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Asia Biomass Community

Issei Sawa

Nov. 21, 2007

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What is the Biomass Energy??

Sustainable energy utilizing renewable natural resources originating from biomass (other than fossil resources like mineral oil, coal, and natural gas).

Methane fermentation power generation

Biomass Pellet → Coal Alternative

Bio Diesel Fuel (BDF) → Diesel Alternative

Bio Ethanol Fuel (BEF) → Gasoline Alternative

Biomass origin Dimethyl Ether (DME) / Methanol

Direct Biomass Combustion Power Generation

Biomass to Liquid (BTL)

Biomass Energy for Electric Power

for Vehicle(Liquid Fuel)

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Advantages of Biomass Energy

(1) Contribution to GHG Emission ReductionZero count on CO2 emission; treated as Carbon Neutral※ as stipulated by United Nations Framework Convention on Climate Change (UNFCCC)→ Eligible for CDM Projects, if it is used as substitutes for fossil fuel.

(2) Anti Air-PollutionReduction of SOX (Sulfur Free), SPM (Oxygen), etc.

(3) Energy portfolioLess dependency on the Middle East fossil fuel sources

(4)New Environmental IndustryCatch up with EU and US who are considered as the biomass energy advanced countries, in accordance with the “Biomass Nippon Integrated Strategy”

※Carbon Neutral…CO2 occurred from burning of biomass doesn't influence on CO2 growth in LCA base, because CO2 is fixed by the photosynthesis of the plant which is the feedstock of biomass energy.

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Industrial Revolution in Biomass Energy (BEF/BDF)

Background Now Future

Requirement for Sustainable & Environmentally Friendly Energy

Substantial Rise in Mineral Oil Market Price

Biomass Energy (BEF / BDF) market being created throughout the world

Policy and Technology

Establishment of Global Biomass Energy

Industry

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BEF - Future demand forecast

Technology development in utilization of cellulose

biomass

2005 2010 2015 2020 2025 2030

300

200

100

250

150

50

40

280

170

80Base case

Million kl

* Base case is calculated based on Alternative Policy Scenario in IEA World Energy Outlook 2006

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BDF - Future Demand Forecast

Wide utilization of other non-edible feedstock

2005 2010 2015 2020 2025 2030

100

60

20

80

40

5

80

50

20

Base case

Million kl

* Base case is calculated based on Alternative Policy Scenario in IEA World Energy Outlook 2006

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Value Chain of Biomass Energy Industry

Market

[Usage / Applicationas Alternative Fuel]

(Engine Optimization Technology)

FeedstockBiomass

[Plantation /CollectionTechnology]

(60-70% of production cost)

2 priority

Processing

[Conversion Technology]

(30-40% o ｆ production cost)

1 priority3 priority

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・ Cellulose → Pre-treatment / Saccharification → Sugar → Conversion → D&D

・ Cellulose (soft cellulose, wooden cellulose, waste)

Diversification of Feedstock

※ D&D: Distillation & Dehydration

BEF - Value Chain of Biomass Energy Industry

Feedstock Processing Market

Gasoline Blend:

(1) Usage : Passenger cars

(2) Application :

① Anhydrous ETBE, E3, E10, E25,E85

② Hydrous E100 (FFV in Brazil)

・ Sugar → Fermentation → D&D※

・ Starch → Saccharification → Sugar → Fermentation → D&D

・ Sugar (sugarcane, sugar beet)

・ Starch (corn, cassava, wheat)

ConventionalFeedstock

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Diesel Blend

(1) Usage : Trucks, Passenger cars, Gene-Set, Agri machinery,

Mining/Construction Equipment, Boat, Gas-Turbine

(2) Application : ・ B5, B10, B20 ・ Higher Blend or B100

Methyl Ester

Oil(100) + Methanol(10) + Alkalic

Catalyst Chemical Reaction → ⇒

Purification → Distillation

⇒ BDF(90-98) + Glycerine(10)

Vegetable Oils & Animal Fats

・ Laurin Oil (Coconut / PKO)

・ Olein Oil (rape / soy / sunflower)

・ Palmitin / Stearin Oil (palm, tallow )

・ Used Frying Oil (UFO) -- waste

Feedstock Processing Market

BDF - Value Chain of Biomass Energy Industry

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BEF - Technology Development

Market Problems as blend stock for Gasoline = vapour pressure, water, corrosion

⇒ Engine optimization technology to achieve higher blending ratio.

