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Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X C h a n g e w w w . d o c u - t r a c k . c o m Click to buy NOW! P D F - X C h a n g e w w w . d o c u - t r a c k . c o m

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Page 1: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Paving the way for GTL products ininternational marketsPaul Morgan January 2013

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Page 2: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Copyright reserved 2013, Sasol Technology

Forward Looking Statements:In this document we make certain statements that are not historical facts and relate to analyses and otherinformation which are based on forecasts of future results and estimates of amounts not yet determinable. Thesestatements may also relate to our future prospects, developments and business strategies. Examples of suchforward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations,volume growth, increases in market share, total shareholder return and cost reductions. Words such as "believe","anticipate", “expect”, "intend", "seek", "will", "plan", "could", "may", "endeavour" and "project" and similarexpressions are intended to identify such forward-looking statements, but are not the exclusive means ofidentifying such statements. By their very nature, forward-looking statements involve inherent risks anduncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and otherforward-looking statements will not be achieved. If one or more of these risks materialise, or should underlyingassumptions prove incorrect, our actual results may differ materially from those anticipated. You shouldunderstand that a number of important factors could cause actual results to differ materially from the plans,objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factorsare discussed more fully in our most recent annual report under the Securities Exchange Act of 1934 on Form 20-F filed on 12 October 2012 and in other filings with the United States Securities and Exchange Commission. Thelist of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investmentdecisions, you should carefully consider both these factors and other uncertainties and events. Forward-lookingstatements apply only as of the date on which they are made, and we do not undertake any obligation to update orrevise any of them, whether as a result of new information, future events or otherwise.

The Sasol Chevron name and the associated symbol are proprietary to Sasol Chevron Holdings Limited, and use hereindoes not necessarily imply any endorsement by Sasol Chevron.

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Page 3: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

The Sasol Gas to Liquids (GTL) Process

The Sasol SlurryPhase DistillateTM

process has threesteps:

reforming natural gaswith oxygen and steamto produce syngas

converting syngas intolong-chain waxyhydrocarbons

selectively cracking thewaxy hydrocarbons toproduce GTL diesel andrelated products

Copyright reserved 2013, Sasol Technology

Hydrocarbonsynthesis

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Page 4: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Gas to Liquids Diesel

copyright reserved 2013, Sasol Technology

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Page 5: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

GTL diesel properties:

Copyright reserved 2013, Sasol Technology

ultra low sulphur (<5 ppm)

paraffinic diesel with near zero aromatics and poly-aromatics

very high cetane (> 70)

colourless

lower tailpipe emissions, especially particulate matter

low density ( 0.77 kg/l)

reduced injector fouling

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Page 6: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

GTL diesel emission benefits

copyright reserved 2013, Sasol Technology

GTL diesel has an emissions improvement effect relative to refinery diesel andthis effect is also visible in blends of GTL with refinery diesel

Emissions performance of LTFT diesel

0

20

40

60

80

100

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Refinery DieselLTFT Diesel

Benefit withLTFT diesel

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Emissions performance of GTL diesel

GTL diesel

BenefitWith GTLdiesel

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Page 7: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

GTL diesel product application opportunities

copyright reserved 2013, Sasol Technology

3. Niche market fuel(fleets, mines, etc.)

4. The future: OptimizedGTL diesel engine

1. Blend component to upgrade diesel

2. Premium fuel

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Page 8: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Demonstrating that GTL diesel is fit for purpose

Copyright reserved 2013, Sasol Technology

Sasol was the first to bringcommercial GTL diesel producedusing low temperature hydrocarbonsynthesis to market on a large scaleand thus required:

absolute confidence in performance and fit-for-purpose nature of the product (neat and blends)

a large number of evaluations have beencompleted:

Laboratory chemical property evaluationsengine bench and vehicle evaluations –emissions and performanceengine bench durability testsultimate test is on road application

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Page 9: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Fit-for-Purpose

Chemical analysis

XUD9 injector fouling

Passcar exhaust emissions Vehicle performance

Heavy duty emissions

Passcar fleet trial

Passcar engine durability

CR injector fouling:In-house & DW10

?

