“Commercializing Advanced (Second and Third Generation

“Commercializing Advanced (Second and Third Generation)

Biofuels Technologies”

E. Kendall PyeChief Scientific Officer,

Lignol Energy CorporationBurnaby, BC

Commercial Progression of the Biofuels IndustryCommercial Progression of the Biofuels Industry

• 1st Generation Biofuels – primarily made from food and feed crops

– Brazil; ethanol from cane sugar since 1970’s, now ~ 7 billion gallons/yr

– USA; ethanol from corn starch since the early 1980’s, now ~12 billion gallons/yr

– EU; primarily biodiesel from vegetable oils and animal fats, some ethanol ~ 1 billion

• food versus fuel controversy

• impacts on land use, more crop land

• annual production dependant on climate and disease, volatile feedstock prices

• 2nd Generation Biofuels – primarily from lignocellulosic biomass

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• 2nd Generation Biofuels – primarily from lignocellulosic biomass

– Only now nearing commercialization in many parts of the world

– Various technologies under development;

• pyrolysis or gasification with chemical or biological synthesis from syngas

• pretreatment of feedstock with acid, steam, ammonia, etc.

• high cost of enzymatic saccharification

• 3rd Generation Biofuels - lignocellulosic biorefineries and algae

– multiple product streams created from biomass, improved economics

– preserves the higher values of the products

Conventional

Oil Refinery

Gasoline

Cellulosic ethanol

Biorefinery

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Petrochemicals

Bio-based

chemicals

Diesel fuel Lignin

Maximizing Value from Biomass Fractions; Maximizing Value from Biomass Fractions;

retaining important chemical structuresretaining important chemical structures

Cellulose

40%-45%

C6 Sugars

Ethanol

Enzymes

Yeast

HP-L™ Lignin

Extractives

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C5 &C6 Sugars

Biofuels & Bio-Based Chemicals

This approach accelerates commercialization:1. Diversification of revenue streams lowers risks2. Smaller size biorefineries are profitable (lower plant capex)3. Substantial GHG emissions reduction (carbon credits)

• Emerging cellulosic ethanol company deploying the Biochemical Biorefinery Concept

• Operations in Western Canada & Eastern US (Philadelphia)

• ~40+ employees

• Well-funded in the past 4 years (has gained access to ~$79M including

Introduction to LignolIntroduction to Lignol

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• Well-funded in the past 4 years (has gained access to ~$79M including a $30M US DOE grant to build a demo scale facility)

• Much of its technology is already proven on a semi-commercial scale

• Goal: Commercialize a biorefinery process for low cost cellulosic ethanol production with the greatest environmental benefits

Lignol’s

Pretreatment

Process

Solven

t

Rec

ove

ry HP-L™ Lignin

Recovered Solvent

Industrial Sugars

Furfural

Hardwood, Softwood, Agricultural Residues

Lignol’s Process OverviewLignol’s Process Overview

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Enzymatic

Saccharification

&

Fermentation

“Clean”

cellulose-

rich

substrate

Enzymes &Yeast

Spent Solvent

Distillation

Distillation

Industrial Sugars

Ethanol

Stillage

Lignol acquired technology developed byLignol acquired technology developed byGeneral Electric and Repap (Alcell)General Electric and Repap (Alcell)

GE

• Wood-to-ethanol pilot plant; gas turbine fuel

Alcell

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• Wood pulp production on industrial scale

• Proved markets for novel “High Purity Lignin” (HP-L™ lignin)

• Over $100 million spent on development

Proven 1Proven 1stst Gen. Biomass Pretreatment TechnologyGen. Biomass Pretreatment Technology

New Brunswick, Canada (1988 – 1996)60 tpd feed capacity (hardwoods)

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“Clean” Cellulose“Clean” Cellulose--Rich SubstrateRich Substrate

Lignol’s Pretreated Wood

Dilute-Acid-Pretreated Corn Stover

Steam-ExplodedWood

Other leading pretreatment technologies:

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Only ~60% Fermentable Components

~95% Fermentable Components

Woody Biomass Contains Valuable ChemicalsWoody Biomass Contains Valuable Chemicals

•Lignin is a matrix aromatic

polymer composed of phenolic

structures; the only major

natural source of benzene rings

Lignin

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Possible HPPossible HP--L™ Lignin StructureL™ Lignin Structure

OH

OCH3

O

HOCH2

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H3CO

O

CH2OH

HCOH

OH

H3CO

HO

CH2

OCH3

HOCH2

O HCOH

HCOH

CH2OH

H3CO

Current World Output110 MM Tons/yr

Current Petrochemical Industry Uses Oil and Gas to Produce Primary Olefins and Aromatics

