Second Annual California Biomass Collaborative Forum John Ferrell Office of Biomass Program U.S. Department of Energy March 1, 2005 Federal Goals for Biorefinery Development and Implications for Fuel and Power in California
Strategic Direction EERE Portfolio Priorities Dramatically reduce or even end dependence on foreign oil Reduce burden of energy prices on the disadvantaged Increase the viability and deployment of renewable energy technologies Increase the reliability and efficiency of electricity generation, delivery and use Increase the efficiency of buildings and appliances Increase the efficiency/reduce the energy intensity of industry Create the new domestic bioindustry Lead by example through Government s own actions
Biomass R&D Act Role of Biorefineries Findings Grain processing mills are biorefineries that produce a diversity of useful food, chemical, feed, and fuel products Technologies that result in further diversification of the range of value-added biobased industrial products can meet a key need for the grain processing industry
P A T H W A Y S Pathways to Biorefineries
Billion Ton Study
Billion Ton Study Are there sufficient resources to meet 30% of the country s petroleum requirements? Yes, land resources of the U.S. can sustainably supply more than 1.3 billion dry tons annually and still continue to meet food, feed, and export demands Realizing this potential will require R&D, policy change, stakeholder involvement Required changes are not unreasonable given current trends Forest resources 368 Agricultural resources 933 Total resource potential 1301 0 200 400 600 800 1000 1200 1400 Million dry tons per year
Pathways 2005 and Beyond Pathway 1 A1 Pathway 2 A2 Pathway 3 A3 Milestones A Milestones Integrates Pathways and subsequent A Milestones across WBS Allows project milestones and cost targets to apply directly to pathways Project/Task aligned with program and on critical path Project/Task aligned with program not on critical path Allows resources to be focused on technology development critical to a pathway without sacrificing the long term Enables dynamic response to changes in resource loading
Agricultural Sector Biorefinery Pathways Biorefinery Pathway Wet and Dry Mills Feedstocks Corn Grain Other Grains Conversion Pathway Options Under Consideration (each has a B Milestone - cost target ) Residual Starch Conversion Fiber Conversion New Fractionation Process Products from C 5/C6 Sugars Products from Oils Residual Starch Conversion DDG Conversion New Fractionation Process Products from C 5/C6 Sugars ADM NCGA Cargill NCGA Abengoa Broin Dupont Industrial Partners Aventine Nature Works, LLC Program A Milestones Complete systems level demonstration and validation of all technologies to improve corn wet mill facilities using corn grain feedstock Complete systems level demonstration and validation of all technologies to improve corn dry mill facilities using corn (and other ) grain feedstock Oil Crops Oil Crops Products from Oils ADM Complete systems level demonstration and validation of all technologies to improve natural oil processing facilities using oil crop feedstock Agriculture Residues Corn Stover Small Grain Straw Rice Straw Biomass Sugar Production Products from C5/C6 Sugars Products from Lignin Biomass Gasification Products from Synthesis Gas New Fractionation Processes Products from New Process Intermediates Abengoa Dupont Cargill Nature Works LLC Complete systems level demonstration and validation of all technologies to improve processing facilities using agricultural residue feedstocks Perennial Crops Grasses Woody Crops Biomass Sugar Production Products from C5/C6 Sugars Products from Lignin Biomass Gasification Products from Synthesis Gas New Fractionation Processes Products from New Process Intermediates New Consolidated Processes None Complete systems level demonstration and validation of all technologies to improve processing facilities using Perennial Crops
Forest Sector Biorefinery Pathways Biorefinery Pathway Pulp and Paper Mills Feedstocks Wood Mill Wastes Conversion Pathway Options Under Consideration (each has a B Milestone - cost target ) New Fractionation Process for Hemicellulose Removal Products from C 5/C6 Sugars Black Liquor Gasification Products from BLG Syn Gas Partners Georgia-Pacific Agenda 2020 Program A Milestones Complete systems level demonstration and validation of all technologies to improve corn wet mill facilities using corn grain feedstock Forest Product Mills Wood Mill Wastes Pyrolysis Oil Upgrading None Complete systems level demonstration and validation of all technologies to improve corn dry mill facilities using corn (and other ) grain feedstock Forest Residues Logging Residues Fuel Treatments Biomass Sugar Production Products from C 5/C6 Sugars Products from Lignin Biomass Gasification Products from Synthesis Gas New Fractionation Processes Products from New Process Intermediates None Complete systems level demonstration and validation of all technologies to improve natural oil processing facilities using oil crop feedstock Non-Forest Wood Wastes MSW & Urban Wood Wastes Biomass Sugar Production Products from C 5/C6 Sugars Products from Lignin Biomass Gasification Products from Synthesis Gas New Fractionation Processes Products from New Process Intermediates None Complete systems level demonstration and validation of all technologies to improve processing facilities using agricultural residue feedstocks
Pathway Investment Stage Gate Wet Mill, Dry Mill and Ag Residue Pathways Platform R&D Independent Commercial Developments Products Solicitation CRADA S & Projects Biorefinery Solicitation 2008 Solicitation A Milestone Met Concept Development Concept Proof Technical Viability Commercial Viability Delays in attainment of performance criteria Commercial Sustainability Core Research And Development 100% / 0% Technology Development (Bench Scale) Proof of Concept (Pilot Scale) Commercially Viable Demo (Demonstration Scale Plant) 80% / 20% 50% / 50% 20% / 80% Permitting Engineering Construction Operation Loan Guarantee and/or Risk Mitigation
