Bioenergy: From Concept to Commercial Processes Biorefinery Process Economics An in-depth, independent technical and economic evaluation by the PEP program Gregory M. Bohlmann gbohlmann@sriconsulting.com March 9,2006
Biorefinery Process Economics Agenda Biorefinery Research Whole Corn Biorefinery Core Conversion Technologies Capital Costs Process Economics Economic Issues Feedstock Coproducts Waste Issues Conclusions 04/052
Early Biorefineries Corn Dry Mill Raw Sugar Mill Corn Grain Enzymes Milling & Saccharification Sugarcane Water Milling & Evaporation Bagasse Sugars Crystallization Raw Sugar Anaerobic Fermentation Fermentation Molasses Distillation Distillation Ethanol DDGS Ethanol 04/053
Feedstock Price as Driving Factor pportunity grows for renewable resources 10 9 8 7 6 5 4 3 2 1 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Crude il, $/ft3 Natural gas, $/thous ft3 Corn, $/bushel 04/054
Biorefinery Research Worldwide Interest Brazil Leverage sugar mills Europe Kyoto driven BREW project funded by EC United States Leverage corn milling and other agricultural assets Projects funded by Dept. of Energy (DE) and Dept. of Agriculture (USDA) 04/055
U.S. Biorefinery Research 2003 DE/USDA Funded Projects Integrated Corn Biorefinery (ICBR) DuPont, Diversa, NREL, MSU Sugars from lignocellulosics NatureWorks, Iowa State University Corn fiber separation and conversion National Corn Growers, ADM, PNNL Starch and biomass conversion pilot plant Abengoa, Novozymes, NREL Large scale pilot facility in York, Nebraska 04/056
Whole Corn Biorefinery Whole corn biorefinery utilizes entire corn plant Grain % Dry Basis Stover % Dry Basis Starch 72.0 Cellulose 37.3 Celluloses 10.5 Xylan 20.6 Protein 9.5 Lignin 17.5 il 4.5 Galac./Man. 1.4 Sugars 2.0 Arabinan 2.1 Ash 1.5 Ash 6.1 Acetate 2.0 Extractives 13.0 Source: McAloon et al., 2000. 04/057
Whole Corn Biorefinery Core Conversion Technologies Sugar platform technologies Pretreatment Saccharification Fermentation technologies Engineered microorganisms e.g. S. cerevisiae, Z. mobilis and E. coli Milling technologies Starch conversion to sugar 04/058
Whole Corn Biorefinery Gypsum Water Whole Corn Stover Pretreatment Separation (Field) Kernels Dry Mill & Sacch. Enzymes Enzyme Sacch. & CoFerm Acidification Fermentation Air Distillation Recovery & Purification DDGS Recovery Ethanol Lignin 1,3-Propanediol DDGS 04/059
Capital Costs Total Fixed Capital, million $ 800 700 600 500 400 300 200 100 0 Base Case: 580 mill. Lb/yr PD 65 mill. Gal/yr EtH 0 2 4 6 8 10 Biorefinery Dry Mill Feed Thousand Metric Tons/Day Source: PEP Report 257 04/0510
Whole Corn Biorefinery Battery Limits Investment 27% Recovery & Purification 26% Pretreatment & Conditioning DDGS Recovery 2% Saccharification & Co-Fermentation Aerobic Fermentation 11% 14% 3% 17% Dry Mill & Saccharification Distillation & Dehydration 04/0511
Biorefinery ff-sites Capital 39% General Facilities ther Utilities 6% 7% Steam 15% Cooling 26% 33% Waste Treatment Lignin Combustor 7% ther Waste Treatment 04/0512
Process Economics Net Production Cost, cents/lb PD 70 60 50 40 30 20 10 0 Dedicated Plant using glucose feedstock at 9 cents/lb 60 120 180 240 300 360 420 480 540 600 PD Capacity, million lb/yr Biorefinery EtH $1.08/gal DDGS $115/ton Source: PEP Report 257 04/0513
Process Economic Issues Feedstock Cost and composition Coproducts Recovery costs Market value Enzymes Make versus buy Waste Treatment Aqueous Solid 04/0514
Feedstock from Cornfield to Biorefinery Source: Department of Agricultural and Biosystems Engineering Iowa State University. Feedstock flow chart for biomass planning tool I-FARM as planned in Task 8 of the USDA-DE project. 04/0515
Biomass Cost Reduction Target $/Biomass Dry Ton $60 Feedstoc Cost per Dry Ton Delivered $50 $40 $30 $20 $10 2000 2005 2010 Goal of $30-35/t by 2015 2015 2020 2025 $0 FY03 Cost per Dry Ton Selective Harvest Single-Pass Harvester Transportation & Bulk Storage & Pretreatment Nth Plan Savings (5%) $/BDT 53.29 47.96 38.21 33.07 31.57 30 Source: Sokhansanj and Turhollow, RNL 2005 04/0516
Coproducts 1,3-Propanediol Monomer for PTT Ethanol Established commodity as fuel Lignin Energy value Potential chemical derivatives Protein Established feed markets Carbon Dioxide ther Byproducts Acetic acid, furfural, other organics 04/0517
Ethanol Price History 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 1995 1998 2001 2004 Corn, $/bushel Ethanol, $/gallon 04/0518
Lignin (Partial Structure) C H 3 C R CH H 3 C H 2 CH H 2 C H 2 H CH 3 CH 3 H H H 2 CH CH C C H3 H 2 CH CH 3 H H C H 3 H 2 H H CH 3 CH 3 H 2 CH C CH H 2 CH H CH 3 H HH 2 C C H CH H 2 H CH 3 H HH 2 C C C C H CH 3 H 3 CH H 2 H 2 H CH CH CH 2 CH 3 CH 3 Phenylpropane monomers: More potential value than simple combustion C H 3 R CH 3 R = CH or CH2 H R = H or C 04/0519
Aqueous Waste Fermentation requires large volumes of water E. coli produces 135 g/l PD Water recycle challenging Numerous fermentation by-products Feedstock composition variability rganism pathways Acetic acid and other organics High biological oxygen demand Salts 04/0520
Gypsum Potential sources Pretreatment Product recovery Disposal options limited Land farming Landfilling 04/0521
Conclusions What can we learn from this analysis? Biorefineries are capital intensive Pretreatment Product recovery Coproducts provide economic synergies Technical challenges remain for waste issues Lignin Waste water Gypsum 04/0522
Thank you for your attention Gregory Bohlmann SRI Consulting gbohlmann@sriconsulting.com www.sriconsulting.com 04/0523