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Renewable Biogenic Fuel Fuel from Fats, Oils, & Greases.

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Presentation on theme: "Renewable Biogenic Fuel Fuel from Fats, Oils, & Greases."— Presentation transcript:

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2 Renewable Biogenic Fuel Fuel from Fats, Oils, & Greases

3 Renewable Diesel = True Hydrocarbon Feedstock utilized is animal fats, oils, greases. Feedstock utilized is animal fats, oils, greases. Thermally cracked/distilled, yields clean fuel. Thermally cracked/distilled, yields clean fuel. Molecularly identical to petroleum diesel, but without the odor and 86% less emissions. Molecularly identical to petroleum diesel, but without the odor and 86% less emissions. The only process byproduct is H2O – Water. The only process byproduct is H2O – Water. 2

4 Biogenic Feedstocks 3 Uses existing thermal fluidic catalyst cracking USA patented technology. Uses existing thermal fluidic catalyst cracking USA patented technology. Biological feedstocks from existing sources. Biological feedstocks from existing sources. 200 existing animal processing plants in USA. 200 existing animal processing plants in USA. 100% of each animal processed is utilized. 100% of each animal processed is utilized. FOG (fats, oils, greases) are the feedstocks. FOG (fats, oils, greases) are the feedstocks. FOG is a market traded commodity. FOG is a market traded commodity. Net annual FOG production =10 billion lbs. Net annual FOG production =10 billion lbs.

5 Congress/Presidential Support 1990, National Biodiesel Board established.1990, National Biodiesel Board established. 24 years of serving the American biofuel market.24 years of serving the American biofuel market. Domestic RFS support for biodiesel industry.Domestic RFS support for biodiesel industry. 300 companies representing USA production.300 companies representing USA production. 1992, EPACT biodiesel use approved by Congress.1992, EPACT biodiesel use approved by Congress. 1996, biodiesel fuel suppliers register with EPA.1996, biodiesel fuel suppliers register with EPA. 1998, E.O.#13101 bio-based products/gov’t use.1998, E.O.#13101 bio-based products/gov’t use. 1999, E.O.#13134 for expanded biodiesel use.1999, E.O.#13134 for expanded biodiesel use. 2000, EPA Tier I & II Clean Air Act, biodiesel met.2000, EPA Tier I & II Clean Air Act, biodiesel met. 4

6 Congress Supports US Biodiesel Industry 5

7 Biodiesel Industry = Domestic Growth & Security Biodiesel industry supports 62,000 jobs. Biodiesel industry supports 62,000 jobs. Biodiesel industry creates $2.6 billion in wages. Biodiesel industry creates $2.6 billion in wages Biodiesel production = 1.56 billion gal Biodiesel production = 1.56 billion gal. Biodiesel sale of RINS Renewable Identification Numbers = average $.44/gal. Biodiesel sale of RINS Renewable Identification Numbers = average $.44/gal. Production Tax Credit, biodiesel = $1.00/gal. Production Tax Credit, biodiesel = $1.00/gal. 6

8 Energy Paradigm Change 7

9 OPEC crude oil supply & price fluctuations due to “fear premium” of political instability. 8 Crude oil is a finite resource. Crude oil is a finite resource. 56% of US supply imported from OPEC. 56% of US supply imported from OPEC. US proven reserves & leases = 5.23 years annual consumption. US proven reserves & leases = 5.23 years annual consumption.

10 OPEC crude oil price fluctuations causation for US recessions. The 3 longest recessions in the US since great depression concurred with peak oil prices – 1973 – 1981 – The 3 longest recessions in the US since great depression concurred with peak oil prices – 1973 – 1981 –

11 Secure domestically sourced biogenic hydrocarbon fuel is here. 10

12 Dynamic Fuel LLC - Geismar Louisiana Refin Dynamic Fuel LLC - Geismar Louisiana Refinery Produces 5,000 barrels/day synthetic diesel. Produces 5,000 barrels/day synthetic diesel. Sales to open market and specialized niches. Sales to open market and specialized niches. Utilize in-house feedstock or market purchased. Utilize in-house feedstock or market purchased. Feedstock utilized is animal fats, oils, greases. Feedstock utilized is animal fats, oils, greases. Utilize existing petroleum infrastructure. Utilize existing petroleum infrastructure. Thermally cracked/distilled, yields clean fuel. Thermally cracked/distilled, yields clean fuel. Molecularly identical to petroleum diesel, but without the odor and 86% less emissions. Molecularly identical to petroleum diesel, but without the odor and 86% less emissions. The only process byproduct is H2O – Water. The only process byproduct is H2O – Water. 11

