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Synthetic Fuels: A Practical Solution for

Sustainable MobilityJournées annuelles du pétrole - Paris, 22 octobre 2008

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• The Alliance for Synthetic Fuels in Europe was launched in 2006 in Brussels. Members of the Alliance are:

Bosch, Daimler, Renault, Royal Dutch Shell, Sasol Chevron, Volkswagen

About ASFE

Objectives

• To promote synthetic fuels because of their unique and consistent composition and hence their significant contribution to vehicle GHG and exhaust emission reduction, as well as their contribution to energy diversity and security

• To support a range of activities in the field of synthetic fuels and sustainable mobility, including research, projects demonstrating the benefits of synthetic fuels such as vehicle trials, cooperation with governments and promotion of public awareness

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CarbonCarbonsourcesource

OxygenOxygensourcesource

Natural gas (GTL)

Biomass (BTL)

Coal (CTL)

AirSteam

Synthetic fuels production process

SyngasSyngasProductionProduction

syngassyngas

COCO

H2

HH22OOby-productby-product

waxywaxysyncrudesyncrude

Fischer-Fischer-TropschTropschConversionConversion

ProductProductUpgradingUpgrading

SyntheticSyntheticfuelfuel

OtherOtherproductsproducts

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Maximum performance and emission benefit

Neat Applications

Conventional Refining

Blend applications

Crude oil

Premium grade diesel

Regular grade diesel

Distribution pathways

XTL

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Energy security:→ Strategic diversification of energy supply→ Three different feedstocks, same fuelEnvironment:→ Trend towards cleaner fuels→ Local air quality improvement→ Lower GHG emissions (BTL)Economic development:→ Cost effectiveness–compatibility with existing engines and infrastructure→ Remote gas reserves commercialisation→ New business opportunity for agricultural sector (BTL)→ Development of new engine concepts

It’s a cleaner diesel, which is what Europe needs!

Why Synthetic Fuels?

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CO2-emission benefits of XTL

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-80 -60 -40 -20 0 20

Diesel

Gasoline

FAME sunflower

BtL m ean

Ethanol 1s t generation

Ethanol 2nd generation

gCO2 / MJfuel

CO2 Well To Tank emissions

BTL presents major CO2 advantages compared to other fuels, including other biofuels

Source : JRC/Eucar/Concawe 2007, Renault

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Local emission benefits of XTL

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Engines Road Map: XTL potential New Passenger Cars & Light Commercial Vehicle (<5t) – liquid fuel ICEs

Source: Adapted from EUCAR 2006

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Conclusions• XTL can be used on existing fleets, with significant benefits on local

emissions

• Potential for advanced engines and injection systems, optimised around synthetic fuels

• Synthetic fuels will contribute to a diversification of energy sources

• GTL will pave the way for BTL development & commercialisation

• BTL production: new and sustainable business for EU agriculture, large WTW CO2 benefit

• Need for political & fiscal support from EU and national policy makers for the introduction and increased penetration of all synthetic fuels

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Backup

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Synthetic fuels are a reality

• Several GTL production plants started recently and others are about to be launched

• GTL is already present as a blend component in EU fuels• A BTL pilot-plant was completed in Germany, a ß-plant is under construction

• Current vehicles can run on synthetic fuels without any modification, while reducing emissions

• Many vehicle tests have been performed with synthetic fuels

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Shell (Malaysia)Shell (Malaysia)

Oryx (Qatar)Oryx (Qatar)

CNL/NNPC (Nigeria)CNL/NNPC (Nigeria)

34,000 bpd

14,700 bpd

34,000 bpd

Choren (Germany)Choren (Germany)

310 bpd

Shell(Qatar)

140,000 bpd

Commercial reality

GTLGTLGTLGTL

GTLGTL

GTLGTL

BTLBTL

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LondonB u s t r ia l w it h D a im le r -C h r y s le r

JapanH e a v y D u t y t r u c k f le e t t r ia l

JapanA ic h i G T L -h y b r id b u s

GermanyF le e t t r ia l w it h V o lk s w a g e n

LondonT o y o t a t r ia l

ChinaM ic h e l in B ib e n d u m C h a lle n g e

4,000 Retail sites across Europe1 0 0% G T L F u e l

D ie s e l /G T L F u e l b le n d

ChinaB u s t r ia l S h a n g h a i

ThailandS h e l l P u r a D ie s e l

U S AD e p t . o f T r a n s p o r tY o s e m it e W a te r

USA & FranceA u d i L e M a n s r a c in g

QatarB u s e s f o r A s ia n G a m e s

GreeceS h e l l D ie s e l 2 0 0 4

N e th e r la n d sB u s t r ia l

Fuel Demonstrations Around the World

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BTL engine emissions & performance

Source: RENEW

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BTL and GTL engine emissions tank to wheel• Reference: Emission of conventional diesel fuel in conventional engine Euro 3 / 4• «  + »  means environmental benefits

Sources: testing by ASFE members, literature

Engine

Normal engine

Normal engine

Engine optimized for GTL

Fuel

GTL

BTL

Gazole

Pure GTL

NOx

=

=

+

+ +

PM

+

+

+

+ +

HC

+ +

+ +

=

CO

+ +

+ +

=

CO2*

+

+

=

+

* Tank to Wheel