Renewable Biogenic Fuel
Fuel from Fats, Oils, & Greases
Renewable Diesel = True Hydrocarbon
• Feedstock utilized is animal fats, oils, greases.
• Thermally cracked/distilled, yields clean fuel.
• Molecularly identical to petroleum diesel,
but without the odor and 86% less emissions.
• The only process byproduct is H2O – Water.
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Biogenic Feedstocks
• Uses existing thermal fluidic catalyst cracking
USA patented technology.
• Biological feedstocks from existing sources.
• 200 existing animal processing plants in USA.
• 100% of each animal processed is utilized.
• FOG (fats, oils, greases) are the feedstocks.
• FOG is a market traded commodity.
• Net annual FOG production =10 billion lbs.
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Congress/Presidential Support
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1990, National Biodiesel Board established.
24 years of serving the American biofuel market.
Domestic RFS support for biodiesel industry.
300 companies representing USA production.
1992, EPACT biodiesel use approved by Congress.
1996, biodiesel fuel suppliers register with EPA.
1998, E.O.#13101 bio-based products/gov’t use.
1999, E.O.#13134 for expanded biodiesel use.
2000, EPA Tier I & II Clean Air Act, biodiesel met.
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Congress Supports US Biodiesel
Industry
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Biodiesel Industry = Domestic Growth
& Security
• Biodiesel industry supports 62,000 jobs.
• Biodiesel industry creates $2.6 billion in
wages.
• 2013 Biodiesel production = 1.56 billion gal.
• Biodiesel sale of RINS Renewable
Identification Numbers = average $.44/gal.
• Production Tax Credit, biodiesel = $1.00/gal.
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Energy Paradigm Change
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OPEC crude oil supply & price fluctuations 19702014 due to “fear premium” of political instability.
• Crude oil is a finite
resource.
• 56% of US supply
imported from OPEC.
• US proven reserves &
leases = 5.23 years
annual consumption.
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OPEC crude oil price fluctuations 1970-2014 causation
for US recessions.
• The 3 longest
recessions in the US
since great depression
concurred with peak oil
prices – 1973 – 1981 –
2008.
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Secure domestically sourced biogenic
hydrocarbon fuel is here.
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Dynamic Fuel LLC - Geismar Louisiana
Refinery
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Produces 5,000 barrels/day synthetic diesel.
Sales to open market and specialized niches.
Utilize in-house feedstock or market purchased.
Feedstock utilized is animal fats, oils, greases.
Utilize existing petroleum infrastructure.
Thermally cracked/distilled, yields clean fuel.
Molecularly identical to petroleum diesel, but
without the odor and 86% less emissions.
• The only process byproduct is H2O – Water.
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Dynamic’s Strategy/Methodology
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Domestically sourced & produced.
Combine talents.
Maximize profits of in-house raw material.
Maximize in-house intellectual property.
Utilize domestic uninterruptible supply chain.
Maximize buy/sell from/to supply chain.
Supply chain is not price volatile.
Supply chain will not diminish but expand.
Capture gov’t tax credits.
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Dynamic’s Strategy/Methodology
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Create profit from Renewable Diesel RIN sales.
Capture an energy production niche market.
Add to gross domestic product, create US jobs.
Utilize existing petroleum technology, adapt it.
Utilize existing petroleum transportation
system.
• Utilize existing petroleum pipeline/distribution
system.
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Dynamic’s Shareholder Responsibility
• Projected annual revenue of $250 million from sales of clean
biogenic diesel, jet fuel, and RINs.
• 2010 - Dynamic Fuel LLC, formed utilizing a Limited Liability
Corporation between Tyson Foods and Syntroleum Inc.
• Embracing the Triple Bottom Line 3BL business model,
invested $150 million in 2010 to build the Geismar Plant.
• Fuel certified as ASTM Diesel and Jet, fuel market purchases
all the fuel Dynamic can produce (75 million gallons-year).
• Fuel outperforms petroleum competition, 86% cleaner.
