Honeywell Confidential4 2 nd Generation Biofuels Non-food crop based lignocellulosic feedstock –Forest and agricultural residual biomass –Algal biomass Feedstock plays a key role –Availability –Sustainability –Quality –Cost-efficient supply Offer an interesting opportunity for pulp & paper, power generation and other industries to –Become fossil fuel free –Reduce CO 2 emissions –Generate new business Price development of crude oil? Price development of CO 2 permits? Taxation and subsidies?
Honeywell Confidential5 World Energy Outlook The world energy challenge is enormous –Global energy demand will increase 1.5 % per year until 2030 From 12 (2007) to 16 Billion tons oil equivalent –CO 2 emissions, Gt/year 28.8 (2007) 40.2 (2030) –CO 2 emission price, $/ton CO 2 ~15 (2009) 50 (2020) –Oil price, $/barrel 60 (2009) 115 (2030) Investments in low-carbon technology are needed –To reduce dependency in fossil fuels –To reduce CO 2 -emissions in to the atmosphere 1000 ppm CO 2 vs. 450 ppm CO 2 scenario Global temperature rising by +6 °C vs. +2 °C Key segments Buildings – energy efficiency Power Generation and Industry –Low carbon energy and Carbon Capture and Storage (CCS) Transportation –Biofuels Source: World Energy Outlook 2009, International Energy Agency (IEA)
Honeywell Confidential6 The EU Climate and Energy Package Known as 20-20-20 targets -A reduction in EU greenhouse gas emissions of at least 20% below 1990 levels -A 20% reduction in primary energy use compared with projected levels, to be achieved by improving energy efficiency -20% of EU energy consumption to come from renewable resources Source: European Union/European Commission
Honeywell Confidential7 Biofuels for Transportation in EU Source: EurObserv’ER 2010 12 MtOE 2009 Mainly 1st generation biofuels!
Honeywell Confidential8 The Future of Aviation Source: Airbus, 2010
Honeywell Confidential9 Honeywell Renewables Vision Building on Honeywell UOP technology and expertise Produce real “drop-in” fuels instead of fuel additives/blends Leverage existing refining, transportation, energy, biomass handling infrastructure to lower capital costs, minimize value chain disruptions, and reduce investment risk. Focus on path toward second generation feedstocks & chemicals “Other” Oils: Camelina, Jatropha Lignocellulosic biomass, algal oils Second Generation Oxygenated Biofuels Biodiesel Ethanol Hydrocarbon Biofuels JetDiesel Gasoline First Generation Natural oils from vegetables and greases Fuel & Power Fuel & Power Renewable Energy UOP Proprietary
Honeywell Confidential10 LIGNO- CELLULOSIC BIOMASS BIO-CHEMICAL THERMO-CHEMICAL Lignin & Extractives Cellulose Hemicellulose Starch Fermentation Sugars Biomaterials Ethanol Algal, Jatropha, Camelina Esterification Pyrolysis Gasification Fischer- Tropsch Upgrade Green Jet Green Diesel Pyrolysis Oil Phase separ. Distillation Heat, Electricity, Steam Chemicals Bioenergy Forest res. Agriculture res. Re-cycled wood Green Jet Green Diesel RTP, Rapid Thermal Processing Modular units for 100 to 1.000 ton bone dry metric ton/day Honeywell UOP/Eni Ecofining Envergent Technologies RTP TM Honeywell UOP Renewables, Gas Processing, Refining Rentech (Fischer-Tropsch synthehis) Pyrolysis Upgrade Commercial availability expected 2012 Honeywell Core Technologies for 2 nd Generation Biofuels
Honeywell Confidential11 Potential of Pyrolysis Oil SA Source: IEA, European Market Sutudy for BioOil (Pyrolysis Oil), 2006
Honeywell Confidential13 Fast Pyrolysis Has been identified as one innovative value chain in European Industrial Bioenergy Initiative (EIBI) Cost-efficient pathway to second generation biofuels Interesting findings in Canada –Pyrolysis gives highest ROCE in stand-alone and integrated applications (FPAC, Forest Products Association of Canada 2010) Source: Forest Products Association of Canada
Honeywell Confidential14 Envergent Technologies Honeywell UOP / Ensyn Joint Venture Formed in October 2008 Provides pyrolysis oil technology for fuel oil substitution and electricity generation Channel for Honeywell UOP R&D program to upgrade pyrolysis oil to transportation fuels Leading process technology licensor~$2 billion in sales, 3000 employees Co-inventor of FCC (Fluid Catalytic Cracking) technology Modular process unit supplier Global reach via Honeywell & UOP sales channels Over twenty years of commercial fast pyrolysis operating experience Developers of innovative RTP TM fast pyrolysis process Seven commercial RTP TM units designed and operated
Honeywell Confidential16 Pyrolysis Oil to Energy & Fuels Vision Phased Commercialization
Honeywell Confidential17 RTP TM Delivery & Scope of Supply Standard sized modular units offered –100, 200, 400 and 1000 Bone Dry Metric Tons per Day (BDMTPD) –Design adjusted to meet site specific requirements Design based on hardwood sapwood –If alternate feedstock being processed, unit performance to be re-rated –Unit performance is guaranteed Broad modular experience in refining, petrochemical and oil & gas industries Modular Delivery Provides Faster Execution and Higher Reliability
Honeywell Confidential18 RTP TM Operating History & Commercial Experience Commercialized in the 1980’s 7 units designed and operated in the US & Canada Continuous process with >90% availability Significant Commercial Experience Plant Year Built Operating Capacity (Metric Tonnes Per Day) Location Manitowoc RTP TM – 1199330Manitowoc, WI, USA Rhinelander RTP TM – 1199535Rhinelander, WI, USA Rhinelander Chemical #219952Rhinelander, WI, USA Rhinelander RTP TM – 2200145Rhinelander, WI, USA Rhinelander Chemical #320031Rhinelander, WI, USA Petroleum Demo # 12005300 barrels per dayBakersfield, CA, USA Renfrew RTP TM – 1 (Owned and operated by Ensyn) 2007100Renfrew, Ontario, Canada Note: design basis for wood based plants assumes feedstocks with 6 wt% moisture content.
