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Techno-Economic Analysis of Whole Algae Hydrothermal Liquefaction (HTL) and Upgrading System YUNHUA ZHU Susanne B. Jones, Daniel B. Anderson, Richard T. Hallen, Andrew J. Schmidt, Karl O. Albrecht, Douglas C. Elliott Pacific Northwest National Laboratory 2015 Algae Biomass Summit Washington, DC September 29 - October 2, 2015 This presentation does not contain any proprietary, confidential, or otherwise restricted information

Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

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Page 1: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Techno-Economic Analysis of Whole Algae Hydrothermal Liquefaction (HTL) and

Upgrading System

YUNHUA ZHU Susanne B. Jones, Daniel B. Anderson, Richard T. Hallen, Andrew J. Schmidt,

Karl O. Albrecht, Douglas C. Elliott Pacific Northwest National Laboratory

2015 Algae Biomass Summit Washington, DC

September 29 - October 2, 2015

This presentation does not contain any proprietary, confidential, or otherwise restricted information

Page 2: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Growth, Harvest Dewater

20% Solids

Water & nutrient recycle

HTL Upgrading Naphtha

Diesel

CHG H2 Gen

Oil

Aqueous

Gas

NG

H2

Whole Algae HTL and Upgrading Overview

2

  Hydrothermal liquefaction (HTL) ~3000 psia, 350°C, no catalyst   Biocrude upgrading ~ hydrotreating and hydrocracking with hydrogen in

excess of chemical consumption   Catalytic Hydrothermal Gasification (CHG) ~3000 psia, 350°C, fixed

bed

Page 3: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Process Simulation and Cost Analysis Assumptions

  Feedstock: freshwater and saltwater algae   Conversion only: 1340 tons per day algae, ash free dry weight (AFDW) basis   Algae delivered at 20 wt% solids (AFDW basis)   $1100/ton for feedstock (AFDW basis)   40% equity financing, 10% Internal rate of return, 60% debt financed at 8% for 10 years   Costs in 2011 US $ for a mature nth plant

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Page 4: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Feedstock Compositions: Freshwater and Saltwater Algae

4

Carbon 54.7%

Hydrogen 7.4%

Oxygen 26.5%

Nitrogen 10.7%

Sulfur 0.7%

Freshwater algae

Carbon 49.4%

Hydrogen 6.9%

Oxygen 35.3%

Nitrogen 6.4%

Sulfur 2.0%

Saltwater algae

  Dry ash free (DAF) basis for elemental compositions;   Freshwater algae: ash content - 8.1 wt% (dry basis); Lipid content ~ 4% (DAF);   Saltwater algae: ash content ~ 22 wt% (dry basis); Lipid content ~ 16% (DAF)

Page 5: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Oil Products Yields

5

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50

Freshwater algae Saltwater algae

Oil

Yiel

ds, t

on/to

n A

FDW

A

lgae

HTL Bio-crude Hydrotreated oil Diesel Naphtha

Final product yields Freshwater algae Saltwater algae Diesel production, million gallon gasoline equivalent (GGE)/yr 26 37

Byproduct (naphtha) production, million GGE/yr 16 11

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Carbon and Energy Efficiencies

6

0%

10%

20%

30%

40%

50%

60%

70%

Freshwater algae Saltwater algae

Car

bon

Effic

ienc

y, %

Diesel and naphtha / Algae only Overall carbon efficiency

0%

10%

20%

30%

40%

50%

60%

70%

80%

Freshwater algae Saltwater algae

Ener

gy E

ffici

ency

, %

Diesel + Naphtha / algae only Overall energy efficiency

Page 7: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Cost Contributions for Algae HTL and Upgrading

7

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

$21.3/GGE $15.6/GGE

Die

sel S

ellin

g Pr

ice

($/G

GE)

Freshwater algae Saltwater algae

Feedstock HTL Oil Production CHG Water Treatment Bio-crude Upgrading Balance of Plant Naphtha Credit

Conversion cost only (not including naphtha credit): Freshwater algae: $4.4/GGE Saltwater algae: $3.3/GGE

Page 8: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Sensitivity Analysis – Saltwater Algae Case

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-$10.0 -$5.0 $0.0 $5.0 $10.0 $15.0

