Biorefineries of the Future Envisioned byDOE’s Biomass Program CDMA Fall 2005 Meeting New Revenues from SustainableIndustrial 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
Unique Role of Biomass 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 chemicalsAddressing 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 = 7.44The 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 wascompounded 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.
US Vehicles per 1000 People (2002)U.S. Vehicles per Thousand People900.000675.000450.000225.000 0 00 10 20 30 40 50 60 70 80 90 00 19 19 19 19 19 19 19 19 19 19 20
Historical U.S. Vehicles Compared to Vehicles per 1000 People around the World - 2002 900.000 United StatesVehicles per 1000 People 675.000 u Industrialized Pacific Western Europe 450.000 Middle East Eastern Europe n 225.000 Africa Former USSR Central & S. America uu Developing Asia China n u n 0 00 10 20 30 40 50 60 70 80 90 00 19 19 19 19 19 19 19 19 19 19 20
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 fundingdecisions, 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 PRODUCTS Fuels: – Ethanol – Renewable Diesel –Renewable Gasoline – Hydrogen Power: – Electricity – Heat (co-generation) Chemicals – Plastics Biomass Conversion – Solvents – Chemical Intermediates Feedstock Processes – Phenolics – Adhesives – Furfural – Trees – Fatty acids - Enzymatic Fermentation – Acetic Acid – Grasses - Gas/liquid Fermentation – Carbon black – Agricultural Crops - Acid Hydrolysis/Fermentation – Paints – Agricultural Residues - Gasification – Dyes, Pigments, and Ink – Forest Residues - Pyrolysis – Detergents – Animal Wastes – Etc. - Combustion – Municipal Solid Waste - Co-firing Food and FeedReplaced 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 mixof conventional products, fuels, electricity, heat, chemicals, and material products from multiple biomass feedstocks. DOE is working to evaluate and develop the bioreﬁnery concept into realworld 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 andby 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 rawmaterials. 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 processingefﬁciency 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 300million 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 moldedbottles, 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.
Biomass Resources and Issues Crops •Quantity Available Corn Soybeans •Cost Wheat Barley –Production Sugar Cane –Collection and Wood and Residues Transportation Sawdust Wood waste –Integrated Supply Forest thinnings System Agricultural Residues Corn stover •Sustainability Cereal straw Sugarcane bagasse –Land, Air and Water Animal waste Resources Energy Crops •Quality Switchgrass –Composition Hybrid poplar Willow –Ease of ConversionPoint 3 areas with 1 example of eachWaste – sawdustAg residues – corn stoverDedicated crops - switchgrass
Biomass Resource Base DOE/USDA• Land resources of the U.S. can Billion Ton sustainably supply more than 1.3 Vision Paper 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 80Million dry tons per year 16 22 60 8 16 11 40 15 49 28 20 32 8 9 11 0 13% 5% 13% 3% 14% 19% 20% 13% Growth Unexploited Existing use
Agricultural Resource Base Potential exceeds 930 million tons/year High crop yield increase 425 56 377 75 Land use change with perennial crops 27954 156 75 High crop yield increase 0 409 95 75 No land use changes 025054 75 0 250 500 7501000 Million dry tons per yearCrop residues Grain-ethanol Process residues/wastesPerennial crops
Biomass Conversion Options (OBP current emphasis shown) Hydrolysis Sugars and Lignin Acids, enzymes Gasification Synthesis GasFeedstock High heat, low Fuels oxygenproduction,collection, Digestion Chemicals Bio-gashandling & Bacteriapreparation Materials Pyrolysis Bio-Oil Electricity Catalysis, heat, pressure Heat Extraction Carbon-Rich Mechanical, Chains chemical Separation Plant Products Mechanical, chemical
Bioreﬁnery Deployment Pathways Pathways are tied to the Grain Wet Mill resource base and existing industry market segments Grain Dry Mill where possible Oil Seeds and Crops Agricultural ResiduesLignocellulosic FS Perennial Grasses Pulp and Paper Mill Forest Products Mill Woody Energy Crops Time
3 Major Components of Lignocellulosic Biomass Lignin: 15-25% Complex network of aromatic compounds “New clean coal” High energy content Treasure trove of novel chemistryHemicellulose: 23-32% A collection of unusual 5- and Cellulose: 38-50%6-carbon sugars linkedtogether in long chains Long chains of glucose Xylose is 2nd most abundant Most abundant form ofsugar in biosphere carbon in biosphere
Hydrolysis of Carbohydrates Enzymatic Pretreatment Hydrolysis 60 g pretreated 27 g residue solids (dry) solids (dry) 100 g raw process ligninsolids (dry) intermediate coproduct feedstock
Not All Biomass is Created Equal protein100% chlorophyll soil acetyl Uronic acids ash75% extractives lignin galactan arabinan mannan xylan50% glucan25% 0% poplar sawdust corn stover (fresh) (fresh) bagasse
Products from Lignin Intermediates Power, Sugars Combustion HeatCarbohydrateHydrolysis Lignin Syngas Gasification Intermediates Low Molecular Wt. Products Pyrolysis Bio-oil/char •Simple aromatics •Quinones •Hydroxylated aromatics Depolymerization •Aromatic aldehydes Liquid Fuels •Aromatic acids and diacids Hydroprocessing •Aliphatic acids Residual solids to combustion or gasiﬁcation High Molecular Wt. Products Recovery •Carbon fiber Lignin Products •Polymer fillers and •Thermoset resins Upgrading Residual solids to •Wood adhesives and preservatives combustion or gasiﬁcation
