Biomass Collection: A Challenge for Cellulosic Ethanol Production 2015 NSF FEW Nexus Workshop José Leboreiro, Ph.D. Rapid City October 19, 2015
Outline Introduction ADM Overview Biofuels Perspective on Feedstocks Cellulosic Ethanol Transportation Model Farmer Participation Scaling Function Corn Replacement Feed: A Stepping Stone Upgrading Crop Residue Feed Trials Final Remarks ARCHER DANIELS MIDLAND COMPANY 2
Outline Introduction ADM Overview Biofuels Perspective on Feedstocks Cellulosic Ethanol Transportation Model Farmer Participation Scaling Function Corn Replacement Feed: A Stepping Stone Upgrading Crop Residue Feed Trials Final Remarks ARCHER DANIELS MIDLAND COMPANY 3
ADM A History of Biorefinery Innovation $81B in net sales FY14, 270 Processing facilities, 33k employees Global Headquarters in Chicago, IL Founded in 1902 as a linseed crushing operation Stable earnings from a broad product portfolio Four traditional business platforms: Food, Feed, Fuel, Industrial Products ADM Global Daily Processing Capacity Source: 2014 ADM 10-K Number MT Bushels Oilseed processing facilities 158 165,000 6.1 MM Corn processing facilities 18 76,000 3.0 MM Ag Services processing facilities 96 36,000 1.3 MM Other processing facilities 28 N/A N.A. Current (1962 2001) Before 1962 ARCHER DANIELS MIDLAND COMPANY 4
global T anomality [ C] crude oil price [$/barrel] Interest in Biofuels 0.6 160 0.4 0.2 0 140 120 100 80-0.2-0.4 Hansen et. al., 2006-0.6 1850 1900 1950 2000 2050 year Environmental concerns of green house gases 60 40 20 Source: http://www.eia.gov/ 0 1986 1990 1995 2000 2004 2009 2014 year Increasing costs of fossil fuels Increase interest in biofuels ARCHER DANIELS MIDLAND COMPANY 5
Corn Stover as Feedstock for Biofuels First generation Second generation Corn stover plentiful sources of cellulosic feedstock estimated 100 million Mg per year (Graham et. al., 2007) ARCHER DANIELS MIDLAND COMPANY 6
Perspective on Agricultural Feedstocks 8 6 4 2 0 population [billions]10 year [-] Increase in population Increase in agricultural products Source: http://esa.un.org/wpp/unpp/panel_population.htm ARCHER DANIELS MIDLAND COMPANY 7
World Trends We see three trends shaping world demand Agriculture will play a growing role in satisfying all three More food to feed a growing world More secure, diversified, renewable, sustainable energy Growing desire for environmental improvement ARCHER DANIELS MIDLAND COMPANY 8
Index [-] Agricultural productivity is the key 3.0 2.5 2.0 1.5 1.0 0.5 Input 0.0 1940 1960 1980 2000 2020 year [-] 2.5X production with same water, fertilizers, pesticides, labor, Source: www.ers.usda.gov Output Productivity Index 1948 = 1 ARCHER DANIELS MIDLAND COMPANY 9
area planted [k acre] yield [bu/acre] Corn Agriculture 100 80 60 40 20 200 150 100 50 0 1980 2010 0 1980 2010 64,000 acres have bee created Source: http://www.nass.usda.gov/ ARCHER DANIELS MIDLAND COMPANY 10
Agricultural Residue Increasing yield leads to increasing agricultural residue Stalks, cobs and leaves are not widely used - Fuel to generate energy - Corn replacement feed - Feedstock for chemicals ARCHER DANIELS MIDLAND COMPANY 11
Outline Introduction ADM Overview Biofuels Perspective on Feedstocks Cellulosic Ethanol Transportation Model Farmer Participation Scaling Function Corn Replacement Feed: A Stepping Stone Upgrading Crop Residue Feed Trials Final Remarks ARCHER DANIELS MIDLAND COMPANY 12
Logistic Hurdles and Optimum Plant size Characteristics leading to logistic hurdles - Collection from many farms - Collection is labor intensive - Low energy density leads to expensive transportation Plant size Cost Economy of Scale Competing Factors Cost Transportation Cost Optimum plant size minimizes production cost ARCHER DANIELS MIDLAND COMPANY 13
Diagram of Transportation Model Harvest Bailing Loading Transportation to Storage Transportation to Plant Storage Transportation to Plant Processing Details of model: Leboreiro and Hilaly (2010,2013) ARCHER DANIELS MIDLAND COMPANY 14
Sustainable biomass harvest Requires information on: Crop inputs Rotation Corn stover mass is much larger than soy stubble Yield Higher yields mean more plant residue Residue loss Slope more residue is needed to control erosion on steeper fields Tillage more tillage increases decay rate Soil type decay rates are faster in sandier soils Latitude decay rates are faster in warmer environments Longitude decay rates are faster in wetter environments ARCHER DANIELS MIDLAND COMPANY 15
Collection Area and Radius Collection Area A c Y s F f F c D F p s F a ( 1 Fl ) Corn Stover Annual Demand Yield per Acre Loss Fraction of Farmland Corn Fraction Accessible Fraction Farmers Participation R c Plant Farm A c ARCHER DANIELS MIDLAND COMPANY 16
Storage of Feedstock Corn stover is left on field during harvesting ~ 3 months Only 9 months of feedstock is sent to storage Avg. transportation distance to storage depot of 8 km Corn stover direct to plant R c Tarp hoop structures R s 10 9 8 7 Bale Arrangement Corn Stover to storage ARCHER DANIELS MIDLAND COMPANY 17
