Forestry residues and biorefinery approach. Timo Huhtisaari 9.11.2016 North European Oil Trade Oy - NEOT was established in January 2003 and operations started on the 1 st of February 2004. - NEOT is registered in Finland and is owned by two Finnish companies SOK and St1 Nordic Oy. SOK owns 50,8% of the company and St1 Nordic Oy 49,2%. - NEOT is a significant independent fuel procurement company in the Baltic Sea region and actively operates on the global trading markets - We offer high-quality sea transportation, road transportation and terminal services for third parties - NEOT supply annually (2016 ) approx. 8 billion liters of oil products - Our market share of Finnish traffic fuel supply is approx. 43%, Finland Tel. Tel. +358 +358 10 10 76 76 80958 80958 Fax. Fax. +358 +358 10 10 76 76 80859 80859
NEOT Evolution 1,0 2007 Operations started 2004 2,0 2009 Acquisition of Hamina terminal 2009 3,0 2011 Shell supply integration 2011 3,5 2013 Independent diversified supply 2013 5,0 2014 BioTech Oy founded 2014 8,0 2016 Shell Norway supply Integration NEOT A/S founded 2015 2003 Foundation 4 PERSONNEL 2007 Esso supply integration 40 2011 Sales 3,5 Billion 56 12 PERSONNEL PERSONNEL PERSONNEL Independent Legal company Swedish supply Integration starts Net sales 4,7 b 72 PERSONNEL Terminal operations sold to St1 Biofuels Swedish supply Integration contin. Net sales est. >5 b 35 PERSONNEL Göteborg Etanolix started Kajaani Cellunolix Construction works started 40 PERSONNEL Terminal network and supply chain Bergen/Skålevik Haugesund Tananger Namsos Ålesund Mongstad Slagen Fredericia Oslo Brofjorden Gothenburg Kalundborg Bodö Gävle Tromsö Karlstad Jönköping Luleå Vaasa Pori Naantali Södertälje Visby Oulu Kuopio Kirkenes Varkaus Lappeenranta Hamina Porvoo Gdansk
Global Energy trends, Finland Tel. +358 10 76 80958 EU:Member States Effort sharing decisions (Target for reduction by 2030 compared to 2005) Transport must fulfil more than the percentage as other sectors suffer with high targets Example Finland Target Renewable energy in transport 59 % (with double counting) 50% GHG reduction from Amount of renewable fuels needed 1155 ktoe 1400 ktoe
Round Soft Wood Usage at Saw Mill Output Sawdust 14% Bark 12% Timber 44% Chips 30% From sawdust to advanced biofuel Energy & utilities Steam Electricity Process water Cooling water Chemicals Enzymes Yeast.. Saw dust/chip Ethanol 100% Pretreatment Hydrolysis Fermentation Distillation & Dehydration Ethanol Other products Lignin Syrup/Vinasse Turpentine Furfural CO2 Biogas. Waste water Process waste water
Saw Mill Feedstock Receiving Power Plant Cellunolix Ethanol Plant Cellunolix Kajaani Saw Dust Silo Feedstock Receiving Ethanol Storage Hydrolysis & Fermentor Tanks Ethanol Loading
Starting point 06/2015 Cleaning up 11/2015
First Equipment 11/2015 More Equipment 1/2016 Tislaamoiden perustukset valmiit ja peitetyt
Work in Progress in Summer 2016 Neighbours visiting the site 9/2016
Biorefinery waste refining CONS Feedstock Usually low yields Challenges in feedstock variation in quality and quantity Challenges in agreement space master & slave High CAPEX Need robust process More products more complex process High OPEX More demanding operation Complex process High M&R PROS + Feedstock Low feedstock cost can be even income CO2 reduction 0 emissions from feedstock Credits from co products Incomes Premiums (advanced/cellulosic, double counted etc if available) Co product incomes Feed in tariffs (electricity) High value products Financing Support programs Partnering & Marketing ECO systems Story to tell 0010011/10/2016 Helsinki St1 Company Presentation 17 50 Mliter Cellunolix Biorefinery impact 450.000 t saw mill residues: Saw Dust Stable long term agreement for side product off take 140 M investment in waste to ethanol technology developed in Finland 25 direct jobs and ca. 250 more in logistics and services Ethanol 50.000.000 liters 72.000 t C0 2 Reduction Eq of 23.000 cars 25.500 TOE Avoided Oil Import Renewable Chemical Products Turpentine Furfural Nitrogen Fertilizer Liquid Carbon Dioxide >10.000.000 sales value Lignin Pellets 582.000 MWh/a Biomethane 145.000 MWh/a 248.000 t C0 2 Reduction 105.000 t Avoided Coal Import EU Potential from soft wood saw mill residues is >3.000.000 m 3 (eq. of 1,53 MTOE) Urho Kekkosen katu 5C, Finland Tel. +358 10 76 80958
What to do in order to fulfill the potential of biorefineries 1. Reduce production cost 2. Increase the value of side products 3. Have policy support to develop process long term and find ways to utilize the Biorefinery