The document discusses IH2 technology, which can convert biomass into transportation fuels. IH2 technology offers several advantages over other biofuel production methods, including lower capital costs and the ability to produce drop-in hydrocarbon fuels from a variety of feedstocks. The technology can operate as a standalone process or be integrated with existing industrial operations like pulp/paper mills or ethanol plants to provide synergistic benefits. Commercialization of IH2 technology is progressing, with the first demonstration and commercial licenses expected in early 2012. The technology could potentially be applied in Latin America to produce cellulosic biofuels.

1. Latin American Refining Technology Conference
Biomass to Transportation Fuels via IH2 Technology
Celeste McLeod
CRI Catalyst Company, Houston, Texas, United States
Terry Marker, Larry Felix, Martin Linck, Michael Roberts
Gas Technology Institute, Des Plaines, Illinois, United States

2. Disclaimer
The information contained in this material is intended to be general in nature
and must not be relied on as specific advice in connection with any decisions
you may make. None of CRI/Criterion Inc or any of its affiliated companies are
liable for any action you may take as a result of you relying on such material or
for any loss or damage suffered by you as a result of you taking this action.
Furthermore, these materials do not in any way constitute an offer to provide
specific products or services. Some products or services may not be available
in certain countries or political subdivisions thereof.
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3. Latin America
• A Leader in 1st Generation
Biofuel Implementation
• Majority of countries have
mandatory blending of ethanol
Source: Hart Energy’s International Fuel
and/or biodiesel
Quality Center, January 2012
• Research on cellulosic ethanol
in certain counties, Brazil,
Colombia, Argentina…
• No mandates for 2nd Generation
Biofuels
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4. IH2 Technology Points Covered
• IH2 Technology & Differentiation
• Product Quality
• Economic synergy from integration with existing operations
• Commercialization Status
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5. IH2 Design Principles
• Produce fungible cellulosic hydrocarbon fuel/blend stock from a broad range
of inedible/residual biomass feed at low cost
• Requires no infrastructure other than road/rail transport into and out of the
production site
• Have minimal impact on the surrounding environment
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6. IH2 Technology Design Elements
• Feed Conditioning Unit:
– Sized, mixed and dried to moisture contents between 10-45wt%
• 1st Stage Catalytic Hydropyrolysis Reactor (bubbling fluidized bed)
– Biomass meets catalyst and H2 at ~400C to remove >90% oxygen
• Hydrogen Manufacturing Unit (HMU)
– Converts C3- gases to renewable H2 sufficient to meet all requirements
• Hydroconversion Reactor (low pressure fixed bed HT)
– 1st stage product ‘polished’ over a second catalyst system
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7. IH2 Technology Advantages & 11 Key Differentiators
Advantages Green CO2
Stand Alone or Synergistic Operation Light Gases 3) Renewable H2
Feedstock Flexible Wood/Forest
Hi Press
Residue
Steam
Differentiators HDO’d Liquid
Exothermic Ag Residue
Cellulosic
Low Capital (low pressure, low TAN, simple) Hydrocarbon
Product
Low Operating costs Gasoline, Jet
and Diesel
Hydrocarbon Yields 80-160 gal/ton MAF Garbage (MSW)
2) Bubbling Fluidized Bed
Proprietary Catalyst
4) Fixed Bed
Hydrotreater Range
Self-sufficient internal “green” H2 Renewable H2 Proprietary Catalyst
Hot Water
Hydrocarbon
340-470C Renewable H2
>90% Green House Gas reduction* <500psig <500psig
Energy Crops
Eases logistical constraints (H2)
High BTU HC (blend stock & ‘drop in’) N/S stream
for Fertilizer
Replaces ‘whole barrel’ gas/jet/diesel Algae
Fungible in Fuel Pool Hydropyrolysis Hydroconversion
Attractive economics Char (burn)
Integrating existing technologies 1) Feed Conditioning
Sizing , Drying & Feeding
Rapid implementation
* IH2 technology LCA Analysis conducted by Prof. Shonnard, et al Michigan Technical University; Feed stock dependent
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8. IH2 Liquid Yields and Feedstock Flexibility
Wood PetroAlgae Aquaflow Bagasse Blue Marble Corn Stover
Lemna Micro Algae Macro Algae
Feed wt % C 49.7 46.3 43.1 43.1 34.0 40.2
Feed wt % H 5.8 5.8 6.1 5.0 4.43 5.0
