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Changes in Syngas Markets

Bruce Kleppe 2 November 2011
Ammonia markets weathered the economic crisis
better than most other chemicals
2010 Global Ammonia Consumption
155 million tons
Ammonia
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From 1900 to 2000, worldwide food production grew 600%
enabling the worlds population to grow from 1.7 billion to 6.7
billion in the same time period.
Fertilizers boost the yields and nutritional content of food and
conserves land and resources.
Our population continues to grow at a rate of 80 million people
each year, while arable land resources are shrinking.
The Driving Force Behind Ammonia Production
Ammonia
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each year, while arable land resources are shrinking.
The FAO estimates that the total world demand for agricultural
products will be 60% higher in 2030 than it is today, with 85% of
that demand coming from developing countries.
Fertilizers are responsible for 40-60% of the worlds food supply.
Currently, 862 million people in the world are undernourished.
Without fertilizers, 2 billion more people would be threatened by
hunger.
Ammonia
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Source: Fertecon Ammonia Futures
Ammonia
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Source: Fertecon Ammonia Futures
Ammonia
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Source: Fertecon Ammonia Futures
Ammonia
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Source: Fertecon Ammonia Futures
15,000,000
20,000,000
25,000,000
30,000,000
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Worldwide Capacity Change
(including projects in China)
Is Methanol really getting more important for the economy?
Methanol
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-5,000,000
0
5,000,000
10,000,000
Dec/ 99 Apr/ 01 Sep/ 02 Jan/ 04 May/ 05 Oct/ 06 Feb/ 08 Jul/ 09 Nov/ 10
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Methanol capacity is constantly adding up! Especially in Asia
Methanol
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Why is Methanol getting so important for the economy?
Methanol
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Courtesy of MMSA
Europe
2005 2010
150 50/10
Sulfur ,
max
ppm
2020
Free
Evolution of Gasoline Quality
Fuels
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USA
Brasil
Phase-in
Free
1000 50
80/30
10
Sulfur:
mx. ppm
Evolution of Diesel Quality
Europe
USA
2005 2010
50
10
2020
Free
Free
Fuels
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USA
15/500 15
Brasil
High S
3500 500 50
Free
2000
2000 50 10 500
Brasil
Low S
Location of proven gas reserves
Fuels
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NG Markets (pre Shale Gas)
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World Shale Gas Reserves
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China
Mexico
Shale Gas Resources
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Argentina
~12%
China
19%
Mexico
10%
NG Markets (post Shale Gas)
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Premium Coal vs Crude Oil
Price Comparison through Sep-11
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Oil / NG Price Ratio
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Sd-Chemie: developing future-oriented products for more than 150 years
Founding of BAG (now Sd-Chemi e AG) in
Heufeld; founding shareholder: Justus von Liebig
Bleaching earth and
bentonite products
1857:
1906:
1857 1890 1930 1970 2010
Catalysts
Fertiliser
Bleaching earth/bentonite
It started with Fertilisers.
Sd-Chemie Catalysts
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Entry into pharmaceutical protection packaging
and water treatment business
1962: Start of catalyst business
Manufacturer of Cleantech products:
Biocatalysts
Exhaust gas purification catalysts
Lithium ion battery materials
CTL/GTL catalysts
1970: Production of foundry chemicals based
on bentonite
Catalysts
Foundry chemicals
1996:
towards becoming the Global Powerhouse
of the Catalyst Industry
Sd-Chemie Catalysts
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Syngas Catalysts
> 65 years of Experience
1940s - 1st US syngas catalysts
1950s - 1st Methanation Catalyst
1960s - 1st Low Temperature Shift
1st US produced NH
3
Synthesis Catalyst
1st Ceramic supported reformer catalyst
1970s - 1st Shaped multi-passage reforming catalyst
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1970s - 1st Shaped multi-passage reforming catalyst
(C11-9-09 Wagon Wheel)
1st High activity, low volume secondary loading
1980s - 1st Copper-promoted HTS Catalyst
1990s - LDP Shape high GSA, low P
2000s - New Generation LTS ShiftMax 230/240
New Generation NH3 Synthesis - AmoMax
New ReforMax 340 shape
A truly global company with more than 70
production and sales companies worldwide
Heufeld
Jinshan
Panjin
Sd-Chemie Catalysts
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Global presence within the Catalysts Division:
19 Production Sites, 5 Sales & Tech. Centers,
9 R&D Centers, 22 Sales Offices
Nanjing
Louisville
Qatar