The “real potential” of technologies under development

Sustainable Alternative Jet Fuel

Aircraft Noise and Emissions

Reduction Symposium (ANERS)
20-21 April 2017
Alexandria, Virginia

Steve Csonka
Executive Director, CAAFI
First flight from continuous commercial production of SAJF, 10Mar’16.
Fuel from AltAir Fuels, Paramount, CA (HEFA-SPK 30/70 Blend)
Now being delivered to LAX fuel farm for everyone’s upload

21Apr’17
 Com’l Aviation’s CO2 commitments
To decouple carbon growth from demand growth

These 3 commitments
currently being
promulgated into Int’l
Regulation through an
1.5% annual ICAO/CAEP “basket of
fuel efficiency
improvements
measures”:
∗ CO2 Standards
∗ CORSIA: MBMs
CNG 2020 ∗ “Gap filler” to CNG 2020
∗ Will facilitate SAJF
∗ Will monetize carbon

Similar commitment
from BizAv & DOD

3 May 2017 2
 Overall industry summary:
Sustainable Alternative Jet Fuel (SAJF) activity
∗ SAJF are key for meeting industry’s commitments
∗ Aviation enterprise aligned; SAJF delivers multiple benefits, including net GHG
reductions of from 50-100% (some carbon-negative)
∗ Segment knows how to make it; Activities from FRL 1 to 9
∗ Significant work on pilot, demo, and commercial production
∗ Commercial agreements inked, more being pursued
∗ Pathway identified for fully synthetic (50% max blend today)
∗ Making progress, but still significant challenges – only modest production
– focus on enabling commercial viability
∗ CAAFI originally put in place to work a full range of Public-Private Partnership
activities to break down barriers and lower risk: foster, catalyze, enable,
facilitate, participate
∗ Potential for acceleration a function of many elements
∗ External: Policy, oil price, public pressure, transport paradigm changes
∗ Internal: Risk mitigation, engagement & success replication

3 May 2017 3
 SAJF Sustainable Alternative Jet Fuel
a.k.a. aviation biofuel, biojet, alternative aviation fuel
Alternative: Creating synthetic jet fuel by starting with a different set of
hydrocarbons than petroleum … a synthetic comprised of molecules
essentially identical to petroleum-based jet (in whole or in part) – enables
drop-in approach – no changes to infrastructure or equipment, no
recertification, …
Sustainable: Doing so while taking Social, Economic, and Environmental
progress into account
Jet Fuel: Delivering the properties of ASTM D1655 – pure hydrocarbons
Net LCA GHG reduction: Benefit comes from leaving carbon molecules
in the ground; Instead, utilizing the carbon already in the biosphere via
recycling or dual use

3 May 2017 4
Jet Fuel / Kerosene
Aviation Enterprise optimized around the fuel
A middle distillate kerosene stream is used for aviation fuel
∗ Comprised of mixtures of aliphatic and aromatic hydrocarbons with
carbon numbers predominantly in the range of C8-C16, which is typically
a mixture of:
25% / 11% normal / branched paraffins

30% / 12% / 1% mono- / di- / tri-cycloparraffins

16 / 5% mono- / di-nuclear aromatics

(25% max aromatics – air quality concern)

There is no standard “formula” for Jet Fuel

∗ Composition that delivers the physical properties and performance-
based requirements / characteristics of ASTM D1655 specification
∗ A Gaussian distribution of hydrocarbons, represented as C12H23
 Creating synthetic jet fuel

∗ In order to maintain
the aircraft / engine
certification basis, we
need:
∗ Set of molecules /
chemicals that are
essentially identical to
those found in jet
∗ Don’t allow the overall
distribution of
molecules to move the
aggregate fuel
properties outside the
physical and fit-for-
purpose constraints of
D1655

3 May 2017 6
 SAJF conversion processes
…or, “dispelling the fear of revisiting Chemistry 101”

Start with hydrocarbon / organic building-blocks

Deconstruct & remove extraneous molecules
Process to workable intermediates
Reformulate to appropriate C8-C16 molecules
Utilize standard refinery “finishing” processes
D7566 - SAJF Blending Components
D1655 – from petroleum and D7566 fuel blends
3 May 2017 7
 SAJF conversion mechanisms
Challenge … doing it at the price of petroleum refining

Fossil HC Lipids Cellulose Sugars & Wastes & CH4 CO2

Plant & Animal & Hemi- & Lignin Starch Syngas
$ Gasify Pyrolize Torefy Saccharify Deconstruct Digest
$
?
Separate Ferment Dehydrate Catalyze Process
FT CH CC APR HL Oligomerize
Hydrotreat Hydroprocess Hydroisomerize Distill
FT-SPK, HEFA-SPK, HFS-SIP, FT-SPK/A, ATJ-SPK, …

3 May 2017 8
 SAJF blending component examples

HDCJ HFS-SIP CH

ATJ-SPK HEFA-SPK FT-SPK

FT-SPK HEFA-SPK HEFA-SPK

3 May 2017 9
 SAJF approved production pathways
Annexes to ASTM D7566: D1655 fuel following blending

 Syngas FT (FT-SPK) 50% max blend

 Hydroprocessed lipids (HEFA-SPK) 50% max blend
Approved

 Biochem sugars (HFS-SIP) 10% max blend

 Syngas FT w/ aromatic alkylation (FT-SPK/A) 50% max blend
 Isobutanol conversion (ATJ-SPK) 30% max blend

∗ Commercialization for each in development, in some cases by

multiple parties who would use licensing
∗ Entities may not achieve commercialization for several years
following approval

