Transcript
Biorefineries of the FutureEnvisioned by
DOE’s Biomass ProgramCDMA Fall 2005 Meeting
New Revenues from Sustainable Industrial Biotechnology and Renewables
September 28, 2005
Cynthia Riley, P. E. Lead Systems Integrator
Outline
• Why Biomass ?• OBP Overview
– Biomass Resources – Biorefinery Deployment Pathways– Sugar Lignin Conversion Platform– Systems Analysis incl. Life Cycle Assessment– Stage Gate Approach– Deployment Barriers
• Government Policy/Initiatives– Energy Policy Act of 2005 and OBP NOPI– Other Federal Agency Collaborations
While the growing need for sustainable electric power can be met by other renewables…
Biomass is our only renewable source of carbon-based fuels and chemicals
Unique Role of Biomass
Addressing National Needs•Energy Security and diversity
•Charts on needed capacity, high utilization rates, high imports, national feed stock availability•Availability and price of imports•Presently 1.6 billion gal of ethanol produced yearly, Replacement of MTBE with ethanol will double that amount (6 million gal of bio-diesel)•9,000 MW Biobased power today with an additional 1,000 MW from the Forest and Paper Products industry
•Environmental Concerns•Waste Utilization
•Livestock and poultry waste•MSW•Biogas/methane from land fills and the availability of landfills•Direct or co-firing with bio substantial reduction in greenhouse gasses
•Near zero CO2 emissions due to closed carbon cycle
•10 –20% reduction in NOx (gasification coal co-firing poplar)
•Reduce SO2 emissions by 80-97%
•Low sulfur fuel•Complement forest management practices
•Rural Economies•If $20/ton of biomass, increased biomass use represents over $4 billion per year in new revenues for rural economies. If two thirds of the idle land were used to grow energy cropos those 35 million acres could product between 15 and 35 billion gallons of ethanol each year. •Over the past 20 years, investors have installed 730 bioenergy electric generating facilities, and 58 ethanol production plants. Investments in the residue-based industry have created 66,000 jobs and a net annual income of $2 billion.
DELIVERED COST OF FUELS/ENERGY, $$/MMBTU:(mostly AEO 2001)Electricity Mix = 19.5 Coal = 1.23 Nat Gas = 4.05 Biomass (dry) = 2.81 Ethanol = 14.42 Gasoline = 9.45Oil = 7.44
The need for bioenergy and bioproducts is driven in large part due to increased growth in electric capacity requirements, increased reliance on imported oil, and the need to boost farm income and reverse the decline in the U.S. agriculture trade surplus.
Electric Power - EIA projects that about 1300 new power plants could be needed by 2020 to provide the estimated 1060 GW of electricity generating capacity that will need to be in place by that time. There is a major shortfall that needs to be filled. Current capacity levels are 754 MW. Cumulative planned additions through 2020 are only 14.8 GW where as cumulative planned retirements are 69.4 GW. (Source: EIA/Annual Energy Outlook Table A9) The Opportunity? There are over 370 GW of unplanned capacity which will need to be filled. There are significant opportunities for biomass power technologies to fill part of this gap.
Fuels and Products - New sources of domestic fuels are needed. The U.S. is becoming increasingly reliant on both imported crude oil and imported refined petroleum products. •Domestic crude oil production is projected to decrease from nearly 6 million barrels per day currently to about 5 million barrels per day in 2020. Crude oil imports are about 8.9 million barrels per day and account for about 60% of our crude oil supplies. This is projected to increase to over 12 million barrels per day by 2020 and account for 71% of our total crude oil supplies. •The U.S. is becoming increasingly reliant on imported refined petroleum products. Imports of refined petroleum products are projected to increase 6% annually from about 1.3 million barrels per day at present to over 4 million barrels per day in 2020. Compounding the problem of dependence upon imported petroleum products, is increasingly tight petroleum refinery capacity in the U.S. Refinery utilization rates have been above 91% each year since 1993 and are projected to remain between 92% and 95% over the next 20 years. (Source: EIA/Annual Energy Outlook Table A11 and Petroleum Supply Annual Table S1) The Opportunity? Increased production of domestic biofuels can help to offset a portion of crude oil, petrochemical, motor gasoline, and blending component imports.
