Adding Value to Forest and Agriculture Residues: Proven 2 nd Generation
Technology for Liquid Biofuels Production
Adding Value to Forest and Agriculture Residues: Proven 2 nd Generation
Technology for Liquid Biofuels Production
© 2010 UOP LLC. All rights reserved.
Maurizio Di DioUOP, A Honeywell Company
Maurizio Di DioUOP, A Honeywell Company
UOP 5371-01
BIOENERGIEMay 20, 2010Milan, Italy
UOP Company ProfileServing the Refining, Petrochemical & Gas Processin g Industries
Profile Business Units:� Process Technology & Equipment (PT&E) � Catalysts, Adsorbents & Specialties (CA&S)� Renewable Energy and Chemicals
WW HQ: Des Plaines, Illinois (suburban Chicago) � Employees: 3000+
Offering: � Technology, Catalyst & Services to the Refining,
Petrochemical and Gas Processing Industries� Supplier of molecular sieve adsorbents to process
and Mfg. IndustriesSignificant Brand Equity
Market Coverage
UOP Facilities
UOP Footprint
Licensing12%
Products51%
Services12%
Equipment25%
Revenue Distribution
Sales: Geographic
� 19 Offices
� 16 Countries
� 12 Manufacturing Facilities
� 5 Engineering Centers
UOP OfficesUOP Manufacturing sites
Sales : Breakdown
Middle East, 12%
Americas, 28%
Asia, 23%
India, 7%
China, 10%
Europe, 20%
UOP 5304-03Established Global Supplier
34%
15%
36%
15%
• Founded in 1886• 118,000 employees in nearly
100 countries• A Fortune 75 company• ~$36 billion in sales in 2008• Global leader in advanced
technology products, services and solutions UOP
Technology Company, Financially Strong and GlobalTechnology Company, Financially Strong and Global
Honeywell Corporate Overview
Aerospace
Automation & Control
SpecialtyMaterials
Transportation& Power Systems
UOP 4638NC-03
Customer needs
On-goingServices,Revamps,
Studies
Start-up Services,Training
ProcessDesign
Engineering
EquipmentCatalysts,
Adsorbents,
UOP Delivers Technology
UOP 5304-04
Technology Delivery
UOP can deliver technology as Packaged Equipment or as Licensed Technology
Complete Technology Delivery Package
• Planning & Consulting Studies• Engineering Services• Basic Engineering Design• Advanced Process Control• Equipment
- Modular Construction- 160 projects since 1987
• Catalyst, Adsorbent, Chemicals• Training• Start-up Assistance• Ongoing Services & Inspection
Agenda
• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A
UOP 5371-02
Agenda
• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A
UOP 5371-03
World Energy Outlook
• The world energy challenge is enormous- Global energy demand will increase 1.5 % per year u ntil 2030
� From 12 (2007) to 16 Billion tons oil equivalent- CO2 emissions, Gt/year 28.8 (2007) ���� 40.2 (2030) - CO2 emission price, $/ton CO 2 ~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 CO 2-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 UOP 5371-04
Source: World Energy Outlook 2009, International Energy Agency (IEA)
Average CIF Cost of Imported OilIEA Total
1501301109070503010
$/bb
l
Nov/99
Nov/00
Nov/01
Nov/02
Nov/03
Nov/04
Nov/05
Nov/06
Nov/07
Nov/08
Nov/09
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
•Key legislations and actions-Emissions Trading System (EU ETS)-Effort Sharing Decision (Non-ETS like transport, housing, argiculture, waste)
-Carbon Capture and Storage (CCS)-National Target Setting for Renewable Energy and Re newable Energy Sources (RES)
� National binding targets: Malta 10 % � Sweden 49 %-European Industrial Inititiative on Bioenergy
� 10 % share of biofuels in EU transport by 2020 (5.75 % 2010)� 9 Billion EUR for industrial pilot, reference and first-of-a-kind projects inside EU� Selected thermo- and biochemical pathways (value chains)
Source: European Union/European Commission
UOP 5371-05
Europe´s Primary Bioenergy Potential is Sufficient
Source: EEA Report 7/2006How much bioenergy can Europe produce without harming the environment?
