Velocys ppt140813_ENFL-ACS_2014

Commercializing an advanced Fischer-Tropsch synthesis technologyENFL: Fischer-Tropsch Chemistry & Catalysis248th ACS National Meeting

Soumitra Deshmukh,Stephen LeViness, Heinz Robota, Matthew Davis, Thomas Yuschak, Amanda MillerAugust 13, 2014

• Leader in smaller scale gas-to-liquids technology— 15 years and >$300 million invested in product development— Exhaustive global patent protection (>7,500 granted GTL patent

claims)

• World class partners offering a complete GTL solution— Haldor Topsøe, Ventech, Hatch, Toyo, Mourik, SGS, Shiloh

• Commercial roll-out underway

• Well capitalized with strong resources— Commercial center in Houston, Texas; technical centers near

Columbus, Ohio and Oxford, UK— Permanent pilot plant in operation

Leader in smaller scale GTL

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Velocys

Commercial FT reactor

FT reactor core

Velocys technology

• Microchannel reactor— Enhanced heat and mass transfer rates— Close coupling of exothermic reaction with

steam generation• Superior catalysts

— High activity and selectivity• Principles of design and operation

— Particulate catalyst in small channels— Cross-flow with syngas downflow

• Strengths— Isothermal behavior – thermally stable— Extremely robust to upsets— Strong economy of mass manufacturing— Installed spares relatively cheap— High on-stream factor— Extremely high volumetric productivity— Ease of modularization

Compact, robust, efficient and economic

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Process performance

• 1 process channel— No catalyst dilution— Coolant channels with hot oil

circulation

• During scale-up, number of channelsincreases, size does not#

• Validate commercialization requirements— Stability— Regenerability— Catalyst life— Predictive models— Tolerance to feed contaminants,

upsets

Single channel reactorLaboratory testing tool

CO+H2+inerts

Productcollection

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#Deshmukh et.al., Ind. Eng. Chem. Res., 49(21), pp10883, 2010

Stable long term operation at high per pass conversionOverall CO conversion >90%

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Excellent regenerability>90% activity of fresh catalyst after 13 regenerations

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Long lifeDeactivation rate unchanged after >2.5 years of operation

LeViness, Deshmukh et.al., Top. Catal., 57, pp518, 2014

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Pilot plant and training facility

• Integrated GTL pilot plant in Ohio

• Designed to provide— Performance data to support

differing client designs— Product for client studies— Permanent training facility for

plant operators

• Platform for— Developing our own field support

staff— Demonstrating future product

generations

Add pilot plant photo

Pilot plant

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Pilot plant resultsStable operation at target conditions

Shutdown forsteam systemrepairs

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• Designed to cover wide rangeof FT operations

• Independent variation ofparameters: e.g. Pco, PH2,

• >60 data points— Close monitoring of outlet

H2:CO ratio and COconversion

— Product sample at eachpoint

• Assessment of ageing andregeneration on processresponse

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Process model developmentDesign of experiments study

Inlet pressure: 200 – 450 psigInerts: 10% – 70%Contact time: 150 – 500 msFeed H2:CO ratio: 1.4 – 4.5Temperatures: 175 – 235 °C

Operating results from field demonstration unitAgree with model developed from laboratory data

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Path to commercialization

• Organic Matrix Combustion (OMX)— Novel synthesis method— Yields highly active and stable

catalysts

• FT catalyst— Activity depends on small sizes

of Co3O4 particles— Stability depends on a narrow

particle size distribution

• OMX yields an optimum averageCo3O4 particle size yielding astable, high activity FT catalystupon activation

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Organic matrix combustion methodologyA key factor in the Velocys catalyst synthetic approach

1

10

100

0 10 20 30 40 50

TOF

x 10

00/s

Co diameter nm

den Breejen JACS 2009 131 p. 719735 bar 210 CLogdberg J. Catalysis 274 2010 p.84 20 bar 210 CVelocys 25 bar 205 C

The industrially produced Velocys catalyst exhibits an apparent TOF3-6 times higher than typical Co FT catalysts at 5° C lowertemperature – Co surface area determined by H2 adsorption

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Activity is gained through both loading density and ahigher intrinsic reaction rate

Lower TOF based oncontraction of oxidecrystallites from XRD

Higher TOF based onH2 chemisorptioncapacity and extent ofreduction – particlediameter estimate toolarge based on supportpore diameter

High, stable reactor performance requires uniformpressure drop (and hence flow) from channel-to-channel

• Multiple factors affect pressure drop:— Nominal size— Gross size distribution— Packing density— Packing uniformity— Detailed fines content

• Successful charging requires:— Controlled particle characteristics— Generation of a uniform particle

size distribution for the wholecharge

• Charging technology and catalystcharge characteristics must bematched, controlled, and standardized

~ 0.1-10 mm

Microchannel

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Controlling flow uniformity requires care in preparing andcharging catalyst

