Bio-Refining in a Future Bio-Economy

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1 Bio-Refining in a Future Bio-Economy Geoffrey Bell Australian Task Leader Task 42 CEO Microbiogen Pty Ltd Update post IEA Meeting Task 42 Dublin Ireland April 2016

2 Background IEA Bioenergy Goal Facilitating commercialisation and market deployment of environmentally sound, socially acceptable and cost-competitive bioenergy systems and technologies Role Independent body to give clear and verified information on bioenergy... R&D/ Technology Policy IEA BIOENERGY Market/Capital Investments 2/22

3 Background IEA Bioenergy EUROPE Austria Belgium Croatia Denmark European Commission Finland France Germany Ireland Italy Netherlands Norway Sweden Switzerland United Kingdom ASIA/AFRICA Australia Japan Korea New Zealand South Africa AMERICA S Brazil Canada United States IEA Bioenergy Budget: 2014: 1,9 Million US$ Tasks: 11 Task participation: 102 Direct participation: 200 persons 23 countries participate in the IEA Tasks 9 countries participate in Task 42 3/22

4 Task42: Biorefining in a Future BioEconomy Vision Biorefining is the optimal strategy for large-scale sustainable use of biomass in the BioEconomy resulting in cost-competitive co-production of food/feed ingredients, biobased products and bioenergy with optimal socio-economic and environmental impacts, viz. - reduced GHG emissions - efficient use of resources Mission To facilitate the commercialisation and market deployment of environmentally sound, socially acceptable, and cost-competitive biorefinery systems and technologies, and to advise policy and industrial decision makers accordingly. 4/22

5 Task42: Most recent publication "Developing the Global BioEconomy" brings together expertise from three IEA Bioenergy Tasks - Task 30 on Pyrolysis, Task 40 on International Trade and Markets, and Task 42 on Biorefineries - to review and draw technical, market and environmental lessons from bioenergy to support the future deployment of a global BioEconomy. This book was recently published by Elsevier. Bioeconomy/isbn / Published: May /22

6 Task42: Most recent publication - Content 6/22

7 Task42: Country updates - Denmark Long term target 100% renewable energy by Renewables to cover 35% of total energy consumption, 50% electricity from wind by All heat and power renewable by 2035 Focus on wind and biomass biomass to replace coal in CHP plants Increased use of manure for biogas; subsidy for biogas to natural gas grid and subsidy for biogas used for transport. No current support for traditional biofuels (e.g. 1 st generation bioethanol) and 2 nd generation bioethanol. 7/22

8 Task42: Country updates Denmark: Maabjerg bio-refinery 2.5% 2G national blending target close Consortia of local power companies (50%), DONG and Novozymes (50%). 80 million litres of ethanol annually 50 million cubic metres of CH 4 Heat and Power for households NIR funding of 39 mio Euro in Looking expected to start end /22

9 Task42: Country updates Denmark: Maabjerg bio-refinery 9/22

10 Task42: Country updates Italy New Novomont Plant New fermentation plant in the site of a previous plant (Adria ) for the production of 1.4 butanediol from renewables Important partnership with Genomatica. Plant size: 30,000 ton/y Plant start-up July /22

11 Task42: Country updates Italy GF Biochemicals New facility started production in 2016 Produced Levulinic acid Capacity of 10,000 tonnes per year First company to produce levulinic acid at a commercial scale directly from biomass 11/22

12 Task42: Country updates Italy Beta Renewables In 2012 a partnership was created between Novozymes and Beta renewables. Long-standing collaboration has led to substantial reduction in cost of enzymes per unit of cellulosic ethanol Partnership of two industry leaders boosts confidence in the technology Cresentino lignocellulosic ethanol facility has been operating since late Parties are committed to ongoing improvements in enzymes and process In India, Novozymes and Beta Renewables are working to establish a 75 million liter per year cellulosic ethanol plant using 3 million metric tons of paddy straw as feedstock 12/22

13 Task42: Country updates Austria Micro-algae Ecoduna microalgae production Existing pilot- plant Ecoduna is ramping up for the implementation of for a full scale industrial demo site in 2017 Planned capacity 200 t/a dm algae biomass Key product is algae biomass and Omega 3 fatty acids not biofuels Ecoduna is currently outreaching for additional investors Ecoduna has built and runs the world s largest continuous algae production plant in Austria, using funding from the EU Entrepreneurship and Innovation Programme A very advanced system 13/22