Agriculture - Under current farm legislation and programs, assuming no supplemental payments, net cash farm income in 2001 is projected to be its lowest since 1994 and about $4 billion below the average of the 1990s. This is due primarily to a continued rise in production expenses and a decline in government payments. The U.S. agricultural trade balance with the rest of the world increased by almost $11 billion between 1990 and 1996, then declined by $14.4 billion between 1996 and 2001. This drop in the volume of exports was compounded by a sharp decline in domestic commodity prices. These two factors have combined to severely depress net farm cash incomes since 1997. (Source: Economic Research Service, USDA)The Opportunity? Increased demand for bioenergy and bioproduct feedstocks, in addition to ethanol, biopower, and other bioenergy/bioproduct manufacturing facilities in rural American can boost rural economies and exports.
Projected US Transportation Oil Use
U.S. Vehicles per Thousand People
0
225.000
450.000
675.000
900.000
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
US Vehicles per 1000 People (2002)
Historical U.S. Vehicles Compared to Vehicles per 1000 People around the World - 2002
Vehi
cles
per
100
0 Pe
ople
0
225.000
450.000
675.000
900.000
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
n
n
u
u
nuu
China
Africa
Developing Asia
Middle East
Central & S. AmericaFormer USSR
Eastern Europe
Western Europe
Industrialized Pacific
United States
Vehi
cles
per
100
0 Pe
ople
US Oil Peak
US Oil Peak – an analogy
OBP Mission And Strategic Goals
Mission: Partner with U.S. industry to foster research and development on advanced technologies that will transform our abundant biomass resources into clean, affordable, and domestically produced biofuels, biopower, and high-value bioproducts. The results will be economic development, energy supply options, and energy security.
Strategic Goals:1) Reduce dependence on foreign petroleum.2) Create a new, domestic bioindustry.
Unlike a Dept of defense program we are not procuring a product or capability for the federal governments sole use.Instead we are trying to interest commercial industry to invest in and commercialize technologies for new and existing markets.We have a strategy for this enabling position. In this case the government need to understand the drivers for industry, understand how they make funding decisions, and present the opportunity in the language they understand. Our pathways, milestones, and decision points are based on sustainability, economics, and return on investment.
New Domestic Bioindustry
ConversionProcesses
– Trees – Grasses– Agricultural Crops– Agricultural Residues– Forest Residues– Animal Wastes– Municipal Solid Waste
PRODUCTSFuels:– Ethanol– Renewable Diesel –Renewable Gasoline– Hydrogen
Power:– Electricity– Heat (co-generation)
Chemicals– Plastics– Solvents– Chemical Intermediates– Phenolics– Adhesives– Furfural– Fatty acids– Acetic Acid– Carbon black– Paints– Dyes, Pigments, and Ink– Detergents– Etc.
Food and Feed
- Enzymatic Fermentation- Gas/liquid Fermentation- Acid Hydrolysis/Fermentation- Gasification- Pyrolysis- Combustion- Co-firing
BiomassFeedstock
Replaced corn (which is ok to) with stover and oil refinery with an ethanol plant. Biorefineries could potentially use complex processing strategies to efficiently produce a diverse and flexible mix of conventional products, fuels, electricity, heat, chemicals, and material products from multiple biomass feedstocks. DOE is working to evaluate and develop the biorefinery concept into real world models. Biorefineries in a simple form are present today in some agricultural and forest products facilities. These systems can be improved through better utilization of waste products and by applying the lessons learned from existing facilities to other comparable situations. These facilities both convert wastes to fuel material, but also upgrade fuel materials to product raw materials. These industries also produce by-products, which are commonly under-utilized or treated as waste. Finding higher value uses of these products as fuel and improving the processing efficiency of existing facilities is a primary goal of the BioInitiative.