• A standardized charge wasspecifically created to yielduniform packing

• Grab samples were collectedfrom by scooping from differentportions of the original lot

• Standardized samples yieldflow characterized byexperimental variability

• Randomly selected chargesyield widely varying flowcharacteristics

• Standard methods ofmeasuring particle sizedistributions can be inadequateto fully distinguish differences

0.0

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0 500 1000 1500 2000 2500 3000 3500

Mea

sure

d In

let P

ress

ure,

psi

g

Gas Flow, sccm (ref. 0C & 1 atm)

Standardized 10648-70-AStandardized 10648-71-BStandardized 10648-72-AGrab 1Grab 2

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Full composition specification is established using a“formulation optimization” experimental design

Support Co wt% Prom. 1 Prom. 2 Mod. 1 X%CO %C5+ sel %CH4 sel. Deact. rate(-%/day)

Type C 1.00 2.0 1.0 1.08 70.4 86.6 8 -0.96Type A 0.77 1.0 1.0 1.00 29.8 84.9 8 -0.86Type B 0.88 1.5 1.5 1.15 59.5 84.4 8.9 -0.49Type C 1.00 1.0 1.0 1.00 65.9 86.2 8.2 -0.72Type C 0.88 1.5 1.5 0.85 52.5 85.5 7.9 -0.81Type B 1.00 1.0 1.0 1.00 63.3 85.4 8.7 -0.75Type C 0.88 0.5 1.5 1.15 57.9 87 7.2 -0.09Type A 1.23 1.0 1.0 1.00 79 84.6 10.1 -0.35Type B 1.12 1.5 1.5 0.85 75.3 84.3 10.1 -0.38Type B 0.88 1.5 0.5 0.85 52.2 85.4 8.4 -0.26Type A 1.00 0.0 1.0 1.00 59.3 87.3 6.9 -0.59Type C 0.88 0.5 0.5 0.85 54.7 87.3 7.1 -0.53Type A 1.00 1.0 1.0 1.00 61.6 87.6 7.1 -0.61Type C 1.12 0.5 1.5 0.85 70.6 85 9 0.04Type C 1.12 1.5 1.5 1.15 70.3 83.9 9.9 0.56Type B 0.88 0.5 0.5 1.15 55 85.9 8.1 -0.12Type A 1.00 1.0 1.0 0.69 59.6 87.9 6.7 -1.29Type B 0.88 0.5 1.5 0.85 58.6 86.5 7.7 -0.62Type A 1.00 1.0 2.0 1.00 61.5 87.6 7.1 -0.75Type B 1.00 1.0 1.0 1.00 67.2 85.4 9 -0.51Type B 1.12 0.5 0.5 0.85 74.9 85 9.4 -0.45Type C 1.12 0.5 0.5 1.15 70.4 84.3 9.8 0.1Type B 1.12 0.5 1.5 1.15 71.8 83.1 10.7 -0.16Type A 1.00 2.0 1.0 1.00 56 87.1 7.4 -0.66Type C 0.88 1.5 0.5 1.15 56.2 85.6 7.7 -0.06Type A 1.00 1.0 1.0 1.31 63.7 87.2 7.3 -0.49Type A 1.00 1.0 0.0 1.00 50.6 87 7.2 -0.83Type A 1.00 1.0 1.0 1.00 56.5 86.4 7.6 -0.74Type C 1.00 1.0 1.0 1.00 62.2 86.4 7.9 -0.5Type C 1.12 1.5 0.5 0.85 69.3 85.3 9.1 -0.56Type B 1.12 1.5 0.5 1.15 67.9 83 11 -0.25Type A 1.00 2.0 1.0 1.08 53.3 87.5 7.2 -0.88Type C 0.77 1.0 1.0 1.00 69.9 87 7.8 -0.56

Determine process response to eachcomposition variable

Identify interactions among variables

Verify that “limiting compositions” fallwell within allowable performancethresholds

Validate measurement methods forcomposition and physicalcharacteristics

‘1’ represents nominal value

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Limits on manufacturing-related foreign elements also setusing experimental design

Impurity level (ppm)Test

results

Catalyst N 1 2 3 4 5 6 7 XCO

1 0 0 2000 2000 1000 0 0 7.22 0 2000 0 2000 2000 1000 0 18.43 1000 1000 1000 1000 1000 1000 1000 8.04 0 0 0 2000 0 2000 2000 10.45 2000 2000 2000 0 2000 0 0 6.96 0 2000 2000 1000 0 0 2000 6.47 2000 0 2000 0 0 1000 2000 4.88 2000 0 0 1000 2000 2000 0 9.99 2000 2000 0 2000 0 0 1000 9.0

10 2000 1000 2000 2000 0 2000 0 5.411 1000 1000 1000 1000 1000 1000 1000 7.712 1000 0 0 0 0 0 0 24.413 2000 2000 0 0 1000 2000 2000 10.314 1000 2000 2000 2000 2000 2000 2000 6.315 0 0 2000 0 2000 2000 1000 5.916 2000 0 1000 2000 2000 0 2000 6.017 0 1000 0 0 2000 0 2000 26.218 0 2000 1000 0 0 2000 0 7.3

N Impurity added(ppm)

AbsoluteX%CO

decrease1 4 6 2 Exp. Mod.

