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Bio-refinery Products and the Fit with
UK Supply
ICF National Conference
27th and 28th April 2016
Newcastle
Format
• Introduction to Industrial Biotechnology & Bio-refining
– What
– Why
– Where
– Challenges
• Scotland’s National Plan for IB
– Feedstocks
• Wood based bio-refineries
Format
• Introduction to Industrial Biotechnology & Bio-refining
– What
– Why
– Where
– Challenges
• Scotland’s National Plan for IB
– Feedstocks
• Wood based bio-refineries
What is Industrial
Biotechnology (IB)?
Source: AD Little
4
IB is the use of biological resources (including plant, algae, marine life, fungi and
micro-organisms) for producing and processing of materials, chemicals and energy.
What is a Bio-refinery?
A biorefinery is a facility that integrates biomass conversion processes and
equipment to produce fuels, power, heat, and value-added chemicals.
The Biotechnology
Industry
RED BIOTECHNOLOGY “Human Health”
WHITE BIOTECHNOLOGY
“Industrial Biotechnology”
BLUE BIOTECHNOLOGY
“Marine”
GREEN BIOTECHNOLOGY
“Agriculture”
6
Red Biotechnology –
Pharmaceuticals
7
Blue Biotechnology –
Aquaculture
8
Green Biotechnology –
Agriculture
9
White Biotech –
Industrial Biotechnology
10
Why do we need IB
• To secure food supply
• To make industry greener and more sustainable
• To replace as appropriate fossil fuels with bio-resources
(leading to a zero waste society)
• To provide new markets and employment (rural and
coastal) and dispersed integrated bio-refineries
• To strengthen competitiveness on European and global
level
11
Why now? The scientific tipping point
• Rapid change in genetic technology has changed the speed, cost and scope of biotechnology
• Non-natural substrates, synthetic enzymes, new products of higher value at lower cost
• New processes, new information, new ways of doing things
12
Exploiting the advantage
fit synthetic process to natural enzymes
available
fit tailored artificial enzymes to synthetic
process
Slow (years) to design an expensive dream
Rapid (months) to design a low cost reality
10 years ago Present
Enzymes available
Potential for infinite enzymes & pathways
13
Spread of Synthetic
Biology
A"Background"Paper"on"Safeguarding"the"Bioeconomy"
The"deep"inter8disciplinary"integration"between"biology"and"engineering"has"led"to"significant"shifts"in"who"and"how"biological"science"is"being"practiced"and"developed."
Source: Synthetic Biology Project
14
Integrated Bioprocessing
15
The Bioeconomy –
financial dimensions
• US bioeconomy worth $300 bln in 2010, rose to around $350bln in 2012: Growth rate of >7% p.a. vs. underlying growth in GDP of 2.5% pa
Now exceeds the value of the total global semiconductor industry
• Split between constituent sectors in 2012 was: Biological drugs $100 bln
GM crops $125 bln
Industrial Biotech $125 bln ($66bln chemicals; $30bln biofuels, $16bln biologics feedstocks, $12bln food and ag, $1bln emerging)
• Global value of synthetic biology estimated to be around $1.6 bln in 2011, rising to $10.8 bln by 2016, representing an effective growth rate of >30% pa
Sources: Rob Carlson, BCC Research
16
Significant challenges to
opportunities
Time
Mat
uri
ty g
ap
Foundation Development Expansion Diversification Maturity
Characteristics for fossil based fuels / chemistry:
Economics of scale due to large installations / high throughput
Highly optimized processes
Well established supply chains
High production reliability
Characteristics for biorefineries: New technology / no track record Compete on price and
performance - not sustainability New technology with new plant Sound Supply chain strategies
utilising existing infrastructure
Fossil based chemical industry
Ind
ust
ry m
atu
rity
Biorefinery industry
17
Markets/applications:
current/developing
• Chemicals
Fine chemicals - pharmaceuticals, high value
intermediates, excipients etc.
Flavours, fragrances and functional - food and
feed additives, fragrances, cosmetic/personal
care, functional food etc.
Bulk chemicals - commodity chemicals, lubricants,
surfactants
• Materials
Structural - fibres, polymers, composites,
biocompatible medical technology, nanostructures
Processes - textiles, pulp & paper, construction
materials, the built environment
18
From ocean to human
beauty
Venuceane
VENUCEANE™ – A BIOTECHNOLOGICAL
COSMETIC SKIN ACTIVE INGREDIENT
OBTAINED BY FERMENTATION
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Switchgrass to tyres
• Genencor, a Division of DuPont, has developed technology for manufacturing isoprene from switchgrass, sugar cane, corn, corn cobs, or other biomass, involving: Microbial strain development
Large scale fermentation
Recovery and purification
• The vision is that all Goodyear tyres will be manufactured from this bio-isoprene
• Manufacturing a conventional tyre requires: 7 gallons of petroleum feedstock per tyre
Using Bio-isoprene will reduce that down to close to zero
20
From rubbish to bioethanol
• Convert low cost biomass and wastes to clean fuel and
energy
• Deliver a step change in green house gas emissions
• Achieve both in a safe, reliable, cost effective and
sustainable way
Bioethanol
Renewable
power Feedstock
flexible
Gasification
Fermentation
21
Must reduce risk and
improve benefit
• Process acceleration and intensification
• Better data management and mining
• Creating predictive models
• Designing flexible and responsive development
and manufacturing systems
• Technology Innovation Centres with open access
resources and assets can mitigate risk
22
Format
• Introduction to Industrial Biotechnology & Bio-refining
– What
– Why
– Where
– Challenges
• Scotland’s National Plan for IB
– Feedstocks
• Wood based bio-refineries
National Plan for Industrial Biotechnology
“Our mission is to grow industrial biotechnology related turnover in Scotland to £900m by 2025”
Scottish Strengths
• Leadership An industry led group has been instrumental in the development and now delivery of the National Plan for IB.
