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Copyright2018RenewableEnergyGroup,Inc.
Sustainable solutions for our changing energy needsAntti NummiAdvanced Biofuels 2018, Gothenburg
Copyright 2018 Renewable Energy Group, Inc.
REG in Brief
2
• Renewable Energy Group (Nasdaq: REGI) is a leading provider of sustainable, lower carbon energy products and services.
• We produce biomass-based diesel, advanced biofuels and renewable chemicals.
• Our 14 plants in Europe and US have a combined production capacity of 1.8 million tonnes.
• REG‘s revenues in 2017 were USD 2.2 billion.
Copyright 2018 Renewable Energy Group, Inc.
2017 2060
World GDP, trillion USD
Copyright 2018 Renewable Energy Group, Inc.
Energy to fuel the growth
-
5000
10000
15000
20000
2020 2040
GlobalprimaryenergyconsumpAon
SOURCE: BP Energy outlook 2018
Million toe
Despite improving energy efficiency, the world’s energy demand is growing
+26%
Copyright 2018 Renewable Energy Group, Inc.
Emissions to the atmosphere
INDUSTRIAL REVOLUTION
IN EUROPE
INDUSTRIAL REVOLUTION
IN AMERICA
POST WW2 ECONOMIC
GROWTH
GROWTH OF DEVELOPING
COUNTRIES
CO2 emission have gone tenfold in 100 years with increasing speed
Copyright 2018 Renewable Energy Group, Inc.
The world‘s ‘energy transition‘
SOURCE: BP Energy outlook 2018
Primary energy sources are shifting from fossil to renewables too slowly
2016 2040 Shares of primary energy
Oil Gas Coal Nuclear Hydro Renewables
Copyright 2018 Renewable Energy Group, Inc.
The world’s needs for renewable energy
ENERGY DEMAND
FEEDSTOCK SUSTAINABILITY
CLEAN AIR QUALITY
NEW SEGMENTS BEYOND ROAD
Energy demand increases and the energy portfolio decarbonizes
Quality of fuels is constantly improving to
minimize exhaust emissions
Use of renewables is expanding to shipping,
aviation, rail and industrial segments
Use of waste feedstocks increases and supply availability
becomes critical
Copyright 2018 Renewable Energy Group, Inc.
Emissions to the atmosphere
Future trend depends on our choices today
Carbon emissions billion tonnes CO2
0
5
10
15
20
25
30
35
40
Evolving transition (ET) Internal combustion engine ban (ICE ban) Less gas switching Renewables push (RE push) Faster transition (FT) Even faster transition (EFT)
1980 1990 2000 2010 2020 2030 2040 1970 SOURCE: BP Energy outlook 2018
Copyright 2018 Renewable Energy Group, Inc.
The challenge
The challenge is too big for law makers, companies or consumers to overcome alone. All sectors need to contribute
Copyright 2018 Renewable Energy Group, Inc.
Use of natural resources
Developed countries have the responsibility to take action and change the course
Copyright 2018 Renewable Energy Group, Inc.
Europe‘s security of energy supply
USD/bbl MT
1965-1983 Arabian Light posted at Ras Tanura 1984-2017 Brent dated
Europe is heavily dependent on oil imports – in addition to gas – and is exposed to significant supply and price risks
0
20
40
60
80
100
120
140
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200
400
600
800
1000
1200
OilProducAon,MT OilConsumpAon,Mtoe OilPrice Linjär(OilPrice)
SOURCE: BP
Copyright 2018 Renewable Energy Group, Inc.
Structural product imbalance
SOURCE: Eurostat
Biodiesel / renewable diesel can decrease the dependency on diesel imports
Copyright 2018 Renewable Energy Group, Inc.
