29
Introduction to Nexant and Gasification Gasification Technologies Council – Member Meeting
Introduction to Nexant
and Gasification
Gasification Technologies
Council – Member Meeting
Introduction to Nexant
and Gasification May 2013
Prepared For:
Gasification Technologies Council – Member Meeting
Presentation
www.nexant.com
44 South Broadway, White Plains, NY 10601-4425
Telephone: +1 914 609 0300 Facsimile: +1 914 609 0399
Disclaimer
“This presentation was prepared by Nexant Inc. (“Nexant”). Except where specifically stated otherwise in the presentation, the information contained herein was prepared on the
basis of information that is publicly available and has not been independently verified or otherwise examined to determine its accuracy, completeness or financial feasibility.
Neither NEXANT, nor any person acting on behalf of NEXANT assumes any liabilities with respect to the use of or for damages resulting from the use of any information
contained in this presentation. NEXANT does not represent or warrant that any assumed conditions will come to pass.
This presentation is integral and must be read in its entirety.
The presentation is given on the understanding that the recipient will maintain the contents confidential except for internal use. The presentation should not be reproduced,
distributed or used without first obtaining prior written consent by NEXANT. This presentation may not be relied upon by others.
This notice must accompany every copy of this presentation.”
GTC May 2013
Page 3
Agenda: Introduction to Nexant and Gasification
Introduction to Nexant
Gasification in Perspective
Opportunities and Challenges
GTC May 2013
Page 4
Agenda: Introduction to Nexant and Gasification
Introduction to Nexant
- Who we are and are not
- What we do
- How we work
Gasification in Perspective
Opportunities and Challenges
GTC May 2013
Page 5
Introduction to Nexant – who we are and are not
Headquartered in San Francisco, with thirty-one offices around the world
700 professionals across three businesses: Energy & Chemicals
Consulting, Energy Efficiency, Grid Management
Over 3,500 industry assignments completed in more than 70 countries
Named to the Global Cleantech 100 in both 2012 and 2011, a list of the top
100 private companies in clean technology – companies that are best
positioned to solve tomorrow’s clean technology challenges
Are not technology owners/licensors or primary engineers
GTC May 2013
Page 6
Introduction to Nexant – what we do
Market assessments
- Global and regional markets – supply, demand, trade, market drivers
- Competitive landscape assessment
- Target client identification and approach
Techno-economic analysis
- Cost competitiveness modeling, benchmarking
- Feedstock economics – agriculture / forestry / manufacturing interface
- Competition with traditional routes
Technology evaluation
- For developing or established technologies
- Competitive technology screening for application in projects
- Development assistance, stage-gating
GTC May 2013
Page 7
Nexant is a leading provider of due diligence, especially in biorenewables
Over the past three years, Nexant has performed over 25 due diligence
assignments, especially in biomass-based renewable technologies.
Nexant has been engaged for:
- due diligence on IPOs for several of the leading global biotech
developers of biofuel and renewable chemical technologies, including
first of a kind projects
- due diligence on cellulose sugars, cellulosic ethanologens, biobutanol,
plastic to fuels and chemicals, and other investments
- numerous technical assessments, feasibility studies, process
improvement assignments, and other critical work in renewables for
the U.S. DOE and private developers
GTC May 2013
Page 8
Current due diligence assignments include relevant examples
For a prospective private equity investor in a project using a unique
thermochemical process to convert mixed waste plastics to high-value
hydrocarbon products
For the U.S. DOE, technical due diligence and Independent Engineering
for a project to produce foodstuffs and cellulosic ethanol from crops and
agricultural wastes using thermochemical and biochemical platforms
For an investor/project developer, full due diligence and Independent
Engineering for development and construction of a world class natural
gas based fertilizer complex (based on steam reforming of natural gas)
GTC May 2013
Page 9
Nexant experience in gasification
Nexant has a long history of deep experience working with many types of
gasifiers in various applications. For example, Nexant has worked on:
- two of the largest gasifiers in North America,
- commercialization of black liquor gasification at a pulp mill,
- agricultural waste gasification at a commercial farm, and many others
Nexant has worked with clients on gasification of a wide range of
feedstocks, evolving from fossil to renewable:
- coal, pet coke, and other fossil feedstocks
- solid biomass, such as wood chips, MSW/RDF, agricultural waste, etc.
