2. Disclaimersc a e
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses
of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking
statements. Forward-looking statements are statements of future expectations that are based on management’s current
expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results,expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements
include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements
expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking
statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’,
‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and
similar terms and phrases There are a number of factors that could affect the future operations of Royal Dutch Shell and couldsimilar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could
cause those results to differ materially from those expressed in the forward-looking statements included in this presentation,
including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c)
currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry
competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition
properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in
developing countries and countries subject to international sanctions; (j) legislative fiscal and regulatory developmentsdeveloping countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments
including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries
and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental
entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m)
changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their
entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on
f d l ki t t t Additi l f t th t ff t f t lt t i d i R l D t h Sh ll’ 20 F f thforward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the
year ended December 31, 2011 (available at www.shell.com/investor and www.sec.gov ). These factors also should be
considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 10 April 2013
Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or other information. In light of these risks, results could differ materially
from those stated, implied or inferred from the forward-looking statements contained in this presentation.p g p
3/28/2013 2
3. Discussion Topicsp
• Introduce Gas Technology Institute
(GTI) and CRI Catalyst (CRI)(GTI) and CRI Catalyst (CRI)
• IH2 Technology overview
• IH2 Technology product quality
• IH2 process economicsp
• IH2 Technology integration
sugar/ethanol
• IH2 commercial deployment
3/28/2013 3
4. Gas Technology InstituteGas ec o ogy st tute
• Not-for-profit gas research & services organization with a 70+ year history
• Capabilities that span the natural gas value chain
• Current focus in diversified energy solutions
• Facilities
– 18 acre Chicago campus
– 28 specialized labs totaling 200,000 ft2
• Staff of 250
>1 200 patents• >1,200 patents
• 750 licenses granted & 500 products taken to market
Pil t S l G ifi ti C E & E i t l T h l C t
Offices& Labs
CRI is the partner for IH2
3/28/2013 4
Pilot Scale Gasification Campus Energy & Environmental Technology Center
5. CRI Catalyst CompanyC Cata yst Co pa y
• Catalyst Business with 50+ year history
• Houston based global business
– Houston
– London
– Singapore
• Research Facilities
Amsterdam– Amsterdam
– Bangalore
– Houston
f• Manufacturing Facilities
– US (3)
– Germany
– Belgium
3/28/2013 5
6. What is the IH2 Process?
• IH2 process
Catalysts Hydrogen & Heat– Catalysts, Hydrogen & Heat
– Cost-effectively converts wide
variety of biomass
– Directly produces hydrocarbon
“drop in” fuels (R100) and/or high
quality blend stock (>R50)
• IH2 Technology offers integration
opportunities
– Refinery, paper mill, ethanol plant,
agricultural, or recycling operations
– Creates higher value from biomass
than afforded by heat and
electrical power sales (NA basis)
3/28/2013 6
electrical power sales (NA basis)
7. IH2 Process (Simplified, Stand Alone)
Process
( p , )
Biogenic CO2
Feed
Products
HDO’d Vapors
4) SMR C1‐C3 GasRenewable H2
Di till d
Hi Pressure
Steam
Crop Residue
City Waste
2) Fluidized Bed
Proprietary
Catalyst
Renewable H2
3) Fixed Bed
Proprietary
Catalyst
Renewable H2
Distilled
Hydrocarbon
Clean Water
Wood/Forest
Residue
Gasoline, Jet and Diesel Range HCs
340‐470C
<500psig
1st Stage 2nd Stage
370‐400C
<500psig Fertilizer
Energy Crops
Algae
1) Feed Conditioning
Sizing , Drying & Feeding
BioChar
3/28/2013 7
8. IH2 Transformative Differentiators
• Fungible, high purity hydrocarbon fuel and/or blend
stock productsstock products
• Nearly carbon neutral*
• Feedstock flexible w/ high product yields
– 67-157 US gallons/US ton
• Attractive economics
– ~ $2/gal; 500 dry MT/day wood; USGC
– Low capex (4 major process steps, low pressure, non corrosive)
– Low opex (feedstock predominates)
E th i ith 72% 86% bi• Exothermic process with 72% - 86% bioenergy
recovery (wood)
• Market Ready! Combination of Available Technologies
3/28/2013 8
*>94% GHG reduction per Professor David Shonnard at MTU: http://services.lib.mtu.edu/etd/THESIS/2012/ChemicalEng/maleche/thesis.pdf
9. Evolution of IH2 Technologygy
Gasoline Product
3rd Gen Catalyst
Advanced catalysts improve product, Wood Example
Total Liquid Product
2nd Gen Catalyst Lab Scale
Total Liquid Product
1st Gen Catalyst Lab Scale
Gas/Jet/Diesel Product
3rd Gen Catalyst Lab Scale
Pilot Plant Scale
Hydrocarbon
Hydrocarbon
Jet/Diesel Product
3rd Gen Catalyst
Pilot Plant Scale
WaterWater
Water Product
3rd Gen Catalyst
Pilot Plant Scale
4Q09 “R5” Quality 3Q10 “R25” Quality 2Q12 “R60+” Quality
“GOAL““GOAL“
Drop InDrop In
StandStand
AloneAlone
“R100”“R100”
Process & Catalyst
R&D Continues
3/28/2013 9
R100R100
10. Comparison of Liquid Quality from Woody
BiomassBiomass
Pilot plant Laboratory unit
% Carbon 88.20 88.40
% Hydrogen 11.60 11.00
% Sulfur 0.02 0.02
% Nitrogen <0.10 <0.10
% Oxygen BDL BDL% Oxygen BDL BDL
Total acid number, mg KOH/g <0.05 <0.05
3/28/2013 10
11. IH2 Liquid Product Quality(Wood)
• 3rd generation gasoline
– Gasoline Meets ASTM D-4814-10b
unleaded gasoline specificationsunleaded gasoline specifications
– R100 RBOB Quality Economy &
Intermediate U.S.
