Trans nsformi orming ng plasti lastic c waste e in into o - - PowerPoint PPT Presentation

Trans nsformi

• rming

ng plasti lastic c waste e in into

• valuabl

able e lo low-carbon arbon product

• ducts

Pareto eto Oil & & Gas as Confe ference Septembe mber r 2019

19 September 2019 | 2

P A R T O F T H E S O L U T I O N

Quantafuel turns a global environmental problem into low-carbon products

19 September 2019 | 3

P L A S T I C – A M A N M A D E “ W O N D E R M A T E R I A L ”

Plastic production grows steadily – fastest growing man-made material

Source: Plastics Europe

Million tonnes es per year ar

~650 50

(2035) 1950 1950 1970 1970 1990 1990 2010 2010 2030 2030 2050 2050

86 86

(1985)

19 September 2019 | 4

250 ton

• nnes

es of

• f p

pla lastic tic waste te

enters the ocean during this presentation

(over 8 million tonnes per year)

Source: UN Environmental Programme

19 September 2019 | 5

The most difficult material to recycle mechanically

19 September 2019 | 6

P L A S T I C W A S T E I N D E N M A R K

~110,000 tonnes separated plastic waste and ~750,000 total plastic waste – ~50,000 tonnes separated for mechanical recycling

~650,000 MT Separated plastic waste Plastic waste included in

• ther waste streams

Plastic waste streams Chemical recycling Recycling potential 50 – 100,000 MT Hard to separate plastic waste

Quantafuel relevant feedstock

~110,000 MT 300 – 400,000 MT

Source: http://mst.dk/affald-jord/affald/affaldsdatasystemet/find-affaldsdata/affaldsstatistikker/

Mechanical recycling

300 –400,000 MT

19 September 2019 | 7

W A S T E M A N A G E M E N T

Quantafuel’s position in the waste pyramid – chemical recycling included

Mechanical recycling

Plastic waste made into pellets used for new plastic production. “Currently, only 3-4 % of plastic waste in Europe is actually reused for making new plastic products.”

Chemical recycling

A wider range of plastic waste reduced back into petrochemical products – some to be used towards new plastics. “Replaces virgin oil products 1-1.”

Energy recovery

Incineration of organic and in-organic (plastics) substances into heat and electricity production. “High energy efficiency, but results in “burning oil” when plastics are used as feedstock.”

19 September 2019 | 8

H I G H G R O W T H N A S C E N T M A R K E T

Need a rise of structured plastic waste management and recycling

Luckily it is on the way…

Source: McKinsey&Company

2030: >200 million tonnes plastic reused 2030: “Alternative reuse” of plastic biggest profit growth >50 million tonnes for pyrolysis ~25 BUSD for pyrolysis

19 September 2019 | 9

M A R K E T M A C R O O U T L O O K

Global players scrambling for developing their position

Oil majors Chemical majors Recycling majors

Compa pany y exampl mples es “REMONDIS has initiated a project to develop and operate so so-called chemical recycling facilities.“ Compa pany y exampl mples es Compa pany y exampl mples es State ted d ambiti tion: State ted d ambiti tion: State ted d ambiti tion: “BASF is working on recovering and recycling of plastics through our ChemCycling project.“ “Neste targets to process more than one million tons of plastic waste annually by 2030.“

See major opportunities in alternative fuels Expect chemical recycling to become a major factor Need to increase recycling – require chemical recycling

19 September 2019 | 10

E F F I C I E N T P L A S T I C R E C Y C L I N G

Quantafuel is pioneering the plastic recycling industry – giving waste plastic now being incinerated a second life

Low-carbon fuel

Capturi ring loc

• cal

al plast stic ic waste as a resource… …through small plants and proven technology… …producing high-quali lity, synth thetic tic prod roducts. cts.

