Fischer-Tropsch Technology: Addressing the Peak Oil Issue Today - PowerPoint PPT Presentation

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Fischer-Tropsch Technology:

Addressing the Peak Oil Issue Today

By Dennis L. Yakobson

Rentech, Inc.

Presented at

The Denver World Oil Conference

Beyond Oil: Intelligent Response to Peak Oil Impacts

November 10-11, 2005

Sherman Street Events Complex

Denver, Colorado

Newsweek Magazine – October 17, 2005

The world consumes two barrels of oil for every barrel discovered.

So is this something you should be worried about?

Introduction – The Issues at Hand

Conventional oil reserves are not located where demand is growing
No one technology can address the overall issue – fossil fuel demand is too large
Availability of infrastructure limits the use of many alternatives
A large readily-available resource is needed to offset near-term implications of peak oil
Alternatives must be clean, easily distributed and economically viable in today’s environment

One Potential Solution – Fischer-Tropsch (FT)

Fischer-Tropsch is a proven technology to transform under-utilized hydrocarbon resources into valuable alternative fuels and chemicals.

Fischer-Tropsch – 2005

SASOL
160,000 b/d+
Feedstock - Coal

Secunda

Sasolburg

10

Fischer-Tropsch – 2005 (continued)

Petro SA
22,500 b/d+
Feedstock - Natural Gas

Secunda

Mossel Bay

Sasolburg

10

Shell
15,000 b/d+

Bintulu, Malaysia

Secunda

Mossel Bay

Sasolburg

10

Sasol Oryx Project
34,000 b/d
Online 2006

Bintulu, Malaysia

Qatar

Nigeria

Secunda

Mossel Bay

Sasolburg

10

Gas-to-Liquids (GTL)

Natural gas

CO2 Sequestration
Oil Recovery Enhancement

Synhytech – Pueblo, Colorado, 1991 - 1993

Fischer-Tropsch Technology

Steam

Power

Fischer-TropschSynthesis

Synthesis GasGeneration

CO + H2

Tail gas

Gas Clean-up

Coal-to-Liquids (CTL)
Coal
Petroleum coke

Production Separation& Upgrading

Diesel

Naphtha

FT Slurry Reactor

Synhytech, 1992

Fischer-Tropsch (FT) Drivers

Large secure resource base available – coal
No new product delivery infrastructure required
The fuels are clean-burning and meet all new and foreseeable worldwide environmental regulations

“No New Infrastructure Required”

FT Diesel Emissions Relative

to a Typical Diesel Fuel

(Percentage)

FT Diesel

Source: An average of several government funded studies by NREL & SwRI

FT Core Product – Ultra-Clean Diesel Fuel

FT Slurry Reactor

Synhytech, 1992

Fischer-Tropsch (FT) Drivers (continued)

Large secure resource base available – coal
No new product delivery infrastructure required
The fuels are clean-burning and meet all new and foreseeable worldwide environmental regulations
Direct increase to a nation’s refining capacity (“no bottom of the barrel”)
Enhances the production of other energy-intensive products such as power and chemicals – poly-generation
Economically viable in today’s market

Oil Demand 2025(1)

Oil Demand – 2025

70

60

50

40

% of World

30

20

10

0

North America

Middle East

Emerging Asia

EIA/IEA Outlook 2005, Table A.4

Reserves:(2)

Oil Demand 2025(1)

Oil

Oil Demand – 2025 vs. Carbon Resources

70

60

50

40

% of World

30

20

10

0

North America

Middle East

Emerging Asia

(1) EIA/IEA Outlook 2005, Table A.4

(2) BP Statistical Review & World Energy, June 2005

oil demand 2025 vs carbon resources continued

Oil Demand 2025(1)

Oil

Natural Gas

Oil Demand – 2025 vs. Carbon Resources (continued)

Reserves:(2)

70

60

50

40

% of World

30

20

10

0

North America

Middle East

Emerging Asia

BP Statistical Review & World Energy, June 2005

oil demand 2025 vs carbon resources continued16

Oil Demand 2025(1)

Oil

Natural Gas

Coal

Oil Demand – 2025 vs. Carbon Resources (continued)

Reserves:(2)

70

60

50

40

% of World

30

20

10

0

North America

Middle East

Emerging Asia

BP Statistical Review & World Energy, June 2005

Advanced Clean Coal Potential Impact

USA China India
Gigawatts(1) 112 171 57
Tons Coal (dry basis) 1,154,000 1,760,000 585,000
per Day(2)

Pulverized Coal Technology(3)

CO2 (tons/day) 2.9 million 4.5 million 1.5 million

IGCC w/FT(4)

CO2(5) (tons/day) 1.2 million 1.8 million 0.6 million
Barrels/Day 1,100,000 1,700,000 570,000

(1) EIA/IEA International Outlook 20046

(2) Based upon sub-bituminous coal containing 30% by wt. moisture

(3) Efficiency 33%

(4) Efficiency 55%

(5) Includes CO2 sequestration

Development History of a Proven Proprietary and Patented GTL / CTL Technology

Sterling

1982-1985

Denver

Development History of a Proven Proprietary and Patented GTL / CTL Technology (continued)

Sterling

1989

development history of a proven proprietary and patented gtl ctl technology continued20

Sterling

Denver

Pueblo

1991 – 1993

development history of a proven proprietary and patented gtl ctl technology continued21

Sterling

Commerce City

Pueblo

2005

development history of a proven proprietary and patented gtl ctl technology continued22

Sterling

Commerce City

Pueblo

2006

development history of a proven proprietary and patented gtl ctl technology continued23

“A 25-Year Instant Success”

Royster-Clark E. Dubuque
Nitrogen Facility
2005 – Natural Gas

830 t/d ammonia
14 MWe imported power

2009 – After Proposed Conversion to Coal

>900 t/d ammonia
~ 5700 b/d FT fuels
~ 37 MWe export power

“In my opinion, the United States has the potential to be the CTL capital of the world.”

– Dennis Yakobson

Summary

World petroleum demand is growing at an unsustainable rate
Conventional oil supplies are defined
All available carbon resources need to be considered, engaged and utilized
New technologies need to be deployed
Depending on physical location – GTL/CTL are viable near-term solutions

Safe Harbor Statement

Statements made in this presentation regarding Rentech, Inc. and the information incorporated by reference into this release that are not historical factual statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. It is intended that such forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. This section is included for purposes of complying with those safe harbor provisions. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of Rentech and its officers and can be identified by the use of terminology such as “may,” “will,” “expect,” “believe,” “intend,” “plan,” “estimate,” “anticipate,” “should” and other comparable terms or the negative of them. In addition, we, through our senior management, from time to time make forward-looking oral and written public statements concerning our expected future operations and other developments. You are cautioned that, while forward-looking statements reflect our good faith belief and best judgment based upon current information, they are not guarantees of future performance and are subject to known and unknown risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from expectations. Factors that could affect Rentech’s results include the availability of financing for the projects, the decision of others as to proceeding with the projects, the timing of various phases of the projects, and the entry into definitive agreements with others related to the projects and our Joint Venture. Any forward-looking statements, whether made in this report or elsewhere, should be considered in context with the risk factors discussed or incorporated by reference in this report and the various disclosures made by us about our businesses in our various public reports including but not limited to forms 10Q and 10K filed with the United States Securities and Exchange Commission which can be accessed through the Company website at http://www.rentechinc.com/secfilings.htm at no monetary charge.