An Update on Range Fuels Soperton Plant Project

Transcription

1 An Update on Range Fuels Soperton Plant Project

2 Range Fuels Focus Commercial production of cellulosic biofuels, including cellulosic ethanol, and clean renewable power from renewable biomass that cannot be used for food, and is sustainable, low cost and in excess supply. 1

3 Range Fuels History Formed in June 2006 by Khosla Ventures to commercialize cellulosic biofuels Access to $82MM in federal and state funds and $80MM loan guarantee Broke ground in Soperton, GA in November 2007 for first U.S. commercial cellulosic biofuels plant utilizing woody biomass On April 1, 2008 announced the completion of an oversubscribed Series B round of private financing greater than $100 million 2

4 Range Fuels History In January 2009 the U.S. Department of Agriculture awarded the company a conditional commitment for an $80 million loan guarantee. AgSouth Farm Credit, a leader in agricultural and rural loans and part of Farm Credit Services, will be the lead lending agency on the loan In 2009 Range Fuels personnel are moving to Georgia and operating personnel will be hired Cellulosic biofuels production from the Soperton Plant scheduled to commence Q

5 Partners are Crucial 4

6 Limitations of Current Technology Current production technologies use corn or sugarcane Limited max. capacity (U.S. corn 15 BGY); tight margins Import tax of $0.54/gallon for Brazilian ethanol Food versus fuel Low land efficiency for fuel production Sharp increase in feedstock prices Depleting water tables Wide price fluctuations due to weather Resistance from grocery and livestock industries Lower fossil energy ratio Corn at 1:1.4 Sugarcane at 1:8 Cellulosic ethanol at 1:10 5

7 Increasing Biofuels Support 2005 Energy Policy Act Title XVII Established aggressive support for renewables through RFS Energy and Independence Security Act RFS2 with emphasis on growth in cellulosic biofuels 36 BGY renewable fuels mandated by 2022 Includes 21 BGY advanced biofuels, with 16 BGY from cellulosic biofuels 2008 U.S. Farm Bill Programs targeted to all facets along the biofuels supply chain Growers, harvesters, transporters and producers 6

8 Strategic Advantages Cheaper, less volatile feedstock Flexible high volume feedstock supply Wood chips Municipal waste Industrial waste Manure Switchgrass Corn stover Olive pits Coal Producer of low carbon biofuels Volatility: Corn vs. Pulp Prices $ / Ton Delivered Pulpwood GA Corn Sources: Bloomberg and Timber-Mart South 7

9 Stable Pricing, Large Availability Using Woody Biomass High land efficiency for cellulosic crops; low water and fertilizer inputs Cellulosic availability fits demand; fewer transportation issues U.S. Ethanol Biorefinery Locations Non-Federal Forest Land Density, Biorefineries in Production - Corn-Ethanol Production - 25,000 acres of Forest Land per dot - Biorefineries under Construction - Major Gasoline Consumption - 95% or more Federal area Source: Renewable Fuels Association Source: U.S. Department of Agriculture 8

10 The Technology 9

11 Technology Development 4 generations of biomass conversion testing Pilot-scale K2A Optimization Plant ~ 5,500 hours on wood feedstock > 2,200 hours alcohol production Catalyst systems CC10s (2) CC400 CC100 CC1000 ~ 30,400 test hours K2A Optimization Plant CC1000 Catalyst Reactor 10

12 Technology vs. Competition Feedstock Cost Feedstock Flexibility Yield (gallons/ton) Water Usage External Dependency Product Options Range Fuels Ability to utilize lowest-cost feedstock Can vary by type, size, mix, moisture content; polyculture compatible Ability to process entirety of biomass Competitive with advanced corn ethanol plants Low Multiple syngas derivatives Bio-Chemical Processes Locked in to initial feedstock Enzymes feedstock-tailored; non-trivial to switch feedstock Challenged by ability to process only a portion of biomass Dilute solutions for fermentation increase total water usage Dependent on supplier enzyme costs; High energy costs Limited by enzymes 11

13 Benefits of Technology Extend to Flexibility in Feedstock Use The technology can utilize i. Pine and hardwoods ii. Pulpwood iii. Tops and limbs (slash) iv. Understory v. Pre-commercial thinnings vi. Urban debris vii. Herbaceous energy crops viii. Other Fiber structure is unimportant Focus on delivered energy cost ($/mmbtu) 12

14 Range Fuels Soperton Plant - The Right Location Soperton, GA 13

15 Range Fuels Soperton Plant Plant is permitted for 100MM GPY cellulosic biofuels Project will be completed in phases Phase 1 Construction is underway Equipment is being delivered to the site Construction activities increasing weekly Mechanical completion in Q and commissioning in Q Consumption of ~ 250 tons of renewable biomass per day beginning with clean chips 14

16 Aerial View of Soperton Plant Commerce Dr Range Fuels Dr Warehouse/Offices Process Area Woodyard Area 15

17 Soperton Plant Phase 1 - Process Area Product Storage Area Catalytic Conversion Section Gas Cleanup Section Quench Section Reformer Section Pressure Boundary Feed System Devolatilization Section 16

18 Soperton Plant Phase 1 - Woodyard Hammermill Day Storage Dryer Reclaimer Chip Pad Scale Truck Dump 17

19 Feedstock Supply - The Supply Chain Will Evolve and Grow Today existing forestry resources Pulpwood Fuel chips Mill residuals Additional phases and future plants Getting more out of what s there o In forest residue and un-merchantable timber o Pre-commercial thinnings New sources of renewable biomass o Purpose grown trees o Herbaceous energy crops Other non-food biomass feedstocks Maintain focus 18

20 Range Fuels Focus Commercial production of cellulosic biofuels, including cellulosic ethanol, and clean renewable power from renewable biomass that cannot be used for food, and is sustainable, low cost and in excess supply. 19