From lab to commercial success biomass-to-liquid innovations story with VTT

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VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD From lab to commercial success biomass-to-liquid innovations story with VTT Antti Arasto Biomass North Forum 2017 Opportunities for Challenging Times, Thunder Bay 11.10.2017

VTT Technical Research Centre of Finland Ltd VTT100: Creating a bright future: www.vtt.fi/vtt100 75 years experience in supporting our clients growth with top-level research and sciencebased results. Learn more: www.vttresearch.com, #vttpeople, @VTTFinland VTT is one of the leading research and technology organisations in Europe. We use our scientific and technological excellence to provide innovation services for our domestic and international customers and partners. * Loikkanen, T. et al. Roles, effectiveness, and impact of VTT. Towards broad-based impact monitoring of a research and technology organisation. 2013. VTT, Espoo. VTT Technology 113. 106 p. + app. 5 p. Net turnover and other operating income 269 M (VTT Group 2016) Personnel 2,414 (VTT Group 2016) Unique research and testing infrastructure Wide national and international cooperation network 11/10/2017 2

Supporting the Industry in Scaling-Up Fluidized-Bed Biomass Fast Pyrolysis Technology at VTT 3

Integrated fast pyrolysis bio oil production plant Customer: Fortum Power and Heat Oy Create the world s first integrated bio oil production plant & demonstrate the viability of bio oil as a replacement for fossil fuels in heat production VTT s patented process integrates a fluidized-bed boiler with pyrolysis. Produced in this way, bio-oil is more cost-efficient than when produced in a separate pyrolysis process. A short timeline from research to demonstration Replacement of fossil fuel in the generation of heat and power Efficient use of forestry waste streams VTT s role in our research consortium has been crucial. Their long experience and world class competence in fast pyrolysis has enabled a fast track from research to demonstration. Jukka Heiskanen Head of R&D, Heat Division Fortum Power and Heat Oy Improved profitability through integration 11/10/2017 4

Joensuu: an Integrated Bio-Oil Demonstration Plant Bio-oil capacity 30 MW Annual production 50 000 t, 210 GWh Start-up 2013 Feedstock Forest residues, sawdust Reactor and pyrolysis oil recovery inside the boiler building VTT contribution The integrated concept, ITP Operational skills from pilot to demonstration Applications in boilers and engines Active role in ASTM & EN standardization Product quality control Fuel receiving, drying and crushing Bio-oil tanks Technology supplied by 5

Fast pyrolysis of biomass Rapid (1-2 s) thermal (about 500 C) degradation of biomass under inert atmosphere into bio liquid (bio-oil) as main product and into by-products gases and char Bio-oil is initially used to replace fuel oils in heating Fast pyrolysis liquids may be upgraded to higher value products, or fractionated for the production of fuels and chemicals Pyrolysis yields, wt% based on dry feed 100 Fraction wt% 80 60 40 20 Char Gas Water Pyrolysis water Organic liquid Dry matter 0 Biomass Bio-oil 11/10/2017 Energy & Fuels, 2010, 24, pp. 1380-1388 http://www.vtt.fi/inf/pdf/technology/2013/t87.pdf 6

Feedrate kg/h Fast Pyrolysis for Bio-Fuel Oil - Scale-Up 10 000 1 000 FORTUM DEMONSTRATION - JOENSUU, FINLAND 100 FORTUM, PORVOO, FINLAND 10 1 UNION FENOSA, SPAIN 0.1 0.01 UNIVERSITY OF WATERLOO, CANADA ENEL, BASTARDO, ITALY VTT Participates to All Four Fast Thermal Pyrolysis Pilot Plants in Europe During 1994-2003 VALMET, TAMPERE, FINLAND 1980 1985 1990 1995 2000 2005 2010 2015 11/10/2017 7

Long-term R&D co-operation with partners produces results Pyrolysis as an example 1980 s First Finnish R&D laboratory studies on pyrolysis (VTT) 2007 Technology development consortium formed (Valmet, UPM, VTT) Tekes support starts Cold model tests for oil production start at Valmet R&D Center in Tampere 2010 Pyrolysis oil combustion tests Start of concept planning for a commercial demo plant 2013 - R&D projects on pyrolysis oil upgrading on-going Press release March 11, 2014 Fortum, UPM and Valmet are jointly developing technology to produce advanced biomass based fuels 1990 s First R&D projects including Finnish companies 2009 Fortum joins development consortium Bio-oil pilot tests at Valmet R&D Center starts 2012 Fortum and Valmet sign contract on Joensuu plant 2013 Commissioning and commercial operation of Joensuu plant June 30, 2015 Joensuu plant handed over to Fortum 8 Valmet Joakim Autio

Elements that led to success (in no particular order) Perseverance in combination to highly motivated and capable team Close industrial collaboration International collaboration (especially IEA Bioenergy) Constant self evaluation and combining of modelling (steady state &CFD), techno-economic evaluation and experimental work Bio-oil characterization built to serve industrial efforts and standardization Policy analysis and dialog among actors (policymakers, industry, research) 11/10/2017 9

Construction of the VTT Fast Pyrolysis Pilot 10