Cargill Dow is constructing a biorefinery to produce PLA from corn stover. The facility was dedicated earlier this month (April 2002) in Blair, NE. The facility will produce more than 300 million pounds (140,000 metric tons) of PLA annually and employ up to 100 workers. The plant will requires 40,000 bushels of locally grown corn a day to meet global production demands. In 2000, Cargill Dow Polymers received $2.2 million under the BioInititative for its $4.6 million project “Bioenergy for Polylactic Acid, Ethanol, and Power”. •Development of a process technology for the fermentation of corn fiber and corn stover to lactic acid for conversion to polylactic acid (PLA); ethanol; and other products. •PLA has promising applications in food packaging; disposable products; and fibers for clothing, carpeting, and other applications. Future applications could include injection blow molded bottles, foams, emulsions, and chemical intermediaries. •The versatility and anticipated price and performance of PLA will enable it to displace a significant volume of fossil-fuel-based polymers in the future. Projections include
•Sales volume of 8 billion lbs/year by 2020 (Currently U.S. sales volume for plastics is about 70 billion lbs/year)•Reduction of 10 million tons of CO2 emissions by 2020 (due to displacement of fossil-fuel based polymers).
•Ultimately, other sugar sources, such as residues from wheat and sugar beet production, will be used by Cargill Dow technology.
SawdustWood wasteForest thinnings
Corn stoverCereal strawSugarcane bagasseAnimal waste
SwitchgrassHybrid poplarWillow
Wood and Residues
Agricultural Residues
Energy Crops
Biomass Resources and Issues•Quantity Available
•Cost –Production
–Collection and Transportation–Integrated Supply System
•Sustainability–Land, Air and Water Resources
•Quality –Composition
–Ease of Conversion
CropsCornSoybeansWheatBarleySugar Cane
Point 3 areas with 1 example of each
Waste – sawdust
Ag residues – corn stover
Dedicated crops - switchgrass
Biomass Resource Base
DOE/USDA Billion Ton
Vision Paper• Land resources of the U.S. can
sustainably supply more than 1.3 billion dry tons annually and still continue to meet food, feed, and export demands
• Realizing this potential will require R&D, policy change, stakeholder involvement
• Required changes are not unreasonable given current trends
• Should be sufficient to replace 30% of current US petroleum requirements
Forest Resource Base
Potential nearly 370 million tons/year
0
20
40
60
80
13% 5% 13% 3% 14%
19%
20%
13%
11
2216
16
8
15
28
8
11
49
9
32M
illio
n dr
y to
ns p
er y
ear
Existing useUnexploitedGrowth
Agricultural Resource Base
High crop yield increase
Land use change with perennial crops
High crop yield increase
No land use changes
0 250 500 7501000
0
0
156
377
75
75
75
75
54
95
54
56
250
409
279
425
Million dry tons per yearCrop residues Grain-ethanol Process residues/wastesPerennial crops
Potential exceeds 930 million tons/year
Biomass Conversion Options(OBP current emphasis shown)
Fuels
Chemicals
Materials
Electricity
Heat
Bio-gas
Synthesis Gas
Sugars and Lignin
Bio-Oil
Carbon-RichChains
Plant Products
Hydrolysis
Acids, enzymesGasification
High heat, low oxygen
Digestion
Bacteria
Pyrolysis
Catalysis, heat, pressure
Extraction
Mechanical, chemical
Separation
Mechanical, chemical
Feedstock production,collection, handling & preparation
Biorefinery Deployment Pathways
Grain Wet Mill
Grain Dry Mill
Oil Seeds and Crops
Pulp and Paper Mill
Forest Products Mill
Agricultural Residues
Perennial Grasses
Time
Woody Energy Crops
Pathways are tied to the resource base and existing industry market segments where possible
Lign
ocel
lulo
sic F
S
Grain Dry Mill Pathway
Grain Dry Mill Biorefinery Pathway
Lignin: 15-25% Complex network of
aromatic compounds “New clean coal” High energy content Treasure trove of
novel chemistry
Hemicellulose: 23-32% A collection of unusual 5- and
6-carbon sugars linked together in long chains Xylose is 2nd most abundant
sugar in biosphere
Cellulose: 38-50% Long chains of glucose Most abundant form of
