CHEMICAL$ & Fuels from Biomass

CHEMICAL$ & Fuels from

Biomass

Norm Olson P.E.Program Director, BECON Facility

Biomass Energy CONversion

Iowa Energy Center

www.energy.iastate.edu

The Iowa Energy Center’s Mission

• Broad Scope– complex connections to

many issues– focusing on Iowa– energy efficiency– renewable energy– education

• all groups• all ages• all sectors of the

economy

History• Created by the 1990 Iowa Energy

Efficiency Act– Funded by surcharge on intrastate electric

& gas sales– Conducts and sponsors demonstration,

education, training and research through partnerships and competitive grants with Iowa’s colleges, universities & private non-profits

Twin PillarsEnergy Efficiency

$7.5 billion – Res., Comm., Inds.20% savings in all buildings$1.5 billion annual savings$9 billion construction activity64,000 person-year new jobs

Alternative Fuels

NH3 fuel$5.8 billion locally produced fuels$3 billion fuel production facilities # New jobs?

Biorefinery$120 billion new economic output $30 billion new jobs (25%)425,000 new jobs (manufacturing)

– energy efficient building systems

– Demonstration, training and research

– tours– meeting/class space

Demonstration/Training/Research Facilities

Energy Resource Station (ERS)

Demonstration/Training/Research Facilities

BECON (Biomass Energy CONversion)

renewable energy/ biomass to fuels and chemicals

• demonstration and research • tours• meeting/class space

World Energy Facts

Oil Experts See Supply Crisis in Five Years

International Energy Agency

July 10, 2007

April 27, 2007

172 Militants Planning Attack on Oil Fields Arrested in Saudi Arabia

Friday, April 27, 2007

Crude Oil Reserves

Compiled from “Worldwide Look at Reserves and Production,” Oil & Gas Journal, Vol. 104, No. 47 (December 18, 2006), pp. 24-25.

World Crude Oil Reserves Jan 2007

1,317.4 billion barrels 7,749 quads

(Coal: 22,171 quads)

(NG: 5.500 quads)

OPEC Share (68%)

Natural Gas Reserves

APupdated 9:26 a.m. CT, Wed., Jan. 7, 2009KIEV, Ukraine - Russia shut off all gas supplies to Europe through Ukraine on Wednesday — leaving more than a dozen countries scrambling to cope during a winter cold snap. Prime Minister Vladimir Putin publicly endorsed the move and urged that international observers be brought into the energy dispute.

World Total: 5500 Tcf, 5500 quads(Petroleum: 7749 quads)(Coal: 22,171 quads)

Source: PetroStrategies, Inc.

(3.3%)

Coal Reserves

USDoE - EIA, unpublished data, Coal Reserves Database (April 2007). World Energy Council, 2004 Survey of Energy Resources, Eds. J. Trinnaman and A. Clarke (London, UK: Elsevier, December 2004).

World Recoverable Coal Reserves, Jan 2003

997.7 billion short tons22,171 quads

Oil: 7,749 quadsNG: 5.500 quads

Organisation for Economic Co-operation and Development

Enough Biomass?2002 Consumption Quads

Petroleum 38.11

Natural Gas 23.37

Coal 22.18

Nuclear 8.15

Renewable 5.25

Corn potential (including stalk, 10 bil. bu.) 8.40

The Ideal Alternative Fuel• Can be produced from any raw energy source (i.e.

wind, solar, biomass, coal, nuclear, hydro etc.)• Is cost effective• Has significant storage and delivery systems already

in place• Is environmentally friendly• Can be used in any prime mover (i.e. diesel engines,

fuel cells, SI engines, gas turbines, etc.)• Has a proven, acceptable safety record • Produced in the U.S.

Ammonia Basics 1• Ammonia (NH3) can be produced from any raw energy

source, including all fossil, renewable and nuclear sources.

• Ammonia is cost competitive with gasoline as a transportation fuel

• Ammonia has extensive, worldwide transportation and storage infrastructure already in place

• Ammonia is very environmentally friendly when used as a transportation fuel and produces only N2 and H20 at the tailpipe with low-cost emissions controls.

• Ammonia has been successfully demonstrated in SI engines, CI engines, and fuel cells.