– Evaluating EU split v EN-228
• 3rd generation diesel
– Passed all D-975-11 as No 2, general, g
purpose middle distillate fuel as R100
– Except Cetane Index & Viscosity
– Diesel aromatic, currently ~R50 Target
R100R100
– Diesel (whole algae) likely R100 (in testing)
– Evaluating EU split v EN-590
LA options for IH2 hydrocarbons: internal consumption or export
3/28/2013 11
LA options for IH hydrocarbons: internal consumption or export
12. IH2 Process Economics (USGC) NREL 09/12 Basis( )
29.6
Wood $71.97/dry ton
Other Op Costs: Catalyst,
Operating Costs Total $1.64/gal*
4.7
17.7
Feed
1st Stage/2nd Stage
Installed Equipment Costs $127.5mln
91.31
2.14
17.3
5.9 Disposal, etc.
Fixed Cost
Depreciation
Avg Income Tax
Avg ROI
4.0
55.0
2 8
2.8
40.5 Fractionation
HMU
Ammonium Sulfate
Absorption/Stripping
Utilities & Contingency
• Stand Alone/Green Field (US Gulf Coast basis)
• 2000mt/d wood (50% moisture fed, dried to 10% moisture at 1st stage)Installed Equipment
Total Capital Investment $263mln
7.8 Avg ROI
*Includes $0.1884/gal coproduct credit
2.8 Utilities & Contingency
@ 35%
• 60% financed at 8% interest, overall 10% IRR
• Feed Stock ~55% of Operating Cost
• No subsidies, tax, RIN or carbon credits included!
• Minimum Fuel Selling Price – $0.433/L (2007) $0.476/L (2012)
R fi S /R fi H S l
127.5116.5
Costs
Land/Develop
Permits & S/U
Standard Project
Add-In's**
** Prorated Expense (10%), H O & Construction (20%), Field
Expense (10%), Working Capital (10%) , Project Contingency (30%)
• Refinery Synergy w/Refinery H2 Supply
• Reduces TIC ~55.0MM$
• Estimated MFSP $0.359/L (2007) $0.394/L (2012)
• KBR FEL-3 underway
• Opex validated by prospective clients
6.313.2
Add In s
• Opex validated by prospective clients
3/28/2013 12
13. Sugar/Ethanol Important Latin American Region
• ~38% World Sugar Cane (SC)
• Brazil, Colombia, Argentina known SC Ethanol Producers; Guatemala, Jamaica,
Costa Rica, El Salvador export SC Ethanol
A P d ti P d ti it % f W ld
• Residual materials – Bagasse, Cane Trash, Filter Cake, Spent Wash, Molasses
• Next Generation Biofuels – Brazil
• IH2 w/Sugar/Ethanol Cellulosic Hydrocarbon
Country
Area Production Productivity % of World
Production(million ha) (million tons) (Tons/ha)
Brazil 5.343 386.2 72.3 29%
India 4.608 289.6 62.8 22%
China 1.328 92.3 65.5 7%
Thailand 0.97 64.4 66.4 5%
Pakistan 1.086 52 47.9 4%
Mexico 0.639 45.1 70.6 3%
Colombia 0.435 36.6 84.1 3%
Australia 0.423 36 85.1 3%
USA 0.404 31.3 77.5 2%
Philippines 0.385 25.8 67.1 2%pp
Indonesia 0.35 25.6 73.1 2%
Cuba 0.654 22.9 35 2%
South Africa 0.325 20.6 63.4 2%
Argentina 0.295 19.2 65.2 1%
Myanmar 0.165 7.5 45.4 1%
Bangladesh 0.166 6.8 41.2 1%
3/28/2013 13
g
WORLD 20.42 1333.2 65.2 100% Sugar Cane Production Data & Sugar Cane Growth Region Map http://www.sugarcanecrops.com/
14. IH2 Integration w/ Sugar/Ethanol
Sugar/Ethanol plant 160 t/hr Sugarcane
Excess Bagasse: 41.8 t/hr; 147854t/yr*
Cogeneration
*Material Energy Balance provided by J.P.Mukherji Associates Pvt. Ltd. – India
~150 days Operation, Bagasse @50% Moisture
IH2
g
Steam Electricity
34.5 – 65 GW/yr**
Hydrocarbon &
Steam*** Electricity
32.1 MML Hydrocarbon/yr
** Location, Cogeneration Equipment Efficiency,
Steam T P Distribution Losses etc impact final
3/28/2013 14
Steam T, P, Distribution Losses, etc. impact final
