The Forest Biorefinery and Bioenergy · Conversion A Bio-crude Conversion A: UOP-Ensyn pathway ... (II) 15 Petroleum 15 Benzene Xylene Toluene Butanes Ethyl Benzene Cyclohexane Cumene

Tom Browne

8 December 2014

A Canadian viewpoint

The Forest Biorefinery and

Bioenergy

© 2014 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations.

Wood is scattered thinly all over the place

2


The forests are not where the people are

3


Getting wood-based products to where the

people are costs money

4

Typical SW harvesting

costs, Eastern Canada:

• Single-grip harvester,

forwarder to roadside

• Cut-to-length, clearcut

• 120 m3/ha

• 8 ft spruce pulp logs

• 0.100 m3/stem, 400

kg/m3

• 250 m skid distance

• 100 km haul distance

Activity $/odt

Felling & processing $36.00

Forwarding & skidding $19.00

Stumpage (typical) $20.00

Road maintenance $ 6.25

Total in-woods $81.25

Loading and transport $34.00

Other overhead $ 7.25

Total transport & other $41.25

Total roundwood

delivered cost

$122.50


Residues are not a lot cheaper, and are

full of bark

5

$9.00

$30.54

$13.52

$2.48

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$/ODt

Pre-piling

Comminution

Transport (120 km)

Other:

Roads, overhead,

maintenance, compliance,

stumpage

Source: FPInnovations BiOS model


Residues are not a lot cheaper, and are

full of bark

6

$9.00

$30.54

$13.52

$2.48

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$/ODt

Pre-piling

Comminution

Transport (120 km)

Other:

Roads, overhead,

maintenance, compliance,

stumpage

Source: FPInnovations BiOS model


Thermal Scale of Refineries

7

Where What Capacity, GWth

Shell refinery,

Montreal (shut)130,000 bbl/d 9 GW oil

Nanticoke 3.5 GW power 11 GW coal

US refining

capacity16 MMbbl/d 1100 GW oil

World oil use 78.5 MMbbl/d 5400 GW oil

Canada’s largest

pulp mills

5,000 odt/d

wood supply1 GW wood


Plant gate cost per litre, FT Diesel from CDN softwood supply

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

10 100 1,000 10,000

Annual production (millions of litres)

$/lit

re

Combined Feedstock collection

Other operating Capital repayment

Economies of scale vs. feed costs

8


Plant gate cost per litre, FT Diesel from CDN softwood supply

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

10 100 1,000 10,000

Annual production (millions of litres)

$/lit

re

Combined Feedstock collection

Other operating Capital repayment

1 GW 10 GW

Economies of scale vs. feed costs

9


What does $100/bbl mean for bio-

energy?

Paradoxically, $100/bbl may not be enough to

make stand-alone bio-energy profitable

where wood is $100/odt

Wood at $100/odt makes ~350 L of ethanol,

at operating costs in the range of $1.00 per

litre

▫ Corn ethanol costs under $0.65 per litre

▫ Can’t compete with corn (or sugar cane) without

subsidies

10



energy?

Ethanol from wood at $30/odt may be

competitive

▫ Wood at $30/odt arises as residues from some

other, higher value activity

11



energy?

Ethanol from wood at $30/odt may be

competitive

▫ Wood at $30/odt arises as residues from some

other, higher value activity

12


Biomass is local

13

This is the single most important factor in ROCE calculations

‘Local’ means bio-scale is at most ~1 GWTH

• Probably closer to 500 MWTH

10X smaller scale than petroleum industry

• Costs per unit output will be higher

• Focus on high-value products will be absolutely critical


So what are the possibilities? (I)

