ABENGOA BIOENERGY ABENGOA BIOENERGY R&D Biomass derived energy Southwest KS Project Kansas Renewable Energy Conference September 25-26, 2007 Topeka KS Thomas W. Robb, Ph.D. Abengoa Bioenergy R&D
Mar 27, 2015
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Biomass derived energySouthwest KS Project
Kansas Renewable Energy Conference
September 25-26, 2007Topeka KS
Thomas W. Robb, Ph.D.Abengoa Bioenergy R&D
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
www.abengoabioenergy.com
Abengoa Bioenergy
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Abengoa is a technological company that applies innovative solutions for sustainable development in infrastructures, environment and energy sectors. It is present in over 70 countries where it operates through its five Business Units: Solar, Bioenergy, Environmental Services, Information Technology, and Industrial Engineering and Construction.
Abengoa overview
Profit and Loss Account(M €)
Sales 2,677.2 32.3 2,023.5 578.8 16.5Net Earnings attrib. to Parent Company 100.3 52.0 66.0 16.1 20.1Gross Cash Flows from Operating Activities (**) 287.9 33.0 216.4 53.8 18.3
Important Variables
Margin (% Gross Cash Flows/Sales) 10.8 10.7 9.3Gross Cash Flows/Financial results 3.13 3.68 3.32Return on equity (ROE) (%) (***) 22.45 14.91 10.09Data per share:- Earnings per share (€) 1.11 0.73 0.18 19.9- Dividend per share (€) 0.16 0.15 0.05 12.3
(*) CAGR: Compound Annual Growth rate.
(**) Earnings before interest, tax, depreciation and amortization, adjusted by the works flows done for own fixed assets
(***) Net earnings/ Shareholders'funds
% Variation (06-05)
% CAGR (96-06) (*)
2006 2005 1996
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Ethanol production from vegetal raw materials (cereal and biomass)
Abengoa
Bioenergy
Abengoa
Bioenergy
Bioproducts
Abengoa Bioenergy Business
Renewable BiofuelNull CO2 emissions
DGS – Animal feed
CO2 – Industrial applications
Ethanol
ETBE
Direct blendingHydrogen
CerealCereal
Biomass
Biomass
ABENGOA BIOENERGYABENGOA BIOENERGY R&D Production Process
Technology based in fermentation of sugars
Sugar (glucose)+ Air CO2 + Ethanol
C6H12O6 + O2 3 CO2 + 3 C2OH6
Yeast
Used feedstock is transformed into sugars, the process would change depending on the chemical composition:
Sugar beet or sugar cane: direct fermentation
Cereal: starch, previous saccharification (enzymes)
Lignocellulosic biomass: cellulose and hemicellulose. Hydrolysis to break long chains and produce C6 and C5 sugars
Level of
ComplicationFeedstock
price
Each feedstock yields different co-products
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Feedstock Preparation Transformation into sugars
Fermentation Distillation
Collection
Sugar case
Milling and filtering
DistillationFermentationC6
Cereal case
Cooking DistillationFermentationC6
SaccharificationLiquefactionMillingFeedstock cleaning
Lignocellulosic Biomass case
Conditioning Milling Separation L/STermochemical hydrolysis
Distillation
2nd Enzymatic Hydrolysis
FermentationC6
FermentationC5
Production Processes
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Abengoa Bioenergy Goals
Promote development of seeds with improved characteristics to establish win-win contracts with farmers, link certified seeds to the contracts.
• Abengoa Bioenergy is establishing strategic alliances with seeds
companies to develop/improve specifics crops • Promote better agronomic practices under long term
contracts to increase farm income
Promote energy crops for ethanol production
• Abengoa Bioenergy is working closely with research centers to promote the development of crops for ethanol production.
• Abengoa Bioenergy is helping governments define policies and R&D programs to promote energy crops.
Feedstocks
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Objective
Taylor made energy crops for the different conversion pathways and for particular regions ensuring sustainability and environmental quality. Main crops characteristics:
Domestic crops, high starch and biomass yields per hectare, stress tolerances (abiotic, disease…)
Minimum inputs maintaining sustainability
Composition to maximize the ethanol
Ensure sustainability and environmental quality (from…analysis of microbial communities underlying soils… to formulation of management guidelines for biomass removal)
Feedstocks
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Cereal technology – current situation
All Abengoa Bioenergy plants are currently running on cereals Yields varying depending on cereal used DDGs produced containing 30% protein and 10% humidity
Cereal technology – Future situation
ObjectiveIncrease competitiveness of the production facilities.
Abengoa Fuel and Feed (AFF) process to be patented by Abengoa Bioenergy
StepsDecrease amount of residual starch (minimum facility modifications)Increasing protein content (>40%)Increase digestabilityIncrease the quality of the co-product (DDGs)
Technology
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Enzymatic hydrolysis technology – current situation
Abengoa Bioenergy has develop a proprietary fractionation technology for biomass processing.