Re-use plastic waste ÷ 90 % GHG emission in fuel production Reduce local emissions

Quantafuel first company with 30 USD/boe break-even

19 September 2019 | 11

U N I Q U E C A T A L Y S T S O L U T I O N A N D P L A N T D E S I G N

Quantafuel with unique and proprietary catalyst and enabling small, efficient plant design constructed with tried and tested components

Pl Plas astic tic pyrol

• lysis

sis reactor actor Quan antaf afuel el reactor actor Distill stillation tion Sto torage age and offlo loadin ading 2 3 4 5 Pl Plas astic tic Feedin ding 1

19 September 2019 | 12

T E C H N O L O G Y R E F I N E M E N T S

Feedstock handling system

1

B Technology

19 September 2019 | 13

T E C H N O L O G Y R E F I N E M E N T S

4 Pyrolysis reactor

2

B Technology

19 September 2019 | 14

T E C H N O L O G Y R E F I N E M E N T S

Unique catalyst solution

B Technology

3

19 September 2019 | 15

T E C H N O L O G Y R E F I N E M E N T S

Distillation column and storage

B Technology

5 4

19 September 2019 | 16

T E C H N O L O G Y R E F I N E M E N T S

State of-the-art heat recovery and utility system

B Technology

19 September 2019 | 17

1) Revenue is based on HVO market price of USD 1 370 / MT S K I V E E C O N O M I C S

Quantafuel Skive with 15.1 MUSD rev and 8.9 MUSD EBITDA with 60 MT and 45 MUSD and 29 MUSD with 180 MT in 2021

2021 economics with 60 MT first plant 2021 economics with 180 MT capacity

15.1 1.2 1.5 2.5 1.0 8.9 45.2 3.6 3.0 5.7 4.2 28.7 Revenues Direct expenses Personnel Other OPEX Service fee Quantafuel AS EBITDA Revenues Direct expenses Personnel Other OPEX Service fee Quantafuel AS EBITDA

MUSD

EBITDA: 59% EBITDA: 63% 1) 1)

19 September 2019 | 18

S T R A T E G I C P A R T N E R S H I P A G R E E M E N T S I G N E D

Started preparation for two large scale projects – goal of 5

1) ARA is the abbreviation for the ports of Amsterdam, Rotterdam and Antwerp

Antwerpen erpen Bayern

• Aligned to start preparation for two

large sites

• Antwerpen and Bayern
• 100.000 ton + capacity per location
• Pre-engineering, site allocation,

permitting, feed-stock supply, location, budgets

• 50/50 JV structure Vitol – QF
• 2 X 100 MUSD investment
• 150 MUSD revenue – 100 MUSD EBITDA

potential

• FID right after Skive
• Pre-project financed by Vitol

19 September 2019 | 19

Quantafuel planning to roll-out plants building high-profitability, recurring revenue

2 150 21 500 58 000 110 000 2018 2019 2020 2021 2022 2023 2024 2025

Buildin ilding recu currin ing g reven enue e throu

• ugh grow
• wth

th in plan ant-por portf tfol

• lio

io

Skiv ive e I

20,000 tonnes es plastic waste

Skiv ive e II

60,000 tonnes es

ARA

100,000 100,000 to tonnes

>100 00 MUS USD D in

fuel sales in 2022

19 September 2019 | 20

▪European petrochemical capacity ▪Fastest growing petroleum-based consumer good ▪ EU’s increasing recycling target ▪Chemical vs Mechanical recycling

Future growth in naphtha

25 millon tons 11 billon USD

10 – 55%

High versus low quality

19 September 2019 | 21

T E C H N O L O G Y R E F I N E M E N T S

Changes in catalyst solution to produce naphtha

B Technology

19 September 2019 | 22

Concentration

(approximate distribution)

Chain length

(in # of carbon atoms)

C1 C5 C10 C15 C20 C25

Naphtha Diesel

Natural gas

Heavy fraction

Main focus

(~18 %) ( ~67 %) ( ~6 %) ( ~9 %)

19 September 2019 | 23

O W N T H E V A L U E C R E A T I O N

Quantafuel’s business model is to build, own and operate PtL plants, each established as a separate SPV

Service fee

Local partner

• Invest capital
• Local competence
• Potentially contribute with feedstock

Plant owning SPV

• Quantafuel ownership >50 %
• Plant construction and operations
• Plant financing
• Secure feedstock and fuel sales
• Plant technology and design
• Plant planning, construction and

commissioning

• Operational support

2 Plant price 1 Dividend 3

To the beginning of a partnership