from the Pulp Industry Efficient Green Fuel Production.. CHEMREC Energy to Succeed

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1 Efficient Green Fuel Production.. from the Pulp Industry Gasification Technologies Conference October , San Francisco Ingvar Landälv, Chief Technology Officer, Chemrec AB 1

2 Some History & Technology Overview

3 Chemrec Messages at GTC Conferences October 2006 Washington DC: Chemrec technology development and plans Sept. 2005: New Development Plant (3MW, 30 bar, O 2 -blown) started as a final development stage of the Chemrec BLG technology May 2006: After 8 months of various start up issues the plant started to produce good syngas and green liquor Syngas flared (No original plan to build a downstream plant) October 2009, Colorado Springs Dec 2006/Nov 2008: New Owners in Chemrec (Volvo, VPVP, ETF) Early 2007: Decision to apply for a grant from EU 7 th FP for the BioDME project coordinated by Volvo Sept. 2008: Start of the $40MM (total budget) BioDME project 1Q 2009: Application of investment support for first industrial sized Chemrec technology based plant. Sept. 2009: Approved ~80$MM grant from Swedish Energy Agency. 3

4 A typical Pulp Mill of Today 1 Power and heat 2 Chem. recovery Pulp Pulp Wood 1 2 Black liquor Utility Boiler Recovery Boiler 10/21/2011 4

5 The Pulp Mill turned to a Biorefinery With the Chemrec Concept 1 Power and heat 2 Chem. recovery 3 Fuel 4 Extra renewable energy The Digester does the feedstock pretreatment work! Pulp Pulp Wood 2 Black liquor 1 Utility Boiler Power and Steam Renewable energy 10/21/ Black Liq. Gasific. Syngas Syngas to fuels 3 Fuels

6 Some basics about Black Liquor Black Liquor is a Liquid Easy to feed to a pressurized gasifier Can be atomized to fine droplets Rapid gasification rates Stable properties over time Black Liquor is an efficient gasification fuel Full carbon conversion at ~1000 deg C Virtually no tar formation Low methane formation Black Liquor is available in large quantities World BL capacity about 660 TWh Corresponds to production of ~ 10 billion gal gasoline equivalents per year Typically MW of BL per pulp mill 6

7 Whell to Wheel CO2 emissions and total energy consumption for some different path ways Total emission of greenhouse gases (g CO2 eqv / km) Fuels fron coal, CtL Gasoline & diesel DME from Black liquor FT from biomass US corn-based ethanol Cellulosic Ethanol Total energy consumption (MJ / 100 km) Conventional gasoline Conventional diesel Biodiesel: Glycerin as chemical Biodiesel: Glycerin as animal feed Syndiesel: Coal Syndiesel: Natural gas Syndiesel: Biomass Syndiesel: Black liquor DME: Coal DME: Natural gas DME: Biomass DME: Black liquor EtOH: Wheat, straw CHP, DDGS as AF EtOH: Sugar cane (Brazil) EtOH: Wheat, straw CHP, DDGS fuel EtOH: Cellulose EtOH: Wheat straw EtOH: Wheat, coal CHP, DDGS as AF EtOH: Wheat, coal CHP, DDGS fuel EtOH: Wheat, NG GT+CHP, DDGS AF EtOH: Wheat NG GT+CHP, DDGS fuel Biogas: Municipal waste Biogas: Manure Source: EUCAR/CONCAWE/JRC 7 10/21/2011

8 Technology Development Highlights

9 Development Plant for Oxygen-blown high pressure BL gasification Located at the SmurfitKappa mill in Pitea, Sweden Oxygen-blown and operated at 30 bar(g) Capacity 20 metric tons per day of black liquor solids (3 MWth) Used for technical development and design verification Started up 2005 Now in operation more than hours. Operations: 10 operators in 5 shifts 10/21/2011 9