carbon in biosphere
3 Major Components of Lignocellulosic Biomass
Hydrolysis of Carbohydrates
100 g rawsolids (dry)feedstock
27 g residuesolids (dry)
lignin coproduct
60 g pretreatedsolids (dry)
processintermediate
Pretreatment Enzymatic Hydrolysis
Not All Biomass is Created Equal
0%
25%
50%
75%
100%
poplar sawdustcorn stover (fresh)bagasse (fresh)
glucanxylanmannanarabinangalactanligninextractivesashUronic acidsacetylsoilchlorophyllprotein
Products from SugarsMajor Products in Existing Projects• Ethanol (many)• Lactic Acid (Natureworks)• 1,3 propanediol (DuPont)• Polyols ( NCGA/ADM)
Additional Building Blocks from “Top Ten” report• Succinic, fumaric, malic acids• 2, 5 furan dicarboxylic acid• 3 hydroxy propionic acid• Aspartic, glucaric, glutamic, itaconic, levulinic acids• Glycerol• Sorbitol• Xylitol, Arabinitol
Products from Lignin Intermediates
Carbohydrate Hydrolysis
Lignin Intermediates
Combustion
Gasification
Depolymerization Hydroprocessing
Recovery and Upgrading
SugarsPower,Heat
Syngas
Liquid Fuels
Lignin Products
Low Molecular Wt. Products•Simple aromatics•Quinones•Hydroxylated aromatics•Aromatic aldehydes•Aromatic acids and diacids•Aliphatic acids
High Molecular Wt. Products•Carbon fiber•Polymer fillers•Thermoset resins•Wood adhesives and preservatives
Residual solids tocombustion orgasification
Residual solids tocombustion orgasification
Pyrolysis Bio-oil/char
Estimating Competitive Advantage and Environmental Characteristics of
Technologies and Systems
Conceptual Design
Material and Energy Balances
Capital and Operating Cost Estimates
EconomicAnalysis
EnvironmentalAnalysis(Life Cycle Assessments)
R,D&D
Level of rigor depends on stage
Systems Analysis
Conceptual process engineering design and techno-economic analysis is used extensively in the Program to carry out the detailed technical and financial assessments that are integral parts of the Stage Gate process. We practice a graded approach to these assessments meaning that as the projects move along the development pathway, the assessments become more robust and hopefully, more accurate. The Program has developed a series of detailed process models and assessment tools for the main process concepts under development. These tools are used where appropriate. However, when new ideas or process concepts are being considered, these models and tools must be developed. The information below describes the level of robustness appropriate for the assessments at each gate in the process.
Normalized Costs by Area (Corn Stover to Ethanol Case)
Sustainable? Check the Life Cycle
Feedstock Production
Feedstock Transport
Feedstock Conversion
Fuel Distribution
Ethanol
Gasoline
Corn Stover Hydrolysis andFermentation
One Mile Traveled
Crude Oil Production
Crude Transport by barge, pipeline
Oil Refiningto Gasoline
Biomass Transport
LCA Energy & Climate Benefitsfor Corn Stover to Ethanol & Power
Reduce oil consumption by 95%
Reduce greenhouse gas emissions by 106%
Synergies of Integrating Technologies (Mature Technology Cases)
OBP Stage Gate Process
Includes early stage, high risk government-funded technology R&D to insure alignment with industry needs for later stage cooperative development and commercialization.
“Industry-driven
science”
1. Strategic Fit (look to OBP MYTP, EERE Plans)2. Market/Customer3. Technical Feasibility and Risks4. Competitive Advantage5. Environmental, Legal, Regulatory Compliance6. Critical Success Factors and Showstoppers 7. Plan to Proceed
Reviewers include Industry and Peers, DOE
Gate Decision Criteria: 7 Dimensions
What we have found in our implementation is that Emphasis on identifying success factors and showstoppers has enabled us to identify what is most important and prioritize our work.
Helps define interfaces of Public, Private, and Joint Public-Private research, development, demonstration and deployment activities
OBP Strategy:• Core pre-competitive research to “enable” expanded bioindustry• D, D & D through Public-Private Partnerships
What does OBP stage gate do?
