Jeff McDaniel
Commercial Director

Microchannel Fischer-Tropsch
reactors: enabling smaller scale GTL
• Technology package to deliver smaller scale GTL
– High activity catalyst
– Microchannel reactors
– Mass manufacturing methods
– Modularisation
• Latest results from Velocys Pilot Plant
• Technology case studies: enabling factors

Velocys Technical Team
Plain City, OH
• 65 employees
• Reactor design
Houston, TX
• 13 employees
• Process engineering
Milton Park, UK
• 30 employees
• Catalyst development

Super-active FT catalyst
Velocys catalyst is 10x more active than
conventional
0
200
400
600
800
1000
1200
1400
1600
Fixed Bed Slurry Bed Velocys
CatalystProductivity
(kg/m3/hr)

High conversion and selectivity
CO conversions are held above 70% at all times – very high single pass conversion. Results are for
a commercially manufactured lot – lab performance is scalable
selectivity

High productivity FT catalyst
>90% overall conversion with minimal recycle
Equal to 91-92%
overall
conversion
Equal to 94.5%
overall
conversion
180
190
200
210
220
230
240
250
260
270
280
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 50 100 150 200 250 300 350
Temperature,ºC
%conversion,%selectivity
Time on stream (days)
Regeneration
Loss of cooling
system - high t.
CO conversion
Temperature
Methane selectivity

Long in-place operating life is
supported by stable regeneration

Microchannel reactors
Microchannel FT reactorConventional FT reactor
Microchannel
Enhanced
mass and
heat
transfer
~ 25-150 mm
~ 0.1-
10 mm
Shell-and-tube

Commercial FT reactor
FT reactor core
• Principles of design and operation
– Particulate catalyst in small channels
– High catalyst volume fraction
– Syngas downflow, products exit bottom
– Coolant water / steam generation
– Heat removal by steam generation
• Strengths
– High per pass conversion (75%+)
– Isothermal behavior – thermally stable
– Extremely robust to upsets
– Strong economy of mass manufacturing
– Accommodates high activity catalysts
– Installed spares relatively cheap
– High on-stream factor
– Tail gas recycle only to achieve high conversion
– Extremely high volumetric productivity
– Ease of modularization
Compact, robust, efficient and economic
Microchannel technology

Microchannel FT reactor score card
Property Tubular fixed bed Slurry bubble column Velocys microchannel
Flow patterns Plug flow Well-mixed Plug flow
Reactor scale-up methodology Easy/known Not well-known Easy/known
Heat transfer limitations Very high Low Low
Mass transfer limitations High Low Medium
Thermal stability Poor Excellent Excellent
Catalyst reaction rate Low Moderate Very high
Reactor volumetric production Low Low High
Differential pressure Moderate Low Moderate
Gas recycle requirements High Moderate Low
Catalyst wax separation Excellent Problematic/difficult Excellent
Catalyst strength requirement Low High Low
Regeneration equipment Minimal Significant Minimal
Regeneration ease Difficult Complicated Simple
Catalyst replacement Offline-slow On-stream Offline-rapid
On-stream factor Low High High
Feed poisoning Local Global Somewhat local
Upset robustness Low Generally good High
Shutdown robustness Good Poor Excellent
Modularization Low Low High
Mass manufacturing economies Low-medium Poor Excellent
Boiler feed water quality Low Low Moderate
Capital cost per bpd High Low (large plants) Low (distributed plants)
Legend: poor ok good

Mass manufacturing and supply chain
• Commercial FT reactor
manufactured
– Optimized final design for
manufacture at volume
• At state-of-the-art production
facility at Shiloh
• Reactor approved as fit for
deployment by independent third
party
• Catalyst service partner trained
and certified catalyst loaded in
commercial reactor
Reactor manufacture
Catalyst loading

Supply chain partnership with Shiloh
• North America’s supplier of engineered metal
products to the automotive industry
– Cost effective mass production
– Consistent high quality
– Initial capacity supports 10,000 bpd/yr of orders
– Plans in place to support a 4x capacity increase
• Partnership to
– Continuously improve FT reactor manufacturing
– Enhance overall GTL plant costs
• Shiloh contributing
– Several $M in manufacturing resources
– Dedicated team of engineers

Modular GTL “for the mainstream”
• Broader range of sites
– 1,500-15,000 barrels per day
– Suitable for remote locations
• Lower risk
– Smaller investments
– Less risk of cost over-runs
• Reduced costs
– Standardized modules and reactors
– Possible integration with existing facilities
• Easier to execute and expand
– Quicker plant construction (18-24 months)
– Easier to permit, supply, build and operate
– Additional trains can be added later
1,400 bpd FT process unit
designed by Ventech Engineers
90 ft L x 46 ft H x ~40 ft W

