Presentation on the International Conference:„Perspectives of Industrial Investment in the Gulf Cooperation Council Countries“
Ras al Khaimah, UAE
06-08 November 2010
agend:
Challenges
kerosene, a volatile commodity
future fuel expenses
the target – set by IATA
Solution
bio fuels from algae
algal cultivation strategies
hydrocorbons vs. bio-fuel
algae bio fuels offer huge potential for the Gulf Region
a novel refinery process
Proposal
algae plus ppi
a promising combination: partnering to complete the value chain
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Besides Petroleum - The promise of bio fuels to contribute to the solution of current challenges
1. Besides Petroleum
The promise of bio fuels to contribute to the solution of current challenges
Presentation on the International Conference:
„Perspectives of Industrial Investment in the Gulf Cooperation Council Countries“
Ras al Khaimah, UAE
06-08 November 2010
Dr. Horst Walther
Pacific Propellants, Inc.
a 2nd
generation biofuel refinery
6015 S Virginia St., Ste. E480
Reno, NV 89502, USA
horst.walther@pcfpp.com
+44 208 1237381
2. www.pcfpp.com2010-08-10 3
challenges
Burning fossil fuels increases atmospheric levels of carbon dioxide.
Fossil fuels are a finite resource.
Some industry sectors like aviation cannot switch to solar
electricity.
Aviation industry accounts for 2% of greenhouse gas emissions due to
human activity.
By 2050 aviation emissions are expected to almost equal the amount
from automobiles.
IATA‘s goal is a 25 % reduction of emissions per passenger by 2020.
Only a few renewable feedstock types offer sustaining economic
potential – e.g. algae.
Today refining renewable feedstock into bio fuels requires huge
capital investments.
Today's processes mostly deliver esters not hydrocarbons.
There is a strong need to derive drop-in fuels from renewable
feedstock.
3. www.pcfpp.com2010-08-10 4
challenges - kerosene, a volatile commodity
Jet fuel price once peaked at 180 USD / bbl. It is likely to
approach this level over the next 5 years again.
4. www.pcfpp.com2010-08-10 5
challenges - future fuel expenses
For airlines fuel expenses represent an ever growing
fraction of their total operating expenses.
CAGR = Compound Annual Growth Rate
5. www.pcfpp.com2010-08-10 6
challenges - the target – set by IATA
IATA targets to reduce CO2 emissions by 50% of 2005 level
during the next 40 years – mostly by bio fuels drop-in.
6. www.pcfpp.com2010-08-10 7
solution – bio fuels from algae
productivity figures from the CELLANA consortium on marine algae
Algae are more productive than terrestrial energy crops
*Cellana plant: Kona Pilot Facility, Hawaii
*
There is the general expectation, that only bio fuels from
algae have the potential to deliver the required volumes.
7. www.pcfpp.com2010-08-10 8
solution - algal cultivation strategies
Several types of algae cultivation exist – each has advantages.
Open systems-typically
outdoor open ponds
Closed systems-enclosed clear
plastic vessels (bags or tubes)
known as photo bioreactors, or
dark tanks (such as
fermentation tanks)
Offshore systems-growing
algae in the open ocean-
usually contained in some way
(bags or ropes)
All established production types still offer several severe
challenges to be considered as stable and competitive.
8. www.pcfpp.com2010-08-10 9
solution - kerosene vs. bio-fuel
as petro crude price increases – algae crude price decreases
Source: Booz & Company, Outlook on Climate Change and Aviation
The development can be boosted considerably provided
adequate investments will be done.
9. www.pcfpp.com2010-08-10 10
solution - algae bio fuels …
offer huge potential for the Gulf Region
advantages of the Region:
pre-requisite for fast growth:
long daily sunshine duration,
suitable temperatures: high
growth rates expected,
abundant (sea) water available,
sufficient space (desert areas),
financial & intellectual
potential,
traditional refinery
infrastructure.
But still considerable financial & intellectual investments
are necessary
10. www.pcfpp.com2010-08-10 11
solution – a novel refinery process
Algae are the fastest growing feedstock
Depending on strain they contain 5 – 50% lipids.
But further processing consumes a lot its energy content.
For harvesting, dewatering, drying & blending innovation is moving fast.
To derive true hydrocarbons a cheap and efficient process was still
missing.
cultivation
harvesting
dewatering
drying
extraction
refining
blending
The new pacific propellants bio refinery process promises
to close the refining gap.
9 conversion techniques were known:
Fermentation of Sugar/Starch Crops
Fermentation of Lignocellulosic Biomass
Transesterification of Triglycerides
Gasification: Formation of Syngas
Fast Pyrolysis
Fischer-Tropsch Synthesis
Hydrogenation
Conversion of Syngas
Anaerobic Digestion
11. www.pcfpp.com2010-08-10 12
proposal - algae plus ppi
a promising combination
Pacific propellants, Inc. has developed a unique process to
convert bio fuel feedstock to hydrocarbons.
The ppi process offers advantages over established processes …
delivers a fuel very similar to
traditional fuel from fossil sources.
requires lower of capital costs than
traditional refinery processes.
is linearly scalable from mobile one
container-units to large plants.
operates at moderate temperatures
(~ 50 °C) and normal pressure.
does not require expensive or low
availability materials for input.
does not produce any hazardous by-
products
Decentralized plants, e.g. near airports, could capitalize
on the local potential of the region.
12. www.pcfpp.com2010-08-10 13
proposal – partnering to complete the value chain
An existing large scale algae feedstock producer
Pacific propellants, Inc. and its unique bio refinery process.
Renewable
feedstock
Renewable
feedstock
ppippi
Renewable
jet fuel
Renewable
jet fuel
For full value chain processing a joint venture of ppi a
large scale algae feedstock producer is preferred.