Advanced fuels Issue group 1 Eija Alakangas, VTT. Dublin, 23 April 2013

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1 Advanced fuels Issue group 1 Eija Alakangas, VTT Dublin, 23 April 2013

2 Advanced fuels Vision 2020 To double use of biomass fuels in heating by developing standardized and sector oriented, sustainable biomass feedstocks and fuels at competitive production costs and by securing biomass fuel supply to end-users. 2

3 Advanced fuels replacing fossil fuels in heat and CHP Advanced fuels are new biocommodities such as Thermally treated biomass fuels Fast pyrolysis bio-oils Biomethane from biogas Cost-efficient production of these new biocommodities needs also improvement of feedstock supply chains 3

4 Advanced fuels subtasks 1(2) 1. Sustainable, innovative and cost-efficient advanced feedstock production, handling, pretreatment and storing technologies from different biomass resources (focus on residues and energy plants) to meet the quality requirements for thermally treated biomass and bio-oil production technologies 2. Cost-efficient, full-scale demonstration and R&D to produce bio-oil suitable for CHP and stationary engine applications including also small-scale heating sector 4

5 Advanced fuels subtasks 2 (2) 3. Cost-efficient, full-scale demonstration and R&D of different technologies for thermally treated biomass fuels (e.g. via torrefaction or hydrothermal carbonisation) 4. Reduce the costs for upgrading biogas to biomethane, develop cost-efficient technologies also for smaller biogas plants 5

6 Sustainable and cost-efficient feedstock Sustainable, innovative and cost-efficient advanced fuel feedstock supply 30% lower production costs Intelligent machinery Sustainable production 30% reduction of CO 2 in supply chain Improved feedstock quality, lower material losses Cost-efficient, fullscale demonstrations of bio-oil technologies Cost-efficient, full-scale demonstrations of different technologies for thermally treated biomass New biomass fuel commodities to replace fossil fuels Full demonstration of different pathways (e.g. bio-oil, torrefied biomass, hydrothermal carbonised fuels) Market implementation of fully commercial plants, which includes: Flexibility in raw material Standardised product quality

7 Advanced fuels European added value Replacing fossil fuels by biomass fuels Decrease use of mineral heating oil at least by 3 Mtoe in heating sector (current oil use 300 Mtoe) Decrease use of coal at least by 80 Mtoe in CHP or power production (coal use 800 Mtoe) Increase use of biogas/biomethane by 4.5 Mtoe New products and increasing job opportunities 30,000 40,000 new forestry machines produced 3 to 4 billion forest machinery market in Europe 10,000 to 40,000 job creation wood fuel supply and 14,000 jobs for bio-oil sector 7

8 Advanced fuels Key performance indicators Feedstock supply indicators - Supply costs for harvested biomass will decrease 30% - 30% of agricultural and industrial biomass residues will be used in energetic value chains - 30% of forest machinery is based on hybrid technology and 30% reduction of fossil fuel consumption in biomass supply chain % decrease in production losses (e.g. dried fuel, decrease of storage losses) 8

9 Advanced fuels Key performance indicators Thermally treated biomass fuels - Flexibility in raw material and possibilities of byproducts use - Quantity of the end-products available - Number of existing commercial plants with industrial capacity (process concepts evaluated, full load operation hours, energy input/energy value of endproduct, healthy and safety ) - Intermediate and long-term storage capacities exists 9

10 Advanced fuels Key performance indicators Bio-oil - Commercial bio-oil production in 2014 for heating applications - 20% reduced bio-oil costs through process integration and optimization of the logistic chain - 90% reduced CO 2 emissions compared to mineral fuel oils - Bio-oil suitable for replacing mineral fuel oils in selected CHP applications such as engine power plants 10

11 Advanced fuels Key performance indicators Upgrading biomass to biomethane - 80% of all European biogas plants have implemented the use of waste heat from their CHP units in Of these plants, at least 60% of the waste heat of each biogas plant is used - Alternatively, biogas is upgraded to biomethane and injected into the natural gas grid or directly used for transport 11

12 Advanced fuels R&D budget R&D budget needed for the value chain - Total 200 million, - EU-funding and national public funding about 100 million - Industrial funding 100 million 12

13 Advanced fuels R&D activities needed Basic research (10 %) - Fundamental understanding of characteristics of bio-oils for improving their quality as fuels Applied research (50 %) - Innovative forestry machinery, upgrading biomethane and bio-oil, enlarging raw material base for thermally treated biomass, use of bio-oils in stationary CHP engines, reduction of production costs Demonstration (40 %) - Full demonstration of thermally treated biomass and bio-oil, sustainable feedstock supply chains 13

14 Advanced fuels Main actors Agricultural and forestry sector - Farmers, fuel suppliers and producers Manufacturing sector - Forestry and agricultural machinery manufacturers - Process equipment manufacturers Energy utilities Forestry, agricultural and bioenergy research institutes and universities. Key actors identified 14

15 Sustainable and cost efficient feedstock Commercial plants for thermally treated biomass Timeline R&D for optimised feedstock selection and quality Proof of concepts Technical demonstrations demonstrations plants(semi-commercial) Technical optimisation Economical evaluations Commercial plants (10) Full-operation Quality control and assurance Product standardisation R&D for feedstock selection, quality improvement and cost reduction Development of intelligent machinery Implementation of sustainability certification* Demonstrations of new type of supply chains in different climate conditions 30% reduced costs 30% reduced CO 2 emissions in machinery 30% more agricultural and industrial residues 10-20% decrease of material losses The sustainable certification scheme should cover both the bioenergy production as well the food and fooder value chains.

16 Commercial plant for bio-oil Full use of the energy content of biogas R&D for heat use concepts of biogas plants Cost reduction of biogas upgrading technologies Downscaling of upgrading technologies 80% of all European biogas plants have implemented the use of waste heat from their CHP units in 2020 Of these plants, at least 60% of the waste heat of each biogas plant is used Alternatively, biogas is upgraded to biomethane and injected into the natural gas grid or directly used for transport R&D for improving bio-oil fuel quality Proof-of-concepts and piloting Technical demonstrations Demonstration plants Technical optimisation Economical evaluations Commercial bio-oil production 20% reduced bio-oil costs through process integration and optimisation of the logistic chain 90% reduced CO 2 emissions compared to mineral fuel oils Bio-oil suitable for replacing mineral fuel oils in selected applications such as stationary CHP engines

17 Thanks to the following experts Antti Asikainen, Metla (forestry) Jani Lehto, VTT (bio-oil) Janet Witt, DBFZ (thermally treated biomass) Dominic Rutz and Rainer Janssen, WIP (biogas) Contact issue group 1 Science: Eija Alakangas, VTT, tel eija.alakangas@vtt.fi Industry: Kari Mutka, Biodiili Oy, tel kari.mutka@biodiili.fi 17

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