FO Lichts Next Gen London

The Commercial Development of Lignocellulosic Ethanol

Mark D. Stowers, Ph.D.Senior Vice President of Science and Technology

F.O. Lichts Developing and Commercialising Next Generation BiofuelsLondon, UK

9-11 February 2010

© POET LLC

• Ethanol Background• Corn Ethanol and POET’s Approach• POET’s Cellulosic Ethanol Activities• Biomass Strategy• Process Technology• Corn-Cellulose Ethanol Integration• Criteria for Success• Vision for the Future

Outline

Ethanol – Past, Present and Future

100 years ago

Tomorrow

Today

© POET LLC

• Product Attributes– Adaptability– Burning Attributes– Octane

• Product Challenges– Energy Density– Current Engine Technology

• New Applications– E100 – proven fuel in Indy Cars

Ethanol Technology• Ricardo’s EBDI Engine – the future

– Ethanol Boost, Direct Injection– 3.2 L engine to replace 6.6 -7 L CI engine to

deliver peak power 450+ hp, 663 lb-ft torque at 3000 rpm More horsepower and torque than

gasoline Diesel engine replacement Closes the gap in fuel economy Meets new US EPA emissions stds

© POET LLC

• US Market Biofuels– 36 Billion Potential– >25% volumetric replacement

• National Security– Cost of Oil (USD)

• Environment– Total GHG Reduction

• Rural Development (Jobs)– Green Jobs Waiver (E15)– 136,000 new jobs– US$24 billion/year to GDP– One Time GDP Impact

• US$37 billion in capital projects• 260,000 jobs

Ethanol

Source: BESS version 2008.3.0, Liska and Cassman, 2009 GREET, Wang et al, 2007.

0.1 0.25 0.5 1 1.75 3 4.25 5.5 7 8.5 10.513.5

16

0.6 0.85 1.1 1.5 1.75 22.5

33.5

44.5

4.54.5

5

911.1

12.95 13.95 15.216.55

18.1520.5

22.2524

2628

30

33

36

0

5

10

15

20

25

30

35

40

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Years

bgy

Cellulosic Biofuel Advanced Biofuels RFS schedule

RFS2

GHG Reduction

© POET LLC

Branded DDGS

Corn Ethanol Process

Raw Starch Hydrolysis

Corn Fractionation

Biomass and LFG (Energy Supply)

Reduced Water Usage

High Gravity Fermentation

Branded DDGS

© POET LLC

Implemented at 26 plants producing over 1.5 billion gallons and 4 million tons of distillers’ grains

Cellulosic Ethanol Activity in the US

© POET LLC

• Project BELL (Scotland, South Dakota)– 1-2 tonnes biomass/day– Biochemical Process– Dilute Acid Pretreatment– Anaerobic Digester for Waste Stream Processing

• Project LIBERTY (Emmetsburg, Iowa)– 700 tonnes Loose and Baled Cobs/day– Biochemical Process– Co-located on Corn Ethanol Plant Site– Significant Energy Supply to Corn Ethanol Plant

POET’s Cellulosic Ethanol Plans

© POET LLC

Biomass Availability

Worldwide385-472 MM ha of idled cropland

(Campbell et al, 2008)

US1+ billion tons of available biomass

(Perlack et al, 2005)

© POET LLC

Biomass Collection: Challenges and Solutions

© POET LLC

• Available Biomass– 90+ million acres of corn– Corn Stover (enriched with cobs)

• Multiple Models– Loose and Baled Cobs

• Total Price Target– US$30-60/ton delivered

• POET Strategies– Leverage our existing footprint– Work with our existing farmer

investor group– Created procurement and

logistics entity– Partnered with DOE and USDA– Collaborate with National Labs

and Universities

Biomass: Field to Plant

Year Systems* Acres Tons Collected

2009 14 20,000 12,000

2010 100 100,000 70,000

2011 400 280,000 210,000

2012 450 315,000 252,000

ANNUAL LIBERTY TONS REQUIRED

*estimated

© POET LLC

Cellulosic Ethanol Process

© POET LLC

Pretreatment• Multiple Models• Adaptable to Multiple Feedstocks• Optimize Solids Loading• Minimize Catalyst Costs• Minimize Energy Usage

Low Solids High Solids

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

0% 10% 20% 30% 40% 50% 60% 70%

Ener

gy C

ost (

$/ga

l EtO

H)

Pretreatment Solids Loading

Pretreatment Energy Cost

Solids Loading

Ener

gy c

osts

© POET LLC

Enzymes and Saccharification Process

Multiple StrategiesHighly Dependent on Pretreatment SystemEnzyme Availability Largely Limited to CellulasesCost Reduction Requires a Close Collaboration with Enzyme Suppliers

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

50

55

60

65

70

75

80

85

0 2 4 6 8 10 12 14 16

Enzy

me

Cost

($/

gal)

Etha

nol Y

ield

(ga

l/to

n)

Enzyme Loading (mg protein/g glucan)

Enzyme Performance

Enzyme Loading

Etha

nol Y

ield

Enz

yme

Cost

© POET LLC

• Multiple Options• Feedstock Implications• Biocatalysts• Multiple Process Scenarios

Fermentation

Yeast cell photo credit: http://www.sciencenews.net.au/

© POET LLC

• Process Improvements Achieved– Streamlined Unit Operations– Effective Lignin Removal

• Cost Reductions Realized– Chemical Raw Materials– Lower Energy Usage– Energy Offset to Corn Ethanol Plant– Enzyme Use– Plant, Property and Equipment

• Continuing Challenges– Enzyme Use– Fermentation Efficiency– Pretreatment Effectiveness

POET’s Cellulosic Ethanol Process Today

© POET LLC

• Co-Location with Existing Corn Ethanol Plant• Shared Infrastructure• Common Feedstock Suppliers• Synergistic Energy and Natural Resources Strategies

Corn and Cellulosic Ethanol Integration

POET Biorefining -- Emmetsburg© POET LLC

• Ethanol Market– Continued Product Performance– RFS2 Volumes– E15, FFVs, New Engines

• Consistent Governmental Policies• Feedstock Supply and Logistics System• Cost Effective Cellulose Conversion Technology• Value Capture Mechanism for Waste Streams

Criteria for Success

© POET LLC

• Roll out– RFS2 -- Achievable in the US– 90 billion gallons by 2030

(Sandia & GM, 2009)– Potential for 100% Domestic Fuel

• Drivers– National Security– Environment– Economic Development

• Global Impact– Benefits are translatable.– All biomass is local.– Technology is transferrable.

Vision for the Future

© POET LLC