Building a Biomass to Sugar Value Chain Supports Cluster Development in Canada

Transcription

1 Building a Biomass to Sugar Value Chain Supports Cluster Development in Canada Dr. Murray McLaughlin, Executive Director Bioindustrial Innovation Canada June 17, 2016 Prince George, BC

2 Outline of Presentation Story of Corn Stover Project The Opportunity The Studies The Process Stages Forestry and biomass markets The value chain Summary 2

3 Corn Stover to Sugar Value Chain Initiative A Concrete Step towards a Relationship Project initiated in 2012 to assess the value that could be created within this value chain Participation along value chain from agriculture to the chemistry industries Field trials and sugar extraction testing conducted Costs were assessed transparently in various business models Significant interest was generated within the agricultural community Seeds of trust were planted University of Guelph, Ridgetown College

4 Corn Stover to Sugar Value Chain Initiative Biomass available for full scale commercializaton Located within Ontario s Agricultural Heartland 45% of soybeans and corn within 100km Five County Region around Sarnia corn yields comparable to Iowa more than 1 million bone-dry tonnes sustainably harvestable corn stover available (2009) 4

5 Development of Cellulosic Sugar Production Capacity Raw material sourcing anchors creation of value chain Vision: 5 Biomass Conversion Agricultural Producers Chemical Building Blocks Renewable End Products Reuseable, Recycleable Residuals An operating agricultural biomass to end-products supply chain by 2020 which is profitable and sustainable for all participants Target: Construction of a cellulosic sugar conversion plant in Southern Ontario by 2018 processing up to 250,000 tonnes of agricultural residue Project Timing and Cost: Sixteen month project (Nov 2014 to Feb 2016) costing $500,000 Contributors: Consumer Group Partners: BioAmber, IGPC, Jungbunzlauer Supply Side Partners: GFO, CSP Cooperative, OFA Government: Agricultural Adaptation Council (AAC) - $300K Alberta Innovates - $50K Bio-industrial Innovation Canada (BIC), Ontario Agri-Foods Technology (OAFT)

6 Development of Cellulosic Sugar Production Capacity Project process and key outcomes Biomass Conversion Agricultural Producers Chemical Building Blocks Renewable End Products Reuseable, Recycleable Residuals Process: 19 technology providers screened vs. decision criteria Samples from 8 providers analyzed vs. consumer group specifications and performance under micro-fermentations 8 sites visited 4 technology providers selected for biomass processing trials and further validated for product quality, mass and energy balance, process efficiencies, economics Existing agricultural Cooperative would partner with a technology provider to commercialize first cellulosic sugar production facility Outcome: BIC provided recommendations to CSP Cooperative CSP Cooperative engaged with COMET Biorefining Inc to develop a business case for the Farm to Sugar Value Chain 6

7 Farm to Sugar Value Chain Business Case Second Project Initiated to Create Offering Statement Biomass Conversion Agricultural Producers Chemical Building Blocks Renewable End Products Reuseable, Recycleable Residuals Project Timing and Cost: Four month project duration from Dec 2015 to March 2016 Total project cost of $110,000 Contributors: Technology Partner: COMET Biorefining Inc. Supply Side Partner: Cellulosic Sugar Producers Cooperative with support from Agris Co-operative Government: Agricultural Adaptation Council (AAC) - $50,000 Bio-industrial Innovation Canada (BIC), OAFT Outcome: Develop a business case for a supply chain to cellulosic sugar plant processing 75,000 tonnes/year of corn stover If appropriate, develop and market an Offering Statement for the Cellulosic Sugar Producers Cooperative 7

8 Aggregation, Transportation and Storage Logistics Active Management is Critical to Control Costs

9 Building a Biomass to Sugar Value Chain in Canada Current Status and Next Steps 9 Current Status: Cooperative approved the jointly developed business plan for the agricultural biomass to sugar value chain Cooperative signed an MOU with Comet Biorefining to collaborate on the development of a sustainable agricultural biomass supply chain in southwestern Ontario Comet selected Sarnia as the location for its commercial scale biomass-derived sugar facility consuming 60,000 dry tonnes of corn stover or wheat straw Next Steps: Conduct initial meetings with selected small groups of producers Create and gain approval of an Offer Statement to support an equity raise Complete equity raise and finalize supply agreements (Fall 2016) Initiate Cooperative operations and establish the biomass supply chain with first partial harvest planned for Fall 2017

10 Sarnia Hybrid Cluster Fossil Based Air Products BP Energy CF Industries DuPont Ethyl Corporation Exxon-Mobil LANXESS NOVA Chemicals Ontario Power Generation Pembina Praxair Royal Dutch Shell Styrolution Suncor Energy TransAlta Energy 80% of Ontario soybeans and corn within 200km Bio/Renewable Based BioAmber Cargill Enbridge Greenfield Energy Methes Energy KmX Solutions4CO2 Suncor Ethanol Woodland Biofuels Greencore Technologies Comet 10

11 Connectivity and Partners to Share Success A Sample of our Connectivity through Established Relationships Canadian Industry Public Sector and Not for Profit International 11

12 Global Relationships with Accelerators and Cluster Builders Bio-based Delta (Netherlands) CLIB (Germany) Malaysian Biotechnology Corp. (Malaysia) Life Sciences Queensland (Queensland, Australia) egolibio Lifesciences Incubator (South Africa) Foro Argentino de biotecnologia (FAB) (Argentina) MBI (Lansing, Michigan) 12

13 What Does this Mean for Forestry Forestry is Biomass We need to Value Add Wood can Produce Sugar Who are the partners for sugar A new industry bio-based chemicals 13

14 Global Trends Give Canada a Leadership Position Biomass is the Key Ingredient and Canada has Large amounts of Agricultural and Forestry Biomass Forestry Agriculture 14

15 Opportunity to maximize value of biomass by focus on biobased chemicals and materials Key Considerations: Food versus Fuel debate is dominating the biomass discussions current chemicals and materials segment consumes < 4% of total carbon but generates > 40% of value-added biomass directed towards chemicals and materials will provide best economics for successful commercialization Canada has abundant and globally competitive biomass available (agricultural and forestry) Corinne Young LLC l Sweetsers Building, 459 Washington St, 2nd Floor l Duxbury, MA l O: , C: l cyoung@corinneyoungllc.com

16 Biomass Conversion Pathways: $100B opportunity with commercialization challenges Reference: NREL&PNNL: Top Value Added Chemicals from Biomass, August

17 Integrating into the Hybrid Chemistry Value Chain The key to growing a sustainable bioeconomy Biojet fuel Fossil-based Feedstock Ethano l Butanol Fuels Primary Chemicals Polymers Chemicals Finished Products Advanced Manufacturing End User Biodiesel Bio-based Feedstock Succinic acid iso-butanol Levulinic acid Lignin NCC Cellulosic sugars Lignin Biomaterials Natural fibres 17

18 Summary-Building a Sustainable Future with the Bioeconomy CANADA can take a global leadership position in the Bioeconomy Biobased chemicals and biomaterial are the opportunities Agriculture, Forestry and Waste are the sources for conversion materials Biomass to Sugars is an Opportunity Home grown technologies and international attraction will establish the bioeconomy companies The outcome will be rural development and jobs for the 21 st century through cluster development But to make this all work we need leaders with VISION let s get out there and lead

19 Thank you - Discussion Murray McLaughliin, Murraym@BiNCanada.ca