cost sensitivity [$/m 3 ] Sensitivity to Farmer Participation 0-100 -200-300 -400-500 -600-700 -800-900 0.0 0.2 0.4 0.6 0.8 1.0 farmer participation [-] Production cost highly sensitive to F p < 0.4 Biofuel producers should target F p = 0.5 (Leboreiro and Hilaly, 2010) ARCHER DANIELS MIDLAND COMPANY 18
Proposed Scaling Function New scaling function for fermentation-based biorefineries C TPEC k P m P Purchase Equipment Cost Bio-reactors Other Accounts for the linear scaling behavior of bio-reactors as well as the exponential nature of all other plant equipment ARCHER DANIELS MIDLAND COMPANY 19
production cost [$/m 3 ] Total Production Cost Breakdown 700 600 500 400 300 200 100 0 corn stover fixed plant variable fixed depot 0 5000 10000 15000 plant capacity [Mg/d] Competing factors are observed Depots do not present economies of scale ARCHER DANIELS MIDLAND COMPANY 20
production cost [$/m] Impact of Farmer Participation 1100 1000 Base Case = 0.5 F p 900 800 700 0 5000 10000 15000 plant capacity [Mg/d] Minimum production cost: 789 830 $/m 3 2.98 3.14 $/gal Optimum capacities: 5750 9850 Mg/d (Leboreiro and Hilaly, 2013) ARCHER DANIELS MIDLAND COMPANY 21
Challenge Delivered corn stover cost ~ $80 per ton or $1.10 per gal Mine mouth supply Distributed supply Economic viability of second generation biofuels from agricultural residues depends on resolving the logistic complexity of collection(overend, 1982) ARCHER DANIELS MIDLAND COMPANY 22
Outline Introduction ADM Overview Biofuels Perspective on Feedstocks Cellulosic Ethanol Transportation Model Farmer Participation Scaling Function Corn Replacement Feed: A Stepping Stone Upgrading Crop Residue Feed Trials Final Remarks ARCHER DANIELS MIDLAND COMPANY 23
Making more of today s crops Can fibrous biomass replace some grain in cattle feed? ADM has worked with major universities to treat crop residues with hydrolyzing agents to make them digestible for cattle This enables greater food and energy production from existing crop acres ARCHER DANIELS MIDLAND COMPANY 24
Food, Seed & Industrial 9.3% Corn Replacement Feed: A Stepping Stone Total corn supply for the 2013/14 cycle 14,686 million bu Export 13.1% Ending Stock 8.9% Feed & Residual 34.3% Source: http://www.usda.gov/oce/commodity/wasde/ Ethanol & Coproducts 34.9% ARCHER DANIELS MIDLAND COMPANY 25
dry mater digestion [%] Digestibility Fibrous biomass (stover) is less digestible than corn grain 100 80 60 40 20 0 stalk leaf husk sheath cob grain Incubated 48 hours in buffered rumen fluid from beef cattle Contained fibrolytic and non-fibrolytic microbial species (bacteria, yeast, fungi) Source: Iowa State University ARCHER DANIELS MIDLAND COMPANY 26
Integrated Approach pre-treatment transportation feed pre-treatment ARCHER DANIELS MIDLAND COMPANY 27
Alkaline Treatment of Biomass Alkali treatment processes: NaOH (caustic soda) NaOH + CaO or Ca(OH) 2 (lime) Ammonia Advantages of lime treatment Handling & Safety (less caustic than NaOH) Environmental (Ca has less impact on soils than Na) Hydrate Lime product sold in USA specifically for treating crop residues (MS Lime Company) ARCHER DANIELS MIDLAND COMPANY 28
Weight gain, lb./day Better Performance Beef cattle fed distillers grains and alkaline treated biomass performed better than cattle fed high corn rations 4.01 a Ration pounds of feed per pound of gain 3.78 abc 3.83 ab Corn ration 6.83 Corn replacement feed 3.55 cd 3.49 d Untreated straw 7.12 Treated straw 6.44 Untreated stover 7.18 Corn Ration CRF - NO TRT CRF - TRT CRF - NO TRT CRF - TRT Treated stover 6.82 abcd Means with uncommon letters are different (P < 0.05) Source: Chemical treatment of low quality forages to replace corn in cattle replacement cattle finishing diets, A. Shreck et al., University of Nebraska, Beef Day Report, 2012 ARCHER DANIELS MIDLAND COMPANY 29
Large-scale Processing of Stover and Straw ADM trial (Oregon, June 2012) price competitive to corn Bulk lime added to water Lime suspension applied Lime pumped to grinder Treated stover pile ARCHER DANIELS MIDLAND COMPANY 30
Outline Introduction ADM Overview Biofuels Perspective on Feedstocks Cellulosic Ethanol Transportation Model Farmer Participation Scaling Function Corn Replacement Feed: A Stepping Stone Upgrading Crop Residue Feed Trials Final Remarks ARCHER DANIELS MIDLAND COMPANY 31
Three Keys to Continue Progress Innovation: new seed technology, new fertilizers to increase productivity, crop protection, increase in water utilization, new process technologies (e.g., catalyst, fermentation, separations) Investments: in agricultural infrastructure, to enable the handling of larger crop volumes, as well as both food crops and biomass, R&D Partnerships: public and private sector, civil society, academia, NGOs ARCHER DANIELS MIDLAND COMPANY 32
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