Dr Philipp Stratmann ABLC, Washington DC, March 2017 · A market leader in smaller scale GTL and...

Preview:

Citation preview

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

2

Introduction to VelocysA market leader in smaller scale GTL and BTL

ENVIA Energy GTL plant

Chemical conversion of gas to refined products

3

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

4

ENVIA Energy’s GTL plantStatus

• Can be viewed herehttp://www.velocys.com/media_videopage15_ENVIA_OKC.php

6

Video taken around the Oklahoma City site

Oklahoma City

7

ENVIA Energy’s gas-to-liquids plant

First Fischer-Tropsch product at ENVIA, Oklahoma City

8

9

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

10

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

11

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

13

Drive scale and pace to market

14

Four strategic themes

14

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

15

MorimatsuModularisation and fabrication partner

Globally optimized plant, 700 bpd reactors, 0.8 acres footprint

16

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

17

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

18

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

19

20

Dr Philipp StratmannBusiness Development Directorphilipp.stratmann@velocys.com

Houston office+1 713 275 5840

www.velocys.com

Thank you

®

Appendix

21

• 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

22

FT fuel delivers environmental benefitsChemically similar to conventional jet and diesel, with advantages

Conventional diesel (right) vs FT diesel (left)