uop renewable jet process - non confidential presentation, v1

© 2009 UOP LLC. All rights reserved.

UOP Renewable Jet Process

Non-Confidential Presentation


Non-Confidential Presentation

PTTBangkok, ThailandFebruary 17, 2010

Discussion Topics

Introduction to UOPLegislative and Market DriversThe UOP Renewable Jet ProcessBio-SPK Feasibility/Certification ProgramThe Path to 100% Renewable Jet FuelNext Steps/Project DevelopmentSummaryQ&A

UOP Proprietary

34%

15%36%

15%

• 125,000 employees in more than 100 countries

• A Fortune 100 company –sales of $34.5 billion in 2008

• Global leader in advanced technology products, services and solutions UOP

Technology Company, Financially Strong and Global

Honeywell Corporate Overview

Aerospace

Automation & Control

SpecialtyMaterials

Transportation& Power Systems

UOP Proprietary

• Leading supplier and licensor of processing technology, catalysts, adsorbents, process plants, and technical services to the petroleum refining, petrochemical, and gas processing industries for over 90 years

• UOP Technology Furnishes: 60% of the world’s gasoline; 70% of the world’s modern detergents; 60% of the world’s para-xylene

• ~3000 employees worldwide• ’08 Financials: ~$2 billion sales; • Strong relationships with leading refining and

petrochemical customers worldwide• 70+ processes in 6,000+ units in hydrocarbon

processing industry; 300+ catalysts, adsorbents; 31 of 36 refining technologies in use today created by UOP

UOP Overview

Track Record Of Technology Innovation

2003 National Medal of Technology Recipient

UOP Proprietary

UOP Renewables Vision• Building on UOP technology and expertise• Produce real “drop-in” fuels instead of fuel additives/blends• Leverage existing refining, transportation, energy, biomass handling

infrastructure to lower capital costs, minimize value chain disruptions, and reduce investment risk.

• Focus on path toward second generation feedstocks & chemicals

“Other” Oils: Camelina, Jatropha

Lignocellulosicbiomass,algal oils

Second Generation

Oxygenated Biofuels

BiodieselEthanol

Hydrocarbon Biofuels

JetDiesel Gasoline

FirstGeneration

Natural oils fromvegetables and

greases

Fuel & PowerFuel & Power

Renewable Energy

UOP Proprietary

UOP RE&C Technologies & Capabilities

EcofiningTM

ProcessEcofiningTM

ProcessNatural Oil/Fats

Renewable Jet Process

Renewable Jet Process

Rapid Thermal Processing(Pyrolysis)

Rapid Thermal Processing(Pyrolysis)

Hydrogen

Natural Oil/Fats

Hydrogen

Biomass

Green Diesel

Green Jet

Green Power / Fuel Oil (now)

Green Fuels (2011)

Feed Process Product

Upgrading ProcessUpgrading Process

Sustainable technologies – feedstock flexible & 2nd Gen ready

UOP RE&C CapabilitiesStudies

ScopingRevampBlending / LP

Engineering DesignCatalyst SupplyKey Eqpt SupplyStart-Up ServicesTraining ServicesTechnical Support

Envergent Technologies – UOP/Ensyn JV

Green Jet (if req)

HVO: ‘000’s barrels/day

Green Diesel

UOP Proprietary

Discussion Topics


UOP Proprietary

Aviation Market Outlook

UOP Proprietary

Forecast of Aviation CO2 Emissions

Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA

Using less fuel- Efficient Airplanes- Operational Efficiency

Changing the fuel- Sustainable Biofuels

Low carbon fuels a key part of emissions reductionUOP Proprietary

Jet Fuel Price Trends

UOP Proprietary

EU Emissions Trading Scheme

UOP ConfidentialPresents a golden opportunity for green jet

• Directive 2008/101/EC passed 19th November 2009, amending Directive 2003/87/EC to include aviation activities in the scheme for GHG allowance trading within the Community

• For Aviation– Covers all flights departing and/or arriving

at a Member State airport– Historical aviation emissions for each airline

mean average of emissions from 2004, 2005 & 2006

– From Jan 2012 to Dec 2012, the allowance shall be 97% of the historical average

– From Jan 2013 onwards the allowance shall be 95% of the historical average

– “The emission factor for biomass shall be zero” i.e. biofuels used do not count as emitting any GHG’s

• Non-compliance i.e. failure to submit records, could result in fine of €100/tonne of CO2

