Velocys: The Distributed GTL Solution - Oxford Catalysts Group

Velocys: The Distributed GTL Solution
March 7, 2012
Jeff McDaniel, Commercial Director

Executive Summary
Huge opportunity for GTL
– 25 million bpd of synthetic fuels potential from low value gas
– Attractive solution for shale gas monetization and gas flaring
Perfect timing
– Gas / oil arbitrage at all-time high in North America
– Strong political drivers (e.g. energy security)
– Push for cleaner fuels and flare reduction
Velocys is uniquely positioned
– Enabling technology solution for distributed scale GTL
– Exhaustive global patent protection
– At cusp of commercialization
– Capable partners who will provide modular solutions
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GTL Today = Massive Scale
Shell’s Pearl GTL in Qatar
– ~$19B price tag
– 140,000 bpd + 120,000 bpd of NGL
SASOL Oryx also in Qatar
– $1B for 34,000 bpd
– 60m tall, 2,200 ton reactors
Chevron Escravos GTL in Nigeria
– $6B
– 34,000 bpd, using SASOL technology
ExxonMobil: Methanol to Gasoline
– New Plymouth, New Zealand (‘85-’95)
– 14,500 bpd, 82% gasoline product
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GTL Tomorrow = Distributed Scale
Modular
– Suitable for remote locations
– Capacity = 1,000 – 15,000 bpd
Lower Risk
– Smaller plants smaller
investments
– Investment can be phased
Reduced Costs
– Shop fabricate units
– Modules / plant ‘designed once’
– Possible integration with existing facilities
More Opportunities
– Larger number of suitable gas fields
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Gas to Liquids Pathways
Offshore
Velocys
Steam
Reforming
CO / H 2
Velocys
Fischer
Tropsch
Syncrude
Blend into
crude
Onshore
Auto
Thermal
Reforming
CO / H 2
Velocys
Fischer
Tropsch
Syncrude
OR
Blend into
crude
Hydrocracking
Diesel or
Jet Fuel
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Enabling Fischer Tropsch
Technology

Microchannel Process Technology
Conventional
Microchannel
~ 1” for FT
Enhanced
mass & heat
transfer
Characteristic
dimension
~ 0.1-
5 mm
7

Velocys Fischer-Tropsch Reactor Core
Close integration of exothermic
Fischer-Tropsch synthesis and
steam generation
8

Microchannel technology systems
outperform conventional reactors
Controls reactions at
optimal conditions
Accelerates processes
by 10 – 1,000 fold
Allows use of novel,
much more active
catalysts
Enables smaller, more
productive reactors
FT Reactor Core
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Demonstration & Commercial FT Reactors
2010 2011 2012
0.5 bpd 25 bpd 125 bpd
50X
5X
10

Highest FT Catalyst Productivity
Catalyst Productivity
(kg/m 3 /hr)
1600
1400
1200
1000
800
600
400
200
0
Fixed Bed Slurry Bed OCG
(Shell)
(SASOL)
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Catalyst Design
Exceptional Stability & Selectivity
Test
Stand
upset
Dilute gas
and longer
contact
time
Very low
deactivation
400+ Days without
Regeneration
Time on Stream (days)
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Industry Recognition
Kirkpatrick Chemical Engineering Achievement Award (2011)
– Most noteworthy technology commercialized anywhere in the world
Rushlight Fossil Fuel’s Award and Energy Environment Award (2011)
– Recognises leading energy, resource and environmental technologies/ innovations
Institution of Chemical Engineers’ Innovative Product Award (2010)
– Recognises the best product from the process industries
ChemInnovations’ Award (2010)
– Organised by Chemical Engineering magazine
Chemical Industries Association’s Innovation Award (2010)
– 6 finalists including: Johnson Matthey; Eli Lilly; Huntsman
World XTL Award (2010)
– Finalists included: ENI / IFP / Axens; Oryx GTL; Shell; Technip
Energy Institute’s Innovation Award (2009)
– 6 finalists including Shell UK; presented by Exxon Mobil
ICIS’ Innovation Award; SME(2009)
– Sponsored by Dow Corning; 13 finalists
US National Academy of Sciences’ highest ranking (2009)
– For Velocys’ successful $5 million hydro-processing grant proposal
TechColumbus’ Green Innovation Award (2008)
R&D 100’s Award (2008)
– Known as the “Oscars of Innovation”
13