GW available for sale to Grid *** 72% - 86% bioenergy recovery
15. IH2 Integration w/ Sugar/Ethanol High Level Evaluation
C ti IH2
Cogeneration
Steam Electricity
34.5 – 65 GW/yr**
IH2
Hydrocarbon &
Steam*** Electricity
32.1 MML Hydrocarbon/yr** Location, Cogeneration Equipment Efficiency,
Steam T P Distribution Losses etc impact finalSteam T, P, Distribution Losses, etc. impact final
GW available for sale to Grid
*** 72% - 86% bioenergy recovery
• IH2 Liquid hydrocarbons
benefit v Cogeneration
$40 00
$45.00
Bagasse Conversion
Cogeneration v IH2 Hydrocarbon
• IH2 Location specific
– Commodity Price
– Conversion
– Efficiency
IH2 C it l MFSP
$20.00
$25.00
$30.00
$35.00
$40.00
matedMM$/yr
– IH2 Capital MFSP
• IH2 Hydrocarbon Only
• IH2 Feed Flexible
– Other Sugar/Ethanol
$-
$5.00
$10.00
$15.00
Estim
residues
– Local Alternative Feeds
World bank – gasoline base prices by country
Business week – Electricity prices by country 08/12
IH2 Hydrocarbon @ Resale 75% of Retail IH2 Hydrocarbon @ Resale 50% of Retail
Low - Electricity to Grid High - Electricity to Grid
3/28/2013 15
y p y y
* Brazil has since reduced electricity price per KWH Average - Electricity to Grid
16. IH2 Technology Deployment
• Bench Scale
– 02/2009 @ 0.5kg/hr
gy p y
• Pilot Scale
– 02/2012 @ 50kg/d
– Confirmed bench scale results
Fuels for EPA Registration– Fuels for EPA Registration
– Fuels for ASTM Evaluation
– Gasoline (wood) is R100
Pre Commercial Scale• Pre Commercial Scale
– BDEP for 5mt/d cellulose done
– 1st demonstration license awarded 12/2012, more expected
C i l S l• Commercial Scale
– KBR is CRI’s exclusive basic engineering partner
– FEED 500 & 1000mt/d wood (FEL-2 complete, FEL-3 underway)
– Full Scale Deployment Target Q1 2014Full Scale Deployment Target Q1 2014
163/28/2013
17. Commercial Timeline, Current StatusCo e c a e e, Cu e t Status
1Q10
2Q10
3Q10
Process
Variables and
Semi-
Continuous
Lab Scale
Demo Scale Units Only (11 units)
(Brownfield Construction; Date Basic Engineering Starts)
Full
Commercial
Pilot Scale
Wood, 5-1000mt/d
3Q10
4Q10
1Q11
2Q11
3Q11
Continuous
Operation
Construct 50kg/d
Pilot Plant
Receive Unit
Crop Residues, 5-10mt/d
Micro Algae, 5mt/d
Mixed Paper/OCC/Urban Wood, 5mt/d
4Q11
1Q12
2Q12
3Q12
4Q12
Continuous Pilot
Plant Operation
Shake Down
1Q13
2Q13
3Q13
4Q13
1Q14
5mt/d
500mt/d
1000mt/d
Today
y5mt/d
gin5mt/d
1Q14
2Q14
3Q14
4Q14 Construction
Basic/Detailed
EngineeringFEL-3Complete
FEL-2Complete
FEL-2Complete
FEL-2Underway
FEEDSettobeg
3/28/2013 17
18. Technology is:
– Cost-effective process developed by GTI using CRI proprietary
catalysts
Converts biomass directly to hydrocarbon fuels and/or high quality
Technology is:
– Converts biomass directly to hydrocarbon fuels and/or high quality
blend stocks
– Self-sufficient & self-sustaining w/ little lasting environmental impact,
needs only transport in/outneeds only transport in/out
– Feedstock flexible
– Nearly carbon-neutral
– Integrated for potentially improved economics
– Currently in FEED (FEL-2/-3) for multiple feed demonstrations
– Available exclusively from CRI Catalyst Companyy y p y
183/28/2013
19. Assumptions, Credits, Referencesssu pt o s, C ed ts, e e e ces
1. Slide 3 Image credit: <a href='http://www.123rf.com/photo_10846628_a-group-of-illustrated-3d-people-are-arranged-in-a-circle-around-the-words-
let.html'>iqoncept / 123RF Stock Photo</a>