13 Dynamic’s Strategy/Methodology Domestically sourced & produced. Domestically sourced & produced. Combine talents. Combine talents. Maximize profits of in-house raw material. Maximize profits of in-house raw material. Maximize in-house intellectual property. Maximize in-house intellectual property. Utilize domestic uninterruptible supply chain. Utilize domestic uninterruptible supply chain. Maximize buy/sell from/to supply chain. Maximize buy/sell from/to supply chain. Supply chain is not price volatile. Supply chain is not price volatile. Supply chain will not diminish but expand. Supply chain will not diminish but expand. Capture gov’t tax credits. Capture gov’t tax credits. 12

14 Dynamic’s Strategy/Methodology Create profit from Renewable Diesel RIN sales. Create profit from Renewable Diesel RIN sales. Capture an energy production niche market. Capture an energy production niche market. Add to gross domestic product, create US jobs. Add to gross domestic product, create US jobs. Utilize existing petroleum technology, adapt it. Utilize existing petroleum technology, adapt it. Utilize existing petroleum transportation system. Utilize existing petroleum transportation system. Utilize existing petroleum pipeline/distribution system. Utilize existing petroleum pipeline/distribution system. 13

15 Dynamic’s Shareholder Responsibility Projected annual revenue of $250 million from sales of clean biogenic diesel, jet fuel, and RINs. Projected annual revenue of $250 million from sales of clean biogenic diesel, jet fuel, and RINs Dynamic Fuel LLC, formed utilizing a Limited Liability Corporation between Tyson Foods and Syntroleum Inc Dynamic Fuel LLC, formed utilizing a Limited Liability Corporation between Tyson Foods and Syntroleum Inc. Embracing the Triple Bottom Line 3BL business model, invested $150 million in 2010 to build the Geismar Plant. Embracing the Triple Bottom Line 3BL business model, invested $150 million in 2010 to build the Geismar Plant. Fuel certified as ASTM Diesel and Jet, fuel market purchases all the fuel Dynamic can produce (75 million gallons-year). Fuel certified as ASTM Diesel and Jet, fuel market purchases all the fuel Dynamic can produce (75 million gallons-year). Fuel outperforms petroleum competition, 86% cleaner. Fuel outperforms petroleum competition, 86% cleaner Annual revenue of $250+ million, the Benefit Cost Ratio to construct and conduct business is 1.54 = YES Annual revenue of $250+ million, the Benefit Cost Ratio to construct and conduct business is 1.54 = YES. Congress continues support of Renewable Fuel Standard volume production (2013) of 1.7 billion gallons year. Congress continues support of Renewable Fuel Standard volume production (2013) of 1.7 billion gallons year. 14

16 Dynamic’s Social Responsibility 300 well paying jobs were created during construction, adding value to the community/region. 300 well paying jobs were created during construction, adding value to the community/region. 65 well paying long-term full-time refinery jobs created in Geismar Louisiana as well as Renewable Operations Management positions within Tyson Foods (Arizona) and Syntroleum. 65 well paying long-term full-time refinery jobs created in Geismar Louisiana as well as Renewable Operations Management positions within Tyson Foods (Arizona) and Syntroleum. Annual production-sales of 75 million gallons of domestically produced, clean diesel & jet. Annual production-sales of 75 million gallons of domestically produced, clean diesel & jet. Infuses $250+ million-year into US economy. Infuses $250+ million-year into US economy. 15

