basis (i.e. sold
as Heating Oil plus price of fuel with or
without RINs attached)
(ii) Short term, typically 3 months, hedged
(iii) Spot sales.
2. Customers
(i) Companies trading in high volume
renewable fuels. Typically barge loads
(1m gals) and unit trains (100 tank-cars, total 2.5m gals.)
(ii) Regional legacy fuel distributors (500k to 2m gals/month)
(iii) Refiners (strips with custom CoA requirements)
(iv) Municipalities on tenders . 15
Supercritical Biodiesel plant by Jatro Renewables
1. Ethanol Plants (230 in U.S. and Canada), 14.6Bgy
(i) Ethanol plants have a motivation to add other types of fuels to
their business model as corn-based (starch) is limited by the
EPA to 15bgy. The industry is currently about 14.6bgy. Therefore
offer tremendous value for a new co-located BD or RD facility:
(a) They predominantly have existing rail (some w/water)
(b) Most environmental and permitting issues known
(c) Have power, loading docks, roads, other assets to share
(e) Have plant assets such as steam (though both plants
designed to operate autonomously when necessary
(ii) Ethanol plants are predominantly in a strong financial condition
and are likely to participate in the equity of a joint venture project.
2. Biodiesel Plants (143 in the U.S. and Canada), 2.7bgy
(i) Same as ethanol plants except no cap on fuel type
(ii) Typically biodiesel plants average about 20Mmgy, 1/5th to
a ¼ of ethanol plants at between 50 and 150MMgy+.
(iii) Smaller than ethanol plants, financial condition typically not strong
except for the larger companies such as REG, Andersons, White etc. .16
Estimated Average Annual Daily Diesel Truck TrafficU.S. Dept. of Transportation (1998)
1. Ideally plants are located closest to markets served.
Unit trains (100 cars) provide local cost parity for outside region
2. Feedstocks are received by truck and rail
from many different locations across U.S.
3. Existing plants running soy, 52% of all
biodiesel and RD feedstock, is relegated
to 7 Midwest states where material is grown
4. Ethanol plants are similarly located near
their sources of Corn feedstock in same
7 state area (S. and N. Dakota, Nebraska,
Iowa, Illinois, Missouri and Indiana).
5. Map at right shows diesel truck traffic and indicative of #2 diesel
daily usage volume (only 3% of cars use diesel)17
United Metro Energy, Brooklyn, NYC: On water, with rail near InterstateJatroRenewables currently re-engineering. Plant closed.
1. Offtake to customers and receiving incoming feedstock
requires the optimum location:
(i) Near interstate and/or connecting highway
(ii) With spur on main rail line (UP, BSNF, CTX etc.)
(iii) At minimum on short line
(iv) Access to water (river or ocean) ideal
(v) On the hydrogen pipeline (Gulf and So. Cal.) for RD
(vi) Co-locate with chemical plant with excess H2 for RD.
2. Other issues include:
(i) Water consumption from production
(ii) Environmental impact on community
(iii) Impact on local roads/infrastructure
(iv) Air, water and soil impacts (if any)
3. Plant at right an ideal location on water,
rail and near Interstate to receive
feedstocks, plus within the market served. 18
1. BD Capacity %¹ & Pops. For Leading StatesTexas : 15% 412MMgy 27m pops.
Iowa : 12 321 3
Missouri : 8 221 6
Illinois : 6 180 13
California : 5 126 39
Arkansas : 4 115 3
Indiana : 4 110 7
Washington : 4 110 7
Mississippi : 3 104 3
Pennsylvania : 3 92 12
2. Cumulative Productive Capacity by Size:<10MMgy : 67 plants 250MMgy 47%
10-20 : 24 348 17
20-30 : 16 450 11
30-40 : 6 220 4
40-50 : 8 380 5
50-60 : 8 472 5⁴
> 60 : 6 617 4
143 plants 2.737bgy 2. Currently adding 250 gals. Of additional capacity
3. RD Capacity by Size:Kansas : 1 plant 5MMgy
Vermont 1 5 (under const.)
