Rapid Thermal Processing (RTPTM)A Proven Pathway to Second Generation Biofuels

TAPPSA CONFERENCE

Durban, 20 October 2010

Kari Liukko

Honeywell Confidential 2

Contents

• Introduction• What is driving for 2nd generation biofuels?• Rapid Thermal Processing (RTPTM)• Pyrolysis Oil Applications• Conclusions• Q&A

What is driving for 2nd generation biofuels?

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2nd Generation Biofuels

• Non-food crop based lignocellulosic feedstock– Forest and agricultural residual biomass– Algal biomass

• Feedstock plays a key role– Availability– Sustainability – Quality– Cost-efficient supply

• Offer an interesting opportunity for pulp & paper, power generation and other industries to– Become fossil fuel free– Reduce CO2 emissions

– Generate new business• Price development of crude oil?• Price development of CO2 permits?

• Taxation and subsidies?

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World Energy Outlook

• The world energy challenge is enormous– Global energy demand will increase 1.5 % per year until 2030

• From 12 (2007) to 16 Billion tons oil equivalent– CO2 emissions, Gt/year 28.8 (2007) 40.2 (2030) – CO2 emission price, $/ton CO2 ~15 (2009) 50 (2020)– Oil price, $/barrel 60 (2009) 115 (2030)

• Investments in low-carbon technology are needed– To reduce dependency in fossil fuels– To reduce CO2-emissions in to the atmosphere

• 1000 ppm CO2 vs. 450 ppm CO2 scenario• Global temperature rising by +6 °C vs. +2 °C

• Key segments• Buildings – energy efficiency• Power Generation and Industry

– Low carbon energy and Carbon Capture and Storage (CCS) • Transportation

– Biofuels

Source: World Energy Outlook 2009, International Energy Agency (IEA)

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The EU Climate and Energy Package

• Known as 20-20-20 targets- A reduction in EU greenhouse gas emissions of at least 20% below 1990

levels - A 20% reduction in primary energy use compared with projected levels, to

be achieved by improving energy efficiency- 20% of EU energy consumption to come from renewable resources

Source: European Union/European Commission

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Biofuels for Transportation in EU

Source: EurObserv’ER 2010

12 MtOE2009

Mainly 1st generation biofuels!

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The Future of Aviation

Source: Airbus, 2010

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Honeywell Renewables Vision• Building on Honeywell UOP technology and expertise• Produce real “drop-in” fuels instead of fuel additives/blends• Leverage existing refining, transportation, energy, biomass handling infrastructure to

lower capital costs, minimize value chain disruptions, and reduce investment risk.• Focus on path toward second generation feedstocks & chemicals

“Other” Oils: Camelina, Jatropha

Lignocellulosic biomass,

algal oils

Second Generation

Oxygenated Biofuels

BiodieselEthanol

Hydrocarbon Biofuels

JetDiesel Gasoline

FirstGeneration

Natural oils fromvegetables and

greases

Fuel & Power

Fuel & Power

Renewable Energy

UOP Proprietary

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LIGNO-CELLULOSIC

BIOMASS

BIO-CHEMICAL

THERMO-CHEMICAL

Lignin & Extractives

Cellulose

HemicelluloseStarch

Fermentation

Sugars

Biomaterials

Ethanol

Algal, Jatropha,Camelina

Esterification

Pyrolysis

Gasification Fischer-Tropsch

Upgrade Green JetGreen Diesel

Pyrolysis Oil

Phase separ.Distillation

Heat, Electricity, SteamChemicals

Bioenergy

Forest res.Agriculture res.Re-cycled wood

Green JetGreen Diesel

RTP, Rapid Thermal ProcessingModular units for 100 to 1.000 ton bone dry metric ton/day

Honeywell UOP/Eni Ecofining

Envergent Technologies RTPTM

Honeywell UOP Renewables, Gas Processing, RefiningRentech (Fischer-Tropsch synthehis)

Pyrolysis UpgradeCommercial availability expected 2012

Honeywell Core Technologies for 2nd Generation Biofuels

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Potential of Pyrolysis Oil SA

Source: IEA, European Market Sutudy for BioOil (Pyrolysis Oil), 2006

Rapid Thermal Processing (RTPTM)

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Fast Pyrolysis

• Has been identified as one innovative value chain in European Industrial Bioenergy Initiative (EIBI)

• Cost-efficient pathway to second generation biofuels• Interesting findings in Canada

– Pyrolysis gives highest ROCE in stand-alone and integrated applications (FPAC, Forest Products Association of Canada 2010)

Source: Forest Products Association of Canada

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Envergent TechnologiesHoneywell UOP / Ensyn Joint Venture

• Formed in October 2008• Provides pyrolysis oil technology for fuel oil substitution and electricity generation• Channel for Honeywell UOP R&D program to upgrade pyrolysis oil to

transportation fuels

• Leading process technology licensor~$2 billion in sales, 3000 employees

• Co-inventor of FCC (Fluid Catalytic Cracking) technology

• Modular process unit supplier

• Global reach via Honeywell & UOP sales channels

• Over twenty years of commercial fast pyrolysis operating experience

• Developers of innovative RTPTM fast pyrolysis process

• Seven commercial RTPTM units designed and operated

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Rapid Thermal Processing (RTPTM) Technology