Deployment Barriers
BasicR&D
Technology Development
Demonstration Permitting &Engineering
Proof of Concept Construction Operation
Com
mis
sion
ing
First Commercial Plant Mec
hani
cal c
ompl
etio
n
Atta
inm
ent o
f per
form
ance
crit
eria
Del
ays
in a
ttain
men
t of
perf
orm
ance
crit
eria
Operation
80% / 20% 50% / 50% 20% / 80% Loan Guarantee Program/Risk Mitigation Pool
Dev
elop
men
t Cos
ts
100% / 0%
Current BiorefineryProjects
Procurement
Private Cost-Share:OBP Cost-Share:Project Timeline:
Development Stages:Unexpected Cost:
Risk Mitigation:
Potential FutureDOE/OBP Deployment Efforts
(to overcome barriers)
Barrier Solution Arena
Market Risk
Off-Take Agreements – Identify and secure off-take markets for biobased technology Policy/Legislation/
Market Risk Mandates – Quotas to purchase biobased technology Policy/LegislationMarket Risk
Incentives – Financial incentives to purchase biobased technology Policy/Legislation
Core Fundamental R&D – National Labs – no cost share OBP (+ other gov’t)
Technical Risk
Applied Technology R&D Funding – 20% cost-share OBP (+ other gov’t)
Technical Risk
Integrated Bench/Pilot-Scale R&D Funding – 50% cost-share (Industry-led) OBP (+ other gov’t)Technical
RiskCommercially Viable Demonstrations – 80% cost-share of demo proving market viability OBP
Commercial Risk
Loan Guarantee Program – Finite guarantee program mitigating construction & start-up risk
Policy/LegislationDOE HQCommercial
Risk Risk Mitigation Pool – Resources to address corrective actions needed to deploy new technology in later stage of construction
Policy/LegislationDOE HQ
Deployment Barriers and Solutions
Biomass Highlights in EPAct of 2005(Authorization, not Appropriation)
• Renewable Fuel Standard (Sec 1501)– 4 Billion gallons by 2006– 8 Billion gallons by 2012– Ethanol, biodiesel, anything renewable– Cellulosic or waste derived ethanol counts 2.5X grain ethanol– 250 Million gallons cellulosic ethanol by2013
• Bioenergy Progam (Sec 932)– Fuels and energy from lignocellulosic biomass– Technologies based on enzyme-based processing systems– Cost-effective bioproducts – Integrated Biorefinery Projects (~ 50% of $, more later)
• Loan Guarantee Programs (Sec 1511, 1516, 1703)• Update of Biomass R&D Initiative of 2000 (Sec 306)• Numerous other related RD&D, grant and incentive programs and
reports from DOE, USDA, EPA Policy
Notice of Program Interest (NOPI)
• Section 932 (d) of EPAct of 2005 requires a solicitation of proposals for integrated biorefinery demonstration projects within six months of the signing of the Act.
• OBP has a NOPI open until Nov 3rd looking for input on what the solicitation should cover.
• “Demonstration of Integrated Biorefinery Operations for Producing Biofuels and Other Products”– Uses lignocellulosic or natural oil feedstocks– Produces a biofuel and one or more chemical or
chemical intermediate coproducts• Anticipate a Funding Opportunity Announcement
in Jan ‘06 – depending on Gov’t budget process
Federal Biomass Agency Collaborations
Biomass Research and Development Act of 2000 Biomass R&D Technical Advisory Committee Biomass R&D Board
(DOE/USDA/EPA/NSF/DOI/OSTP/OFEE)
Farm Bill 2002, Title IX Federal Procurement of Biobased Products (Section 9002) Renewable Energy Systems and Energy Efficiency
Improvements (Section 9006) Biomass Research and Development (Section 9008) Continuation of the Bioenergy Program (Section 9010)
Healthy Forest Restoration Act of 2003, Title II
Memorandum of Understanding (MOU) for Woody Biomass Utilization (DOE/USDA/DOI)
MOU for Biomass to Hydrogen (DOE/USDA)
Additional Information
• Biobased Products and Bioenergy Initiative (DOE & USDA)• www.bioproducts-bioenergy.gov
• DOE Biomass Program• www.eere.energy.gov/biomass/
Thank You
How do we get from here to there? Transition Modeling Approach
Collaborations with Starch Ethanol Industry
• Biorefinery Projects– Broin, Abengoa, ADM
• Bridge to the Corn Ethanol– Purdue / Aventine wet mill– Fiber conversion
• Others– Cargill, Amoco, New Energy
Technology DemonstrationRisk ReductionValue Addition
Co-location studies we are currently involved with or have been in the past. Corn fiber conversion and demonstration at semi-works scale in Pekin, IL via subcontract. ADM is working towards this also (picture is PT tube reactor at Aventine). Dry mill co-location is collaboration w/ USDA to investigate economics for different levels of co-location and integration. Power plant co-location studies complete.
