Post on 24-Jan-2017
THE VERDIS ALTERNATIVE CONVERT WASTED GAS INTO ULTRA-LOW SULFUR DIESEL
Our GTL conversion units provide profitable alternative to gas-flaring | Operators can reduce
carbon footprint & generate significant cash-flows from valuable commodity | Produce Diesel,
naphtha, aviation fuel
CAPITAL REQUIREMENTS
$5-10 million to get first units manufactured and fielded with companies already strongly
interested | If closer to $10 million: could start parallel work on larger units | Projected
revenues: +$40 million revenue, EBITA +$35 million, within 5 years.
EXECUTIVE SUMMARY
GLOBAL GAS FLARING A MASSIVE CHALLENGE
Oil and Gas operators annually flare or vent $30 billion of natural gas | Precious energy
wasted | 400 million tons of damaging CO2 emitted
OUR PATENTED CATALYST A DISTINCTIVE COMPETITIVE ADVANTAGE
Our Fischer-Tropsch process and cobalt-ruthenium catalyst boost diesel yield from 50 to 94% |
By-products: usable water, co-generated electricity | Customer breakeven point – 3 year
average based on wholesale value of diesel and water produced | Environmental benefits add
further value
Every day Oil & Gas operators flare and vent natural gas
Emitted GHGs: environmental damage & economic impact
THE FACTS: Flaring of Associated Gas. . .
• Releases 400M tonnes of Carbon Dioxide (CO2)
• Wastes $30.6B of natural gas (Methane, CH4) - 8% world supply
• Disproportionately impacts world’s most delicate areas – 42% of Arctic
black carbon comes from global gas flaring
Imagine if we could reduce those
emissions…and monetize that “waste”!
GAS FLARING A MASSIVE CHALLENGE
STOP FLARING. MONETIZE YOUR WASTE!
WHY DO COMPANIES STILL FLARE?
VERDIS SYNTHETIC FUELS
GAS-TO-LIQUIDS MOBILE PROCESSING UNITS
CONVERT NATURAL GAS TO
MARKET-READY ULTRA-CLEAN DIESEL
This is the VERDIS poster From the ADIPEC 2012 Oil & Gas Show in Abu Dhabi, UAE
They lack a profitable, practical, alternative . . .
. . . So VERDIS is going to give them one!
PRIORITY 1 - GAS FLARING
Current solutions target only extremely large gas deposits…
… leaving $20B+ market for S/M sized flares unexploited
VERDIS will provide Oil & Gas producers a profitable way to:
• Optimize value chains as profit driver
• Reduce emissions, lighten environmental foot print
• Promote corporate image/CSR
• Comply with emissions reduction targets
PRIORITY 2 - STRANDED GAS RESERVOIRS / REMOTE
LOCATIONS
• Large reserves remain unexploited for economic or technical reasons
• VERDIS units can do it, on land, offshore platforms, boats & barges
PRIORITY 3 – AUTHORITIES RESPONSIBLE FOR ENERGY
SECURITY
• A less expensive fast-track to domestic diesel production (Israel,
Leviathan field)
• To provide fuel, water & electricity to isolated communities with gas
supplies (Arctic region: City of Inuvik; desert communities)
UNTAPPED MARKETS
REGULATORY TRENDS
Agreed UNFCCC Global Objective: “stabilization of atmospheric GHG concentrations at a
level that would prevent dangerous anthropogenic interference with the climate system”
(limiting temperature rise to 2 C)
Pre-Summit Reduction Commitments:
• EU & Norway: binding target - at least 40% below 1990 level by 2030 (Key focus on Oil and
natural gas and other emissions from energy production)
• US: 26-28% below 2005 level by 2025 (EPA to set standards on methane emissions from landfills, oil and
gas sector)
• Russia: reduction of 25-30% from 1990 levels by 2030
• Canada: “intend to reduce” to 30% below 2005 levels by 2030
• China: 60-65% reduction per unit of GDP by 2030, after emissions peak
• India: yet to commit
VERDIS Synthetic Fuels, FZE
• VERDIS Synthetic Fuels was founded in Sharjah, UAE,
in 2010
• Subsidiary of Calgary-based Canada Chemical
Corporation (CCC)
• Dedicated to commercializing CCC’s
groundbreaking Gas to Diesel (GTL) technology
Canada Chemical Corporation
• Long track record of oil & gas sector innovation,
R&D excellence
• Within GTL, decided to target market-ready diesel
• It’s R&D staff, led by noted scientist Dr. Conrad
Ayasse, began work on GTD in the late 1990s
• Filed the first set of patents
VERDIS FUELS & IT’S TECHNOLOGY
WHO ARE WE?
