Periodic Reporting for period 2 - Hydrofaction (Resource and Cost Effective Conversion of Biomass to HydrocarbonTM Oil) Reporting period: 2016-04-01 to 2017-03-31 Summary of the context and overall objectives of the project The Hydrofaction Project is focused on the commercialization of Hydrofaction™, Steeper Energy’s proprietary hydrothermal liquefaction technology. Hydrofaction™ is an advanced biofuels technology which transforms biomass, such as forestry residues, into biocrude oil which can be easily upgraded into transportation fuels such as diesel and jet fuel.Hydrofaction™ offers the opportunity to produce as much as 1,5 million barrels-per-day of transportation fuels based on estimates EUBIA of forestry and agricultural residues in the EU. The fuel produced will lower the carbon footprint of transportation in the EU while reducing EU reliance on imported fossil and/or renewable oils and fuels.The Project supports the commercialization of Hydrofaction™ through: scaling up of the technology; attracting commercial partners/licensees into Steeper Energy; identification of future commercial activities; and, preparing Steeper Energy for additional investments into the company. Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far The Horizon H2020 SME Instrument has provided broad support to Steeper Energy in its commercialization activities of Hydrofaction™. Through the course of the H2020 Project, Steeper Energy has secured a strategic partner for its Industrial Scale Demonstration and De-risking Plant (ISDDP) as well as the first commercial Hydrofaction™ facility, completed a conceptual engineering study of the ISDDP, refined its strategy to bring Hydrofaction™ Oil to the market, undertaken R&D on the hydrotreating of Hydrofaction™ and developed/secured additional intellectual property in the form of patents.Steeper Energy has entered into a Head of Terms, with final negotiations on a binding agreement underway, with one of Europe’s largest renewable energy companies for the co-funding and development of an ISDDP and the funding of the first commercial Hydrofaction™ facility. A conceptual engineering study has been undertaken on the ISDDP and a basic engineering study is nearing completion. Steeper Energy has also supported the strategic partner in completing a conceptual study on a commercial Hydrofaction™ facility which influenced their decision to engage as a strategic partner.Marketing and dissemination activities carried out over the course of the Project changed Steeper Energy’s market focus away from Hydrofaction™ Oil synthetic biocrude to upgraded Hydrofaction™ Oil as blendstocks transportation fuels. This market pivot was supported through research and development activities on the upgrading of Hydrofaction™ Oil into drop-in transportation fuels. Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far) The delivery of significant volumes of renewable transportation fuels into the European market has taken a large step forward with the support of Horizon 2020. This has been realized through the following accomplishments:• The state of the art of Hydrofaction™ has progressed through the execution of multiple engineering studies on the ISDDP and commercial facilities. These efforts have guided and verified the commercial realization of Hydrofaction™ through engagement with third-party engineering firms and potential suppliers.• The commercial path to market of Hydrofaction™ Oil has been adjusted to ensure broad appeal with research and development undertaken in support of this adjustment.• Securing a strong strategic partner for the commercialization of Hydrofaction™ to support and provide credibility to ongoing efforts. Hydrofaction™ Upgrading Produced Hydrofaction™ Oil Upgraded Hydrofaction™ Oil Hydrofaction™ Pilot Plant Upgraded Hydrofaction™ Oil Fractions Distilled Hydrofaction™ Oil Hydrofaction™ Oil Hydrofaction™ Pilot Plant Utilities
