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Conversion of Carinata Oil Into “Drop-In” Fuels & Chemicals

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Conversion of Carinata Oil Into “Drop-In” Fuels & Chemicals Conversion of Carinata Oil into “Drop-in” Fuels & Chemicals Carinata Summit 29 March 2017 Process Background Biofuels ISOCONVERSION Process Converts fats, oils, and greases from plants, animals, or algae into “drop-in” renewable fuels Catalytic Hydrothermolysis Hydrotreating Fractionation • Supercritical water • Saturates olefins • Produces finished fuels process • Removes residual • Jet and diesel that meet • Produces crude oil that oxygenates • Meets petroleum specs contains the same without blending hydrocarbon types as • Renewable chemicals, petroleum crude 2 Minutes and naphtha Converts fats oils and Conventional greases to crude oil Refinery Processes Characteristic CH Conversion Reactions . Cycloparaffins and Aromatics are formed . Entire homologous series of isomers are formed . Ring structures are conserved during hydrotreating . Hydrogen is conserved by formation of ring structures 3 Conversion of Carinata Oil • High concentration of Erucic acid (22:1) • Unsaturated FFAs are more reactive • High yield of cycloparaffins & aromatics • High density and energy content • Excellent low-temperature properties • Higher molecular weight than Soybean, Canola, Jatropha • Higher yield of hydrocarbon fuels & chemicals than C18 oils • Potentially 2 wt% net increase in hydrocarbon yield • Equates to ~100 bbl/day for a 5000 bbl/day commercial refinery • Potential to add over $3M/year in revenue 4 Hydrothermal Cleanup (HCU) Process Patent Pending . Achieves Rapid Hydrolysis . Production of free fatty acids and glycerin-rich aqueous phase . HCU is 10 times faster than the Colgate-Emery commercial process . HCU is a very effective alternative to chemical degumming/metals reduction Refined Carinata oil Crude Peanut oil Metals (ppm) Oil Feed HCU Product Oil Feed HCU product Calcium 4.3 1.2 25.6 4.0 Magnesium 3.0 0.4 28.0 0.9 Phosphorus 20.1 0.7 146.7 2.4 Potassium 6.7 2.2 67.5 2.8 5 Fatty Acid Co-Product Market . ARA & Agrisoma sponsored a “Feasibility Study for Oleochemistry Products from Brassica carinata” as part of a project sponsored by the state of Florida • Performed by OBIC Bioproducts Innovation Center (Ohio State) – 2014 • Identified co-product markets for erucic and behenic acids, erucamide, and behenyl alcohol . ARA commissioned an “Analysis of the North American Oleochemicals Market” • Performed by Frost and Sullivan, 2016 • A $3.9B industry (2018 projection) - Continued growth projected - ~25 active companies . Total volume is about 2 billion metric tons per year • Fatty acids account for 74% of market • Market leader (fatty acids) Emery Oleo – 21% share of the market . Other major players: Akzo Nobel – 13%, Vantage – 11%, Twin River – 7%, PMC – 7%, others – 41% • P&G is the market leader in fatty alcohols and glycerin (47% and 40% respectively) • Market applications include: . Soaps & detergents – 36%, industrial – 17%, personal care – 17%, plastics – 11%, food – 7%, coatings – 5%, rubber – 4%, pharmaceuticals – 3% 6 Erucic Acid (C22:1) – Co-product . Erucic acid – Direct uses include lubricants and is the precursor to many other products • Eruciamide – anti-block agent for plastic films, plasticizer, lubricant, injection molding, textiles, paints • Behenic acid – hard wax (MP = 80oC) – cosmetics, candles, rubber, plastics, lubes, grease, coatings • Behenyl alcohol – emollient and emulsifier . Brassylic acid is a 13-carbon dicarboxylic acid derived from erucic acid via ozonation • Plasticizer for polymers, biodegradable solvents, lubricants, coatings, adhesives, fragrances, engineering plastics – nylon 1313, and other specialty polyamides Erucic acid Brassylic acid . ARA has been working with Emery Oleochemicals since 2014 • Supplied small samples of FAAs from Carinata for testing • Pending project will produce >1000 lb of FFA derived from Carinata oil for trial production of nylon 1313 . Emery projects their market to grow to 7000 MTY of erucic acid • This volume would supply just the nylon 1313 market • The value of FFAs from Carinata may be $0.60 to $0.80/lb depending on erucic acid concentration • The net revenue for the fuels production facility will be >$10M/yr just to meet this single requirement • Market growth potential is large 7 Normal Paraffin Co-product . The CH process produces a higher ratio of normal-to-iso paraffins vs petroleum . n-paraffins from the kerosene fraction are used to make linear alkyl benzene (LAB) • Soaps, detergents, surfactants • Global LAB market is huge – 4.3 MTY and growing at 2.8% per year . n-paraffins are produced commercially using molecular sieve extraction • Higher ratio of n-paraffins improves the economics of the extraction process • Higher value than kerosene achieved by improved efficiency and renewable premium • Extracting most of the n-paraffins from the jet fuel fraction will actually improve properties and increase the boiling distribution, which will offset yield loss . ARA has work with Proctor & Gamble and Sasol since 2015 regarding renewable n- paraffins to make LAB for products like Tide detergent . Provided to P&G and Sasol samples for testing • n-paraffins must be kosher • Therefore feed stock must be virgin plant oil like Carinata, Pongamia, peanut . Eliminates tallow, brown grease, and use vegetable oils . Commercial strategy – Third-party owner-operator on site 8 Production of Fuels and Co-products Brassylic acid Nylon 1313 FFA/ Eruciamide Erucic Erucic Solvents, Lubricants, Plasticizers Acid Acid Coatings, Specialty polyamides, Un-refined Behenic acid Recovery Adhesives, Fragrances Carinata Oil Behenyl alcohol Naphtha HCU/ CH Rapid Hydrothermal Hydrotreat D Hydrolysis Conversion i s t i l Acetic Ethyl Jet/kero Jet l Acetate Glycerin Acid a Recovery t n-Paraffin i Recovery Propylene o Glycol n Glycerin n-Paraffins Acetonitrile Diesel LAB 9 Navy Fuels Certification 100% Drop-in, Unblended JP-5 F-76 (CHCJ-5) (CHCD-76) Gallons 60oC Flash Jet 60oC Flash Diesel Total U. S. Navy (DLA) 72,000 79,000 151,000 Other* 9,000 9,000 Total 81,000 79,000 160,000 • Testing performed by other recipients of jet fuel • Lufthansa – emissions testing on CFM-56 engine (Airbus A340) • Air Force – Rocket fuel (RP-1/RP-2) tests • Army – Equipment compatibility & performance test • Sweden – Flight demonstration (F-414 engine – Same as F-18) • Additional tests being performed by the Navy • P&W F-135 afterburner test (F-35 aircraft) • T-700 endurance test • Initial specification review (6 months) begins October 2017 10 SECNAV F-18 Flight Test 100% CHCJ-5 Nine F-18 Flight Tests Completed 11.
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