California 1 40 (AltAir) BioJet
Louisiana 1 150 (REG)
Louisiana: 1 267 (Valero)²
5 467
Locations by state of biodiesel and renewable diesel plants
Notes: 1. As a % of total U.S. and Canadian output at 2.737bgy
3. Actual total production for 2017 (source: NBB)4. By comparison, 64% of ethanol plants are over 50MMgy
19
1. Production Management at Plant
Each 50MMgy plant has one Operator, two Utility
personnel and one Chemist per each 12 hour shift,
approx. 350 days per year (allowing 15 days for
annual maintenance)
Day shift will have three utility personnel for loading
finished fuel and unloading feedstock, plus support
maintenance as required. Plant accounting clerk will
track usage of chemicals and manage tracking for
incoming and outgoing product. One or two
chemists for day shift.
Day shift calls for one Operator and 3 utility and maintenance personnel plus 1 or 2 chemists
2. Production Management Remote
All plants will have a remote Operator on duty for each
12 hour shift, to oversee correct functioning of equipment
and maintain integrity of the finished fuel. Multiple plants
will require one remote operator to monitor approx. 3 to
5 plants. Issues are reported in real time.One person per 12 hour shift to remotely monitor from 3 to 5 plants remotely 24/7
20
1. Production Management at Plant
Day shift calls for one Operator and 3 utility and maintenance personnel plus 1 or 2 chemists
2. EPA Moderated Transaction System (EMTS)
(i) Quality Assurance Program (QAP)
(ii) Q-RIN Verification Program
(iii) Third-Party Engineering Reviews
(iv) Custom Audit Protocols
(v) Foreign Feedstock Monitoring
(vi) LCFS Carbon Intensity Verification (Calif.)
(vii) RFS Compliance Audits (Federal)
(i) RINs generated and transferred in EMTS.
(ii) RINS do not exist outside EMTS.
(iii) Allows EPA to monitor the RIN universe
(v) All RINs are tagged in EMTS as:
(a) Q RIN
(b) QAP Verified
(c) Unverified Legacy (status not recorded in EMTS)
21
PROGRAM SUBSIDY DESCRIPTION VALUE
Renewable Fuel Standard (RFS)
Refiners (Obligated Parties)Required to Blend in X% (Renewable
Volume Obligation) Into Diesel Fuel Pool. Each gallon is numbered and called a
Renewable Identification Number (RIN) and designated by type of fuel (Biodiesel
and RHD called D4)
If Refiner does not want to blend, can buy on the market a RIN from others that have proof (from
their blending report to EPA).
For RHD: a D4 RIN x 1.7¹ = $1.83/gal.(As a “drop-in” fuel, no blending required. Producer may retain the RIN to transact)For Biodiesel a D4 RIN x 1.5¹ = $1.62/gal.(Blender must blend then transact RIN)
IRS Producer Credit
Technically a subsidy, (no taxes need be owed). Currently program suspended until
Congress acts to extend. Expected to eliminate imported biodiesel and RHD and
extended 3 years retroactive for 2017
$1.00/gallon (plus $0.10 for small producers at <15mmgy)
Calif. Low Carbon Fuel Standard (LCFS)
Program requires all biodiesel and RHD meet certain carbon intensity (CI) values determined by total carbon inputs from well to wheel and by type of feedsotck
used. A computation of CI to the market value of the LCFS credit determines the
value of a credit per gallon of fuel.
CI Value(Examples)
LCFS Credit Per Ton
Credit Value² Per Gallon
83 (soy)53 (soy &YG)28 (Tallow)12 (UCO)
$95
$0.180.640.841.04
OregonSame as California but retains its own
market value for LCFS credit/ton80 (soy) $55 $0.10
Washington To start in 2018 22
1. How RINs Work
(i) The physical fuel and the RIN are separated
when the fuel is sold and blended for::
(a) Transportation fuel,
(b) Heating oil
(c) Jet fuel.
(ii) Once the RIN is separated from the fuel,
it can be traded in the secondary market.
(iii) Obligated Parties purchase RINs from the
market and retire the RINs to fulfill their
Renewable Volume Obligation (RVO)
(iv) Producers of biodiesel can keep RINs but
must add to next gallon of fuel (2.5 Rins)
(v) Producers of Renewable Diesel may keep RINs
as no blending required (it is a drop-in fuel).Continued . . .