10 Key Technology Development Areas Burner Syngas quality Ceramic lining Green liquor quality 10

11 Ceramic lining Burner nozzle Developments Special lining for a very Strong alkaline environment Na + K ~40-50 w-% in smelt Operates ~300 C above melting point Gasification temp. ~1050 C Operation life length ~ 2 years Well performing nozzles results in 11

12 Green Liquor Samples 25 May 2007: Low Content of Char, No Soot and Excellent Settling of Dregs good quality green liquor AND 10/21/

13 Black Liquor GREEN LIQUOR Atomizing medium Oxygen GASIFIER QUENCH Weak Wash Gas composition for a typical case (p = 27 bar, λ = 0.3, T = 1050 ºC) C.W BFW GAS COOLER BFW Raw Syngas Condensate 10/18/ LP- St. White/Green Liquor SULPHUR CH ABSORPTION ± ±0.07 CLEAN SYNGAS Average of ten samples per sample point Data by the BLG Program R. Gebart et al, TCBiomass 2009 Inside reactor (%) Cooled syngas (%) CO ± ±0.2 H 2 S 1.65 ± ±0.02 CO 28.7 ± ±0.2 H ± ±0.1 MP-Steam FLARE COS 468 ±22 ppm 122 ±5 ppm H 2 /CO 1.19 ± ±0.01 H 2 /CO ± ±0.01 CO/CO ± ±0.01 good quality raw syngas

14 Trace elements in cooled, raw syngas Element Average Gas Concentration (ppb by weight) Fe <1.8 K <1.8 Li <0.02 Na <17.4 Ni <0.05 NH4-N 89.5 Cl 1297 Br <1.0 I <4.6 CN total <0.5 F <2.6 * Data by the BLG Program, R. Gebart et al, TCBiomass 2009

15 Chemrec s Core Business: Generate a Good Quality Green Syngas Green CO 2 FT vax / FT Diesel Gasoline Good Quality Raw Syngas Gas cleaning & Conditioning Mixed alcohols Ammonia Hydrogen Renewable Urea Chemrec Core Business Carbon monoxide Methanol CO Formaldehyde Acetic acid DME Esters and ethers

16 Chemrec s Project Plan Good Quality Raw Syngas Chemrec Core Business Green CO 2 US #1 venture Gas cleaning & Conditioning Domsjö project BioDME Project FT vax / FT Diesel Gasoline Mixed alcohols Ammonia Hydrogen Carbon monoxide Methanol CO US #2 venture Renewable Urea Formaldehyde Acetic acid DME Esters and ethers

17 Chemrec site in Piteå, northern Sweden

18 THE PROJECT Supported by: *) *) The Swedish Energency 18

19 The BioDME Project Demonstration of BioDME production and its use as fuel in heavy duty (HD) trucks Syngas DME Synthesis Fuel system equipment Lubricants, Additives Distribution, Stations Vehicle Manufacturing and Testing Grant funding:

20 DP-1 unit Black Liquor Oxygen Gasification Block Flow Diagram The plant Carbon filter CO shift Gas conditioning Amine wash H 2 S / CO 2 to pulp mill incinerator MeOH Synthesis 2 Syngas Compressor Sulphur guard MeOH Synthesis 1 First single-pass MeOH synthesis featuring > 95% yield MeOH (recycled) Off gases DME Product ~ 4 ton DME/day DME synthesis DME synthesis & product purification Water

21 The BioDME project at the Smurfit Kappa Kraftliner Mill in Piteå. The Chemrec concept

22 The BioDME project at the Smurfit Kappa Kraftliner Mill in Piteå. The Chemrec concept. 1. Pulpwood feedstock is chopped into wood chips 2. Wood chips are fed to the digester together with white liquor and become a fiber rich stream (pulp) and a stream containing the rest, thin black liquor 3. After further processing pulp becomes paper in the paper machines 4. Thin liquor is turned into black (thick) liquor in the evaporators 5. Black liquor (BL) is burned in the recovery boiler..but 6. A part stream (~1 % ) is gasified in Chemrec s DP-1 gasifier. Note: At full scale 100% of the BL will be gasified 7. Raw synthesis gas from DP-1 is purified, shifted, compressed and finally converted into 4 t/d BioDME in the new BioDME plant 8. To compensate the mill for the loss of BL energy which has been gasified extra biomass is fed to the mill 9. The biomass is converted into power and heat in an efficient H&P boiler 22

