cellulosic sugar project -...
TRANSCRIPT
Presentation Objectives
Overview of Cellulosic Sugar Project
Process
Recommendations
Observations
Innovation
Economics
What’s Next?
2
Addressable Markets 4
CELLULOSIC PRODUCTS
HEMI-
CELLULOSE AND
XYLOSE (C5)
LIGNIN
CELLULOSE AND
HIGH PURITY DEXTROSE (C6)
APPLICATIONS
Alcohols
Amino Acids
Organic Acids
Olefins
Alkanes
Polymers
Microbial Oils
Animal and Aqua
Feeds
Pharmaceuticals
Energy
Lubricants
Resins
Fertilizer
Bio-chemicals
Composites
Bio-chemicals
Alcohols
Polymers
Organic Acids
ADDRESSABLE
MARKET
$127 BN
6% CAGR
$7BN
2% CAGR
+$1BN
+4% CAGR
SIGNIFICANT
OPPORTUNITIES FOR
INNOVATION IN
TECHNOLOGY,
PRODUCTS,
APPLICATIONS AND
MARKET DEVELOPMENT
BIOMASS
Corn Stover
Wheat Straw
Hardwood
Bigasse
FEEDSTOCK
Comet, Tech Providers, BIC
VISION
An operating agricultural biomass to end-products supply chain by
2020
Profitable at all levels and for all participants
Sustainable at all stages
Target construction of first cellulosic conversion plant by 2018
Farm
Biomass Conversion
Products and CoProduct
Building Blocks
End Products
Reuseable, Recycleable
Residuals
5
Cellulosic Sugars – Project
Development6
Biomass
Conversion to
Building Blocks
Farm
Chemical
Products
Energy
Products
Materials
Agricultural
Products
End UserBiomass
Aggregation and Logistics
2013
Feasibility study
2014 to 2015
Harvesting Demo
Agronomic Study
Formation of Biomass Coop
Technology Demo and Selection
2016 to 2018
Project Execution
1st Commercial Plant
Aggregation and Logistic Plan
Customers
Financing
Collaboration Partners and ParticipantsPhase Partners and Participants
1
Feasibility
2013
Bioindustrial Innovation Canada (BIC), Sustainable Chemistry Alliance Investment Fund
(SCA), Ontario Federation of Agriculture (OFA), Agriculture Adaptation Council (AAC),
Local Farmers, Lanxess, BioAmber, Midori, University of Guelph, Sarnia Lambton
Economic Partnership, Ontario Power Generation, Ontario Ministry of Agriculture and
Food (OMAF), Agriculture and Agri-Food Canada (AAFC)
2
Biomass Supply demo
and validation
2014/15
BIC, OFA, AAC, AAFC, Grain Farmers Ontario (GFO), Local Farmers, AGCO, LaCOOP
Federee, Agris, Advantage Farm Equipment, Wanstead Farmers Coop, IGPC Ethanol,
Agromart, Hiniker, Stinger, BioProducts Agriculture Science Cluster
3
Tech Selection, logistics
and Economics
2014/15
BIC, OFA, AAC, AAFC, Fed Dev, ON, Alberta Agriculture, GFO, IGPC Ethanol, Local
Farmers, Jungbunzlauer, BioAmber, Cellulosic Sugar Producers Coop, 19 Biomass
Conversion Technology Companies, Western University, Agris, NRC, University of British
Columbia, Potential Customers
4
Project Dev
2016
BIC, SCA, TBA, Cellulosic Sugar Producers Coop, Comet Biorefining
5
Execution
2016-2018
BIC, SCA, TBA, Cellulosic Sugar Producers Coop, Comet Biorefining
7
3 Market
Group
3 Supply
Group
3 BIC
1 OFA
1 GFO
1 Alberta
Project Participants – Technology
Selection
Steering
Committee
10 people
2 observers
BIC
James LeeMurrayMcLaughlin
Sandy MarshallMatthew Slotwinski
Technology
Providers
Blind
Testing @
Labs and
Potential
Customers
Market
Group
NDA
Wall
NDA
Wall
Supply
Group
8
Full Development
Project #1 – 2016 to
2018
Project #2
Project #3
Technology Selection Results (Phase 3)
Technology selection process completed in February 2016
Validated Economics from the Farm to the Products for a cellulosic
sugar plant producing up to 125,000 tonne/year of cellulosic sugars
from up to 250,000 tonne (dry)/year of biomass feed
Recommended up to four conversion technologies for full project
development, including a commercial scale cellulosic sugars manufacturing facility
9
Selection Criteria – High Level
# Criteria Measure Conditions
1 Economic Risk
Adjusted $
Must be economically viable without any subsidy
such as RIN, FIT, etc.
