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Cellulosic Hydrocarbon Fuels from IH2 TechnologyAlan Del Paggio, CRI Catalyst Company, 910 Louisiana, Houston, TX 77002
WBM Presentation
13 March 2013
Disclaimer
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considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 13 March 2013
Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking
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from those stated, implied or inferred from the forward-looking statements contained in this presentation.
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Main Points
• Introduce Gas Technology Institute (GTI) and CRI Catalyst (CRI)
• What is the IH2 process?
• Why does IH2 technology transform renewable fuels processing?
• IH2 process economics
• Where is IH2 in the commercial deployment?
3/20/2013 3
Gas Technology Institute
• Not-for-profit gas research & services organization with a 70+ year history
• Capabilities that span the natural gas value chain
• Current focus in diversified energy solutions
• Facilities – 18 acre Chicago campus
– 28 specialized labs totaling 200,000 ft2
• Staff of 250
• >1,200 patents
• >750 products commercialized with partners
3/20/2013 4
Pilot Scale Gasification Campus Energy & Environmental Technology Center
Offices& Labs
CRI is the partner for IH2
CRI Catalyst Company
• Catalyst Business with 50+ year history
• Houston based global business – Houston
– London
– Singapore
• Research Facilities – Amsterdam
– Bangalore
– Houston
• Manufacturing Facilities – US (3)
– Germany
– Belgium
3/20/2013 5
What is the IH2 Process?
• The IH2 process uses catalysts, hydrogen and heat to cost-effectively
convert a wide variety of biomass directly into high purity hydrocarbon
―drop in‖ fuels (i.e. B100) and/or high quality blend stock (e.g. >B50)
3/20/2013 6
• The IH2 process takes only minutes to convert biomass to
hydrocarbons—Nature requires millions of years…
• The IH2 process can be integrated into existing refinery, mill, ethanol
plant, agricultural, or recycling operations to create higher value from
biomass than afforded by heat and electrical power sales (NA basis)
• The IH2 process is NOT Gasification/Fischer Tropsch
2) Fluidized Bed
Proprietary Catalyst
Renewable H2
340-470C<500psig
1) Feed ConditioningSizing , Drying & Feeding
1st Stage 2nd Stage
3) Fixed Bed
Proprietary Catalyst
Renewable H2
<500psig
HDO‘d Vapors
4) SMR C1-C3 GasRenewable H2
Process
3/20/2013 7
IH2 Process (Simplified, Stand Alone)
Distilled Hydrocarbon
Hi Pressure Steam
Clean Water
Fertilizer
BioChar
Biogenic CO2
Crop Residue
City Waste
Wood/ForestResidue
Energy Crops
Algae
Gasoline, Jet and Diesel Range Hydrocarbon Fuels / Blend Stocks
Feed
Products
Transformative Differentiators
• Fungible, high purity hydrocarbon fuel and/or blend stock products- Gasoline produced from wood passes ASTM specs (i.e. B100) for economy & mid octane
- Diesel produced from wood too aromatic, currently ~B50, target is to get to B100
- Diesel produced from whole algae likely B100 (in testing)
• Nearly carbon neutral*
• Feedstock flexible with high product yields (67-157 US gallons/US ton)
• Attractive economics (~ $2/gal for 500 dry MT/day wood feed USGC pricing)- Low capex (only 4 major process steps, low pressure, non corrosive)- Low opex (predominated by feedstock)
• Exothermic process with 72% - 86% bioenergy recovery (wood)
• No engineering miracles required! Ready for market
*>94% GHG reduction per Professor David Shonnard at MTU: http://services.lib.mtu.edu/etd/THESIS/2012/ChemicalEng/maleche/thesis.pdf
3/20/2013 8
3/20/2013 9
Evolution of IH2 Technology
Hydrocarbon
Water
Total Liquid Product
2nd Gen Catalyst Lab Scale
Total Liquid Product
1st Gen Catalyst Lab Scale
Hydrocarbon
Water
Gas/Jet/Diesel Product
3rd Gen Catalyst Lab Scale
4Q09 ―B5‖ Quality 3Q10 ―B25‖ Quality 2Q12 ―B60+‖ Quality
“GOAL“
Drop In
Stand
Alone
―B100‖
Gasoline Product
3rd Gen Catalyst
Pilot Plant Scale
Jet/Diesel Product
3rd Gen Catalyst
Pilot Plant Scale
Advanced catalysts improve product, Wood Example
Water Product
3rd Gen Catalyst
Pilot Plant Scale
Process & Catalyst
R&D Continues
4.7
17.7
6.8
44.0
36.6
Feed
1st Stage HP/ 2nd Stage HC
Fractionation
HMU
Utilities & Contingency @ 35%
Installed Equipment Costs $112.6mln
112.6
5.711.7
102.7
Installed Equipment Costs
Land/Develop
Permits & S/U
Standard Project Add-In's**
Total Capital Investment $232.8mln
91.31
7.8
2.14
17.3
5.9
29.6
Wood $71.97/dry ton
Other Op Costs: Catalyst, Disposal, etc.
