CurrentCurrent StatusStatus ofof BiofuelsBiofuels ProductionProduction andand UseUse forfor CommercialCommercial AviationAviation

ClaudioClaudio BertelliBertelli GlobalGlobal BusinessBusiness DevelopmentDevelopment ManagerManager UOPUOP LLC,LLC, AA HoneywellHoneywell CompanyCompany

BIO 2010 - V Seminario Latinoamericano y del Caribe de Biocombustibles 17-18 August Santiago, Chile

© 2009 UOP LLC. All rights reserved. Discussion Topics

y Introduction y Semi renewable : Hydroprocessed renewable jet synthetic paraffinic kerosene (HRJ SPK) y Fully renewable jet fuel: The Path to 100% Renewable Jet Fuel Corporate Overview

• 125,000 employees in more Transportation & Power Systems than 100 countries • A Fortune 100 company – Specialty Materials sales of $34.5 billion in 2008 Aerospace • Global leader in advanced 15% technology products, 36% services 15% UOP and solutions 34%

Automation & Control

Technology Company, Financially Strong and Global UOP Overview

• Leading supplier and licensor of processing technology, catalysts, adsorbents, process plants, and technical services to the petroleum refining, , and gas processing industries for over 90 years • UOP Technology Furnishes: 60% of the world’s gasoline; 70% of the world’s modern detergents; 60% of the world’s para-xylene 2003 National Medal of • ~3000 employees worldwide Technology Recipient • ’08 Financials: ~$2 billion sales; • Strong relationships with leading refining and petrochemical customers worldwide • 70+ processes in 6,000+ units in hydrocarbon processing industry; 300+ catalysts, adsorbents; 31 of 36 refining technologies in use today created by UOP

Track Record Of Technology Innovation UOP Renewables Vision

• Building on UOP technology and expertise • Produce real “drop-in” fuels instead of fuel additives/blends • Leverage existing refining, transportation, energy, handling infrastructure to lower capital costs, minimize value chain disruptions, and reduce investment risk. • Focus on path toward second generation feedstocks & chemicals Renewable Oxygenated Hydrocarbon Biofuels Energy Fuel & Ethanol Fuel & Diesel Jet Gasoline PowerPower

“Other” Oils: Camelina, Jatropha First Second Generation Generation

Natural oils from Lignocellulosic vegetables and biomass, greases algal oils Market Drivers/Enablers

Aviation Emissions Are Growing Rapidly

EU GHG Emissions by Sector as an Index of 1990 Levels y EU Emission Trading Scheme 180 extending to aviation sector: - Aviation emissions: Fastest growing of any sector 160 - 2012 Emissions: 97% of 2005 140 - 2013 Emissions, 95% of 2005

120 y US Military’s National Security driven goals to achieve both greater substitution (~50% by 100 Index 100 =1990 =1990 Index 100Index 100 2020) & GHG reduction,

80 y Aviation industry OEM’s drive to render fleets compatible with 60 upto 50% biojet 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year Source: ICAO y Major Airline initiatives to use Int Aviation Waste biojet Energy Total (Without LUCF) Industrial Processes Transport Agriculture y Accelerated certification efforts

y 2nd gen feedstock initiatives: - Camelina, Jatropha, Algal Forecast of Industry CO2 Emissions

Key Drivers of Emissions Reductions

Using Less Fuel - Efficient Airplanes - Operational Efficiency

Changing the Fuel - Sustainable Biofuels

Low carbon fuels a key part of emissions reduction

Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA UOP RE&C Technologies & Capabilities

Feed Process Product

Natural Oil/Fats EcofiningEcofiningTMTM Green Diesel Hydrogen ProcessProcess Green Jet (if req) HVO: ‘000’s barrels/day Natural Oil/Fats RenewableRenewable JetJet Green Jet Process Hydrogen Process Green Diesel

Envergent Technologies – UOP/Ensyn JV

RapidRapid ThermalThermal Green Power / Fuel Oil (now) Biomass ProcessingProcessing (Pyrolysis)(Pyrolysis) UpgradingUpgrading ProcessProcess

