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Confidential
Direct Coal Hydrogenation
Oct 2018
0
Confidential
Background
• Riverview Energy Corporation is a developer of Direct Coal Hydrogenation (DCH) projects in the United States.
• Riverview’s first project will be a 22,000 bpd refinery located in Spencer County, Indiana. This facility will use the Veba Combi-Cracking (VCC).
• The VCC technology was originally developed by Veba Oel and was the recipient of the Nobel prize in chemistry in 1911.
• VCC is based on a hydrogenation process developed and perfected by Friedrich Bergius (known as the Bergius Process).
• It is a simple, once-through process for direct conversion of coal to valuable liquid products. The process does not require combustion or gasification making it more efficient and cost effective.
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Confidential
Riverview Energy – VCC Direct Coal Hydrogenation Technology
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Membrane
Membrane Purge
Coal Recycle Gas Compressor
Mill/Dryer
1st Stg.
Hot 2nd
Stg.
Off Gases
Oil Solvent
Reactor Separator Reactor
Gas
Sulfur etc.
Cleaning
Cold Separator
Heater
Vacuum Tower
Fractionator
C4-
Naphtha
H2
Make-Up Compressor
Heater
Heater
Residue
Vacuum Gas Oil
Diesel
Fractionator Bottoms
Source: KBR
Confidential
Riverview Energy – Preliminary Plot Plan
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CLIENTAPPCHKBYREVISION DESCRIPTIONREV DATEISSUE
ISSUE FOR INFORMATIONA RN SAL
PLOT PLAN FOR PERMITTING BASIS
DIRECT COAL HYDROGENATION (DCH) PLANTDALE, INDIANA
REVSHEETDOCUMENT NO.JOB NO.CLASS
BH102
CLIENT CLIENT
KBR KBR
IFI
THIS DOCUMENT CONTAINS INFORMATION WHICH IS PROPRIETARY TO KELLOGG BROWN & ROOT LLC. THIS INFORMATION IS TO BE HELD IN CONFIDENCE. NO DISCLOSURE OR OTHER USE OF THIS DOCUMENT, EXCEPT AS NECESSARY FOR OPERATION OF THE PLANT WITHIN OWNER’S CONTRACTUAL OBLIGATIONS, IS TO BE MADE WITHOUT PRIOR WRITTEN CONSENT OF KELLOGG BROWN & ROOT LLC.
EXPORT COMPLIANCETHIS DOCUMENT CONTAINS TECHNICAL INFORMATION THAT IS SUBJECT TO U.S. EXPORT CONTROL REGULATIONS. IT MAY NOT BE EXPORTED OR RE-EXPORTED EXCEPT AS AUTHORIZED UNDER APPLICABLE U.S. EXPORT CONTROL REQUIREMENTS.
RIVERVIEW ENERGY CORPORATION
RIVERVIEW ENERGY CORPORATION
8JAN18
ISSUE FOR INFORMATIONB RN SALIFI 9JAN18
A
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B C D E F G H I J K L M
A B C D E F G H I J K L M
NOTES:
Print date 1/8/2018 9:11 PM DWG # H102-0000-EV-DWG-EV2-XXXX_Plot Plan_RevB.vsd Page # 1
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LEGEND:
H102-0000-EV-DWG-EV2-0100
AIR DISPERSION MODELING PLOT PLAN
UTM EASTING AND NORTHING COORDINATES
PRODUCT TANKS
COAL PILES
HYDROGEN PLANT 1
VCC UNIT
SULFUR RECOVERY UNIT
CONTROL ROOMLAB
RESIDUE LOADING
ADDITIVES UNLOADING
WAREHOUSE
WATER TREATMENT
COOLING TOWER
BOILER PACKAGE
LPG STORAGE
AMMONIA STORAGE & LOADING
SUBSTATION
RESIDUE TANKS
RESIDUE SOLIDIFICATION UNIT
VGO STORAGE TANKS
LOADING FLARE SULFUR FLARE
ADMIN BUILDING
MAINTENANCE SHOPS BUILDING
PRODUCT LOADING
WASTEWATER TREATMENT
HP & LP FLARES
HYDROGEN PLANT 2
N-S RAIL SPURENTRY / EXIT
SULFUR LOADING
PLANT BOUNDARYFENCELINE
N-S RAIL LINE PATHTHRU PROPERTY
N-S RAIL SPURENTRY / EXIT
ENTRY GATE 1
ENTRY GATE 2
COAL UNLOADING
ROADWAYS
Confidential
Proven Technology
Ø There are currently 3 plants operating at scale today in the world using VCC technology:
Ø China – two plants in operation using a variety of feedstock including coal, resid and Coal Tar. Both plants operate at scale (20,000 bpd).