17 Dynamic’s Environmental Responsibility Recycling/thermal cracking distillation of biological fats, oils, & greases. Recycling/thermal cracking distillation of biological fats, oils, & greases. Produces carbon-neutral liquid hydrocarbon clean diesel/jet fuel. Produces carbon-neutral liquid hydrocarbon clean diesel/jet fuel. Domestic Production of 75 million gallons-year. Domestic Production of 75 million gallons-year. Singular process by-product is H2O, water (water:2.3%, diesel: 83.2%, light gases:14.5%). Singular process by-product is H2O, water (water:2.3%, diesel: 83.2%, light gases:14.5%). Fuel tailpipe emissions are 86% cleaner than petroleum-diesel via GREET Life Cycle Analysis called Well-To-Wheel. Fuel tailpipe emissions are 86% cleaner than petroleum-diesel via GREET Life Cycle Analysis called Well-To-Wheel. Fuel produces 10% more Btu/hr per gallon than petroleum so less fuel is needed. Fuel produces 10% more Btu/hr per gallon than petroleum so less fuel is needed. 16

18 Market Outreach Mazda 6 Racing Team at Rolex 24 Daytona burns Dynamic biodiesel Skyactive-D 400 hp diesel engines running Dynamic fuel. Mazda purchases Dynamic fuel for racing program. Meet all US and Japan emissions. requirements without catalytic reduction or lean-NOx traps. Dynamic fuel provides clean, smokeless combustion and features a cetane in the 70s compared to petroleum’s 40 cetane. Dynamic fuel provides clean, smokeless combustion and features a cetane in the 70s compared to petroleum’s 40 cetane. It is also foam resistant and has 86% cleaner emissions It is also foam resistant and has 86% cleaner emissions. 17

19 Market Outreach US Navy’s Great Green Fleet Exercises burns Dynamic biodiesel In 2012 the US Navy purchased 450,000 gallons of Dynamic Fuel to blend. 350,000 gallons to blend with ship-diesel and 100,000 gallons to blend with aviation-jet. In 2012 the US Navy purchased 450,000 gallons of Dynamic Fuel to blend. 350,000 gallons to blend with ship-diesel and 100,000 gallons to blend with aviation-jet. Fuel is carbon-neutral, no GHG gases. Fuel is carbon-neutral, no GHG gases. Fuel energy-density produces 10% more Btu/hr per gallon than petroleum-diesel. Fuel energy-density produces 10% more Btu/hr per gallon than petroleum-diesel. 18

20 Viability Assessment of biogenic thermally cracked hydrocarbon fuel production SUPPLY CHAIN & INFRSTRUCTURE SUPPLY CHAIN & INFRSTRUCTURE Domestic supply chain for FOG. Domestic supply chain for FOG. Supply of FOG independent to use for fuel, not linked to fuel use demand. Supply of FOG independent to use for fuel, not linked to fuel use demand. Uses existing petroleum cracking technology. Uses existing petroleum cracking technology. Uses existing petroleum industry siting, permitting, construction & maintenance. Uses existing petroleum industry siting, permitting, construction & maintenance. Uses existing petroleum transportation & distribution system. Uses existing petroleum transportation & distribution system. May purchase and utilize existing petroleum plant and upgrade. May purchase and utilize existing petroleum plant and upgrade. CORPORATION/MODEL & CONGRESSIONAL SUPPORT CORPORATION/MODEL & CONGRESSIONAL SUPPORT Limited Liability Corporation suggested business type. Limited Liability Corporation suggested business type. Triple Bottom Line business model compliant/suggested. Triple Bottom Line business model compliant/suggested. Participate in federal RD renewable diesel energy tax credit. Participate in federal RD renewable diesel energy tax credit. Participate in RIN sales. Participate in RIN sales. Membership of 300 companies in Biodiesel Board, est Membership of 300 companies in Biodiesel Board, est Current Congressional support of 2014 Renewable Fuel Standard of 1.7 billion gallons/year production. Current Congressional support of 2014 Renewable Fuel Standard of 1.7 billion gallons/year production. 19