Green Fuels (2012) Sustainable technologies – feedstock flexible & 2nd Gen ready UOP Proprietary Viable Sustainable feedstock alternatives: Commercial Scale Production

Algae Jatropha Ready in 8 to 10 years Ready in 2 to 4 years Challenges Challenges • Technological • Limited to warm innovation climates only needed for • Mechanical processing harvesting isn’t • Algal Oil mature extraction key hurdle Halophytes Camelina Ready in 5 to 7 years Ready Now Challenges Challenges • Proven at pilot • Limited total scale potential owing to • Improve yield agronomy for • Somewhat tied to cost reduction grain market swings Viability is based on timing, technology and local resources Honeywell Green Jet FuelTM

DARPA Project Partners • Started under DARPA contract to develop process technology to produce military jet fuel from renewable sources. • Leverages Ecofining process technology. Demonstration Flights • Fuel meets stringent requirements for flight. • Military has ordered up to 600,000 gallons. • Extend to commercial aviation in partnership with OEMs. UOP Stage Gate Process for Process Development: Green Jet Process Offered Commercially

Scoping Techno-Economic Idea Studies Evaluation Pending Decision Validated Initiated Initiated to Proceed Idea Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Generation First Concept Develop- Product Scoping Selection ment Commercial Unit Launch

Gate 1 Gate 2 Gate 3 Gate 4 Gate 5

Idea Project Dev’t Scale-up Product Post- Screening Selection Approval Approval Launch Launch Approval Review

• Passed Gate 4 in December 2009 • Ready For Process Design #1 in 1Q 2010

Enables UOP to guarantee new technology Renewable Jet (Bio-SPK) Chemistry

CO2 + H C Feedstocks HO 3 CH3 CH3 Rapeseed Free Fatty Acid O + Free Fatty Acid H H2 O H3 C CH3 Tallow MW=200-300 2

Jatropha O CH3 CO H C Soybean 2 3 CH3 O H3 C HC O + Algal Oils CH3 CH2

Palm Oil O O H3 C H C CH3 CH H2 O 3 Camelina 3 Triglyceride StraightStraight Chain Chain Paraffins Paraffins O Triglyceride Feed UOP Catalyst Greases MW=700-900

y Natural oils contain oxygen, have high UOP Catalyst H molecular weight. 2

y First reaction removes oxygen – product is CH3 CH3 diesel range waxy paraffins CH3 Synthetic CH CH3 H3 C 3 y Second reaction “cracks” diesel paraffins to Paraffinic H3 C Synthetic ParaffinicKerosene + smaller, highly branched molecules Kerosene H3 C CH3 CH CH y End product is same as molecules already + 3 3

present in aviation fuel H3 C CH3 y End product is independent of starting oil Feedstock flexible, but with consistent product properties Synthetic Jet Fuels

Petroleum Synthetic Jet Fuels

Conventional D 1655 Refinery Processes

Fischer-Tropsch (FT) Coal Syn Gas Crude Oil (CO, H2)

Natural Gas

Syn-Crude

D 7566 Annex 1 D 7566 Annex Biomass Gasify FT Process Hydroprocessed Renewable Jet (HRJ) from Bio-Oils Jet Fuel

Hydroprocessing Plant/Algae Bio-Crude Oils

Oil Extraction Slide courtesy of Mark Rumizen, FAA/CAAFI UOP Renewable Jet Process

Selective Product Deoxygenation Feedstocks Hydrocracking Separation Hydrogen Rapeseed Tallow Jatropha Light Fuels

Soybean CO2 Algal Oils SPK Palm Oil (Green Jet) Camelina Greases Green Diesel

Water Recycle y Feedstock flexible y Optimised for 50% SPK yield y Makes valuable hydrocarbon co-products - Green Diesel - Green Naphtha - Green LPG y Ability to swing anywhere between ‘Max SPK’ and ‘Max Green Diesel’ production to meet market demand Commercial scale, proven technology Properties of SPK for Demo/Certification