23
1. RIN Codes
Day shift calls for one Operator and 3 utility and maintenance personnel plus 1 or 2 chemists
Continued from last slide
RIN D Code Fuel TypeGHG Reduction Requirement
Fuel
D7 Cellulosic Diesel 60%
Cellulosic biodiesel,
Renewable diesel,
Naphtha,
Renewable
CNG/LNG etc
D4Biomass-based Diesel
50%Biodiesel,
Renewable Diesel
D5 Advanced Biofuels 50%
Sugarcane ethanol,
Renewable heating
oil, biogas etc.
D6 Renewable fuel 20% or more Corn ethanol
Continued . . .24
1. RIN Code Equivalence ValuesContinued from last slide
Continued . . .
Fuel (1 gal. or equivalent)
Equivalent Value RIN Volume
Ethanol (baseline) 1.0 1.0
Biodiesel 1.5 1.5
Renewable Diesel (D4) 1.7 1.7
Non-ester Renewable Diesel (D7)
1.7 1.7
Biogas (77k btus) 1 1
2. Example
A gallon of biodiesel gets a D4 Rin code and an equivalence value
of 1.5. RINs on the market are going for $1.20/gal;
therefore: $1.20 x 1.5 = $1.80/gal. RIN final value.
25
1. Program works similarly to EPA’s Renewable Fuel Standard
2. Operates as an adjunct to RFS
3. Strict feedstock to fuel pathways must be met (same as RFS)
4. What is different is each fuel pathway is scored for its carbon
intensity (CI) value by Producer (all will be slightly different).
Examples for biodiesel and renewable diesel based CI score:
(i) Soy based : 82
(ii) Corn oil based : 28
(iii) Animal fat oils : 18
(iv) Used Cooking oil : 12
5. A market-based value of fuel per metric ton is basis for
determining the per gal. value by using a dedicated on-line
calculator and entering the per m/t and CI score. E.g.: The published
value per m/t = $134, enter. CI value 28, enter = $1.16 value per gal.
Oregon and Washington haveadopted their versions of the LCFS
26
1st generation feedstocks used in U.S. and Canada for both biodiesel and renewable diesel
1. Feedstock can be bought on long-term
contract plans from producers and brokers
both nationally and internationally; however,
price will typically be tied to an index
2. Feedstock will typically be purchased from
vendors and brokers nationally and
increasingly internationally . . . at minimum
regionally (as is the case for soy and corn)
3. New sources of feedstock are being
approved by the EPA as was brown and trap
grease and more recently jatropha oil.
4. Estimates of feedstock according to the U.S. Energy
Information Service, see next slide.27
Note: This section needs more research to validate numbers
1. Soy Oil : 2.86b gallons per year <2% FFA
2. Yellow Grease : 636m <15%
3. Canola oil : 274m <15%
4. Corn Oil : 422m <15%
5. Trap Grease : 20m (about 450m <100%recoverable
but going to
landfills)
6. Other Oils 500m <15 to 30%(both domestic and imported)
7. Woody Biomass Almost unlimited and
sustainable (2nd Gen only).
Black Gold processes it for use by biodiesel and renewable diesel producers that can handle up to 100% FFA feedstock
28
# Feature Benefits Comments
1 No catalyst required• 20% lower chemical costs
• No contamination of
by-products
No other existing biodiesel technology can match
2 To 100% FFA feedstocks• Use high FFA feedstocks
and blends with any
percentage of other oils
High FFA feedstocks can cost 30% to 50% less than corn oil, animal fats and virgin oils
3 95%+ Glycerin Purity• Provides 4 to 5 times the
price for glycerin versus
catalyst-based systems
No need for additional processing equipment since no contamination as no catalyst is used
4 Clear Biodiesel Produced• Biodiesel is clear, no
color from feedstock
Clear product easier to sell. 85% of biodiesel is tinted (red, yellow, dark green, gray etc.)
