Opportunities and Challenges resulting from an increased demand for storage

1. Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 2nd Annual Global Tank Storage Summit Opportunities and Challenges resulting from an increased demand for storage with focus on biofuels Peter van der Gaag www.hollandinnovationteam.nl

2. Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 Contents View on present tank storage What can be improved? Underground storage – in ground storage Combinations – solar panels and heating Combination – electricity with wind for pumps Looking at bio fuels and vegetable oils, biodiesel Bio-ethanol (multiple) storage and dehydration Bio-LNG a new market for tanks and storage Case study Zwijndrecht: bio-LNG terminal Conclusions and recommendations

3. View on present tank storage Storages in large ports are mostly: Very conservative No/few innovations Large, larger, largest Space seems to be of no importance: cheap rent/soil Stand-alone storage terminals No combinations with other uses Business as usual 3 Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012

4. Where are windmills and solar panels? (and trees…) 4 Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012

5. Where are the crops and algae basins? (and trees…) 5 Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012

6. Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 Where space is expensive, look underground! Many countries look at underground storage of chemicals, propane, crude oil, gas (UGS). E.g. 1 billion barrels of oil will be stored underground in USA. Singapore will save 1.000.000 m2 with underground oil storage (figure) http://www.jtc.gov.sg/Publications/Newsletter/Periscope/Periscope_2008_04/focus/article02.htm

7. Where space is expensive look underground! Salt dome Wilhelmshaven, Northern Germany: Oil storage – 53 caverns 15 million tons oil Storage of hydrogen proposed In German wind energy project www.nwowhv.de 7 Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012

8. Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 Where land is cheap you can look at synergy Use in-ground tanks in combination with other activities Multiply use of tank storage terminals: Wind parks – Crops – Algae – Solar Combine businesses: Solar power for heating of the storage Electricity by wind for pumping of fluids Use idle storage time for value added processes (next)

9. Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 Biofuels industries bring new challenges Biodiesel and vegetable oils Imports and storage of palm oil, rape seed oil, olive oils and other exotics (jatropha, peanut, coconuts) Old baking oils, Glycerol Biodiesel, BTL, NexBTL, FAME, Blending and storage of B5, B10, B30 There is a demand for numerous smaller storage facilities because of the large variation in quality (composition, different specs) But also different storage temperatures

10. Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 Use idle storage time for processing!! Instead of ten different bio-ethanol tanks, take one large tank for mixed bio-ethanol grades with varying water content, then use gravity to dehydrate this blend, and the second tank to store dehydrated bio-ethanol Options are membrane, pervaporation, molecular sieve, or another solution: Holland Innovation Team acquired a patent for a cheap solution to dehydrate liquids such as bio-ethanol (13-12-2011) Ready for discussion with storage companies

11. Underground storage of bio-ethanol? • From: http://gillesenergies.webs.com/dehydration.htm • Ethanol Dehydration Using Rock Salt • Water dissolves in rock salt, Ethanol does not. • Water can be removed by circulating the Ethanol / Water through dry salt. Rocksalt, such as used in water softeners is readily available, and low in cost. The rocksalt can be dried and used many times. • So, wouldn’t it be possible • to store bio-ethanol in salt domes? 13 Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012

12. Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 A new bio fuel: What is bio-LNG (LBG, LBM)? Bio-LNG is liquid bio-methane. (LBM) Bio-LNG is produced from biogas. Biogas is produced by anaerobic digestion. It is upgraded to bio-methane and than liquefied at -162 Celsius. All organic waste can rot and can produce biogas, the bacteria do the work. Therefore biogas is the cheapest and cleanest bio fuel without competition with food or land use. Quality is always better than quality of fossil LNG, i.e. bio-LNG is premium and should be stored carefully at -162 Celsius. 14

13. The advantages of bio-LNG Bio-LNG is of better quality than fossil LNG. This is the first time that a bio fuel is better than its fossil counterpart While bio-LNG can be used without blending, it can also be used to improve the quality of fossil LNG Bio-LNG can replace 20% of our fossil transportation fuels by 2020 in inland navigation, heavy duty trucks and cold ironing in ports Bio-LNG can be used to produce bio-CNG for private cars with minor additional costs Bio-LNG emits negligible NOx or PM when burnt Bio-LNG has a much lower carbon footprint than other fossil fuels or bio fuels: can even be carbon negative Bio-LNG is cheapest bio fuel per energy unit Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 15