Enzymatic Hydrolysis Research NREL worked with Genencor & Novozymes for 4+ years Focus on enzyme biochemistry, cost, specific activity, and Interaction of biomass pre-treatment and enzymatic hydrolysis Major Industry Partners RESULT: G.T. 10-fold reduction in cost contribution of enzymes ($/gal EtOH) E1 from A. cellulotiticus CBH1 from T. reesei +2 +1-1 -2 Y82 cellodextrin Courtesy of M. Himmel (NREL)
Major Biorefinery Projects Broin A Second Generation Dry Mill Biorefinery Improve economics of existing dry mills by adding additional coproducts and increasing ethanol yields Technologies: Fractionation Pretreatment Hydrolysis Fermentation Accomplishments: Use of corn bran in bench scale fermentation to demonstrate increased ethanol production. Pathway: Corn Dry Mill
Major Biorefinery Projects ADM/NCGA Separation of Corn Fiber and Conversion to Fuels and Chemicals Economically derive high value chemicals and oils from corn fiber. Technologies: Hydrolysis Separations Catalysis Accomplishments: Decision made to continue to pilot scale testing. Spurred secondary project leading to potential major breakthrough in Biodiesel production. Pathway: Corn Wet Mill
Major Biorefinery Projects Cargill New Biorefinery Platform Intermediate Project Develop a new bio-based platform technology to produce a portfolio of products based on 3-HP (3-hydrolxpropionic acid) produced by the fermentation of carbohydrates Technologies: Strain development Fermentation Catalysis Accomplishments: A suitable strain was selected. A reactor configuration, catalyst and operating conditions have been identified. Pathway: Corn Wet Mill
Major Biorefinery Projects Nature Works, LLC Making the Industrial Biorefinery Happen Develop and validate process technology for use with sustainable agricultural systems to economically produce sugars and chemicals such as lactic acid and ethanol. Technologies: Strain development Fermentation Pretreatment Hydrolysis Accomplishments: Economic feasibility modeling has been done and initial PFD s developed. Improved strains have been developed. Pathway: Corn Wet Mill Ag Residue
Major Biorefinery Projects Nature Works LLC/MAT Collection, Commercial Processing and Utilization of Corn Stover Develop and test new harvesting and transportation technologies for corn stover, evaluate wet storage, engineer a fermentation system. Technologies: Harvesting Storage Hydrolysis Fermentation Accomplishments: Report issued regarding issues around the development of a biobased supply chain Storage bunker was designed built and loaded with stover. Pathway: Ag residue
Major Biorefinery Projects DuPont Biorefinery Project Integrated Corn Based Biorefinery Project Develop the Integrated Corn Based Biorefinery for the parallel production of Fuel Ethanol and PDO (1,3 propanediol). Technologies: Strain development Fermentation Pretreatment Hydrolysis Accomplishments: Presented economics on the ICBR showing that the production of PDO in an integrated biorefinery had significantly higher ROI s than the biological production in a nonintegrated facility and than from the petroleum route. In 2004, DuPont and Tate & Lyle formed a JV to produce PDO biologically from wet mill derived glucose. Pathway: Corn Dry Mill Ag Residue
Major Biorefinery Projects Abengoa Bioenergy LLC Advanced Biorefining of Distiller s Grain and Corn Stover Blends Develop a novel biomass derived process technology that utilizes advanced biorefined Distiller s Grains and Corn Stover blends to achieve higher ethanol yields in a dry mill. Technologies: Strain development Fermentation Pretreatment Hydrolysis Accomplishments: Dry mill portion of Pilot plant trouble shooting and base line runs started. Pathway: Corn Dry Mill Ag Residue
Biomass Funding Today Earmarks and Total Funding $150 $140 $130 $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Millions of Dollars per Year 81 94 13 18 74 39 80 30 Legend Earmarks Total Funds Available for Planned Activities FY00 FY 01 FY 02 FY 03 FY 04 FY05 FY06 60 42 52 35? Three-fold increase in earmarks since 2000 Earmarks have grown from 18% to over 40% of the total funding Real decline in the available funds used in support planned R&D and biorefinery support Objectives can not be achieved if trends continue to FY06 and beyond
Path Forward Conferences: 1st International Biorefinery Workshop July 20-21, 2005, Washington, D.C. Biorefinery Analysis: Summer of 2005 Solicitations: Plan an FY 2008 competitive solicitation for demonstration scale plants Focus: Dry Mill, Wet Mill, and Ag Residue Pathways Partners established Closest to fruition Sugars Platform Targets Addressing the Conversion of Recalcitrant Starch, Corn Fiber and Ag Residues Critical path for both existing projects and long term goals Products Solicitation Projects to Anchor Future Biorefinery Projects Concentrate on Thermochemical Conversion of Lignin to Heat, Power, and/or Products Becomes a critical path for ag residues Expand to forest sector when possible
Deployment Barriers Development Costs Private Cost-Share: OBP Cost-Share: Project Timeline: Development Stages: Unexpected Cost: Risk Mitigation: A Milestone Achieved Technical Risk Minimized Current Biorefinery Projects Potential Future OBP/EERE Deployment Efforts (to overcome financial barriers) First Commercial Plant Procurement Mechanical completion Commissioning Attainment of performance criteria Delays in attainment of performance criteria Basic R&D 100% / 0% Technology Development Proof of Concept Commercially Viable Demo Permitting & Engineering Construction Operation 80% / 20% 50% / 50% 20% / 80% Loan Guarantee Program/Risk Mitigation Pool