5 Biodiesel Distillation• Superior quality
• Meets ASTM cold soak spec
• Saves energy by not chilling
Biodiesel distillation produces a far more marketable product
6 Less than 1.5% Yield loss• Regardless of FFA or
feedstock type
Jatrodiesel’s unique “Supercritical” technology enables more product to be processed
7 Highly Efficient Processor• Cuts processing cost by 1/3rd
• No soaps or contaminants
generated
Minimal losses in energy. All unconverted product reused.
8 Easier System to Operate
• Easier for operators to learn
system process
• Less equipment means
lower maintenance and
costly downtime
Overall lower personnel costs
29
1. American Ag Fuels, Defiance, OH
2. Middletown Biofuels, Harrisburg, PA
3. Michigan Biodiesel, Bangor, MI
4. Walsh Biofuels, Mauston, WI
5. Mt. Coco Products, Philippines
6. mperial Valley Biodiesel, El Centro, CA
7. Greenlight Biofuels, Princess Anne, MD
8. Western Biodiesel, High Plains, AB, Canada
9. African Energy Initiative, Kampala, Uganda
10. Jatrodiesel, Miamisburg, OH
11. Center Alternatives, Cleveland, OH
12. Vanguard Synfuels, Alexandria, LA
13. Biovantage Fuels, Belvidere, IL
14. Washakie Renewables, UT
15. Greenleaf Biofuels, New Haven, CT
16. United Refining, Warren, PA (Brooklyn New York project)
17. Mid-America Biofuels, North Platte, NE
18. Patriot Ethanol, Annawan, IL
19. Marquis Energy, Hennepin, IL (to start w/financing)
20. Calgren Renewable Fuels, Pixley, CA
30
1. Systems are designed by Jatro Renewables engineers in Dayton, Ohio
31
PROPERTIESTRADITIONAL BIODIESEL
(FAME)
SUPERCRITICAL BIODIESEL
(SUPER™)
ASTM 6751
RENEWABLE
HYDROCARBON DIESEL
ASTM D975
GHG Emissions 60% below baseline¹ 60% below baseline¹ < 80% below baseline¹
CAPEX / OPEX $1.40 | $0.67 $1.50 | $0.47 $2.45 | $0.52
Transportation Truck, rail or barge Truck, rail or barge Plus pipeline
Storage All tanks, above ground All tanks, above ground Same as UL:SD
Engine Compatibility< 20% BD to meet manuf.
warranty
< 20% BD to meet manuf.
warrantySame as ULSD
Cetane About 47 to 51 About 47 to 51 70 to 95
Winter (Cloud Point)Depending on feedstock
blend
-2°C to +8°C
Depending on feedstock
blend
-2°C to +8°C
Not dependent on
feedstock blend:
Low cloud point of -15°C.
Can be adjusted to -40°C
DistributionMax blend to <80%
biodiesel, typically to 2% to
20%
Must be blended to <80%
biodiesel, typically to 2% to
20%
No blending required
Fuel Color Light yellow/ or light red Clear (like water) Clear (like water)
Retail InfrastructureSeparate pumps, tanks if
100%
Separate pumps, tanks if
100%No changes
32
PROPERTIES PETRODIESELBIODIESEL
(SUPER™)RD
Cetane 40-50 47-65 80-95
Energy Density, MJ/kg 43 38 44
Energy Content, BTU/gal 129k 118k 123k
Sulfur <10 ppm <5 ppm <10 ppm
NOx Emission Baseline +10 -10 to 0
Cloud Point, °C -5 -2 to +5 -15
Oxidative Stability Baseline Fair No limit
Cold Flow Properties Baseline Poor Excellent
Lubricity Baseline Excellent Good
Particulates Baseline 33% lower 33% lower
NOx¹ Baseline 5% higher None
CO¹ Baseline 20% lower 24% lower
Hydrocarbons¹ Baseline 27% lower 30% lower
33
PROPERTIES PETRODIESEL BIODIESEL (FAME) RD
Distillation Range OK OK (most not distilled)Less lubrication degradationChange oil less
Cetane Baseline Good startingFast cold startsLower tailpipe pollutionLess engine noise
Oxidation Stability Baseline< 3 hrs w/o additive (test)6 month shelf life
No oxygen = no limitLess injector fouling
Cloud Point, °C -5-2 to +5 (Poor)Typically not used neat
-15
Oxidative Stability Baseline Fair No limit
Cold Flow Properties, °CTo -40 w/additive
To ~-20 w/additive Refined to -40
Ash Miniscule amt. < 0.005% by vol.Almost zero.Excellent catalyst performanceExtended particulate filter life
Chemical Composition Hydrocarbon Methyl esterExtended oil lifeLess engine oil thickening
Solubility of Water Low MediumVery low risk of water pick-up in logistics including storage
34
PROPERTIES PETRODIESEL BIODIESEL (FAME) RHD
Fuel Consumption Baseline Same as baseline2% to 4% higher than Petrodiesel3% to 5% lower vs. neat FAME
Engine Power Baseline The sameThe same except in older engines due to lower heating value of RHD
Engine Oil Dilution and Deterioration
BaselineDue to higher boiling temps in distillation, some of the fuel will contaminate engine
About the same as baseline
Injector Fouling Baseline(Typically not used neat) and would follow additive prescription for petrodiesel
Use typical detergents as petrodiesel especially for corrosion issues
Auxiliary Heaters BaselineHeaters as per petrodieselrequirement for up to ~20% biodiesel blends.