- liquid biomass, such as black liquor, and others
Illustrative Nexant client engagement – Project design, market
assessment, product mix design, customer selection/off-take agreements
for a project to produce biochemicals via gasification of woody biomass
GTC May 2013
Page 10
Illustrative Nexant engagements in gasification
Support client ‘s decision to invest in biomass gasification technology by providing due diligence, including:
- Independent assessment of technology and production costs to validate claims of
technology provider
- Identification of most promising markets and applications to target
- Assessment of potential profitability
Feasibility of a biomass co-firing project for an independent power producer
- Viability of process for wood gasification to produce fuel gas
- Assessment of co-firing fuel gas with coal in circulating fluidized bed
- Nexant also provided overall system integration and cost estimates
Compare requirements vs. benefits of pyrolysis, staged gasification, and indirect gasification
- Biomass feedstock availability assessment
- Assess primary and downstream technologies (pyrolysis, gasification,
fermentation, mixed alcohols synthesis, FT, etc.)
- Comparison of production economics vs. petro-based alternative
GTC May 2013
Page 11
Supporting a client's coal gasification plan
Assess techno-economic viability of client's project to convert coal into fuels and power via gasification:
- Coal gasification technical content development
- Coal to methanol-to-gasoline system baseline analysis
- Review capital cost estimates of conceptual design
- Process design basis for a commercial scale Fischer-Tropsch facility with various levels of carbon capture
- System analysis support for liquid fuels program – assessment of finance, tax and subsidy policies on the economic performance of a large Fischer-Tropsch facility
- Technical, economic and environmental assessment of small scale Fischer-Tropsch facilities
- Financial analysis of advanced fuel and power systems
- Power systems financial model development
- Project finance structures for the economic analysis of fossil-based energy projects
- Process simulation modeling support
- Engineering cost estimating modeling supports
GTC May 2013
Page 12
Introduction to Nexant – how we work
Help clients make informed decisions by providing a deep understanding
of the technical and commercial aspects of energy and chemicals,
including renewables
Integrating into CLIENT’s decision making process:
CLIENT
Internal
capabilities
Other
resources
and
partners
Ongoing
efforts
Success for
CLIENT + =
Nexant assistance
Provide a “lay of
the land” and
map out possible
pathways
Assess markets
and technologies
Identify key
players/
prospective
partners
GTC May 2013
Page 13
Working with clients across the value chain
Typically, one variable is independent; the others are selected to optimize
overall project performance
- Note that feedstocks and products can be on-site, captive, or market
Objectives must be clear and resolute
Strategy must be developed to meet the objectives within constraints and
boundaries
Feedstocks Process
Technology
Fuel/chemical
products
GTC May 2013
Page 14
Agenda: Introduction to Nexant and Gasification
Introduction to Nexant
Gasification in Perspective
- Commercially proven
- Feedstock flexible
- Role of gasification
Opportunities and Challenges
GTC May 2013
Page 15
Gasification is commercially proven
Gasification is a well proven commercial technology that has been in use
for decades
There are many prospective gasifier suppliers
Gasification must be selected, designed, and tailored to meet specific
operating conditions, feedstocks, and product specifications
GTC May 2013
Page 16
Gasification deployment forces the adopter to make many decisions
Feedstock characteristics
- Type
- Format, size, moisture
- Consistency
Feedstock prep and handling
Gasifier flow type
- Co-current
- Counter-current
- Fluidized bed
Gasifier size
Mechanical construction
Gas mixture (including O2%)
O2 delivery system
Temperature
Pressure
Efficiency
Maintenance schedule
And other key operating
variables . . .