Global Patent Position

Velocys Has >25,000 Patent Claims
0 1000 2000 3000 4000 5000 6000 7000 8000
United States
Europe, Russia
Canada
China
Granted Claims
Pending Claims
Japan
Australia
South Korea
South Africa
Other
More than half of all
granted and pending
Velocys patent claims
are related to GTL
15

Overview of Velocys’ GTL Estate
Categories of GTL Patents (SMR + FT)
1. Planned for use in Velocys’ current GTL products and
processes,
2. Anticipated to be useful for future GTL products and
processes,
3. Useful for preventing competitors from offering alternative
compact, modular GTL processes.
Currently ~250 granted patents in the above categories with
7,500+ granted claims
Currently about 200 patents pending, approx. 6,000 pending claims
Owned by Velocys/Oxford Catalysts or exclusively licensed from
Battelle Memorial Institute
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Cusp of Commercialization

Facilities with Velocys Reactors
Confidential
U.S. GTL facility
in 2013
Confidential
0.5 bpd
GTL in 2012
Velocys
Pilot Plant
0.5 bpd
GTL in 2012
SGC Energia
Güssing, Austria
0.5 bpd
BTL in 2010
Confidential
FT in 2012
Petrobras
Fortaleza, Brazil
6 bpd
GTL in 2011
Microchannel FT
Microchannel FT and SMR
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BTL Field Demonstration
FT technology demonstrated at the unique
showcase “eco-town” of Güssing, in Austria
Fully funded by BTL / WTL partner, SGC Energia
Demonstration conducted 2010 – 2011 on
gasified wood
Güssing
FT demonstration unit
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Güssing Accomplishments
FT reactor operated for an extended period
– ~1800 hours and produced ~2.8 metric tons of product
– Available 100% of the time clean syngas was available
Steady performance
– Excellent temperature control
– Handled relatively rapid changes in H2/CO ratios
– Pressure drop in the process channels was consistent
Demonstrated ability to handle disruptions
– 193 syngas interrupts, 32 upsets and 36 shutdowns
– Responded well to changes and shutdowns
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GTL Field Demonstration
Small scale GTL to be demonstrated at
Petrobras in Fortaleza, Brazil in 2012
Offshore GTL partners: Toyo Engineering,
MODEC and Petrobras
Installation complete, commissioning underway
2,000 bpd GTL facility will occupy
only ~¼ of deck space
21

Velocys Pilot Plant & Training Facility
The Velocys Pilot Plant
Fully integrated microchannel SMR,
FT & hydro-cracking pilot plant and
operator training facility (0.5 bbl/day)
Stage I complete: SMR operational
Stage II SMR & FT: operational Q3
Successful SMR Operations
1,000 hours operation of ~0.6 bbl/day
SMR reactors have demonstrated
robustness after multiple shutdowns and restarts
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Modular GTL Solutions

Complete GTL Solution Partners
Technology
Resource
Holders
Modular
GTL
Engineering
&
FPSO
Field
Services
Equipment
&
Modules
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Deployment Options for Modular GTL
Synthetic Crude
Onshore or offshore
Minimum scale = 500 bpd
Associated gas
FT product blended with
crude and shipped via
pipeline
Product pricing
comparable to WTI
Finished Products
Onshore only
1,000 – 15,000 bpd
Associated or stranded gas
Products shipped
separately
Diesel sold at premium to
ultra-low sulfur diesel
Naphtha price dependent
upon location
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Fully Integrated Design for Offshore GTL
24m
Capacity = 1,000 bpd

Summary
The time has come for distributed scale GTL
– Gas arbitrage, shale gas reserves, flare gas, stranded gas, remote
locations, energy security, cleaner fuels legislation
Huge market opportunity
– 25 million bpd of synthetic fuel could be made by distributed scale GTL
Velocys: leader in advanced distributed scale GTL technology
– 15 years and $300 million invested in its unique innovative technology
– Exhaustive global patent protection (>7,500 granted GTL claims)
– First class partners
At cusp of commercialization
– 1 demonstration complete, 2 coming up, plus Velocys Pilot Plant in Q3
– Manufacturing successfully ramping up; commercial organisation
expanding
– Ready for further / larger commercial orders
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Jeff McDaniel Phone: 614-348-5029
www.velocys.com
Email: mcdaniel@velocys.com
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