1 100 1.5 0.42 100 100 6.2 6.03 170 4.8 5.44 170 100 6.3 9.65 200 3.0 0.66 200 200 12.4 10.07 340 9.5 12.08 340 200 12.5 13.89 200 3.2 2.710 400 6.4 6.611 259 400 6.2 6.012 400 7.8 6.0

R² = 0.8429

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Exp.

dec

reas

e in

con

vers

ion

(abs

%)

Predicted decrease in conversion (abs %)

A two part process:Initial screeningA refined evaluation(the most damaging impurities)

Supply chain development

Prototype process developmentEngage process technologyleadersFocus on quality & repeatabilityProcess validation & qualificationTest protocol development

Integrator & sub-supplierselectionFinalist evaluation:

- Capacity planning- Quality control planning- Risk planning- Cost planning

Partner qualificationEngage world class suppliersPrototype approvalDesign for manufacturingMass production feasibilityTest protocol refinement

Mass productionEquipment InstallSupplier auditsMass proCertification

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• FT reactor designed to ASME, boiler and pressure vesselcode, section VIII, division 1

• FEED review— Design criteria, material selection, operating

conditions, fabrication process• FMEA

— Reactor manufacture, FT process impact, equipmentoperation, corrosion/life

• Reactor testing— Weld inspection, temperature cycles, pressure cycles,

reactor autopsy

Mechanical integrity testing

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• Commercial FT reactor manufactured— Optimized final design for manufacture

at volume— Demonstrated and finalized service,

manufacture & quality protocols

• Reactor approved as fit for deploymentby independent third party

• Catalyst service partner trained andcertified— Catalyst loaded in commercial reactor

Ready for deploymentSupply chain

Commercial reactor

Catalyst loading

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• Shiloh Industries— N. America’s leading supplier of

engineered metal products toautomotive industry

— Working together since 2012— Strategic investment in Velocys

• Production cell is replicable and scalable— Several $ million in manufacturing

resources— Dedicated team of engineers

• Initial manufacturing capacity supports10,000 bpd/yr of orders; plans in place togrow to 40,000 bpd/yr

Cost-effective quality mass productionManufacturing partnership

Reactor manufacture

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• Project description— First GTL plant that will use a combination of

renewable biogas and natural gas

• Enabling factors— Low cost landfill gas as feedstock— RIN credits under the Renewable Fuel

Standards— WM’s existing experience of operating GTL

technology– Pilot plant on site since 2010

• Status— Final investment decision taken July 2014— Detailed engineering and procurement

underway— Entered into all major contracts

– EPC, land lease, gas purchase and product offtake

Oklahoma City (East Oak) project

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JV with Waste Management, NRG Energy and Ventech

Existing GTL pilot plant atEast Oak

• Project description— 2,800 bpd GTL plant in Ashtabula, Ohio,

USA

• Enabling factors— Integration with substantial existing

infrastructure gives reduction in capex– Waste water treatment; power plant;

cooling water pumping; air separation; gaspipeline; rail and barge; local customers forby-products

• Status— Velocys acquired the Ashtabula GTL project,

and its project developer, in June 2014— Initial engineering completed by Ventech

(EPC), Haldor Topsoe & Velocys25

Ashtabula GTL

Ashtabula GTL

GreenSky London

• Project description

— Commercial 2,500 bpd waste-biomass-to-jetfuel plant being developed by Solena Fuelsin Development with British Airways

• Enabling factors— Negative feedstock cost (tipping fees)— Regulatory incentives for aviation biofuels— Support of a major air-line that takes its

environmental performance very seriously• Status

— Pre-Front End Engineering completed— Site selection announced April 2014

Picture courtesy of British Airways

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Red Rock Biofuels

• Project description

– 1,100 bpd forestry waste to liquids plant inOregon, USA

• Enabling factors– Supported by US DoD and US DoE

• Received $4.1m phase 1 grant forengineering

• 1 of 4 projects eligible to apply for $70mconstruction grant

• Status– FEED study complete and submitted with

phase 2 proposal– US DOD targeting late August for phase 2

grant decision

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• Velocys: leader in advanced FT technology

• Superior catalyst and reactor design leading to exceptionalprocess performance

• Leveraging on key partnerships for deployment of our technology

• Financial commitment secured for construction of first commercialplant. Detailed engineering and procurement underway. Ordersreceived for reactors and catalyst.

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Summary