Ammonia Basics 2• High U.S. cost is due to high cost of U.S.

natural gas• The U.S. imported over 50% of it’s nitrogen

fertilizer for the first time in 2004• Ammonia high cost partially due to highly

seasonal nature of use (inefficient use of infrastructure)

• Ammonia has been produced from coal in Beulah, North Dakota for decades. China has huge coal to ammonia capacity.

Dakota Gasification

Over 20 years of producing natural gas, ammonia and other valuable chemicals from US coal.

Al Lukes - $4.50 Nat. Gas from new coal gasification plants.

Fuel Costs• June 2003 Chemical Market Reporter*

$/MMBtu• Ammonia - $200/metric ton* $10.01• Gasoline - $1.20/gallon $10.52• Methanol - $0.79/gallon* $13.68• Ammonia - $270/short ton $14.86• Ethanol - $1.25/gallon* ($2.70, 9/05) $16.44• Gasoline - $2.00/gallon $17.54• Wind - $0.035/kwh x 2 (electrolyzer) $20.51• Gasoline - $2.50/gallon $21.92• Ethanol - $2.70/gallon (9/05) $35.51

Future Compatibility

Hydrogen + Nitrogen

Ammonia

Storage & Delivery – Pipeline, Barge, Truck, Rail

Stationary Power Fertilizer Transportation

Ammonia Pipeline

Ammonia Storage & Transport

Freedom Car Targets w/ 2005 NH3 Comparison

2005

Parameter Units 2007 2010 2015 NH3

Spec. Energy kWh/kg 1.5 2 3 3.0

Energy Density kWh/L 1.2 1.5 2.7 2.7

Storage Cost $/kWh 6 4 2 3.1

Fuel Cost $/gal. Gas equiv 3 1.5 1.5 1.7*

*$280/ton ammonia

High “energy density” in ammonia and ammonia solutions

0

5

10

15

20

25

30

35

MJ/Liter

Gasoline Methane Methanol LiqHydrogen

10Ksi H2 Liq NH3 Solid Urea 50% SOH

ENERGY DENSITIES

Carbon Energy DensityH2 Energy Density

Economic ImpactsPetroleum Imports (2003): ~ 13 million bpd

= $118 b/year @ $25/bbl, $236 @ $50, $354 b@$75, $472 b @$100

2006 U.S. Trade Deficit - $763 billion

2003 Gasoline Consumption – 8,756,000 bbl/day

15.3 x 1015 Btu/year = 850 million ton/year ammonia

1250 new plants @ 650,000 ton/year each

$562 billion investment @ $450 million/plant

375,000 new jobs

$5 billion new tax revenue/year (employees only)

Back to BECON

BECON

The Ideal Biomass System• Soil tilth improved – no erosion loss, increased soil organic

carbon content • Nutrients and micronutrients returned to soil• Fertilizer made from plant residue in same field• Use of currently available planting, harvesting storage

techniques• No fossil fuel use• Cost effective• Local economic development• Biorefinery concept – multiple products (food, chemicals, fuel

additives) energy efficient, low air/water emissions, low water use

Ideal Annual Crop System – Silage Harvest

Ideal Annual Crop System – Silage Storage

Wisconsin

Ideal Annual Crop System – Cover Crop

www.leopold.iastate.edu/.../cover.htm

Local Processing – All nutrients (PKN, micronutrients) returned to soil. Closed loop.

Ideal Annual Crop System – Processing

Nutrients

University of Nebraska - Nitrogen is one of sixteen chemical elements essential for plant growth(1). Green plants must be able to assimilate all sixteen nutrients to carry on cell growth and metabolic activities. Plants get oxygen (O), carbon (C), and hydrogen (H) from the air and water, the other nutrients are taken from the soil. Nitrogen (N), phosphorus (P), potassium (K), are sometimes referred to as the primary nutrients while calcium (Ca), magnesium (Mg), and sulfur (S) are referred to as secondary nutrients. Another seven essential nutrients are taken up in much smaller quantities and are collectively referred to as micro-nutrients. These are: boron (B), chlorine (Cl), copper (Cu), iron (Fe), manganese (Mn), molybdenum (Mo), and zinc (Z). Table 1 lists the total crop removal of soil nutrients to produce a 150 bushel corn crop.

(1) Cobalt has not been proven essential for higher plant growth but nodulating bacteria need it for fixing atmospheric nitrogen in legumes. It therefore sometimes will appear in a listing of essential nutrients.

