Aviation Biofuels Barriers to Adoption and Value Chain Risk Mitigation © 2010 UOP LLC. All rights...
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Transcript of Aviation Biofuels Barriers to Adoption and Value Chain Risk Mitigation © 2010 UOP LLC. All rights...
Aviation Biofuels Barriers to Adoption and Value Chain Risk Mitigation
Aviation Biofuels Barriers to Adoption and Value Chain Risk Mitigation
© 2010 UOP LLC. All rights reserved. UOP 5191-01
Advanced Biofuels Leadership Conference21 April 2011Jim Rekoske, VP & GMHoneywell’s UOP
Value Chain in Biofuel Production
Long, fractured value chain in several distinct industries: Rural real estate / farming Biotechnology Oleo Chemicals Refining and Chemicals Fuels Marketing
Land Owners
Energy CropGrowth &
Development
Oil Production&
Pre-purificationConversion Distribution
to Market
Many stakeholders = added transactions costs
General Observations
Value Chain in Biofuel Production
Land Owners
Energy CropGrowth &
Development
Oil Production&
Pre-purificationConversion Distribution
to Market
Sustainability, Energy Security, Rural Development
• Competing uses for land, other resources; aversion to “new”, production and scheduling risks
• Technical risks, capital access, deployment between food / fuel
• Competitive equipment uses, technology need for fuels
• Technology risks – will it work
• Market demand at pricing which permits value creation for the chain
Biofuel and Fossil Fuel Comparison
Land Owners
Energy CropGrowth &
Development
Oil Production&
Pre-purificationConversion Distribution
to Market
Risk throughout the value chain in biofuels
Mineral RightsOwners
Exploration&
Production
Logistics/
TransportConversion Distribution
to Market
Highly Integrated Majors
Outcomes Outcomes Outcomes Outcomes
Risk Profile
Outcomes Outcomes OutcomesOutcomes
Risk Profile
Barriers and Tools to Manage Risks
Feedstock– Can I acquire sufficient feed
at manageable price while limiting commodity risk?
Technology– Does the technology work as
advertised? Market
– What combination of price and volume will the market demand?
Financial– Can a sufficient financial
return be made available to compensate the risks?
Partnerships
Demonstrations
Policy stability “Market Leader” Advantaged Pricing
Financial risk mitigation, performance guarantees, loan guarantees, stable partners / customers
Barriers Tools
Most elements in place – environment improving
Valero + Darling =Diamond Green Diesel LLC Announced in January 2011, Diamond Green Diesel, LLC
plans to construct a 10,000 BPSD Ecofining Unit in the US
Backup Material
Honeywell Overview
$33 B Broad and Diverse Businesses, Technologies and Products
38%38%
16%16%
32%
14%Aerospace
SpecialtyMaterials
Automationand Control Solutions
Transportation and Power Systems
UOP Overview
• Since 2005, a Honeywell Company –part of Specialty Materials business unit
• Leading supplier and licensor of processing technology, catalysts, adsorbents, process plants, and technical services to the petroleum refining, petrochemical, and gas processing industries.
• UOP Technology Furnishes: 60% of the world’s gasoline; 85% of the world’sbiodegradable detergents; 60% of the world’s para-xylene.
• 3400 employees worldwide.• Strong relationships with leading
refining and petrochemical customers worldwide.
Biofuels: Next in a Series of Solutions
2003 National Medal of Technology Recipient
Refining Gas Processing Petrochemicals Renewable Energy
“Other” Oils: Camelina, Jatropha
Lignocellulosic Biomass, Algal Oils
Second Generation
Oxygenated Biofuels
BiodieselEthanol
Hydrocarbon Biofuels
JetDiesel Gasoline
FirstGeneration
Natural Oils FromVegetables and Greases
Fuel & Power
Fuel & Power
Renewable Energy
Honeywell Renewable Fuels Vision
Building on 96 years of petrochemical industry 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 feed stocks and chemicals
Sustainable Technologies – Feedstock Flexible / 2nd Generation
UOP/Eni EcofiningTM
Process
UOP/Eni EcofiningTM
Process
Natural Oil/Fats
Renewable Jet Process
Renewable Jet Process
RTP®
(Pyrolysis)RTP®
