Vision - Research - Teaching Presentation to the Alabama Center for Paper and Bioresource Engineering Auburn University June 24, 2015 Dr. John G. Cowie

Vision - Research - Teaching

Presentation to the

Alabama Center for Paper and Bioresource Engineering

Auburn University

June 24, 2015

Dr. John G. Cowie

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Presentation Outline

IntroductionVision for the CenterPast researchFuture researchTeaching plans, experiences

and desiresConcluding Remarks

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Introduction

Doctorate in Materials ScienceVice President of Technology at Agenda 2020 Technology Alliance - American Forest & Paper Association

Past Chair of TAPPI Biorefinery CommitteePast Leader of the Marketing Team in TAPPI Nanotechnology Division

President of nanoC - consulting company

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Vision for the Center -Alabama Center for Paper and Bioresource Engineering

This is my first visit to Auburn UniversityEverything I know about the Center from:

Harry CullinanYour Website

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Vision for the Center -Alabama Center for Paper and Bioresource Engineering

Detailed vision and strategy needs input from inside and outside the Center

1. Review and evaluation of current research activities2. Input from industrial leaders (CTOs) and from the University's staff and directors

3. Perform a SWOT Analysis4. Benchmark using other Centers like RBI (formerly IPST) at Georgia Tech

5. Investigate the available funding opportunities6. Develop a detailed vision and strategy

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Vision for the Center -Petroleum Production - Hubbert Peak Oil Plot

In 1956, Geophysicist M. King Hubbert proposed that fossil fuel production would follow a roughly bell-shaped curve.

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Vision for the Center -U.S. Biobased Products Industry -Economic Impact of the Biobased Products

USDA Secretary Tom Vilsack announced last Wednesday that the U.S. biobased industry is generating substantial economic activity and U.S. jobsEconomic Impact of the Biobased Product Industry reportU.S. Biobased Products Industry contributes

$369 billion to the American Economy4 million new manufacturing jobs

USDA creates the BioPreferred® label programInnovative wood products

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Past Research -Value Prior to Pulping

Funded by the DOE and Industrial Consortium Partners

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Past Research -Value Prior to Pulping -Purpose

Utilize available enzymes and microorganismsDevelop:

Scientific knowledgeModeling toolsProcess design and Engineering economic information

Determine if there is:A compelling business case If so proceed to commercial scale demonstration

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Past Research -Value Prior to Pulping -DOE - Industry Consortium

Two year experimental study$3 million total

50% funded by DOE50% funded by Industrial partners

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Past Research -Value Prior to Pulping -Participating Pulp & Paper Companies

NewPageInternational Paper CompanyMWV - MeadWestvacoPotlatchSAPPIWeyerhaeuserClearwater PaperUPM KymmeneLongview Fibre

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Past Research -Value Prior to Pulping -Participating Research Institutions

US Forest Service - Forest Products LaboratoryState University of New York – Syracuse - ESFNorth Carolina State UniversityAuburn UniversityNational Renewable Energy LaboratoryIPST at Georgia Institute of TechnologyUniversity of MainePurdue UniversityAmerican Process International (API)Cobalt TechnologiesVerenium

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Past Research -Value Prior to Pulping -Approach

Technical FeasibilityPre-extraction & pulpingExtract processing or conditioningFermentation and ethanol production

Commercial FeasibilityInnovative process designEffective plant integrationCapital & operating costs of the best case process design & integration

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Past Research -Value Prior to Pulping -Project Groups

Pre-extraction and pulpingExtraction liquor processingFermentation and biofuel productionModeling and business case developmentEconomics and commercial feasibility

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Past Research -Value Prior to Pulping -Group 1 - Pre-Extraction and Pulping

Goal: Development of a process to extract 40% of the hemicellulose fraction prior to kraft pulpingHardwood met extraction yield target but with a decrease in paper strengthConditions can be found where a conventional pulp is produced with softwood - The extract yield is considerably less than the targetEconomics favored acid hydrolysis over enzymatic hydrolysis