ORYX GTL diesel is fit for purpose in its neat form and in blends…..

Very thorough testing of the first diesel produced

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Page 10: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

The ultimate test of neat GTL diesel is on the road

2 SUV’s>350,000 km>40,000 litres

10 buses>295,000 km>126,000 litres

1 SUV11,000 km1,400 litres

1 car>40,000 km>2,400 litres

2 cars>35,000 km3,200 litres

Totals30 vehicles905,000 km226,000 litres14 busses

173,000 km54,000 litres

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Page 11: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Passenger car trials – 75 000 km’s

no fuel related issues during trials

visible combustion chamber and injector

deposits comparable between conventional

diesel and GTL diesel

oil condition monitoring indicated reduced wear

with GTL diesel

emissions tests at completion of trials show GTL

diesel use results in emissions benefits

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Page 12: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Bus fleet trials – 468 000 km’s

no fuel related concernssignificant oil condition and wear benefits

near zero levels of sulphur and aromatics result in:reduced soot loading and possibly smaller particulate sizereduced acidic products entering lubricant

no visible engine wearexhaust smoke benefit with GTL diesel maintained throughout trialinjector tip deposits reduced with GTL diesel3% increase in volumetric fuel consumption

slight measured power reduction – not perceptible to regular drivers

EN590

GTL

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Page 13: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

no fuel related concerns

oil condition monitoring showed:

lubricant soot loading very low

no indication of abnormal wear

oil condition remained well within limits

for all drain intervals

Three year long term SUV trial – 350 000 km’s

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Page 14: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Three year long term SUV trial (continued)

no negative visible effect on exhaust aftertreatmentdevicespost trial component evaluations:

high pressure fuel pumps and injectorssuccessfully passed functional testing - nosignificant wearfuel injectors flow rates within tolerance, andfouling as expected for mileage completed

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Page 15: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Trans African expedition – 11 000 km’s

The GTL Challenge:SUV operated on GTL diesel

GTL diesel ex pilot plant46 days11,000 km1,400 litres GTL diesel “a symbolic passage of

the technology acrossAfrica, from where it was

developed, to Qatar,where it has been taken

to the next stage ofcommercial

development”

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Page 16: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Trans African expedition (continued)

Conclusions

no fuel related concerns

noticeably less oil sooting relative toaccompanying vehicles operated onconventional diesel fuel

GTL vehicle

diesel vehicleCopyright reserved 2013, Sasol Technology

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Page 17: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

GTL diesel has been thoroughly evaluated in actualon road applications as a neat fuel

in 30 vehicles ranging from passenger cars to heavy duty buses> 900,000 km on neat GTL diesel and many more on blended fuels andcomparative reference fuels> 225,000 litres of neat GTL diesel consumedthorough and detailed investigations have shown the superior properties ofGTL diesel

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Page 18: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 18Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Achieving the optimum from fuel and vehicle

Project emission targets were achieved without compromising maximumpower or energy efficiency.

Project demonstrated:

The favourable exhaust emissioncharacteristics of GTL diesel in neatand blended formThat there is significant additionalpotential with a simple vehiclesoftware recalibrationThat GTL diesel fuel can enable verycost-efficient compliance with futureexhaust emissions specificationrequirements

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Slide 19Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Blending of GTL diesel with biodiesel (FAME)

Density increased linearly with FAME additionFAME/GTL diesel blends were more stable than FAME/EN590 blends in theRancimat testFAME addition had a small negative effect on the cold flow properties of theblend (1 deg C increase in CFPP at 10 % FAME addition )Addition of as little as 0.5% FAME resulted in SL-BOCLE performance of>3500gProperties of the GTL diesel blends like the sulphur content, copper corrosionand ash content were unaffected by the addition of FAMEInjector fouling test results: cleanliness improvement when neat GTL diesel iscompared to EN590 diesel. Further improvement was found with FAME/GTLdiesel blends (not seen for FAME/EN590 diesel blends).FAME/GTL diesel blends were shown to result in less fuel (oil) dilution thanthe corresponding FAME/EN590 blends

