BeauTi-fueL TM : A Biomass To Fuels Concept. Prof Diane Hildebrandt and Prof David Glasser COMPS, University of the Witwatersrand

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1 BeauTi-fueL TM : A Biomass To Fuels Concept Prof Diane Hildebrandt and Prof David Glasser COMPS, University of the Witwatersrand

2 What is our challenge? To use our combined technology, research skills and expertise to benefit South Africa and Africa and particularly improve the quality of life of South Africans

3 The African Equation: Quality of life = Access to energy Access to energy and quality of life are linked In order to improve the quality of life of Africa we need to be able to supply energy reliably, cheaply and efficiently By energy we mean electricity and transportation fuel

4 The African Conundrum: Access to energy = Increased CO 2 emissions? The challenge of supply affordable energy comes at a time when there are limits being put on CO 2 emissions South Africa is a coal based economy how do we supply energy and limit the CO 2 impacts?

5 Energy for the People? We need to work together to improve energy efficiency of processes using less and different resources with less pollution provide cheaper energy to more people provide jobs

6 What are the potential energy resources to solve the problem? Agricultural waste and/or excess from the sugar industry paper industry farming activities Old Tyres Municipal wastes Sewage Rubbish dumps

7 Introduction to COMPS Based at the University of the Witwatersrand Johannesburg, South Africa Provide multidisciplinary project solutions to industry using resources from across the University We are regarded as world leaders in a number of areas: Reactor design Separation design Process Design for improved process efficiency

8 COMPS FT Technology COMPS Developed a Novel Fischer Tropsch Technology with: Lower carbon dioxide emissions More scalable technology More flexible technology Reduced water requirements Economically competitive process

9 Technology Risk? Individual unit are all conventional Interconnections between units are novel Simpler than current commercial technology This new technology is thus low risk Air S Electricity Generation C 1 to C 4, CO and H 2 Gasification Gas Cleanup FT Synthesis Liquid Products

10 Previous COMPS Projects

11 Golden Nest /CCT Commissioned 2008 In operation for 18 months Two commercial implementations of the technology Located at BaoDan Ammonia Plant Shaanxi, China

12 COMPS involvement in GNFT Detailed Conceptual design Feasibility study Reactor construction Basic Engineering Engineering Project Management Commissioning Operation and data analysis Plant 3D model

13 Linc Energy Demo Plant, Australia Located in Chinchilla Successfully commissioned Plan for commercial plant under way World first for combining UG and FT

14 Australian Project Linc Energy UCG derived Syngas (CTL) Australia s best performing stock in 2008 Multiple implementations under discussion.

15 BTL: Floor Scale Demonstration Plant Joint NRF and MOST funded Project Based at Herbei University Gasifier is commercial scale Using wood chips as feed Converting this into synthetic crude

16 The BeauTi-fueL TM Concept in Partnership with Necsa Feed to the process is Biomass Agricultural waste; Cellulosic material Product is synthetic crude and electricity The idea is to uplift and make small communities self sufficient in energy The plant will be simple and robust to operate

17 The BeauTifueL TM Technology The scale of the plant is of the order of 1 ton of dry biomass/day Produce 1 barrel/day and 0.5 MWh of electricity per day The plant will be designed to fit into a container so that it can be transported on a truck This will be a prototype to demonstrate the concept, optimise and get more reliable data for implementation

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20 The modular approach A new approach is to build smaller modular plants. These have the advantages of being less capital intensive, more flexible and having a faster time-to-market Later modules can incorporate newer ideas Good for managing risk Get higher efficiency by being able to incorporate new ideas

21 The Business Case Capital Cost R4.5 million If BeauTi-fueL containers are built in bulk this cost could be reduced considerably Opex R0.5 million pa If catalyst could be manufacture in bulk, this cost could be reduced considerably Cost of Fuel Produced At syncrude prices R 0.25 million pa At pump prices R 0.65 million pa If government helps with tax breaks and/or allowing fuel to be sold at taxed rate, then economics look favourable.

22 Implementing Technology: The Project Cycle Perceived Risk Research Development Demonstration Deployment Mature Time

23 The COMPS Technologies Courtesy Geoff Whitfield, Univ Sydney Y-axis: perceived risk of achieving Return on Capital Expended (ROCE) at full-scale Synfuels: non-ft GTL Velocycs: microchannel Oxford Catalysts NEDO: BCL + upgrading Topsoe: TIGAS JOGMEC: non-ft Mitsui Chemicals: methanol COMPS gas-coal coprocessing CSIRO: CTL, GTL SOLHYCARB University of Sydney: small-scale hydrogen MHI: CO 2 emissions-free plant Cougar Energy: UCG Lurgi: GTL.F1 Nippon GTL: bpd Marathon Oil: GTF ExxonMobil: MTG JAMG Shenhua Energy: ,000 bpd Direct CTL Altona-CNOOC: CTL Linc Energy: UCG Syngas Ltd: BCTL Sasol: Indirect CTL CSIRO: catalysis Mobil:MTG Research Development Demonstration Deployment Mature technology Project Elevation-to-Practice Timeline 8

24 How will we fund the BeauTifueL TM project? Perceived Risk We are here Funding requirement R1M Demonstration cost R10M We need to get here Funding Requirement R50M Research Development Demonstration Deployment Mature Time

25 Funding Sources Perceived Risk Universities typically work here. Low cost, high risk Funding Agencies: NRF, THRIP, SANERI,... Research How do we cross this barrier? Venture Capitalists? Government? Overseas? Development Demonstration Deployment Industry Typically works here High cost, but reduced risk Funding Agencies: TIA, DST,..? Mature Time

26 The value of IP as a commodity IP Value Research Development Demonstration To raise funding at this stage we have to sell future rights on IP Puts the University in a weak position to negotiate This funding often comes from overseas As a result IP may leave the country Deployment Mature Time

27 Conclusions In order to improve the lives of Africans, we need to supply cheap and renewable electricity and fuel In order to do this we will need to consider new feedstocks We will need to develop new technologies to utilise these feedstocks We need Universities, Governments and Industry to work together to make this possible.

28 Conclusions There is a gap in funding between Universities, Government and Industry Means University forced to sell IP and future IP rights to accommodate perceived risk We need to look at how we can develop a model where new technologies are funded until the stage where they are more mature so that the IP is not sold too early.

29 Sustainability through technical expertise