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Past Research -Value Prior to Pulping -Group 2 - Extraction Liquor Processing

A process was developed to prepare the extract for fermentation free of inhibitors as well as recovery a valuable co-product stream; acetic acid.The raw extract is concentrated by ultrafiltration to produce a concentrate of up to 23% sugar solidsThe acetic acid which is recovered

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Past Research -Value Prior to Pulping -Group 3 - Fermentation and Biofuel Production

Goal: Development of a fermentation process to convert 80% of the extracted sugars to biofuelsTechnical proof of concept study evaluating five different fermentation microorganisms

Zymomonas mobilis - NRELPichia stipitis - US Forest Service Forest Products Laboratory and the University of WisconsinSaccharomyces cerevisiae - Purdue UniversityE. coli - VereniumProprietary bacterial strain - Cobalt Technologies

All microorganisms tested met the target

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Value Prior to Pulping -Group 4 - Modeling and Business Case Development

Four different models were used HYSYS, WinGEMS, Excel and ApiMaxApiMAX models existed for conventional mills and were modified for VPP casesThe Excel model used with the ApiMax correlated best with the experimental data

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Past Research -Value Prior to Pulping -FPL Excel Model

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Past Research -Value Prior to Pulping -ApiMax Simulation

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Value Prior to Pulping -Modeling and Business Case DevelopmentBasic Assumptions in Economic Analysis

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Value Prior to Pulping -Modeling and Business Case DevelopmentCaptal Cost vs. Sugar Concentration

Capital Cost Estimates for Hemicellulose Extraction Process as a Function of Sugar Concentration Following Evaportaion

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Value Prior to Pulping -Modeling and Business Case DevelopmentOperating Cost Estimates

Annual Operating Cost ($/year) as a function of Sugar Concntration Following Evaporation

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Value Prior to Pulping -Modeling and Business Case DevelopmentEthanol Production Cost Estimates

Estimated Production Cost for Ethanol as a Function of Sugar Concetration

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Value Prior to Pulping -Modeling and Business Case DevelopmentAcetic Acid Production Cost Estimates

Estimated Production Cost for Acetic Acid as a Function of Sugar Concetration

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Past Research -Value Prior to Pulping -Economic Model Output: Ethanol

Case IRR %Base maple 0Pine cases range - 18 to - 4Maple cases range - 7 to 15"Best" Maple Ethanol Case 15

Note: "Best" Case assumes the following: 18% more wood available at same price, 7% more pulp can be sold at the same price, Full heat integration, Use of existing equipment for the chipping, Excess steam available at $10 /MT rather than $22/MT

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Past Research -Value Prior to Pulping -Economic Model Output: Butanol

Case IRR %Base maple 0Pine cases range 19 to 21Maple cases range 6 to 39"Best" Maple Butanol Case 39

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Past Research -Value Prior to Pulping -Technical Conclusions

Hemicellulose can be extracted from wood chips prior to pulping and converted at high yield to biofuelsAcetic acid can be recovered from the hemicellulosic extract providing a clean sugar stream for fermentationPulp yield, quality and value are dependent upon the degree of hemicellulose extractionLow extraction conditions (10% mass removal) maintain similar quality metrics of conventional pulpHigher mass removals (up to 23%) alter the characteristics of the VPP pulp vs conventional pulpBased upon ROI, a 15% extraction level is preferred

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Past Research -Public-Private-Partnership (PPP) -Advancing Development of Nanomaterials

Funded by The US Forest Service

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Past Research -Public-Private-Partnership (PPP) -Advancing Development of Nanomaterials

The US Forest Service Nanotechnology research involving universities Grow the research programs in the area of cellulosic nanotechnology

Create a legal framework for a Public-Private-Partnership (PPP)