Feed wt % O 43.9 35.7 20.4 35.3 23.6 35.7
Feed wt % N 0.11 3.7 6.5 0.34 4.6 1.0
Feed wt % S 0.03 0.3 0.7 0.10 1.9 0.05
Feed wt % Ash 0.5 8.2 23.1 16.2 29.4 18.1
Feed H/C 1.40 1.50 1.70 1.39 1.56 1.49
Typical % C4 + 28 30 46 30 35 21
Liquid Yield
(MAF)
C4+ Gallon/Ton 92 100 157 100 119 67
MAF
Wt % Oxygen* <1 <1 <1 <1 <1 <1
TAN # <0.05 <0.05 <0.5 <0.05 <0.05 <0.05
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9. IH2 Technology Product Property Comparison
Fast Pyrolysis Oil IH2 product
% Oxygen 50 <1.0
% Water 20 <0.2
TAN 100 <1
Stability poor Good
Heating value (Btu/lb) 6560 18000
% Gasoline Non-distillable 54-75
% Diesel Non-distillable 23-46
Compatibility with hydrocarbon No Excellent
refinery products
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10. IH2 Technology Operating Modes
• Full Stand Alone
• Economically Integrated
– Pulp & Paper / Forest Products
– 1st Generation Ethanol
– Algae
– Refining
– (Municipal Solid Waste)
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11. IH2 Technology Synergy - Pulp & Paper / Forest
Products
Green CO2
Light Gases 3) Renewable H2
Consumes various feeds Wood/Forest
Residue Hi Press
slash Steam
round wood HDO’d Liquid
chips Ag Residue
saw dust Cellulosic
Hydrocarbon
mill sludges Product
Gasoline, Jet
mixed feeds Garbage (MSW)
2) Bubbling Fluidized Bed 4) Fixed Bed and Diesel
Proprietary Catalyst Hydrotreater Range
Renewable H2 Proprietary Catalyst Hydrocarbon
Hot Water
Improved site margins 340-470C
<500psig
Renewable H2
<500psig
conversion of low cost feeds Energy Crops
land fill/other cost avoidance N/S stream
for Fertilizer
export HP steam to mill Algae
liquid hydrocarbon for sale or use Hydropyrolysis Hydroconversion
Char (burn)
1) Feed Conditioning
IH2 derived fuel 96% GHG Reduction* Sizing , Drying & Feeding
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12. IH2 Technology Synergy - Ethanol Plants
Green CO2
Consumes cellulosic residues
bagasse Light Gases 3) Renewable H2
Wood/Forest
stover Residue Hi Press
Steam
mixed feeds
HDO’d Liquid
Ag Residue
Improved site margins Cellulosic
conversion of low cost feeds Hydrocarbon
Product
higher value use of cellulose Gasoline, Jet
and Diesel
2) Bubbling Fluidized Bed 4) Fixed Bed
Garbage (MSW)
export steam offsets use of cellulose Proprietary Catalyst Hydrotreater Range
Hydrocarbon
Renewable H2 Proprietary Catalyst
prevent market surplus DDGS 340-470C Renewable H2 Hot Water
<500psig <500psig
provides liquid fertilizer for use Energy Crops
cellulosic hydrocarbon for sale or use N/S stream
for Fertilizer
Algae
Reduces site average C.I. of alcohol made Hydropyrolysis Hydroconversion
U.S. Department of Energy: Char (burn)
1) Feed Conditioning
Corn ethanol averages 19% reduction Sizing , Drying & Feeding
Cane ethanol averages 78% reduction
IH2 derived fuels 93-97% reduction *
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13. IH2 Technology Synergy - Multiple Algae Scenarios
Green CO2
Consume post extractive residue Light Gases 3) Renewable H2
protein extraction (food & fuel) Wood/Forest
Residue Hi Press
lipid extraction (energy crop) Steam
HDO’d Liquid
Consume whole algae Ag Residue
Cellulosic
Useful for remediation Hydrocarbon
Product
Useful to simplify process for fuel Gasoline, Jet
with mixed cellulosic/wood feeds Garbage (MSW)
2) Bubbling Fluidized Bed 4) Fixed Bed and Diesel
Range
Proprietary Catalyst Hydrotreater
Renewable H2 Proprietary Catalyst Hydrocarbon
340-470C Renewable H2 Hot Water
Improved site margins <500psig <500psig
conversion of low cost feeds Energy Crops
export HP steam N/S stream
for Fertilizer
re-use of CO2/liquid fertilizer Algae
use of low grade heat to ponds Hydropyrolysis Hydroconversion
liquid hydrocarbon for sale or use
Char (burn)
1) Feed Conditioning
Sizing , Drying & Feeding
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14. IH2 Technology Synergy - Refining
Option 1: Full Standalone
Location Flexibility, Minimum Environmental Impact
Maximum GHG reduction
Lowest CI product
Highest Capital Cost
Option 2: Integrated with Refinery HT
Minimum Environmental Impact
Lowest CI product
Maximum GHG reduction
Lower Capital Cost
Option 3 Integrated with Refinery H2
Higher Environmental Impact
Reduced GHG reduction
Higher CI product
Lowest Cost
Capital 25-30% lower than base case
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15. IH2 NREL 2000t/day (Wood)
Installed Equipment Costs $112.6mln Operating Costs Total $1.60/gal*
4.7
29.6 Wood $71.97/dry ton
17.7 Feed
5.9 Other Op Costs:
36.6
1st Stage HP/ 2nd Catalyst, Disposal, etc.