(Pyrolysis)
Hydrogen
Natural Oil/Fats
Hydrogen
Biomass
Honeywell Green DieselTM
Honeywell Green JetTM
Green Power / Fuel Oil (now)
Green Fuels (2013)
Upgrading ProcessUpgrading Process
Envergent Technologies – UOP/Ensyn JV
Green Jet (if req)
Green Diesel
GasificationGasification
SeparationSeparation
FT SynthesisFT Synthesis
ConversionConversion
Rentech / UOP Alliance
Green Fuels
UOP Renewable Fuel Technologies
Natural Oils v. Diesel and Jet Fuel
60 400 500 650 1000 1300Boiling Point, °F
Gasoline Diesel No. 2 Lubricating Oils Asphalt
Jet
300
Heavy Fuel OilsGases
Crude Oil
1 6 8 10 15 20 43 71Number of Carbon Atoms
Natural Fats and Oils
Nature stores excess energy in triglycerides – fats and oils
Triglycerides have chemical structures similar to diesel and jet fuel
− Less branched, but similar structrure
• Technology that produces a fully fungible hydrocarbon product
• 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 2010
• Excellent blending component, allowing refiners to expand diesel pool by mixing in “bottoms”
• Can be used as an approach to increase refinery diesel output
Petrodiesel BiodieselGreen Diesel
NOx Baseline +10 Baseline or better
Cetane 40-55 50-65 75-90
Cold Flow Properties Baseline Needs
AdditivesBaseline or
better
Oxidative Stability Baseline Needs
AdditivesBaseline or
better
Natural Oil/ Grease
+Hydrogen
Green DieselGreen Diesel + nC3 & Naphtha
+ Glycerol Biodiesel (FAME)Biodiesel (FAME)
Natural Oil/ Grease
+ Methanol
Performance Comparison
Process Comparison vs. Biodiesel
+
H3C CH3
+
CH3CH3
CH3H3C
CH3 H3C
CH3
H3C CH3
CH3CH3
+
H3C CH3H3C CH3
+
CH3CH3
CH3H3C
CH3 H3C
CH3
+
CH3CH3
CH3H3C
CH3 H3C
CH3
H3C CH3
CH3CH3
H3C CH3
CH3CH3
H3C CH3H3C CH3
HC
O
O
O
O
O
O
CH3
CH2+CH3
CH3H2O
CO2 H3C
H3C H3C CH3
CH3H3C
HC
O
O
O
O
O
O
CH3
CH2+CH3
CH3H2O
CO2 H3C
H3C H3C CH3H3C CH3
CH3H3C CH3H3C
Reactor
System
Water
CO2
Propane & Light Ends
Diesel Product
Make-up Hydrogen
Separator
Vegetable Oil
Acid Gas Removal
Naphthaor Jet
Reactor
System
Water
CO2
Propane & Light Ends
Diesel Product
Make-up Hydrogen
Separator
Vegetable Oil
Acid Gas Removal
Naphthaor Jet
H2UOP Catalyst
Ecofing Process Chemistry and Flow Scheme
XX
UOP/ENI Ecofining™ Green Diesel
Initially a DARPA-funded project to develop process technology to produce military jet fuel (JP-8) from renewable sources
Targets maximum Green Jet production
Green Jet Fuel can meet all the key properties of petroleum derived aviation fuel, flash point, cold temperature performance, stability
Certification of Green Jet as a 50% blending component in progress
Deoxygenating/Isomerization
Deoxygenating/Isomerization
Built on UOP Refining Technology
Green DieselGreen Diesel
GreenJet
GreenJet
Natural Oil/ Grease
DARPA Project Partners
Deoxygenating/ Selective Cracking/
Isomerization
Deoxygenating/ Selective Cracking/
Isomerization
Natural Oil/ Grease
UOP Renewable Jet Process
Completed Flight Demonstrations
Feedstock: Jatropha oil
Feedstock: Jatropha and algal oil
Feedstock: Camelina, Jatropha and algal oil
Feedstock: Camelina
Feedstock: Jatropha oil
Royal Netherlands Air Force16 June 2010 Gilz Rijen Air Base Netherlands
Recent UOP Green Fuel Demonstrations
USAF A-10C25 March 2010 Eglin AFB
US Navy Green Hornet22 April 2010 Pax River NATC
USAF C-1727 August 2010Edwards AFB
US Navy RCB-X22 October 2010Naval Station Norfolk
F-15 III Strike Eagle25 October 2010 Eglin AFB
Deliveries exceeding 400k gallons in 2010
• UOP Alliance with Rentech• Gasification & Fischer-Tropsch technologies to convert biomass to
jet, diesel and naphtha• Utilize available forest and agricultural waste to create valuable fuels
Biomass to Liquid Biofuels through FT
Rentech Rialto Project640 bbls / day diesel35 MW electricityUOP licensed technology
Rentech Rialto Project640 bbls / day diesel35 MW electricityUOP licensed technology
Pyrolysis Oil
Solid Biomass
Commercially Proven Patented TechnologyENV 5233-04
510°C, <2 seconds Biomass converted to
liquid pyrolysis oil Fast fluidized bed, sand
as heat carrier High yields; >70 wt%
liquid on woody biomass
Rapid Thermal Processing (RTP™)