Steve Arbogast is a professor of the practice of finance and Director of the Kenan-Flagler Energy Center. He is also the Principal Owner and Director of AOTA Energy Consultants in Houston, Texas. His ExxonMobil career spanned 32 years and included various senior finance management positions. Over the course of his career, he has led or participated in more than $4 B in capital market and project financing. From 1997 to 2004, he served as Treasurer of Exxon Chemical and ExxonMobil Chemical Co. Mr. Arbogast has taught in graduate MBA programs at Fordham University, Rice University and the University of Houston, focusing on international finance, project finance and business ethics, since 1987. In addition, he has served as a member of the National Renewable Energy Laboratory Biofuels Technical Review Panel since 2008. He holds a BA degree in political science and government from Cornell University, an MPA degree from Princeton University and an MTh degree from the University of St. Thomas in Texas.
In Part 1 of this article, economic incentives were estimated for relaxing the requirement that biocrude entering the refinery infrastructure be oxygen (O2)-free. It was concluded that an accurate estimate of these incentives is not possible without a significant amount of additional data. Part 2 examines key issues that must be addressed and the associated data needed for this constraint to be relaxed.
In Part 1 of this article, the incentives and information needed to relax the constraints of being O2-free are outlined. The authors hope that this perspective provides new directions for improving the economics of using pyoil to produce advanced biofuels (ABFs).