Stage HC Fixed Cost
17.3
6.8 Fractionation 91.31
Depreciation
HMU
2.14 Avg Income Tax
Utilities & Contingency 7.8
@ 35%
44.0
*Includes $0.093/gal coproduct credit
NREL Assumes Greenfield Development incl Land Acquisition, etc
Total Capital Investment $232.8mln
• Equipment Cost - HMU is primary ~40%
• Total Capital ~Double Installed Equipment
Installed Equipment Costs
102.7
112.6 Land/Develop • Feed Stock ~55% of Operating Cost
Permits & S/U
Standard Project Add-In's** • Minimum Fuel Selling Price – 1.60$/gal (2007 USD)
11.7
• Refinery Synergy w/Refinery H2 Supply
5.7
** Prorated Expense (10%), H O & Construction (20%), Field
• Reduces Capital Cost ~44.0MM$
Expense (10%), Working Capital (10%) , Project Contingency (30%) • Estimated MSP $1.36/gal (2007 USD)
Title: Techno-economic Analysis of the Integrated Hydropyrolysis and Hydroconversion • NREL Economics validated by Global Engineering &
Process for the Production of Gasoline and Diesel Fuels from Biomass
Author: Eric C. D. Tan Platform: Analysis Report Date: May 23, 2011 Construction Company
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16. Financial Comparison
Biofuels Production Technologies
Process Capex Range Relative Cost per Gallon
Gasoline Equivalent
Fast Pyrolysis & $250-$287 million $3.41-$6.55/GGE
Upgrading
Cellulosic Ethanol $156-$391 million $5.15-$10.71/GGE
via Fermentation
Gasification & $500-$610 million $4.30-$4.80/GGE
Fischer-Tropsch
IH2 Process $125-$135 Million $1.30-$1.60/GGE
Source: National Renewable Energy Laboratory
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17. IH2 Technology Development
• Bench Scale IH2 Technology
– Since 2009 @ 0.5-kg/day Semi
continuous
• Multi feed stock testing
• Catalyst development
• IH2 Technology Pilot Plant
– Start-Up in February, Continuous
operation @ 50-kg/day
• Demonstrate biomass handling and
conveyance
• Verify economics including catalyst
consumption
• Produce product in quantities for
blending trials, engine testing, etc.
• Confirm product valuation
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18. IH2 Commercial Timeline, Current
• Set to execute 1st demo and commercial licenses 1Q 2012
– Initiating basic engineering 5t/d
– Contracting basic engineering 330t/d
• Significant interest from Asia
• US Refining Industry looking to partner
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19. IH2 Technology Conclusions
• Converts virtually any (ligno)cellulosic biomass to produce high quality
hydrocarbon fuels/blend stock at low cost
• Offers Stand Alone & Synergistic Installation
– Synergy benefits beyond solely hydrocarbon, which varies by industry
– Refinery Synergy can reduce capital cost and fuel MSP
• Fuel MSP at estimate of 1.60$/gal (2007$)
− May further decrease based on feed selection and site requirements
− Technology comparison - IH2 Derived Fuels cost advantaged
− Typically less than U.S. bulk and rack pricing for regular/premium gasoline, evaluate upside
by market
• Commercial Implementation is progressing rapidly
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20. IH2 Technology In Latin America
• Latin America produced 32%* of the
World’s Biofuels in 2010
• Recognized Leader
http://apod.nasa.gov/apod/image/0011/earthlights2_dmsp_big.jpg
• IH2 Technology offers Latin America
− Leadership potential in 2nd generation cellulosic
Image Credit: C. Mayhew & R. Simmon (NASA/GSFC)
renewable fuels
− Strong Integration possibilities w/ Existing 1st
Generation Biofuels & Refining base
− Export Capacity could be aided by Carbon
Intensity Reduction
* Based on U.S. Energy Information Association data
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21. Gracias & Obrigada
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