UOP 5371-06
Environmentally-Compatible Primary Bioenergy Potenti al in the EU
350
300
250
200
150
100
50
0
Prim
ary
Bio
ener
gyP
oten
tial,
MtO
EAdditional agriculture potential (DE, FR)Additional forest potentialAgricultureForestryWaste
Effect of increasing energy
& CO2 prices towards 2030
2010 2020 2030
20% target from primary biomass by 2020, 230-250 Mt OE
Note: The agricultural potential comprises dedicated bioenergy crops plus cuttings from grassland and was calculated for EU-25 with out Cyprus, Luxembourg and Malta. Agricultural residues, such as straw and manures, are included in the category ‘waste’ (covering all EU-25 Member States). The forestry potential was calculated for EU-25 except Cyprus, Greece, Luxembourg and Malta. It consists of residues from fellings and complimentary fellings. The additional forestry potential takes into account the reductions in the black liquor potential as a result of weed redirected from pulp and paper to energy production. It strongly depends on the assumed carbon permit and oil price. The additional agricultural potential due to higher prices paid for bioenergy was modeled only for Germany (DE), France (FR).
Forestry Biomass –One Renewable Energy Source
UOP 5371-07
Environmentally-Compatible Bioenergy Potential from Residues in 2030
Environmentally-Compatible Bioenergy Potential from Complementary Fellings in 2030
Complementary fellingsThe gap between annualincrement (growth) andfellings
Source: EEA Report 7/2006How much bioenergy can Europe produce without harming the environment?
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 power generation, process and other industries to
-Become fossil fuel free-Reduce CO 2 emissions-Generate new business
• Potential pathways are for example-Bio-Chemical
� Fermentation (methanol, ethanol)
-Thermo-Chemical� Gasification and Fisher-Tropsch synthesis (syngas, biodiesel, aviation fuels)� Pyrolysis and upgrade (power generation, biodiesel, aviation fuels)
UOP 5371-08
Pyrolysis
•Has been identified as one pathway in European Indus trial Initiative on Bioenergy
•Cost-efficient pathway to second generation biofuels• Interesting findings in Canada
- Pyrolysis gives a high ROI in stand-alone and integ rated applications
Source: Forest Products Association of Canada
UOP 5371-09
Agenda
• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A
UOP 5371-10
2nd Generation Renewable Energy Company – Global Reach
• ~20 years of commercial fast pyrolysis operating experience
• Developers of innovative RTP TM fast pyrolysis process
• 8 commercial RTP TM units• Now applying technology to fuel oil
and energy
• Formed in October 2008• Provides pyrolysis oil technology for fuel oil substitution and electricity generation
• Channel for UOP R&D program to upgrade pyrolysis oil to transportation fuels
Envergent Technologies LLC –UOP / Ensyn Joint Venture
• Leading process technology licensor~$2 billion in sales, 3000 employees
• Co-inventor of FCC technology• Modular process unit supplier• Global reach via Honeywell &
UOP sales channels
UOP 5371-11
Lignocellulosic Biomass Processing Options
SolidBiomass
Direct Combustion
Fast Pyrolysis
PyrolysisOil
Gasification
SynGas
Heat & Power
TransportFuels
FischerTropsch
Upgrading
Hydro-cracking/Dewaxing
CellulosicEthanol Ethanol
Envergent Route to Energy
UOP 5371-12
Pyrolysis Oil to Energy & Fuels Vision
Phased Commercialization
Available for S
ale
Com
mercially
available in 2010
Ag Residue
Forest Fiber
EnergyFuels
P P
P P ElectricityProduction
Fuel OilSubstitution
Transport Fuels(Gasoline, Jet Diesel)
Fast Pyrolysis
PyrolysisOil
Biomass
UOP 5371-13
Rapid Thermal Processing (RTPTM) Technology
Commercially Proven Patented Technology
Pyrolysis Oil
Solid Biomass
� 510°C, < 2 seconds� Biomass converted to
liquid pyrolysis oil� Fast fluidized bed, sand
as heat carrier� High yield; >70 Wt% liquid
on woody biomass
UOP 5371-14
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 RTP TM – 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.
