UOP Renewable Energy & Chemicals:

Investment Grade Innovation

Graham Ellis
Senior Business Manager
UOP Renewable Energy & Chemicals

Jefferies 9th Global Clean Technology Conference

March 17, 2010
New York City

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 Agenda

• An Introduction To Honeywell’s UOP

• Biofuels Landscape
• UOP Biofuels Vision
• Sustainable Technology Solutions

Jefferies Global Clean Technology Conference – March 17, 2010

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 Honeywell UOP
UOP Creates Knowledge Via Invention And Innovation And
Applies It To The Energy Industry

1,570 scientists and engineers
Process technology

2,600 active patents
Catalysts

Expertise
Adsorbents

Experience
Equipment

Services
Petroleum Petrochemicals Natural Gas Renewables

More Than 60% Of The Worlds Gasoline And 85% Of

Biodegradable Detergents Are Made Using UOP Technology
Jefferies Global Clean Technology Conference – March 17, 2010
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 UOP Renewables Vision
• Building on UOP technology and expertise
• Produce real “drop-in” fuels instead of fuel additives/blends
• Leverage existing refining, transportation, energy, biomass handling
infrastructure to lower capital costs, minimize value chain disruptions,
and reduce investment risk
• Focus on path toward second generation feedstocks & chemicals
Renewable Hydrocarbon Biofuels
Oxygenated Biofuels Energy
Ethanol Biodiesel Fuel
Fuel &
& Diesel Jet Gasoline
Power
Power

“Other” Oils: Camelina, Jatropha

First Second
Generation Generation

Lignocellulosic
Natural oils from biomass,
vegetables and algal oils
greases
Jefferies Global Clean Technology Conference – March 17, 2010
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 Mega Trends
• Global Energy Demand is Expected to Grow at
CAGR 1.6% Through 2017
- Primary Energy diversity will become increasingly important
over this period with coal, natural gas & renewables playing
bigger roles

• Fossil Fuels are Expected to Supply 83% of Energy

and 95% of Liquid Transportation Needs
• Biofuels are Expected to Grow at
8-12% per year to ~3.0 MBPD

Source: IEA, 2008

Jefferies Global Clean Technology Conference – March 17, 2010
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 Petroleum Refining Context
Butane

Light Ends Gas Processing Sulfur Plant Sulfur

Butane- Alcohol Isobutane

• Fossil Fuel production

Unit
Butylene
H2
Etherification Alkylation Iso-octane Iso-octane
Production Fuel Gas
Isomerate

Crude Oil
Light Naphtha
Isomerization
LPG
Alkylate Gasoline
Jet
Fuels
~100 years
H2 Flue Gas
H2 Reformate LPG Solvents

• ~750 refineries
Catalytic
Reforming
Crude Oil Distillation

Crude Treating Naphtha Naphtha Diesels

& Desalting Hydrotreating H2 Aromatics
Light BTX
Production
(Topping)

Distillates
• ~85M BBL of crude

Product Treating Blending

Distillates Heating
H2 Light Distillate Oils
Hydrotreating
Latest Refining

refined daily
Heavy Diesel and Heating Oil
Technology Distillate Geases
Development Heavy Distillate
& Licensing Hydrotreating Light Olefins
Production Fuel Oil
H2 Fluid Catalytic
Atmospheric
Gas Oil
Gas Oil
Cracking Gasoline
Gasoline, Naphtha, Middle Distillates, • ~50M BBL transport
Vacuum Distillation

H2
Gasoline

fuels; ~6M BBL of

Hydrotreating
Kerosene and Jet Fuels
Gas Oil
Hydrocracking Diesel and Heating Oils

Lube Oil
Production
Lube Oils
Lube Oils aviation fuel (~250
Solvent
Extraction &
Deasphalting
Heavy Fuel Oil
M gallons/day;
90 B gallons/year)
Vacuum Resid Visbreaking Asphalt Asphalts

Diesel Gasification Syngas/Steam

Coking Electricity
Coke • Complex but efficient
Energy
Conservation & Plant
Natural Gas Natural Gas, Fuel Oil
conversion processes
Environmental Maintenance/ Plant Upgrades Hydrogen Production/
Controls Management & Revamps Gas-to-Liquids
(Power Reliability/ Purification/Recovery
Production) Safety

Fuel, Wax H2

Biofuel Technology Catching Up Fast

Jefferies Global Clean Technology Conference – March 17, 2010
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 Global Legislation Overview
Canadian Law C-33 Mandates:
• E5 by 2010
• B2 by 2012
• B5 in British Colombia by 2010
EU-27 – Adopted Mandates:
• RED – 10% by Energy content by 2020
• GHG – 6% reduction by 2020 from 2010 levels
• E10/B5 targets

