INDUSTRIALIZATION OF THE CELLULOSIC SUGAR SUPPLY CHAIN

INDUSTRIALIZATION OF THE CELLULOSIC SUGAR SUPPLY CHAIN

Murray McLaughlin Biorefineries: Building the Bioeconomy

Bioindustrial Innovation Canada

Bioenergy Australia, Brisbane

November 15-17, 2016

PRESENTATION OBJECTIVES

• A Little About BIC

• Overview of Cellulosic Sugar Project

• Process

• Recommendations

• Observations

• Innovation

• Economics

• What’s Next?

MISSION

BIC provides critical strategic investment, advice, and services to business developers of clean, green and sustainable technologies. Our expertise in commercialization builds a stronger Canada.

Vision:

To create Jobs and economic value sustainably for Canada

Funded by:

FedDev; AAFC; MRI; Private sector

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BIOINDUSTRIAL INNOVATION CANADA

CELLULOSIC SUGAR PROJECT OVERVIEW

Creating a new Industry – industrial Sugar from Biomass

Conidential

ADDRESSABLE MARKETS

CELLULOSIC PRODUCTS

HEMI-

CELLULOSE AND

XYLOSE (C5)

LIGNIN

CELLULOSE AND

HIGH PURITY DEXTROSE (C6)

APPLICATIONS

Alcohols

Amino Acids

Organic Acids

Olefins

Alkanes

Polymers

Microbial Oils

Animal and Aqua

Feeds

Pharmaceuticals

Energy

Lubricants

Resins

Fertilizer

Bio-chemicals

Composites

Bio-chemicals

Alcohols

Polymers

Organic Acids

ADDRESSABLE

MARKET

$127 BN

6% CAGR

$7BN

2% CAGR

+$1BN

+4% CAGR

SIGNIFICANT

OPPORTUNITIES FOR

INNOVATION IN

TECHNOLOGY,

PRODUCTS,

APPLICATIONS AND

MARKET DEVELOPMENT

BIOMASS

Corn Stover

Wheat Straw

Hardwood

Bigasse

FEEDSTOCK

VISION

• An operating agricultural biomass to end-products supply chain in Canada by 2020

• Profitable at all levels and for all participants

• Sustainable at all stages

• Target construction of first cellulosic conversion plant by 2018

Farm

Biomass Conversion

Products and CoProduct

Building Blocks

End Products

Reuseable, Recycleable

Residuals

CELLULOSIC SUGARS – PROJECT DEVELOPMENT

Biomass

Conversion to

Building Blocks

Farm

Chemical

Products

Energy Products

Materials

Agricultural

Products

End User Biomass

Aggregation and Logistics

2013

Feasibility study

2014 to 2015

Harvesting Demo

Agronomic Study

Formation of Biomass Coop

Technology Demo and Selection

2016 to 2018

Project Execution

1st Commercial Plant

Aggregation and Logistic Plan

Customers

Financing

COLLABORATION PARTNERS AND PARTICIPANTS

Industry

Academics

Governments

Farmers

La Coop Federee

IGPC

Jungbunzlauer

BioAmber

Agris Coop

Cellulosic Producers Sugar Coop

University British Columbia

Western University

Lambton College

Ontario Federation Agriculture

Ontario Grain Growers

Alberta Innovates

Agco

Advantage Farm Machinery

Agriculture Adaptation Council

Agriculture and AgriFood Canada

TECHNOLOGY SELECTION RESULTS (PHASE 3)

• Technology selection process completed in February 2016

• Validated Economics from the Farm to the Products for a cellulosic sugar plant producing up to 125,000 tonne/year of cellulosic sugars from up to 250,000 tonne (bone dry)/year of biomass feed

• Recommended up to four conversion technologies for full project development, including a commercial scale cellulosic sugars manufacturing facility

BioProducts

Cluster Project

ECONOMIC ANALYSIS ENVELOPE

PreTreatment Conversion

Separation

and

Purification

Product

Storage

Biomass

Storage

Delivered

Cost of

Biomass

Sales

Sales Logistics

Economic

Synergies with

Biomass Suppliers

and Conversion

Facility

Economic

Synergies with

Customers and

Conversion

Facility

Products &

CoProducts

RESULTS OF STAGE-GATE PROCESS

• Stage 1

• 19 Technologies

• “Paper Evaluation” vs Criteria

• Stage 2

• 8 Technologies – site visits

• Technology validation, blind lab analysis of products, mass and energy balance and process economics

• Stage 3 – Validation at Demonstration/Pilot Scale

• 4 Technologies

• Processing of corn stover supplied by BIC from 240 acres harvested under BioProducts Cluster Project (OFA/LCF) in 2015

• Mass and energy balance from biomass processing, blind samples tested by Customer Group and University testing labs

• Project Economics (farm to customer) developed

• Recommendations for Project Development

RECOMMENDATIONS

• 3 technologies recommended to Cellulosic Sugar Producers Cooperative

• Requirements for commercial scale project development

• Comet Biorefining chosen by CSPC

TOP THREE COSTS OF PRODUCING CELLULOSIC SUGARS (GLUCOSE BASIS)

1. Delivered cost of biomass

2. Conversion of cellulose to glucose

• Enzymes

3. Pretreatment

• Separation of cellulose, hemicellulose, lignin

CELLULOSIC BUILDING BLOCK PRODUCTS LISTED FROM HIGHEST TO LOWEST VALUE TODAY

1. High Purity Xylose

2. Crystalline Nano Cellulose

3. High Purity Glucose

4. High Purity Cellulose

5. Hemicellulose

6. Lignin

LIGNIN – CAN YOU MAKE MONEY -USES BEING DEVELOPED

• As a fuel – 150-200/tonne

• As a wood binder – 500

• In Phenol formaldehyde resins – 1500-2000

• In Rigid Poly Urethane foams – 2000

• In thermoplastics – 1500-2000

• In H2O soluble polymer applications - 3500

Data from FPInnovations – World’s largest Non profit forest research Orgainzation

CELLULOSIC SUGAR CHAIN DEVELOPMENT

WHAT’S NEXT

ON GOING CELLULOSIC SUGAR DEVELOPMENT TECHNOLOGY AND MARKET DEVELOPMENT

• Development of Canada’s first on-purpose cellulosic sugar plant in Sarnia, Ontario • Comet Biorefining

• Cellulosic Sugar Producers Cooperative

• Full development of corn stover supply chain for 1st plant • First commercial scale harvest of stover ready prior to plant start-up

• Continued market experience and development of cellulosic building block products and technologies

• Next Canadian cellulosic sugar plant development (Sarnia#2, Alberta, Saskatchewan, other Ontario location)

• Other Feedstocks – forestry, purpose grown crops, others

• Site Location

• Off take agreements

• Partner with Farm Coop

• Permits

• Raise Capital

• Build a Team

Confidential

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COMET – THE REAL WORK BEGINS

THANK YOU

AGCO Baler and corn harvest

Appreciate Your Interest

Dr. Murray McLaughlin

murraym@BINCanada.ca

Sarnia, Ontario, Canada

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