Chemical and Engineering. Åbo Akademi, 3 May 2010 SVP Markku Karlsson, UPM-Kymmene

Transcription

1 The Forest based Biorefinery - Chemical and Engineering Challenges and Opportunities Introduction Åbo Akademi, 3 May 2010 SVP Markku Karlsson, UPM-Kymmene

2 Content Strategic initiatives - Forest industry situation - EIBI - Forest industry renewal Biorefinery development - UPM s biofuels concept portfolio - 2nd generation biofuels from reserch to demonstrations - Nanocellulose - Biochemicals - Biocomposites Summary 2 UPMU

3 FOREST INDUSTRY SITUATION Wood flows by end uses in EU-27 3 UPMU Source: Pöyry

4 FOREST INDUSTRY SITUATION World consumption of paper-making fibre Source: Pöyry 4 UPMU

5 FOREST INDUSTRY SITUATION Forest Industry profitability Profit before taxes in selected forest industry companies relative to turnover (Source: Finnish Forest Industries Federation) 5 UPMU

6 FOREST INDUSTRY SITUATION Graphic paper demand and capacity Europe North America 1,000t 1,000t 1000t 1,000t Asia +5% % % % % % % % W. Euro demand E. Euro demand Capacity NA demand Capacity Asia demand Capacity 6 UPMU Source: Cepiprint, Cepifine, PPPC, PPI 6

7 PRODUCTION OF 2ND GENERATION BIOFUELS Demand for biofuels will grow remarkably in EU by 2020 EU climate and energy goals for year 2020: - 20 % reduction of CO 2 emissions - 20 % energy from renewable sources - 20 % improvement in energy efficiency - 10 % biofuels in transport Mil. t Forecasted demand for biodiesel in EU EU renewable energy (RES) directive favours advanced biofuels: - advanced biofuels which are produced from lignocelluloses, waste and residue based raw materials are double counted when calculating renewable target 5% of these would be regarded as 10% National targets given for Finland: - 16% GHG reduction in non emission trading sector %-units RES to 38% share of energy consumption - Implementation ti Plan in June 2010 to be submitted to EC CAGR* 32% CAGR* 13% (30%) *) Calculated annul growth rate Source: Directive of the European Parliament and of the Council on The Promotion of the Use of Energy from Renewable Sources 7 UPMU

8 BIOMASS FEEDSTOCKS EXPECTATIONS FROM INDUSTRY Biomass supply in EU-27 will be scarce In 2020 a gap of Mm 3 biomass predicted Estimation of EU-27 woody biomass gap 2020 Mm 3 1, biomass supply Additional supply potential Biomass gap Biomass demand 2020 Biomass gap in EU-27 will drive imports and global trade 8 UPMU

9 ACTIONS FOR FOREST INDUSTRY RENEWAL Acceleration of market introduction EU SET-Strategic Energy Technology Plan for 2020 US Department of Energy European industrial initiatives Large demonstration actions supported by RTD Indicative budget in about 60 B for seven demonstration programmes, CCS, Bioenergy, Wind, PV, Smart grids etc. EERA - European Energy Research Alliance started R&D/ Technology Policy Future Actions Market/Capital Investments 9 UPMU

10 PRODUCTION OF 2ND GENERATION BIOFUELS Bio-pathways project in Canada Main conclusions: Canada has both a natural and a strategic advantage to grasp the enormous potential of the bio-economy. Lumber sector is the cornerstone to the competitiveness of the traditional and emerging forest products industry. Some paper segments will show financial potential under a bio-refinery scenario. Bioeconomic opportunity is stronger when integrated within the traditional industry s operations rather than on a stand-alone basis. Government policy can play dramatic role in skewing bio-industries performance Companies that make the conversion can begin to cash in on a rapidly-growing international market for clean energy and carbon-neutral products. But there is no time to lose. 10 UPMU

11 EUROPEAN INDUSTRIAL BIOENERGY INITIATIVE (EIBI) Objectives and activities Markku Karlsson Vice Chair of EBTP Steering Committee Chair of Working Group 1 Biomass Availability and Supply / UPM Kymmene 14th April rd Stakeholder Plenary Meeting

12 14th April rd Stakeholder Plenary Meeting Source: Erik ten Elshof, 2008.

