St1 a new actor on biofuels in Sweden and Finland LU BIOFUELS Day May 29, 2015 Linda Werner Technical Manager Agenda: St1 Group Reality check Way forward 1 Company Vision To be the leading producer and seller of CO2-aware energy St1 Group Founded in 1995 to operate in oil product wholesale business • 2000 St1 Service Station chain (est. 1997) part of the company in Finland • 2006 St1 Biofuels Oy subsidiary of St1 Nordic Oy • 2007 ExxonMobil Finnish Affiliate, Esso Oy, acquired • 2009 Norsk Hydro Olje AB (Sweden) and Statoil Automat AS (Norway) acquired • 2010 St1 Energy Oy (Shell Oy), St1 Energy AB (Svenska Shell AB) and St1 Refinery AB (Shell Raffinaderi AB) 2 Business areas: • Producing and selling of CO2-aware energy • Petroleum retailing at St1 and Shell site network • Oil refining • Biofuels production Associated companies: • North European Oil Trade Oy (NEOT Oy) / S-Group • TuuliWatti Oy/S-Voima Oy • St1 Avifuels Oy/StatoilHydro ASA St1 Map 3 St1 Refinery, Gothenburg Production in Sweden: St1 Refinery AB • The “Koppartrans” refinery was built in 1947, start up 1949 • Taken over completely by Shell 1964 • Shell’s business in Sweden and Finland (except Aviation and LPG) acquired by St1 in December 2010 Capacity covers approx. 25% of the Swedish demand for oil products. • Operates supply and depots • ~200 refinery employees + 28 in terminal operations • Integrated Ethanol production starts 2015, Q2 4 Bioproduction in Finland: St1 Biofuels Oy “Turns waste into sustainable biofuels” • St1 Biofuels Oy was established in 2006. • Pioneered in waste-based bioethanol production with several plants built. • The expertise of St1 Biofuels: biochemical processes, technology development, engineering, turn key project deliveries • ~140 employees St1 operates the overall supply chain for transport fuels including production, distribution and retail network to the end consumer. 5 Our goal is to: • Develop and commercialize functional and environmentally sustainable energy solutions • Deliver these solutions profitably Each energy solution must be: • Technically ready for use today • Ecologically and ethically sustainable • Logistically feasible Reality check; examples from St1 6 Fuel production developments… <2015 Today Future Refining processes Refining processes Refining processes Bioimports Bioimports Bioimports Technology shift Etanolix units Etanolix units Etanolix 2.0 Etanolix units Etanolix 2.0 Cellunolix Cellunolix ++++ <2015 Refinery • 5 Mm3 of crude intake per annum • Biocomponent imports since 2003 7 <2015 - 4 Etanolix® plants in Finland Feedstock Capacity Food industry 5 – 10 million liters/year/unit process waste CO2 savings and residues Up to 90 % Jokioinen Etanolix® Lahti Etanolix® Vantaa Etanolix® Hamina Etanolix® Absolutation of ethanol • Ethanol produced in Etanolix is centrally dehydrated in our Hamina absolutation plant. • Annual capacity 88 Mio liters of 99,8% ethanol St1 has been building a network of ethanol plants across Finland since 2007 with the goal to produce around 300,000 m3 of ethanol for traffic fuel use from waste and side streams by 2020. 8 Etanolix® 2.0 – ethanol plant integration to the Refinery Production capacity Etanolix 2.0 LIFE+ project • Ethanol (as per 100% EtOH) 5.000 m3/a •New raw material handling; receiving station Feedstock •Unique way of integrating the ethanol plant in a • Industrial bakery waste & industrial process conventional refinery residue •Production starts Q2 2015 • Out dated waste bread from shops and markets • Approx. 20.000 t/a feedstock is required Products • Anhydrous fuel grade ethanol • Liquid animal feed for farms / feed for biogas plant (AD) Etanolix 2.0 - full integration with Refinery systems Process sewer water treated in refinery water processing unit Controlled from local control-room Good storage Safety systems capabilities Nitrogen for safety-inerting Instrument Air City-water Refinery Ethanol Heat from refinery steam system Brackish water for cooling connection to refinery cooling-system. Ethanol direct to refinery blending tanks Deliveries by ordinary transport-solutions 9 Cellunolix® - sawmill side products Feedstock characteristics Cellunolix® Plant • Non-food ligno-cellulosic material Feedstock: Saw dust and chips • High ethanol yield Product: Renewable Ethanol • Stable quality • Cost depending on local usage Capacity: 10-100 million liters/year/unit Sources CO2 savings: Up to 90 % Co-product: - Lignin based solid fuels • Wood industry -CO2 Collection systems st • Integrated to saw mill Units: 1 unit in Finland under • Direct transportation from saw mills construction – operation 2016 Kajaani Cellunolix® Cellunolix® - from saw dust to biofuel Energy & utilities Chemicals • Steam • Enzymes • Electricity • Yeast • Process water •….. Saw dust/chip • Cooling water Ethanol 100% Distillation & Pre‐treatment Hydrolysis Fermentation Dehydration Ethanol Other products Waste water • Lignin • Process waste water •Syrup • Turpentine •Furfural •Co2 …. 10 Investment of EUR 40 million, of which 30% is covered by an investment subsidy granted by the Ministry of Employment and the Economy for biorefineries producing transport biofuels. When completed, the Cellunolix® plant will employ 15–20 people directly and about 15 people indirectly. During product development, planning and construction, the project will generate about 200 person-years of employment. ”Technology shift” in refineries Traditional refinery Plant integration with biounit Technology development; ‐co‐processing ‐new technologies 11 Future vision Local production of feedstocks at e.g. forest industry installations Way forward; how to profitably meet a ”renewable future” ? $ Renewables, Bio Fossil Subsidies? Tax breaks? Time 12 Way forward If handled correctly, the sustainability issue will become a growth engine to conduct the business forward !! Thanks for Your attention! 13.