14

14

Benzene

Xylene

Toluene

Butanes

Ethyl Benzene

Cyclohexane

Cumene

p-Xylene

Iso-butylene

Butadiene

Styrene

Adipic acid

Caprolactam

Phenol

Acetone

Terephthalic

acid

Polystyrene

Nylon 6,6

Polyurethanes

Nylon 6

PF resins

Bisphenol A

Caprolactam

Salicylic acid

Methyl Mecracrylate

Solvents

Bisphenol A

Pharmaceuticals

Polyester fibres

Polyester films

Toluene diisocyanate

Foam polyurethanes

MTBE

Polybutadiene

Neoprene

Styrene butadiene

Biomass

Petroleum

Conversion A

Bio-crude

Conversion A: UOP-Ensyn pathway


So what are the possibilities? (II)

15

Petroleum

15

Benzene

Xylene

Toluene

Butanes

Ethyl Benzene

Cyclohexane

Cumene

p-Xylene

Iso-butylene

Butadiene

Styrene

Adipic acid

Caprolactam

Phenol

Acetone

Terephthalic

acid

Polystyrene

Nylon 6,6

Polyurethanes

Nylon 6

PF resins

Bisphenol A

Caprolactam

Salicylic acid

Methyl Mecracrylate

Solvents

Bisphenol A

Pharmaceuticals

Polyester fibres

Polyester films


Foam polyurethanes

MTBE

Polybutadiene

Neoprene

Styrene butadiene

Biomass

Conversion C

Conversion B

Conversion B: Lignin from black liquor

Conversion C: Succinic acid from sugar


So what are the possibilities? (III)

16

Petroleum

16

Benzene

Xylene

Toluene

Butanes

Ethyl Benzene

Cyclohexane

Cumene

p-Xylene

Iso-butylene

Butadiene

Styrene

Adipic acid

Caprolactam

Phenol

Acetone

Terephthalic

acid

Polystyrene

Nylon 6,6

Polyurethanes

Nylon 6

PF resins

Bisphenol A

Caprolactam

Salicylic acid

Methyl Mecracrylate

Solvents

Bisphenol A

Pharmaceuticals

Polyester fibres

Polyester films


Foam polyurethanes

MTBE

Polybutadiene

Neoprene

Styrene butadiene

Biomass

Conversion E

Conversion D

End-users:

- Injection molders

- Compounders

- Tire mfg

- Belts & hoses

- Auto mfg

- Etc.


Plywood resin prices, inflation

adjusted

17

- $

1,000 $

2,000 $

3,000 $

4,000 $

5,000 $

1950 1960 1970 1980 1990 2000 2010 2020

Sources: SRI; http://www.inflationdata.com/inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp


Plywood resin prices vs. oil prices

18

Data for 1955, 1960, 1980 ignored in the regression analysis

Sources: SRI; http://www.inflationdata.com/inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp

y = 8.28x + 588R² = 0.784

500 $

750 $

1,000 $

1,250 $

1,500 $

0 $ 20 $ 40 $ 60 $ 80 $ 100 $ 120 $

1980

1955, 1960 ↑

Here, you can make

money with lignin


Biomass is local

Primary transformation in forest communities

is key

• We won’t make car parts in forest communities

• We won’t ship millions of tonnes of wood chips to

chemical complexes, either

Convert biomass to easily-shipped, valuable

intermediates

• Convert the residues to energy products

19


Conclusion

Biomass is thinly spread all over the place

▫ Wet, bulky, distributed

Petroleum is cheap, comes out of a pipe

▫ Even at $100/bbl, bio-fuels from wood are a

challenge in the absence of policy action

Bio-chemicals are a necessary component of

the forest biorefinery

▫ Target products at $1.00/lb

▫ Burn the residues (CHP, pellets, liquid fuels)

20

www.fpinnovations.ca

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Tom Browne

514-266-4104

[email protected]

http://www.fpinnovations.ca/

The Forest Biorefinery and Bioenergy · Conversion A Bio-crude Conversion A: UOP-Ensyn pathway ... (II) 15 Petroleum 15 Benzene Xylene Toluene Butanes Ethyl Benzene Cyclohexane Cumene

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