Sustainable Aviation Fuels:
Research, Developments
and Deployment

Jim Rekoske
October 18, 2012
Tokyo, Japan© 2012 UOP LLC, a Honeywell Company

Presentation Agenda• Honeywell’s Participation in Sustainable Aviation• Overview of Sustainable Aviation Fuel Pathways- Technology Types- Trade-offs for Technology Types• Certification Processes• Commercial Outlook- Current Status- Adoption Barriers- Expectations for the Future2© 2012 UOP LLC, a Honeywell Company

Honeywell International• $36 billion (2011) in revenues, 50% outside of U.S.
• Nearly 130,000 employees operating in 100 countries• Morristown, NJ global corporate headquarters

Aerospace

Automation &Control Solutions

SpecialtyMaterials

Transportation
Systems$10.8-11.2B*$14.7-15.1B*$5.0-5.2B*$4.3-4.5B**‘11 revenues estimate
3© 2012 UOP LLC, a Honeywell Company

UOP LLC, A Honeywell Company
 Founded in 1914
 A leading international supplier and licensor of processing technology, catalysts,adsorbents, process plants, and technical services.
 Largest process licensing organization in the world.
 31 out of 36 refining technologies in use today were developed by UOPMarkets• Petroleum refining• Petrochemical production• Gas processing• Renewable fuels and chemicals

Products/Services• Developing and licensing ofprocess technology• Equipment• Catalysts• Adsorbents• Molecular sieves

We’ve Known Hydrocarbon Fuels for 100 Years!

4© 2012 UOP LLC, a Honeywell Company

Honeywell’s UOP:A Global Presence for Sustainable Fuels
Sustainable Aviation
Fuels Northwest (SAFN)(US/Pacific Northwest)

SWAFEA - Sustainable
Way for Alternative Fueland Energy in Aviation

Midwest Aviation
Sustainable Biofuels
Initiative (MASBI)
AirRegAdvanced Biofuels
Association(ABFA)
Algae Biomass
Organization (ABO)
Ohio Biomass
CollaborativePlan de Vuelo hacia
los Biocombustibles Sustentables
de Aviación en México

Global Initiatives

National Advanced
Bioenergy Consortium(NABC)
National Alliance forAdvance Biofuels andBioproducts (NAABB)

China Biofuels
Initiative

Masdar InstituteSustainable
Biofuels ResearchConsortium

SABB: Sustainable
Aviation Biofuels Brazil

 SAFUG: Sustainable Aviation
Fuels User Group ATAG: Air Transport ActionGroup5 ICAO Sustainable Aviation
Fuel Expert Team
(Jim Rekoske member)

The world’s most recognizedexperts in sustainable fuels© 2012 UOP LLC, a Honeywell Company

SAFRM: Sustainable
Aviation Fuels
Road MapSelected Demonstration Activities

30 January 2009

Feedstock: Camelina, Jatropha and Algal Oil

On Friday, June 17 2011, Honeywell Green Jet Fuelcompleted the first-ever transatlantic biofuel flight
The Honeywell-operated Gulfstream G 450 aircraft departed
Morristown, NJ to fly to Paris, France on a 50/50 blend of HoneywellGreen Jet Fuel made from camelina and petroleum-based fuel.
6© 2012 UOP LLC, a Honeywell Company

Driver for Our Involvement:
Global Population and Prosperity
Population Growth

Consumption Growth

Growth of Population (toward 9.0B) and Prosperity Drive Demand7© 2012 UOP LLC, a Honeywell Company

Petroleum

Treating

Hydrocracking

Fractionation

Natural Gas

Synthesis Gas /Purification

Fischer-Tropsch
Synthesis

Conversion andUpgrading

Fischer-Tropsch (FT) Fuels
Coal

Gasification
Biomass
SugarsSustainable
Resources

Alcohol to Jet (ATJ) Pathway

Fermentation

Dehydration

Oligomerization

Hydrotreating

Fractionation

Fermentation

Intermediate

Conversion

Hydrotreating

Fractionation

Direct Sugar to Hydrocarbon (DSHC) Pathway

Biomass

Pyrolysis

Hydrocracking

Fractionation

Pyrolysis to Jet (PTJ) Pathway
Waste Fats& Oils
Treating
Plant / AlgaeOils8Hydrocracking

