Business Opportunities of Torrefaction Products

Transcription

1 Business Opportunities of Torrefaction Products Stephen Smith Consultant Helena, MT Torrefaction Slow pyrolysis Bake in absence of oxygen not combusted Products Bio char* Bio gas Liquid bio oil* Wood vinegar Electricity* Heat* (* Energy) Wikipedia Graphic For most of this presentation, torrefaction refers generically to any thermal modification process, including pyrolysis. 1

2 Low Value Inputs (Fuels) As is, where is Agricultural waste Forest thinning Forest wastes thinning, dead trees, limbs, etc. Potential tipping fees Lumber mill waste Municipal waste Used wood products Used treated wood 2

3 Exhaust Gas Stack Air Natural Excess Syn- Gas to boiler Wet Wood Syn- Gas to heater Burner & heat exchanger Rotary airlock Syn-Gas Recirculating gas heating Torrefaction Ties to Bio-Coal (pg 2) Cyclone Wood fines gas Wet ESP or multicyclone Air Natural gas Water Combustion gases Economizer Combustion gases Boiler Multi-Fuel Burner Cooling tower High Pressure Steam TSI Drier/Torrefier Turbine & Generator Electricity Sales Cooling screw Rotary airlock Char or Bio- Coal Solidification Pellet or Briquet Water Condensate Condenser W a t e r LP Steam Optional Steam heat sales to businesses Business Challenges Low Value of Energy Lack of renewable energy incentives No carbon market Higher solid output vs. lower value Heat Value of One Crosstie $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 Energy Value of Crossties Tie Heat NG Value Tie Heat Oil Value $5.00 $

4 Costs of Torrefaction (most other uses) Transport raw material Raw material cost Capital for equipment (storage, torrefaction, combustion, processing) Labor Economy of scale vs. dispersed raw materials Products & Sales from Torrefaction Tipping fees? Carbon credits? Energy products Gas, oil, bio coal (char) Electricity Heat Wood vinegar Carbon black Bio char 4

5 Value Added Products from Bio Char Bio Coal (least value) Renewable alternative to coal Can be co fired with coal Does not need specialized equipment Generally, hydrophobic Value Added Products from Bio Char Soil Amendment (Agricultural product) Most value in soil depleted of nutrients, organic matter Helps soils retain nutrients and water Improves farming productivity Sequesters carbon Source: International Biochar Initiative website: international.org/biochar/ 5

6 Carbon sequestration side benefit Sequestration by putting bio char in soil is real, but how much and who will pay? Source: International Biochar Initiative website: international.org/biochar/ Agricultural Soil Amendment Value high now, but variable, & likely to be lower as it becomes commodity. Ebay and Amazon advertising biochar at $40/cubit foot. Depleted, poor soil & dry climate favor use. Austin, 2018 Est bulk, future value at $100/ton, notes lack of carbon market and variable benefits to soil. UNR 2014 study on economics found questionable profit potential. Current market mostly related to high value crops, such as grapes and marijuana. 6

7 Environmental Products Water filtration Storm water runoff Activated carbon for industrial or drinking water Soil remediation Fix metals Hold and support degradation of organics, PAHs Support, enhance vegetation growth Air emission control PAC for mercury Organic or odor filtration Other Bio Char Potential Products Plastics extender Lithium Ion Batteries Natural gas storage Nano materials 7

8 Selling Bio Char & Associated Products Need plan to maximize value from all products Tipping fees and carbon credits can help Market and product knowledge evolving Marketing and market development critical Be flexible! 8