Dr Neville Hargreaves World Bio Markets, 21 st March Case study: partnering for a waste to jet fuel plant in the UK

Transcription

1 Dr Neville Hargreaves World Bio Markets, 21 st March 2018 Case study: partnering for a waste to jet fuel plant in the UK

2 Velocys the renewable fuel company ENVIA Energy s plant product offtake 2

3 Velocys the renewable fuels company ENVIA Energy provides commercial platform Played key role in landmark ENVIA Energy plant in Oklahoma City Finished products being produced RIN credits verified under the Renewable Fuel Standard Technology demonstrated at commercial scale Team with exceptional experience of designing, commissioning and operating synthetic fuel facilities Provides foundation for development of integrated biorefineries being pursued by Velocys and its partners Aerial view of the Oklahoma City site Commercial Fischer-Tropsch reactors in situ 3

4 A progression of three renewable fuels projects Lessons learnt will be applied to successive projects Project Feedstock Status ENVIA Mississippi renewable fuels plant Low cost landfill gas and pipeline natural gas Low cost forestry residues In operation FEED partner selected Project development ENVIA in operation Build 2020 Performing in line with requirements at commercial scale. Technology platform for our future renewable fuels biorefineries UK waste to jet fuel plant Negative cost municipal & industrial waste Feasibility engineering Project development Build 4

5 US biorefinery using forestry wastes

6 First US biorefinery project using forestry residues Being developed by Velocys & partners in Mississippi Biorefinery capacity 20 million gallons per year From 900 dry tonnes per day of forestry residues Abundant local supply of low cost feedstock provides longterm strategic supply Working on the Phase 2 submission for USDA Loan Guarantee Program Up to $200 million SMBC lender of record and financial advisor Integrated technology demonstration with gasification partner TRI FEL-2 completed and FEED engineering partner selected Term sheets agreed with a number of potential offtakers Targeting FID mid-2019 Additional sites in three other states identified in the Southeastern US for possible subsequent projects 6

7 Site selected for first biorefinery, Natchez, Mississippi Excellent infrastructure & utilities, attractive incentive package Mississippi river Natchez Adams Port Electrical substations, transmission and distribution lines Biorefinery site Water mains Proposed water wells and well header Railroad Effluent piping and outfall

8 Mississippi biorefinery on track for FID mid-2019 Multiple strategic partners selected USDA loan guarantee phase II invitation Mississippi site announced Pre-FEED complete FEED starts SMBC prelim credit Integrated demo unit start USDA conditional loan guarantee FID + sign feed / offtake agreements Plant construction Plant equity LOIs Plant commissioning starts Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 8

9 UK waste to renewable jet fuel project

10 Renewable jet fuel from household waste Project to build UK s first commercial waste-to-fuels plant Over 70% reduction in greenhouse gases Around 30,000T/year of clean drop-in fuel Waste to jet fuel plant Sustainable feedstock - avoids around 300,000T/year of nonrecyclable waste going to landfill 10

11 Partners bring key strengths Project is aligned to the partners core strategies All invested in project development Intend to underpin revenues through long term commercial feedstock / offtake agreements Market pull (renewable fuels critical to achieving carbon footprint reduction) Waste feedstock supply management and processing expertise Proven process combined with development and delivery of operational renewable fuels plants. Leading the UK project on behalf of the partners 11

12 Addresses a priority for airline and waste industries... International Civil Aviation Organisation (ICAO) commitments to reduce carbon intensity of flight Renewable fuel key to achieving the challenging targets UK has an excess of waste Over 2 million T/year exported Landfills closing Fuel production better use of waste than power / incineration Department for Transport supporting renewable aviation fuel as hard to decarbonise Amendment to RTFO 1 approved by Parliament: up to 1.60 / litre credit Local air quality also a priority 1 Renewable Transport Fuel Obligation 12

13 Drop-in low-ghg jet fuel with added environmental benefits Our route to jet fuel from waste reduces lifecycle greenhouse gas emissions by >70% Meets specifications for synthetic paraffinic kerosene (SPK) Globally approved at up to 50% in commercial aviation (Jet A1/Jet A) Widespread use would improve air quality around airports Over 90% reduction in emissions of particulate matter and sulphur Over 20% reduction in carbon monoxide Over 30% reduction in hydrocarbons FT diesel (left) versus conventional diesel (right) 13

14 Process overview Using established technologies Feedstock conditioning facility Gasifier Syngas clean-up Fischer Tropsch (FT) Hydrocracker Physical preparation of the feedstock Thermally and chemically break the material into its component parts to produce syngas Physically and chemically remove impurities from the syngas Chemically react the syngas to form long chain hydrocarbons Chemically cut the long hydrocarbons to form jet fuel and naphtha Waste Syngas Clean syngas FT product Finished products 14

15 Indicative project stages Pre-FEED Optimisation studies followed by basic design Permitting / planning applications Agree heads of terms for all long-term agreements FEED Selection of EPC contractor Complete detailed design ready to start construction Prepare drafts of all long-term agreements ready for execution at FID Final Investment Decision targeting end of 2019 Procurement, construction and commissioning Targeting commercial operation end

16 Summary Commercial plant in operation Provides the commercial platform for future biorefineries US development of biorefinery underway using forestry residues as feedstock. Targeting FID in mid-2019 UK Velocys and strategically aligned partners are meeting the urgent need for drop-in renewable jet fuel Over 70% greenhouse gas reduction Improved air quality around airports Our process innovatively uses established technologies, building on our operational experience Our joint venture will invest to build, own and operate the UK s first waste-to-jet-fuel plant Targeting FID end 2019 with COD 3 years later 16

17 Thank you Neville Hargreaves Director Capital Projects UK UK office +44 (0) "Velocys and the Velocys logo are trademarks of Velocys 17