Roll out of smaller scale GTLtechnology at ENVIA Energy’s plantin Oklahoma City, USA

Neville HargreavesGastech, April 2017, Tokyo

Chemical conversion of gas to refined products

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Gas-to-liquids (GTL) and biomass-to-liquids (BTL) process

Reforming Fischer-Tropsch (FT)

Stranded naturalgas, landfill gas,associated gas

Syngascarbon

monoxide+ hydrogen

Raw products

Premium fuelsand speciality

products (diesel,jet fuel, waxes)

Hydro-processing

Biomass, wasteGasification

Products arerenewable

if using landfill gas orbiomass as feedstock

• Commercial centre in Houston, Texas; technicalcentres near Columbus, Ohio and Oxford, UK

• Fischer-Tropsch technology:— Demonstrated via 26,000 hours at pilot/

demonstration scale and 1.3 million hourslaboratory testing

— Commercial reactors and catalystmanufactured

— First product at commercial reference plant• IP: exhaustive and proven patent protection,

successfully defended• World class operational team experienced in

commissioning and starting-up GTL plants• Building an integrated GTL and BTL solution,

fully designed, financed and operations-ready

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Introduction to VelocysA leader in smaller scale GTL and BTL

ENVIA Energy GTL plant

Manufacture of Fischer-Tropschreactors

Large-scale economics at smaller scales

Velocys Fischer-Tropsch reactor

Conventional Fischer-Tropsch reactor

Note: Reactor capacities differ considerably

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Enables distributed production

• Only suitable for world-scale gas reserves

• Suitable for wide range of resourcesincluding woody biomass and landfill gasat smaller scales

Preparations for commercialisationVelocys pilot plant

1,500+ hours of successful operations at commercialconditions

Velocys pilot plant

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• Successful piloting ofcommercially-producedcatalysts

• Continuous improvement inrelative capacity withoutchanging our technology basis— Catalyst formulation and

reactor design remainunchanged

• Process intensificationresults in significant capitalcost improvement

• Now successfully optimised

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Pilot plant results over the 18 months to Nov 2015Process intensification

Pilot plant runR

elat

ive

capa

city

For example, start-up times reduced significantly

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Operating protocols refined in advance of firstcommercial plant, further improving plant economics

1,000 hours testing demonstrated technology’s ability to perform during upset conditions

• Operating window testing over alarge span of operating conditions— Enables accurate evaluation

of potential future FT projectswithout the need for pilot planttests

• VPP placed in standby mode inApril 2016

• Freeing up skilled operatorsand engineers for start-up teamat ENVIA

• VPP FT skids will now be movedto TRI’s facility in North Carolinafor integrated FT/gasificationdemonstration

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VPP operational optimisation projectOptimum performance over a wide range of feed conditions

Other operating parameters alsovaried

ENVIA Energy’s GTL plantStatus

First Fischer-Tropsch product at ENVIA, Oklahoma City

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A high-performing professional collaboration

Highly experienced and motivated commissioningand start-up team

David Pummell with the ENVIA Plant Manager andsenior Velocys staff on site

A wealth of experience from the development of ourtechnology

A team of experienced people from our pilot plant anddemonstration sites

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Velocys Fischer-Tropsch reactors in situENVIA Energy

• Delivered a safe and successful start-up ofthe Fischer-Tropsch (FT) modules andupstream units

• First FT product successfully produced

• Performance data aligns closely toVelocys pilot plant and modelling data

• Products: wax, diesel & naphtha

• Fuels eligible for tradeable RenewableIdentification Number (RIN) credits

• Landmark event for Velocys’ technologyand its commercial reference plant

• The operations team is now focusing onramping up production to full capacity

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ENVIA Energy Oklahoma City projectStatus

Cost-effective, integrated route tohigh-value products

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Repeatable proposition for multiple plants

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Velocys integrates the solution

Project development• Overall management• Site, permits, environment• Contracts• Finance

EPC firm• Single-point responsibility for

construction• Provides “wrap” for technologies

used, supporting financing

Feedstock• Biomass owner and/or trader

Offtake• Airline• Fuel supplier / trader• Refiner

Technology / plant design• Velocys coordinates and integrates

technology providers and engineering

Operations / maintenance• Velocys provides start-up and

management – contracts operation

Financing• Strategic investors• Private equity• Debt (incl government-backed)• Insurance

FT Upgrading

Technical solution

Gasifier(TRI)

Modular fabricator (Morimatsu)

In progress

Partnerships under MOU

Velocys

Velocys lead

• FT route to jet fuel and diesel from biomasscan reduce lifecycle greenhouse gasemissions by ~70%

• Meets industry specifications— Jet: ASTM D7566 approved at up to

50% in blend with conventionalkerosene

— EN 15940 for synthetic diesel

• Reduces air pollution— Jet <0.5% aromatics, <15ppm sulfur— Substantial emissions improvements

• Local supply chain benefits stakeholdersand reduces fuel transport

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FT fuel delivers environmental benefitsChemically similar to conventional jet and diesel, with advantages

Conventional diesel (right) vs FT diesel (left)

• Fischer-Tropsch process now economic at smaller scales— Consistent with biomass supply chain constraints— Consistent with shortfall of wax supply in North America

• GTL will play an increasing role alongside gas pipelines & LNGas a way of getting gas to market

• BTL is one of the few scalable routes to cellulosic biofuels with>60% greenhouse gas reductions & fully compatible with engines

• First product produced at commercial reference plant forVelocys’ technology

• Velocys commercial technology is the foundation of an integratedoffer with partners to create a material supply of products

Smaller scale GTL and BTL is now a reality

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Summary

Neville HargreavesBusiness Development Directorneville.hargreaves@velocys.com

UK office+44 (0)1235 841700

www.velocys.com

Gastech stand 13-345

"Velocys“ and the Velocys logo are trademarks of Velocys 19

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