VERDIS STRATEGIC PARTNERS
RESEARCH & DEVELOPMENT
Canada Chemical Corporation
Calgary, Canada (www.canchem.ca)
• Technology’s inventor, 20 years GTL experience
• VERDIS’ parent company, provides all technical support
• 2 Lab test rigs fully assembled and running
• Optimizing syngas reformer solutions
PROCESS ENGINEERING & UNIT MANUFACTURE
Suez Environmental Oil & Gas Systems
Melbourne Australia/Abu Dhabi, UAE (www.processgroupintl.com)
• Process engineering & manufacturing partner
• Expertise in skid-mountable “packaged plants”
• Collaborated with VERDIS on 0.25MMSCFD design
INNOVATION FINANCE
Innovation Norway
Tromsø, Norway (www.innovasjonnorge.no)
• Innovation grant funding for V-CPOX
• Ready to co-support further development opportunities
VERDIS Fischer-Tropsch process based on proprietary cobalt-rhenium
catalyst: boosted diesel output from 45-50% to 94%
(2n + 1) H2 + n CO → CnH(2n+2) + n H2O
METHANE DIESEL + WATER
FT CATALYTIC REACTION
PARAFFINIC SYNTHETIC DIESEL
0% Sulfur0% Aromatics
+
COMPETITIVE ADVANTAGE PROPRIETARY CATALYST
• Vehicle ready diesel
directly from FT
reactor
• No further refining
necessary
• Very high Cetane
number (78, versus
normal spec of 43)
• Zero sulfur or
aromatics content –
much cleaner
emissions
• Ideal blending stock
• Only process on the market converting gas directly
to ultra-clean diesel at low-pressure, directly from
the FT reactor, so no hydro-cracking or further
refining
• Significant CAPEX/OPEX savings (US DoE estimate: up
to 30%)
• By-products: industrial-use water (1.1:1 water to
diesel), possibility of surplus electricity
• Units could provide surplus electricity after startup –
virtually 0 waste (excellent for desert, arctic and
offshore use)
VERDIS PROCESS ADVANTAGES
“The uniqueness and novelty lies in the . . . catalyst design and operation to realize the optimal, economic small-scale GTL process for production of a liquid fuel product containing high diesel and low wax yields. This is the type of process design for which the syngas conversion community has been searching. . .”
- Leading GTL Expert Prof. Calvin H. Bartholomew, Brigham Young University
1998 THROUGH 2008
• Extensive R&D, bench-scale proof of concept
• Deep expertise in traditional syngas creation
• Worked on proprietary FT catalyst
• 2006: deployed a 25 MSCFD prototype on landfill in
Oklahoma City (actual photos on right)
• Prototype decommissioned in 2008
2008 THROUGH 2015
• Data from protoype: updated patents 2009
• VERDIS founded 2010
• 2012: Partnered with Process Group International
(www.processgroupintl.com) to design 0.25 MMSCFD
mobile unit
• Result: autothermal & steam reforming technically viable,
BUT temps too high, efficiency too low, for real customer
value
• 2012-2014: search for optimal syngas solutions, further
refined FT catalyst
• 2 emerging technologies: plasma & CPOX
• Funding from Innovation Norway (office in Tromsø)
25 MSCF/day Prototype
Prototype Deployment
VERDIS FUELS & IT’S TECHNOLOGY
GTD TECHNOLOGY DEVELOPMENT BY CCC & VERDIS
PLASMA-BASED SYNGAS REFORMER VALIDATION: JULY 2014 CERAMATEC TEST
TEST OBJECTIVES
Validate VERDIS catalyst combined with Ceramatec’s unique plasma-based syngas reformer in
a ¼ BBD GTL unit
TEST RESULTS
Exceeded all
expectations – best
Ceramatec has seen:
• 90% Diesel
(industry standard
45-55%)
• Only trace
amounts of wax
(0.08%)
• Predicted that
VERDIS 0.25
MSCFD unit would
achieve 10,000:1
conversion ratio,
beating even
Shell’s world-scale
‘Pearl’
VERDIS FUELS & IT’S TECHNOLOGY
• Plants smaller than Shell and Sasol,
but still not mobile
• September 2013: selected by Pinto to
field 2800 BBD plant in Ohio, USA
• Pant will produce mix of waxes,
solvents and lubricants
• Outputs to make ultraclean
transportation fuels will need further
refining
• 2006: PETROBRAS partnership
• 2012: completed demonstration plant,
processes 200,000 SCF/day of gas into
around 20BBD
• According to World Bank Global-Gas Flaring
Reduction Partnership: they produce around
20BBD of crude oil with a heavy wax
content which must be further refined
through hydro-cracking.