Systems Analysis Estimating Competitive Advantage and Environmental Characteristics of Technologies and SystemsConceptual process engineering design and techno-economic analysis is used extensively in the Program to carry out the detailed technical andfinancial assessments that are integral parts of the Stage Gate process. We practice a graded approach to these assessments meaning that asthe projects move along the development pathway, the assessments become more robust and hopefully, more accurate. The Program hasdeveloped a series of detailed process models and assessment tools for the main process concepts under development. These tools are usedwhere appropriate. However, when new ideas or process concepts are being considered, these models and tools must be developed. Theinformation 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 CycleCorn Stover Hydrolysis and Fermentation Biomass Transport Ethanol Feedstock Feedstock Feedstock Fuel Production Transport Conversion Distribution One Mile Traveled GasolineCrude Oil Crude Transport by Oil RefiningProduction barge, pipeline to Gasoline
LCA Energy & Climate Beneﬁts for Corn Stover to Ethanol & PowerReduce oil consumption Reduce greenhouse gasby 95% 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”
Gate Decision Criteria: 7 Dimensions 1. Strategic Fit (look to OBP MYTP, EERE Plans) 2. Market/Customer 3. Technical Feasibility and Risks 4. Competitive Advantage 5. Environmental, Legal, Regulatory Compliance 6. Critical Success Factors and Showstoppers 7. Plan to ProceedWhat we have found in our implementation is that Emphasis on identifying success factors and showstoppers has enabled us to identify what is most importantand prioritize our work.
What does OBP stage gate do?Helps deﬁne interfaces of Public, Private, and Joint Public-Private research, development, demonstration and deployment activitiesOBP Strategy:• Core pre-competitive research to “enable” expanded bioindustry• D, D & D through Public-Private Partnerships
Deployment Barriers Private Cost-Share: OBP Cost-Share: Project Timeline: Development Stages: Potential Future Unexpected Cost: DOE/OBP Deployment Efforts Risk Mitigation: (to overcome barriers) Attainment of performance criteriaDevelopment Costs Delays in attainment of Mechanical completion performance criteria Commissioning Current Biorefinery Projects First Commercial Plant Procurement Basic Technology Proof of Demonstration Permitting & R&D Development Concept Engineering Construction Operation100% / 0% 80% / 20% 50% / 50% 20% / 80% Loan Guarantee Program/Risk Mitigation Pool
Deployment Barriers and Solutions Barrier Solution Arena Off-Take Agreements – Identify and secure off-take Policy/Legislation/ markets for biobased technologyMarket Risk Mandates – Quotas to purchase biobased technology Policy/Legislation Incentives – Financial incentives to purchase biobased Policy/Legislation technology Core Fundamental R&D – National Labs – no cost share OBP (+ other gov’t) Applied Technology R&D Funding – 20% cost-share OBP (+ other gov’t) Integrated Bench/Pilot-Scale R&D Funding – 50% cost- Technical OBP (+ other gov’t) share (Industry-led) Risk Commercially Viable Demonstrations – 80% cost-share OBP of demo proving market viability Loan Guarantee Program – Finite guarantee program Policy/Legislation mitigating construction & start-up risk DOE HQCommercial Risk Risk Mitigation Pool – Resources to address corrective Policy/Legislation actions needed to deploy new technology in later stage of construction DOE HQ
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/
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 Demonstration Risk Reduction Value AdditionCo-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 viasubcontract. ADM is working towards this also (picture is PT tube reactor at Aventine). Dry mill co-location is collaboration w/ USDA to investigateeconomics 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 chemicals SoronaTM corn Integrated Corn bioethanol Biorefinerycorn stover (ICBR) power
Forest Bioreﬁnery Example Liquid Fuels and Syngas Chemicals from: BL Gasifier, and Wood Residue Gasifier Black Liquor & Residuals Steam, Power & ChemicalsExtract portion of the hemicelluloseConvert the extract to Cellulose still used to Pulp ethanol and chemicals manufacture paper Manufacturing courtesy of: Del Raymond (Weyerhaeuser)
OMB R&D Investment Criteria (select few) Advanced Biomass R&D Sugar Feedstocks Direct and Bioconversion Lignin Sugar Intermediates Products Platform Residues Fuels, Integrate Combined Chemicals, Intermediates d Heat &Biomass Power Materials & Carbon- Intermediate based Clean Gas s Reﬁnerie s Thermochemical Direct Platform Thermochemical Conditioned Gas or Bio-oils Products Fossil Systems Integration Resources
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
OMB R&D Investment Criteria (select few)• 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 Distillers Grain and Corn Stover Blends - Abengoa Bioenergy Corporation is developing a novel biomass technology to use distillers 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.