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St1 a new actor on

biofuels in Sweden and Finland

LU BIOFUELS Day May 29, 2015

Linda Werner Technical Manager

Agenda:

St1 Group

Reality check

Way forward

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Company Vision

To be the leading producer and seller

of CO2-aware energy

St1 Group Founded in 1995 to operate in oilproduct wholesale business

• 2000 St1 Service Station chain (est. 1997) part of the company in Finland

• 2006 St1 Biofuels Oy subsidiary of St1 Nordic Oy

• 2007 ExxonMobil Finnish Affiliate, Esso Oy, acquired

• 2009 Norsk Hydro Olje AB (Sweden) and Statoil AutomatAS (Norway) acquired

• 2010 St1 Energy Oy (Shell Oy), St1 Energy AB (Svenska Shell AB) and St1 Refinery AB (Shell Raffinaderi AB)

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Business areas:

• Producing and selling of CO2-aware energy

• Petroleum retailing at St1 and Shell site network

• Oil refining

• Biofuels production

Associated companies:

• North European Oil Trade Oy (NEOT Oy) / S-Group

• TuuliWatti Oy/S-Voima Oy

• St1 Avifuels Oy/StatoilHydro ASA

St1 Map

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St1 Refinery, Gothenburg

Production in Sweden: St1 Refinery AB

• The “Koppartrans” refinery was built in 1947, start up 1949

• Taken over completely by Shell 1964

• Shell’s business in Sweden and Finland (except Aviation and LPG) acquired by St1 in December 2010

Capacity covers approx. 25% of the Swedish demand for oil products.• Operates supply and depots

• ~200 refinery employees + 28 in terminal operations

• Integrated Ethanol production starts 2015, Q2

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Bioproduction in Finland: St1 Biofuels Oy

“Turns waste into sustainable biofuels”

• St1 Biofuels Oy was established in 2006.

• Pioneered in waste-based bioethanol production

with several plants built.

• The expertise of St1 Biofuels:biochemical processes, technology development,

engineering, turn key project deliveries

• ~140 employees

St1 operates the

overall supply chain

for transport fuels

including production, distribution

and retail network

to the end consumer.

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Our goal is to:

• Develop and commercialize functional and environmentallysustainable energy solutions

• Deliver these solutions profitably

Each energy solution must be:

• Technically ready for use today• Ecologically and ethically sustainable• Logistically feasible

Reality check; examples from St1

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Fuel production developments…

<2015

Refining processes

Bioimports

Etanolix units

Today

Refining processes

Bioimports

Etanolix units

Etanolix 2.0

Cellunolix

Future

Refining processes

Bioimports

Technology shift

Etanolix units

Etanolix 2.0

Cellunolix

++++

<2015

Refinery

• 5 Mm3 of crude intake per annum

• Biocomponent imports since 2003

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Capacity5 – 10 million liters/year/unit

CO2 savingsUp to 90 %

Lahti Etanolix®Jokioinen Etanolix®

<2015 - 4 Etanolix® plants in Finland

Vantaa Etanolix®

Feedstock

Food industry

process waste

and residues

Hamina Etanolix®

Absolutation of ethanol• Ethanol produced in Etanolix is centrally dehydrated in our

Hamina absolutation plant.

• Annual capacity 88 Mio liters of 99,8% ethanol

St1 has been building a network of ethanol plants across Finland since 2007 with the goal to produce around 300,000 m3 of ethanol for traffic fuel use from waste and side streams by 2020.

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Production capacity• Ethanol (as per 100% EtOH) 5.000 m3/a

Feedstock

• Industrial bakery waste & industrial process residue

• Out dated waste bread from shops and markets

• Approx. 20.000 t/a feedstock is required

Products

• Anhydrous fuel grade ethanol • Liquid animal feed for farms / feed for

biogas plant (AD)

Etanolix® 2.0 – ethanol plant integration to the Refinery

Etanolix 2.0 LIFE+ project•New raw material handling; receiving station•Unique way of integrating the ethanol plant in a conventional refinery•Production starts Q2 2015

Etanolix 2.0 - full integration with Refinery systems

RefineryEthanol

Ethanol direct to refinery blending tanksDeliveries by ordinary transport-solutions

Brackish water for cooling connection to refinery cooling-system.

Heat from refinery steam system

City-water

Instrument Air

Nitrogen for safety-inerting

Process sewer water treated in refinery water processing unit

Good storagecapabilitiesSafety systems

Controlled from local control-room

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Cellunolix® - sawmill side products

Feedstock characteristics• Non-food ligno-cellulosic material• High ethanol yield• Stable quality• Cost depending on local usage

Sources• Wood industry

Collection systems• Integrated to saw mill• Direct transportation from saw mills

Cellunolix® PlantFeedstock: Saw dust and chipsProduct: Renewable Ethanol

Capacity: 10-100 million liters/year/unitCO2 savings: Up to 90 %Co-product: - Lignin based solid fuels

- CO2

Units: 1st unit in Finland under construction – operation 2016

Kajaani Cellunolix®

Cellunolix® - from saw dust to biofuel

Pre‐treatment Hydrolysis FermentationDistillation & Dehydration Ethanol

Waste water• Process waste water

Other products• Lignin• Syrup• Turpentine• Furfural• Co2….

Energy & utilities• Steam• Electricity• Process water• Cooling water

Chemicals• Enzymes• Yeast• …..

Saw dust/chip Ethanol 100%

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Investment of EUR 40 million, of which 30% is coveredby an investment subsidy granted by the Ministry of Employmentand the Economy for biorefineries producing transport biofuels.

When completed, the Cellunolix® plant willemploy 15–20 people directly and about 15 peopleindirectly. During product development, planning and construction, the project will generate about200 person-years of employment.

”Technology shift” in refineries

Technologydevelopment;

‐co‐processing

‐new technologies

Plant integration 

withbiounit

Traditionalrefinery

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Future vision

Local production offeedstocks at e.g.

forest industryinstallations

Way forward; how to profitably meet a ”renewable future” ?

$

Time

Renewables, Bio Fossil

Subsidies?Tax breaks?

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Way forward

If handled correctly, the sustainabilityissue will become a growth engine toconduct the business forward !!

Thanks for Your attention!