• A few majors active in large-scale GTL (Shell, Sasol).
• Very few looking at smaller-scale, mobile solutions. VERDIS’ prime target.
• Competitive advantage: unlike competitors, VERDIS product market-ready, no further
refining needed
• Offers more efficiency, flexibility, adaptability, so lower CAPEX and OPEX
COMPETITIVE ADVANTAGE: VERDIS
VERDIS Mobile VERDIS Fixed VERDIS SPP
(4 MMSCFD)
400 US BBD (63,600 L)
Transported in several
trucks, fixed location
Medium-scale gas-flaring
or mid-sized stranded gas
deposits
(25+ MMSCFD)
2500 US BBD (397,500 L)
Small Petrochemical Plant
Large scale gas-flaring
sites, or to develop whole
stranded gas fields
(1 MMSCFD)
100 BBD (15,900 L)
Fully mobile, moved on 3
standard trucks &
assembled in place
Small-scale gas flaring or
stranded gas deposits
PRODUCT ROADMAP
Synthetic Diesel (ULSD) is so clean
you can actually SEE the difference!
CUSTOMER VALUE PROPOSITION
Based on a gas to diesel conversion ratio of the smallest unit(10,000:1), for straight methane. Associated gas, with its mix ofhigher combustibles (ethane, propane) can yield up to 40% morediesel pr unit of gas converted.
• Customer BEP for single VERDIS mobile unit in a cross-section of markets based
exclusively on the wholesale value of diesel and water it will produce
• Breakeven point in most markets: 3 years
• Indirect or intangible benefits
could include:
o Tax breaks or carbon
credits
o PR benefits from
reduced flaring &
carbon emissions
o Meet corporate goals,
national laws or global
conventions
o Excess electricity
produced which may
be sold back to the
grid
• Ancillary benefits may
be as valuable as direct
economic benefits
-4
-2
0
2
4
6
8
10
12
Israel Australia China Canada Nigeria Russia UK Mexico USA UAE Qatar
BREAKEVEN YEARS - SELECTED MARKETSFlared Gas vs. Henry Hub FMV
Breakeven YR - AG Breakeven YR - FMV
Aker Solutions
Tromso, Norway
• Flaring on Norwegian Continental Shelf illegal – re-injection the norm
• New northern blocks have insufficient reservoir depth to re-inject
• Aker seeking novel solution for ~4 MMSCFD of AG on 2 new platforms
• Proposed 5 plasma-based reformers (of 1 MMSCFD each) & VERDIS FT catalyst
• Aker team vetted proposal
• September 2014: fully endorsed VERDIS technology as optimum offshore solution,
recommended it for both platforms
• Both projects on hold given current oil price
VERDIS FUELS & IT’S TECHNOLOGY
CURRENT FOCUS & CUSTOMER ENGAGEMENTS – 4 MMSCFD OFFSHORE OIL PLATFORMS
1. Small footprint
2. Low weight
3. Low pressure
4. High GHSV so that the reactor can be small
and light
5. Low pressure drop at high GHSV
6. High gas conversion (>95%)
7. High selectivity to CO (>95%)
8. No water needed
9. No pure oxygen needed
10. No feed gas pre-heat needed
11. No tail gas heat exchanger needed
12. Feasibility for some FT tail gas re-cycling
IDEAL SYNGAS PLANT FOR OFFSHORE PLATFORMS
20 Verdis Synfuels CONFIDENTIAL INFORMATION
V-CPOX
Reactor
Syngas
Water: flash
to atm.
