UOP 7340-0

UOP Renewable Energy & Chemicals

Renewable Fuels Integrated with Petroleum Refineries and Existing Infrastructure

Anjan Ray

April 18, 2016

May 11, 2016 Symposium on Biofuels and Bio-Energy New Delhi, India

© 2016 UOP LLC. A Honeywell Company All rights reserved.

The Goals: Reduce Fossil Energy Import Dependence and Emissions Simultaneously

1

UOP 7301A-1

India’s Commitment to Emissions Reduction

Action Proposed on Multiple Fronts

India INDCs – Towards Climate Justice, Ministry of Environment, Forests & Climate Change, 2015

Philip Massey, PwC, India: Emission Targets and Implications for Business, 2015

• Goal: Reduce emissions

intensity of GDP by ~33-35%

(2030 vs 2005)

• Avoided emissions ~ 3.59B tons

CO2e over BAU

• Thrusts on renewable energy,

green transport

• Urban air quality issues

Euro-VI transition

Ban on open biomass

burning

• Linkages to Swachh Bharat

Mission, Make in India

How ambitious is India’s 33-35% GHG intensity reduction target?

Ca

rbo

n In

ten

sit

y (

tCO

2/$

m G

DP

20

14

) 600

500

400

300

200

100

-2000 2005 2010 2015 2020 2025 2030

Businessas Usual

(-1.4% per year)

Paris Target(-2.1% per year)

Global Average2ºC Pathway

(-6.3% per year)

2

Drop-in Renewable Fuels for India

• Pipeline-compatible distillate fuels – seamless adaptation

- No separate handling, storage, distribution infrastructure needed unlike biodiesel (FAME, fatty acid methyl ester) or ethanol

• Comparable or superior quality – supports move to Euro-VI

- Ultralow sulfur, ultrahigh cetane (Green Diesel)

- Higher energy density (Green Diesel, Green Jet Fuel)

- Lower sulfur (HR F-76 Renewable Marine Fuel)

• High OEM acceptability

- European and Japanese automakers favor green diesel over FAME biodiesel

- 100% green diesel approved in select Mercedes, Volvo and Scania trucks

- Major aircraft engine and Auxiliary Power Unit (APU) manufacturers supported ASTM D7566 specification for Bio-SPK (Green Jet)

• Biomass-derived partially renewable gasoline and diesel

- Creates incentive for farmers not to burn biomass in the fields

- Converts locally available waste carbon to renewable fuels

UOP 7340-3

3

4Product Quality from the Ecofining™ process

and the UOP Renewable Jet Fuel Process™

Jet A-1

Spec.

50/50

Blend

Green

Jet

Flash Point, °C 38 min 46 45

Freeze Point,

°C

-47 max -57 -57

Energy

Density, MJ/kg

42.8 min 43.6 43.9

Thermal

Stability

Baseline Excellent Excellent

Aromatics 8 min

25 max

8.5 Nil

Green

Jet

ULSDFAME

Biodiesel

Green

Diesel

Oxygen, % 0 11 0

Cetane 40-55 50-65 75-90

Energy

Density, MJ/kg

43 38 44

Sulfur, ppm <10 < 2 < 2

Cold Flow Baseline Poor Excellent

Oxidative

Stability

Baseline Poor Excellent

Honeywell Green Diesel™

also known as:

Renewable Diesel

HVO (hydrotreated vegetable oil)

HRD (hydrotreated renewable diesel)

BHD (bio-hydrogenated diesel)

Green

DieselHoneywell Green Jet Fuel™

also known as:

Renewable Jet

SPK, or Bio-SPK(synthetic paraffinic kerosene)

HRJ (hydrotreated renewable jet)

HEFA-SPK (hydroprocessed esters and fatty acids)

High quality drop-in fuels that fully meet specifications

Technologies to Produce Low Carbon Emission Fuels

5

UOP 7301-5

UOP

Technology

Honeywell Green Jet Fuel™

Renewable Fuels from Fats, Oils & Greases

Plant-derived Oils

Animal Fats

Algal Oil

Used Cooking Oil

Honeywell Green Diesel™

Proven Technologies for Feedstock Flexible Drop-in Fuels

6

Renewable Fuel Oil from Biomass

RTP Green Fuel is “liquid wood” made from Cellulosic Biomass

7

Forest Residue

Agricultural Waste

Ensyn RTP™ UnitRenfrew, Canada RTP Green Fuel

Energy Crop

Partially

renewable

products

sent

downstream

LPG

Gasoline

Light Cycle Oil(LCO)

Vacuum Gas Oil (VGO)

Unconverted Oils (UCO)

Utilize existing refinery assets & infrastructure

8Renewable Fuel Blend Stock from FCC Co-Processing RTP Biocrude

Commercial Status of Renewable Fuels

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9

Options for Effective Use of Capital and Assets

10

UOP Renewable Fuel Projects

Adjacent to existing refinery (“brown field”)

• 10,000+ bpsd Renewable Diesel

Retrofit of existing refinery unit (s)