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110 MM Tons/yr

65 MM Tons/yr

70 MM Tons/yr

HP-LTM Lignin Markets

• Legislation, innovation and consumer demand is driving adoption of “green” products – formaldehyde is restricted in California, France, Finland and Japan

– fuel efficiency, vehicle weight reduction (LCCF) - US DOE

FreedomCAR program

• Applications in resin systems are significant: – PF resins and their products

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– PF resins and their products

– Epoxy resins and their derivatives

– Polyurethane resins and derivatives

– Furan resins and their derivatives

• Animal Feed Additives; non-antibiotic growth promoters, antioxidants

• Carbon fiber development with Oak Ridge National Labs and companies like BAE Systems (British Aerospace) � potential markets to support a large number of biorefineries

Engineering HPEngineering HP--LLTMTM Lignins (Substitution)Lignins (Substitution)

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Customized HPCustomized HP--LLTMTM Lignin Chemistry for Specific NeedsLignin Chemistry for Specific Needs

Making Lignol’s Lignins Work for the Wood Adhesive Industry

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PB & MDF Wood Panels Containing Lignol’s HP-LTM Lignins

Products Made with Products Made with Lignol’sLignol’s HPHP--LLTM TM LigninsLignins

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HP-LTM Lignins For Automotive Carbon Fiber (LCCF)

CARBON FIBER MERCEDES AMG SLS CF is 4x lighter than steel

CF is 5-6x stronger than steel

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Tokyo Auto Salon 2008- Honda Civic Mugen Type-RR

ORNL13,000,000 cars & light trucks produce annually in the USA

~220 lbs LCCF /vehicle (on average)~440 lbs HP-LTM Lignin/vehicle (on average)

~$3.0B/year potential US HP-LTM Lignin market for automotive LCCF

HP-LTM Lignins For Automotive Carbon Fiber (LCCF)

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Application LCCF

Time-to-Market

Lignol’s Commercial Plants

(2,000 tpd feed)

Ethanol (gal/year)

Vehicles ~5-10 years 27 commercial plants 1.5B (at <$2.00/gal)~10% 2011 RFS2

Wind Turbines <5 years Unknown Unknown

Insulating Materials Now Unknown Unknown

Source: Compere A.L. et al. Low Cost Carbon Fiber From Renewable Resources, Oak Ridge National Laboratory & Lignol Innovations Ltd.

Development Partners for HP-LTM Lignin

• Foundry Resins:

– HA International

• Coatings:

– PPG Industries (NYSE:PPG)

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• Adhesives:

– Huntsman Corporation (NYSE:HUN)

• Construction Materials:

– Kingspan Corporation (KSP:L)

Technology Deployment PathTechnology Deployment Path

Stage Capacity (biomass feed)

Capacity (ethanol)

Status

Pre-Pilot Grams/hour �Complete

Industrial Pilot 1 tonne/day

100,000 L/yr

�Complete

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100,000 L/yr

Demonstration 100 tonnes/day

10–30 million liters/yr

�Developing

Commercial 400-2000 tonnes/day

40-200 million liters/yr

�Planning

Lignol’s Integrated Biorefinery Pilot PlantLignol’s Integrated Biorefinery Pilot Plant

• Capacity: 1 tonne per day (dry basis)

– Fully integrated mini-biorefinery

– Fully instrumented

– Industrial equipment

– Rated at 100,000 l/yr CE ethanol

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– Rated at 100,000 l/yr CE ethanol

• Feedstocks: Hardwood & softwood, agricultural residues, energy crops

• Products: Ethanol, HP-LTM lignin, furfural, other chemicals

• Operation: past few weeks 24/7 in campaigns (before 24/5)

Conclusions

• Versatile biorefinery technology with multiple products such as

Cellulosic Ethanol, Pulp, Chemicals and HP-LTM Lignins

Process economics enhanced by multiple revenue streams – process

can be economic at smaller scale

• Multi-objective optimization is needed in a biorefinery to maximize

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• Multi-objective optimization is needed in a biorefinery to maximize

revenue – this is possible in Lignol’s process.

• Bio-based chemicals can displace and enhance petrochemical-

based products and materials

Significant GHG emissions reductions; isolate from price volatility of oil

• Lignol’s biorefinery technology is “demo ready”

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Conclusions

• Environmentally-benign

�no harsh chemicals used

�very little process water use

• Flexible and relatively simple production of multiple co-products

from biomass using mostly standard chemical processing equipment

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from biomass using mostly standard chemical processing equipment

• May be used to revive closed manufacturing sites, such as pulp

mills, and use their infrastructure, services, biomass resource and

skilled labor pool

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Thank you!Thank you!

For general information visit For general information visit

www.lignol.ca

E. Kendall Pye, CSO, E. Kendall Pye, CSO,

kpye@lignol.ca