• Airlines estimate that ETS could add as much as $18/barrel to fuel cost

Source: ICAO

Inde

x 10

0 =1

990

EU GHG Emissions by Sector as an Index of 1990 Levels180

160

140

120

100

80

601990 1991 1992 1993 1994 1995 1996

Year1997 1998 1999 2000 2001 2002 2003

Int AviationEnergyIndustrial ProcessesAgriculture

WasteTotal (Without LUCF)Transport

300K BPD

Discussion Topics


UOP Proprietary

UOP/ENI Ecofining™ for Green Diesel

• Superior technology that produces ‘drop-in’ diesel, rather than an additive

• Uses existing refining infrastructure, can be transported via pipeline, and can be used in existing automotive fleet

• Two units licensed in Europe with first commercial start-up in 2011

• Excellent blending component, allowing refiners to expand diesel pool by mixing in “bottoms”

Property ULSD Biodiesel Green Diesel

Oxygen, % 0 11 0NOx, % Baseline +10 -10 to 0Specific Gravity 0.84 0.88 0.78Cetane 40-55 50-65 75-90Sulphur, ppm <10 <2 <2Energy Density, MJ/kg 43 38 44Cold Flow Baseline Poor ExcellentOxidative Stability Baseline Poor Baseline

Natural Oil/ Grease

+Hydrogen

Green DieselGreen Diesel + Propane

+ GlycerolBiodiesel (FAME)Biodiesel (FAME)

Natural Oil/ Grease

+ Methanol

Performance Comparison

Process Comparison vs. Biodiesel

High quality ‘drop-in’ biofuel for ground vehiclesUOP Proprietary

Deoxygenating/Isomerization

Deoxygenating/Isomerization

Built on Ecofining Technology

GreenDieselGreenDiesel

GreenJet (SPK)

GreenJet (SPK)

Natural Oil/ Grease

DARPA Project Partners

Deoxygenating/Selective Cracking/

Isomerization

Deoxygenating/Selective Cracking/

Isomerization

Natural Oil/ Grease

UOP Confidential

• Initially a DARPA-funded project to develop process technology to produce military jet fuel (JP-8) from renewable sources

•An extension of UOP EcofiningTM

process, with selective cracking to make jet-range material

•Produces SPK that meets all properties of ASTM D7566

•Certification for blending up to 50% in progress

UOP Renewable Jet Process Overview

Use of Green Jet Fuel

A ‘drop-in’ biofuel for aviation

Natural Oils & Fats

Fully Fungible “drop-in”

Renewable Fuel

50-100% 0-50%


Crude Oil

Oil Refinery

Fossil Jet FuelSynthetic Paraffinic Kerosene

UOP Proprietary

Green Jet Fuel can meet all the key properties of petroleum derived aviation fuel

Flash pointFreeze PointStabilityHeat of Combustion

SPK does not contain aromatics so must be blended with a source of aromatics, such as fossil jet fuel

IdeaGeneration

UOP Stage Gate Process

Enables UOP to guarantee new technology

Stage 5Stage 4Stage 3Stage 2Stage 1

Gate 3 Gate 4 Gate 5Gate 1 Gate 2

• Passed Gate 4 in December 2009• Ready For Process Design #1 in 1Q 2010

IdeaScreening

Post-LaunchReview

Scoping

IdeaValidated

ConceptSelection

ScopingStudiesInitiated

Techno-EconomicEvaluation

InitiatedPending Decision

to Proceed

Develop-ment

First Commercial

UnitProductLaunch

Dev’tApproval

Scale-upApproval

ProductLaunch

ApprovalProject

Selection

UOP Proprietary

Renewable Jet (Bio-SPK) Chemistry

+H3C CH3

+

CH3CH3

CH3H3C CH3 H3CCH3

H3C CH3CH3CH3

Feedstock flexible, but with consistent product properties

H2UOP Catalyst

H2

CO2

H2O +

+ H3C CH3

H3C CH3

CH2+

H2O

CO2 H3C

H3C H3C CH3

CH3H3C

UOP Catalyst Straight Chain Paraffins

Synthetic Paraffinic Kerosene

CH3HO

O

HC

O

O

O

O

O

O

CH3

CH3

CH3

Free Fatty AcidMW=200-300

TriglycerideMW=700-900

Natural oils contain oxygen, have high molecular weight.First reaction removes oxygen – product is diesel range waxy paraffinsSecond reaction “cracks” diesel paraffins to smaller, highly branched moleculesEnd product is same as molecules already present in aviation fuelEnd product is independent of starting oil