UOP 5371-16
• FCC technology is key process in gasoline productio n • UOP has been designing FCC units since the
early 1940’s – one of the co-inventors• Licensed over 250 units – more than 50% of
world-wide capacity• Unit sizes from 1,500 to 200,000 BPD capacity
RTPTM UOP FCC
FCC Experience Enables Scale-up
UOP FCC Background
UOP 5371-17
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)
� DoE study 2005 - > 1 billion ton per year available in United States alone
UOP 5371-18
Feed Handling / Preparation
• Water is a heat sink– Dried to 5-6 wt% moisture content for efficient RTP TM 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
FeedHandling RTP Storage
PyrolysisOil
“As Produced”
PreparedBiomass“As Fed”5-6 Wt%Moisture
0.125 to 0.25”
Raw BiomassUp to 40 Wt%Moisture
UOP 5371-19
RTPTM Product Yields
Typical Product Yields, Wt% Dry Feed
70Pyrolysis Oil
15Char
15By-Product Vapor
100Hardwood Whitewood
Feed, Wt%
60 – 80Waste Paper
70 – 75Bagasse
65 – 75Corn Fiber
55 – 65Softwood Bark
60 – 65Hardwood Bark
70 – 80Softwood
70 – 75Hardwood
Typical Pyrolysis Oil Yield, Wt% of Dry Feedstock
Biomass Feedstock Type
400 BDMTPD of Whitewood Hardwood
Yields For Various Feeds
Second Generation Feedstock Flexible With High Yields of Pyrolysis Oil
UOP 5371-20
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
139,40038.9Light Fuel Oil (#2)
84,00023.5Ethanol
71,50019.9Pyrolysis Oil62,50017.5Methanol
BTU / US GallonMJ / LitreFuel
UOP 5371-21
Pyrolysis Oil Energy Applications
Multiple Applications for Pyrolysis Oil, a Renewable Fuel Available Today
GasTurbine
StationaryDieselEngine
Heat
ElectricityCHP
GreenGasoline,
GreenDiesel &
Green Jet
Fischer-Tropsch
SyngasGasification
OptimizedUOP
UpgradingTechnology
FuelBurner
Hydro-cracking/Dewaxing
RTPUnit
� Replacement of fossil fuel for heat/steam generation
� Production of green electricity
� Alternate revenue stream from external sale
� Future upgrading to transportation fuels
UOP 5371-22
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 ASTM E70reportpH
ASTM D97-9 maxPour Point, oC
ASTM D93, Procedure B
45 minFlash Point, oC
ASTM 4820.25 maxAsh Content, wt%
ASTM 42940.05 maxSulfur Content, wt%
ASTM D40521.1 – 1.3Density, kg/dm3
@ 20 °C
ASTM D445125 maxKinematic Viscosity, cSt @
40 °C
ASTM E20330 maxWater Content, wt%
ASTM D7544, Annex I
2.5 maxPyrolysis Solids Content, wt%
ASTM D24015 minGross Heat of Combustion,
MJ/kg Point, oC
Test MethodValueProperty
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
$US
/US
Gal
lon
UOP 5371-23
Pyrolysis Oil: Replacement of Fossil Fuels to Generate Heat
0
0.5
1
1.5
2
Buying # 2 Fuel Oil Making PyOil
$US
/US
Gal
lon
� Specialized burner tips improve flame/burning
� Low emissions (NOx, SOx)� Fuel consistency - ASTM D7544� Flexibility to decouple pyrolysis oil
production from energy generation (location and time)
� GHG emission reduction of 70-90% � Low cost liquid biofuel
- ~40% cheaper to make and use pyrolysis oil than to purchase #2 fuel oil on an equivalent energy basis� 400 BDMTPD RTP Unit� Assumes 60 $US/bbl crude� Includes RTP operating cost and
15-yr straight line depreciation of CAPEX
� 330 Days per Year
Comparison of Cost of Buying #2 Fuel Oil vs. Making Pyrolysis Oil
~ 8 $US Million per Year SavingsUOP 5371-24
Burner Data
69--2--LFO
88--40--PyOilBROCK (Canada)
80--15<1LFO
108--38<5PyOilMIT (USA)
103125318LFO
2689523776HFO
16642643PyOilCANMET (Canada)
<50--440.7PyOilWWFB (USA)
NOx(ppm)
SOx(ppm)
CO(ppm)
Particulate (mg/Nm 3)
Emission Levels
Fuel*Combustion
System
*HFO – heavy fuel oil; LFO – light fuel oil
UOP 5371-25
Pyrolysis Oil: Production of Green Electricity
� Compatible with specialized turbines
� Green electricity production cost is less than 0.10 $US/kW-h
- Includes RTP operating cost and 15-yr straight line depreciation of CAPEX (including gas turbine)
� Experience in stationary diesel engine as blend with fossil fuel
-Operation with 100% pyrolysis oil under development.