Feedstock (1) Conventional Feedstock = High yield to increase availability &

cost competitiveness. (2) Diversification = Soft cellulose, wood, wastes, etc.

Processing (1) Conventional Feedstock = Zeolite Membranes Dehydration System

(2) Diversification = Pre-treatment/Saccharification: i) Pre-treatment + Enzymeii) Hydrothermaliii) Acid (thicken),

1

2

3

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BDF - Technology Development

Market Problems as blend stock for diesel oil = storage stability, CFPP,

contamination; High Quality BDF & Diesel Blending Technology to achieve wide ⇒

variety of application & Higher Blending Ratio.

Feedstock (1) Diversification (Rapeseed, Soy → Palm, Jatropha, etc) (2) Higher Yield to increase availability & Cost Competitiveness

Processing High Quality / Purity BDF, High Yield, Multi-Feedstock (even from CPO) By-Product (Glycerin etc.) Treatment Future Possibility: 1) BHD (hydrocracking / isomerization) 2) BTL (FT Diesel)

1

2

3

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Feedstock Selection

Nature of Feedstock

Available Enough ? Stable Supply Co-Existence with Food

Economic Viable? High yield & low cost

LCA Viable? Contribution to GHG red

uction

Conversion Technology

Technologically mature ?

Commercially viable ?

OK!

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Prospective Direction to Create Biomass Energy Industry

Political Issue

Technical Issue

Regional Alliance in Asia (Supply/Demand)

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Creation of Biomass Energy Industry: Political Issue Incentives:

Tax incentives: Exemption of Petroleum Tax Import Duty

Subsidies: Subsidies on Agricultural Product Subsidies on Production Plants Subsidies on Distribution Facilities

Mandatory Introduction: RFS (Renewable Fuel Standard)

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Creation of Biomass Energy Industry: Technical Issue Engine Optimization Technology to achieve Higher

Blending Ratio

Feedstock Availability / Cost Down: Improvement of Plantation Technology (High yield etc.)

Processing (Conversion) Technology: Quality improvement of the product Cost down Diversification of variety of Feedstock Environmental Countermeasure

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Creation of “Asia Biomass Community” Background:

Need to Encourage Sustainable & Environmental Friendly Energy Industry in Asia.

Existence of Necessary Resources to create value chain of Biomass Energy Industry in Asia.

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Creation of “Asia Biomass Community” Japan and South East Asia: Sharing their strengths

Japan South East Asia

Background Need to reduce CO2 emissionNeed to promote Biomass Energy Industry.

Abundant resources 1) Agricultural 2) Land 3) Labor force

Possible Contribution

Technology developmentFinancing (Investment)Import (as Consumer)

ProductionLocal ConsumptionExport

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Creation of “Asia Biomass Community”

Market

Production

Feedstock

Market

Technology

Finance

North American Market

JPN-SE Asia Joint Projects

Enhance the Multilateral partnership

Governmental level

Private level

European Market

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Establish the Sustainable System “Asian Model” 1) Energy Plantation (Dedicate to Feed Stock for Biofuel) 2) Bio-refinery 3) Distribution & Usage

Energy Plantation

“Contract Farming System”

- Improvement of Yield

- Mechanized Farming

- Fertilizer Management

-Quality Improvement

-Environmental Friendly(Less Energy, Low Emission)

-Cascade Biomass Usage

Improvement of Value Chain & LCA

Bio-refinery Distribution & Usage

Unaffected by Food Market

-Policy (mandate, subsidy)

-Quality Control

-Storage & Blending

Industrialization Market Creation