Table 1.Total Crop Removal, lb/acre of Essential Soil Nutrients by a 150 bushel corn crop. Nitrogen 200

Phosphorous (P2O5) 85

Potassium (K2O) 200 Calcium 42 Magnesium 44 Sulfur 25 Zinc 0.15 Iron 0.10 Manganese 0.08

Boron 0.06 Copper 0.05 Molybdenum 0.03 Chlorine unknown

Outreach•A cooperative education/training agreement, led by DMACC, has been developed with all 15 Iowa Community Colleges

•Nearly 8000 people have either toured BECON or heard the BECON presentation since 1999.

•Visitors from most states and over 30 foreign countries

•BECON is a National Biodiesel Training Center

•Numerous state and Federal legislators, Presidential candidates and former U.S. President George Bush have visited BECON

Conversion SystemsConversion Systems

Biomass Conversion Systems

Feedstock ProcessingFeedstock Processing

Thermochemical ConversionThermochemical ConversionBiological ConversionBiological Conversion

Anaerobic Anaerobic Digestion/CompostingDigestion/Composting

Feedstock Processing

High Solids Unit(Composting)

Low Solids Unit ScrubberScrubber

Methane to Engine

GeneratorOr

Ammonia

Distillation

Ethanol

Residue

SaleableBy-product

Drying/Vapor Recovery

Multi-farm Storage &

Fermentation

Harvest, acidification, &

inoculation

High-sugar energy crop

Local Processing CenterLocal Processing Center

Alcohol Production II

C6H1206yeast

enzymes2C2H50H + 2CO2

GasificationGasification

Feedstock Processing To Engine Generator

To Ash Disposal

Gasifier

Scrubber Syn-gas

PyrolysisPyrolysis

Feedstock Processing

Waste Disposal

Pyrolysis Refining

Syn-oilBio-Chemicals

Biodiesel ProductionBiodiesel ProductionChemical Reactor

Vegetable Oils

Alcohol

Glycerin

Biodiesel

Vegetable Oils + AlcoholVegetable Oils + Alcohol Biodiesel + Glycerincatalyst

Supercritical Fluids

High Pressure Reactor

Biomass

High Pressure Fluid

Product

Supercritical Fluid Chart

Combined Systems

Greenhouse

Anaerobic Digestion Unit

Fermentation Unit

Fuel Cell Unit

Electricity

Heat

CO2

Dairy Facility

Iowa Biorefinery

Bio-Refinery Model

MGP - Lakota

Biomass Feedstocks

• Agricultural Residues• Food Processing Wastes• Livestock Production Wastes• Municipal Solid Waste• Obsolete Seed Corn• Wood Waste

Feedstock Costs• Cost of corn stover ~ 3 cents/lb. ($60/ton)

Corn @ $3.50/bushel ~ 7 cents/lb• Consists mainly of C, H and O

• Cost of petroleum ~ 8 cents/lb ($25/barrel) 16 cents/lb ($50/barrel)24 cents/lb ($75/barrel) 32 cents/lb ($100/barrel)

40 cents/lb ($125/barrel)48 cents/lb ($150/barrel)

• Consists mainly of C and H • Organic chemicals are mainly C, H

Feedstock Availability• 20-30 million tons of corn stover annually in Iowa

Iowa Annual Fossil Fuel Use (EIA, 1999)• 23.4 million tons of coal • 5.1 million tons of natural gas• 4.7 million tons of gasoline• 3.0 million tons of diesel fuel

45 million tons of “Big Three” organic chemicals (ethylene, propylene, benzene) used in US annually.

Biomass Components

CelluloseHemicelluloseLigninStarchSugarOilExtractivesAsh

Crude Oil Components

SulfurNapthaleneAlkyl benzenesParaffins

Benzene TolueneXylene1,2,3,4 – TetramethylbenzeneHeavy metals

Etc., etc., etc.

A Little History

• Oil came in at $1.50/barrel in the mid-1940’s ($0.0045/pound)

• Corn was approximately $1.50/bushel in 1950 (approx. $0.03/pound)

Historical Corn Prices

Source: National Corn Growers Association

Forward to the Past

• Prior to the 1940’s most chemicals were plant derived

• Celluloid, Cellophane, Bakelite, rayon, paints, adhesives

• Henry Ford Vegetable Mobile• Fermentations to ethanol, butanol, propanol

and other alcohols was common prior to the 1940’s.