13 EBTP proposal for EIBI EIBI: objective, activities, budget Key objectives Enabling commercial availability of advanced bioenergy at large scale by 2020, including advanced biofuels covering up to 4 % of EU transportation energy needs by Strengthening EU world technology leadership for renewable transport fuels, in particular for diesel and jet engines, serving the fastest growing area of transport fuels in the world. Core activity Selection and funding of demonstration and reference plants, via calls for projects Demonstration: outcome of demo unit should allow first commercial unit to be designed and performance guaranteed. Reference plant: first commercial scale unit Estimated budget : 8 billion over 10 years, to fund 15 to 20 demonstration and / or reference plants 14th April rd Stakeholder Plenary Meeting

14 BIO-DIESEL BTL PLANT CASE Current status: t Conceptual study completed Out Side Battery Limit Engineering study for Kymi & Rauma complited Environmental Impact Assessment in 3 locations Biomass dryer test runs completed Piloting of biomass gasifier on going Demonstration of the whole concept planned Next steps: Final technology / consept decision Basic Engineering & Permitting TOTAL INVESTMENT COST ABOUT 350 MEUR. FUNDING IS EXPECTED THROUGH PUBLIC/PRIVATE PARTNERSHIP. Biomass Biomass dryer Dried biomass Gasifier biomass is converted to gaseous form Raw Syngas Purification cooling, cleaning reforming shift Clean syngas FT synthesis H2 + CO Converted to CxHy Biocrude Product upgrade 2G Syn-fuel 14th April rd Stakeholder Plenary Meeting

15 EBTP proposal for EIBI d) Budget, Timing & 7 generic value chains Estimated # of demo / reference needed Total estimate d budget M 1 Synthetic fuels / hydrocarbons from Funding biomass via gasification 1 D 2 R 1700 Public funding M Comments Ratio Public Grant /RSFF* %/50% 2 Bio-methane and other gaseous fuels from biomass via gasification 1 D,2 R %/50% 3 High efficiency power generation via gasification of biomass 2 R %/50% 4 Bioenergy carriers from biomass via other thermochemical processes like pyrolysis, torrefaction etc. 2 R %/50% 5 Ethanol and higher alcohols from carbohydrates containing biomass [1] 1D 2 R %/50% Overview on estimated Budget per value chain *RSFF = Risk Sharing Finance Facility 14th April Renewable hydrocarbons from carbohydrates containing biomass via 2 D biological and/or chemical process 1 R 7 Production of bioenergy carriers from CO2 & sunlight through micro-organism based production (algae, bacteria etc.) and further upgrading into transportation fuels and valuable bio-products Additional activities B 3rd Stakeholder Plenary Meeting - Contribution to production and harvesting of biomass - Reserve for still unidentified value chains TOTAL 2-3 D 1 R %/50% %/50% %/50%

16 Forest industry renewal

17 ACTIONS FOR FOREST INDUSTRY RENEWAL The sixth industrial revolution is biobased Inn novation 1. wave Iron Water power Machines Textile Trade 2. wave Steam engine Railways Steel Cotton 3. wave Electricity Chemicals Combustion engine 4. wave Petrochemicals Aircrafts and space Electronics 5. wave Digital web Biotechnology Information technology 6. wave Sustainable bioeconomy Green chemicals Industrial ecology Renewable energy Green nanotechnology Source: FFIF UPMU

18 ACTIONS FOR FOREST INDUSTRY RENEWAL Bio-based products have substantial markets Added value Nano products Future e.g. composite products e.g. forest residue, bio oil and bio ethanol Volume grows Biochemicals Biomaterials Biofuels for transport Bioenergy heat and electricity for industry and householdsh Pulp, paper, plywood and timber products Next-generation biodiesel: emissions 85% lower than with fossil fuels Wood-based biomass procurement and logistics 18 UPMU

19 ACTIONS FOR FOREST INDUSTRY RENEWAL Production of 2nd generation biofuels Sustainable development = radical reduction of CO 2 + Non-food + sustainable value chain Logs for wood products Plywood and sawn timber Raw material integr. 5 Renewing Forest biomass industry Forestry Harvesting Logistics Assortment Drying Fibre wood for pulp and paper Logging residues, bark and stumps Gre een power and heat Pulp and paper Energy integration 1 2 Biofuels / Biochemicals 3 Residues 5 Recycling 4 1 Biodiesel (BTL) 2 Bioethanol 3 Bio-oiloil 4 Bio-coal 5 Bio-composite 19 UPMU

