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Third Transatlantic Joint Workshop

Biondoil Biorefinery “Business” Case

Hennie Zirkzee

Jos Kraaijeveld

March 19th 2018

Organized by: The Dutch Ministry of Economic Affairs and Climate (EZK)

and the United States Department of Agriculture (USDA)

Hosted by the Port of Amsterdam

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Setting the scene … The Netherlands and Europe

Back to “Zero” g CO2

emission in 2050:

Paris Agreement: Temperature increase reduction below 2 degrees C in 2050

The Netherlands: 49% CO2 emission reduction by 2030

European Energy directive RED II: 27% Renewable fuels in the EU by 2030

CLOSING THE CARBON CYCLE

• Need projects built in 2030 with CO2 avoidance from 80 to >100% • (Advanced) Biofuels first then chemicals • CCS and (more) CCU How can Bio Refinery projects help??

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Biondoil BioRefinery approach

Biondoil Vision: 1. Build a “Bio-Refinery plant”, starting with a Cellulosic Ethanol base configuration (80.000 ton/yr),

PHASE 1 in 2021 2. Develop and scale up disruptive technologies and implement “demo-plants” to prove commercially

valuable product-market combinations (Fuels and Chemicals) 3. Develop disruptive business concepts utilizing Bio Refinery and multi feedstock Solid Oxide Fuel Cells

Inspiration

New: SOFC for electric vehicles (instead of PEM)

‘Nissan unveils world's first Solid-Oxide Fuel Cell vehicle’ on ethanol

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Location O&M

Supply chain

Cellulosic Ethanol

Sewage sludge

Products

Lignin

100.000 mTon Green houses CCU utilization

Co-siting concept • Lignin to Uniper • Uniper Steam • Uniper Cooling Water • Demin water back • Uniper Electricity

Biondoil: Cellulosic Ethanol base configuration Phase I

80.000 mTon

Woodchips (wet) 575.000 mTon

±20.000.000 Nm3

± 260.000 mTon

±5.000 mTon

“Industrial proven” Technology

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Total investment 185,500,000 EUR

Timing investments 2018-2020 Period

Feedstock (full capacity)

Biomass (30% moisture content) 571,500 Mton p.a.

Production (full capacity)

Lignin Carbon dioxide

270,300 95,400

Mton p.a. Mton p.a.

2G ethanol 80,500 tonnes p.a.

BC period

Start production 2020 year

Full production capacity 2022 year

End production 2040 year

Finance

Interest rate debt 5,0% p.a.

Yearly indexation 2,0% p.a.

Production ramp-up from start-up: Year 1 30%, Year 2 80%, Year 3 100%

2G bio-ethanol production hours per year: 8000

FTE Human Resources: 60

Principal debt is amortising equally over a 10 year period

Discount rate: 12.5%

Financing ratio, Debt- Equity: 70-30

Price per ton woodchips: 80 Euro

Price per ton Ethanol: 1,100 Euro

Price per ton lignin: 120 Euro

Price per ton CO2 : 10 Euro

The model has been set up using input from Beta Renewables and SE&C.

Cellulosic Ethanol base configuration Phase I: Financial scenario

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Net present value @ 12,5% 29.600.000 EUR PV

Break even year 2034 year

Internal rate of return 15,0% %

Return on equity 12,4% %

OUTCOMES

Monte Carlo Simulation variables

Investment ISBL and BOP 135.300.000,00 180.500.000,00

Sales price 2G EtOH 800,00 1.400,00

Sales price lignin 50,00 140,00

Sales price CO2 10,00 40,00

Costs enzymes 80,00 120,00

Costs yeast 10,00 25,00

Price biomass for 2G EtOH 60,00 120,00

NPV

IRR curve Monte Carlo

Cellulosic Ethanol base configuration Phase I: Financial scenario

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Discount rate of 12,5% is reflection of technological and other risks

• Industrial proven technology -> License model, • Technology provider should have a sufficient P&L and balance sheet • Long term contracts for supply of feedstock and off take of products (5-10 years)

• Cellulosic sales price of ± 1100 euro/ton is roughly twice is much is 1 G ethanol price • Current business case not “intrinsic economical” • RED II is critical to achieve ±1100 euro/ton pricing structure

Critical Risks

What to do to make an “intrinsic economical business case”??

• Valorize lignin ±270.000 ton/yr (115 Euro/ton “internal transfer price”) • Valorize CO2 ±100.000 ton/yr (10 euro/ton “internal transfer price”) • Develop add-on technologies for that

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Business Case

Risk mitigation

Cellulosic Ethanol base configuration Phase I: Financial scenario reflections

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BioRefinery: Lignin valorization

The Attis Organosolv process, recovers the lignin in a very unique Liquid / Melt Flowing Form

25% Attis Lignin in Polypropylene

• Applications in Plastics, Adhesives, Fuels • Bioliquid phase (butylacetate, furfural etc) • Purified lignin (price 600-800 euro/ton)

Attis Technology potential

• Extra ±4500 ton cellulosic ethanol • Extra ±4500 ton CO2 production • Extra Bio-liquid stream with value • Upgraded lignin stream (100.000M ton) • Capex 60 Mio Euro for ± 800 ton/day unit • In principle allows you to lower cellulosic ethanol price to ±700 euro/ton • And thus …. Intrinsic sound economics