2. Slide 6 Image credit: <a href='http://www.123rf.com/photo 14316634 the-big-question-silberblau.html'>styleuneed / 123RF Stock Photo</a>S de 6 age c ed t a e ttp // 3 co /p oto_ 3 663 _t e b g quest o s be b au t sty eu eed / 3 Stoc oto /a
3. Slide 8 Transformative Differentiators *>94% GHG reduction per Professor David Shonnard at MTU:
http://services.lib.mtu.edu/etd/THESIS/2012/ChemicalEng/maleche/thesis.pdf
4. Slide 8 Image credit: <a href='http://www.123rf.com/photo_12407917_butterflies-from-the-chrysalis.html'>kamonrat / 123RF Stock Photo</a>
5. Slide 11 – Hart Energy’s international Fuels Quality Center – Sulfur Limit World Graphs for Diesel and Gasoline
6. Slide 12 IH2 Process Economics (USGC) NREL 06/11 Basis http://www.osti.gov/bridge/servlets/purl/1059031/1059031.pdf
7. Slide 13 - According to the Renewable Fuels Association, Jamaica, Costa Rica and El Salvador are respectively the second-, third- and fourth largestg p y g
exporters of fuel ethanol to the US. The region began exporting ethanol to the US under the Caribbean Basin Initiative, which allowed tariff-free exports
of ethanol up to 7 percent of US ethanol production.
8. Slide 13 Data & Sugarcane Map via http://www.sugarcanecrops.com/
9. Slide 13 Sugar Cane Photograph By Rufino Uribe (caña de azúcar) [CC-BY-SA-2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia
Commons
10. Slide 14 Maximize Returns w/ IH2 Integration Sugar/Ethanol Material Energy Balance provided by J.P.Mukherji Associates Pvt. Ltd
11 D t A ti d f Slid 15 M i i R t / IH2 I t ti S /Eth l11. Data Assumptions used for Slide 15 Maximize Returns w/ IH2 Integration Sugar/Ethanol
– http://www.businessweek.com/articles/2013-02-07/brazils-cheaper-electricity-comes-at-a-cost - Electricity Prices
– http://data.worldbank.org/indicator/EP.PMP.SGAS.CD/countries?display=default – World Bank Gasoline Prices by Country (2010)
– http://www.eia.gov/petroleum/marketing/monthly/pdf/pmmgraphic.pdf -- Discount Resale Gasoline Price U.S. Used to Adjust World Bank Values to Resale taken
at 75% of Retail based on U.S. reduction retail to resale taken from eia data.
– Conservative estimate for IH2 hydrocarbon value was taken at reduced rate of 50% of retail for each country
– http://www.bls.gov/data/inflation_calculator.htm CPI Inflation Calculation taken at 106% conversion 2010 to 2013$
– Economic benefits included are for illustration only. Further economic evaluation should be conducted on a site specific basis.
– Electricity conversion was estimated based on Mass Balance provided by J.P. Mukherji Associates Pvt. Range of electricity conversion was assumed based on
internal values for conversion . Low end total GW produced assumed an 80% efficiency and high end assumed no losses. Estimated electricity price applied to
calculation for the Low scenario assumed 80% of the retail electricity price was the selling rate per KWH back to the grid. High scenario assumed the selling rate
per KWH was the same as retail price.
12. Slide 14 &15 electricity pylon Image credit: <a href='http://www.123rf.com/photo_9268750_electricity-pylon--tower-with-fluffy-white-
clouds-and-blue-sky-background.html'>peteg / 123RF Stock Photo</a>
3/28/2013 19
20. Thank You Gracias & ObrigadaThank You, Gracias & Obrigada
Learn more at www.cricatalyst.com
3/28/2013 20