3 May 2017 10
 ASTM approval pipeline
Next 3 (‘17–’18 approvals) have implications for lipids

∗ Refinery Co-processing 5% max incoming blend

In- Process Task Forces

∗ Catalytic Hydrothermolysis 50%+ max blend

∗ HEFA+ (wider-cut HEFA with HDRD) modest max blend
∗ ATJ-SPK (expansion to C2-C5 alcohols)
∗ SK/SAK (CCS - APR)
∗ ATJ-SKA

∗ 15 additional processes
Low FRL

∗ 3 specifically applicable to lipids

3 May 2017 11
 Achieving cost competitiveness

High Lignocellulosic Conversion

∗ Gasification
∗ Pyrolysis
∗ Torrefaction
∗ Deconstruction miscellanea
OPEX  Conversion of C5/C6 sugars
∗ Catalytic
∗ Biologic
 Valorization of lignin
Economically
∗ HTL
Competitive
∗ Steam
Solution
∗ Chemical / Ionic
Low Space
∗ Biochemical
Low High
CAPEX

3 May 2017 12
 Achieving cost competitiveness

High Enabled by:

∗ R&D
∗ D&D Support
+ ++ ∗ Policy
++++
∗ Commercialization learning-
OPEX curve progression
∗ Build-out – Scale
∗ Competitive uses
Economically ∗ Valued co-products
Competitive ∗ …
Solution Enabling approaches
Low Space
informed by analytics
Low High
CAPEX

3 May 2017 13
 Cost-focus is only part of the need

∗ Techno-economic
assessments don’t
address total value
∗ Expectation that
viability will be
enabled via other
revenue and other
services

3 May 2017 14
 Commercialization in-development
Renewable Diesel & Jet
∗ Existing DPA Awardees
∗ Red Rock, Fulcrum
∗ Emerald
∗ AltAir Build out (3-5X) Greater than 1B
GPY capacity by
∗ Diamond Green expansion
2021 !?!
∗ SG Preston (5 facilities in first tranche)
… necessitates
∗ ARA licensing and build-out serious engagement
∗ UOP licensing for refinery retrofit with purpose grown
∗ Neste, REG, UPM, … potential pivots oilseed & FOG
development /
∗ Unlocking of renewable diesel and expansion
refinery co-processing

3 May 2017 15
 Commercialization intent - lipids
“Declared” nameplate capacities: significant opp’ty

Production
4,000 24 / 32
Acreage
If all addressed via oilseeds:
Gallons per Year (M)

3,500 Required
 1.5 to 2.0 M acre/yr (million acres)
3,000  1.75x more if refinery co- at 200 / 150 gal/acre
2,500 processing gets traction
Significantly more at
2,000 12 / 16 lower yields of some
oilseeds
1,500
1,000
500
0 0/0
Ignores 2.5B gpy
biodiesel production

3 May 2017 16
Lipid feedstocks
Potentially enabling of significant production …
∗ Multiple conversion Targeting most sustainable solutions:
processes Low, or Zero, impact LUC/ILUC & F-v-F solutions;
Environmental Services a plus.
∗ Multiple feedstock
developers
∗ Multiple producers
∗ Multiple low LUC/ILUC agri-
based feedstocks, plus:
∗ White Grease, Poultry Fat,
Tallow
∗ UCO / Yellow Grease
∗ Brown Grease, Biosolids
∗ Easier supply chain scale-up
leveraging biodiesel and
HDRD production capacity
∗ Lowered H2 cost &
availability (from NG) helps
3 May 2017 17
 SAJF offtake agreements
Beyond numerous demonstration programs
neat quantities
5 M gpy
from 2016
3 yr agreement
30/70 blend
3 yr agreement
Enabling LAX flts

375M usg
90-180 M gpy
Over 10 yrs
50 M gpy
Over 10 yrs
3 M gpy each
going into Bay
Area, CA

3 May 2017 18
 SAJF offtake agreements
Beyond numerous demonstration programs
neat quantities

48 A350 deliveries
10% blend
10M gpy, 10 yrs

Up to 40M gal
Over 5 yrs (MOU)
(Bioport on demand)

(Salvage MSW work?)

(HBE defunct, focus on

new engagement)

3 May 2017 19
 Summary of Potential

∗ SAJF technically viable – slowly being commercially developed

∗ Opportunities actually continuing to expand
∗ Challenge is achieving price-point equivalency to petro-jet, but
policy has been shown to close business cases
∗ Some producers remain bullish on their costs without policy
∗ Feedstock availability might be pacing for some pathway
families, but not envisioned to be an ultimate constraint
∗ Full range of activities ongoing to try to bring down cost,
reduce risk, incentivize production, develop feedstocks, …
∗ Oil price and policy mechanisms will be key determinants
∗ Industry still counting on execution of SAJF, commensurate
with progress on other pillars
3 May 2017 20
Steve Csonka
Executive Director, CAAFI
+1-513-800-7980
csonka.caafi.ed@gmail.com
steve.csonka@caafi.org
www.caafi.org
 SAJF Qualification Status
Vertimas?
Global
BioEnergies? POET? Collecting Tier 1 & 2 Data &
Currently In Review
Developing Reports
Process
Joule?
SBI
BioEnergies?
Shell / HDCJ ATJ-SKA Green Diesel Virent ATJ-SPK
GSR / GTI (Byogy, (HEFA Plus) SAK (Ethanol)
IH2 (Swedish
(LanzaTech)
Biofuels)

Collecting Tier 3 & 4 ARA

Data & Developing Virent SK CHJ
Reports

Annex A5
ATJ SPK
(Isobutanol)
Annex A4
FT-SKA
Approved
Fuels Annex A3
SIP
Annex A2
HEFA
Annex A1
Mark Rumizen FT-SPK
October 25, 2016