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Page 20: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 20Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Gas to Liquids Jet Fuel

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Page 21: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 21Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Sasol’s synthetic fuel technologies

Coalor

Biomass

GasificationHigh Temperature

Hydrocarbon synthesis(340ºC, 25 bar)

Gasoline (30-40%)LPG (5%)

Chemicals (20-50%)Diesel (15-20%)

Syngas gas(CO + H2 )

Kerosene (15-20%)

Copyright reserved 2013, Sasol Technology

Natural gas

Reforming Low TemperatureHydrocarbon Synthesis

(220ºC, 20 bar)

Naphtha (15-25%)

Diesel (30-50%)

Lubricants,Waxes (0-30%)

LPG (0-5%)

Kerosene (25-40%)Syngas gas(CO + H2 )

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Page 22: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 22Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Fully synthetic coal based jetFully synthetic coal based jet fuel approvedfuel approved(April 2008)(April 2008)

SemiSemi--synthetic coal based jetsynthetic coal based jet fuel approvedfuel approved(February 1999)(February 1999)

GenericGeneric GTL semiGTL semi--syntheticsynthetic jet fueljet fuel(September 2009)(September 2009)

The synthetic jet fuel journey led by Sasol

Crude oil based JetCrude oil based Jet--A1A1(Since 1944)(Since 1944)

Generic GTLGeneric GTL fully synthetic jet fuel (fully synthetic jet fuel (future?)future?)

Blends of Bio derived and GTL jet fuel (Blends of Bio derived and GTL jet fuel (futurefuture))

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Page 23: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 23Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Approval is understandably a very slow process

Sasol pioneered this protocol (now ASTM D4054) with CTL derived jet fuelCopyright reserved 2013, Sasol Technology

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Page 24: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 24Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Engine Tests with Commercial Turbines

US Navy: T700 engine testSAA Technical: JT-9D engineendurance test

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Page 25: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 25Copyright © 2005, Sasol Technology, All rights reserved, Confidential

GTL jet fuel blends now part of the specificationsClic

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Page 26: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 26Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Sasol’s jet fuel story in summary…

Over a period of 20 years Sasol followed an extensive and comprehensiveroute for the qualification of firstly semi-synthetic and later fully synthetic jetfuel – engaging all international stakeholders and pioneering the processprotocol.Sasol has more than 13 years’ experience of commercially producing andmarketing semi-synthetic jet fuel.Sasol’s fully synthetic jet fuel was approved in April 2008 with thepublication of DEFSTAN 91-91,Issue 6.First passenger flights on Sasol’s fully synthetic jet fuel in September 2010.Generic GTL approval contained in ASTM D7566 (September 2009).The responsible route that Sasol followed was seen as the benchmark fornewcomers (e.g. the Bio Industry – HEFA approval on 5 July 2011).Sasol’s synthetic Jet Fuel is the only alternative fuel that has beenapproved for commercial use in a neat form.

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Page 27: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 27Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Further researchClic

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Page 28: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 28Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Sasol has paved the way for the introductionof GTL fuels in international markets

GTL diesel has been thoroughly tested in neatform and in blendsIt has been tested in the chemistry laboratory, in avariety of engines in test cells and extensively invehicles on the road.These thorough and detailed investigations haveshown the superior properties of GTL diesel to theworld in over 100 research publications andpresentations.Sasol has led the way in gaining internationalapproval for fully synthetic jet fuel – the only fullysynthetic alternative jet fuel.Approval for semi synthetic GTL jet fuel is nowcontained in ASTM D7566Extensive research and testing has shown GTL jetfuel and diesel to be superior products

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Page 29: Paving the way for GTL products in international markets the... · Paving the way for GTL products in international markets Paul Morgan January 2013 Click to buy NOW! P D F - X Chan

Slide 29Copyright © 2005, Sasol Technology, All rights reserved, Confidential

Questions

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