2 Technology Y/N, Risk
Factor
Must be ready for commercial scale-up or a 2nd of
its kind, Must have clear title to IP
3 Responsible Care
and Sustainability
Y/N Must be safe, all associated chemicals must be
registered, minimal environmental footprint. Must
be able to demonstrate farm sustainability as part
of supply chain
4 Operability and
Reliability
Y/N Must be able to operate reliably 365x24 without
exceptional complexity
5 Feedstock Y/N Must be able to process corn stover and wheat
straw
6 Product quality Y/N Must be able to produce sugar and co-product
streams saleable into chemical, renewable
fuel/energy, materials or agricultural markets
7 Organizational and
Strategic Fit
Y/N Must fit with Cooperative’s organizational mandate
and BIC’s strategic mandate
10
BioProducts
Cluster
Project
Economic Analysis Envelope
PreTreatment Conversion
Separation
and
Purification
Product
Storage
Biomass
Storage
Delivered
Cost of
Biomass
Sales
Sales Logistics
Economic
Synergies with
Biomass Suppliers
and Conversion
Facility
Economic
Synergies with
Customers and
Conversion
Facility
Products &
CoProducts
11
Results of Stage-Gate Process
Stage 1
19 Technologies
“Paper Evaluation” vs Criteria
Stage 2
8 Technologies
Technology validation, blind lab analysis of products, FEL1 mass and energy balance and process economics
Stage 3 – Validation at Demonstration/Pilot Scale
4 Technologies
Processing of corn stover supplied by BIC from 240 acres harvested under BioProducts Cluster Project (OFA/LCF)
Mass and energy balance from biomass processing, samples tested by Customer Group and blind testing labs
Project Economics (farm to customer)
Recommendations for Project Development
12
Recommendations
4 technologies recommended to Cellulosic Sugar Producers
Cooperative
Requirements for commercial scale project development
Comet Biorefining chosen by CSPC
13
Cellulosic sugar technology trivia
that had no influence in BICs
evaluation 90% of the technologies started with hardwood as the starting
biomass
>75% of the technologies latest design ended with agricultural
biomass as the preferred feedstock
US renewable fuel policy accelerated development of cellulosic technologies
Original assumptions of ultra low cost biomass has proven to be an
economic myth
Lignin still cannot make money today
15
Top Three Costs of Producing
Cellulosic Sugars (Glucose Basis)
1. Delivered cost of biomass
2. Conversion of cellulose to glucose
Enzymes
3. Pretreatment
Separation of cellulose, hemicellulose, lignin
16
Bipolar Distribution in Investment in
Biomass Processing Innovation
Cost Component Investment in Innovation
Biomass Significant
Conversion of Cellulose to
Glucose
Pretreatment
Separation of Cellulose,
Hemicellulose, Lignin
Significant
17
Cellulosic Building Block ProductsListed from highest to lowest value today
1. High Purity Xylose
2. Crystalline Nano Cellulose
3. High Purity Glucose
4. High Purity Cellulose
5. Hemicellulose
6. Lignin
18
Investment in Innovation of Building
Block Derivatives
Cellulosic Building Block Product Investment in Innovation
High Purity Xylose
Crystalline Nano Cellulose Significant
High Purity Glucose
High Purity Cellulose
Hemicellulose
Lignin Overwhelming
19
Competitiveness vs. Incumbent 20
Biomass
Technology
Operating
Glucose
Hemicellulose
Lignin
Corn
Operating
Fructose
Glucose
Starch
Oil
Evolution of Cellulosic Sugar Milling 22
Biomass
Technology
Operating
Glucose
Hemicellulose
Lignin
Biomass
Technology
Operating
Glucose
Hemicellulose
Lignin
Innovation and
development
Inc
rea
sin
g
ma
rgin
On Going Cellulosic Sugar Technology
and Market Development
Development of Canada’s first on-purpose cellulosic sugar plant in Sarnia, Ontario
Comet Biorefining
Cellulosic Sugar Producers Cooperative
Full development of corn stover supply chain for 1st plant
First commercial scale harvest of stover ready prior to plant start-up
Continued market experience and development of cellulosic building block products and technologies
Next cellulosic sugar plant development (Sarnia#2, Alberta, Saskatchewan, other Ontario location?)
23