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Renewable Diesel: Capture the Inherent Economic Value of Your Feedstock

Renewable Diesel: Capture the Inherent Economic Value of Your Feedstock

Adam Belyamani
Saola Energy LLC

Transcript

  1. RENEWABLE DIESEL: CAPTURE THE INHERENT ECONOMIC VALUE OF YOUR FEEDSTOCK

    AS A LOW CARBON FUEL National Ethanol Conference February 18, 2021 1 Adam Belyamani
  2. SAOLA ENERGY 2 Based out of Wichita, KS Technology Provider

    in Renewable Diesel Service Provider in Ethanol, Renewable Diesel and Biodiesel Providing support to multiple clients in the United States and abroad
  3. SAOLA ENERGY 3 Engineering Design Operations Project Management Complete Project

    Solution
  4. RENEWABLE DIESEL: KEY PROPERTIES VS. BIODIESEL 4 NOX Emissions (compared

    to petroleum diesel) Cloud Point (indicator of low temperature flow properties) Cetane Number (indicator of combustion quality) Energy Content Shelf Life (stability to oxidation) Blending with regular diesel > 75 Better Than Typical Petroleum Diesel IS NOT Renewable Diesel (HVO) BIODIESEL (FAME) Unlimited Limited (feedstock specific) Same as ULSD 90% ULSD 48 Lower than Typical Petroleum Diesel Unlimited 20% Max Engine manufacturers often do now warrant > 8% Tailored to Market Requirement Feedstock dependant Typically between -2C and 15C No Change +10% Typical premium for RD over FAME in the marketplace ( $1/gal ) 4 Renewable Diesel is the ultimate DROP-IN Renewable Fuel
  5. RENEWABLE DIESEL – WHERE IS THE VALUE? 5 Because suppliers

    of advanced, low carbon intensity feedstock cannot aggregate enough feedstock to fulfill the proposition, such conventional wisdom shifts the economic value downstream, away from the Feedstock Supplier ... BUT Diseconomies of Supply are more impactful than economies of scale for most bio-based feedstock value chains Feedstock Supplier Refiner Economic Value 300+ KTon/Y 100+ MMGal/y 5 Conventional Wisdom wants that Economies of Scale always drive the economics of petroleum value chains ...
  6. CAPTURING THE VALUE OF YOUR FEEDSTOCK 6 Feedstock Supplier Refiner

    Economic Value Your Low Carbon Feedstock is rewarded by... Bring the Value of YOUR FEEDSTOCK back TO YOU 5 MMGal/y 10 MMGal/y 20 MMGal/y 30 MMGal/y 6 …with a new Scaled-to-Feedstock modular approach
  7. RENEWABLE DIESEL PROCESS 7 HDO Reaction Hydrogen Production Pre-treatment Fats

    & Oils Hydrogen Make-up Nat Gas Fuel Gas Steam ISBL Renewable Diesel (HVO) Renewable Naphtha ISOM. Reaction • High degree of standardization mitigates the diseconomies of scale compared to larger units o ISBL pre-engineered o Modular design; shop fabricated • Available configuration maximizing the production of Sustainable Aviation Fuel Export Fractionation Renewable Jet Fuel (SAF)
  8. RENEWABLE DIESEL PLANT CO-LOCATED WITH AN ETHANOL BIOREFINERY 8 •

    Site is co-located with a 50 mgpy corn ethanol plant in Garnett, KS o Uses DCO from co-located facility in addition to sourcing from a nearby biorefineries • Site visits o Scheduling visits • Operational History o Original Start-up in 2016 o Increased capacity by 50% in 2017 o Upgraded H2 facility in 2019/2020 o Diesel Yield in the 90-92% range o Seamless integration with the ethanol facility
  9. RENEWABLE DIESEL PLANT CO-LOCATED WITH AN ETHANOL BIOREFINERY 9 Ethanol

    Plant Distillers Corn Oil Renewable Diesel “Scaled to Feedstock” Renewable Fuel Marketing Ethanol Renewable Diesel Steam Renewable Naphtha (Ethanol Denaturant) Shared Utilities, Infrastructure, Staff • Multiple points of synergies drive improved economics and carbon footprint for both units • Cost effective investment to diversify and improve crush margins for ethanol plants
  10. TECHNOLOGY OFFERING 10 Have partnered to provide a Renewable Diesel

    offering sized to your feedstock supply • Pre-Treatment Technology • Hydrogen Solutions • Refining know-how • EPC Contracting / Wrap • Modularization Solutions • Financing Support • Lumpsum, Turnkey EPC • NextChem acts as single point of contact for technology & EPC o Performance Guarantees • 4 standard modules: 5 -10 – 20 – 30 MMGPY (ISBL pre-engineered) o Accelerated project delivery o Ad-hoc design for different size Renewable Diesel Project • Core HDO & ISOM technology • Experience with DCO • Knowledge of corn ethanol facilities and co-location • Commissioning, start-up and operational support • Training
  11. PROJECT EXECUTION 11 • Lumpsum, Turnkey EPC • NextChem acts

    as single point of contact for technology & EPC o Performance Guarantees • 4 standard models: 5 - 10 – 20 – 30 MMGPY (ISBL pre-engineered) o Accelerated project execution o Ad-hoc design for different size Renewable Diesel Project 14-16 Months PROCUREMENT: T=1M GO: T=0 MODULES MANUFACTURING: T=3M MODULES READY: T=8–10 M SITE ASSEMBLING COMPLETED: T=12-14 M DELIVERY TO SITE: T=9-11 M Start-Up: T=14-16 M
  12. RENEWABLE DIESEL: DIVERSIFICATION AT WORK FOR CORN ETHANOL PLANTS 12

    With1 10MMGPY RD Unit Without 10 MMGPY RD Unit % SALES: IMPACT ON 100 MMGPY ETHANOL PLANT 76% 18% 6% Ethanol DDGs Distiller's Corn Oil Renewable Diesel Renewable Naphtha 65% 15% 19% 1% 1. Ethanol Plant needs to acquire ~ 44 MMlbs of DCO to complement its own production of DCO in order to support a 10 MMGPY RD facility
  13. 13 @SaolaEnergy www.linkedin.com/company/saolaenergy @SaolaEnergy