-Commercial application expected in 6-12 months
UOP 5371-26
Pyrolysis Oil Performance in Gas Turbine
Orenda GT2500 Turbine from Magellan Aerospace Corp.
Proven Performance in Commercially Available Combined Cycle Gas Turbine
12001055180010711800Fuel flow, litre/h
1.0421.02.07.01.0SO2 normalized emission, ppm
EnsysnPyrolysis
Oil
321.0326.0101.0321.060.0NOx normalized emission, ppm
25502510251025102650Generator electrical power, KW
467444415403420Gas turbine exhaust gas
temperature, oC
1385013850138501385014050Turbo compressor rotor speed, rpm
BiodieselCrude Oil
BlendEthanol# 2 Diesel
Fuel
Properties
UOP 5371-27
RTP™ Pyrolysis Oil Coal Co-Firing
•Coal Co-Firing at Manitowoc Public Utilities
•20 MWe coal-fired stoker boiler•Simple and cost-effective implementation
•Clean and efficient combustion •Lower emissions•No additional maintenance required
•No detrimental effect to boiler or peripheral equipment
•No changes to ash handling
Coal Co-Firing Successfully Proven
UOP 5371-28
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-upUOP 5371-29
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
gCO
2eq
/MJ
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
gCO
2eq
/MJ
NaturalGas
PyOilfrom
LoggingResidues
PyOilfrom
Willow
PyOilfrom
Poplar
Life Cycle GHG Emissions
through combustion
UOP 5371-30
Agenda
• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A
UOP 5371-31
No 2 Fuel Oil Substitution, per Ton
Assumptions• Energy Equivalent Basis
• WTI SPOT, 81.5 $US/Barrel, Mar 09, 2010
• No. 2 Fuel Oil Price 2.04 $US/US Gal, Mar 09, 2010
• No. 6 Fuel Oil Price 2.04 $US/US Gal Mar 09, 2010
• 15 Year straight line depreciation included
• Hardwood Whitewood feed
• 330 Days per Year
• Subsidies and Tax Incentives Excluded
• Tax, SG&A and Interest Excluded
No. 2 Fuel Oil Substitution
0
50
100
150
200
250
300
350
0 10 20 30 40 50 60 70 80 90 100
Feedstock Cost, $US/Metric Ton, Dry Delivered
Pyr
olys
isO
il P
rodu
ctio
n C
ost,
$US
/Met
ric T
on P
yOil
Pro
duce
d
100 BDMTPD - Pyrolysis Oil Production Cost, $US/Metri c Ton PyOil Produced200 BDMTPD - Pyrolysis Oil Production Cost, $US/Metri c Ton PyOil Produced400 BDMTPD - Pyrolysis Oil Production Cost, $US/Metri c Ton PyOil ProducedCost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil Produced @ 50 $US/Barr el Crude SpotCost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil Produced @ 70 $US/Barr el Crude SpotCost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil Produced @ 100 $US/Bar rel Crude Spot
UOP 5371-32
Agenda
• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A
UOP 5371-33
Conclusions
�Global and European climate targets address the nee d of renewable energy, 2nd generation biofuels and low-carbon technology
�RTPTM is commercially proven technology: Seven units designed and operated
�Reliable operation with 90% on-line availability�Designed to maximize pyrolysis oil yield, 70 Wt% ba sed
on hardwood whitewood feed�Cost competitive with fossil fuel oil�Engineering and modular delivery
by world-renowned industry leader�Technology for upgrading to
transportation fuels expected to be available in 2 years
UOP 5371-34