Engineering partner example –
Ventech Engineers
• Placed reactor order for 1,400 bpd
capacity
– 8 commercial scale reactors
($8million)
– Kick-started supply chain
– Production underway
• Several GTL plants in engineering
– Considering investing in some of these
• Participating in JV with Velocys,
Waste Management and NRG Energy

PILOT PLANT RESULTS

Pilot plant and training facility
• Integrated GTL pilot plant
in Ohio
• Designed to provide
– Performance data to
support differing client
designs
– Product for client studies
– Permanent training facility
for plant operators
• Platform for
– Developing our own field
support staff
– Demonstrating future
product generations
Add pilot plant photo
Pilot plant

Pilot plant results

Pilot plant results
Catalyst Productivity and Average Reactor Temp vs. Time on Stream

TECHNICAL CASE STUDIES –
ENABLING FACTORS

• Project description
— First GTL plant that will use a combination of
renewable biogas and natural gas
• Enabling factors
— Low cost landfill gas as feedstock
— RIN credits under the Renewable Fuel Standards
— WM’s existing experience of operating GTL
technology
– Pilot plant on site since 2010
• Status
— Final investment decision taken July 2014
— Construction proceeding; purchase of major
equipment begun
— Entered into all major contracts
– EPC, land lease, gas purchase and product offtake
Existing GTL pilot plant at East Oak
JV with Waste Management, NRG
Energy and Ventech – Oklahoma City

Ashtabula GTL
• Project description
– 2,800 bpd GTL plant in Ashtabula, Ohio, USA
• Enabling factors
– Integration with substantial existing
infrastructure gives reduction in capex
• Waste water treatment; power plant;
cooling water pumping; air separation; gas
pipeline; rail and barge; local customers for
bi-products
• Status
– Velocys acquired the Ashtabula GTL project, and
its project developer, in June 2014
– Initial engineering completed by Ventech (EPC),
Haldor Topsoe & Velocys
– Air permit recently granted
Ashtabula GTL

GreenSky London
• Project description
– Commercial 2,500 bpd waste-biomass-to-
jet fuel plant being developed by Solena
Fuels in Development with British Airways
• Enabling factors
– Negative feedstock cost (tipping fees)
– Regulatory incentives for aviation biofuels
– Support of a major air-line that takes its
environmental performance very seriously
• Status
– Pre-Front End Engineering completed
– Site selection announced April 2014
Picture courtesy of British Airways

Red Rock Biofuels
• Project description
– 1,100 bpd forestry waste to liquids plant in
Oregon, USA
• Enabling factors
– Supported by US DoD and US DoE
• Received $4.1m phase 1 grant for
engineering
• 1 of 4 projects eligible to apply for $70m
construction grant
• Status
– FEED study complete and submitted with phase 2
proposal
– US DOD targeting late August for phase 2 grant
decision

Ventech integrated modular GTL/DPU
• Low cost Diesel Production
Unit (DPU) integrated with
GTL facility
– DPU wide diesel cut combined
with GTL hydro-processing may
double diesel output
– Synergy significantly reduces
overall project capex and opex
per barrel of product
– Co-processing opportunities for
naphtha enhanced
Integrated GTL/CDU concept
Off-Gas
LPG
Heavy Fuel Oil Naphtha
Steam Fuel Gss
Steam
Syn-Gas
FT
Products
Waste heat steam from reforming and FT reactor(s)
Crude Oil or Crude
Condensate
Natural Gas and/or
Refinery Fuel Gas
Cogeneration
Plant
Fischer Tropsch
Reactor
Crude Oil
Distillation Unit
Reforming (auto-
thermal reformer,
steam methane
reformer, or
partial oxidation
unit)
Hydroprocessing
System
Main Steam Header
Wide Cut Diesel
Stabilizer
Naphtha and Off-
Gas
Ultra Low Sulfur
Diesel
Ventech Patent Pending

Summary
• Active catalysts and microchannel reactors
enable smaller scale GTL
• Mass-produced for cost-effectiveness
• Modular construction methods provide a
platform to deliver GTL “for the mainstream”
• Commercial deployment underway

Thank you
Jeff McDaniel
Commercial Director
jeff.mcdaniel@velocys.com
Plain City, Ohio office
+1 614 733 3300
Houston office
+1 713 275 5840
www.velocys.com
®