Air
cooler
Syngas
Water
FT
Plate
Reactor
Gas
Oil
Water
Air
Cooler
to 50 C
Separator
Fuel
gas
Oil
Water
Dowtherm J
Naphtha
BP
R
Pipeline
125 C
Diesel
Quench water
Separator740 C
Separator
VERDIS SYNFUELS OFFSHORE GTL PROCESS SCHEMATIC
OBJECTIVES ACHIEVED: much lighter, smaller footprint, lower temp & pressures,
50% fewer unit operations – fully optimized offshore solution
Air and
Associated Gas
blower
(1-3 bar)
50 C
210 C
Compress
to 13 bar Pre-
heat
Re-
cycle+FG Chiller
to 4 C
To
Quench
Catalytic
hydrogenation
Platform
use
Gas
No wax, no olefins,
No alcohols
21
10MMSCFD OFFSHORE PLANT (SOUTH-EAST ASIAN FIELD)
COST: $70 Million
Breakeven Point: 13 months
Accumulated Profit & Loss (10 yrs): $576,069,470
Net Present Value (5% discount rate): $408,454,971
Internal Rate of Return: 92.2%
COST: $100 Million
Breakeven Point: 19 months
Accumulated Profit & Loss (10 yrs): $546,069,470
Net Present Value (5% discount rate): $379,883,542
Internal Rate of Return: 64.2%
125MMSCFD OFFSHORE PLANT (FPSO-Mounted)
COST: $875 Million
Breakeven Point: 15 months
Accumulated Profit & Loss (10 yrs): $5,968,956,250
Net Present Value (5% discount rate): $4,199,734,860
Internal Rate of Return: 78%
COST: $1.25 Billion
Breakeven Point: 22 months
Accumulated Profit & Loss (10 yrs): $5,593,956,250
Net Present Value (5% discount rate): $3,842,592,003
Internal Rate of Return: 54%
INUVIK’S ENERGY CHALLENGE
Geography
• Small, relatively isolated community
• Challenging winter road conditions, so supply chain
vulnerability
Infrastructure
• 2 power plants: one natural gas, one diesel (backup)
• Local Ikhil well depleted in 2012
• Forced reliance on diesel doubling energy bills
• LNG fuel now trucked on Dempster Highway from BC
at considerable expense
• January 2014: first LNG plant opened
• Landed diesel cost: $0.97, Retail: $1.55 (May 2015)
INUVIK’S ENERGY CHALLENGE
Key Success Factors
• Guaranteed supply of reasonably-priced feed gas
• Balancing volume required by gas supplier with Inuvik’s energy needs
• Buy-in from Inuvik’s residents
• Support from municipal, territorial and federal governments
Possible Functions and Stakeholders
VERDIS Fuels (with technical partners)
• GTL plant design and manufacture (with Suez Environmental as EPC partner)
• Winterization of GTL plant (expertise from Aker Solutions office in Tromsø, Norway)
• Overall project management and key stakeholder engagement
Possible Sources of Co-Funding
• Town of Inuvik
• Northwest Territories Power Corporation?
• Government of NWT?
• Federal government (NRCAN, Environment Canada, DIAND)?
• Canadian Polar Commission?
• Innovation Norway (has already shown interest)
• Norwegian Research Council’s Demo2000 program
INUVIK’S ENERGY CHALLENGE
Benefits of a 500 VERDIS GTL Plant
• Local production of 79,500 liters of Ultra-Low Sulfur
Diesel, naphtha, or aviation fuel per day, 28 million per
year
• Virtually 0 emissions
• Expensive LNG transportation costs saved
• 31 milion liters of water produced
• VERDIS to train pool of local technicians in daily unit
operations
Effects of Deployed GTL Plant
• Risk of supply disruption (weather, bad roads) reduced
• Fuel costs reduced
• Energy security of local population enhanced
• Local capacity-building in technical skills
Layout of a 500BBD Plant
Footprint: 15m L x 7m w x 11m h
How many fully-loaded Class 8 Semis
could one 500 bbl/d plant Fuel?