Hydrotreating Catalyst Life, years (5 : 2 : 1) Upgrading Capital (-40% : base : +40%)

CHG Catalyst Cost $/lb (30 : 60 : 120) CHG Catalyst Life, yrs (2 : 1 : 0.5)

Naphtha Value, $/gallon ($3.75 : $3.25 : $1.50) Project Contingency (0% : 10% : 20%)

CHG Capital Cost (-40% : base : +40%) HTL Capital (-40% : base : +40%)

Total Project Investment (-10% : base : +40%) Plant Scale Dry Feedstock, ton/d (2500: 1340 : 500)

No CHG - Recycle Untreated HTL Aqueous Internal Rate of Return, IRR (0% : 10% : 20%)

Fuel Yield (+10% : base : -20%) Feedstock Cost, $/AFDW ton (430: 1100 : 2000)

Cost Change from Baseline Case, $/GGE

Page 9: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Conclusions   Algae composition and the salt in HTL aqueous phase affect the fuel yields   Cultivation, harvest and dewatering (“algae feedstock cost”) cost is the largest fraction (85% to 89%) of the total production cost   The HTL process cost represents the largest fraction of the conversion cost   Feedstock cost and product yield are the key cost drivers

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Page 10: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Potential Improvements   Increasing biocrude yield and reducing HTL process cost through improved HTL reaction conditions   Increasing biocrude yield via improved phase separation of the HTL oil from the aqueous product   Optimizing HTL aqueous phase treatment to reduce costs and enhance carbon recovery   Reducing algae feedstock cost via research improvements in the cultivation, harvest and dewatering process

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Future Work in Techno-Economic Analysis

  Reduce the assumed HTL/CHG throughput to more typical algal cultivation scale

  Decouple the upgrading process simulation to assess a larger scale, centralized upgrader fed by multiple HTL units

  Disaggregate “feedstock cost” into cultivation, harvest and dewatering costs appropriate for a given scale

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Acknowledgements

The authors would like to acknowledge funding of this work by the US Department of Energy’s Bioenergy Technologies Office (BETO)

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13

Additional Slides   Methodology   Major assumptions

Page 14: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Methodology

14

Process model

Cost Analysis

Minimum Fuel Selling Price

(MFSP) $

gge

Conversion Yields

Operating Conditions

Whole wet algae Conversion efficiency,

Product Yields (gasoline & diesel), etc. Mass and energy

balance information

Algae & chemical price

Cost parameters

Base cost of equipment

Page 15: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Major Assumptions for HTL Process

15

HTL operating conditions Freshwater algae Saltwater algae

Temperature, °F (°C) 658 (348) 667 (350)

Pressure, psia 2930 3000

Feed solids, wt% DAF basis 20.0 20.0 Liquid hourly space velocity, h-1 2.2 2.2

Biocrude yields, wt% DAF algae basis 38 41

C wt% in biocrude 77 80

Page 16: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Major Assumptions for Upgrading Process

16

Hydrotreating operating conditions

Freshwater algae Saltwater algae

Temperature, °F (°C) 752 (400) 752 (400)

Pressure, psia ~1515 ~1515

Liquid hourly space velocity, h-1 0.20 0.20

H2 consumption, wt H2/wt biocrude 0.047 0.041

Hydrotreated oil yield, g/g dry biocrude 0.81 0.87

Gas yield, g/g dry biocrude 0.10 0.07

C wt% in hydrotreated oil 86 86

Hydrocracking operating conditions

Freshwater algae Saltwater algae

Temperature, °F (°C) 752 (400) 752 (400)

Pressure, psia ~1000 ~1000

Liquid hourly space velocity, h-1 > 0.5 > 0.5

Page 17: Techno-Economic Analysis of Whole Algae …algaebiomass.org/wp-content/gallery/2012-algae-biomass...$21.3/GGE $15.6/GGE E) Freshwater algae Saltwater algae Feedstock HTL Oil Production

Hydrotreated Oil Distributions

17

0%

10%

20%

30%

40%

50%

60%

70%

80%

Freshwater algae Saltwater algae

wt%

in h

ydro

trea

ted

oil

Hydrotreated oil distribution based on boiling point ranges

Naphtha Diesel Heavies