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Spoke and Hub Distributed Production of Methanol A New Paradigm for Production of Alternative Chemicals and Fuels
BioEnergy SymposiumMay 14, 2015 | Charlotte, NC
6/3/2015 1Confidential and Proprietary
6/3/2015 Confidential and Proprietary 2
Maverick SynfuelsConverting āstrandedā feedstocks into chemicals and fuelsā¢ Transportable and marketable methanolā¢ Low risk, proven technologyā¢ Capital efficient
AGENDAā¢ Who is Maverickā¢ Problem ā waste carries a
cost for handling and removalā¢ Convert to higher value
productsā¢ Technologyā¢ Feedstock arbitrageā¢ Conclusions
Global Waste: A Problem to SolveLow-volume, predictable supply, and lower cost
ā¢ Waste is on the riseā¢ Cost and regulatory constraints
with waste disposalā¢ Growing environmental issuesā¢ Waste is widely distributed and
difficult/expensive to aggregateā¢ āPocketsā of waste are hard to
access and difficult to convert economically
6/3/2015 3Confidential and Proprietary
Northwestern North Dakota is home to the Bakken shale formation, where fracking has led to an oil boom. Most of the bright lights are natural gas from wells being burned because the region lacks the infrastructure to pipe all the gas away. Gas production has increased rapidly in recent years but 30 percent is flared. (Andy Rowell from Oil Change International)
Image: NASA Earth Observatory image by Jesse Allen and Robert Simmon VIIRS/SUOMI
Abundant Feedstock Supply
Anaerobic digester gas ā EPA Agstarā Average 225,000 ft3/day (SCFD) of biogasā 193 listed, 81 provided estimated output,
23 >250,000 SCFD
Associated gasā 35,000 to 40,000 wells in Bakken each
producing associated (flare) gas
MSW and industrial wasteā Average landfill ~ 200 tons per dayā More than 3,000 in USā Landfill gas (active landfills only)
6/3/2015 Confidential and Proprietary 4
Trends in Anaerobic Digester/Biogas Environment
ā¢ Need to reduce waste and handle it better
ā¢ Electricity rates (Power Purchase Agreements) are declining
ā¢ New and anticipated regulations are encouraging more AD deployments
ā¢ Seeking alternative uses of biogasā¢ Need revenue streams to offset the cost
of ADā¢ Lack of capital for investment in AD
6/3/2015 Confidential and Proprietary 5
Why Convert Methane to Methanol?
ā¢ Vast reserves of methane, both biogas and natural gas (NG), cannot economically be distributed to local energy markets.
ā¢ Conversion of waste gas into transportable liquid fuels and chemicals monetizes these underutilized reserves.
ā¢ Superior revenue potential compared to wholesale NG and electricity generation.
ā¢ Methanol is valued commodity in remote and undeveloped areas.
ā¢ Congruent with existing industry and business models.
6/3/2015 Confidential and Proprietary 6
Revenue available to venture from 1 MMBTU Natural Gas Equivalent
Advantages of MethanolRelatively easy to produce and store at remote locations
ā Liquid at ambient temperature ā Transported to market via conventional methods (truck, rail, barge, etc.)
Important intermediate for synthesis of high-value productsā Chemicalsā Clean fuels
Existing and growing market ā Anti-freeze/solventā Olefins (ethylene & propylene)ā Formaldehyde (resins)ā Blended or direct use of methanol as a fuel (M15, M85, M100 and fuel cells)ā DME ( a diesel and LPG substitute) ā Further synthesis to diesel or jet fuel
Methanol blends make superior fuelsā Improve combustionā Increase octaneā Burn cleanlyā Reduce emissions
6/3/2015 Confidential and Proprietary 7
Methanol
ā¢ Methanol Marketā Over 65 M metric tons worldwide
ā¢ Nearly 7 M metric tons US (over 2 Billion gallons)ā Chemical commodity
ā¢ Starting material for many chemicalsā¢ Biodiesel industry (~5% of US market, 100 M gallons)
ā 5th most widely traded commodityā Growth rate in excess of 5% year over year
ā¢ Upgrade methanol to other products at future hubs, if incremental economic opportunity exists
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Spoke and Hub Distributed Production
6/3/2015 9Confidential and Proprietary
Olefinityā¢ Technology - Methanol
6/3/2015 Confidential and Proprietary 10
Methanol is Sellable and Transportable
Maverick Oasisā¢ Product Line
ā¢ Description: Small-scale modular plantā¢ Feedstock: Natural gas or methane-rich gasā¢ Deployment: Co-located with anaerobic
digesters; remote oil and gas fields; landfillsā¢ Capacity: 3,000 ā 10,000 gallons per dayā¢ Output: Methanol (performance guaranteed)
6/3/2015 Confidential and Proprietary 11
Featuresā¢ Feedstock flexible; aggregation
capableā¢ Skid-mounted, small footprintā¢ Factory built by PPE
Advantagesā¢ Co-location with feedstockā¢ Lower CAPEX / operating costsā¢ Quick deploymentā¢ Transportable intermediates
Benefits to feedstock providerā¢ New source of revenueā¢ Alternative to flaring or
generating electricityā¢ Environment friendly
6/3/2015 Confidential and Proprietary 12
Uses smaller plants based on known processesā Eliminate technical riskā Integrate proven technologiesā Reduce implementation risk
Reduces capital requirements and accelerate return on investmentā Phased build-out of spokes in Spoke and Hub modelā Smaller plants (spokes)ā Sellable āintermediateā leads to quick revenue
Increases sources of feedstock and reduces feedstock price pressuresā Lock in āpoint of sourceā feedstock supplies ā synergistic co-locationā Reduce āself competitionā (within an economic geography) for feedstock
which drives up pricesā Enable access to āeconomically strandedā feedstockā Implement a flexible feedstock model
Advantages of Spoke and Hub Distributed Production
Spoke and Hub Deployment Economicsā¢ Access and convert pockets of feedstockā¢ Not available to other producers needing a large feedstock supply
6/3/2015 Confidential and Proprietary 13
Spoke and Hub enables "feedstock arbitrage" by converting pockets of low-cost feedstock to
high-value products at market price
Spoke and Hub Model
Conclusion
ā¢ Solves multiple problemsā Waste reduction and handlingā Reduce/eliminate environmental issuesā Improve local economies/reduce
dependence upon petroleum
ā¢ Produces products that have local value
6/3/2015 Confidential and Proprietary 14
ā¢ Uses known technologiesā Reduces operating expendituresā Transportable intermediates
ā¢ Reduce capital requirementsā¢ Reduces risk
ā Financialā Technical
Contact Maverick
Business Opportunities For Strategic Partnersā¢ Licensing Maverick OasisTM technologyā¢ Building and operating production plants
6/3/2015 Confidential and Proprietary 15
For More Information:
www.mavericksynfuels.com
Sam YenneCEO
[email protected](919) 749-8717
Eric CummingVP of Corporate Development
[email protected](919) 341-4208