industrialization of the cellulosic sugar supply chain
TRANSCRIPT
INDUSTRIALIZATION OF THE CELLULOSIC SUGAR SUPPLY CHAIN
Murray McLaughlin Biorefineries: Building the Bioeconomy
Bioindustrial Innovation Canada
Bioenergy Australia, Brisbane
November 15-17, 2016
PRESENTATION OBJECTIVES
• A Little About BIC
• Overview of Cellulosic Sugar Project
• Process
• Recommendations
• Observations
• Innovation
• Economics
• What’s Next?
MISSION
BIC provides critical strategic investment, advice, and services to business developers of clean, green and sustainable technologies. Our expertise in commercialization builds a stronger Canada.
Vision:
To create Jobs and economic value sustainably for Canada
Funded by:
FedDev; AAFC; MRI; Private sector
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BIOINDUSTRIAL INNOVATION CANADA
CELLULOSIC SUGAR PROJECT OVERVIEW
Creating a new Industry – industrial Sugar from Biomass
Conidential
ADDRESSABLE MARKETS
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
VISION
• An operating agricultural biomass to end-products supply chain in Canada 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
CELLULOSIC SUGARS – PROJECT DEVELOPMENT
Biomass
Conversion to
Building Blocks
Farm
Chemical
Products
Energy Products
Materials
Agricultural
Products
End User Biomass
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 PARTICIPANTS
Industry
Academics
Governments
Farmers
La Coop Federee
IGPC
Jungbunzlauer
BioAmber
Agris Coop
Cellulosic Producers Sugar Coop
University British Columbia
Western University
Lambton College
Ontario Federation Agriculture
Ontario Grain Growers
Alberta Innovates
Agco
Advantage Farm Machinery
Agriculture Adaptation Council
Agriculture and AgriFood Canada
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 (bone dry)/year of biomass feed
• Recommended up to four conversion technologies for full project development, including a commercial scale cellulosic sugars manufacturing facility
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
RESULTS OF STAGE-GATE PROCESS
• Stage 1
• 19 Technologies
• “Paper Evaluation” vs Criteria
• Stage 2
• 8 Technologies – site visits
• Technology validation, blind lab analysis of products, 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) in 2015
• Mass and energy balance from biomass processing, blind samples tested by Customer Group and University testing labs
• Project Economics (farm to customer) developed
• Recommendations for Project Development
RECOMMENDATIONS
• 3 technologies recommended to Cellulosic Sugar Producers Cooperative
• Requirements for commercial scale project development
• Comet Biorefining chosen by CSPC
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
CELLULOSIC BUILDING BLOCK PRODUCTS LISTED 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
LIGNIN – CAN YOU MAKE MONEY -USES BEING DEVELOPED
• As a fuel – 150-200/tonne
• As a wood binder – 500
• In Phenol formaldehyde resins – 1500-2000
• In Rigid Poly Urethane foams – 2000
• In thermoplastics – 1500-2000
• In H2O soluble polymer applications - 3500
Data from FPInnovations – World’s largest Non profit forest research Orgainzation
CELLULOSIC SUGAR CHAIN DEVELOPMENT
WHAT’S NEXT
ON GOING CELLULOSIC SUGAR DEVELOPMENT 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 Canadian cellulosic sugar plant development (Sarnia#2, Alberta, Saskatchewan, other Ontario location)
• Other Feedstocks – forestry, purpose grown crops, others
• Site Location
• Off take agreements
• Partner with Farm Coop
• Permits
• Raise Capital
• Build a Team
Confidential
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COMET – THE REAL WORK BEGINS
THANK YOU
AGCO Baler and corn harvest
Appreciate Your Interest
Dr. Murray McLaughlin
Sarnia, Ontario, Canada
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