Bioenergy: From Concept to Commercial Processes

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1 Bioenergy: From Concept to Commercial Processes Biorefinery Process Economics An in-depth, independent technical and economic evaluation by the PEP program Gregory M. Bohlmann March 9,2006

2 Biorefinery Process Economics Agenda Biorefinery Research Whole Corn Biorefinery Core Conversion Technologies Capital Costs Process Economics Economic Issues Feedstock Coproducts Waste Issues Conclusions 04/052

3 Early Biorefineries Corn Dry Mill Raw Sugar Mill Corn Grain Enzymes Milling & Saccharification Sugarcane Water Milling & Evaporation Bagasse Sugars Crystallization Raw Sugar Anaerobic Fermentation Fermentation Molasses Distillation Distillation Ethanol DDGS Ethanol 04/053

4 Feedstock Price as Driving Factor pportunity grows for renewable resources Crude il, $/ft3 Natural gas, $/thous ft3 Corn, $/bushel 04/054

5 Biorefinery Research Worldwide Interest Brazil Leverage sugar mills Europe Kyoto driven BREW project funded by EC United States Leverage corn milling and other agricultural assets Projects funded by Dept. of Energy (DE) and Dept. of Agriculture (USDA) 04/055

6 U.S. Biorefinery Research 2003 DE/USDA Funded Projects Integrated Corn Biorefinery (ICBR) DuPont, Diversa, NREL, MSU Sugars from lignocellulosics NatureWorks, Iowa State University Corn fiber separation and conversion National Corn Growers, ADM, PNNL Starch and biomass conversion pilot plant Abengoa, Novozymes, NREL Large scale pilot facility in York, Nebraska 04/056

7 Whole Corn Biorefinery Whole corn biorefinery utilizes entire corn plant Grain % Dry Basis Stover % Dry Basis Starch 72.0 Cellulose 37.3 Celluloses 10.5 Xylan 20.6 Protein 9.5 Lignin 17.5 il 4.5 Galac./Man. 1.4 Sugars 2.0 Arabinan 2.1 Ash 1.5 Ash 6.1 Acetate 2.0 Extractives 13.0 Source: McAloon et al., /057

8 Whole Corn Biorefinery Core Conversion Technologies Sugar platform technologies Pretreatment Saccharification Fermentation technologies Engineered microorganisms e.g. S. cerevisiae, Z. mobilis and E. coli Milling technologies Starch conversion to sugar 04/058

9 Whole Corn Biorefinery Gypsum Water Whole Corn Stover Pretreatment Separation (Field) Kernels Dry Mill & Sacch. Enzymes Enzyme Sacch. & CoFerm Acidification Fermentation Air Distillation Recovery & Purification DDGS Recovery Ethanol Lignin 1,3-Propanediol DDGS 04/059

10 Capital Costs Total Fixed Capital, million $ Base Case: 580 mill. Lb/yr PD 65 mill. Gal/yr EtH Biorefinery Dry Mill Feed Thousand Metric Tons/Day Source: PEP Report /0510

11 Whole Corn Biorefinery Battery Limits Investment 27% Recovery & Purification 26% Pretreatment & Conditioning DDGS Recovery 2% Saccharification & Co-Fermentation Aerobic Fermentation 11% 14% 3% 17% Dry Mill & Saccharification Distillation & Dehydration 04/0511

12 Biorefinery ff-sites Capital 39% General Facilities ther Utilities 6% 7% Steam 15% Cooling 26% 33% Waste Treatment Lignin Combustor 7% ther Waste Treatment 04/0512

13 Process Economics Net Production Cost, cents/lb PD Dedicated Plant using glucose feedstock at 9 cents/lb PD Capacity, million lb/yr Biorefinery EtH $1.08/gal DDGS $115/ton Source: PEP Report /0513

14 Process Economic Issues Feedstock Cost and composition Coproducts Recovery costs Market value Enzymes Make versus buy Waste Treatment Aqueous Solid 04/0514

15 Feedstock from Cornfield to Biorefinery Source: Department of Agricultural and Biosystems Engineering Iowa State University. Feedstock flow chart for biomass planning tool I-FARM as planned in Task 8 of the USDA-DE project. 04/0515

16 Biomass Cost Reduction Target $/Biomass Dry Ton $60 Feedstoc Cost per Dry Ton Delivered $50 $40 $30 $20 $ Goal of $30-35/t by $0 FY03 Cost per Dry Ton Selective Harvest Single-Pass Harvester Transportation & Bulk Storage & Pretreatment Nth Plan Savings (5%) $/BDT Source: Sokhansanj and Turhollow, RNL /0516

17 Coproducts 1,3-Propanediol Monomer for PTT Ethanol Established commodity as fuel Lignin Energy value Potential chemical derivatives Protein Established feed markets Carbon Dioxide ther Byproducts Acetic acid, furfural, other organics 04/0517

18 Ethanol Price History Corn, $/bushel Ethanol, $/gallon 04/0518

19 Lignin (Partial Structure) C H 3 C R CH H 3 C H 2 CH H 2 C H 2 H CH 3 CH 3 H H H 2 CH CH C C H3 H 2 CH CH 3 H H C H 3 H 2 H H CH 3 CH 3 H 2 CH C CH H 2 CH H CH 3 H HH 2 C C H CH H 2 H CH 3 H HH 2 C C C C H CH 3 H 3 CH H 2 H 2 H CH CH CH 2 CH 3 CH 3 Phenylpropane monomers: More potential value than simple combustion C H 3 R CH 3 R = CH or CH2 H R = H or C 04/0519

20 Aqueous Waste Fermentation requires large volumes of water E. coli produces 135 g/l PD Water recycle challenging Numerous fermentation by-products Feedstock composition variability rganism pathways Acetic acid and other organics High biological oxygen demand Salts 04/0520

21 Gypsum Potential sources Pretreatment Product recovery Disposal options limited Land farming Landfilling 04/0521

22 Conclusions What can we learn from this analysis? Biorefineries are capital intensive Pretreatment Product recovery Coproducts provide economic synergies Technical challenges remain for waste issues Lignin Waste water Gypsum 04/0522

23 Thank you for your attention Gregory Bohlmann SRI Consulting 04/0523