But…

• TRL level 6-7, demo plant 2 ton/day • 2 US-based Attis plants 200 ton/day in place in 2021 • Need significant marketing effort in EU to sell 100.000 ton/yr of lignin

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BioRefinery: valorization of Lignin and sewage sludge (TCR®)

Thermal Catalytic Reforming platform (TCR®)

Char in hard coal quality

•Dry, storable and transportable

•Hard coal quality in fixed carbon content

•Free of volatile organics

Char

Clean, hydrogen rich syngas

•Tar and dust free

•Free of aromatics

•Up to 50% hydrogen content, green hydrogen

•Syngas suitable for gas fermenations to produce bio-chemicals

Syngas Bio blendstock

Engine quality oil • No tar or wax • High heating

value • Low acidity • Blends with

regular fuels • Hydrotreated

oils meet EN590 spec for transport fuels

Soil Conditioning

Technical

Applications

Engines

Fuels

Power

Heat

Chemical precursors

H2

Hydrogen

www.tosynfuel.eu

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4 x 1.5 t/h

61000 t/year 70% DM

48000 t/year 90% DM

16 MJ/kg

1.7 MW thermal (from process heat

recovery*)

Bio -oil** Biochar*** Syngas

3300 ton/year (33MJ/kg)

19000 ton/year (15 MJ/kg)

9700 ton/year (25 MJ/kg)

TCR® Reactor

Hydrogen Feedstock, dry

Dryer

Feedstock, fresh

H2

Power

Heat

750 ton/year

2.8 MW (8000 h)

Up to 2.6 MW (8000 h)

BioRefinery: Lignin valorization (TCR®) Illustrative scenario TCR® Plant

Capacity (dry) 6 t/h

Power capacity 4 MW el.

Investment Approx. 25 Mio Eur

Result 1000 EUR/a

Ø EBITDA 4605

Ø Depreciation 2388

Ø EBIT 2217

Return on equity

10 years Approx. 18%

20 years Approx. 23%

Assumptions:

• Biochar @ 200 EUR/t (29 EUR/MWh)

• Bio oil @ 500 EUR/t

• Power @ 114 EUR/MWh

• Heat @ 30 EUR/MWh (50% utilization)

• Hydrogen @ 3,5 EUR/kg

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BioRefinery: CO2 valorization utilizing CCU

Windmills on/off shore

Biondoil Bio Refinery

SOEC

Fischer-Tropsch

Bio-CO2

H2

E-fuels Bio-Wax

Some Considerations • Installed capacity 20 MWel • FT-products generation ±7.500 Mton • Bio- CO2 consumption ± 17.000 Mton • CO2 transfer price: 10 Euro/Mton • Capex co-SOEC + FT: 40 Mio Euro • Price indication E-fuels and Bio-Wax: ± 2000 Euro/Mton

Electricity price major cost contribution

flex

Power to gas

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Biondoil: Disruptive business concept: Emission Free Fueling of Electric Vehicles

Biondoil Bio Refinery

Injection Molded SOFC with intrinsic CO2 capture

Cellulosic Ethanol TCR® Bio-oils Attis Bio-liquid E-fuels

Tank station CO2-filled Cartridge

CO2 - Cartridge

CO2 - Cartridge

CO2 -filled Cartridge

3D stack model

CO2-circularity

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1. Direct use of liquid bio-fuels (instead of hydrogen)

3. Ultra-fast charging without loading the power grid

4. Highest electrical efficiency

5. SOFC’s emit pure CO2

6. This offers intrinsic ‘energy free CO2 capture

7. Efficient recovery of CO2 possible via solid carrier

8. Reuse of the (Bio) CO2 for CCU fuel production

2. High energy density of the liquid fuel

New Injection molding SOFC Technology Enables

Free thermal expansion

interconnect

cathode

anode

electrolyte

Option for CO2 neutrality

Unique selling points of non-sinter bonding:

• Inexpensive ceramic mass production injection molding routes • Existing factory infrastructure available in NL • Reliable and safe operation • Robust design offers optimal capability for mobile use

Former Philips

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Biondoil: Closing the Bio Carbon Cycle

Phase I 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2035Basic configuration BioRefineryFEED TrajectoryEngineeringProduct&Market assesment FIDBuilding&Construction plantProduction 30% 80% 100%

Phase II 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2035Attis Technology additionTechnology development/ scale upProduct&Market assesment FIDBuilding&Construction plantProduction 30% 80% 100%

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2035TCR Technology additionTechnology development/ scale upProduct&Market assesment FIDBuilding&Construction plantProduction 30% 80% 100%

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2035E-fuels and other FT-productsTechnology development/ scale upProduct&Market assesment FIDBuilding&Construction plantProduction 30% 80% 100% 100%

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2035Emission Free fueling of cars (SOFC)Prototyping Demonstration in automotive applicationsRegulatory/certification etc…Product&Market assesmentImplementation supply chain, operational infrastructure

FID

Commercialization 30% 80% 100% 100% 15

Biondoil BioRefinery projected time-line

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QUESTIONS????

THANK YOU FOR YOUR ATTENTION

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Working principle and internal reforming of HELP-SOFC

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