SPK SPK SPK Jet A-1 (Jatropha/ Description Specs (Jatropha) (Camelina) Algae) Flash Point, oC Min 38 46.5 42.0 41.0 Freezing Point, oC Max -47 -57.0 -63.5 -54.5 JFTOT@300oC Filter dP, mmHg max 25 0.0 0.0 0.2 Tube Deposit Less Than < 3 1.0 <1 1.0 Net heat of combustion, MJ/kg min 42.8 44.3 44.0 44.2 Viscosity, -20 deg C, mm2/sec max 8.0 3.66 3.33 3.51 Sulfur, ppm max 3000 <1 <1 <1

y Over 20,000 US Gallons of Bio-SPK made for demonstration flights y Certification supply work has uniquely allowed UOP to test the process and the catalyst at large Demo Capacity

Fuel Samples from Different Sources Meet Key Properties Use of Green Jet Fuel: Semi-Synthetic Jet Fuel (SSJF)

Natural Oils & y Green Jet Fuel can meet all Crude Oil the key properties of petroleum Fats derived aviation fuel

yFlash point UOP Renewable yFreeze Point Jet Process yStability yHeat of Combustion Synthetic Fossil Jet Fuel Paraffinic y SPK does not contain aromatics Kerosene so must be blended with a source of aromatics, such as 50-100% 0-50% fossil jet fuel Fully Fungible “drop-in” Renewable Fuel

A ‘drop-in’ biofuel for aviation The Bio-SPK Program

yIn 2008-2009, an industry team conducted testing of biofuel (Bio-SPK). yThe goal was to determine the feasibility of sustainable biofuels at blends up to 50%(v).

•Evaluate & select feedstocks •Identify & pilot processing methods •Flights & Engine Tests •Conduct fuel property tests Results published in AIAA-2009-7002: “Sustainable Bio-Derived Synthetic Paraffinic Kerosene (Bio-SPK) Jet Fuel Flights and Engine Tests Program Results” Certification-Qualification Phase - ASTM D4054 Fuel Qualification Process

Specification Fit-For-Purpose Component/Rig Engine/APU Properties Properties Testing Testing FRL 4.2 FRL 6.1 FRLs 6.2 & 6.3 FRL 6.4

ASTM Review

Accept & Ballot

Reject Re-Eval ASTM As Required ASTM ResearchResearch ASTM Report Specification Report

ASTM ASTM Balloting OEM Review & Specification Process Approval FRL 7: Fuel Class Listed in Int’l Fuel Specifications

Slide courtesy of Mark Rumizen, FAA/CAAFI ASTM D7566 Issued 1st Sept 09

D1655 5.1 Materials and y Body of Spec Applies to Manufacture Finished Semi-Synthetic Fuel Fuel Produced to D7566 Can Table 1 Be Designated as D1655 Fuel y Annex for Each Class of Synthetic Blending Component y Allow Re-Certification to D7566 D1655 Av Turbine Fuel Containing Blend Comp’s Criteria Syn HC’s y Annex 1 and Blend % Limits Table 1 - Hydroprocessed SPK Blended Fuel Annex 1 Performance Š Includes 50% FT Fuel Annex 2 50% Properties Annex 3 Other Adv Hydpross’d Other Adv Fuels or SPK Fuel Fuels or Processes Blends Certification of SPK to 50% Processes targeted for early 2011

Slide courtesy of Mark Rumizen, FAA/CAAFI Completed Flight Demonstrations Feedstock: Jatropha oil

y Successful ANZ Flight Demo Date: Dec. 30, 2008

Feedstock: Jatropha and algal oil

y Successful CAL Flight Demo Date: Jan. 7, 2009

Feedstock: Camelina, Jatropha and algal oil

y,

y KLM European Test Flight: November 23, 2009 Camelina Military Testing

• Military demonstrations • Up to 600,000 gallons of fuel made from camelina, algae and animal fats for U.S. DESC • U.S. Air Force A-10 Thunderbolt II (camelina) • Navy F/A-18 Green Hornet (camelina) • Royal Netherlands Air Force Apache Helicopter (algae & used cooking oil)