• @ 42 USG/bbl, 500 bbl/d = 21,000 USG/d
or 7,665,000 USG/y
• Assume 80,000 miles/y @ 10 USG/mile =
8000 USG/y Diesel per Semi
• Number of Semi’s that can operate with
Diesel from one Verdis Plant:
• 7,665,000 USG/y/plant ÷ 8000 USG/y per
Semi = 960 Semi’s/Verdis plant
1MMSCFD PLANT FOR INUVIK
COST: $50 Million
Breakeven Point: 38 months
Accumulated Profit & Loss (15 yrs): $229,171,875
Net Present Value (5% discount rate): $152,838,098
Internal Rate of Return: 40.3%
BREAKEVEN ANALYSIS FOR GTL IN INUVIK - $50 million
YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15
EXPENSES
Purchase Cost 50,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
OPEX (incl.
annual maintenace, catalyst replacement, gas at $15 per MMSCF)
7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000
Total Expenses 50,000,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000
REVENUES
Ultra Low Sulfur Diesel ($1.25,
10,000:1 conversion ratio, 355 days of production)
35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125 35,278,125
Total Revenues 0 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125 27,778,125
Accumulated P&L 0 15,278,125 30,556,250 45,834,375 61,112,500 76,390,625 91,668,750 106,946,875 122,225,000 137,503,125 152,781,250 168,059,375 183,337,500 198,615,625 213,893,750 229,171,875
Simplified NCF - Yearly -50,000,000 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125 20,278,125
Accumulated Simplified NCF -50,000,000 -29,721,875 -9,443,750 10,834,375 31,112,500 51,390,625 71,668,750 91,946,875 112,225,000 132,503,125 152,781,250 173,059,375 193,337,500 213,615,625 233,893,750 254,171,875
Discounted Rate 5.0%
NPV 152,838,098
IRR 40.3%
Breakeven Point (months) 38
#1 RUSSIA
Gas Flared: 37.4 BCM
Gas Value: B$ 13.4
#2 NIGERIA
Gas flared: 14.6 BCM
Gas Value: B$ 5.2
#3 IRAQ
Gas Flared: 9.4 BCM
Gas Value: B$ 3.36
#5 UNITED STATES
Gas flared: 7.1 BCM
Gas Value: B$ 2.6
CURRENT PATENT RIGHTS
25 countries & European Patent Office
19 out of the 20 top flaring countries
~85% of the worldwide estimated flared volume, worth $26 Billion
EXPANSION PLANS FOR A GROWING MARKET
BUSINESS MODEL TRANSFORMING GAS TO DIESEL
PRINCIPAL REVENUE STREAMS
• Design & sale of GTL units, technology
licensing
• After sales support (spare parts,
maintenance, training, catalyst replacement -
~15% value of annual diesel yield)
• Long-term: fleet of equipment for lease
SECONDARY REVENUE STREAMS
• Remote, diagnostic, monitoring of deployed
conversion units
• Sale of surplus electricity produced during
the FT process
• Training of local technicians
• Consultancy fees
Offshore Gas Flare, Alaska
GO TO MARKET STRATEGY
Phase 1 – Post Launch
• Companies who have already expressed serious
interest (Pemex, EcoPetrol, Aker, CieQual)
• This will be enough demand as VERDIS ramps up
production
Phase 2 – First Units Deployed
• Leverage initial unit deployments as demonstration
• Specialist industry events (ADIPEC 2015)
• Environmental conferences
• Target companies in the World Bank’s Global Gas-
Flaring Reduction Partnership (GGFR)
Phase 3 – Building Stable Demand
• Word of mouth, industry publications
• Retention through excellence in value creation
25K SCF/day prototype , Oklahoma, USA
CUSTOMER ACQUISITION: CHANNELS & PHASING
ONGOING PRODUCT DEVELOPMENT
• Extremely encouraging results from prototype’s deployment in the US
• Feedback from customers and investors: love concept, need commercial-
sized demonstrator
• Benefits
o Demonstrate process to investors & customers
o Give VERDIS first sale
o Use as template for larger units
NEED FOR A TECHNOLOGY DEMONSTRATOR
CAPITAL REQUIREMENTS
WHAT IS OUR REQUIREMENT?
USD5-10 million investment in
exchange for 15-25% of VERDIS
WHAT WILL CAPITAL BE USED FOR?