20 ACTIONS FOR FOREST INDUSTRY RENEWAL Finnish Forest Industry Roadmap Business portfolio, commercialization level Filler content increase in paper products Resource thrifty paper process Agrofibre pulping p technology P&P and biofuel production integration New paper products based on enabling technologies Biochemical extraction from wood Minimill i ill Biomass concept gasification to syngas and BTL Cellulosic ethanol production New Bio-oil production from wood Nano Technology National Competitiveness paper-based services Emerging Market Energy Markets New Businesses UPMU

21 UPM s Biofuel Concept p Portfolio

22 PRODUCTION OF 2ND GENERATION BIOFUELS UPM The Biofore Company Current activities 22 24,000 employees Sales 9.5 billion euros Production in 14 countries, worldwide sales network Listed in the NASDAQ OMX Helsinki Ltd. UPMU Energy and Pulp Paper Engineered Materials On-going new activities iti and future opportunities RFID tags Biocomposites Biofuels Biochemicals In the next few years, UPM plans to become a significant player in the field of second generation biofuels

23 PRODUCTION OF 2ND GENERATION BIOFUELS UPM's Biofuel Concept Portfolio 1 BTL Wood biodiesel Kymi, Rauma and Stracel mill sites are evaluated for the possible commercial scale Biomass to Liquids plant. In the process, energy wood is converted into high quality diesel fuel. Gasification and gas cleanup are piloted at the Gas Technology Institute's s pilot plant in Chicago in co-operation with Andritz 2 Bioethanol Bioethanol concept is being developed together with a project consortium. Commercial and industrial wastes are used as raw material for enzymatic ethanol production. Ethanol is used as a gasoline blending component. 3 Bio-oil Pyrolysis oil production concept is developed together with Metso and Fortum. Energy wood is used as raw material and the production is integrated into a power boiler. Bio-oil is mainly used as a substitute for fossil light and heavy fuel oil in heating applications. 23 UPMU BTL = Biomass to Liquids

24 PRODUCTION OF 2ND GENERATION BIOFUELS Value-add from integrated biorefineries Integrated Virgin Biorefinery Pulp Heat & Power generation Paper Waste water treatment Bio- Chemicals, Bio-oil, FT crude Bio- Composites Integrated Urban Biorefinery DIP Paper Waste Heat & Power generation Waste water treatment Waste to Energy Bio- Ethanol Bio- Composites 24 UPMU Now

25 PRODUCTION OF 2ND GENERATION BIOFUELS Three concepts in piloting stage and EIAs* in 3 different locations 1 Biodiesel Biodiesel mill at Kymi 2 Bioethanol Biodiesel mill at Rauma 3 Bio-oil oil 25 UPMU * Environmental Impact Assesment + Biodiesel mill at Stracel

26 PRODUCTION OF 2ND GENERATION BIOFUELS Scenario of the Biofuels Business Potential Analysis 4 Mtoe Liquid biofuels in European pulp and paper industry by year UPMU

27 PRODUCTION OF 2ND GENERATION BIOFUELS 2G bioethanol concept 2 Waste Waste Ethanol/ Bioethanol / Biogas "0" fibres handling Biogas plant Water CHP treatment plant J. Pöyry design for a m 3 /a bioethanol unit Paper mill units Pulp & paper mill Additional units Material flow Energy flow 27 UPMU

28 PRODUCTION OF 2ND GENERATION BIOFUELS Bio-ethanol status FibreEtOH From a waste to a valuable biofuel The innovative focus in the FibreEtOH project is to demonstrate for the first time globally in a commercial scale a cost efficient paper fibre based ethanol production with high, > 70 % overall energy efficiency with high > 50 % green house gas reduction. The proposed demonstration plant with m3/a ethanol production capacity will be build using t/a waste The project is led by UPM Kymmene a leading forest products industrial player and is supported by the EC with 8.6 million. 28 UPMU Ref: Press release of EU Commission, April 2010

29 PRODUCTION OF 2ND GENERATION BIOFUELS 2G bio-oil concept CHPF* 3 Bio-oiloil Drying Pyrolysis Forest residues Water treatment CHP plant Paper mill units Wood handling Pulp wood Paper mill Additional units Material flow Energy flow 29 *Combined heat, power and fuel UPMU 29

