biorefining: commercial opportunitiesfor green chemicals and fuels
TRANSCRIPT
TSX-V: LEC
Biorefining: Commercial Opportunitiesfor Green Chemicals and FuelsWilliam B. Armiger, Ph.D. & E. Kendall Pye, Ph.D.
Joseph Priestley Society Symposium
Chemical Heritage Foundation Philadelphia, PA Dec 11,2008
Forward Looking Statements
This presentation contains historical and forward-lookingstatements. The forward-looking statements involve risks anduncertainties. Forward looking statements appearing in thispresentation represent management’s current estimates andthese may change significantly as new information comes to hand.
The information contained in this presentation has been obtainedby Lignol from its own records and from other sources believed tobe reliable, however no representation or warranty is made as toits accuracy or completeness. Reference should be made to theCompany’s most recent Annual Report filed with Canadiansecurities regulatory authorities (available at www.sedar.com) fora description of the major risk factors.
– Cost of Crude Oil
– Demand for Sustainable Raw Materials
Drivers for Chemicals & Biofuels fromRenewable Biomass Materials
– Cost of Crude Oil
– Demand for Sustainable Raw Materials
– Climate Change from Fossil Carbon Greenhouse Gases
Drivers for Chemicals & Biofuels fromRenewable Biomass Materials
– Cost of Crude Oil
– Demand for Sustainable Raw Materials
– Climate Change from Fossil Carbon Greenhouse Gases
– Energy Security for Oil Importing Nations
Drivers for Chemicals & Biofuels fromRenewable Biomass Materials
– Cost of Crude Oil
– Demand for Sustainable Raw Materials
– Climate Change from Fossil Carbon Greenhouse Gases
– Energy Security for Oil Importing Nations
– Balance of Trade Problems for Oil importers
Drivers for Chemicals & Biofuels fromRenewable Biomass Materials
The Renewable Fuel Standard (RFS)
• Energy Policy Act of 2005– Established 7.5 billion gallon RFS for ethanol and biodiesel
use by 2012
The Renewable Fuel Standard (RFS)
• Energy Policy Act of 2005– Established 7.5 billion gallon RFS for ethanol and biodiesel
use by 2012
• Energy Independence and Security Act of 2007– Extended RFS to 36 billion gallons of renewable fuel by 2022– Identified targets for specific renewable biofuels
• Cellulosic• Conventional (corn, etc.)• Advanced• Biomass-based• Undifferentiated advanced
US Energy Independence and Security Act of 2007
Other Advanced Biofuels
Biomass-Based Diesel
Cellulosic Biofuel
Corn Ethanol
0.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
10
Other Advanced Biofuels
Biomass-Based Diesel
Cellulosic Biofuel
Corn Ethanol
Bill
ions
Gal
lons
/Yr
Projected Cellulosic Ethanol Component
Other Advanced Biofuels
Biomass-Based Diesel
Cellulosic Biofuel
Corn Ethanol
0.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
11
Other Advanced Biofuels
Biomass-Based Diesel
Cellulosic Biofuel
Corn Ethanol
Bill
ions
Gal
lons
/Yr
2009
2018
2013
Today
1 billion
7 billion
2022 16-20 billion
Lignol’s Biofefining Technology
High-yield ethanol production and high-value biochemicals (High Purity Lignin, HP-L™)
LignolExtractionProcess
Separation
Enzymes&
YeastDistillation
DistillationSaccharification & Fermentation
ETHANOL
LIGNIN
12
Extractives & biochemicals
GE• Biomass cracking
pilot plant
Repap• Biomass Refining
for paper pulp production at industrial scale
• Markets for novel “High Purity Lignin” (HPL™)
Lignol acquired commercial-scale organosolv Penn-GE Process Technology developed by General Electric and Repap
The Biorefinery Opportunity
Cracking Biomass into Basic Fractions Lignin……Aromatics Cellulose…..C6 sugars Hemicellulose……Mostly C5 sugars for hardwoods & annual fibers Extractables……..Complex Structures