• 8500+ bpsd Renewable Diesel

• 2500+ bpsd Green Diesel & Green Jet

2013

2016

Natural Oils

Animal Fats

Algal Oils

Used Cooking Oil

Mu

ltip

le F

eed

sto

ck O

pti

on

s

2014

Green Diesel User – Walt Disney World

Green Diesel Used Commercially

11

®

Green Fuels On The Seas

50% HRF-76 in US Navy RCB-X Small Craft

Italian Navy Patrol Boat “Foscari”

50% HRF-76 Blend in US Navy Destroyer

New marine fuel standards can be met using Ecofining technology

12

Some Honeywell Green Jet Fuel Flights

Many demonstration, commercial and military flights since 2008

Airline Date Remarks

Air New Zealand Dec 08 First commercial airliner Bio-SPK demo

KLM Nov 09 First biofuel test flight with passengers

TAM, Brazil Nov 10 First Biofuel flight in Latin America

Honeywell (Corporate Jet)

Jun 11 First Trans-Atlantic biofuel flight. First corporate jet to fly on biofuel

Boeing, USA Jun 11 First Trans-Atlantic commercial aircraft with engines on 15% Bio-SPK blend

Aeroméxico Aug 11 First transcontinental commercial flight, 30% blend (Mexico City to Madrid)

Aeroméxico Oct 11 Weekly commercial flight, 52 flights (Mexico City to San Jose, Costa Rica)

Iberia Oct 11 First commercial flight in Spain (Madrid to Barcelona)

Air China, China Oct 11 First Biofuel demonstration flight in China

United Airlines, USA Nov 11 First U.S. commercial passenger flight (Houston to Chicago)

Porter Airlines Apr 12 Canada’s First Biofuel-Powered Revenue Flight

GOL Oct 13 Sao Paulo to Brasilia- first commercial biofuels flight in Brazil

GOL Jul 14 200 commercial flights during the FIFA World Cup™ in Brazil

13

Commercial Renewable Aviation Biofuels…Now a Reality

14

Honeywell UOP Technology Produces First Commercial Aviation Biofuel

United Airlines is first

commercial airline in

U.S. to use renewable

jet fuel on scheduled

flights

Fuel provided by AltAir

Fuels in first dedicated

commercial production

of renewable jet fuel

Concept Selection

Pilot Plant Trials

Commercial Design

Proof of Concept

EPA Part 79

EPA Part 80

Technology Deployment

FCC Co-processing Commercialization

Multiple Refiners Assessing FCC Co-Processing

15

2016

RTP Unit

Renewable Fuel Mixture

to Refinery Pool

RFO produced by outside

project developer and

delivered to refinery

Refiner co-processes RFO

with VGO to produce

renewable fuel blendstocks

RTP Green Fuel or

Pyrolysis Oil or

Renewable Fuel Oil (RFO)

Renewable Heat from RTP Green Fuel

• Switched from #4 fuel oil

• Added storage tank and modified two boilers ($500K cost)

• Five year supply agreement

Hospital inNew Hampshire

Hospital inNew Hampshire

• Switched from #2 fuel oil

• Added storage tank and new single boiler ($500K cost)

• Seven year supply agreement

• Heat & cooling for 77 building

• Displace 50% of natural gas

• Supply ~10 million liters per year

• Five year supply agreement

District heating in Ohio

Iron ore facilityin Canada

• Four month trial on three burners

• Potentially replace 20% heavy fuel oil use per year

• Negotiations for long-term contract

16

© 2016 by Honeywell International Inc. All rights reserved.

GHG and SOx Reduction Driving Adoption

The Enablers: Regulations drive adoption

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17

US Mandates Driving Renewable Fuels Adoption

Current US Renewable Environment

EPA Ruling, Nov 2015

• 20% increase in RIN values

• CA Low Carbon Fuel Standard

(LCFS) Credits >$100/MT CO2e

• Cellulosic Waiver Credits set to

more than double

18

RIN Values

$0

$20

$40

$60

$80

$100

$120

$140California LCFS ($/MT CO2e)

$1.56

$1.13

$0.78

$0.42 $0.49 $0.64

$1.33

$1.88

$-

$0.50

$1.00

$1.50

$2.00

1 2 3 4 5 6 7 8

Cellulosic Waiver Historical Prices(set by EPA)

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

RIN

Pri

ce

($

/RIN

)

D3/D7 D4

UOP Estimate

Source: Pira

Source: EPA

Source: Jacobsen

UOP Renewable Technology Options Can Address India Objectives

19

Summary

• Renewable fuel demand growing based on regulations

• Honeywell Green Diesel and Green Jet technologies provide commercially proven drop-in transportation fuels

• Renewable Diesel & Gasoline from FCC Co-Processing of RTP Fuel Oil is EPA Certified

• Seamless integration into refineries eliminates need for separate biofuels handling, storage and transport infrastructure

• Revamp of existing refinery assets significantly reduces capex

The dream of the Great Green Fleet came to life in

January, 2016 as the aircraft carrier John C.

Stennis left on its latest deployment, with five

biofuel-powered ships alongside for the first time.

Honeywell is committed to providing technology

options that enable our customers to produce the

highest quality renewable fuels

HONEYWELL RENEWABLE ENERGY & CHEMICALS

THANK YOU

UOP 7340-20