TORREFIED PELLET PRODUCTION IN CANADA - … · TORREFIED PELLET PRODUCTION IN CANADA Canadian Wood...

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TORREFIED PELLET PRODUCTION IN CANADA Canadian Wood Pellet Industry Seminar - Networking reception - May 15, 2017

Transcript of TORREFIED PELLET PRODUCTION IN CANADA - … · TORREFIED PELLET PRODUCTION IN CANADA Canadian Wood...

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TORREFIED PELLET PRODUCTIONIN CANADA

CanadianWoodPelletIndustry Seminar - Networkingreception - May15,2017

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AIREX ENERGY AT A GLANCE

• Airex Energy develops, manufactures and markets torrefaction systems.

• The company is a spin-off of Airex Industries:– A private company founded in 1975;– Manufacturer of industrial air filtration and handling equipment;– Started R&D activities on torrefaction technology in 2010 and invested more

than $2M prior to spin-off.

• Airex Energy completed an A round of financing in March 2014 by securing more than $10 million in the form of equity, grants and loans for the construction of a demonstration plant in Bécancour, Québec.

• Since December 2015, Airex Energy has operated the first commercial-scalebiocoal plant in Canada.

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AIREX ENERGY LEADING VENTURE CAPITAL INVESTORSARE A TESTAMENT TO THE COMPANY’S POTENTIAL

• With assets under management of $230 million, Cycle Capital is a pioneer among Canadian venture capital funds focused on the clean-tech sector.

• Cycle Capital, based in Montreal with an office in Toronto and presence in New York and Seattle, regroups seasoned investment professionals, strategic advisors and industrial partners with in-depth knowledge of the sector.

• Desjardins-Innovatech is the venture capital arm of Capital RégionalCoopératif Desjardins, a private equity fund with assets under management of $1.6 billion, and part of the Desjardins Group, the largest cooperative financial group in Canada.

• Desjardins-Innovatech provides companies with capital, a business network and the expertise needed to support them throughout their growth and expansion as well as in mergers, acquisitions and IPO projects

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Black pellets, biocoalpellets, torrefied pellets ?

Thermally treated biomasseither bytorrefaction processor steam explosionprocess

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AIREX ENERGY HAS SUCCESSFULLY DEVELOPED A PROPRIETARY CARBONFX PROCESS FOR BIOMASS TORREFACTION

• Torrefaction, a mild form of pyrolysis, refers to the heat-treatment of biomass at 250~320°C in an inert atmosphere (no oxygen).

• The process removes moisture and volatile organic compounds (VOCs) from raw biomass.

• The final product, known as torrefied biomass or biocoal, contains 70% of the mass and 90% of the energy content of the pre-treated material.

GMT:GreenMetric Ton/BDT:Bone DryTon

TORREFACTIONSAW DUST50% RH

BIOCOALPELLETS

WEIGHT1 GMT

ENERGY DENSITY6.5 GJ/tonne3 GJ/m3

WEIGHT0.4 BDT

ENERGY DENSITY23 GJ/tonne15 GJ/m3

WATER0.5 BDT

PROCESS0.1 BDT

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TORREFACTION PROCESS HAS SEVERAL ADVANTAGES OVER STEAM EXPLOSION PROCESS

Plantcapitalandoperational cost :Nosteam boilerNopressurevesselsNowaste watertreatment system

Torrefied pellets:Higher energydensityEasier togrindNoodor

Industry :Several players developing torrefactiontechnologiesandbiocoal plants

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IBTCFullMembers

IBTCDeveloping andAssociatedMembers

CAWES

TORREFACTION INDUSTRYTRADE ASSOCIATION

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TORREFACTION INDUSTRYQUALITY - STANDARDISATION

ISO17225Solidbiofuels-Fuelspecificationsandclasses

ISOTS17225- 8:Part8:Graded thermallytreated and densifiedbiomassfuels

DifferentClassesWood-NonWoody;NCV,Durability,BulkDensity,VolatileMatteretc.

