Biofuels Issues, Trends and Challenges

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Biofuels Issues, Trends and Challenges

"RENALT ENERGY" - providing integrated solutions to "Green" petrochemicals, integrated Bio-Refining /conventional oil Refining, and Biomass-to-chemicals, primarily through Energy and Process Consultancy.

Biomass-to-"Green" chemicals: Biomass-to-chemicals refers to the process of producing chemicals from Biomass. The major Biomass -to-chemicals processes utilized in worldwide, with our strategic focus on,  Biomass-to-methanol, MTO and MTP processes that produce the same chemical products, such as ethylene and propylene, as the petrochemical facilities, due to better cost efficiencies and greater demand for these chemicals.

We also have interest in, Biomass-to-olefins, Biomass-to-PVC, Biomass to-aromatics and Biomass-to-ammonia/urea processes.

We provide a broad range of integrated services spanning the project life-cycle from feasibility studies, consulting services, provision of proprietary technologies, design, engineering, and after-sale technical support.

     

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Biofuels Issues, Trends and Challenges

  1. 1. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels Issues, Trends and Challenges Gerard B. Hawkins Executive Director
  2. 2. RENALT ENERGY Renewable and Alternative Energy for the New Millennium This presentation looks at the opportunities and challenges in developing sustainable biofuels, focusing on ethanol and biodiesel, the most widely available biofuels To discover the other technology, operations and infrastructure improvements underway across the aviation industry.
  3. 3. “Biofuels is a collective term for liquid fuels derived from renewable sources, including ethanol, biodiesel, and other renewable liquid fuels.” Biofuels Definition RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  4. 4. Fuels derived from CO2-net neutral feedstocks. Impact Sectors • Transportation • Utilities • Manufacturing Gasoline Consumption Biofuels Definition RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  5. 5. •Manufacturing Gasoline Consumption RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  6. 6. Biomass to Renewable Fuels RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  7. 7. Other Routes to Renewable Fuels RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  8. 8. Biofuels: Market Highlights RENALT ENERGY Renewable and Alternative Energy for the New Millennium Ethanol grew from 8 percent of U.S. gasoline consumption by volume in 2009 to nearly 10 percent in 2011 and in the first eight months of 2012. With almost all gasoline in the United States already blended with 10 percent ethanol (E10), the maximum level approved for use in all cars and light trucks, significant increases in domestic consumption of ethanol face a blend wall unless higher percentage ethanol blends can achieve significant market penetration.
  9. 9. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights While the U.S. Environmental Protection Agency (EPA) has approved use of a 15 percent ethanol blend (E15) for model year 2001 and newer cars and light trucks, concerns related to automobile warranties, potential liability for misfueling, and infrastructure costs are likely to limit E15 use to low volumes in the near term.
  10. 10. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Exports of ethanol increased substantially as producers looked abroad for new markets and Brazil experienced a poor sugar harvest during 2011-12. In the 2010/11 agricultural marketing year,2 40 percent of the corn crop and 14 percent of soybean oil production was used to produce biofuels and other products, including distillers grains for use as animal feed. The federal excise tax credits for non-cellulosic ethanol and biodiesel and the ethanol import tariff expired at the end of 2011.
  11. 11. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights A serious drought in the midwestern United States during summer 2012 lowered production estimates for corn and other crops, resulting in higher prices and a reduced forecast for biofuels production for the 2012/13 marketing year. Plans for a pipeline to deliver ethanol from the Midwest to the Northeast were withdrawn during 2011.
  12. 12. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Cellulosic biofuels production to date is far below the targets set by the Energy Independence and Security Act of 2007 (EISA 2007). EPA issued waivers that substantially reduced the cellulosic biofuels obligation under RFS2 for the 2010, 2011, and 2012 program years.
  13. 13. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Even that anticipated level of commercial production failed to materialize. There was no production of cellulosic biofuels or Renewable Identification Numbers (RINs) in 2010 or 2011. While a small number of cellulosic RINs may be available to be applied towards the reduced RFS2 requirements for 2012 set under EPA’s waiver,4 production of cellulosic biofuel RINs in 2012 is likely to be well short of the reduced 2012 requirement.
  14. 14. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights World biofuels supply by type
  15. 15. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Ethanol and biodiesel U.S. summary, 2009-11 (million gallons unless otherwise noted)
  16. 16. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Conventional and Advanced Biofuels