• 2011-2012 - Annual revenue of $250+ million, the Benefit
Cost Ratio to construct and conduct business is 1.54 = YES.
• Congress continues support of Renewable Fuel Standard
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volume production (2013) of 1.7 billion gallons year.
Dynamic’s Social Responsibility
• 300 well paying jobs were created during
construction, adding value to the
community/region.
• 65 well paying long-term full-time refinery jobs
created in Geismar Louisiana as well as
Renewable Operations Management positions
within Tyson Foods (Arizona) and Syntroleum.
• Annual production-sales of 75 million gallons of
domestically produced, clean diesel & jet.
• Infuses $250+ million-year into US economy.
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Dynamic’s Environmental
Responsibility
• Recycling/thermal cracking distillation of biological
fats, oils, & greases.
• Produces carbon-neutral liquid hydrocarbon clean
diesel/jet fuel.
• Domestic Production of 75 million gallons-year.
• Singular process by-product is H2O, water
(water:2.3%, diesel: 83.2%, light gases:14.5%).
• Fuel tailpipe emissions are 86% cleaner than
petroleum-diesel via GREET Life Cycle Analysis called
Well-To-Wheel.
• Fuel produces 10% more Btu/hr per gallon than
petroleum so less fuel is needed.
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Market Outreach
Mazda 6 Racing Team at Rolex 24
Daytona burns Dynamic biodiesel
• Skyactive-D 400 hp diesel
engines running Dynamic
fuel.
• Mazda purchases Dynamic
fuel for racing program.
• Meet all US and Japan
emissions. requirements
without catalytic reduction
or lean-NOx traps.
• Dynamic fuel provides
clean, smokeless
combustion and features a
cetane in the 70s compared
to petroleum’s 40 cetane.
• It is also foam resistant and
has 86% cleaner emissions.
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Market Outreach
US Navy’s Great Green Fleet Exercises
burns Dynamic biodiesel
• In 2012 the US Navy purchased 450,000
gallons of Dynamic Fuel to blend. 350,000
gallons to blend with ship-diesel and 100,000
gallons to blend with aviation-jet.
• Fuel is carbon-neutral, no GHG gases.
• Fuel energy-density produces 10% more
Btu/hr per gallon than petroleum-diesel.
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Viability Assessment of biogenic thermally
cracked hydrocarbon fuel production
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• SUPPLY CHAIN &
INFRSTRUCTURE
Domestic supply chain for FOG.
Supply of FOG independent to
use for fuel, not linked to fuel
use demand.
Uses existing petroleum cracking
technology.
Uses existing petroleum industry
siting, permitting, construction &
maintenance.
Uses existing petroleum
transportation & distribution
system.
May purchase and utilize existing
petroleum plant and upgrade.
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• CORPORATION/MODEL &
CONGRESSIONAL SUPPORT
Limited Liability Corporation
suggested business type.
Triple Bottom Line business
model compliant/suggested.
Participate in federal RD
renewable diesel energy tax
credit.
Participate in RIN sales.
Membership of 300 companies
in Biodiesel Board, est. 1990.
Current Congressional support of
2014 Renewable Fuel Standard
of 1.7 billion gallons/year
production.
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Viability Assessment of biogenic thermally
cracked hydrocarbon fuel production
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• FINANCIALS
Present Value = $250,000,000/(1+.08) (1)=$231,000,000.
Present Cost = $150,000,000/(1+.08)(0)=$150,000,000.
Net Present Value = $250,000,000 –
$150,000,000/(1+.08)(0) = $100,000,000.
Benefit Cost Ratio = $231,000,000/$150,000,000 = 1.54
Discounted BCR , 30 years @ 8% =
$22,956,163/$14,906,599 = 1.54
Financial data points to a positive investment.
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References and Visual Aids
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REFERENCES
Biodiesel Board (2014) America’s Advanced Biofuel, retrieved from website http://www.biodiesel.org/ on 1.31.14.
California Air Resource Board (2009). Detailed California-Modified GREET Pathway for Co-Processed Renewable Diesel Produced from Tallow (US Sourced), retrieved
from website http://www.arb.ca.gov/fuels/lcfs/092309lcfs_tallow_rd.pdf on 1.21.14.