FractionationHydrotreated Ester and Fatty Acid (HEFA)© 2012 UOP LLC, a Honeywell Company

Jet Fuel (Jet A-1, ASTM 1655)

FossilResources

Overview of Alternative Aviation Fuel Paths

Fuel Validation Process

Specification
Properties

Fit-For-Purpose
Properties

FRL 4.2

FRL 6.1

Component/Rig
Testing
FRLs 6.2 & 6.3

Engine/APU
Testing
FRL 6.4

ASTM
Review

Accept& Ballot

RejectASTM
Research
ReportRe-EvalAs Required

ASTM
Specification

ASTM
Specification

OEM Review &Approval

ASTM Balloting
Process

FRL 7: Fuel Class Listed in Int’l Fuel Specifications
Slide courtesy of Mark Rumizen, FAA/CAAFI9© 2012 UOP LLC, a Honeywell Company

Commercial Outlook – Current Status• Fischer-Tropsch based fuels available commercially today- Middle East (natural gas) and South Africa (coal)• Between military and commercial aviation, more than 1,900
missions have been completed with HEFA sustainable fuels• No commercially sustainable alternative aviation fuels available- HEFA fuels available in modest quantities in few locations- Dedicated commercial production likely in 2013 (Europe, US West Coast)- Additional commercial plants for similar products being built…
- Valero (US Gulf Coast), Emerald (US Gulf Coast), ENI (Europe)- However, these projects unlikely to produce jet fuel• Additional pathways at various stages of approval- Likely 2014 before additional pathways approved10© 2012 UOP LLC, a Honeywell Company

Commercial Outlook – Adoption Barriers• Role of Cost as Barrier- Much has been written about fuel costs – R&D scale- At commercial scale, HEFA refining costs greater by $4-5 per bbl- Cost of raw material primary barrier- Petroleum: $80-100 / bbl; Sustainable HEFA feeds: >$140 / bbl• Cost of Feedstock Driven by Supply- Sustainable feedstocks available, supply limited- Opportunities exist to expand supply without other disruptions- Market in infancy – time needed, particularly in agricultural markets

Costs at scale can be competitive with petroleum11© 2012 UOP LLC, a Honeywell Company

Commercial Outlook – Adoption Barriers (2)• Alternative products from sustainable resources
creating competition- Fine Chemicals- Commodity Chemicals- Other fuels, most notably diesel fuel• Economic considerations difficult to avoid- Fine, commodity chemicals more valuable than fuel- Consumer pull for renewable alternatives  considerable premium• Technology advances, regulatory balance, and uniquebusiness approaches needed- Without creativity, fuel will remain the low priority
Regulatory models which align values needed in short term
12

© 2012 UOP LLC, a Honeywell Company

Commercial Outlook – Toward the Future• HEFA availability and cost positions improve in 2013
through commercial unit operations- Europe, US West Coast• Studies fostered by US Government investment insustainable biofuels- Programs unlikely to complete study phase in 2013
- No expected volumes from this program in 2013
• New technologies emerge in 2013 – approval in 2014
- Pending pathways involve more abundant feedstocks- Alcohols and biomass• Airlines form partnerships to insure access

13© 2012 UOP LLC, a Honeywell Company

Concluding Observations• Sustainable aviation fuels are technically feasible- Some pathways already approved, in use- Additional pathways pending, promising• Markets and Supply Chains are immature- Economic inefficiencies from scale, coordination costs- Supply likely to be constrained in medium term
• New paradigms are required for commercial success- Methods needed to shorten value chains- Access to supply only certain if facilitation provided- Regulatory certainty, priority needed for aviation fuels

Significant progress in 6 short years!
14© 2012 UOP LLC, a Honeywell Company