Parametersyettobedefined:GrindabilityWaterresistanceEnergybalance

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Torr-gasHandlingandUtilisation doneContinuoustorrefaction done

Predictabilityandconsistencyofproduct formanyrawmaterialsDensification mostlydone

Feedstockflexibility donePlantSafety done

Indoorstorage doneOutdoorstorage inoptimisation

Standardisationofproduct ISOTSSafetyalongsupplychain inprogress

TradeRegistrationsandPermissions inprogressCo-firingtrials doneinEU

Co-firingburntests severaldoneCo-firingfullscale mostlyopen

Heatapplicationtrials inprogressFurtherindustrialapplicationstrials inprogress

MW032017

TORREFACTION INDUSTRYIMPLEMENTATION INDICATOR

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CARBONFX, A UNIQUE TECHNOLOGY THAT IS SIMPLE, RELIABLE AND HIGHLY ENERGY EFFICIENT

The CarbonFX torrefaction process consists of the pre-drying system, the conditioning chamber, the combustion chamber and the cyclonic bed reactors

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THE BECANCOUR BIOCOAL PLANT IS STRATEGICALLY LOCATED FOR THE EFFICIENT MOVEMENT OF GOODS BY ROAD, RAIL OR SEA

• Located in a large industrial park

• Near major highways

• Easy access to deepwater ports and rail

• Large pool of biomass feedstocks

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THE CARBONFX TECHNOLOGY PROVIDES MANY ADVANTAGES TO BIOCOAL PLANT OPERATORS

SMALLEST FOOTPRINT OF THE INDUSTRYBiomass particle residence time inside the reactors is 3 seconds compared to 30 minutes for competing torrefaction technologies.

HIGH ENERGY EFFICIENCYResidual heat from the process is used to pre-dry the biomass in an integrated system

EASY TRANSPORTATION AND ASSEMBLYModular design allows components to be shipped to site by either rail or train in standard containers with final assembly on site.

COST COMPETITIVECarbonFX system doesn’t require pressure vessel, biomass boiler, drum dryer, thermal oil heat exchanger or water treatment systems. No technology/royalty fees on equipment or biocoal produced. Use very low cost sawdust as feedstock (vs. woodchips).

SCALABLE SYSTEMProven multi-cyclonic reactor design

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BIOCOALFX IS PRODUCED IN ACCORDANCE TO ISO TECHNICAL SPECIFICATION ISO-TS 17225-8-GRADED THERMALLY TREATED BIOMASS

PROPERTY UNIT TW2H

Origin and source 1.2 By-products and residues from woodprocessing industry

1.3.1 Chemically untreated used wood

Diameter (D) ; Length (L) mm D06, 6 ± 1 ; 3,15 < L < 40

Moisture (M) w-% as received wet basis M08 < 8

Ash (A) w-% dry A1.2 < 1,2

Mechanical durability (DU) w-% as received DU96.0 > 96,0

Net calorific value (Qd) MJ/kg dry basis Qd ≥ 21,0

Bulk density (BD) kg/m3 as received BD650 > 650

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UP TO 15,000 MT PER YEAR OF BIOCOALFX PELLETS CAN BE PRODUCED FOR CO-FIRING TEST BURNS AT COAL-FIRED POWER PLANTS

• Airex Energy obtained a contract to supply Portland General Electric’s (PGE) Boardman coal-fired power plant in Portland, Oregon

– The 100% torrefied biomass 12 hours test burn required 5,000 tons of biocoal pellets;

– 4 of plant´s 8 pulverizers were fed;– The customer specifically requested biocoal pellets

be produced using torrefaction technology (vs. steam explosion) for enhanced grindability.

Overall the test was extremely succesfull.

Excellent burn and flame quality were obtained.

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We arelooking forpartners todeploy our technology inSoutheast Asia

We can supply biocoal pelletstoUtilitiesfortest-burns

Ourcustomers arelooking forbiocoal pelletsoff-takeagreements

We areraising aSeries Bfinancial roundinthefall of2017andwe arelooking forstrategic investors tojoin thecurrent investor group1

HOW CAN WE COLLABORATE ?

Ourbusinessmodel:we sell torrefaction equipment andturn-key projects tofiber owners andproject developers

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[email protected]

OFFICE2500 Bernard-LefebvreLaval, QC Canada H7C 0A5

BECANCOUR PLANT4170 Boulevard LapradeBécancour, QC Canada G9H 3W9

THE FUTURE OF BLACKENERGY IS GREENER THAN EVER