Commercial developments with advanced biofuels

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1 Commercial developments with advanced biofuels Presentation at Bioenergy Australia VBN Meeting 23 May 2014, by Colin Stucley Director, Enecon Pty Ltd

2 Over 40 bioenergy studies, reports & projects since (Heat, power, liquid fuels, charcoal) Colin Stucley BA VBN Meeting 23 May Page 2

3 Structure of this talk 1. Advanced biofuels what and why? 2. Biofuels from lignocellulose commercial developments 3. Learning by doing 4. Summary Colin Stucley BA VBN Meeting 23 May Page 3

4 What are advanced biofuels? First generation: Ethanol sugar and starch Biodiesel vegetable oils, animal fats Advanced generation: Ethanol from biomass (lignocellulose) Hydrocarbons from biomass Biodiesel from non-food crops Microalgae Colin Stucley BA VBN Meeting 23 May Page 4

5 Why make liquid fuels from biomass? Electricity low cost competitors, mature technology Transport fuels are a huge, long term, local market Price for crude oil increasing Low feedstock cost relative to first gen fuels Palm oil, tallow can cost more than diesel Lignocellulosics, minor cost component of finished fuel Colin Stucley BA VBN Meeting 23 May Page 5

6 Pilot scale or commercial scale? Pilot plant Small scale Used intermittently No labour or energy optimization Commercial plant May be >100 times larger Operates continuously all year All services and utilities Optimized for mass, energy, labour Must be low risk and profitable 5-10 years Colin Stucley BA VBN Meeting 23 May Page 6

7 Ethanol via biomass hydrolysis & fermentation: Beta Renewables Commercial plant in Italy, began operations in Ml/year ethanol plus electricity. Straw feed and can also use hardwood. Colin Stucley BA VBN Meeting 23 May Page 7

8 Ethanol via biomass hydrolysis & fermentation: Abengoa Commercial plant under construction during 2013, at Hugoton, USA. Colin Stucley BA VBN Meeting 23 May Page 8 1,000 dry tonne per day feed, for 100 Ml/year ethanol plus electricity.

9 Ethanol via biomass hydrolysis & fermentation: POET Already active in first gen. fuels. 75 Ml/y commercial plant now under construction in Emmetsburg, Iowa USA. Corn stover as feed. Colin Stucley BA VBN Meeting 23 May Page 9

10 Ethanol via biomass hydrolysis & fermentation: DuPont 80 Ml/y commercial plant now under construction in Iowa, USA. Corn stover as feed. Other feeds tested Colin Stucley BA VBN Meeting 23 May Page 10

11 Ethanol via biomass hydrolysis & fermentation: Granbio Already active in first gen. fuels. 80 Ml/y commercial plant now under construction in Brazil. Bagasse as feed. Colin Stucley BA VBN Meeting 23 May Page 11

12 Ethanol via biomass hydrolysis & fermentation: COFCO First 50,000 t/year ethanol plant under construction in China. Corn stover planned as feed. Colin Stucley BA VBN Meeting 23 May Page 12

13 Ethanol via biomass gasification and fermentation: Ineos Bio Commercial plant, Indian River Fl began operation in Mixed wood feed for 30 Ml/y of ethanol and 6MW of electricity Colin Stucley BA VBN Meeting 23 May Page 13

14 Ethanol via biomass gasification and methanol: Enerkem Demonstration facility near Montreal 40 Ml/y commercial plant in Edmonton, Canada. Commissioning underway. MSW as feed. Other wood feeds tested. Colin Stucley BA VBN Meeting 23 May Page 14

15 Gasoline via biomass gasification and methanol Natural gas: Commercial process for natural gas to methanol to gasoline since the 1980s. Wood as feed: Haldor Topsoe Andritz Carbona GTI Demo plant commenced operations in Illinois USA, mid Colin Stucley BA VBN Meeting 23 May Page 15

16 Fast pyrolysis of biomass then upgrading: KiOR 500 dry ton/day commercial prototype in USA. Makes drop in hydrocarbons. Feed is southern yellow pine. Colin Stucley BA VBN Meeting 23 May Page 16

17 Fast pyrolysis & upgrading: Envergent Ensyn: Commercial-scale pyrolysis plants (up to 100 TPD) operated for more than 20 years. Wood residues as feed. Envergent: joint venture with UOP: upgrading bio-oil through to drop in hydrocarbon fuels. Building demo plant in Hawaii for operation in Colin Stucley BA VBN Meeting 23 May Page 17

18 Fast pyrolysis & upgrading: IFPEN/Axens & Dynamotive Commercial plants for fast pyrolysis in Canada. Multiple wood feeds 100 TPD 200 TPD Upgrading to hydrocarbon transport fuels demonstrated in IFPEn & Axens working in France to commercialise upgrading technology. Colin Stucley BA VBN Meeting 23 May Page 18

19 Biomass to fuels at commercial scale: Product Pathway Feed Feed scale (dry tonne biomass/y) Ethanol hydrolysis & fermentation straw, wood 150,000 to > 300,000 Ethanol gasification & fermentation wood ~ 150,000 Ethanol +? gasification & catalysis MSW, wood ~ 100,000 Hydrocarbons pyrolysis & upgrading wood 50, ,000 Commercial for other feeds but not for biomass yet: Hydrocarbons gasification & FT or MTG coal, gas up to > 600,000 But are they economic? Feed costs? Can we get better at making biofuels? Colin Stucley BA VBN Meeting 23 May Page 19

20 What is the (hypothetical) long term price for wood feed? Cost components of biofuel (cents /litre) Incremental cost of wood feed, at 300 litre of fuel per dry tonne of wood Mature production costs and capital recovery (NREL report, 2011) Cost of wood feed ($/dry tonne) 105 Colin Stucley BA VBN Meeting 23 May Page 20

21 Pursuit of lower costs: learning by doing Colin Stucley BA VBN Meeting 23 May Page 21

22 Novozyme - enzyme costs coming down Colin Stucley BA VBN Meeting 23 May Page 22

23 Other examples: Solar energy Colin Stucley BA VBN Meeting 23 May Page 23

24 Other examples: Wind energy Colin Stucley BA VBN Meeting 23 May Page 24

25 Process industry cost reductions over time From: Process Industry Economics, by David Brennan Monash University Colin Stucley BA VBN Meeting 23 May Page 25

26 Summary Multiple advanced biofuel technologies are starting commercial operation overseas. Can we utilise them in Australia? 1. Large, long term, local fuel market that is increasing in value 2. Technologies de-risked overseas = lower costs for capital here 3. Scale important for feedstock supply 4. Lower value feeds can help start an industry that is expected to use large amounts of dedicated material in the future 5. Where to now? Feeds and technologies are available. To start an industry we need commercial examples. Can we secure fuel contracts? Can we secure funds for showcase projects? Colin Stucley BA VBN Meeting 23 May Page 26

27 Colin Stucley, Director - Enecon Pty Ltd Suite 5, 651 Canterbury Rd, Surrey Hills, Vic Tel. (61 3) Thank you questions? Colin Stucley BA VBN Meeting 23 May Page 27