Fixed Cost
Depreciation
Avg Income Tax
Avg ROI
Operating Costs Total $1.60/gal*
*Includes $0.093/gal coproduct credit
** Prorated Expense (10%), H O & Construction (20%), Field
Expense (10%), Working Capital (10%) , Project Contingency (30%)
• Stand Alone/Green Field (US Gulf Coast basis)
• 2000mt/d wood (50% moisture fed, dried to 10% moisture at 1st stage)
• 60% financed at 8% interest, overall 10% IRR
• Feed Stock ~55% of Operating Cost
• No subsidies, tax, RIN or carbon credits included!
• Minimum Fuel Selling Price – $0.423/L (2007) $0.465/L (2012)
• Refinery Synergy w/Refinery H2 Supply
• Reduces Capital Cost ~44.0MM$
• Estimated MFSP $0.359/L (2007) $0.394/L (2012)
• NREL TIC validated by KBR pointing to higher HMU cost
• Opex validated by prospective clients
IH2 Process Economics (USGC) NREL 06/11 Basis
3/20/2013 10
http://www.osti.gov/bridge/servlets/purl/1059031/1059031.pdf
** Prorated Expense (10%), H O & Construction (20%), Field
Expense (10%), Working Capital (10%) , Project Contingency (30%)
• Stand Alone/Green Field (US Gulf Coast basis)
• 2000mt/d wood (50% moisture fed, dried to 10% moisture at 1st stage)
• 60% financed at 8% interest, overall 10% IRR
• Feed Stock ~55% of Operating Cost
• No subsidies, tax, RIN or carbon credits included!
• Minimum Fuel Selling Price – $0.433/L (2007) $0.476/L (2012)
• Refinery Synergy w/Refinery H2 Supply
• Reduces TIC ~55.0MM$
• Estimated MFSP $0.359/L (2007) $0.394/L (2012)
• KBR FEL-3 underway
• Opex validated by prospective clients
IH2 Process Economics (USGC) NREL 09/12 Basis
3/20/2013 11
127.5
6.313.2
116.5
Installed Equipment Costs
Land/Develop
Permits & S/U
Standard Project Add-In's**
Total Capital Investment $263mln
91.31
7.8
2.14
17.3
5.9
29.6
Wood $71.97/dry ton
Other Op Costs: Catalyst, Disposal, etc.
Fixed Cost
Depreciation
Avg Income Tax
Avg ROI
Operating Costs Total $1.64/gal*
*Includes $0.1884/gal coproduct credit
4.7
17.7
4.0
55.0
2.8
2.8
40.5
Feed
1st Stage/2nd Stage
Fractionation
HMU
Ammonium Sulfate
Absorption/Stripping
Utilities & Contingency @ 35%
Installed Equipment Costs $127.5mln
• Bench Scale
– Since 02/2009 @ 0.5kg/hr
• Pilot Scale
– Since 02/2012 @ 50kg/d
– Confirmed bench scale results
– Producing fuels for EPA Registration
– Producing fuels for ASTM Qualification
– Gasoline ex wood is B100
• Pre Commercial Scale
– BDEP for 5mt/d cellulose done
– 1st demonstration license awarded 12/2012, more expected in Q1 2013
• Commercial Scale
– KBR is CRI‘s exclusive basic engineering partner for commercial units
– FEED 500 & 1000mt/d wood (FEL-2 complete, FEL-3 underway)
– Target Q1 2014 for full scale commercial deployment
IH2 Technology Deployment
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Commercial Timeline, Current Status
3/20/2013 13
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Process
Variables and
Semi-
Continuous
Operation
Lab ScaleDemo Scale Units Only (11 units)
(Brownfield Construction; Date Basic Engineering Starts)Full
Commercial
Construction
Basic/Detailed
Engineering
Construct 50kg/d
Pilot Plant
Receive Unit
Pilot Scale
Continuous Pilot
Plant Operation
Shake Down
Wood, 5-1000mt/d
Crop Residues, 5-10mt/d
Micro Algae, 5mt/d
Mixed Paper/OCC/Urban Wood, 5mt/d
FE
L-3
Com
ple
te 5m
t/d
FE
L-2
Com
ple
te 500m
t/d
FE
L-2
Com
ple
te 1000m
t/d
Today
FE
L-2
Underw
ay
5m
t/d
FE
ED
Set to
begin
5m
t/d
Executive Summary
The IH2 technology is
– a cost-effective process developed by GTI with US Dept of Energy
co-funding and CRI proprietary catalysts that converts biomass
directly to hydrocarbon fuels and/or high volume blend stocks
– self-sufficient and self-sustaining with little unsustainable impact on
the surrounding environment needing only transport in/out of the site
– feedstock agnostic, able to utilize a broad range of biomass
– NOT gasification/Fischer-Tropsch
– nearly carbon-neutral (LCA >94% GHG* reduction)
– currently in FEED (FEL-2/-3) for multiple feed demonstrations
– available exclusively from CRI Catalyst Company
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