Supply Chains, Global Supply World Bioenergy Association Webinar - PowerPoint PPT Presentation

EU/US/Japanese Markets, Supply Chains, Global Supply World Bioenergy Association Webinar “Pyrolysis Oil Markets & Growth in Global Supply” Jan 31, 2017 Douglas Bradley- President, Climate Change Solutions 402 Third Avenue, Ottawa, Canada 613-321-2303 douglas.Bradley@rogers.com www.climatechangesolutions.net

Markets, Supply Chains, Some Global Supply Options  Producers- New commercial players in 2014-15-16  Capacity up 50% (operating or under construction)  Markets expanding  End uses (eg. co-blending in oil refineries)  Geographically  Supply chains lengthening (from road/rail to ships)  Supply concepts from Canada, Australia, Malaysia, Namibia…

Energy Density Calorific Bulk Energy Density Value Density t/m 3 GJ/m 3 GJ/t Wood Pellets 16-18 .65 10.9 Torrefied Pellets 19-23 .7 14.5 Pyrolysis Oil 16-19 1.2 21 Twice as much energy as pellets, per unit volume

Production- Status 2016  Operating  1989+ Red Arrow, Wisconsin , US- 5 small plants  2006 Ensyn, Renfrew , Canada- Ensyn technology  2014 Fortum, Joensuu , Finland- Valmet technology  2015 Empyro- Hengelo , Netherlands- BTG-BTL technology  2016 Pyrobiom- Parent , Quebec  Under Construction  Green Fuel Nordic- Lisalmi , Finland- Ensyn technology

Ensyn Pyrolysis Development  Port Cartier- Quebec, Canada  45,000 t  Under construction  Vienna - Georgia, US  90,000 t  Prelim. Eng. largely complete  Aracruz - Brazil  98,000 t  Prelim. Eng. largely complete Target Markets - Co-processing in refineries in US - Heating and cooling markets in US

Commercial Plant Capacity 000tpa 800 Pyrobiom-3 700 Pyrobiom-2 Pyrobiom- Parent2 600 Prelim Engineering 95-100% Ensyn-Georgia, US complete 500 Ensyn-Aracruz, Brazil Green Fuel Nordic- Fin. 400 Ensyn-Port Cartier 300 Pyrobiom- Parent Under Construction Empyro- Hengelo 200 Fortum- Joensuu Operating 100 Ensyn-Renfrew 0 Red Arrow- Wisconsin 2011 2012 2013 2014 2015 2016 2017 2018 2019

Market Summary  Food ingredients /specialty chemicals, Wisconsin  Bui lding Heat- eg Ohio DH, New England hospitals, Finnish CHP plants  Process Steam- eg Friesland Campinas dairy (BTG)  Small power- Turbine (2009), Diesel (2013)  Co-processing in oil refineries  Large Power- replace oil or gas in boilers  Marine bio-fuel- best option for low-cost, large volume biofuel- testing in ships 2017

New Markets Refinery Co-processing  Up to 5% pyrolysis oil processed with petroleum  Provides comparable yields by volume  Product indistinguishable from 100% fossil product  Lowers refiners capex and opex of compliance

Japanese Markets  Many Japanese power plants multi-fuel  Kansai uses 29% petroleum  90% low-sulfur crude  10% HFO  How get renewable?  Pellets substitute for coal High infrastructure costs   Pyrolysis oil substitute for HFO Easier  Low infrastructure costs 

Japanese Power Producer Fuel Demand Thermal Power Plants (red) Power Companies Using Oil All on coasts- no land transfer Company Plants Capacity (MW) needed Tokyo 6 9,015 Chuba 4 5,325 Kansai 5 7,946 Kyushu 2 3,324 Hokuriku 1 1,000 Tohoku 1 3,966 Shikoku 2 6,925 Chugoku 1 3,800 Total 22 41,301 Plants Mtoe Oil used 22 11.26 Pyrolysis Oil 441 25.74

Australia Prospective Pyrolysis Oil Exports Japan, Korea Europe Japan, Korea source: National Forestry Plantations http://data.daff.gov.au/mapserv/plant/region.phtml

Australia Oil Product Imports Shipping Routes 25-55,000 DWT ships available for back haul - ie low cost shipping

EU Markets for Pyrolysis oil  Replace oil or gas for process heat  Dairies, kilns, limekilns, metallurgy  Replace oil in DH plants  Replace gas in DH plants  DH plants that converted to gas are inefficient  Gas supply often at risk  Replace oil in power stations, as fuel, or back up fuel

Pyrolysis oil Markets Million tonnes MTOE EU-7 Japan @$50/bbl oil 49 75 @$80/bbl oil 77 108

Pyrolysis Oil EU Market Segments 000 toe 4,000 1 st Markets- Industry 30 Mtoe 3,500 3,000 2,500 2,000 000 toe 1,500 1,000 500 0

Oil Price to Markets vs Pyrolysis Oil Delivered Cost 35 $/GJ 30 Pyrolysis Oil delivered Rotterdam 25 20 $110/bbl 15 $50/bbl 10 5 0

Supply Chains 2013 Ensyn- Renfrew

Supply Chains- 2016 Pyrobiom- Parent Ensyn- Renfrew

Supply Chains- 2018 Ensyn- Port Cartier Pyrobiom- Parent Ensyn- Renfrew

Supply Chains- 2020 Ensyn- Port Cartier Pyrobiom- 2 Pyrobiom- Parent Ensyn- Renfrew

Potential from Namibia  12 million ha infested by acacia  Removal to preserve cheetah habitat  100 million tonnes biomass! Walvis Bay Map- PyNews21

Malaysia- Major Palm Oil Exporter

Sabah- Malaysia  Liquids supply chains already in place Lahad Datu Liquid Bulk Terminal  Lahad Datu liquid bulk terminal  Capacity for exports to Japan

Long Distance Supply Chains Actual Ensyn Plan

Long Distance Supply Chains Actual Ensyn Plan Conceived

Summary  Pyrolysis oil has been produced since 1989  Now 4 technology companies producing in 9 plants  World Capacity from 75,000t 2013 to 700,000t-2019  Energy density advantage of pyrolysis oil opens up new producing regions for export  Markets  Japanese power market 75MT- essentially limitless  Many EU market niches- 49MT

Thank you World Bioenergy Association Webinar Jan 31 “Pyrolysis oil Markets & Global Supply” Douglas Bradley- President, Climate Change Solutions Vice-President, World Bioenergy Association 402 Third Avenue, Ottawa, Canada 613-321-2303 douglas.Bradley@rogers.com www.climatechangesolutions.net