DuPont-NREL Partnership: Integrated Corn Biorefinery
• 4 year CRADA• Goal:
Develop a Process Design Package for farmers to produce fuels, chemicals and power from entire corn plant
• Economic synergies being realized
IntegratedCorn
Biorefinery(ICBR)
corn
corn stoverpower
bioethanol
chemicalsSoronaTM
building blockfor SoronaTM polyester
Syngas Liquid Fuels and Chemicals from:BL Gasifier, andWood Residue Gasifier
Pulp Manufacturing
Extract portion of the hemicelluloseConvert the extract to ethanol and chemicals
Black Liquor
& Residuals
Steam,Power &Chemicals
Forest Biorefinery Example
courtesy of: Del Raymond (Weyerhaeuser)
Cellulose still used to manufacture paper
OMB R&D Investment Criteria(select few)
Thermochemical Platform
Sugar Platform
BiomassCombined Heat & Power
Residues
Clean Gas
Conditioned Gasor Bio-oils
Sugar Feedstocks and
Lignin Intermediates
Advanced Biomass R&D
Systems Integration
Fuels, Chemicals, Materials & Intermediates
Integrated Carbon-basedRefineries
Fossil Resources
Intermediates
DirectBioconversion
Products
DirectThermochemical
Products
Challenges – Bioconversion• Pretreatment
– Reduce cost of producing sugars for large volume, low cost commodity fuels and chemicals.
• Catalysts – Better chemical and biological catalysts needed for hydrolysis,
sugar utilization, lignin processing. • Separations
– Improvements needed in all areas for efficiency and valuable product recovery.
• Lower Capital and Operating Costs – Handling of solids and concentrated slurries, and low cost
materials of construction. • Integration of systems for chemicals, materials, fuels and
power
• 2nd Generation Dry Mill Biorefinery - Broin and Associates, Inc. is enhancing the economics of existing ethanol dry mills by increasing ethanol yields and creating additional co-products. Broin estimates that its process will increase ethanol output at existing plants by approximately 10%-20% by 2006.
• New Biorefinery Platform Intermediate - Cargill, Inc. is developing a biobased technology to produce a wide variety of products based on 3-HP acid, produced by fermentation of carbohydrates.
• Integrated Corn-Based Bio Refinery (ICBR) – DuPont is developing is developing technology to convert corn and stover into fermentable sugars for production of value-added chemicals.
OMB R&D Investment Criteria(select few)
• Making Industrial Biorefining Happen - Cargill Dow LLC is developing process technology and sustainable agricultural systems to economically produce sugars and chemicals such as lactic acid and ethanol.
• Advanced Biorefining of Distiller's Grain and Corn Stover Blends - Abengoa Bioenergy Corporation is developing a novel biomass technology to use distiller's grain and corn stover blends to achieve significantly higher ethanol yields while maintaining the protein feed value.
• Separation of Corn Fiber and Conversion to Fuels and Chemicals - The National Corn Growers Association, with ADM and others, is developing an integrated process for recovery of the hemicellulose, protein, and oil components from corn fiber for conversion into value-added products.
OMB R&D Investment Criteria(select few)
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