Final design optimization
Manufacture, delivery and line-in
of first full-sized commercial
unit
More capital: parallel
development of larger units
Time To Market
13 to 18 months to have first
unit fielded
Demonstrator to drive sales
• VERDIS anticipates ~$40 million in
revenues, generating $35 million
EBITA, in 5 years
• Despite significant working capital
required for the first 5 development
phases, from years 1 to 7, VERDIS
expects an Internal Rate of Return
of 114%
• This will generate Discounted Cash
Flows (DCF) of 73 million USD from
year 2 to 7
• Based on 10 times EBITA, company
would have an estimated value of
~290.0 million USD by year 7
YEAR ON YEAR SALES PROJECTIONS
FINANCIAL OUTLOOK
39,264
47,510
18,112
23,864
29,280
35,429
-5,000
5,000
15,000
25,000
35,000
45,000
Y Y+1 Y+2 Y+3 Y+4 Y+5 Y+6
IN K$
NET REVENUES DCF EBITA
Y Y+1 Y+2 Y+3 Y+4 Y+5 Y+6
NET REVENUES 0.0 1,500.0 5,442.6 29,252.2 39,264.1 43,190.5 47,509.6
EBITA -3,710.0 -85.0 2,146.3 21,559.7 29,280.1 32,208.1 35,428.9
DCF -3,669.38 -128.57 1,948.36 14,146.39 18,111.52 19,445.56 23,864.29
Y+2 Y+3 Y+4 Y+5 Y+6
K 250 12 14 16+10% +10%
M 2.5 0 2 2
BENEFITS OF VERDIS COMMERCIALIZATION
• ENVIRONMENTAL Oil and gas operators get profitable alternative to gas
flaring/venting, helps reduce 400 million tons of damaging CO2 this releases annually
• ENERGY EFFICIENCY Flaring/venting gas wastes ~3 trillion SCF (150 billion cubic
meters) of natural gas annually, worth over $30 billion.
• ENERGY SECURITY Countries with natural gas supplies but limited oil/conventional
diesel refining, could get a cost-effective fast-track to domestic diesel production,
reducing their reliance on foreign imports
• COMMERCIAL Mobile units (~250,000 SCF/day) could monetize gas deposits
uneconomical through conventional means with truck-mounted units. Large-scale
fixed facilities (25 million SCF/day+) could be built to produce diesel for market,
blending stock or diluent use
• HIGH-TECH EMPLOYMENT 5-10 engineering and lab tech jobs created in the VERDIS
R&D centre, 2-3 teams of 5 engineering techs needed to line-in, service & maintain
deployed GTD conversion units
FURTHER DUE DILIGENCE
To support your further consideration of the VERDIS opportunity,
we can provide . . .
TECHNICAL INFORMATION
• The Catalyst patent
• Independent 3rd
party technology review by leading GTL expert Prof. Calvin Bartholomew
• World Bank report “Associated Gas Utilization Through Mini GTL,” (April 2012) which reviews
VERDIS
• Technology FAQs
COMMERCIAL INFORMATION
• Business Plan Executive Summary (4 pages)
• Full Business Plan (120 pages)
• List and status of all patent filings
• Full 8 year financial projections and revenue modelling
• Schedule and budget for post-investment commercialization
• Customer Value Creation assessment in 10 selected VERDIS markets
• Plan for rollout of commercial and technical personnel
• Plan for development of VERDIS as a corporate entity ready to sustain large-scale growth
Rob AYASSE, MBACEO
Agata MATABUENA, MBA
Operations & Logistics
Renaud CLAUSSE, MBAFinance
Alan AYASSE, P.ENG
Engineering
Jorge GOMEZ, MBAStrategy & IT
Dr. Conrad AYASSEChief Scientist
We have gathered an experienced international management
team, and combined it with top-notch technical experts and scientists
VERDIS AMERICAS
R&D Lab | Canada
VERDIS EMEA
HQ in Sharjah | United Arab Emirates
VERDIS APAC
Finance | China
TEAM VERDIS
WHAT IS FREE ASSOCIATED PETROLEUM GAS?
Petroleum
(Complex mixture of liquid
hydrocarbons)
Free associated
petroleum gas
(Mixed gaseous hydrocarbons
mainly Methane, CH4)
Drilling rig
Anticline
Impervious rock
Gas flare stack
WHY IS GAS
FLARED?