FeedstocksRapeseedTallowJatrophaSoybeanAlgal OilsPalm OilCamelinaGreases

UOP Proprietary

Triglyceride Feed Straight Chain Paraffins

SyntheticParaffinicKerosene

Free Fatty Acid

Feedstock flexibleOptimised for 50% SPK yieldMakes valuable hydrocarbon co-products

- Green Diesel- Green Naphtha- Green LPG

Ability to swing anywhere between ‘Max SPK’ and ‘Max Green Diesel’production to meet market demand


Commercial scale, proven technology

Hydrogen

Light Fuels

SPK (Green Jet)

Green Diesel

CO2

Water

Deoxygenation SelectiveHydrocracking

ProductSeparationFeedstocks

RapeseedTallowJatrophaSoybeanAlgal OilsPalm OilCamelinaGreases

UOP Proprietary

Recycle

Renewable Jet Process: Preliminary Yield Estimate

Green Jet Yield, ~ 50 wt% of feed

Primary by-product, Light naphtha & LPG

H2 consumption varies based on feedstock: - For Palm: ~ 4 wt% of feed\

Process being further optimized to have more diesel as a by-product in the max SPK mode

Item Max SPK Mode

Max Diesel Mode

FEED, kg/hr

Palm Oil 39776 39776

Hydrogen 1686 1432

Total 41462 41208

PRODUCTS, kg/hr

Off-Gas 2172 2172

Light Fuels 2414 2204

Naphtha 13703 4865

SPK 19888 0

Diesel 0 28678

Water 3289 3289

Total 41466 41208

Key Properties of SPK

Meets key Jet A-1 and JP-8 Fuel Specifications

SPK is a short chain isomerized paraffin with the following properties:

UOP Proprietary

Property SPK Product Jet A-1 Civil Aviation Spec

JP-8 Military Spec

Freeze Point, °F (°C) -40 to -53 (-40 to -47) -53 °F (-47 °C) Max -53 °F (-47 °C) Max

Flash Point, °F (°C) >100 (>38) 100°F (38°C) Min 100°F (38°C) Min

Specific Gravity @ 60 °F(15°C) ~0.760 0.775 to 0.840 0.775 to 0.840

Sulfur, ppm < 2 0.30 wt% Max 0.30 wt% Max

Aromatics, vol % 0.0 25.0 vol % Max 25.0 vol % Max

Viscosity, -20 deg C, mm2/sec 3.4 max 8.0

Net Heat of Combustion, MJ/kg 44.0 min 42.8

JFTOT Stability @300oCFilter dP, mmHg

Tube Deposit Less Than0.01.0

max 25< 3

UOP has made SPK from jatropha oil, camelina oil, coconut oil, algal oil and tallow feedstocks

Estimated Capital & Operating Costs

Approx Capital Cost for 6500bpsd unit Fully Integrated Unit Greenfield Unit

Total Estimated Inside Battery Limits (ISBL) Erected Cost $ 100,000,000 $ 100,000,000

Total Estimated Outside Battery Limits (OSBL) Erected Cost $20,000,000 $90,000,000

Total Estimated Hydrogen Plant Erected Cost (if required) $0 $35,000,000

Total Estimated Feed Pre-Treatment Unit Erected Cost (if required)

$0 (assume ‘RB’ feed supply) $25,000,000

Grand Total $120,000,000 $250,000,000

Less expensive than Carbon Trading and/or BTL

Variable Cash Cost of Production estimated at $2.80 - $3.00/gal of SPK- Assumes feedstock cost of $2.00 to 2.20/gal- Assumes $70/bbl of crude oil- Excludes subsidies and tax incentives

CCOP is currently 50% higher than fossil jet fuel- If airline needs 20% substitution, total fuel bill rises by 10% (~$0.20/gal)- In line with EU calculation that airline will need to pay $0.20-0.50/gal extra to

purchase carbon credits UOP Proprietary

Alternative Technology Routes

BTL more capital intensive for same product

BTL; demo scale production quantities have been difficult to achieve thus far

- Only CTL and GTL equivalent fuels have been made to meet specs (with potential negative LCA effect from this approach)

BTL plant would be 4 – 8 times more Capex for same capacity compared with UOP Renewable Jet processBTL variable production cost expected to be similar to UOP Renewable Jet Process

SolidBiomass

Gasification

SynGas

TransportFuels

FischerTropsch

Hydro-cracking/Dewaxing

UOP Proprietary

Discussion Topics


UOP Proprietary

The Bio-SPK Program

In 2008-2009, an industry team conducted testing of biofuel (Bio-SPK).The goal was to determine the feasibility of sustainable biofuels at blends up to 50%(v).