EISA 2007: • E10 mandate

• RFS mandate – 36 Billion • E20/B20 by 2017
Gal by 2022
• Several State mandates
in effect
• California – LCFS Mandates: • E5_E10 mandates
mandated • Brazil: E25/B3 • B1_B5 mandates
• GHG initiatives • Argentina: E5/B5 (2010)
established in NE States • Colombia: E10/B5
E_ : % Renewable content in Gasoline
B_ : % Renewable content in Diesel

Legislation Spurring More Biofuel Use Globally

Jefferies Global Clean Technology Conference – March 17, 2010
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 Biofuels: Variable Performance to Date

• Corn Ethanol – Low production costs and scalable yet suffered in the food
versus fuel debates. Life Cycle Analysis currently a subject of debate.
• Biodiesel – Regional legislation in a global market created economic bubbles
which collapsed as legislation amended, and short term micro-economic
shocks corrected.
• Cellulosic Ethanol – Great promise but rate of commercialization arguably
behind initial DOE expectations. Technology innovations still required.
• Biomass To Liquids (BTL) – Excellent fuel properties, but thus far, a high
capital route to fuels, and still faces some technical hurdles.
• Biomass To Power (BTP) – Incumbent direct firing routes using steam
turbines work well, but leave efficiency (and profitability) on the table

UOP Technologies Are Feedstock Flexible, And

Leverage Existing Assets And Technologies
Jefferies Global Clean Technology Conference – March 17, 2010
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 UOP Renewable Energy Technologies
Feed Process Product

Natural Oil/Fats Honeywell Green DieselTM

EcofiningTM
Ecofining TM

Hydrogen Process
Process Green Jet (if req)

Natural Oil/Fats Honeywell Green JetTM

Renewable
Renewable Jet
Jet
Hydrogen Process
Process Green Diesel

Envergent Technologies – UOP/Ensyn JV

Biomass RTPTM
RTP TM Green Power / Fuel Oil (now)
(Pyrolysis)
(Pyrolysis) Upgrading
Upgrading Process
Process

Green Fuels (2011)

Sustainable Technologies – Feedstock Flexible And 2nd Gen Ready

Jefferies Global Clean Technology Conference – March 17, 2010
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 UOP/ENI Ecofining™ Process

Superior technology that Process Comparison vs. Biodiesel
produces Honeywell Green Natural Oil/
Diesel rather than an Grease
Biodiesel
Biodiesel (FAME)
(FAME) + Glycerol
oxygenate additive +
Methanol

Uses existing refining and
transportation infrastructure, Natural Oil/
Grease
and can be used in existing Green
Green Diesel
Diesel + Propane
+
automotive fleet Hydrogen

Two units licensed in Europe, a Process Overview

further under engineering in US
Feed Make-up 2.2 – 3.5

Feedstock flexible – enabling Hydrogen Wt-%
access to 2nd Gen or low cost Acid Gas
Reactor Removal CO2
feedstocks
System

Can be used as an approach Propane
to increase refinery diesel output Green
Separator 1 – 10
Naphtha Vol-%
or Jet
Water
Green 88 – 98
Diesel Vol-%
Product
Jefferies Global Clean Technology Conference – March 17, 2010
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Honeywell Green DieselTM ProductComparison

Biodiesel Honeywell Green

Petroleum ULSD
(FAME) Diesel
Oxygen Content, % 0 11 0
Specific Gravity 0.84 0.88 0.78
Cloud Point, °C -5 -5 to +15 -20 to +10
Cetane 40 - 52 50-65 70-90
Sulphur, ppm <10 <2 <2
Energy Density, MJ/kg 43 38 44
Energy Content, BTU/gal 129 K 118 K 123 K
Poly-Aromatics, vol-% 4 - 12 0 0
Colour Clear Light to Dark Clear
Yellow
Oxidative Stability Baseline Poor Baseline
Production cost $/gallon Baseline Baseline - $0.22

UOP’s Proven Refining Technologies Create High Quality Diesel

Fuel At A Lower Cost Than Biodiesel
Jefferies Global Clean Technology Conference – March 17, 2010
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 Renewable Aviation Fuel Market Drivers
EU GHG Emissions by Sector as an Index of 1990 Levels
180
Int Aviation • EU Emission Trading Scheme
Energy
160 Extending to Aviation Sector:
Index 100 =1990

Industrial Processed
Agriculture
140 Waste
Total (w/out LUCF)
- Aviation emissions: Fastest
Transport growing of any sector
120

100 Key Drivers of Emissions Reductions

80
wth
60 Grores

CO2 Emissions
s
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 ion su
m iss Mea
d E ion
Source: ICAO
Year aste educt ents
ec R ovem
For w/o /Im p r
ents
In v estm
ATM
• US Military’s National Security Low Carbon Fuels
Driven Goals to Achieve Both
Greater Substitution and GHG Baseline
Reduction
Carbon Neutral Timeline
Presented to ICAO GIACC/3 February 2009 by Paul Steele
on behalf of ACI, CANSO, IATA and ICCAIA