Commercially Proven Patented TechnologyENV 5233-04

Pyrolysis Oil

Solid Biomass

510°C, <2 seconds Biomass converted to

liquid pyrolysis oil Fast fluidized bed, sand

as heat carrier High yields; >70 wt%

liquid on woody biomass

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Pyrolysis Oil to Energy & Fuels Vision

Phased Commercialization

Fast Pyrolysis

Electricity Production

Transport Fuels

(Gasoline, Jet, Diesel)

Fuel Oil Substitution

Ava

ilable

for S

ale

Co

mm

ercially

availab

le in 2

012

Biomass

Ag ResidueAg Residue

Pyrolysis Oil

Forest FiberForest Fiber

Energy/Fuels

P P

P P

Energy/Fuels

P P

P P

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RTPTM Delivery & Scope of Supply

• Standard sized modular units offered– 100, 200, 400 and 1000 Bone Dry

Metric Tons per Day (BDMTPD)– Design adjusted to meet site

specific requirements• Design based on hardwood

sapwood– If alternate feedstock being

processed, unit performance to be re-rated

– Unit performance is guaranteed• Broad modular experience in

refining, petrochemical and oil & gas industries

Modular Delivery Provides Faster Execution

and Higher Reliability

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RTPTM Operating History & Commercial Experience

• Commercialized in the 1980’s• 7 units designed and operated in the US & Canada• Continuous process with >90% availability

Significant Commercial Experience

PlantYearBuilt

Operating Capacity (Metric Tonnes Per Day)

Location

Manitowoc RTPTM – 1 1993 30 Manitowoc, WI, USA

Rhinelander RTPTM – 1 1995 35 Rhinelander, WI, USA

Rhinelander Chemical #2 1995 2 Rhinelander, WI, USA

Rhinelander RTPTM – 2 2001 45 Rhinelander, WI, USA

Rhinelander Chemical #3 2003 1 Rhinelander, WI, USA

Petroleum Demo # 1 2005 300 barrels per day Bakersfield, CA, USA

Renfrew RTPTM – 1 (Owned and operated by Ensyn)

2007 100 Renfrew, Ontario, Canada

Note: design basis for wood based plants assumes feedstocks with 6 wt% moisture content.

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Feedstock Sources

Cellulosic Feedstocks Widely Available

• Forestry and Pulp and Paper• Wood chips, sawdust, bark• Forestry residues

• Agricultural• Residues – corn stover, expended fruit

bunches from palm (EFB), bagasse• Purpose-grown energy crops –

miscanthus, elephant grass• Post-consumer

• Construction and Demolition Waste, Categories 1&2

• Municipal solid waste (future)

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Feed Handling / Preparation

RTP Storage

Raw BiomassUp to 40 wt%

Moisture

Prepared Biomass“As Fed”5 – 6wt% Moisture

0.125 to 0.25"Pyrolysis Oil

“As Produced”Feed Handling

• Water is a heat sink• Dried to 5-6 wt%

moisture content for efficient RTPTM reactor operation

• Size impacts heat transfer• Biomass sized to 0.125-

0.25 inch (3-6 mm)• Capacity of unit

expressed on bone dry feed basis• BDMTPD• Zero water content

RTPTM is Self-Sustaining – Excess Heat Dries Raw Biomass

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RTPTM Product Yields

Feed, wt%

Whitewood Hardwood 100

Typical Product Yields, wt% Dry Feed

Pyrolysis Oil 70

By-Product Vapor 15

Char 15

Second Generation Feedstock Flexible With High Yields of Pyrolysis Oil

Biomass Feedstock Type

Typical Pyrolysis Oil Yield, wt% of Dry Feedstock

Hardwood 70 – 75

Softwood 70 – 80

Hardwood Bark 60 – 65

Softwood Bark 55 – 65

Corn Fiber 65 – 75

Bagasse 70 – 75

Waste Paper 60 – 80

400 BDMTPD of Whitewood Hardwood

Yields For Various Feeds

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RTPTM Pyrolysis Oil Properties

Suitable for Energy Applications

Comparison of Heating Value of Pyrolysis Oil

and Typical Fuels

• Pourable, storable and transportable liquid fuel

• Energy densification relative to biomass• Contains approximately 50-55% energy

content of fossil fuel• Requires separate storage from fossil

fuels

Fuel MJ / LitreBTU / US

Gallon

Methanol 17.5 62,500

Pyrolysis Oil 19.9 71,500

Ethanol 23.5 84,000

Light Fuel Oil (#2) 38.9 139,400

Pyrolysis Oil Applications

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Pyrolysis Oil Energy Applications