14 Task42: Country updates Holland PEF Polyester - Anantium The next generation polymer with blockbuster potential Markets: Soft drinks, water, food, spirits and wine, beer and dairy amongst others Pilot plant started in 2012 Operates 24 hours a day, 7 days a week 14/22

15 Task42: Country updates Holland BASF Avantium JV March 2015 Production and marketing of furandicarboxylic acid (FDCA) based on renewable resources, the main building block of polyethylenefuranoate (PEF) Further licensing and development of Avantium technology Intention to build a 50,00t/y facility at Antwerp in Belgium Take advantage of PEF superior characteristics over PET 15/22

16 Task42: USA Evolution of bio-refineries The evolution of corn ethanol into bio-refineries Corn stover to ethanol Corn oil to biodiesel Waste streams to protein Increased conversion efficiency Declining unit costs US$M Sales revenues US$100 US$80 US$60 US$40 US$20 Value of products with the same amount of corn input Typical corn operation 20 years ago US$65M DDGS co -product Ethanol from corn Most facilities now extracting corn oil Revenues up 13% US$73.5M DDGS co -product Corn oil Ethanol from corn increased conversion efficiency by 10% Some operations commencing corn cellulosics Revenues up 17% US$76.3M DDGS co -product Corn oil Corn kernel cellulosic Ethanol from corn increased conversion efficiency by 10% 1990 standard corn ethanol Add corn oil extraction Add corn kernel cellulosic 16/22

17 Task42: Country updates Australia Evolution of bio-refineries Opportunity to optimise a 2G biofuel facility Upgrading fermentation Use yeast that can grow on their own waste Biomass Pre-treatment and hydrolysis to sugars Fuel MBG and Food Fuel Process and Feed bio-refinery fermentation Fuel Ethanol Produce a by-product of high value animal feed Increased conversion efficiency from <65% to >85% More efficient and sustainable bio-refinery Residual C6+C5 sugars Glycerol Acetate Organic acids Xylitol High value co-product Fermentation yeast High value feed Two high value products, not just one and conversion efficiency up from 65% to 80% 17/22

18 Task42: Country updates Australia Evolution of bio-refineries Impact on Australia and profitability Currently deployed technology leads to doubling of revenue per tonne of biomass Add between 11% and 13% by utilising new technology already identified Lower commodity risk - diversification Many additional opportunities - Green coal - Bio-chemicals - Other optimisation Sugar only mill US$154 Sugar from cane juice Value of product per tonne of Sugar Cane (dry basis) Current 1 st and 2 nd Gen bio-refinery US$301 US$133 Ethanol from bagasse, trash and tops US$168 Ethanol from cane juice Optimised 1 st and 2 nd Gen bio-refinery maximising ethanol 11% increase US$335 Green coal US$15 Feed Yeast US$27 US$140 Ethanol from bagasse, trash and tops US$168 Ethanol from cane juice Optimised 1 st and 2 nd Gen bio-refinery Fuel and Feed 13% increase Green US$342 coal US$15 US$82 Feed Yeast US$92 US$168 Ethanol from cane juice 18/22

19 Task42: Country updates Australia Pentland Project 19/22

20 Task42: Country updates Australia Pentland Project Australia s first large scale integrated Gen I and II bio-refinery Recently received ARENA grant of approximately A$3M. Based initially on sugar cane with potential to include super-sweet sorghum Large scale Stage I of up to 340 million liters of ethanol per year Stage I capex of A$800M. Potential to expand to 1 billion liters per year 20/22

21 Task42: Country updates Australia Pentland Project Australia s first large scale integrated Gen I and II bio-refinery Utilising Beta Renewables and Novozymes technology Combination of high biomass yields and scale results in low forecast operating costs 21/22

22 Task42: Renewables are really needed. Not an academic exercise... It is coincident with a very hot dry period in northern Australia, in some ways it is coincident, in the same season at least, with the dieback of corals on the east coast Professor Norm Duke: Spokesman for the Mangrove and Saltmash Network. The most pristine section of the Great Barrier Reef is currently experiencing the worst, mass bleaching event in history Professor Terry Hughes: Convenor of the National Coral Bleaching Taskforce. Large scale diebacks of mangrove trees: 2016 Heron Island: /22

23 Revolutionary Food and Fuel Questions Geoff Bell Microbiogen Pty Ltd Ph: Evolutionary Technology