Ø Russia – One plant operating at scale (50,000bpd).
Ø Testing facility in China – to test feedstocks and yields.
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Confidential
The Opportunity
Ø The United States consumes close to 20 million barrels of liquid fuels per day and is projected to sustain or increase this demand over the next 25 years. The United States spends roughly $333 billion annually importing oil, close to 2% of its Gross Domestic Product
Ø Riverview Energy Corporation is developing a state of the art Direct Coal Hydrogenation facility in southwest Indiana, with the capacity to convert large quantities of locally sourced high sulfur coal and natural gas, into clean liquid fuels and other valuable by-products. A transformative project that will create jobs (2000 construction, 230 long term operations, 1500 ancillary jobs in various industries such as mining and hospitality) and a long-term, clean use of America’s most abundant energy resources; Coal and Natural Gas
Ø The Facility will use 1.6 million metric tons of coal annually.
Ø The Facility will produce approximately 4.8 million barrels of ultra low sulfur diesel and 2.5 million barrels of naphtha annually. These are both highly attractive products, with significant demand in the United States and internationally. The plant will be the first of many in our strategy to reposition the mining infrastructure in U.S. coal producing regions, away from power generation and into liquid fuel production
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Confidential
The Opportunity
Ø The project exploits the substantial gap between the prices of crude oil, on the one hand, and coal and natural gas on the other. The spread between oil and coal has averaged $12.44 per million Btus over the past ten years. Forecasts by the Energy Information Agency (“EIA”) imply that this trend will continue, with the spread
widening to more than $17 per million Btus by 2030
Ø The project will promote U.S. energy security by displacing imported petroleum-derived gasoline and diesel
fuels. This will result in economic gains for US consumers and potential national security benefits. The project is firmly aligned with the Federal Government's economic policies and directives to stimulate job creation in the energy sector
ØDCH is a truly clean coal technology. It removes high-sulfur coal from the power-gen stream and upgrades it into a Clean Air Choice Fuel
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Confidential
Clean Air Choice Fuel® - ULSD
ØULSD is considered a Clean Air Choice® fuel by the American Lung Association http://www.cleanairchoice.org/fuels/ulsd.cfm
ØWhy is Ultra Low Sulfur a Clean Air Choice®?ULSD fuel enables the use of cleaner technology diesel engines and vehicles with advanced emissions control devices, resulting in significantly improved air quality. Annual emission reductions will be equivalent to removing the pollution from more than 90 percent of today's trucks and buses, when the current heavy-duty vehicle fleet has been completely replaced in 2030.
Ø According to the EPA, Testing by engine manufacturers and regulatory bodies have found the use of emissions control devices in conjunction with ULSD can reduce the exhaust output of ozone precursors and particulate matter to near-zero levels.[2]
Ø According to EPA estimates, with the implementation of the new fuel standards for diesel, nitrogen oxide emissions have been reduced by 2.6 million tons each year and soot or particulate matter will be reduced by 110,000 tons a year.
Ø By 2020, new shipping regulations will require Ultra Low Sulfur fuels be used in all ships navigating the highseas (seas greater than 12 miles from shore).
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Confidential
Riverview Energy – Product Characteristics
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• Naphtha Diesel
Clean Coal Refining Corporation Job No. D855 VCC CTL Feasibility Study Rev 0 Clinton, Indiana
Technology is Proprietary Information of Kellogg Brown & Root LLC TO BE KEPT CONFIDENTIAL
Feasibility Study
1-9
1.6 Product Properties and Product Specifications The fractionator design has been set to minimize the production of the naphtha stream while maximizing the diesel production to the limits of the diesel flash point.
