REDEFINERY: A Large scale Biorefinery Cluster Initiative Presentation: 1. Short Intro to BBD 2. REDEFINERY Aldert van der Kooij Agro meets Chemistry The conversion of lignocellulose into chemical building blocks. Stichting Biobased Delta www.biobaseddelta.nl 1
Biobased Delta Eco-system An available market (ARRR cluster) World class agro & chemical industry Biotechnology & green chemistry Circular Economy A feedstock position Local biomasss & imports A successful Triple helix Best in class infrastructure 2
Towards a RE(DE)FINERY implementation for Green Chemicals, Fuels and Energy The conversion of lignocellulose into chemical building blocks and biofuels 3
Our message today: A large scale RE(DE)FINERY implementation for Green Chemicals, Fuels and Energy in Europe is economically feasible today.. and we need it! 4 4
Large scale 1 st gen biorefineries Biorefinery Lestrem, France (Wheat based) Biorefinery Blair, NE (Corn based) 6 6
Industrial scale 2 nd gen ethanol plants M&G, Crescentino, Italy Location Company Biomass in [ktpa] Capex [M } CapEx BioRef Part [M ] Capex boiler [M ] Sugars used for: USA DSM-POET 250 205 120 45 75 ktpa ethanol Italy M&G 160 max 270 140 70 40 40 ktpa ethanol USA Abengoa 350 260 170 50 75 ktpa ethanol Brasil GraalBio 300 225 150 45 65 ktpa ethanol Stichting Biobased Delta 7 USA DuPont 275-375 200+ 150+ - 90 ktpa ethanol
Biomass Availability & Logistics EU production of wood [in kt per year] 9
Bio-Refinery is the heart of REDEFINERY Energy (like CHP) Others Lignin Port Authority Fuels/ Chemical Products Bio Refinery Wood pellets >1 to 4 Mtpa Chemical Products Sugars Investors Fuels Grants BioRef: Converts lignocellulose to sugars and lignin Delivers utilities: steam, electricity and (waste) water (treatment) Supplies logistics and procurement of raw materials Bio-Refinery: Private Public Partnership: Investors Corporations Public sector Bio-Refinery Technology: Steam explosion (TRL 8-9) followed by Enzymatic hydrolysis (TRL 8-9) to sugars (C5/6) Lignin recovery by filtering out 11
The ingredients for success: Large scale 1 st gen biorefineries Industrial size 2 nd gen ethanol plants Integrated industrial clusters Scalability e.g. Paper & Pulp industry Biomass availability & Logistics Outlets for C5/C6 sugars and Lignin NREL public domain info TEE model validation What about the results of the TEE? 12 12
Biorefinery costs based on NREL model Sugars @ 340-240 /t are highly competitive Assumptions: a. Lo: biomass @ 100 /t Hi @ 130 /t (delivered) b. Lignin value equals biomass cost price in /t c. Lignin higher calorific value compensates humidity in wet cake d. Biomass is softwood e. 67% of biomass to sugars, rest to lignin f. Heat, Power, Waste in variable cost g. Capital charge is 12% h. /$ = 0,89 i. L5, NY11 is September 2016 (delivered) 13 13
Transfer prices Study on costs distribution among the final products, lignin and sugars, for Central plant; Project feasibility: net present value of zero at year 10, IRR 12 %; Fixed wood pellet price of 130 /t (100% ds). NPV>0 NPV<0 Bitumen Coal value Aromatics Hydrocracking Pyrolysis bio-oil Wood pellet value Phenol/ polyols Either the lignin is sold at lower prices, at the expense of the sugars buyers, or at higher prices, requiring a high valorisation of this material. 14
Economics (example; no subsidies) Central Plant n-butanol & acetone Ethanol Lactic acid Succinic acid Production 1 000 kt/a sugars 381 kt/a lignin 71 kt/a n-butanol 36 kt/a acetone 12 kt/a ethanol 93 kt/a 184 kt/a 170 kt/a Sales Revenue (M /a) 330 119 42 203 240 Total Capital investment (M ) 296 39 47 154 420 Total Manufacturing Costs (M /a) 324 135 70 149 162 Profitability Cash Flow (M /a) 49-6 -13 61 116 NPV (M ) -1-67 -118 202 267 Return on Investment (After tax) (%) 8-23 -37 31 19 IRR (%) 12 - - 38 25 CAPEX estimations: Central Plant: NREL process; n-butanol & acetone: retrofitting of an ethanol production facility; Ethanol: DSM POET plant; Lactic acid: Corbion plant in Thailand; Succinic acid: Production plant in Canada (crystallizers have high impact on CAPEX). To improve the economics of the cluster as a whole, ethanol should be replaced. 15
Whole cluster (Example) Biomass capacity equal to 1.5 Mt/a; Cluster outputs defined as lignin, furfural (47 kt/a), lactic acid (420 kt/a) and succinic acid (386 kt/a); Lignin at polyol, wood pellet and no value; CAPEX and OPEX calculated as the sum of the individual CAPEX and OPEX for the Central plant and satellite companies. Lignin at polyol value (400 /t) Lignin at wood pellet value (130 /t) Lignin with no value (0 /t) Sales Revenue (M /a) 1494 1391 1342 Profitability Cash Flow (M /a) 552 475 438 NPV (M ) 1833 1397 1187 Return on Investment (After tax) (%) 31 25 23 IRR (%) 39 33 30 It is clear that the furfural and organic acids production brings rather high advantages for the whole cluster; Even in the scenario where lignin is taken with no value a quite high IRR is achieved. 16
Perspective and Derisking power + heat power + heat marine & transport fuels polyfenols & aromatics lignin lignin lignin lignin 0.2 0.3 Mtpa existing 0.8-1 Mtpa demo 2-4 Mtpa full scale 2-4 Mtpa full scale sugar sugar sugar sugar ethanol building blocks building blocks building blocks Scale X 4 Scale X 4 Scale, Time and Added Value 2020 2023 2026 17
REDEFINERY Impact NL Assumption: 3 Clusters in NL operational by 2030 In total 7 Mtpa wood pellets input and converted Equivalent 10 15 Mtpa CO 2 reduction This implies for NL 11 17 % of agreed CO 2 reduction in 2030 Required investments: between 2 and 10 billion Direct Employment: 15,000 fte (Indirect: a multiplier of 3) 18
REDEFINERY 4 Europe The REDEFINERY initiative is possible at different locations with different lignocellulosic feedstocks and different end-products. A tie-in to (petro)chemical clusters is highly preferred. 25 deep sea harbors in Europe also have a (petro)chemical complex. 25 full size REDEFINERY clusters account for 150 200 Mtpa CO 2 reduction. 19
We are looking for Partners to realize it Feed stock suppliers Take off sugars Take off lignin Further down stream processing SME for innovation Interested? Aldert van der Kooij, project manager REDEFINERY Aldert.vanderkooij@biobaseddelta.nl +31 6 2909 8245 20
Annexes 21
Biobased Delta approach: stakeholders, drivers, interactions and agenda Large Agenda 1.Sugar Delta 2. Redefinery 3. Biorizon Regional Agenda 22
International Collaboration Netherlands- Flanders BIG-C 3BI Intercluster Bio Industrial Innovation Canada Focus: lignin valorization Living Labs Brasil 23