• When crude oil
extracted from onshore
or offshore oil wells,
raw natural gas
produced as well
• When pipelines and
other transportation
infrastructure are
lacking, vast amounts
of such gas is deemed
unusable and is flared
or vented
• Flaring may occur at
top of a vertical flare
stack (as shown) or at
ground-level in an
earthen pit
Feed gas
heater
Reformer
CoolerAir
cooler
Water
Knock-
out
Feed gas
heater
FT
reactor
Compressed Air
Compressed HC
gas Steam
100-200 psia
800 C 50 CCO+2 H2
Dry
Syngas
Steam
200-215 C
Heat
removalGlycol
cooler
Gas
Oil
Water
Flare or
combustor
Tail gas recycle (2x
raw feed)
Separator
4 C
VERDIS PROCESS SCHEMATIC
• Higher combustibles (ethane,
propane, etc.) improve diesel
production
• Inerts have no effect
• H2S degrades catalyst
performance and must be
removed, to a level >1 PPM
• This requires a standard gas
scrubber (SulfaTreat or zinc
oxide possible)
• OR: Canada Chemical
Corporation has a proprietary
Batch Oxidation technology
to convert H2S to elemental
sulfur
VERDIS PROCESS STEP 1 – INPUT GAS SCRUBBING
• A small amount of
hydrocarbon raw gas is
burned in the reformer
• This is used to pre-
heat the entire train.
• As delivered, the
Fischer-Tropsch
catalyst contains
cobalt oxide (the
metallic form is
pyrophoric when
exposed to air and
would be dangerous to
handle).
• To activate the catalyst
for FT syngas
conversion: catalyst
reduced to metallic
cobalt inside FT
reactor using
hydrogen
VERDIS PROCESS STEP 2 – GTD UNIT STARTUP
25K SCF/day Prototype
25K SCF/day Prototype
• Feed gas moves into a highly-advanced plasma-based
Syngas Reformer
• Required temperature and pressure (50PSI) is
achieved
• Gas fully prepared for conversion in next stage:
H2:CO ratio sought 2.0
• (Includes compressor, coolers, water knockout,
piping to storage)
VERDIS PROCESS STEP 3 – SYNGAS PRODUCTION
25K SCF/day Prototype
• FT Reactor tubes have optimized fin
shape to dissipate heat, enhance
reaction efficiency
VERDIS PROCESS STEP 4 – DIESEL PRODUCTION
25K SCF/day Prototype
• High capacity Fischer-Tropsch
reactor comprised of 4 inch catalyst
tubes
• Pressure <200PSI, cobalt catalyst
crystallite size 16NM
• Syngas converted into diesel, water,
naptha, tail gasses
• (Includes FT reactor, Dowtherm ®
coolant condenser, coolant
circulation equipment, synthesis gas
recycle loop)
Close-Up: FT Reactor with tail-
gas recycle
• FT Reactor products are separated and captured in one
‘cold trap’ and one ‘hot trap’
• They are then directed to different storage tanks on site,
waiting tanker trucks, or possibly pipelines, for further
distribution to end-users
• The process continues once started and 350 days of
uptime per year is anticipated
VERDIS PROCESS STEP 5 – PRODUCT COLLECTION
10-25 BBD Layout – Footprint: 15m L x 7m w x
11m h
Can be Scaled Up to 100BBD by Adding More
Vertical FT Reactors in the Available Space
CARBON CAPTURE AND STORAGE (CCS)
THE PRIMARY ALTERNATIVE TO
GAS-FLARING
CC&S poses significant challenges
• Infrastructure Coal beds,
saline aquifers or appropriate oil
deposits must be close by and
available
• Expense Preparation of sites,
such as aquifers, can be costly,
as can the other piping and
process infrastructure to collect,
pump and inject CO2
• Output Reinjected CO2 can
boost yields and save some
modest costs, but CO2 injected
in aquifers incurs costs while
providing no revenue (unless
carbon credits are earned, or
carbon taxes avoided)
GAS TO LIQUIDS: UNIQUELY PLACED TO SAVE EMISSIONS
WHILE BOOSTING CASHFLOWS