Pilot scale plant in York, (Nebraska, US) to validate our biomass fractionation process and integrate downstream systems
Demonstration plant in Babilafuente (Salamanca, Spain) to validate biomass to ethanol enzymatic technology at a commercial scale.
Enzymatic technology – Future situation
ObjectiveCompetitive production of ethanol from biomass.
StepsComplete the process engineering development
demonstrations phases. Build first of a kind commercial facility after the demonstration of the technology in Salamanca and Nebraska Valorization of all biomass fractions
Technology
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Steps (continue)
Research in the biological deconstruction of the biomass to produce tailor made enzyme mixes for each specific case:
Determine fundamental physical and chemical factors in the recalcitrante of lignocellulosic biomass to processing
Understand cellulase and cellulosome Develop new enzymatic systems to soften termochemical
pretreatment conditions
Advance in the sugar fermentation to ethanol through the engineering of microbial systems to achieve:
high yield with complete sugar utilisation, minimal by- product formation, and minimal loss of carbon into cell mass.
high final ethanol concentration tolerance to inhibitors present in hydrolysates higher overall volumetric productivity, especially under
high solids conditions
Technology
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Biomass gasification and synthesis (BtL) technology –current situation
Available catalysts are not productive enough to make the process economically feasible.
Low conversion per passMixed alcohols product with low ethanol selectivity
Several existing technologists licensing gasification processes for syngas production for further chemical synthesis.
Catalysts development programs in European research centers, combined with process design and analysis.
Recently granted by the US-DOE a program (3 MM$) for synthesis catalysts development
Technology
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
•La Coruña (50 Mgal) • York, NE (55 Mgal)
•Colwich, KS (25 Mgal) •
Portales, NM (30 Mgal) •
Ravenna, NE (88 Mgal)
• Cartagena (40 Mgal)
•Salamanca (52 Mgal)• AB France (65 Mgal)
Abengoa Bioenergy is the only international producer of ethanol
Production Facilities in EU Production Facilities in U.S.
EU (Mgal) 2006 2007 2008Production 142 142 208Construction * 66 66
EU (Mgal) 2006 2007 2008Production 142 142 208Construction * 66 66
US (Mgal) 2006 2007 2008Production 110 198 286Construction 88 88
US (Mgal) 2006 2007 2008Production 110 198 286Construction 88 88
YTD Production Capacity
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Abengoa Bioenergy plans to be a leader in commercialization of cellulosic ethanol production
• Objective
• Build first commercial scale cellulose facility by 2011
• 15 million gpy from biomass, 85 million gpy from starch (hybrid facility)
• Cornerstones
• Two biomass facilities now underconstruction
• York, NE pilot plant (operational 2006) will demonstrate biomass fractionation and fermentation technology
• Salamanca, Spain facility (2 mgpy - operational 2007) will demonstrate enzymatic hydrolysis technology
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
DOE integrated biorefinery solicitationDOE integrated biorefinery solicitation
•Overview
DOE will award of up to 40% of the cost of a biorefinery facility ($76.8 million)
Award criteria:• Facility must be able to utilize 700 bone dry metric tons of biomass
per day• Facility must be replicable and proposal to include appropriate
deployment plan of the proposed technology• After construction costs are paid, the facility must be profitable
without subsidies
Additional merit points given for:• Significant showing of state support• Energy generation from multiple sources feedstocks• Barrels of oil displaced
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Risk mitigation for biomass availability and site selection
• Risk factors– Inclimate weather during biomass harvest period
• Due to this risk factor, Eastern US corn-belt was not considered as a viable location for plant location until one-pass harvest technology is available (potential for one in seven years for biomass harvest to be limited)
– Biomass crop residue abundance• As the DOE is focused on cereal crop residues, areas such as
California and South East US (wood residue) were not considered as viable locations for proposal
– Multiple sources of biomass• Multiple biomass sources demonstrate plant replicability over
a wider geographic area• Multiple biomass sources with harvest periods during different
times of the year reduce risk of biomass harvest being compromised by bad weather
• Multiple biomass sources and harvest times spread harvest machinery investment and will reduce feedstock costs
DOE integrated biorefinery proposalDOE integrated biorefinery proposal
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Biomass available in Kansas38 million tons per year
Crop Corn Milo Wheat Switchgrass
Harvested Acres 3,400,000 2,600,000 9,500,000 2,900,000
Production (bu) 464,000,000 195,000,000 380,000,000
Residue 11,000,000 6,700,000 12,800,000 7,500,000
DOE integrated biorefinery proposal, con’tDOE integrated biorefinery proposal, con’t
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Abengoa’s hybrid plant concept
• 35 million bushels grain facility– 88 million gallons ethanol– 290,000 tons feed co-product
• 245,000 BD metric tons biomass (315,000 short tons-as is)– 400 BD metric tons/day
• 15 million gallons ethanol
– 300 BD metric tons/day• Syngas production• 1,597,200 MMBTU (syngas+flue gas)
– 100% steam needs of biomass processing– ~30% steam needs of grain to ethanol processing
• Syngas can be utilized for production of chemical intermediates
• Opportunity to leverage infrastructure and many plant operations
DOE integrated biorefinery proposal, con’tDOE integrated biorefinery proposal, con’t
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Technical process
DOE integrated biorefinery proposal, con’tDOE integrated biorefinery proposal, con’t
• Enzymatic Hydrolysis (EH) will convert biomass to ethanol, lignin and biomass animal feed.- The EH technology is being developed in house and will be tested and improved at the facilities in York, NE (pilot plant) and Salamanca (demo plant).- Coproduct development (lignin and biomass animal feed) is being performed and will contribute to the overall profitability of the facility.