Organic Chemicals vs Fuels $/Pound 2000 2008

Chemical• Ethylene (1) 0.25 0.64• Propylene (2) 0.21• Acetic Acid (20) 0.48 0.68• Citric Acid (74) 0.85• Ethanol ($1.20 - 2.50/gal) 0.19 0.40• Paper (printer) 0.80• Ammonia ($200 – 600/ton) 0.10 0.30Fuel• Natural Gas ($0.50 – 1.00/ccf) 0.12 0.24• Gasoline ($1.00 - 3.00/gal) 0.16 0.48• Coal ($1 - 2/million Btu) 0.01 0.02

Plant Based ChemicalsChemical Production Cost/Lb Plant

M. Tons Petro. Plant %

Furfural 0.3 0.75 0.78 97.0

Adhesives 5.0 1.65 1.40 40.0

Fatty Acids 2.5 0.46 0.33 40.0

Surfactants 3.5 0.45 0.45 35.0

Acetic Acid 2.3 0.33 0.35 17.5

Plasticizers 0.8 1.50 2.50 15.0

Plastics 30.0 0.50 2.00 1.8

Source: ILSR

More Plant Based ChemicalsPolylactic acid

Plastarch

Poly-3-hydroxybutyrate (PHB)

Sorona: 1,3 propanediol (PDO), (Dupont)

Mirel: PHA, (Metbolix, ADM)

Ethyl lactate (low VOC solvent)

Ethylene, propylene

Butanol

Acetone

100’s of new pharmaceuticals

Getting There from Here

• Corn stalks - C,H,O• Sugars - C,H,O• Ethanol - C2H6O

• Ethylene - C2H4

• Ethylene Dichloride - C2H4Cl2• Vinyl Chloride - C2H3Cl• PVC

Getting There from Here

• Corn stalks - C,H,O• Sugars• Propanol• Propylene• Acrylonitrile• Polyacrylonitrile• Carbon Fiber

Getting There from Here

• Corn stalks - C,H,O• Sugars• Acetone Chlorine Gas + CO• Bisphenol A Phosgene• Polycarbonate

Biofuels 2007

• 42 Ethanol Plants in Iowa – 1st Nationally• 3.3 Billion Gallon

• 14 Biodiesel Plants in Iowa – 1st Nationally• 0.3 Billion Gallon

Some Big-time Players

• Dow/Cargill – polylactic acid – Blair, NE• Dupont/Pioneer• Monsanto/Dekalb• Shell

InputsT,P&MFarmer

InputsT,P&MFarmer

Follow the Money

1990

1910

Source: ILSR

Inputs

T,P & MFarmer

Inputs

T,P & MFarmer

Rural Economic Potential

1999 2004

Iowa Ag. And Food Exports $3.5 Billion $4.7 Billion 24 MT Stover @ $0.02/lb. $1.0 Billion

Iowa Gross State Product $86 Billion $111 Billion24 MT Stover @ $2.50/lb. $120 Billion

Breakfast Cereal $1-$3/Pound

Clothing - $10-$100’s/Pound

Plastic Tanks - $2.00/pound

RMI Hypercar $5-$10/ poundAuto-making and associated businesses employ one-seventh of U.S. workers (approaching two-fifths in some European countries) and represent one-tenth of America's consumer spending.

W. Washington U.

GM’s Autonomy

GM’s Effort

Henry Ford’s soybean plastic

Key Benefits• Developing systems to economically produce chemicals and

fuels from biomass will spur rural economic development• Adding value to agricultural products will enhance the

profitability of many Iowa industries• Demonstrating full-scale biomass conversion systems

promotes increased adoption of these technologies• Developing new products and technologies with export

potential will strengthen Iowa’s economy (consulting)• Producing and using biochemicals is more environmentally

sound than producing and using petrochemicals• Combining biomass research, demonstration, education and

training at one facility helps focus this work and enhances exposure

What’s it Going to Take?

• Yankee Ingenuity• Research and Demonstration• Pioneer Spirit• Fortitude• Foresight• Wisdom• Integrated Systems• Political Support

Wake-up Call

WTO: China Overtakes U.S. in Exports Asian nation set to become world’s biggest exporter by 2008

The Associated PressUpdated: 9:50 a.m. CT April 12, 2007

Agriculture Looks Good