No cold weather issues, but if heater used, follow same regimen as petrodiesel
Optimizing Engines for RHD Baseline Optimization minimal
With advanced fuel injection timing, fuel consumption can be lowered 5% to 8%. Also, with retarded timing, NOx can be reduced but decreases fuel economy; however, optimizing Emissions Gas Recirculation will mitigate that issue.
35
FUEL TYPEFUEL STANDARD:
(U.S., CAN., & EU)FEEDSTOCK REFINING PROCESS USAGE FORM
#2 Diesel (ULSD)
• U.S. ASTM D975• CAN/CGSB 3.517• EU, EN 15940
• Petro distillate rich in paraffinic hydrocarbons
from crude oil
• Fractional distillation between 500C and 520C
• At atmospheric• 100%
Biodiesel(methyl ester)
• U.S. ASTM D6751• CAN/CGSB 3.20• EU, EN 14214
• Derived from biomass:Soy, Canola/Rapeseed,
Sunflower etc. 40% usage
• Animal fats, used cooking oil, trap grease represent 60% of usage
• Traditional: Transesterification &
esterification w/catalyst• JatroDiesel Supercritical:
Transesterification w/o catalyst
• Enzymatic hydrolysis
• To 80% with
petrodiesel¹ but typically
blended to ~20% with
petrodiesel²
RenewableDrop-In Diesel (or RHD⁴)
• U.S. ASTM D975• CAN/CGSB 3.20• EU, EN 15940
• Derived from biomass (seed oils & animal fats)
• Hydrotreating (similar to how crude oil is refined into #2 ULSD diesel fuel)
• 100%³ (or blended any
ratio w/diesel)
36
PureMethanol
Methanol Recovery from Biodiesel By Distillation
Washing w/Centrifuge
FinishedBiodiesel
(ASTM 6751)
A
AMethanol Recovery from Glycerin
by “flash” method
Separation of Glycerine from
Biodiesel
Typically 95% to
97% Pure GlycerinTank
SUPER-
CRITICALTransesterif-
ication Reactor
Up to 100% FFA
Biodiesel Distillation
Unreacted
feedstock
returned to
FilteredFeedstock
37
FeedstockTank 604
CoalescingFilter
ToDisposal
Recycled Diesel From
Tank 612
Heat Exchanger
Inlet Feed Heater Reactor
HydrogenQuenchInjection
Fuel Gas From Fuel Gas
Header 300H
HydrogenFrom Storage Tank 304 and
Compressor 308
To Heat Exchanger 204 and Separator
208
Separator
FeedstockTank 604
38
Feedstock filtered to remove water and
particulates
Heat feedstock for Reactor treatment
Mix heated feedstock with Hydrogen
Treat feedstock and hydrogen mixture in Reactor
using hydrotreating catalyst
Cool product from the Reactor
Separate vapors from liquids in separator
Distill product in the distillation column
Remove RHD from distillation and store for
distribution
RHD Finished
Product Tank
By-Products:
- Naphtha LPG
- LPG Vapor,
- Purge Gas
39