  17. 17. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Advanced Biofuels
  18. 18. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights
  19. 19. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Conventional Bioethanol: EU Production, Supply and Demand Table
  20. 20. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Conventional Bioethanol: EU Production, Supply and Demand Table
  21. 21. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Conventional Bioethanol: Production Capacity
  22. 22. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Feedstock Use
  23. 23. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Conventional Biodiesel: EU Production, Supply and Demand Table
  24. 24. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Conventional Biodiesel: EU Production, Supply and Demand Table
  25. 25. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels: Market Highlights Conventional Biodiesel: EU Production, Supply and Demand Table
  26. 26. Biofuels: Incentives for Expansion Legislation and regulations are important factors in the production and consumption of ethanol and biodiesel. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Processing plants are being built to produce the required annual volumes and market participants are sensitive to legislative and regulatory developments. RFS structure with 2022 mandated volumes (Billion gallons)
  27. 27. Biofuels: Incentives for Expansion EPA issues new rules for biofuels use each year establishing the Renewable Fuel Standard (RFS2) volume requirements and associated percentage standards that will apply in the following calendar year for cellulosic biofuels, biomass-based diesel, advanced biofuels, and total renewable fuel. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Renewable Fuel Standard in billions of gallons per year
  28. 28. Biofuels: Incentives for Expansion EPA granted approval in January 2011 for the use of gasoline blended with 15 percent ethanol (E15) in model year 2001 and newer vehicles. − Numerous ethanol producers received approval to sell their products for blending into E15. − The first gallons of E15 were sold in July 2012 in Lawrence, Kansas. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Key legislation and regulations issued since 2009
  29. 29. Biofuels: Incentives for Expansion California continued work on the Low Carbon Fuel Standard (LCFS), a state-enacted policy to reduce greenhouse gas emissions from motor vehicles. − Implementation began in January 2011 but was halted by an injunction in December 2011 as two separate lawsuits worked their way through the state and federal courts. − The injunction was lifted in April 2012 but litigation continues. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Key legislation and regulations issued since 2009
  30. 30. Biofuels: Incentives for Expansion The Volumetric Ethanol Excise Tax Credit (VEETC) of $0.45 per gallon of ethanol blended with gasoline expired on December 31, 2011. The $0.54-per-gallon tariff imposed on imported fuel ethanol expired on December 31, 2011. The retroactive reinstatement of the $1.00-per-gallon biodiesel tax credit that occurred in late 2010 was effective for biodiesel produced in 2010 through its expiration at the end of 2011. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Key legislation and regulations issued since 2009
  31. 31. Biofuels: Incentives for Expansion Energy Act of 1992 •USDA Commodity Credit Corporation's (CCC) Bioenergy Program •Energy Policy Act of 2005 [the Renewable Fuels Standard (RFS) phase-in]–2 Provisions RENALT ENERGY Renewable and Alternative Energy for the New Millennium Earlier Key legislation and regulations
  32. 32. Biofuels: Incentives for Expansion •EPA Diesel Regulations - Introduction of ultra-low sulfur diesel (ULSD) - Biodiesel as lubricant additive (causes engine damage). - Addition of B2 restores lubricity. RENALT ENERGY Renewable and Alternative Energy for the New Millennium Earlier Key legislation and regulations
  33. 33. Biofuels: Incentives for Expansion RENALT ENERGY Renewable and Alternative Energy for the New Millennium Selected world biofuel policies
  34. 34. Biofuels Production Methods RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biofuels production technology continues to improve, both for mature processes, such as corn- based ethanol and vegetable oil- based biodiesel, and for new processes, such as renewable diesel, renewable jet fuel, and cellulosic biofuels.
  35. 35. Biofuels Production Methods RENALT ENERGY Renewable and Alternative Energy for the New Millennium Biodiesel producers have diversified their slate of raw materials from primarily soybean oil to a mix including: -soybean oil, -- non-food-grade corn oil, -- various types of waste greases
  36. 36. Biofuels Production Methods RENALT ENERGY Renewable and Alternative Energy for the New Millennium Traditional biodiesel cannot be commingled with jet fuel in product pipelines in any measurable quantity, due to biodiesel’s solvent properties48 and potential problems with materials compatibility. Biofuels producers therefore looked to a different production technology that would use the same inputs normally used for biodiesel.