•Evaluate & select feedstocks •Identify & pilot processing methods•Conduct fuel property tests

•Flights & Engine Tests

Results published in AIAA-2009-7002: “Sustainable Bio-Derived Synthetic Paraffinic Kerosene (Bio-SPK) Jet Fuel Flights and Engine Tests Program Results”

UOP Proprietary

Properties of SPK for Demo/Certification

Description Jet A-1 Specs

SPK (Jatropha)

SPK (Camelina)

SPK (Jatropha/

Algae)Flash Point, oC Min 38 46.5 42.0 41.0Freezing Point, oC Max -47 -57.0 -63.5 -54.5JFTOT@300oC Filter dP, mmHg max 25 0.0 0.0 0.2

Tube Deposit Less Than < 3 1.0 <1 1.0Net heat of combustion, MJ/kg min 42.8 44.3 44.0 44.2Viscosity, -20 deg C, mm2/sec max 8.0 3.66 3.33 3.51Sulfur, ppm max 3000 <1 <1 <1

Fuel Samples from Different Sources Meet Key Properties

About 6,000 US Gallons of Bio-SPK made for commercial demo flights, commerCertification supply work has uniquely allowed UOP to test the process and the catalyst at large Demo CapacityUS Military accelerating certification program - UOP recently won an unprecedented HRJ-5/8 supply award from DESC for 241,500 gallons product plus optional supply of further 350,000 gallons

First delivery completed on time and on spec for US Navy

UOP Proprietary

Completed Flight Demonstrations

Successful ANZ FlightDemo Date: Dec. 30 2008

Feedstock: Jatropha oil

Feedstock: Jatropha and algal oil

Successful CAL Flight Demo Date: Jan. 7 2009

Feedstock: Camelina, Jatropha and algal oil

Successful JAL Flight Demo Date: Jan. 30 2009

UOP Proprietary

KLM European Test Flight CompletedKLM sponsored its first ever flight with green jet fuel in November 2009HRJ SPK fuel was produced by UOP to D7566 specifications, using Camelina Oil feedstock

http://www.icis.com/blogs/green-chemicals/2009/11/flight-of-the-green-jet-fuel.htmlUOP Proprietary

Engine Testing with Bio SPK (Green Jet)

Extracted from Bio-derived SPK Report being reviewed by ASTM, CRC, IATA, for Certification Vote, expected in May 2010

US Military Supply ContractsAF and Navy are now certifying HRJ through large fuel purchases through the Defense Energy Support Center (DESC)- These fuel purchases will accelerate the military certification of HRJ fuels- 1600 gallons of on-spec HRJ-5 was delivered to the Navy on spec and on time- Additional fuel is being produced to meet the next Navy and Air Force deadlines- HRJ5 and HRJ8 specification limits are more stringent than ASTM D7566 spec- Overall program will further demonstrate the feedstock and process flexibility of

the UOP technology to produce HRJ fuels to meet different specifications

All from 2nd Generation Sustainable FeedstockUOP Proprietary

Line Item

Volume (gallons) Type of Fuel Feedstock Prime Supplier Producer Comment

1 40,000 Navy HRJ-5 Camelina Sustainable Oils UOP

2 150,000 Navy HRJ-5 Camelina Sustainable Oils UOP Optional Amount

3 100,000 Air Force HRJ-8 Camelina Sustainable Oils UOP

4 100,000 Air Force HRJ-8 Tallow UOP (Cargill Feed) UOP Optional Amount

5 100,000 Air Force HRJ-8 Camelina Sustainable Oils UOP

6 100,000 Air Force HRJ-8 Tallow UOP (Cargill Feed) UOP Optional Amount

7 1,600 Navy HRJ-5 Algal Oil Solazyme UOP

ASTM D7566 Issued 1st Sept 09

Body of Spec Applies to Finished Semi-Synthetic FuelAnnex for Each Class of Synthetic Blending ComponentAllow Re-Certification to D1655Annex 1- Hydroprocessed SPK