30 PRODUCTION OF 2ND GENERATION BIOFUELS Case Biofuels R&D and D&D value chains EU FP7 R&D EUdemoprograms (EIBI) D&D Technology foresight Portfolio Management Technology program Fortum UPM, VTT, Universities Metso Industry consortium Tekes open technology program Pyrolysis Finnish Academy open scientific program SuSEn TEM Energy subsidies bidi Tekes Demo program UPMU UPM 30

31 PRODUCTION OF 2ND GENERATION BIOFUELS Integrated bio-oil production Pyrolysis piloting at Metso s R&D Center in Tampere, Finland Metso, UPM, Fortum and VTT have developed an integrated biomass-based bio-oil production concept to provide an alternative to fossil fuels The consortium has developed a bio-oil production process in which a pyrolysis reactor is linked to a conventional fluidized bed boiler Proof-of-concept has been done: More than 70 tons of bio-oil have been produced from sawdust and forest residues Longest continuous test run has been over 200 hours Bio-oil utilization has been proven More than 20 tons of bio-oil has been used to replace heavy fuel oil at district heating boiler in Masala, Finland 31 UPMU

32 PRODUCTION OF 2ND GENERATION BIOFUELS 2G biodiesel concept 1 Biomass drying Gasification & purification H 2 +CO FT-synthesis & up-grading Synthetic biodiesel C n H 2n+2 Bark Stumps Water treatment CHP plant Residues Gas Technology Institute, Des Plaines, Illinois, US Paper mill units Wood handling Pulp wood Pulp & paper mill Additional units Material flow Energy flow 32 UPMU 32

33 Second Generation Bio-diesel Second Generation Bio-diesel from piloting to demonstrations

34 FROM PILOTING TO DEMONSTRATIOS UPM is evaluating the suitability of mill sites for the commercial scale BTL plant Environmental impact assessment at Kymi and Rauma mills in Finland and Stracel mill in France - Integration to existing pulp or paper mill will increase efficiency. The technical concept is being finalised - pilotiting plant at Gas Technology Institute in Chicago together with Andritz/Carbona. UPM's BTL-biodiesel is well suited for the current diesel motor technology and fuel distribution infrastructure. The investment t decision i can be made after the piloting program has been finished and the final technical concept has been selected. 34 UPMU

35 FROM PILOTING TO DEMONSTRATIOS Feed stock pretreatment Feed stocks consists of bark, forest residue and stumps Thermal drying at UPM Rauma mill and pelletization before shipment Total amount ~ 600 t (metric) 35 UPMU

36 FROM PILOTING TO DEMONSTRATIOS The Pilot Plant facilities at the GTI are used as testing platforms for Gasification and Gas Cleanup for the BTL process Pilot Plant sections: Gasification Plant (FFTF) Gas cleanup and processing (AGTF) Main characteristics of the Pilot Plant: Oxygen blown pressurized fluidized bed gasification Catalytic tar reforming & gas cleanup Plant capacity is 7-17 MMBtu/h (2-5 MW th ) biomass fuel input Source: GTI 36 UPMU

37 FROM PILOTING TO DEMONSTRATIOS Purpose of FFTF Pilot testing Evaluate UPM biomass and related gas yield and quality Verify data for scaleup and integration Generate data for EIA Determine process parameters for the full scale plant Generate operation data on entire gasification island process New installation was build - new gas processing, conditioning and cleaning equipment were designed by Carbona and installed by GTI Advanced d Gasification Test Facility (AGTF) 37 UPMU

38 FROM PILOTING TO DEMONSTRATIOS Several campaigns and set points during the test program Carbona Inc. & UPM are responsible for test program Fuels: bark, logging residue and stumps Different bed materials Different reformer catalysts Different operating conditions Long duration testing Catalyst Test Facility (CTF) 38 UPMU

39 FROM PILOTING TO DEMONSTRATIOS GTI plant designed for pressurized gasification Background: Existing pilot, designed for pressurized fluidized bed gasification for coal Existing infrastructure for operation and auxiliaries Excellent research and laboratory facilities for analytical support Modifications for BTL biomass testing: Carbona designed partly new and partly modified equipment Process arrangement modified to fit and connect existing and new process Flex-fuel test facility (FFTF) 39 UPMU