1.6.1 NAPHTHA PRODUCT
The naphtha product is a stream that contains desirable components to the petrochemical market. The stream does not meet all properties to be sold as gasoline as octane specifications cannot be met. The expected properties of the naphtha product stream are listed in the following table:
Table 1.6.1 – Expected Naphtha Product Properties
Specification Flow (Sm3/hr) 48.7 Flow (BPSD) 7353 Sulfur Content, ppmw <1 Specific gravity 0.745 RVP, bar(a) (psia) 0.50 (7.3 psia) H2S content Copper strip negative ASTM D86 LV%
IBP, 1%C 26 5%, C 57 10% C 63 30% C 78 50% C 94 70% C 112 90% C 130 95% C 135 FBP - 98%C 147
Clean Coal Refining Corporation Job No. D855 VCC CTL Feasibility Study Rev 0 Clinton, Indiana
Technology is Proprietary Information of Kellogg Brown & Root LLC TO BE KEPT CONFIDENTIAL
Feasibility Study
1-10
1.6.2 DIESEL PRODUCT
The diesel product is a low sulfur stream that meets US ultra low sulfur diesel specifications. The expected properties of the diesel product stream are listed in the following table:
Table 1.6.2 – Expected Diesel Product Properties
Specification Flow (Sm3/hr) 94.26 Flow (BPSD) 14369 Sulfur Content, ppmw (ASTM D-5453) <10 Specific gravity (ASTM D-1298) 0.848 Cetane Index (ASTM D-4737) 45 Flash point C (ASTM D-93 PM) 56 Water content, ppmw (ASTM D-1744) <100 H2S content Copper strip
negative ASTM D86 LV%
IBP 1%,C 156 5%, C 190 10% C 201 30% C 232 50% C 255 70% C 278 90% C 320 95% C 334 FBP - 98% C 349
Clean Coal Refining Corporation Job No. D855 VCC CTL Feasibility Study Rev 0 Clinton, Indiana
Technology is Proprietary Information of Kellogg Brown & Root LLC TO BE KEPT CONFIDENTIAL
Feasibility Study
1-9
1.6 Product Properties and Product Specifications The fractionator design has been set to minimize the production of the naphtha stream while maximizing the diesel production to the limits of the diesel flash point.
1.6.1 NAPHTHA PRODUCT
The naphtha product is a stream that contains desirable components to the petrochemical market. The stream does not meet all properties to be sold as gasoline as octane specifications cannot be met. The expected properties of the naphtha product stream are listed in the following table:
Table 1.6.1 – Expected Naphtha Product Properties
Specification Flow (Sm3/hr) 48.7 Flow (BPSD) 7353 Sulfur Content, ppmw <1 Specific gravity 0.745 RVP, bar(a) (psia) 0.50 (7.3 psia) H2S content Copper strip negative ASTM D86 LV%
IBP, 1%C 26 5%, C 57 10% C 63 30% C 78 50% C 94 70% C 112 90% C 130 95% C 135 FBP - 98%C 147
Clean Coal Refining Corporation Job No. D855 VCC CTL Feasibility Study Rev 0 Clinton, Indiana
Technology is Proprietary Information of Kellogg Brown & Root LLC TO BE KEPT CONFIDENTIAL
Feasibility Study
1-10
1.6.2 DIESEL PRODUCT
The diesel product is a low sulfur stream that meets US ultra low sulfur diesel specifications. The expected properties of the diesel product stream are listed in the following table:
Table 1.6.2 – Expected Diesel Product Properties
Specification Flow (Sm3/hr) 94.26 Flow (BPSD) 14369 Sulfur Content, ppmw (ASTM D-5453) <10 Specific gravity (ASTM D-1298) 0.848 Cetane Index (ASTM D-4737) 45 Flash point C (ASTM D-93 PM) 56 Water content, ppmw (ASTM D-1744) <100 H2S content Copper strip
negative ASTM D86 LV%
IBP 1%,C 156 5%, C 190 10% C 201 30% C 232 50% C 255 70% C 278 90% C 320 95% C 334 FBP - 98% C 349
Confidential
Riverview Energy – Other Regulatory Issues
Impact Study • Working with DOE requires impact studies (NEPA review)
Draft EPA Regulations
• In June of 2015 the Environmental Protection Agency released draft regulations designed to reduce CO2 emissions from power generation. These regulations are under review by the new administration
• If implemented, these regulations will make it virtually impossible for new electric power plants to burn coal.
• The DCH Facility will not be a net generator of electricity (as opposed to Fisher-Tropsche-based technologies) and according to IDEM would not be subject to power generation requirements.
• Riverview has not received any indication from KBR or IDEM that these rules will affect the plant.
CO2 Regulation
• There is currently no legislation in effect, or being contemplated, that would subject the DCH Facility to a carbon tax.
• However, our financial advisor has made provision for such a tax in the sensitivity analysis of the financial model.
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Confidential
Riverview Energy – Economics
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$/bbl EBITDA NetIncomeCrudeOil $/bbl $/bbl
30 16.64 -11.0135 21.34 -6.3340 26.05 -1.6445 30.75 1.8850 35.45 4.7755 40.15 7.6660 44.84 10.5565 49.55 13.45707580 63.65 22.13
72.31 56.42 17.68
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30 35 40 45 50 55 60 65 70 75 80
Crude Oil in $/bbl
EBITDA in $/bbl produced
Net Income in $/bbl produced