The Biorefinery Opportunity
Cracking Biomass into Basic Fractions Lignin……Aromatics Cellulose…..C6 sugars Hemicellulose……Mostly C5 sugars for hardwoods & annual fibers Extractables……..Complex Structures
Converting Fractions into Value-Added Products by:– Chemical Processing– Biological Processing
Only ~60% Fermentable Components
Lignol’s Cellulosic Fraction
Dilute-Acid Pretreated Corn Stover
Steam-Exploded Wood
~95%Fermentable Components
Lignol’s “Clean” Fractionation of BiomassOther Biomass “Pretreatment” Technologies:
Market Sector End use Relative Value
Energy Cellulosic ethanol Medium
Bio-butanol Medium
Methane Low
Materials Cellulose Derivatives High
Specialty pulps Medium/High
Paper Pulp Medium
Chemicals Nutraceuticals & Bioactive Products
High
Chemical Building Blocks
Medium
Sweeteners & Food Additives
Low
CellulosicFraction from
the Lignol Biorefinery
Platform Products from Cellulosic Fraction
OH
OCH3
O
HOCH2
H3CO
O
CH2OH
HCOH
OH
H3CO
HO
CH2
OCH3
HOCH2
O HCOH
HCOH
CH2OH
H3CO
Typical HP-LTM Lignin Fragment
Properties HP-LTM
LigninKraft Lignin
Sulphite Lignin
Ash <0.5% 3% ~2.5%
Carbohydrates <1% Low Up to 50%
Sulphur <0.5 ppm ~ 1.6% >6%
H2O Solubility Low Low ~ 100%
23
HP-LTM Lignin Properties
Market sector End use Relative Value
Energy Fuel Additives High
Bio-Aromatics Medium
Burn as Fuel Very Low
Materials Carbon Fiber High
Polyurethanes Medium
PF Resin Substitutes Medium
Animal feed Medium
Chemicals Nutraceuticals High
Pharma Intermediates High
Specialty Chemicals Medium
Ligno-chemical Intermediates
Medium
HP-LTM Lignin Fractionfrom the Lignol
Biorefinery
Platform Products from HP-LTM Lignin Fraction
Lignol’s 1 Ton/day Biorefinery Pilot Plant
Integrated pilot plant operating in 4th Qtr 2008
29
Will Provide Technology & Engineering Scale-up for100 ton/day Demonstration Plant Funded by DOE
Lignol’s Technology canBuild Sustainable Ligno-chemical
and Fuel IndustriesBased upon Renewable
Feedstocks
The Time Has Come….
Projected Cellulosic Ethanol Component
Other Advanced Biofuels
Biomass-Based Diesel
Cellulosic Biofuel
Corn Ethanol
0.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
33
Other Advanced Biofuels
Biomass-Based Diesel
Cellulosic Biofuel
Corn Ethanol
Bill
ions
Gal
lons
/Yr
2009
2018
2013
Today
1 billion
7 billion
2022 16-20 billion
• U.S. National Mandate…20 Billion gal/yr of ethanol from biomass
New Era: Ligno-chemicals and fuels from Biomass
• U.S. National Mandate…20 Billion gal/yr of ethanol from biomass
• Lignol’s Biorefinery Technology will generate 50 million tons/yr of Ligno-chemical feedstocks
New Era: Ligno-chemicals and fuels from Biomass
Current World Output110 MM Tons/yr
65 MM Tons/yr
70 MM Tons/yr
Petrochemical Industry Uses Crude Oil & Natural Gas to Produce Primary Olefins and Aromatics
October 28, 2008
• Lignol Signs US $30 million Cooperative Agreement with U.S. Dept. of Energy
• The 100 ton/day Biorefinery for cellulosic ethanol and ligno-chemicals will be located in Grand Junction, CO
• Lignol’s partner in the project is SUNCOR
Lignol’s 100 ton/day Demonstration Plant
• 1908– Ford begins mass production of Model T– AIChE Founded in Philadelphia– Demand for petrochemicals accelerates
The New Era Begins: Ligno-chemicals and fuels from Biomass
• 1908– Ford begins mass production of Model T– AIChE Founded in Philadelphia– Demand for petrochemicals accelerates
• 2008– Lignol begins operation of 1 ton/day integrated
ethanol biorefinery & design of 100 ton/day plant– Biorefining has “roots” in Penn-GE cellulose process
developed in Philadelphia– The Ligno-chemicals industry has begun
The New Era Begins: Ligno-chemicals and fuels from Biomass