Technical and Economic Challenges of Biomass and Waste to Syngas

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1 Technical and Economic Challenges of Biomass and Waste to Syngas Feedstock, Process and Product Selection Armen Abazajian, Senior Consultant, Advisian Prepared for Presentation at the 2018 Global Syngas Technology Conference Colorado Springs, CO 10/30/2018 Copyright 2018, Advisian, A. Abazajian All rights reserved.

2 Overview 1. Introduction 2. Feedstocks 3. Processes 4. Products 5. Finding a solution 6. Case Study Red Rock Biofuel 7. The Future Advisian / 2

3 1. Introduction Advisian / 3

4 Biomass and Waste to Syngas Global WtE market was $25.3 billion in 2013 Projected to grow at 5.5% from 2016 to 2023 At average cost of $200 MM per plant - 7 plants per year, worldwide. Powerful Drivers: - Increase in population - Increase in GDP - GHG reduction Advisian / 4

5 WtE Processes Waste to Power is 88.2% of the market Waste to Syngas is a small portion of the market World Energy Council, World Energy Resources: Waste to Energy 2016 Advisian / 5

6 GDP vs. Waste Generation Europe is 47.6% of market in 2013 Japan incinerates 60% of its waste China fastest growing, doubling 2011 to 2015 World Energy Council, World Energy Resources: Waste to Energy 2016 Advisian / 6

7 Affluence and Population Density vs. WtE Effects of Affluence and Population Density on Waste Generation and Disposal, Ko Matsunaga, et al, Earth Engineering Center, Columbia University, NY Advisian / 7

8 2. Feedstocks Advisian / 8

9 Feedstock Challenges Physical shape and size variability Contamination Moisture content Chemical composition Advisian / 9

10 Physical Shape and Size Variability Mechanical equipment unable to handle strings Wide size distribution inherent to waste chipping process Large chunks bind mechanical equipment and gasify slowly Sawdust bridges and binds mechanical feed equipment Advisian / 10

11 Contamination MSW plastic film, glass, metal Waste wood nails, staples, plastic film, construction waste Forest and yard waste dirt Agricultural residue high mineral content, dust, dirt Advisian / 11

12 Chemical Composition Van Krevelen diagrams Chemical or fuel products have 2:1 H/C ratio <0.1 O/C ratio Biomass or waste is partially oxidized organic matter Residual heating value not enough to vaporize moisture and raise matter to gasification temperatures without large loss to CO 2 Advisian / 12

13 Biomass Structures Cellulose Hemicellulose Lignin Advisian / 13

14 3. Processes Advisian / 14

15 Gasification Technologies Chemical Gas turbine Biomass co-feed Oxygenblown high pressure Boiler Gas engine? Many reference units Plasma Airblown Atm. Chemical Gas engine Gas turbine Few reference units Indirect heating Chemical Demo units Advisian / 15

16 Key Challenges Unconverted char Tar management/processing Balancing CO/H 2 production vs. heating value Wobbe Index for fuel gas applications Transferring sufficient heat into the biomass/waste to achieve desired reaction temperatures Advisian / 16

17 4. Products Advisian / 17

18 Methanol/Acetyls Value Chain Advisian / 18

19 Ammonia Value Chain Advisian / 19

20 Fuels Value Chain Advisian / 20

21 5. Finding a Solution Advisian / 21

22 The Driving Force Increase value of sales Renewable power incentives RIN / biofuel credits Higher value products Reduce operating cost Economy of scale Reduce equipment Low pressure/low temperature Reduce feedstock cost Tipping fees PP SSSSSSSSSS OOOOOOOOOOOOOOOOOO FFFFFFFFFFFFFFFFFF CCCCCCCCCC + IIIIIIIIIIIIIIIIII Reduce CAPEX Low temperature/low pressure Economies of scale Technical innovation Reduce inventory Business processes Advisian / 22

23 Using Cost Models to Find Solutions Advisian / 23

24 Best Outcomes Over Input Ranges Advisian / 24

25 7. Case Study Advisian / 25

26 Red Rock Biofuels 15.1 MM gal/yr, approximately 1100 bpd of renewable fuels Lakeview, Oregon site Project fully funded $320 MM capital cost Groundbreaking July 2018 Startup expected December, Advisian / 26

27 8. Future Advisian / 27

28 Future Biomass and Waste Gasification History Gasification for combustion in boilers widely used Other applications developing Biomass and Waste Gasification Future: Competes with natural gas feeds - Tough in the North America - Much better in EU/Japan Competes with coal - Tough in China - But gaining ground with GDP growth, population growth Global pressure to reduce GHG Inexorable population and GDP growth Advisian / 28

29 Anticipate Regulatory changes Technology development Government/public investment Energy carrier price fluctuations Advisian / 29

30 What We Do Consulting and Engineering in: Refinery, Petrochemicals, Gasification Molecule management Concept selection Pre - FEED Economics and planning Technology selection Technology integration Operational Excellence Sulfur and Gas Treating Oxygen enrichment Gas treating solvents Infrastructure and Environmental Water Materials handling Management, Economics, and Business Operations Benchmarking Gap analysis Safety and environment Advisian / 30

31 Questions? Armen Abazajian Advisian, WorleyParsons Group Advisian / 31

32 Disclaimers DISCLAIMER This presentation has been prepared by a representative of Advisian. The presentation contains the professional and personal opinions of the presenter, which are given in good faith. As such, opinions presented herein may not always necessarily reflect the position of Advisian as a whole, its officers or executive. Any forward-looking statements included in this presentation will involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies many of which are outside the control of, and may be unknown to, Advisian. Advisian and all associated entities and representatives make no representation or warranty as to the accuracy, reliability or completeness of information in this document and do not take responsibility for updating any information or correcting any error or omission that may become apparent after this document has been issued. To the extent permitted by law, Advisian and its officers, employees, related bodies and agents disclaim all liability direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Advisian and/or any of its agents) for any loss or damage suffered by a recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. Advisian / 32

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