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Past Research -A Research Joint Ventures (RJV) Model -Advancing Development of Nanomaterials

Pioneered by the Semiconductor Research Corporation (SRC), research joint ventures (RJVs) represent a public/private partnership through which firms collaborate to acquire technical knowledgeThe forest products industry needs to create a RJV similar in framework to the SRC through a membership based consortium

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Past Research -A Research Joint Ventures (RJV) Model -Legal Arrangements of a RJV

All collaborative R&D projects require some form of legally binding agreement between partnersThe consortium agreement sets out the internal management guidelines – during and after projectLegal agreement written and signed

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Past Research -A Research Joint Ventures (RJV) Model -Benefits

Reduced research costs due to a reduction in duplicative researchFaster commercialization since the research stage is shortenedDevelop an industry-wide competitive visionGreater R&D productivity and greater patenting activityAccess to key university personnel

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Past Research -A Research Joint Ventures (RJV) Model -Outcome -

Full implementation of the RJV ModelEstablishment of P3Nano in the U.S. Endowment for Forestry & Communities, Inc.

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Past Research -Market Projections for Nanocellulose - Enabled Products

Funded by the US Forest Service

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Objectives

Discuss Market Drivers for Nanocellulose Summarize the results of a study on potential markets for nanocellulose

Categories of applicationsMethodologyVolume estimates

Recommend some future research directions

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Environmental Market Drivers

Consumer/Retailer demand RegulatoryLight weighting to improve fuel‐ efficiency Café standards

Energy Efficiency Building codes

Bio based materials‐Shopping bag/water bottlebans/additive red listing‐

Greener Consumer Products EU Directive – vehicle recycling

Carbon Dioxide targets

Renewable/compostableLandfill bans/ recyclingtargets

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Assumptions

Recent research reports/expert network to identify target applicationsCurrent market size is maintained (no growth)Commercialization within the next 6‐11 yearsCost competitive with current alternativesTechnical issues addressedNo barrier to adoption

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Past Research -Market Projections for Nanocellulose - Enabled Products - Targeted Applications

HIGH VOLUME LOW VOLUME NOVEL and Emerging APPLICATIONS

Cement Wallboard Facing Sensors - Medical & Environmental

Automotive Body Insulation Reinforcement fiber construction‐

Automotive Interior Paint Architectural‐ Water filtration

Packaging Coatings Paint Special Purpose‐ Air Filtration

Paper Coatings Paint OEM Applications‐ Viscosity modifiers

Paper Filler Aerospace Structure Purification

Packaging Filler Aerospace Interiors Cosmetics

Replacement Plastic Packaging‐ Aerogels for the Oil Industry Excipients

Plastic Film Replacement Organic LED

Hygiene and Absorbent Products Flexible and Recyclable Electronics

Textiles for Clothing Photovoltaics

3D printing

Photonic Films

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Market Estimates

Vol = M *NC content * MPM = recent market sizeNC Content = % nanocelluloseMP = market penetration rate

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Example: Automotive Body

Cars Light Trucks~1.57 T ~2.08 T

WT (AVG) * Vol (15.8e6) * 1/3 of vehicle weight steel * 50% replacement * 1/2 the steel replaced * 65% CNF in resin * Market Penetration Rate

(1.57 tonnes + 2.08 tonnes)/2 x 1/3 x 1/2 x 1/2 x 0.65 x 15,800,000 vehicles = 1.56 million tonnes

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Estimated Market Penetration Rates High Volume Applications

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High Volume Cellulose NanomaterialsU.S. Market Penetration Estimates

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Annual Tonnage Estimate by Forest Products Subsector

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High Volume Cellulose Nanomaterials Potential Applications‐ World

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Low Volume Cellulose Nanomaterials ‐Potential Applications

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Comparison to RISI Market Study

Jack Miller, Principal Consultant, Market-Intell LLCAssociate Consultant, RISI23.5 million tonne potential1.2 million tonne at 5% market penetration