Honeywell Confidential19 Feedstock Sources Cellulosic Feedstocks Widely Available Forestry and Pulp and Paper Wood chips, sawdust, bark Forestry residues Agricultural Residues – corn stover, expended fruit bunches from palm (EFB), bagasse Purpose-grown energy crops – miscanthus, elephant grass Post-consumer Construction and Demolition Waste, Categories 1&2 Municipal solid waste (future)
Honeywell Confidential20 Feed Handling / Preparation Water is a heat sink Dried to 5-6 wt% moisture content for efficient RTP TM reactor operation Size impacts heat transfer Biomass sized to 0.125- 0.25 inch (3-6 mm) Capacity of unit expressed on bone dry feed basis BDMTPD Zero water content RTP TM is Self-Sustaining – Excess Heat Dries Raw Biomass
Honeywell Confidential21 RTP TM Product Yields Feed, wt% Whitewood Hardwood100 Typical Product Yields, wt% Dry Feed Pyrolysis Oil70 By-Product Vapor15 Char15 Second Generation Feedstock Flexible With High Yields of Pyrolysis Oil Biomass Feedstock Type Typical Pyrolysis Oil Yield, wt% of Dry Feedstock Hardwood70 – 75 Softwood70 – 80 Hardwood Bark60 – 65 Softwood Bark55 – 65 Corn Fiber65 – 75 Bagasse70 – 75 Waste Paper60 – 80 400 BDMTPD of Whitewood Hardwood Yields For Various Feeds
Honeywell Confidential22 RTP TM Pyrolysis Oil Properties Suitable for Energy Applications Comparison of Heating Value of Pyrolysis Oil and Typical Fuels Pourable, storable and transportable liquid fuel Energy densification relative to biomass Contains approximately 50-55% energy content of fossil fuel Requires separate storage from fossil fuels FuelMJ / Litre BTU / US Gallon Methanol17.562,500 Pyrolysis Oil19.971,500 Ethanol23.584,000 Light Fuel Oil (#2)38.9139,400
Honeywell Confidential24 Pyrolysis Oil Energy Applications Multiple Applications for Pyrolysis Oil, a Renewable Fuel Available Today Replacement of fossil fuel for heat/steam generation Co-firing with coal Production of green electricity Alternate revenue stream from external sale Future upgrading to transportation fuels
Honeywell Confidential25 Pyrolysis Oil: Alternate Revenue Stream Development of pyrolysis oil as a well-defined commodity critical to success –Producer and consumer confidence ASTM standard specification for use of pyrolysis oil in industrial burners is a key first step PROPERTYVALUETEST METHOD Gross Heat of Combustion, MJ/kg Point, o C 15 minASTM D240 Pyrolysis Solids Content, wt% 2.5 maxASTM D7544, Annex I Water Content, wt% 30 maxASTM E203 pHreportASTM E70 Kinematic Viscosity, cSt @ 40 °C 125 maxASTM D445 Density, kg/dm 3 @ 20 °C 1.1 – 1.3ASTM D4052 Sulfur Content, wt% 0.05 maxASTM 4294 Ash Content, wt%0.25 maxASTM 482 Flash Point, o C45 minASTM D93, Procedure B Pour Point, o C-9 maxASTM D97 ASTM D7544, Standard Specification for Pyrolysis Liquid Biofuel Comparison of Cost of Selling PyOil vs. Making PyOil
Honeywell Confidential26 Pyrolysis Oil vs. Fossil Fuel LCA Pyrolysis Oil Production foot print similar to fossil energy alternatives Assumed biomass transport distances 200 km for logging residues 25 km for short rotation forest crops Pyrolysis Oil Life Cycle foot print Greener than other alternatives Carbon neutral combustion emission 70-88% lower GHG emissions SO x emissions similar to Natural Gas
Honeywell Confidential27 Pyrolysis Oil: Upgrading to Green Transportation Fuels Objectives –Remove oxygen molecules –Reduce acidity and viscosity –Break up molecules to make gasoline and diesel/jet precursors –Commercialization expected in 2012 Solution –Thermochemical upgrading; leverage UOP’s extensive hydroprocessing experience –Continuous, reliable guaranteed process, per current refinery standards Achieved in Lab, Working on Scale-up
Honeywell Confidential28 Integrated Biorefinery Demo - Biomass to Transport Fuels Honeywell UOP received $25M DOE grant Plant to be built at Tesoro/Hawaii refinery, operated by UOP Will include RTP TM and pyrolysis oil upgrading 2 nd Generation feedstocks to include –Corn Stover –Cane Bagasse –Grasses –Sugar Corn –Algae Biomass –Forest Residue Demonstration to be complete in three years
Honeywell Confidential30 Conclusions Global and European climate targets address the need of renewable energy, 2 nd generation biofuels and low-carbon technologies RTP TM is commercially proven, mature technology ready for industrial use –Seven units designed and operated Reliable operation with 90% on-line availability Designed to maximize pyrolysis oil yield, 70 wt% based on hardwood sapwood feed Cost competitive with fossil fuel oil Engineering and modular delivery by world- renowned industry leader Upgrading technology to transportation fuels expected to be available in 2 years
Honeywell Confidential31 Thank You! Contact information Kari Liukko:email@example.com