Waste becomes fuels. The world becomes better. Introduction to Enerkem BANZ Municipal Biogas Conference August 14, 2014
Enerkem at a glance Produces biofuels and renewable chemicals from garbage and other waste residues Proprietary clean technology developed in-house Private company founded in 2000 170 employees Rigorous path to commercialization with two facilities in Québec (pilot & demo) Entering commercial phase with first biorefinery in Edmonton, Alberta
World s first MSW-to-Chemicals and Biofuels facility Enerkem Alberta Biofuels
An efficient carbon-recycling process
Feedstock Flexibility
Key technology differentiating factors Low-severity operations Extensive syngas conditioning Use of proven catalysts Simplicity of manufacturing and equipment installation Feedstock flexibility - 25 types used or tested
Global waste market 98.9% OF GLOBAL ETHANOL CONSUMPTION EXCEEDS 2018 GLOBAL METHANOL DEMAND (1)Figure does not include commercial and industrial waste (2)Using Enerkem s yield
(US$/metric ton) Solving the waste problem United States Example New Landfills Permitted in the U.S. Average Remaining Life of U.S. Landfills 225 241 283 111 19 13 1981-1985 1986-1990 1991-1995 1996-2000 2001-2005 2006-2010 MSW Landfill Tipping Fees 55 ($/metric ton) 50 $48.03 45 0 20 Years 40 35 30 $31.44 $39.09 Alaska Hawaii 20 30 Years 30 40 Years 40+ Years 25 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Enerkem s technology can help municipalities divert up to 60-90% of waste that would have to be landfilled Source: Waste Business Journal (2011). Note: Average remaining life of landfill by State calculated as: remaining MSW landfill capacity (2010) divided by average MSW landfilled per year from 2000 to 2010.
Complementary to recycling and composting Source Reduction and Reuse 60% Recycling / Composting Waste Diversion rate 30% Biorefinery (chemicals, liquid fuels) Waste-to-Energy (heat, electricity) 10% Landfill
Benefits of using Municipal Solid Waste (MSW) Environmental & Social Avoids landfilling and associated methane emissions Further reduces GHG emissions Has no land use impact Complements recycling activities Reuses non-recyclable plastics Has high social acceptability: my trash is in my car Economic Cost-effective alternative to landfilling and incineration for municipalities Most affordable feedstock for biofuels production (no cost) Readily available in all regions (urban and rural) Already collected (existing infrastructure)
Large demand for biofuels and renewable chemicals The renewable chemicals market is expected to reach US$ 59 billion 1 in 2014 from about US$ 45 billion in 2009 62 countries have biofuels mandates/targets U.S. Renewable Fuels Standard calls for the production of 16 billion gallons of advanced biofuels by 2022 Total of over 100 billion litres of biofuels consumed per year Ethanol (84.6 billion litres) Biodiesel (19 billion litres) (1) Source: MarketandMarkets, 2013
(Billions GPY) Renewable Fuels Mandates in North America U.S. RFS2 (EPA) RFS mandates in Canada 40 GHG reduction 50% 30 20 2011-2022 CAGR: 9.0% GHG reduction 60% MSW-to-ethanol Federal: Average annual ethanol content mandated at 5% (2% for biodiesel). 10 GHG reduction 20% Various provinces also legislated biofuel blends: BC, AB, SK, MA, ON. 0 2011 2022 Renewable fuels (Corn-based biofuels)¹ Cellulosic biofuels Biomass-based diesel Advanced biofuels²
Enerkem partnering with the City of Edmonton Recycled 20% Composted 40% Biofuels 30% Landfill 10% Waste diversion = 90%
World s first MSW-to-Chemicals and Biofuels facility Enerkem Alberta Biofuels
Community-based commercial facilities Standard smallest scale commercial plant model 1 to 4 x is standard scale with multiple plant opportunities for most demographic regions
Modularized manufacturing approach
Economic Impact During Construction in Canada Creation of 610 direct and indirect jobs: Fabrication of parts and systems Installation of facility Total spending increase within Canada was nearly $199 million Municipal governments benefit Provincial governments benefit $5.2 million Increased property tax collection Multipliers from indirect and induced spending $16 million Increased corporate and personal income tax gains Federal government benefit $45 million Increased corporate and personal income tax collections, GST Lower Employment Income costs
Expected Economic Impact During Operation in Canada When the biorefinery will be fully operational: Creation of 152 direct and indirect permanent jobs Annual increase in net economic spending in the local area of nearly $64.5 million Municipal government benefit Provincial governments benefit $1.1 million annually Increased property tax collection Increased municipal tax collection Indirect employment benefits $2.2 million annually Enhanced corporate and personal income tax collections Federal government benefit $7.4 million annually Increased corporate and personal income tax, and GST collections Lower Employment Insurance costs
Edge Growth Strategy Chemicals and drop-ins International expansion Manufacture and sell Enerkem systems to leverage strategic partnerships In discussions with select chemical companies and on-going R&D activities In negotiations with select international partners Asia, Middle East, Europe, South America Existing strategic partners in North America. In negotiations with other groups. Build, own and operate sites and systems Westbury Demonstrationn Operational Edmonton Varennes Commercial Commercial To begin full operation Under development
Benefits of Enerkem s advanced biorefineries Economic: Creates high-quality jobs: 150 direct and indirect permanent jobs Increases net economic spending in the local area by $65 million Creates 419 direct and indirect jobs during construction phase Reduces oil imports and biofuels imports Energy: Reduces dependence on oil Diversifies energy basket and increases domestic production Contributes to meeting Renewable Fuel Standard Environmental/Social: Replaces the use of corn for the production of ethanol Solves a waste problem and avoids methane emissions from landfilling Reuses non-recyclable plastics Expected to reduce GHG emissions by 60% when compared to gasoline Offers alternative to landfilling and incineration Is a socially-accepted solution for non-recyclable/non-compostable garbage