23 Some facts about the BioDME project DME Production capacity: 4 tons / day Pipe installation: Hand valves & on/off valves: ~ m ~1400 pieces Instruments: Vessels: Heat exchangers: ~450 pieces ~30 pieces ~25 pieces Process Plant Foot Print 20 x 30 m Construction cost: ~ $28 million 23 European Project BioDME 7th Framework Programme

24 Final construction - Late Autumn/winter 2010 Severe Winter conditions on site stressed the importance of winterization of the plant By at the10th of January all critical construction work was finalized.

25 Pre-commissioning during winter condition

26 BioBME Plant Start-Up Start of gasifier and new flare system June 6th. Start of Bio-MeOH production July 18th

27 First Bio-methanol produced Methanol sample from intermediate methanol production step Before host mill outage in 1 August mid September ~7 m 3 MeOH was produced Minor changes in the BIoDME plant. Restart in October

28 Long-haul HD vehicles and fleet operators consumes about 25% of total Swedish fuel consumption ~25 stations needed for basic coverage in Sweden (HD) Investment about Euro per Filling Station Distribution system easily accomplished Utilizes LPG technology, modified for DME Stockholm BioDME filling Station SWEDEN Investment 28

29 9 Trucks in Field Test

30 Accumulated Milage km ( miles) Milage last week (Oct. 3-7): 8165 km (5075 miles) 30

31 Chemrec Industrial Scale Demonstration at Domsjö Fabriker, Örnsköldsvik, Sweden 10/21/

32 The Domsjö extended Biorefinery with the Chemrec Concept 1 Power and heat 2 Chem. recovery 3 Fuel 4 Extra renewable energy Ligno sulphonate 60 kton/y Pure cellulosic fibre 255 kton/y Ethanol 15 kton/y Pulp Wood S 2 Sodium sulphite thick liquor Power and Steam Woody Biomass 10/21/ Existing Boilers ~200 MW Black Liq. Gasific. Syngas 3 Methanol 140 kton/y or DME 100 kton/y

33 Current Status of Domsjö Project & in collaboration Domsjö mill liquor gasified successfully in DP-1, Piteå Investment support of 70 MMUSD granted by Swedish Energy Agency Sept 2009 and finally approved by EU s DG Competition 1Q 2011 Feasibility report completed (March 2010) Technology for Gas Purification and MeOH/DME Synthesis selected Front-end Engineering Design (FEED) scheduled for Q to Q for final investment decision in Q Planned production start 2015

34 Black Liquor Capacity World Wide 1 MW = 3.41 MMBTU Domsjö: ~200 MW Europe: 20 GW Domsjö x 100 Sweden: 5 GW Domsjö x 25 N. America: 35 GW Domsjö x 175 Asia: 17 GW Domsjö x 85 S. America: 11 GW Domsjö x 55 The World: 86 GW Domsjö x 430

35 Summary and Conclusions Gasification of black liquor has proven to work excellent under both atmospheric and pressurized conditions (> h of operating experience) The generated syngas is OK to be passed to a synthesis process after being treated in standard gas cleaning processes The BioDME plant has successfully been started up and will be in full production in the coming month. A truck fleet is in operation and will soon run on BioDME from the plant. The Domsjö industrial sized plant will within short start its FEED phase (FEED contractor and technology providers in place) The Chemrec black liquor to fuels & chemicals plants can be built by world class EPC contractors with wrap-around guarantees Two US black liquor to fuels (gasoline and FT-wax) ventures are under development 35

36 With support from and in collaboration with 36