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NGT-synthesis LLC presentation at Houston Technology Centre Innovation Conference and showcase. October 2014.
Citation preview
Methaforming®
Production of high-octane
gasoline from low-octane
hydrocarbons and methanol
HTC Energy Screening Committee, October 09, 2014
2
Solution: Methaforming, One Step Conversion
of Hydrocarbons with Methanol into Gasoline
• Simple ONE STEP process;
• No precious metals in the catalyst;
• High yield of high-octane gasoline blendstock;
• Low capital and operating costs.
Methaforming
unit
3-10 atm
370-490 C
Stab
ilize
r
Methanol (~25%)
Naphtha (35-160°C)
H2, H2S
С1-С4
Gasoline blendstock High octane gasoline
10-30 ppm sulfur
<1.3% Benzene
Water
NGTS HTC presentation October 2014
3
Methaforming vs Reforming: Much Simpler
and Cheaper
Catalytic Reforming & Isomerization
Hydrotreatment*
Reforming
Isomerization
85 – 180 oС
35 - 85 oС
Naphtha
High octane
gasoline
Benzene reduction
• Most common technology
• Feed hydrotreatment required
• Several process units
* If sulfur <500ppm in naphtha
Catalytic reforming and isomerization:
Reducing cost of
gasoline production
over 50%
Methaforming:
NGTS HTC presentation October 2014
4
Competition: Methaforming vs. Reforming
For 0.9 million tpa (20k BPD) unit
Methaforming Reforming ∆ Methaforming-
Reforming
Yields, $MM/yr 178 172 +6
OPEX, $MM/yr 10 18 -8
CAPEX, $MM 48 100 -52
Total NPV, $MM 1094 947 +147
Methaforming yields are $7/mt ($0.80/B) better than reforming:
Methaforming is better than reforming:
• $6 MM/yr better yields
• $8 MM/yr lower opex
• $52 MM lower capex
• Total value is $147 MM better
NGTS HTC presentation October 2014
5
The Market – the World and the US
Replace reforming in new refineries and expansions
– Worldwide gasoline growth 2 %/yr
– Requires 77 million tpa (1.8 million BD) of reforming capacity
Other applications of the technology as specialty process:
– convert pyrolysis gasoline into higher valued aromatics
– convert LPG into gasoline blendstock
In the US, opportunity to convert condensate into high octane gasoline
– Condensate exports could reach 40 million tpa (1 million BD) by 2023
– Methaforming condensate gives $200/mt ($23/B) net margin.
Methaforming is the most economical known process to make high
octane gasoline from condensate.
NGTS HTC presentation October 2014
6
Pilot Plant Results and Plan Laboratory plant
Pilot plant
Laboratory plant
• Reactor volume – 0.1 L
• Capacity – 0.63 t/year (0.14 bpd)
• Total test hours > 2000
• Typical hours per test – 200
Pilot plant
• Reactor volume – 2 L
• Capacity – 16 t/year (3 bpd)
• Start up – Oct 2014
• Confirm yields, catalyst life and scale
up – May 2015
NGTS HTC presentation October 2014
7
240 BPD Demo Plant
• Based on an idle existing naphtha
to BTX* converter;
• Reactor volume – 2 m3
• Capacity – 10 ktpa (240 bpd)
• Start up – 2015
• Status: negotiations are in process.
Idle naphtha to BTX converter
NGTS HTC presentation October 2014 * Benzene-Toluene-Xylene mix.
8
2-3 k BPD Commercial Demo Plant
• Based on an idle existing naphtha reformer
or hydrotreater;
• Reactor volume – 20 m3
• Capacity – up to 100 ktpa/year (2.4 k bpd)
• Start up – 2017
• Status: Looking for idle units in Russia and
the US.
Idle hydrotreater
NGTS HTC presentation October 2014
9
Business Model: Early Licensing, then Exit
Potential licensees or acquirors of the
company:
Technology providers, licensors
• UOP, Axens
• KBR, Air Liquide-Lurgi, Technip, CBI
End users
• Oil & gas majors & national oil companies
(NOCs)
• Methanol producers:
Methanex, DuPont.
74%
19%
7%
Licensing
Catalyst
sales
Engineering
NGTS HTC presentation October 2014
10
Core Team: Solid Skills in All of the Key Areas
Denis Pchelintsev – CEO
Co-founder of several successful technology startups,
previously - CEO NIPTIEP Institute. Ph.D in engineering.
Joseph Lischiner – Technologist
Co-inventor, author of the first Russia gas-methanol-gasoline
and oligomerization plants. PhD in chemical engineering.
Olga Malova – Head of catalysis
Co-inventor of the catalyst, experience in catalytic refining
processes, exp. in projects with Bayer, Eni. Ph.D.
Alexei Beltyukov– Chairman of the Board of Directors
Entrepreneur, several profitable exits. Started Brunswick Rail
(now >$2bn); managed a portfolio of underperforming
assets, IRR>42% over 9 years. Previously at McKinsey&Co.
NGTS HTC presentation October 2014
11
Road map
Venture value
Revenue 0 0 0 0 $0.1 MM $0.8 MM $7.9 MM $4.1 MM
Funding Grant $1,0 MM $6.8 MM $0.6 MM 0 0
Year 2012 2013 2014 2015 2016 2017 2018 2019
Catalyst design
Lab plant Pilot plant
0.24 kbpd Demo plant
2 kbpd Com. plant
start-up
Development Stage Commercialization stage
Potential exit points
2 kbpd Com. plant
constr.
