MARKET STRATEGY AND DEVELOPMENT OF ADVANCED CATALYTIC PYROLYSIS TO DROP-IN HYDROCARBON FUELS International Advanced Biofuels Conference 19 May 2017 Gothenburg, Sweden
Note on Forward Looking Statements This Presentation may include certain projections and forward-looking statements provided by Inaeris with respect to the anticipated future performance of Inaeris Technologies, LLC (the Company ). Such performance and forward-looking statements reflect various assumptions concerning the future performance of the Company, and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company. Only certain of the assumptions are set forth in this Presentation. Accordingly, there can be no assurance that the projections and forward-looking statements will reflect the actual performance of the Company. The actual results may vary from the anticipated results and the variations may or may not be material. No representations or warranties are made as to the accuracy or reasonableness of the assumptions or the projections or forward-looking statements based on any assumption. 1
Inaeris Technologies Overview Proprietary technology for drop-in renewable hydrocarbons Built on processes already found in forestry and refining Can be split and co-located with existing forestry, refinery and/or biofuels operations History of commercial scale operations and subsequent technology development Reduces risk of commercialization and scale up More robust and reliable than first-of-kind commercialization Regulatory approvals and product testing allow for immediate contribution to goals of a Fossil Free Sweden and new climate policy framework 2
Process Overview: Potential Split Co-Location A key attribute of the Inaeris technology is the ability to split co-locate the production process between a pulp & paper company and a refining company Pulp & Paper Mill Oil Refinery Woody Biomass Woodyard BFCC Upgrader Feedstock Source Biomass Preparation and Pretreatment Catalytic Pyrolysis of Biomass into Bio-Oil Hydroprocessing of Bio-Oil into Drop-in Hydrocarbons 3
Value Proposition: Market-Ready, Drop-In Hydrocarbon Fuels Drop-in Hydrocarbons Compatible with the existing fuel infrastructure Energy equivalent of fossil fuels RED II compliant GHG reduction (up to 82%) Jet fuel qualification process idled but nearly complete Market Acceptance US EPA registration for up to 25% blends in gasoline and diesel Significant no harm testing completed Over 3,5 million liters seamlessly distributed, sold and used in US 4
Columbus Facility: Operational Highlights Over 3,5 million liters into the United States fuel pool without issue First cellulosic hydrocarbon blendstocks ever produced at commercial scale First commercially produced cellulosic fuel into US mandated renewable market Five quarters of operating experience at commercial scale Multiple start-ups and shutdowns Invaluable operating, analytical and process technology experience Progressively longer operating runs, with resolution of operational challenges Fundamental technology proved to be scalable and robust 5
Significant Columbus Learnings Scale-up and Design Unanticipated first-of-kind details escaped experienced professionals (internal staff and world-class EPC) during design Demonstrate new unit operations before design Design must handle start-up/ramp-up/upset issues, as opposed to full-rate, on-spec operations only Operations Opportunities for significant yield improvement Adequate time for start-up and initial operations essential Commercial Controlled or partnered catalyst production to avoid timing issues with third-party vendors Address disposal of low-value, byproduct and environmental streams in advance 6
Increased Yield and Profit Potential from Commercial Experience Technology performance improved over last 3 years Addressed learnings from operations at Columbus: Increased yield Industrial robustness through process development Novel technologies implemented to mitigate oil recovery losses Improved catalyst for increased lifespan and performance Actual pilot scale results have more than doubled yield over Columbus plant operations Overall Mass Yield of Fuel (Dry Wood Basis) 27,7% 12,0% 30,7% Columbus Reference Current Nth Plant 7
Commercial Facility Economic Performance TLP Basis SEK 12 Operating expenses (SEK/liter) SEK 10 SEK 8 SEK 6 11,46 SEK 4 SEK 2 5,74 4,44 SEK 0 Columbus Reference Current Nth Plant NOTES: See slide 1 for note on forward looking assumptions and predictive statements. Assumptions based on U.S. Gulf Coast values for 2 000 dry tonne per day facility converted to SEK for illustrative purposes at rate of 1 USD = SEK 8,80. 8
Split Co-Location Commercialization Ideally Suited for Sweden Paper/Pulp/Pellet Mill BFCC Capital synergies by leveraging existing assets and infrastructure at both mill and refinery sites Operating cost reductions for feedstock, natural gas, hydrogen and nitrogen by placing assets where existing costs already economized Maximum value capture for final fuels Potential hub and spoke implementation Capital Cost Allocation 16% 13% 43% BFCC/VRU Offsites (OSBL) Upgrader Refinery Upgrader 28% Woodyard 9
Planned Scale-up to Commercial Design 454 (BDT/Day) 2 000 (BDT/Day) 9,1 (BDT/Day) 0,023 (BDT/Day) 400X Scale Up 220X Scale Up Pilot Plant Demo Unit Columbus Plant Commercial Design 10
Joint Venture Partnership Opportunity Joint venture partnership with strategic parties reduces costs to each party, minimizes risk by incorporating know how and provides first mover competitive advantages. Catalyst Production and Sales Engineering and Technology Development Refining and Fuel Marketing Design and Reliability Process Development Pulp and Paper Producer 11
A Technology Solution for a Fossil Free Sweden Pulp & Paper Refining 12
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