Green Jet Fuel Meets Flight Specifications US Military Supply Contracts y US Military accelerating their biofuel certification program – - UOP is producing large volumes of jet fuel for an unprecedented HRJ-5/8 supply award from DESC

Contract awarded: Line Volume item (gallons) Type of Fuel Feedstock Prime Producer Comment 1 40,000 Navy HRJ5 Camelina Sustainable Oils UOP 2 150,000 Navy HRJ5 Camelina Sustainable Oils UOP Optional amount 3 100,000 AF HRJ8 Camelina Sustainable Oils UOP 4 100,000 AF HRJ8 Tallow UOP (Cargill FS) UOP 5 100,000 AF HRJ8 Camelina Sustainable Oils UOP Optional amount 6 100,000 AF HRJ8 Tallow UOP (Cargill FS) UOP Optional amount 7 1,500 Navy HRJ5 Algal oil Solazyme UOP

All from 2nd Generation Sustainable Feedstock 2nd Generation Renewable Jet Fuel: Fully Renewable Jet Fuel from Oils and Biomass

NaturalNatural SelectiveSelective GreenGreen Synthetic OilsOils andand DeoxygenationDeoxygenation /Cracking/ JetJet-range-range Paraffinic FatsFats IsomerizationIsomerization paraffinsparaffins Kerosene

Renewable Jet Fuel

CatalyticCatalytic JetJet RangeRange SolidSolid Renewable PyrolysisPyrolysis Stabilization/Stabilization/ cyclic BiomassBiomass DeoxygenationDeoxygenation hydrocarbons Jet Aromatics

UOP 5016-10 The Future: 100% Renewable Jet

The Boeing hydroplane ran on 98% Bio-SPK and 2% renewable aromatics at SeaFair, Seattle in Aug 2009 Jet A1 Woody Pyrolysis Oil Spec Starting SPK Aromatics Freeze Point (oC) -47 -63 -53 Flash Point (oC) 39 42 52 Density (g/mL) 0.775 0.753 0.863 Woody Pyrolysis oil aromatics produced through a UOP-NREL-PNNL CRADA Summary yUOP’s Renewable Jet Process was rapidly developed through key collaborations and by leveraging UOP’s world class hydroprocessing technology and expertise yUOP’s Renewable Jet Process is ready to produce Bio-SPK in commercial quantities yA multidisciplinary team succeeded in producing and testing sustainable SPK yCertification of SPK to use in blends up to 50% is planned for early 2011. Acknowledgements

y AFRL y NREL y Honeywell / UOP - Robert Allen - Richard Bain - Amar Anumakonda - John Datko y Nikki Universal - Roy Bertola - Andrea Bozzano - Tim Edwards - Yasushi Fujii - Tim Brandvold - Don Minus - Masaru Marui - Michelle Cohn y Air New Zealand y PNNL - Graham Ellis - Grant Crenfeldt - Doug Elliot - Matthew Griffiths y Boeing - Don Stevens - Jennifer Holmgren - Billy Glover y Pratt & Whitney - Tom Kalnes - James Kinder - Tedd Biddle - Joseph Kocal - Mike Henry - Mario Debeneto - Steve Lupton - Darrin Morgan - Kevin Reilly - Prabhakar Nair - Tim Rahmes y Rolls Royce - Sunny Nguyen Randy Williams - Dale Smith - Chris Lewis - - Jim Woodger y CFM - Dave M. Lambert - Jerome A. Juenger y Sustainable Oils y Continental Airlines - Scott Johnson - Gary LeDuc y Targeted Growth Muchas Gracias! - Leah Raney - Tom Todaro - George Zombanakis y GE Preguntas? - Steve Csonka - Mike Epstein - M. Gurhan Andac [email protected] y Japan Airlines - Takuya Ishibashi - Koichiro Nagayama DOE, Project DE-FG36-05GO15085 Paul Grabowski - Yasunori Abe DARPA, Project W911NF-07-C-0049 Dr. Douglas Kirkpatrick