NGTS HTC presentation October 2014
12
Financial Summary
NGTS HTC presentation October 2014
K bpd $MM
-400
-350
-300
-250
-200
-150
-100
-50
0
50
100
150
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
2013 2014 2015 2016 2017 2018 2019 2020 2021
Total negative cash flow $9MM
$6MM investment for reformer in 2016 returned in 2018
13
Technology:
• Methods for scaling fixed-bed reactors are
well known
• Catalyst is sulfur-tolerant. It’s sensitivity to
other impurities will be extensively tested.
• Using an experienced industrial catalyst
manufacturer.
Legislation:
• Use proven consultants to address local
environmental concerns.
• Four Russian patents received. Applying for
3 international (PCT) patents.
Addressing the Risks
NGTS HTC presentation October 2014
14
Summary
• Reforming and isomerization are expensive
• Methaforming provides comparable yields at half the cost
• Large and growing market
• Attractive and realistic exit options.
Raising Funds:
• $ 1 MM now for process optimization, building 0.24 kbpd demo plant
• $ 6.8 MM in 2016-7 for 2 k bpd demo plant construction
• Exit in 2018.
Denis Pchelintsev, CEO
[email protected] +7 (903) 527 22 00 NGTS HTC presentation October 2014
15
BACKUP
NGTS HTC presentation October 2014
16
US condensate Methaforming – over $200/t
value added
Southern Lights Diluent + Methanol balance spreadsheetPrice
Feed: t $ $/mt
Southern Lights Diluent 1,000 773 773
MeOH 0,207 83 400
Total 1,207 856
Product:
H2 0,020 33 1706
C1-C2 0,011 3 250
NGL 0,080 60 755
Reformate + iC5 0,950 1029 1084
Disel 40% wt naphtalenas 0,031 31 1000
octane -81 9
Total HC 1,091
Water 0,116 -1 -10
Total 1,207 1075
GROSS per mt 219
20k BPCD Plant:
GROSS MARGIN $MM/A: 195
OPEX 10
NET MARGIN $MM/yr 185
Methaforming
NGTS HTC presentation October 2014
17
IP status and plan
1. Four Russian patents and registered trade
mark “Methaforming”
2. Three PCT international applications* :
• Aromatics production method from
hydrocarbons and methanol;
• Plant for hydrocarbons conversion to BTX
• Catalyst for hydrocarbons and oxygenates
processing
3. Next milestone is the catalyst optimization and
reactor scaling up.
NGTS HTC presentation October 2014
*in process
18
Environmental Regulations in the US
• US gasoline specs allow 1.3% of benzene and 10 ppm of sulfur
• Methaforming reduces benzene content to 0.8 - 1.6%
• Methaforming reduces sulfur by 95% to 5-30 ppm.
NGTS HTC presentation October 2014
19
Development plan
2010-2012
Catalyst developed
2013-2014
Lab tests of reactor and catalyst
2014 - Pilot Plant
tests
2015 - 0.2 k bpd Demo
plant start-up (projected)
2017 - 2 k bpd Demo plant
construction (projected)
NGTS HTC presentation October 2014
20
Methaforming process chemistry
Four chemical reactions are integrated into one single process
Heat of reaction is controlled by feed ratio of methanol to raw feedstock.
R Me R
MeOH +
3 MeOH
CH3(CH2)4CH3
1.Aromatization of paraffins and olefins
2.Alkylation to aromatic ring
3.Aromatization of methanol via olefins
Exothermic
Exothermic
Endothermic
4.Izomerization of paraffins
n-СnH2n+2 iso-СnH2n+2
Exothermic
NGTS HTC presentation October 2014
21
Applications: Pygas to BTX
Lab-scale Process optimization
Basic technical data Report
1. Catalyst characteristics
2. Chemistry, physical and chemical basis of technology:
3.1 Chemistry of basic reaction. Kinetic equations
3.2 Kinetics of coke formation and catalyst deactivation
3.4 Regenerations of the catalyst
3. Preliminary Technical Description
4.1. Typical PID
4.2. M&E Balance
4.3. List of equipment (inc. capacity)
Activity Results / Deliverables Activity Owner
Due diligence Report
1. Catalyst characteristics
2. Feasibility Study
3.1 Investment Cost Estimate of Novel Process
3.2 Investment Cost Estimate of Reforming
3.4 Economic Analysis of both case
3. Scale-up plan
4.1. Research plant
4.2. Budget estimation of the pilot-study
4.3. Assess risk and opportunity
4.4. Approach of commercialization
Valuation of technology
Demonstration Scale Study JV Agreement or partnership
1. BDP & BEP
• Basic Design of industrial plant
• Strong IP protection
• Commercial catalyst
Engineering|
partner/provider
NGTS HTC presentation October 2014
22
Business Overview
Problem:
• Need for gasoline in developing
countries;
• High cost of traditional reforming
technology.
Solution
• Methaforming – an one step process
of joint conversion of low octane
hydrocarbons and methanol into high
octane gasoline;
Competitive advantages:
• ½ the CAPEX and OPEX;
• Simple process
Innovative core:
• Novel catalyst and proprietary reactor
equipment;
Seeking :
• Capital – for the process development
and commercialization
• Partners – for expertise and entry into
US, China, Middle East market;
• Engineering/licensing partner – for
global technical support and detailed
engineering.
Market:
• Tens of $ Bln in gasoline and
petrochemical market ;
NGTS HTC presentation October 2014