Velocys ppt141028_Gasification_Technologies_Council

Smaller scale Fischer-Tropsch enablesbiomass-to-liquids

Michael WilliamsGasification Technologies Council, 28th October 2014

• Leader in smaller scale gas-to-liquids and biomass-to-liquids technology— 15 years and >$300 million invested in technology development— Exhaustive global patent protection (>900 patents world-wide)

• Commercial roll-out underway

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

Ohio and Oxford, UK— Permanent pilot plant in operation

The company at the forefront of smaller scale GTL and BTLVelocys

GTL JV

Solena GreenSky London

Red RockBiofuels

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The Fischer-Tropsch (FT) process for biomass-to-liquids (BTL)

Gasification

Velocys microchannel reactor andsuper-active catalyst

FischerTropsch

Syngascarbon

monoxide+ hydrogen

SyncrudeSyntheticcrude oil

Cleansynthetic

fuelsdiesel, naphtha,

jet fuel etc.

Hydro-processing

Biomass,waste, coal

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• “Drop in” replacement for petroleum derivedfuels, lubricants and other products

• Zero (or near zero) sulfur content— Can be used as a blend stock for ultra-low

sulfur fuels

• High cetane— Meets military specification for aviation fuel— FT diesel powered every 24 hour Le Mans

winner since 2006

• Lower emissions— Lower SOx, NOx and particulates compared to

petroleum fuels— Quieter engine operation

Velocys Fischer-Tropsch fuelsChoose from a range of high value products

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Mega-scale GTL and CTL projectsThe historical face of Fischer-Tropsch

Conventional Fischer-Tropsch reactor

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Think SmallerTM

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Think SmallerPlant scaled to match MSW or biomass collection logistics

Conventional FT reactor

Velocys commercial FT reactor

Nothing wasted• Smaller scale facilities makes the most of

the resources available

Better options• Smaller, low cost plants need less gas or

biomass to be profitable— Enabling FT to be used for biomass

and MSW projects— FT plants can now be sized to match

the scale of collection logistics— A plant of 1,000 barrels per day

output (~200,000 tons of waste peryear) could be economic, dependingon local conditions, including taxregimes

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Our design leverages standardization,unlocking opportunities that were previouslyuneconomic

• Our design is specific for smaller scaleplants, not just a scaled down large plant

• Our components are standardized,reducing costs

• Our strategic partnerships allow us todeliver at volume

Smaller scale…Improves the economics

Reactor manufacture

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Our plants are modular, so they are easier toship and easier to install

• Velocys reactors are significantly smallerand lighter than conventional technology

• 70% of a plant can be factory-built beforeinstallation

• Modular components fit in standardcontainers for ease of shipping

• Building is fast, we’ve reduced the risk ofdelays, and plants can even be integratedwith existing facilities

Smaller scale…Works anywhere

1,400 bpd FT process unitdesigned by Ventech Engineers90 ft L x 46 ft H x ~40 ft W

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Velocys unlocks more businessby working flexibly – allowingcompanies to capitalize on moreopportunities

• Smaller projects means moreopportunities, accessible tomore companies

• We have strong partnershipswith key players throughoutthe value chain

• Velocys can support allaspects of projectdevelopment and execution

Smaller scale…Works for anyone

Ashtabula GTL

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Commercial roll-out

Commercial plant under construction

• First of its kind in North America

• Fully funded by JV between— Waste Management (Fortune 500)— NRG Energy (Fortune 500)— Ventech Engineers— Velocys

• Construction underway— Permits received— Major contracts signed— Mechanical completion end of 2015— Full operation Q1-Q2 2016

Oklahoma City, USA

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• Velocys selected by Solena Fuels as FTsupplier for commercial 2,500 bpd waste-biomass-to-liquids plant

• GreenSky London plant in partnership withBritish Airways

• Competitive selection process aftertechnology evaluation advised by Fluor

• BA to provide off-take for jet fuel• Pre-Front End Engineering completed• Site selection announced April 2014

— Site of former Coryton oil refinery inThurrock, Essex, UK

Picture courtesy of British Airways

GreenSky LondonRenewable jet fuel in London

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• Velocys selected for 1,100 bpdbiomass-to-liquids (BTL) plant— Located in Oregon, USA— Using forestry waste feedstock

• Supported by US Department of Defenseand US Department of Energy— Received $4.1m phase 1 grant for

engineering in July 2013— FEED study complete— Received a $70m construction grant in

September 2014

• Targeting final investment decision H1 2015

• Southwest Airlines to offtake 3 million gal/yrof aviation fuel from the plant

Red Rock BiofuelsUS DoD sponsored BTL

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Supply chain

• Commercial FT reactor manufactured— Optimized final design for manufacture

at volume

• Catalyst service partner Mourik trainedand certified— Catalyst loaded in May 2013— Declared as “fit for commercial

application”

• Reactor approved as fit for deploymentby independent third party

• Manufacturing ramping up for massproduction

Ready for commercial deployment

Commercial reactor

Catalyst loading

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Summary

• Fischer-Tropsch process now economic at smaller scales

• Converts low value input into high value liquid fuels & specialties

• Velocys technology is ideally suited to BTL applications as wellas GTL— Can be built economically at the appropriate scale— Meets the technical demands

• Velocys technology field demonstrated in a BTL environment

• Selected for two commercial BTL projects— As well as two commercial GTL projects

• Construction of first commercial plant has begun

• Supply chain ready for commercial deployment

Smaller scale BTL using FT is now a reality

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Michael WilliamsVP, Strategy & [email protected]

Houston office+1 713 275 5840

www.velocys.com

Thank you

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Think Smaller

Appendix

High performance reactor architectureMicrochannels intensify chemical processes

Velocys FT reactorConventional FT reactor

Microchannel

Enhancedmass and

heattransfer

~ 10-30 mm

~ 0.1-10 mm

Shell-and-tube

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• Principles of design and operation— Particulate catalyst in small channels— High catalyst volume fraction— Syngas downflow, products exit bottom— Coolant water / steam generation— Heat removal by steam generation

• Strengths— High per pass conversion (74-75%)— Isothermal behavior – thermally stable— Robust to upsets— Strong economy of mass manufacturing— Accommodates high activity catalysts— Installed spares relatively cheap— High on-stream factor— Tail gas recycle only to achieve high conversion— Extremely high volumetric productivity— Ease of modularization

Compact, robust, efficient and economicVelocys microchannel technology

Commercial FT reactor

FT reactor core

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Pilot plant and training facility

• Integrated GTL pilot plant at the VelocysOhio, USA site

• 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

Supporting sales and delivery

Add pilot plant photo

Pilot plant

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BTL field demonstration - Güssing accomplishments

• FT technology demonstrated in Güssing, Austria

• Demonstration conducted 2010 -2011 on gasified wood

• Demonstrated that the high performance FT helps overcomesome challenges of BTL

— High conversion of expensivesyngas

— Robust to gasifier upsets– 193 syngas interrupts, 32 upsets and 36 shutdowns

• Steady performance— Excellent temperature control— Robust to changes in H2/CO ratio

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