Multiple Applications for Pyrolysis Oil, a Renewable Fuel Available Today

• Replacement of fossil fuel for heat/steam generation

• Co-firing with coal• Production of green

electricity• Alternate revenue stream

from external sale• Future upgrading to

transportation fuels

FuelBurner

GasTurbine

StationaryDieselEngine

Heat

ElectricityCHP

GreenGasoline,

GreenDiesel &

Green Jet

Hydro-cracking/Dewaxing

SyngasGasification

OptimizedUOP

UpgradingTechnology

RTPUnit

FischerTropsch

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Pyrolysis Oil: Alternate Revenue Stream

• Development of pyrolysis oil as a well-defined commodity critical to success– Producer and consumer

confidence• ASTM standard specification for

use of pyrolysis oil in industrial burners is a key first step

PROPERTY VALUE TEST METHOD

Gross Heat of Combustion, MJ/kg Point, oC

15 min ASTM D240

Pyrolysis Solids Content, wt%

2.5 max ASTM D7544, Annex I

Water Content, wt%

30 max ASTM E203

pH report ASTM E70

Kinematic Viscosity, cSt @ 40 °C

125 max ASTM D445

Density, kg/dm3 @ 20 °C

1.1 – 1.3 ASTM D4052

Sulfur Content, wt%

0.05 max ASTM 4294

Ash Content, wt% 0.25 max ASTM 482

Flash Point, oC 45 min ASTM D93, Procedure B

Pour Point, oC -9 max ASTM D97

ASTM D7544, Standard Specification for Pyrolysis Liquid Biofuel

Comparison of Cost of Selling PyOil vs. Making PyOil

0

0,2

0,4

0,6

0,8

1

Selling PyOil Making PyOil

$U

S/U

S G

allo

n

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Pyrolysis Oil vs. Fossil Fuel LCA

Pyrolysis Oil Production foot printsimilar to fossil energy alternativesAssumed biomass transport distances 200 km for logging residues 25 km for short rotation forest crops

Pyrolysis Oil Life Cycle foot printGreener than other alternatives Carbon neutral combustion emission 70-88% lower GHG emissions SOx emissions similar to Natural Gas

Comparison of GHG EmissionsCradle to Delivered Energy

0

20

40

60

80

100

120

PetroleumCrude Oil

HardCoal

gC

O2

eq/M

J

NaturalGas

CanadianOil SandsCrude Oil

PyOilfrom

LoggingResidues

PyOilfrom

Willow

PyOilfrom

Poplar

Energy ExtractionGHG Emissions

Comparison of GHG EmissionsCradle to Delivered Energy, and Burned

0

20

40

60

80

100

120

PetroleumFuel Oil

HardCoal

gC

O2

eq/M

J

NaturalGas

PyOilfrom

LoggingResidues

PyOilfrom

Willow

PyOilfrom

Poplar

Life Cycle GHG Emissions

through combustion

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Pyrolysis Oil: Upgrading to Green Transportation Fuels

• Objectives– Remove oxygen molecules– Reduce acidity and viscosity– Break up molecules to make

gasoline and diesel/jet precursors– Commercialization expected in 2012

• Solution– Thermochemical upgrading;

leverage UOP’s extensive hydroprocessing experience

– Continuous, reliable guaranteed process, per current refinery standards

Achieved in Lab, Working on Scale-up

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Integrated Biorefinery Demo - Biomass to Transport Fuels

• Honeywell UOP received $25M DOE grant

• Plant to be built at Tesoro/Hawaii refinery, operated by UOP

• Will include RTPTM and pyrolysis oil upgrading

• 2nd Generation feedstocks to include– Corn Stover– Cane Bagasse– Grasses– Sugar Corn– Algae Biomass– Forest Residue

• Demonstration to be complete in three years

Biomass

Utilities

Integrated Bio-Refinery (IBR) Complex

H2

GenerationUnit

PyrolysisOil

ConversionUnit

RapidThermal

ProcessingUnit

Gasoline

Kerosene

Diesel

Steam

Wastewater

Spent Air

Fuel

Water

Air

1 tonne per day

4 Barrels per day

Biomass

Utilities

Integrated Bio-Refinery (IBR) Complex

H2

GenerationUnit

PyrolysisOil

ConversionUnit

RapidThermal

ProcessingUnit

Gasoline

Kerosene

Diesel

Steam

Wastewater

Spent Air

Fuel

Water

Air

1 tonne per day

4 Barrels per day

Integrated Bio-Refinery (IBR) Complex

H2

GenerationUnit

PyrolysisOil

ConversionUnit

RapidThermal

ProcessingUnit

Gasoline

Kerosene

Diesel

Steam

Wastewater

Spent Air

Fuel

Water

Air

1 tonne per day

4 Barrels per day

Conclusions

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Conclusions• Global and European climate targets address the

need of renewable energy, 2nd generation biofuels and low-carbon technologies

• RTPTM is commercially proven, mature technology ready for industrial use

– Seven units designed and operated

• Reliable operation with 90% on-line availability

• Designed to maximize pyrolysis oil yield, 70 wt% based on hardwood sapwood feed

• Cost competitive with fossil fuel oil

• Engineering and modular delivery by world-renowned industry leader

• Upgrading technology to transportation fuels expected to be available in 2 years

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Thank You!

• Contact information

• Kari Liukko: kari.liukko@honeywell.com