Meeting the EU targets – some of them
Reach a 20 % share of renewable energy in gross final energy consumption – Renewable Energy Directive Reduce greenhouse gas emissions by 20% compared with 1990 levels – 2020 Climate and Energy Package Reduce the overall environmental impact of production and consumption in the mobility sector – 7th EAP Meet Air Quality Directive standards for the protection of human health – Air Quality Directive
SELECTED OBJECTIVE TO BE MET BY 2020
INDICATIVE OUTLOOK OF MEETING THE OBJECTIVE
BY 2020
We need to have a holistic look at the energy field and acknowledge the benefits of different solutions
Copyright 2018 Renewable Energy Group, Inc.
Outcome of the market drivers
Security of energy supply, the targets to reduce GHG emissions and improve air quality, and growing interest to reuse wastes support long term biofuel demand in Europe.
Growth in transportation volumes in sea, land and air, as well as the structure of the European fuel consumption and the S/D imbalance continue to be major drivers for middle distillate demand in Europe.
!
!
ENERGY DEMAND
FEEDSTOCK SUSTAINABILITY
CLEAN AIR QUALITY
NEW SEGMENTS BEYOND ROAD
Copyright 2018 Renewable Energy Group, Inc.
A smarter way forward
Weneedsmarterwaystoproduceourenergy,toallocateourenergyproducts
andtoconsumeourenergy
Naturalresources–morewastefeedstocks
OpAmizingourenergypool–rightfuelforeachsegment
NosubopAmizaAonorquickwinsatthecostofthelongtermgood
The regulation has to take into account the long term impacts of energy allocation
Copyright 2018 Renewable Energy Group, Inc.
Smarter use of resources
IMAGE: Ellen MacArthur Foundation
Natural resources we use need to be renewable, recycled and reused.
Copyright 2018 Renewable Energy Group, Inc.
Smarter optimization of fuel pool
*Aviation, Marine and Rail, **Includes 2- and 3- wheelers
Bntoe
0
1
2
3
4
2040
Non-road*Trucks2016
TRANSPORTENERGYCONSUMPTIONBYMODE
SOURCE: BP Energy Outlook 2018
As commercial transportation grows, it becomes more dependent on liquid fuels
Cars**
Copyright 2018 Renewable Energy Group, Inc.
Smarter buying of fuels
o The highest GHG reduction with the lowest cost to the consumer and tax payer
o Maximum amount of renewable carbon as feedstock, no hydrogen used
o Oxygenated fuel meaning reduced tailpipe emissions
o Enhances lubricity of conventional fuel
o Biodegradable o Comparable to vegetable oil in
transport & handling requirements
o Exceptional cetane number, virtually free of sulfur, excellent cold properties, no blending restrictions
o Stand-alone HVO is a solution for airlines who want renewable jet fuel and on-road users who want renewable content higher than B7/B20
We need to have a holistic look at the energy field and acknowledge the benefits of different solutions
FAME HVO
Copyright 2018 Renewable Energy Group, Inc.
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CRUDE FEEDSTOCK CAPABLEAlbert Lea, MNDanville, ILEmden, GermanyGeismar, LAMadison, WI
Mason City, IANew Boston, TXNewton, IAOeding, GermanySeneca, IL
REFINED FEEDSTOCKGrays Harbor, WAHouston, TXRalston, IA
FERMENTATION FACILITYOkeechobee, FL
FEEDSTOCK PROCESSINGFACILITYBurlo, Germany 13 BIOMASS
BASED PLANTS 1.8 MMT
NAMEPLATECAPACITY
REG’s production assets
Copyright 2018 Renewable Energy Group, Inc.
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REG’s presence
Copyright 2018 Renewable Energy Group, Inc.
REG is committed to deliver
o With our biofuels, REG has displaced more than 3 million MT of CO2 emissions since 2010.
o We have 14 active biorefineries in Europe and the US – both HVO and FAME – research and development capabilities and a diverse and growing intellectual property portfolio to produce bio-based fuels and chemicals.
o REG utilizes an integrated procurement, distribution, and logistics network to convert natural fats, oils, greases, and sugars into lower carbon intensity products.
o We are committed to be the leading provider of cleaner, lower carbon intensity products and services for the world’s energy needs.
Thank you