Some key variables to consider include the following:
GTC May 2013
Page 17
Gasification is extremely flexible in feedstocks
Feedstock flexibility is a highly desirable feature
- Seasonality
- Availability
- Cost
Flexibility eases logistical challenges
Feedstocks gasified commercially include a diverse list broadly grouped
into 3 categories of carbonaceous materials
- Fossil-based
- Biomass – solid
- Biomass – liquid
GTC May 2013
Page 18
Gasification could be the answer in a variety of commercial situations
The role of gasification
Produce products Solve problems
- Waste
disposal/reduction,
landfill diversion
- See Plasco website
“Where does your
garbage go?”
“We’re changing
the way
communities deal
with waste”
- Displace fossil-
based products
- Fuels, Heat and
Power, including
burner gas
- Chemicals
- Products can be
categorized broadly
as either:
for use on site
and/or
for external sale
GTC May 2013
Page 19
Agenda: Introduction to Nexant and Gasification
Introduction to Nexant
Gasification in Perspective
Opportunities and Challenges
- Opportunities
- Challenges
- Reasons for optimism
GTC May 2013
Page 20
Opportunities for gasification
Limitless
Target specific unmet market needs
Use your imagination!
Gasification is good!
GTC May 2013
Page 21
Example – gasification to syngas
Syngas to fuels
- BTL, GTL, CTL, etc.
Syngas to chemicals
- Project Independence, Fischer-Tropsch, etc.
- Kiverdi, LanzaTech, PRIMUS, etc.
Syngas derivatives are limitless
GTC May 2013
Page 22
Illustrative opportunities at an integrated wood products facility
Unmerchant-
able timber
Heat to dry lumber
+
Electricity to power site
+
Green power sales to grid
Heat to dry lumber
+
Renewable diesel for
harvesters, logging trucks,
lumber delivery, etc.
Gasification
Gasification
Fischer-
Tropsch
process
Wood waste +
unmerchant-
able timber
Wood waste
Fungible chemicals
to market Gasification
Catalyzed
conversion
Gasification can be highly efficient but must be selected, designed, and
deployed carefully
GTC May 2013
Page 23
Categories of opportunities for gasification
Integrated
- Nexen Longlake and SCS HECA projects
- Sawmill
- Walnut farm
Stand alone
- Fulcrum
- Range Fuels
- INEOS Bio
On demand power
- “Swing” power to balance intermittent renewable power (e.g., solar,
wind)
GTC May 2013
Page 24
Challenges for gasification
1. Must be:
- Practical – solve a problem or make money or both (natural gas price
is an issue)
- Selected carefully – to suit the application
- Done right (i.e., carefully deployed)
2. Quality/purity of syngas as a valuable raw material
3. Feedstock volume/cost/logistics
The key challenge for gasification:
broader commercialization financing
GTC May 2013
Page 25
Time is right for increased commercialization of gasification of renewable feedstocks
Progress is encouraging
Biorefineries have a potentially bright future, IF they can meet a number of
important competitive requirements
- Fungible products
- Infrastructure compatible
- Cost-competitive
First prove the core technology at scale and set realistic expectations
Carrot is enormous
GTC May 2013
Page 26
In closing
Ronald Reagan
“[T]he most fertile and rapidly growing sector of any economy is
that part that exists right now only as a dream in someone's head
or an inspiration in his heart ”
GTC May 2013
Page 27
In closing
Mel Brooks
“He who hesitates is poor”
GTC May 2013
Page 28
Contact information
Eric Bober
Director, Strategy – Biorenewables
Nexant, Inc.
44 South Broadway, 4th Floor
White Plains, NY 10601
914-609-0302 Office
914-310-4281 Cell
Nexant, Inc.
San Francisco
London
New York
Bangkok
Bahrain
Houston
Washington
Singapore
Phoenix
Madison
Boulder
Dusseldorf
Shanghai
Beijing
www.nexant.com
e-mail:[email protected]