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BCC Research Report - June 2015

The global market for nanocellulose totaled $46.8 million in 2014 and is projected to approach $277.7 million by 2019. CAGR of 42.8% through 2019.Cellulose nanofibrils as a segment totaled $28.2 million in 2014 - $158.3 million by 2019Cellulose nanocrystals as a segment reached $18.0 million in 2014 - $116.6 million by 2019

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Next StepsEstimate Novel Application VolumesRefine Estimates

Competitive advantageCost sensitivityAdoption ratesSurvey for applicationsTechnical issuesTime to market

Jobs estimates

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Past Research -Open Vetted Engineering/Economic Model of Cellulose Nano-Crystal Production

Funded by P3Nano, U.S. Endowment for Forestry & Communities, Inc.

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Questions to be answered

What are the economic drivers of CNC production?What process choices can be made to manage sulfuric acid?Are there advantages to co-locating on a mill site?Will intellectual property issues hinder the proposed design?

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Hydrolyze Quenchand

Separate

Neutralizeand

Separate

ConcentrateCNC

ConcentrateAcid

WaterPulp

Acid

Water and Glucose

WaterGlucoseAnd

Sodium Sulfate

CNC

Base

Block diagram of a commercial CNC production process

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Approach

1. Process design (US Forest Service - FPL)

2. Capital cost estimates (American Process Inc.)3. Cost model validation (nanoC)4. Cash flow analysis (US Forest Service - FPL)5. Intellectual property (nanoC)

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Past Research -Private Consulting -Proprietary Research

Client List

USDA Forest ServiceUS Endowment for Forestry & Communities, P3NanoSappi North AmericaNewPage - Verso PaperFibria Cellulose American Process Inc.Mohawk Fine PapersTermomecanica

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Future Research -New Products

BioFuelsBioChemicalsBioMaterials

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Future Research -BioFuels

Low Return on Investment (ROI)High feedstock pricesHigh capital costs for biorefineryLow fuel pricesNarrow spead between total cost and fuel prices

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Future Research -Path Forward

Integration into pulp mills to lower operating costsLow cost waste woody biomassMove toward high value added products

Chemicals, not fuelsLignin to higher value added products, not burnedNanocellulose production integrated into pulp mills

Partnerships and joint ventures are central to mutual success

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Future Research -Path Forward - Potential Partnerships

LigninMetso LignoBDOE ORNL for carbon fiber

Hemicellulose (sugar)RenmatixBiofinePure VisionFiberight

NanocelluloseAmerican Process Inc.US Forest Service - FPL

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Future Research -Cellulose Nanomaterials -Market Opportunities

High-Volume MarketsAutomotive, paper & packaging coatings and fillers, substitution for plastic packaging and film

Low-Volume MarketsWallboard/Insulation, aerospace, paints

Novel and Emerging ApplicationsSensors, filtration, electronics & photovoltaics,

3-D printing

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Future Research -Cellulose Nanomaterials -Opportunities & Challenges

Examples Opportunities ChallengesComposites; automotive body parts

•Light-weight•High-strength•Lower cost

•Drying method• Interface chemistry•Surface treatment --

compatibility with resins

Aerogels/Foams •Light-weight, high strength “sandwich” structures

•Thermal insulation•Acoustic insulation

• Cost-effective drying• Interface chemistry• Dispersion• Strength properties

Paints & CoatingsHigher-strength, more robust coating; scuff resistance

•Scratch-free floor coatings•Spackle•Clear Films and protective

panels

Develop functional base materials together with Interface chemistries

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Examples Opportunities ChallengesMedical •Wound healing

•Tissue scaffolding•Hemmorrhage control

•EHS considerations•Clinical trials• Interactions with human

tissue

Filtration/Separation •Water purification

•Oil from water cleanup•Separation of oil from water

using foam as a sponge using cellulose nanomaterial

•Evaluate filtration options especially with other media

•Develop broader separation technologies

Concrete •Plasticizer effects to improve fluidity

•Enhanced hydration•Self-healing, bendable

concrete

•Understand reaction mechanisms

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Examples Opportunities ChallengesViscosity control •Oilfield applications

