PROJECT SUMMARY
53,000 BPD Gas-TO-LIQUIDS FACILITY WELLSVILLE, OHIO December 2011
Baard Energy, L.L.C. ● 201 South Main Street ● Suite 1400 ● Salt Lake City, UT 84111
A. The Company
Baard Energy, L.L.C. (Baard), through Ohio River Clean Fuels, L.L.C. (ORCF or the Company), has developed a 53,000 barrel per day gasl-to-liquids "GTL" facility at Wellsville, Ohio (the Project). Baard and its affiliated companies has over 20 years of experience in the design, development and construction of a variety of energy projects, including natural gas powered electric generating facilities, ethanol production plants, biodiesel production plants, and gas to liquids projects. Baard is a private project development company based in Salt Lake City, Utah.
B. The Project
Recent sustained high energy prices coupled with increased concern about energy security has led to a focus on the development of domestically sourced fuel supplies, especially those that have desirable emissions profiles. With the largest shale natural gas reserves in the world, the U.S. is particularly well-positioned for the development of gas-to-liquids projects for the production of Fischer-Tropsch (FT) or methanol-to-gasoline fuel.
The Company intends to develop and construct the Project in three phases a first phase that consists of a 17,500 bpd CTL plant, followed by a second and third phases to expand the aggregate capacity to 53,000 bpd. Each phase will involve a production train that consists of two steam reformers feeding into one FT reactor. One refining process will be constructed during the first phase and will have sufficient capacity to handle the output from all three trains. The Project has partnered with the Columbiana County Port Authority (CCPA) to secure a 650 acre site adjacent to the Ohio River. The site has easy barge access, rail access through the Norfolk Southern main lines and proximity to abundant eastern bituminous coal reserves. The Project will use natural gas to produce fuels including ultra low sulfur FT diesel, jet fuel and naphtha, all with a lower emissions profile than traditional petroleum based products. The Project is located in Wellsville, OH, near the border of West Virginia, Pennsylvania, and Ohio. This location is the heart of the coal corridor in the Midwest United States. These three states have huge new discoveries of natural gas.
Below is a basic overview of the inputs and outputs of the Project both for phase I and fully developed.
C. Project Highlights
Favorable Industry Dynamics. Sustained high energy prices and concerns about energy security have spurred the growth prospects of domestic sources of alternative energy, including GTL projects. The abundance of low cost natural gas coupled with high oil prices makes GTL projects economically attractive.
Government Support for FT Fuel. The Department of Defense (DOD) has proclaimed its preference for FT fuels and has a test program on its usage in its aircrafts under way. FT fuels produced by the Project would fulfill the DODs desire for domestically-sourced, high quality fuel.
Superior Product and Process. FT and MTG fuels have superior emission profiles to traditional petroleum products and the production process can be adjusted to maximize the production of a particular type of fuel diesel, jet fuel, naphtha or gasoline depending on relative market prices and contractual commitments. The FT process has been deployed for decades in South Africa, Germany and other places and is technologically proven.
Strategic Location. The site is adjacent to significant reserves of Ohio, West Virginia and Pennsylvania natural gas feedstock. Ready access to the largest river port in Ohio as well as the Norfolk Southern main lines will facilitate transportation of products.
Carbon Sequestration Capability. The Project is strategically located so that the carbon dioxide produced can be readily piped to nearby oil fields for injection for enhanced oil recovery. As a result, the Project has a desirable greenhouse gas emissions profile relative to other CTL projects without such capability. In addition, carbon sequestration, when combined with biomass use, makes the process less carbon-intensive than traditional diesel production.
Robust Commercial Framework. The Project expects to enter into long-term natural gas feedstock supply as well as product off take agreements. The Project also expects to enter into an EPC contract with a consortium of leading engineering and construction companies with terms that could facilitate project financing.
Strong Local Support. The State of Ohio has provided financial and infrastructure support for the Project in the form of access to project debt and assistance with the acquisition of the Wellsville Ohio site.
Experienced Developer. Baard has developed and constructed seven alternative energy projects over the past 20 years. Baard developed an 88 million gallon per year Ethanol plant in Ravenna, Nebraska and a 55 million gallon per year Ethanol plant in Coshocton, Ohio. Baard successfully developed over 1,200 MW of electrical generation at four separate facilities in the last twenty years and built a retail electric marketing business in Michigan, Illinois, and Texas.
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