• Academic Excellence Scotland’s academic base has an international reputation, the James Hutton Institute and SAMS (land and marine) and pooling initiatives such as SULSA and ScotCHEM demonstrate our high levels of expertise.
• Leading Companies Industry leaders such as FujiFilm, GSK, Dupont and Ingenza have existing operations in Scotland and can provide opportunties for scale-up and development of a wider variety of products.
• Geography and natural resources compact geography and abundant natural resources (marine and terrestrial) are clear benefits and encourage collaboration. Scotland has the longest coastline in largest continental shelf in Europe.
Scotland’s position in IB
Scotland UK EU
GDP (US Billions)
$241 $2,678 9.0%
$18,495 1.3%
GDP/Head $45,045 $41,787 108%
$34,300 131%
Population (Millions)
5.3 64.1 8.3%
503 1.1%
Land Area (km2)
78,387 243,610 32%
10,180,000 0.8%
IB Market (Billions)
€0.32 1 €4.2 2
7.6%
€28 3
1.1%
Sources:
1 - National Plan for Industrial Biotechnology 2015-2025 - Scottish Enterprise (2015)
2 – Biotech Britain, BBSRC (2015)
3 – Roadmap to IB Sector in Europe – BioTIC (2015)
Percentages related to the relative size of Scotland within the parameter
Market Audit Summary of Feedstocks in Scotland
Feedstock
Relative
Supply
Cost to
the Gate
Typical Value of
Biorefinery Products
Competion for
Feedstock
Technical
ReadinessScore
Secondary Production
Whisky Residues 3 3 1 3 2 54/81
Wood Residues 2 2 2 3 2 48/72
Organic Arisings* 2 3 1 3 2 36/54
Primary Production
Wood 2 2 2 3 2 48/72
Macroalgae 3 1 3 3 1 27/81
Coal Based Methane 2 2 2 1 2 16/24
Grains 2 1 2 1 3 12/12
Vegetables 2 1 3 1 2 12/18
Oil Crops 1 1 2 1 2 4/6
* = consisting of industrial and municipal waste
Format
• Introduction to Industrial Biotechnology & Bio-refining
– What
– Why
– Where
– Challenges
• Scotland’s National Plan for IB
– Feedstocks
• Wood based bio-refineries
Bio-chemicals from wood High value added through full raw material
utilisation
170 000 tpa
20 mill litres/y
500 000 tpa
1500 tpa
S P E C I A LT Y
C E L L U L O S E Construction materials
Cosmetics
Food
Tablets
Textiles
Filters
Paint/varnish
L I G N I N Concrete additive
Animal feed
Agrochemicals
Batteries
Oil field chemicals
Soil conditioning
VA N I L L I N Food
Perfumes
Pharmaceuticals
B I O E T H A N O L Car care
Paint/varnish
Pharmaceutical industry
Bio fuel
High raw material utilisation gives high value
added BIOGAS & BIOENERGY
Turning all parts of the wood log
into products
Learning points from 70 years+ of
running an integrated biorefinery
DOP
C4 – C8 alcohols
MFC
Markets are never
in balance
Expect lots of
dynamics in
markets,
demands,
competition,
business
conditions,
feedstock suply,
…..
Choose flexible
technologies
Avoid
dependence on
subsidies, tax
reductions etc.
Chemical
users/
formulators
Dry wood feed
£70/te
50 kT
Raw material
Reception
Celluloses
25kt
Separation
Lignin
25kT
Various
Chemicals
£800+/te
Fermentable
Sugar
£220/te
20kT
Conversion
Electricity
generation
£180/te
Fermenters
Customers
Wood based bio-refinery Value chain
Enzymes
Enzymes
Catalysts
Chemicals
Solvents
Gross margin potential of £100/te of feed
New challenges
• Low oil and gas prices – tougher competition
• Need to find value added outlets for lignins
– No promising technologies for converting lignins to aromatics in
pipeline
– Biorefineries can not afford to waste 50% of carbon in biomass
– Develop new applications for lignin based performance chamicals
• Low value applications for biomass (energy, fuel) are subsidized
high value applications (chemicals, materials) are not (level
playgrond).
• Food vs industrial use of biomass
– Low probability 2nd generation sugars will match the price of 1st
generation
Cost reduction & high value niche products
