RENEW Renewable Fuels for Advanced Powertrains IP Prospects

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RENEW Renewable Fuels for Advanced Powertrains IP-502705 The Chemrec BLGMF Process (Black Liquor Gasification to Motor Fuels) Status, Progress and Future Prospects Ingvar Landälv, VP Technology, Chemrec AB Project supported by European Commission under FP6

Black liquor Uniquely Suitable for Gasification Liquid Easy to feed to a pressurized gasifier Can be atomized to fine droplets Rapid gasification rates Highly reactive (high Na/K content) Full carbon conversion at ~1000 deg C No tar formation Low methane formation Available in large quantities About 270 MW of black liquor is generated at an average sized pulp mill (~ 400 000 tons of pulp per year)

STATUS S DEVELOPMENT PLANT DP-1

Development Plant in Piteå 2004 Ordering critical components Financing completed Start of mechanical erection 2005 Mechanical completion C Commissioning i i i Start of operation Test runs & debugging 2006 Test runs & debugging Burner optimization Longest run 13 days 2007 Longest run 22 days 2008 Start operation St t Continuous C ti ti with 5 shifts June Sept Oct May M S t May-Sept Sept 30 Oct-Dec Jan-Mar Apr-May Sept Aug May

DP-1 Accumulated Operating Hours Hours (By end August 2008: ~ 6500h) Hours 4800:00:00 4320:00:00 3840:00:00 3360:00:00 2880:00:00 2400:00:00 30 bar, 75% load Aug 2007 3 weeks operation without stop 2500 hours Aug 14 4602 hours April 16 1920:00:00 1440:00:0000 00 Breakthrough! Excellent carbon conversion and GL 27 bar 960:00:00 480:00:00 First Start Sept 30 2005 27 bar, 90% load 0:00:00

THE BioDME PROJECT WITHIN FP 7

Overall Scope and Objective Demonstration of an environmentally optimised future bio-fuel for road transport covering the full chain from production of fuel from biomass to the utilisation in vehicles Starting date: 1 September 2008 Total budget: 28.4 M Duration: 48 months EU funding: 8.2 M Coordinator: AB Volvo 7

BioDME Consortium

Overall Scope 3G vehicle development Fuel injection development Vehicle production Vehicle field test Vehicle production Black liquor Biomass Syngas generation and cleaning Fuel properties DME production DME Distribution & filling Industrial use

BioDME Project Time Schedule

Overall Work Scope of BioDME WP Responsible Work Page (WP) Topics partner 1 Basic engineering of process plant Chemrec 2 Development and EPC of new process plants Chemrec 3 Production of DME Chemrec 4 Fuel distribution Preem 5 Fuel and lube oil specification Total 6 Fuel injection equipment Delfi 7 Vehicle procurement Volvo 8 Vehicle field test Volvo 9 Industrial use of DME Chemrec 10 Evaluation and Dissemination i All 11 Project management Volvo 12 Experiments and sampling in ETC BioDME plant

BioDME Pilot downstream Chemrec s DP-1 plant DP-1 A CO 2 /H 2 S (to mill) Gas conditioning and Gas purification B Final Sulphur Removal & Guard Bed D C CO 2 BFW DME Process Development Unit Raw DME CW LP-st DME DME Storage ~5 ton DME / day 9/19/2008

Raw Syngas Quality 50-70 ppm benzene < 5ppm naphthalene Zero or close to zero higher tars Very little fouling in heat exchangers Particulates t non-detectable t

Gas Conditioning and Cleaning in the BioDME Project Point Variable To be accomplished Comment H2/CO adjustment B Gas composition ~2% CO 2 < 30 ppm sulphur components Main cleaning C Gas pressure > 100 bar D Gas composition < 0.1 ppm sulphur Final polish

Overall Work Schedule for the BioDME Pilot Work Package Descrition Time WP1 Basic Engineering Cost estimate Permitting Sept. 2008 Feb. 2009 WP2 Engineering Procurement Construction Commissioning March 2009 Feb. 2010 WP3 Operation March 2010 Aug. 2012

Illustration of the BioDME pilot

THE BLGMF CONCEPT IN AN INTERNATIONAL COMPARISON

Well to Wheel GHG versus total energy use Source: European Biofuels Technology Platform, Jan 2008

Biofuels Production Cost as function of Biomass Price Source: Renew, FP 6 60 BtL pr roduction costs [ /GJ J] ~ 0.5 / l diesel eqv. 50 40 30 20 10 0 Chemrec CHOREN FZK TU Wien Abengoa CFB Abengoa EF CUTEC 0 1 2 3 4 5 6 7 8 9 Total biomass provision costs at BtL plant [ /GJ]

Energy Efficiency for different Conversion Routes 100 % 80 % FT-Diesel DME Ethanol Ener rgy efficie ency 60 % 40 % 20 % Co-fuel: FT-Naphtha, Methanol or Propanol Power District i t heat 0 % CHOREN FZK CUTEC TU Wien Chemrec Aben ngoa-ef Abeng goa-cfb Source: Renew, FP 6

The Princeton Study Dec. 2006

Effective Capital Investment Intensity $/(bbl per day) vs bbl per day diesel eqiv. Source: Princeton University

MARKET ILLUSTRATION

Location of US Pulp Mills. Potential number of large plants: North America 100 & Europe 50

Impact of an average sized pulp mill converted to a Biorefinery Pulp Wood Pulp 400 000 t pulp / y Black liq. energy Biomass Power & stea am Black Liq. Gasific. Syngas Syngas to fuels FUELS Renewable Fuels 115 000 t of Diesel/gasoline Equivalents *) Biomass Renewable waste streams Corresponding to 350 000 t dry biomass / y *) As DME or Methanol Enough for 3000 4500 Heavy Duty Vehicles

NEXT STEP DEMONSTRATIONS

Location of the NewPage Escanaba Mill Escanaba Mill

NewPage - Escanaba Mill Location for US Demonstration ti Most cost-effective and productive mill in NewPage system High quality Kraft and RMP mill Significant operating leverage (over 760,000 tons/year) Supports a broad range of grade mix (freesheet and groundwood) 1,140 employees $74 million annual payroll $20 plus million annual capital outlay $5.2 million state & local taxes

BLGMF Plant Block Flow Diagram Fibre line 1 Black liquor Wood chips Cold alkali impregnation Low sulphidity green liquor GL Storage tank BL Storage tank Offsites and utilities Fibre line 2 Warm BL treatment Hot BL treatment Cooking Bleaching Air Air Separation O 2 N 2 O 2 O 2 supply and N 2 system Weak white liquor LP steam and hot water O 2 BL Feeding & Preparation BL Gasification Unit Syngas Raw gas cooling & washing MeOH absorben t DME & MeOH synthesis DME & MeOH Distillation Purge gas Fusel oil Screening & washing Pulp Drying Alt 1: PS liquor Alt 2: High S white liquor Alt 2: Relatively high S white liquor Alt 1&2: White liquor Sulphur recovery unit N 2 Claus offgas CO 2 to tall oil production or pulp wash Gas Cleaning unit CO-Shift conversion Gas Cleaning unit Product storage MeOH MeOH Final Product Product storage DME DME Final Product

Smurfit Kappa, Piteå. Site for BioDME Pilot. Tentative site for Swedish Demo. Tentative site for Commercial Demo Existing DP-1 New H&P Boiler Planned DME Pilot

Smurfit Kappa, Piteå. Site for BioDME Pilot. Tentative site for Swedish Demo. STATUS: Prefisibility study completed April 08 Partners have agreed to continue work without delay THANK YOU!