Our biorefineries will convert residues from forestry operations into renewable transportation fuels. Our process makes diesel and jet fuel through gasification and catalytic synthesis. The main chemical process is called the Fischer-Tropsch (FT) process. We have become experts over the many years of developing our smaller scale microchannel FT technology and we maintain a large intellectual property portfolio in the field. At ENVIA, we and our partners built the world’s first smaller scale commercial gas-to-liquids plant and we are now using our expertise to extend the process for the biomass-to-liquids market.
We make fuels from truly renewable resources. Fuels produced in this way yield net greenhouse gas reductions of at least 60% and burn cleaner than petroleum-derived diesel and jet fuels, resulting in lower emissions of particulates, sulphur oxides and nitrogen oxides and improving air quality. Use of high-purity FT diesel also reduces engine noise and wear of vital engine components.
Unlike some other renewable fuels, FT-derived fuels are fully compatible with current engines and fuelling infrastructure, and they can be blended at high percentages with conventional fuels.
Fuels made from eligible feedstocks and synthesised using the FT process are eligible for the highest level of Renewable Identification Number (RIN) credits in the US under the Renewable Fuel Standard (RFS). In the UK, Renewable Transport Fuel Certificates, RTFC, will apply to our renewable fuels. Other governments globally are working on similar fuel standards, expected to be implemented in the next few years.
There is an abundant supply of woody biomass in the United States from entirely sustainable sources that do not compete with food crops for land. We are energising the forestry industry that has been in decline from falling demand for newsprint and paper. We will be using those forest by-products that were once used for paper and pulp production and converting them into fuel. Infrastructure networks are already in place in many locations in the Southeastern United States. There are significant supplies of sustainable woody biomass in many diverse geographies around the world.
For details on the stages involved in the biomass-to-liquids process click here.
We build strategic alliances to augment our own capabilities and experience in order to deliver our vision. With our strategic partners, we have the resources, scale and capabilities required to deliver biorefineries on a repeatable basis. Our strategic alliances include:
ENVIA is a joint venture, of which Velocys is a member, which was set up to produce renewable fuels and chemicals from landfill gas and natural gas using gas-to-liquids. The plant is located adjacent to Waste Management’s East Oak landfill site. Finished products (renewable waxes, diesel and naphtha) are being produced and sales are being made to product offtakers. In October 2017 the plant reached an operational capacity of 200 barrels per day (read more).
Our team of experienced GTL operations managers, operators and engineers were deployed on site in Oklahoma City during the second half of 2016 to bring essential support to the ENVIA team during the commissioning, start-up, and early stage operations. The on-site team continues to advance through the pre-planned programme of ramping up production to target operational capacity.
The performance data that are available from the ENVIA plant (for example, methane selectivity, carbon monoxide conversion, activity index and liquid production) meet the performance expectations set using models based on laboratory and pilot studies. Targets for the conversion of syngas to FT products and the yield of liquid products were achieved within 12 hours of the first start-up of the FT modules.
The fuels produced at the plant are expected to qualify under the RFS and generate tradable credits in the form of RINs.
At the site we have successfully demonstrated that Velocys’ FT reactors and catalyst are performing in line with performance requirements at a commercial scale. The Velocys technology being used at ENVIA will be deployed in our biorefineries, significantly reducing technology risk at future plants.
In June 2017 the US Department of Agriculture (USDA) invited Velocys to submit a Phase II Application to obtain a loan guarantee for a commercial-scale renewable fuels plant. The loan guarantee could apply to up to $200 million of debt as part of the total installed cost of the project.
The USDA loan guarantee would significantly reduce the technology risk for the debt providers. Velocys has engaged a global leading project finance bank, Sumitomo Mitsui Banking Corporation (SMBC), as the lender of record and as its financial advisor.
We are now proceeding through the final phase of the loan guarantee process. Work is underway on Velocys’ integrated technology demonstration with its strategic gasification partner TRI, and the Front End Loading (FEL-2) study with IHI E&C is nearing completion.
Our first commercial scale biorefinery is being designed to produce approximately 19 million gallons per year (1,400 barrels per day) of renewable fuels from approximately 1,000 dry tons per day of woody biomass feedstock.
Velocys has the goal of completing all work packages required, concluding commercial negotiations such as feedstock supply and off-take agreements, securing project equity funding, and reaching final investment decision during the course of 2018.
Velocys recently announced the formation of a consortium including British Airways and Suez to address the opportunity for waste to jet fuel plants in the UK. Our approach to this market is highly complementary to our main focus of addressing the woody biomass to renewable fuels market in the US. Read more here.
Preparation of synthesis gas or “syngas”, a mixture of carbon monoxide and hydrogen, by the gasification of the solid feedstock.
The Fischer-Tropsch (FT) process converts the syngas into paraffinic hydrocarbons.
Upgrading (hydrocracking, isomerisation and fractionation) produces finished, premium products.
When woody biomass is to be used as feedstock for a biofuels plant, syngas generation is carried out using a gasifier.
Gasification is a process that converts carbon-containing materials into carbon monoxide and hydrogen. This is achieved by reacting the material at high temperatures (>700 °C), but without combustion – using a controlled amount of oxygen and/or steam.
Conventional FT plants are only economically viable when they produce 30,000 barrels per day (bpd) or more. Velocys’ microchannel FT technology is commercially optimal at capacities of as low as 1,400 bpd (around 19 million gallons per year), making it an ideal choice for biorefineries using low density woody feedstock that would be uneconomic to transport over long distances to a large scale central processing facility.
Our technology combines the best aspects of conventional fixed bed and slurry bed FT reactors. The FT process is highly exothermic, or heat generating. Mass and heat transfer limitations reduce the efficiency of conventional FT reactors. In Velocys’ microchannel FT reactors, thousands of process channels with dimensions in the millimetre range and filled with catalyst are constructed immediately adjacent to water-filled coolant channels. The small-size channels dissipate heat more quickly than in conventional FT reactors. As a result, more active catalysts can be used.
Velocys’ FT technology is specifically designed to work at a small scale; but it is not a scaled down version of conventional large-scale technology. We have reinvented the reactors and catalysts, increasing the productivity per unit volume of reactor, delivering superior performance and better plant economics.
The raw FT products are upgraded (by light hydro-cracking, isomerisation and fractionation) to produce a range of possible hydrocarbon products including diesel, jet fuel, naphtha and waxes. Generally, these products are of higher quality (and command a higher price) than those derived by conventional means because they generate very low levels of emissions when combusted (particularly sulphur-containing compounds, particulates and aromatics).
Velocys works with the proven upgrading technology to enable a complete biorefinery solution.