Includes 50% FT Fuel

Blend Comp’s Criteria and Blend % Limits

Annex 3Other Adv Fuels or Processes

Annex 2Other Adv Fuels or Processes

Annex 150% Hydpross’d SPK Fuel Blends

Fuel Produced to D7566 Can Be Designated as D1655 Fuel

5.1 Materials and Manufacture

D1655

Table 1

D7566Av Turbine Fuel Containing

Syn HC’s

Table 1Blended Fuel Performance

Properties

Slide courtesy of Mark Rumizen, FAA/CAAFI UOP Proprietary

Certification of SPK to 50% targeted for 2010

Certification-Qualification Phase- ASTM D4054 Fuel Qualification Process

OEM Review & Approval

ASTM Balloting Process

Specification Properties

Engine/APU Testing

Fit-For-Purpose Properties

Component/Rig Testing

ASTM Research

Report

ASTM Research

ReportASTMSpecification

Accept

ASTM

Review

& Ballot

Re-EvalAs Required

Reject

ASTMSpecification

Accept

ASTM

Review

& Ballot

Re-EvalAs Required

Reject

ASTM Specification

FRL 6.1 FRLs 6.2 & 6.3 FRL 6.4

FRL 7: Fuel Class Listed in Int’l Fuel Specifications

FRL 4.2

Slide courtesy of Mark Rumizen, FAA/CAAFI UOP Proprietary

Performance and operability testing of Bio-SPK is similar to that of jet fuel

Specific Fuel Consumption: The Bio-SPK blends show an improvement when compared to jet fuel, consistent with the heat of combustion increase.

Lean Blow Out margin: Comparisons were made between typical jet fuel and the Bio-SPK blends, showing equivalent performance.

Engine starts: Under both cold-soaked and warm thermal state conditions, no significant changes were noted in start times or in peak starting exhaust gas temperature.

Light off delay: The time interval between introduction of fuel into the combustor and fuel ignition was compared, with no significant changes noted.

Acceleration response: No significant changes in engine acceleration response time or peak EGT were noted during acceleration tests.

All phases of flight, including In-Flight Restart: No significant changes were noted for the use of the Bio-SPK blends for all 3 aircraft flight tests.

Boroscope Inspections: No significant engine deterioration changes were noted from comparing pre- and post-flight boroscope analyses.

Life Cycle Analysis (LCA)

Kerosene JatrophaGreen

Jet

TallowGreen

Jet

SoyGreen

Jet

0.2

0.4

0.8

1

1.2

1.4

1.6

MJ

(Inpu

t)/M

J (O

utpu

t)

Cumulative Energy Demand

0.6

0

Renewable BiomassRenewable, Water

Non-renewable, Fossil Non-renewable, NuclearRenewable, Wind, Solar, Geothe

Kerosene JatrophaGreen

Jet

TallowGreen

Jet

SoyGreen

Jet

Greenhouse Gases

g C

O2

eq./M

J

8090

70605040302010

0

CultivationFuel ProductionUse

Oil ProductionTransportation

-500

g C

O2

eq./M

J

0

1000

2000

300040005000

LUC Error Bar

CamelinaGreen

JetCamelina

Green Jet

Bio-Jet Fuel Provides Significant GHG ReductionUOP Proprietary

Discussion Topics


UOP Proprietary

2nd Generation Renewable Jet Fuel from Oils and Biomass

Green Jet-range paraffins

Green Green JetJet--range range paraffinsparaffins

Selective Cracking/

Isomerization

Selective Selective Cracking/Cracking/

IsomerizationIsomerization

Natural Oils and

Fats

Natural Natural Oils and Oils and

FatsFatsDeoxygenationDeoxygenationDeoxygenation

Renewable Jet Fuel

Solid Biomass

Solid Solid BiomassBiomass

Catalytic Stabilization/

Deoxygenation

Catalytic Catalytic Stabilization/Stabilization/

DeoxygenationDeoxygenationPyrolysisPyrolysisPyrolysis

Jet Range cyclic

hydrocarbons

Jet Range Jet Range cyclic cyclic

hydrocarbonshydrocarbons

Synthetic Paraffinic Kerosene

Renewable Jet Aromatics

UOP 5016-10UOP Proprietary

The Future: 100% Renewable Jet

The Boeing hydroplane ran on 98% Bio-SPK and 2% renewable aromatics at SeaFair, Seattle in Aug 2009

Jet A1Spec

Starting SPK

Woody Pyrolysis Oil Aromatics

Freeze Point (oC) -47 -63 -53Flash Point (oC) 39 42 52Density (g/mL) 0.775 0.753 0.863

UOP Proprietary

uop renewable jet process - non confidential presentation, v1

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