• Gasification will convert biomass to syngas, which will be combusted for steam generation.
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Oil DisplacementFrom 245,000 BD metric tons biomass
DOE integrated biorefinery proposal, con’tDOE integrated biorefinery proposal, con’t
386,721 barrels of oil displaced
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Strong showing of state support
• State government– Attractive incentive package– Strong governmental support
• Producer organization support– Kansas Farm Bureau– Kansas Wheat Growers association– Kansas Milo Growers association– Kansas Corn Growers association
• Kansas BioAuthority• Kansas Association of Ethanol Processors
DOE integrated biorefinery proposal, con’tDOE integrated biorefinery proposal, con’t
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Biomass logistics – P&L cornerstone
• Biomass inputs– 50 mile radius of plant site– 65% wheat straw, 20% milo residue, 15% corn stalks– Opportunistically use other residues such as gin
trash, wood chips, etc.– Areas evaluated = ~5% of total available
• 80 to 85% of input needs– Producer harvests and stores material field side– Abengoa collects material as needed
• 15 to 20% of input needs– Producer delivered material to plant site
DOE integrated biorefinery proposal, con’tDOE integrated biorefinery proposal, con’t
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Biomass economics
• 80 to 85% of material– Contracted at least one year in advance– Crop residue is valued at $10/short ton in the field– Added to the $10/ton
• Custom rates for harvesting• Custom rates for transporting/stacking at field side• Storage fee dependant on amount of time between
harvest and Abengoa collection – to include competitive insurance rate and weather protection
– $10 plus rates above = price paid for biomass at field side
• 15 to 20% of material– Spot market pricing
DOE integrated biorefinery proposal, con’tDOE integrated biorefinery proposal, con’t
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Biomass economicsWhat $10/ton means to biomass producers
• Of the $10/ton, between $3 to $4 needs to be returned to the soil for nutrient loss– Producer net will be $6 to $7 per ton
• Wheat @ 1 ton/acre net = $6 to $7 per acre• Corn/milo @ 2.4 ton/acre net = $14.4 to $16.8 per
acre• Switchgrass @ 5 ton/acre net = $30 to $42 per acre
• Many Kansas producers live on $25 per acre profit
DOE integrated biorefinery proposal, con’tDOE integrated biorefinery proposal, con’t
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Wheat versus corn/milo residue and switchgrass
Operation Per/ Per Ton Per/ Per Ton Per/ Per Ton
Mow/Swath $0.00 $9.85/acre $4.10 $9.85/acre $1.97
Baleing $11.50/bale $23.00 $13.00/bale* $25.30 $11.50/bale $23.00
Haul to Storage $4.75 $4.75 $4.75
Total $27.75 $34.15 $29.72
Delta to Wheat $6.40 $1.97Delta value for 300K tons
$1,920,000 $ 591,000
*Estimate 10% higher baling costs for corn/milo residue due to dirt/increase machinery wear
Comparison of select variable costs based on 2004 Kansas Custom RatesWheat, 1 ton/A Corn/Milo Residue, 2.4 ton/A Switchgrass, 5 ton/A
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
Needs to make cellulosic ethanol cost effective/competitive with grain ethanol
• Process– Cost effective enzymes– Pentose to ethanol
organism (s)– Fractionation process– Plant design and
operational learning curve
• Feedstock– High density balers– One-pass harvesting
systems– Storage infrastructure
and systems to maintain quality
– Improved genetics of feedstock varieties
– Energy efficient harvesting systems
– Transportation infra- structure and biomass friendly regulations
ABENGOA BIOENERGYABENGOA BIOENERGY R&D
www.abengoabioenergy.com
Abengoa Bioenergy
Thank you
Question?