14. How much bio-LNG can be made? Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 Source:http://ecocomplex.rutgers.edu/PeterBoisen.pdf Dutch government agency forecasts that 3 billion cbm of so-called ‘green gas’ can be produced from anaerobic digestion (NL), equivalent >> 2 million tons of bio-LNG. 16

15. CO2 Emission well to wheel by Air-LNG Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 17

16. Bio-LNG storage: what is important? Temperature at minus 162 Celsius Pressure low (1-4 or maximum 8 bars) Special cryogenic equipment, hoses, jetties Pre-cooling operations Safety restrictions Boil-off control Aging, weathering processes Roll-over during blending Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 18

17. But there is more BIO-LNG is premium : Boil-off at LNG storage changes composition, Bio-LNG not LNG 50.000 liter (-160 graden) Storage of 50.000 liters LNG with 8 % C2/C3. Boil-off 0,1% /day, storage empty after 10 days. 250 liters of methane lost. Boil-off 0,1%/day, after 100 days, storage half empty. 3750 liters of methane lost. Composition of remaining LNG 9,4% C2/C3. 19 Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012

18. Getting the market off the groundAchievements 2011 Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 First intermediate results in project: design/building of bio-LNG distribution vessels for short sea and inland navigation. Lead partner is VEKA Group / Bijlsma Shipyards, builder of Pioneer Knutsen. SANDFIRDENT E C H N I C S LNG Rivers Shipping Grant awarded by the “Clusterregeling” of the province of South-Holland 20

19. Inland and short sea shipping becomes "green" by Bio-LNG E-Energy Market by Erik Groen Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 “LNG (Liquefied Natural Gas) is cleaner than gasoline, diesel and fuel oil. "But it's still a fossil fuel", says Peter van der Gaag. Bio-LNG is truly "green gas". BER BV wants to build a bio-LNG plant in Delfzijl, and a bunkering bio-LNG terminal to be built in Zwijndrecht together with Nobel close to Rotterdam. "The bio-LNG must be transported between these locations and to other terminals and distribution centers," Van der Gaag. "We are creating a whole chain. This vessel is indispensable. A bio-LNG plant would produce between 40-150 tons of bio-LNG daily. Distribution can be done by bio-LNG tankers of 1100-4000 cbm.” 21

20. Latest achievements Bunkerworld News - Latest News - Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 A. Nobel & Zn Bunkerservice 22 November 2011 - 'First movers' integral in LNG bunkering future ... part of trials to acquire permit for construction of bio-LNG bunkering terminal See movie of test bunkering at YouTube: http://www.youtube.com/watch?v=kS0UzUtbVmM 22

21. (Bio)LNG bunker terminal Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 A. Nobel & Zn Bunkerservice Initial bunkering from tank trucks Then starting with 500 m3 LNG storage tank, later expanded to 2000 m3 (modular layout) The bunkering station is already heated and cooled by water of Oude Maas river (heat exchanger) Boil-off of bio-LNG will generate electricity, creating the first bunkering terminal of the post-fossil fuels era 23

22. Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012 Conclusions and recommendations Tank storage terminals can (should) become more sustainable Underground storage and new combinations save space Especially the biomass and biofuels industry poses challenges for storage Try to use new processes at terminals to add value to your products (e.g. dehydration of bio-ethanol) Change of management/operations is needed to operate bio-LNG storage terminals New types of equipment and different safety measurements will be needed Bio-LNG as additive will be used to increase fossil LNG quality, creating additional operations

23. Thank you for your attention Peter van der Gaag / Remco Hoogma/Nella Sapulette Holland Innovation Team www.hollandinnovationteam.nl www.bio-lng.info So keep thinking out of the box! 25 Crowne Plaza City Centre Hotel, Amsterdam, 11 January 2012