40 FROM PILOTING TO DEMONSTRATIOS Steady state process data from pilot plant Fuel and carbon conversion CAR-4b: Syngas flow, lb/h FI-2150 Syngas Flow, and Gasifier Temperature and Pressure from start of gasification to gasifier shutdown Gas yield and gas properties (H2/CO ratio, etc.) Period 1 Period 2 Period 3 Period 4 Gas composition and gas contaminants (nitrogen, sulfur and chlorine compounds) Tar and methane reforming, reformer performance, Auxiliary material (oxygen, steam, bed material) consumption TIME, m/d/yy hh:mm Solid waste amount, composition and contaminants Waste water contaminants Long duration test runs to follow TEM MPERATURE, F or FLOW W, lb/h Gasifier Temperature, F (TE-307A) Gasifier Pressure, psig (PT-312) 8/10/09 20:00 8/11/09 20:00 8/12/09 20:00 8/13/09 20:00 8/14/09 20:00 PRESSURE, psig 40 UPMU

41 PRODUCTION OF 2ND GENERATION BIOFUELS Summary The versatile utilization of biomass throughout the new value network offers many growth opportunities, which are boosting the renewal of the forest industry The production concepts of advanced d biofuels are very capital intensive and require radical technological solutions. Public policy makers need to recognize and act to support the integration of forest operations with bio-energy operations. This approach provides positive impact on jobs, the national economy, rural communities, and the environment The role of forest industry can be a catalyst for future biorefineries and biofuels due to existing platform and infrastructure. 41 UPMU

42 FOREST INDUSTRY RENEWAL NANOCELLULOSE 42 UPMU

43 NANOCELLULOSE VTT, HUT and UPM as partners in Finnish Centre for Nanocellulosic Technologies VTT, the Helsinki University of Technology HUT and UPM as partners in an internationally unique Centre for Nanocellulosic technology - the aim is to create new uses for cellulose as raw material and substance - combines basic research, applied research, commercialization and business competence >>> to speed up the launch of new profitable products on the market in the near future - employs around 40 researchers An equal consortium of three partners Operations are financed by public and private investments 43 UPMU

44 NANOCELLULOSE Fields of action Coatings, packaging Paper & wood products Novel production technologies, new products Fundamental research Food Pharma Composites Cosmetics Active surfaces & porous materials Electronics 44 UPMU

45 FOREST INDUSTRY RENEWAL BIOCHEMICALS 45 UPMU

46 BIOCHEMICALS Chemical pulping process as a source for biochemicals 46 UPMU Source: Derived from FuBio Programme 46

47 BIOCHEMICALS AND BIOFUELS UPM Biorefinery Development Center Piloting facilities (i.e. pilots & analytical equipment) for creation of New business in - Biofuels - Biochemicals Located at Kaukas mill site and supported by UPM Research Center. In biochemicals, extensive cooperation with universities and research institutes Biofuels research started in October 2008 and biochemicals in the beginning of 2009 Personnel about UPMU

48 FOREST INDUSTRY RENEWAL COMPOSITES 48 UPMU

49 COMPOSITES Growth market Wood Plastic Composite (WPC) contains polymers and wood. WPC is used to make for example decking boards, window frames and cladding products. In the US, WPC have an established market. Europe s composite markets are taking their first steps. All Wood Plastic Composite Products Growth Rate : 20% pa : 35% pa. 49 UPMU

50 COMPOSITES From waste to world-class green designs Finland Pavilion at Shanghai EXPO 2010 design by Teemu Kurkela Waste *) Components Systems World-class designs *) In the past label l waste containing i plastic, paper, adhesive and silicone was incinerated or disposed off in a landfill 50 UPMU 50

51 FOREST BASED BIOREFINERIES Summary The versatile utilization of biomass throughout the new value network offers many growth opportunities, which are boosting the renewal of the forest industry Understanding the technology management process together with strategic and financial criteria creates a platform for closing the gap between science and technology Open innovation is very good collaboration method at the beginning where we are working with basic development and moving to joint projects A lot of these thinking is based on trust between different partners (universities, institutes, industry). Without trust this is difficult to achieve The role of forest industry can be a catalyst for future biorefineries and biofuels due to existing platform and infrastructure. It is essential that t universities iti and companies can work to together th for common coal renewal of the forest industry UPMU

52 Thank you for your attention! 52 UPMU UPM 52

53 53 UPMU