•Paint thixotrope

•Understand rheological effects and component interactions

•Develop formulations

Electronics / Optical •Photonic colors•Batteries •Supercapacitors•Recyclable electronics

•Manipulation•Required paper smoothness•Strength; aligned assembly•Recyclable components to

match lignocellulosics

Paper •Higher-strength grades•Lighter weight

•Higher filler

•Overcome drainage issues•Overcome reduced light

scatter, brightness, opacity•Cost-benefit; capital and

operating costs

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Examples Opportunities ChallengesSurface Treatments/ Paper Coating

•Coating hold-out for reduction in coat-weights

•Replacement of conventional binders

•Develop excellent dispersion of CNF’s to avoid buildup behind blades of coater

•Achieve uniform fibril size

Packaging •Barrier Coatings Films•Lighter-weight paperboard

•Reinforced extrusions on board

•Achieve moisture stability•Develop good dispersion of

cellulose nanomaterial•Develop interface chemistries

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Future Research -Cellulose Nanomaterials -Specific Research Needs

• Measure/characterize particle morphology and size: manufacturing - market - research purposes

• Measurement methods - manufacturing control

Char. & Testing

• Liberate nanofibrils with resin Manu-

facturing

• Economic redispersion - Overcome agglomeration Drying

• Surface functionalization methods -- compatibility with end-use composites

• Conventional polymers and/or biodegradable polymers

Appli-

Cations

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Future Research -Cellulose Nanofilaments - Kruger FiloCellTM

Cellulose filaments on the left are peeled from kraft pulp fibers. The filaments have a high aspect ratio, up 1,000 - Kruger's FiloCell™ produced in Trois-Rivières, Québec.

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Future Research -Cellulose Nanofilaments -Kruger FiloCellTM

FiloCell™ reinforcing agent now being produced at a Kruger demonstration plant in Trois-Rivières, Québec. CF trials in printing paper show a good potential for making

lighter sheets at the same strength.

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Teaching Plans, Experiences and Desires

Experience teaching Graduate level materials science courses at the University of New MexicoMaterials science laboratory classes at Worcester Polytechnic InstituteScanning electron microscopy laboratory at Massachusetts Insitute of Technology

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Qualified to teach: Material and Energy BalancesThermodynamicsKineticsTransport phenomenaHeat and Mass transfer

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Desire to teach: Nanotechnology - NanomaterialsBiorenewable ResourcesAdvanced Topics in Biomaterial Manufacturing

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Concluding Remarks -Pulp and Paper -State of the Industry

Paper and Paperboard1999: 105.3 MT decrease of 26% to 2014

Industry sectors:Corregated Containers

1999: 20.5 MT - no change for 2014Newspaper

2002: 17.5 MT, decrease of 65% Printing and Writing Paper

2000: 33.1 MT, decrease of 39.4%Tissue

Increasing on a per capita basis

Data from the American Forest & Paper Association (AF&PA) 2014

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Concluding Remarks -Pulp and Paper -Product Life Cycles Curve

Pulp and Paper Industry needs new products/revenue streams

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Concluding Remarks -Pulp and Paper -DuPont's Major Product Cycles

DuPont has moved through three major product cycles in its 200-year history. The third cycle is just beginning.

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Concluding Remarks -Pulp and Paper -New Products and Revenue Streams

BioFuelsBioChemicalsBioMaterials

Nanocellulose

Lignin to carbon fiber (ORNL)

3D Printing

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Thank You - Any Questions?

Documents

Vision - Research - Teaching Presentation to the Alabama Center for Paper and Bioresource Engineering Auburn University June 24, 2015 Dr. John G. Cowie