Renewable Aviation Fuels

Carbon War Room April 2013

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Carbon War Room

2

The Market

Policy

Technology

not enough

not the bottleneck

CWR: Dismantling Market Barriers

Capital

Carbon War Room

3

$300

$18,000

$125,000

In ($) Billions

Philanthropy

Government

Private Capital

Source: Spring Ventures LLC, Bloomberg NEF

Biofuel Market Context: 2011 International Energy Agency Biofuel Roadmap and Production Forecast

Global biofuel supply grows from 2.5 EJ today to 32 EJ in 2050 Biofuels share of total transport fuel

increases from 2% today, to 27% in 2050

In the longer-term, diesel/kerosene-type biofuels are particularly important to decarbonise heavy transport modes

Large-scale deployment of advanced biofuels will be vital to meet the roadmap targets

$11 trillion in investment in biofuels would be needed between 2011 and 2050

Fina

l ene

rgy

(EJ)

The Aviation Industry

5

650million tons total CO2e emissions in 2010

Forecast to reach 1100 by 2020 on Business-as-Usual

Emissions Reductions

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Plane & engine efficiency, satellite based navigation, and other advancements are critical.

Renewable Aviation Fuels can get to GigaTon scale by catalyzing the switch to renewables for the entire “barrel”

Source: Kar, Rahul (2010). Dynamics of Implementation of Mitigating Measures to Reduce CO2 Emissions from Commercial Aviation. S.M. thesis: Massachusetts Institute of Technology.

Renewable jet fuels are essential to meet emission reduction targets.

Advanced Biofuel Feedstock Overview

Jatropha is a perennial tree, which produces oil-bearing seeds and is

capable of growing on marginal land

Pongamia is a leguminous oilseed-producing tree with naturally high oil

yields and can be grown in marginal conditions

Halophytes are salt tolerant plants capable of growing on coastal

deserts and can be irrigated with full strength seawater

Aquatic microorganisms capable of producing high oil yields- Autotrophic algae are grown in open ponds or photo-bioreactors- Heterotrophic algae are grown in dark fermentation tanks

Aquatic, photosynthetic microorganisms capable of producing high volumes of biomass

Non-food cellulosic biomass can include agriculture residues, timber residues, municipal solid waste, or dedicated biomass energy crops such as macroalgae

Camelina is an annual oilseed-producing plant, which is used as a

rotational crop in dry-wheat farming regions

Jatropha

Camelina

Pongamia

Halophytes

Algae

Cyano-bacteria

Cellulosic Biomass

Industrial Gasses

Emissions from steel mills, coal-fired power plants, and other industrial facilities.

Natural Oils

Jatropha and Other Perennial Oilseeds

Camelina Halophytes

Aquatic Micro-

Organisms (AMOs)

Hydrolysis of Biomass to

Produce Sugars

Biomass

Hydrotreating

Thermochemical Conversion of Biomass

Pyrolysis Oil

Gasification to Fischer-

Tröpsch

Fermentation of Sugars through

GMOs to Produce Alcohols, Oils or Hydrocarbons

Further Refining to Produce Finished Fuels

Liquid-Phase

Catalytic Processing

Advanced Biofuel Conversion Pathways

• Food-based crops (corn, sugarcane)

• Dedicated Energy Crops

• Residues/Waste streams

Source: FullerSmith LLC

Ethanol, Butanol, Lactic Acid, Chemical Monomers

Fermentable or “free”

sugars

Overview of Biomass Conversion Pathways: Highly complex compared to natural oils

Cellulose

Hemi-cellulos

eLignin

Physiochemical, chemical, biological,

or electrical pre-treatment

FermentationDilute acid or amylase pretreatment

Enzymatic or chemical hydrolysis

Recycled Power

Combustion

Bio-gasses

Bio-char

Bio-oils

Pyrolysis

Co-products Deoxygenat

ed hydrocarbon

s

Hydrogenation, cracking

Gasoline, Diesel, Jet

Fuel, Organic Chemicals

Isomerization

Dirty Syngas

Gasification Clean Syngas

Gas Clean-up

Alcohol Oligomer-ization

Alcohols

Alcohol Synthesis

Fischer-Tropsch Synthesis

Oxygenated Hydrocarbons

Liquid-phase catalytic

Processing

Sta

rch

Lig

nocellu

losic

B

iom

ass

Alcohol Oligomerization

Lipids, hydrocarbon

precursors, and drop-in fuels

GMOs

Source: FullerSmith LLC

Context

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• Fuel industries are extremely capital intensive

• Economic crash has delayed advanced fuel industry commercialization

• Hard to get project finance• Investor interest flagged• Stock values down – starting to stabilize

• Energy markets are hugely distorted – not a level playing field!

• > 250 types of fossil fuel support in just the 24 OECD countries (http://www.oecd.org/site/tadffss/)

• IMF: Energy Subsidy Reform: Lessons and Implications

The Barriers

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GLOBAL, COMMERCIAL SCALE, ADVANCED, RENEWABLE FUEL INDUSTRY

Information

Sustainability

Technology

Finance

Feedstocks

Logistics

Technical Certification

The Barriers: Information

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Most companies & many technologies are early stageTremendous variation in:

Lack of uniform metrics and side-by-side analysis

Lack of Understanding of options, roles, risks, commercialization pathways, and potential to scale

Capital requirements

Technology maturity

Environmental / Carbon Impacts Feedstock Availability & Costs

Better information is required to accelerate the formation of the Renewable

Aviation Fuel Market

RenewableJetFuels.org

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The Barriers: Sustainability

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The Barriers: Finance: Valley of Death

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