California.gov (2014). What’s in a barrel of crude oil? Retrieved from website http://energyalmanac.ca.gov/gasoline/whats_in_barrel_oil.html on 1.17.14.
Congressional Research Service (2013). Analysis of Renewable Identification Numbers (RINs) in the Renewable Fuel Standard (RFS), retrieved from website
https://www.fas.org/sgp/crs/misc/R42824.pdf on 1.15.14.
Dynamic Fuels LLC (2014). Retrieved from website http://www.dynamicfuelsllc.com/ on 1.16 14.
North Carolina Department of Environment and Natural Resources (2014). Fats, Oil, and Grease, retrieved from website
http://portal.ncdenr.org/web/deao/recycling/fog/oil%20and%20grease on 1.19.14.
PennEnergy (2014). A Brief History of Oil Prices and Middle East Tensions, Fear of a Black Gold Shortage, retrieved from website
http://www.pennenergy.com/articles/pennenergy/2013/10/a-brief-history-of-oil-prices-and-middle-east-tensions-fear-of-a-black-gold-shortage.html on 1.16.14.
Princeton University (2012). Synthetic fuels could eliminate entire U.S. need for crude oil, create ‘new economy', retrieved from website
http://www.princeton.edu/main/news/archive/S35/39/49I49/index.xml?section=topstories on 1.16.14.
IHS Chemical (2014). Fats and Oils Industry Interview, retrieved from website http://www.ihs.com/products/chemical/planning/ceh/fats-and-oils-industry.aspx on
1.26.14.
Render Magazine (2014). California awards million for biofuel, retrieved from website http://www.rendermagazine.com/articles/2013-issues/april-2013/californiaawards-millions/ on 1.24.14.
RSB Services Foundation (2013). Dynamic fuels earns roundtable on sustainable biofuels (RSB) certification, retrieved from website
http://rsbservices.org/wordpress/wp-content/uploads/2012/04/February-2013-Dynamic-Press-Release-FINAL.pdf on 1.29.14.
Tech Topics (2010). Survey Says: A Snapshot of Rendering, retrieved from website
https://d10k7k7mywg42z.cloudfront.net/assets/4dcab683dabe9d1c690006ed/techtopicsapr11.pdf on 1.19.14.
U.S. Department of Energy (2014). The Energy Lab, Gasifipedia, Fuels, Fischer-Tropsch Process, retrieved from website
http://www.netl.doe.gov/technologies/coalpower/gasification/gasifipedia/ftsynthesis.html on 1.19 14.
U.S. Energy Association (2014). U.S. Inputs to Biodiesel Production, retrieved from website http://www.eia.gov/biofuels/biodiesel/production/table3.pdf on 1.31.14.
U.S. Energy Information Association (2014). How much oil does the United States consume each year? retrieved from website
http://www.eia.gov/tools/faqs/faq.cfm?id=33&t=6 on 1.17.14.
U.S. Environmental Protection Agency (2014). MSW Municipal Solid Waste Generation, Recycling, and Disposal in the United States: Facts and Figures for 2011,
retrieved from website http://www.epa.gov/osw/nonhaz/municipal/pubs/MSWcharacterization_508_053113_fs.pdf on 1.19.14.
U.S. Environmental Protection Agency (2014). Food Recovery Challenge, retrieved from website http://www.epa.gov/foodrecoverychallenge/ on 1.19.14.
U.S. Navy (2014). Great Green Fleet – Biodiesel Fueled, retrieved from website http://greenfleet.dodlive.mil/energy/great-green-fleet/ on 1.31.14.
VISUAL AIDS
CA.gov (2014). Graphic, what’s in a barrel of oil?
Dynamic Fuels LLC (2014). Photo of a bio-synfining plant.
Energy Information Administration (2014). Graphics of imported crude, crude reserves, crude oil field production.
PennEnergy.com (2014). Graphic of OPEC supply spare capacity.
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