  37. 37. Biofuels Production Methods RENALT ENERGY Renewable and Alternative Energy for the New Millennium Instead of the reaction of renewable oil with alcohol to produce biodiesel, the renewable oil can be reacted with hydrogen (hydrotreated) to produce a drop-in fuel compatible with existing infrastructure and equipment. This process can be used to produce renewable jet fuel or renewable diesel fuel that does not adversely affect jet fuel when the two products are shipped on the same petroleum product pipeline.
  38. 38. Cellulosic Production RENALT ENERGY Renewable and Alternative Energy for the New Millennium Progress on the commercialization of cellulosic biofuels has been slower than envisioned in 2007, when the RFS2 was enacted. The original RFS2 legislation called for 100 million gallons of cellulosic biofuel consumption in 2010.
  39. 39. Cellulosic Production RENALT ENERGY Renewable and Alternative Energy for the New Millennium Cellulosic biofuels projected production and actual domestic sales, 2010-12
  40. 40. Cellulosic Production RENALT ENERGY Renewable and Alternative Energy for the New Millennium Selected cellulosic biofuels projects studied by EIA, 2009-12
  41. 41. Cellulosic Production RENALT ENERGY Renewable and Alternative Energy for the New Millennium Cellulosic biofuels projects currently projected to produce commercial volumes during 2012 or 2013
  42. 42. Biofuels Key points about biofuels Produced from renewable biological resources such as plant material (rather than traditional fossil fuels like coal, oil and natural gas). Absorbs carbon dioxide from the atmosphere as the plant matter (biomass) is grown, which is then released back into the atmosphere when the fuel is burnt. RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  43. 43. Biofuels Key points about biofuels First-generation biofuels have been used for a number of years for transport, home heating, power generation from stationary engines, and cooking. Second-generation biofuels are derived from new sources that do not compete for resources with food supplies and can be used in aviation. RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  44. 44. Biomass to Biofuels: Possible Routes RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  45. 45. Biomass to Fuels RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  46. 46. Next Generation Technologies Maximize C Conversion Non-food feedstocks RENALT ENERGY Renewable and Alternative Energy for the New Millennium
  47. 47. RENALT ENERGY •Biogas upgrading using membranes templated with supercritical (Sc) CO2. •Advanced concept in C sequestration: CO2recycling by catalytic conversion into bioalcohols. •Ultra-deep (< 5 ppm) sulfur removal from biomass- derived fuels: The next-generation nano catalyst based technology. •High conversion once-through catalysis: Biomass- derived syngas to renewable diesel. Research Projects
  48. 48. RENALT ENERGY •Advanced concept in C sequestration: CO2recycling by catalytic conversion into bioalcohols. •Biofuel combustion: combustion characteristics and emissions. •PEM fuel cells (Bipolar plate technology): efficiency management with bioalcohols as fuel feed. •H2 production by thermophillic bacteria. •Interaction of biofuels with skin tissue: Potential toxicity of oxygenated fuels. Research Projects
  49. 49. RENALT ENERGY Renewable and Alternative Energy for the New Millennium APPENDIX: EIA Estimates
  50. 50. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  51. 51. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  52. 52. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  53. 53. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  54. 54. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  55. 55. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  56. 56. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  57. 57. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  58. 58. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  59. 59. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  60. 60. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  61. 61. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  62. 62. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  63. 63. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  64. 64. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  65. 65. RENALT ENERGY Renewable and Alternative Energy for the New Millennium EIA Estimates for Transportation Sector
  66. 66. RENALT ENERGY Renewable and Alternative Energy for the New Millennium "RENALT ENERGY" - providing integrated solutions to "Green" petrochemicals, integrated Bio-Refining /conventional oil Refining, and Biomass-to-chemicals, primarily through Energy and Process Consultancy. Biomass-to-"Green" chemicals: Biomass-to-chemicals refers to the process of producing chemicals from Biomass. The major Biomass - to-chemicals processes utilized in worldwide, with our strategic focus on, Biomass-to-methanol, MTO and MTP processes that produce the same chemical products, such as ethylene and propylene, as the petrochemical facilities, due to better cost efficiencies and greater demand for these chemicals.
  67. 67. RENALT ENERGY Renewable and Alternative Energy for the New Millennium We also have interest in, Biomass-to-olefins, Biomass-to- PVC, Biomass to-aromatics and Biomass-to-ammonia/urea processes. We provide a broad range of integrated services spanning the project life-cycle from feasibility studies, consulting services, provision of proprietary technologies, design, engineering, and after-sale technical support. www.renaltenergy.com

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