Roll-out of smaller scale gas-to- liquids: current commercialisation and future approach Dr Philipp Stratmann ABLC, Washington DC, March 2017
Roll-out of smaller scale gas-to-liquids: current commercialisationand future approach
Dr Philipp StratmannABLC, Washington DC, March 2017
• Commercial center in Houston, Texas; technicalcenters near Columbus, Ohio and Oxford, UK
• Fischer-Tropsch technology:— Demonstrated via 26,000 hours at pilot/
demonstration scale and 1.3 million hourslaboratory testing
— Commercial reactors and catalystmanufactured
— Strong plant economics underpinned bytechnology performance
— Strong team: experienced in commissioningand starting-up GTL plants: technical,operational and commercial
• First product produced at commercial referenceplant
• IP: exhaustive and proven patent protection,successfully defended
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Introduction to VelocysA market leader in smaller scale GTL and BTL
ENVIA Energy GTL plant
Chemical conversion of gas to refined products
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Gas-to-liquids (GTL) and biomass-to-liquids (BTL) process
Reforming Fischer-Tropsch
Stranded naturalgas, landfill gas,associated gas
Syngascarbon
monoxide+ hydrogen
Raw products
Premium fuelsand speciality
products (diesel,jet fuel, waxes)
Hydro-processing
Biomass, wasteGasification
Products arerenewable
if using landfill gas orbiomass as feedstock
Large-scale economics at smaller scalesSmaller is bringing GTL to the mainstream
Velocys Fischer-Tropsch reactor
Conventional Fischer-Tropsch reactor
Note: Reactor capacities differ considerably
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ENVIA Energy’s GTL plantStatus
• Can be viewed herehttp://www.velocys.com/media_videopage15_ENVIA_OKC.php
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Video taken around the Oklahoma City site
Oklahoma City
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ENVIA Energy’s gas-to-liquids plant
First Fischer-Tropsch product at ENVIA, Oklahoma City
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A high-performing professional collaboration
Highly experienced and motivated commissioningand start-up team
David Pummell with the ENVIA Plant Manager andsenior Velocys staff on site
A wealth of experience from the development of ourtechnology
A team of experienced people from our pilot plant anddemonstration sites
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Velocys Fischer-Tropsch reactors in situENVIA Energy
• Delivered a safe and successful start-up ofthe Fischer-Tropsch modules andupstream units
• First Fischer-Tropsch productsuccessfully produced
• Fuels expected to qualify under RFSgenerating tradeable RIN credits
• Landmark event for Velocys’ technologyand its commercial reference plant
• The operations team is now focusing onramping up production to full capacity
• Key stakeholders visiting the plant
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ENVIA Energy Oklahoma City projectStatus
Other projectsAnd future approach
• 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
offtake3 million gal/yr of jet fuel from the plant
• Supported by US Department of Defenseand US Department of Energy— $4.1m phase 1 grant for engineering— $70m construction grant
Third part project - Red Rock BiofuelsUS DoD sponsored BTL
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Drive scale and pace to market
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Four strategic themes
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Strategicalliances –
world classpartnerships
Businessmodel – takecontrol butremain “capital-light”
Leveragedifferentiatedcapabilities
The offer –“one stop
shop”
• 70 years’ experience in the design,engineering & fabrication of modularprocessing facilities for oil & gas and manyother industries
• World-leading clients
• Fabrication facilities include3 plants in China (800,000 m2 of floorspace and 3,500 staff)
• Combines competitive Chinese labourcosts & Japanese quality &management systems
• Jointly targeting plant-wide reductionsin CAPEX, OPEX and footprint for BTLand GTL plants
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MorimatsuModularisation and fabrication partner
Globally optimized plant, 700 bpd reactors, 0.8 acres footprint
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FT island modular plant design for a 5,000 bpd plant
• Leading provider of steamreforming gasification systems
• Proven technology— 10,000+ hours at
demonstration plant inNorth Carolina
— Syngas shown to besuitable as input to the FTprocess
• Selected for and deployed atvarious commercial projectsin North America— Norampac, a division of
Cascades Paper, inTrenton, Ontario
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TRIGasification partner
Norampac TRI gasification system
• Engineering design already underway for a BTLplant
• 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 productofftake
• 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
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Rapid progress to delivering BTL offerKey steps to a financeable solution
Velocys’ skid-mounted GTLpilot plant in Ohio
TRI’s demonstration facility inNorth Carolina
Summary
• Fischer-Tropsch process now economic at smaller scales— Scales consistent with biomass supply chain constraints
• Converts low value feedstock into high quality, high valuerenewable 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
Smaller scale GTL and BTL using FT is now a reality
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Dr Philipp StratmannBusiness Development [email protected]
Houston office+1 713 275 5840
www.velocys.com
Thank you
®
Appendix
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• FT route to jet fuel and diesel from biomasscan reduce lifecycle greenhouse gasemissions by ~70%
• Meets industry specifications— Jet: ASTM D7566 approved at up to
50% in blend with conventionalkerosene
— EN 15940 for synthetic diesel
• Reduces air pollution— Jet <0.5% aromatics, <15ppm sulfur— Substantial emissions improvements
• Local supply chain benefits stakeholdersand reduces fuel transport
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FT fuel delivers environmental benefitsChemically similar to conventional jet and diesel, with advantages
Conventional diesel (right) vs FT diesel (left)