UOP Process Closes An Unaddressed Gap If Aviation Is To Grow

At Or Beneath Carbon Neutrality
Jefferies Global Clean Technology Conference – March 17, 2010
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 UOP Renewable Jet Process Overview

Initially a DARPA-funded project
to develop process technology to Natural Oils &
Crude Oil Fats
produce military jet fuel (JP-8)
from renewable sources

An extension of UOP EcofiningTM
UOP Renewable
process, with selective cracking to Oil Refinery Jet Process
make jet-range material

Produces Honeywell Green JetTM that
meets all properties of ASTM D7566
Honeywell

Certification for blending up to Fossil Jet Fuel Green Jet
50% in progress
DARPA Project Partners
50% 50%

Fully Fungible
“drop-in”
Renewable Fuel

Now Available For License

Jefferies Global Clean Technology Conference – March 17, 2010
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 UOP Renewable Jet Process
Selective Product
Deoxygenation Hydrocracking Separation
Feedstocks Hydrogen
Rapeseed
Tallow Light Fuels
Jatropha CO2
Soybean
Algal Oils Honeywell
Palm Oil Green JetTM
Camelina
Greases
Water Green Diesel

• Feedstock flexible
• Costs
– Capex: similar to typical refinery process unit
– Opex: cost subject to feedstock cost, but can be competitive
with Jet A-1
• High quality green hydrocarbon products
– Swing between Green Jet and Green Diesel production to meet
demand and reduce new market uncertainty
Jefferies Global Clean Technology Conference – March 17, 2010
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 Completed Flight Demonstrations
Feedstock:
Jatropha oil

• Successful ANZ Flight Demo

Date: December 30 2008

Feedstock:
Jatropha and algal oil
• Successful CAL Flight
Demo Date: Jan. 7 2009

Feedstock: Camelina,
Jatropha and algal oil
• Successful JAL Flight Demo
Date: Jan. 30 2009

Jefferies Global Clean Technology Conference – March 17, 2010

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 Completed Flight Demonstrations - Continued
UOP Green Jet Fuel Technology Powers KLM Biofuel Demo Flight
On November 23, 2009

• Europe’s first biofuel test flight

• First biofuel test flight to carry observers (42) on board
• One engine of a Boeing 747 was powered with 50/50 blend of green
jet and petroleum-derived jet fuel
• Feedstock: Camelina oil, inedible oil
• KLM founded SkyEnergy consortium with North Sea Petroleum and
Spring Associates to ensure a steady supply of jet fuel
Jefferies Global Clean Technology Conference – March 17, 2010
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 UOP / Ensyn Joint Venture

• Announced September 2008

• Pyrolysis Oil technology for fuel oil substitution
& power generation
• JV is commercialization channel for UOP R&D
on upgrading pyrolysis oil to transportation
fuels

• Core competence in engineering • ~20 years of commercial fast

and technology scale-up
• Experienced Fluidized Catalytic
Cracking (FCC) technology licensor
• Modular process unit supplier
• Leader in fundamental catalyst and
process development (Upgrading)
pyrolysis operating experience
• Developers of innovative RTP fast
pyrolysis process
• 8 commercial RTP units
• Now applying technology to fuel oil
and energy

2nd Generation Renewable Energy Company – Global Reach

Jefferies Global Clean Technology Conference – March 17, 2010
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 Rapid Thermal Process (RTPTM) Technology

Pyrolysis Oil
Patented process

Biomass converted to
liquid pyrolysis oil

Similar to existing UOP
technology

High yields, >70 wt%
liquid on woody
biomass

Suitable for installation
in biomass-rich areas

Solid Biomass

Proven Technology,
Full Scale Designs
Available Jefferies Global Clean Technology Conference – March 17, 2010
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 Pyrolysis Oil Energy Applications
Fuel
Heat
Replacement of fossil fuel
Burner
for heat/steam generation
~25% lower energy cost
RTP Gas Electricity
than fossil fuel oil
Unit Turbine CHP
Production of green
electricity at competitive
Stationary rates
Diesel
Engine
Energy densification play
Green compatible with many
Gasoline,
Optimized
Green upcoming technologies
UOP
Diesel &
Upgrading
Technology Green Jet
Considered a key
renewables platform
Syngas Hydro- technology
Gasification Fischer cracking/
Tropsch Dewaxing

• Current Applications
• Emerging Applications

Renewable Electricity ~10-12c/kW-h Targeting Renewable Fuels

At Fossil Fuel Costs
Jefferies Global Clean Technology Conference – March 17, 2010
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 Summary

• UOP has 90 years of oil refining technology

expertise and is creating a renewable energy
technology portfolio
• Rigorous development process reduces
technology risk, and results in high quality fuels
• Feedstock flexibility bridges generational issues
related to feedstock sourcing and indirect impacts
• UOP continues to develop its portfolio to meet the
challenges of a sustainable renewable fuel future

Jefferies Global Clean Technology Conference – March 17, 2010

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