21 Viability Assessment of biogenic thermally cracked hydrocarbon fuel production FINANCIALS FINANCIALS Present Value = $250,000,000/(1+.08) (1)=$231,000,000. Present Value = $250,000,000/(1+.08) (1)=$231,000,000. Present Cost = $150,000,000/(1+.08)(0)=$150,000,000. Present Cost = $150,000,000/(1+.08)(0)=$150,000,000. Net Present Value = $250,000,000 – $150,000,000/(1+.08)(0) = $100,000,000. Net Present Value = $250,000,000 – $150,000,000/(1+.08)(0) = $100,000,000. Benefit Cost Ratio = $231,000,000/$150,000,000 = 1.54 Benefit Cost Ratio = $231,000,000/$150,000,000 = 1.54 Discounted BCR, 30 8% = $22,956,163/$14,906,599 = 1.54 Discounted BCR, 30 8% = $22,956,163/$14,906,599 = 1.54 Financial data points to a positive investment. Financial data points to a positive investment. 20

22 Referencesand Visual Aids References and Visual Aids 21 REFERENCES Biodiesel Board (2014) America’s Advanced Biofuel, retrieved from website on http://www.biodiesel.org/ California Air Resource Board (2009). Detailed California-Modified GREET Pathway for Co-Processed Renewable Diesel Produced from Tallow (US Sourced), retrieved from website on http://www.arb.ca.gov/fuels/lcfs/092309lcfs_tallow_rd.pdf California.gov (2014). What’s in a barrel of crude oil? Retrieved from website on http://energyalmanac.ca.gov/gasoline/whats_in_barrel_oil.html Congressional Research Service (2013). Analysis of Renewable Identification Numbers (RINs) in the Renewable Fuel Standard (RFS), retrieved from website https://www.fas.org/sgp/crs/misc/R42824.pdf on https://www.fas.org/sgp/crs/misc/R42824.pdf Dynamic Fuels LLC (2014). Retrieved from website on http://www.dynamicfuelsllc.com/ North Carolina Department of Environment and Natural Resources (2014). Fats, Oil, and Grease, retrieved from website on PennEnergy (2014). A Brief History of Oil Prices and Middle East Tensions, Fear of a Black Gold Shortage, retrieved from website on Princeton University (2012). Synthetic fuels could eliminate entire U.S. need for crude oil, create ‘new economy', retrieved from website on IHS Chemical (2014). Fats and Oils Industry Interview, retrieved from website on http://www.ihs.com/products/chemical/planning/ceh/fats-and-oils-industry.aspx Render Magazine (2014). California awards million for biofuel, retrieved from website awards-millions/ on http://www.rendermagazine.com/articles/2013-issues/april-2013/california- awards-millions/ RSB Services Foundation (2013). Dynamic fuels earns roundtable on sustainable biofuels (RSB) certification, retrieved from website on Tech Topics (2010). Survey Says: A Snapshot of Rendering, retrieved from website https://d10k7k7mywg42z.cloudfront.net/assets/4dcab683dabe9d1c690006ed/techtopicsapr11.pdf on https://d10k7k7mywg42z.cloudfront.net/assets/4dcab683dabe9d1c690006ed/techtopicsapr11.pdf U.S. Department of Energy (2014). The Energy Lab, Gasifipedia, Fuels, Fischer-Tropsch Process, retrieved from website on U.S. Energy Association (2014). U.S. Inputs to Biodiesel Production, retrieved from website on http://www.eia.gov/biofuels/biodiesel/production/table3.pdf U.S. Energy Information Association (2014). How much oil does the United States consume each year? retrieved from website on U.S. Environmental Protection Agency (2014). MSW Municipal Solid Waste Generation, Recycling, and Disposal in the United States: Facts and Figures for 2011, retrieved from website on http://www.epa.gov/osw/nonhaz/municipal/pubs/MSWcharacterization_508_053113_fs.pdf U.S. Environmental Protection Agency (2014). Food Recovery Challenge, retrieved from website on http://www.epa.gov/foodrecoverychallenge/ U.S. Navy (2014). Great Green Fleet – Biodiesel Fueled, retrieved from website on http://greenfleet.dodlive.mil/energy/great-green-fleet/ VISUAL AIDS CA.gov (2014). Graphic, what’s in a barrel of oil? Dynamic Fuels LLC (2014). Photo of a bio-synfining plant. Energy Information Administration (2014). Graphics of imported crude, crude reserves, crude oil field production. PennEnergy.com (2014). Graphic of OPEC supply spare capacity.


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