the potential and challenges of drop-in biofuels...

Forest Products Biotechnology/Bioenergy (FPB/B)

The potential and challenges of drop-in biofuels production

2018 update

Susan van Dyk, Jianping Su, James McMillan and Jack Saddler

Forest Products Biotechnology/Bioenergy Group

Coordinator: International Energy Agency Bioenergy Task 39 (Liquid biofuels)

Forest Products Biotechnology/Bioenergy at UBC 2

www.task39.org

Commissioned report published by IEA Bioenergy Task 39 (2014)

Commercializing Conventional and Advanced Liquid Biofuels from Biomass

Forest Products Biotechnology/Bioenergy at UBC

Definition of “drop-in” biofuels

Drop-in biofuels: are “liquid bio-hydrocarbons that are: functionally equivalent to petroleum fuels and fully compatible with existing petroleum infrastructure”

Current biofuels vs Drop-in fuels

Fatty acid methyl ester (FAME) - biodiesel

• Hydrotreated vegetable oils (HVO) or HEFA

• Hydrotreated pyrolysis oils (HPO)• Fischer-Tropsch liquids

Fatty acid methyl ester (FAME) - biodiesel


Technologies for drop-in biofuel production

Oleochemical

Thermochemical

Biochemical

Hybrid

Oils and fats

Lignocellulose

Sugar & starch

Light gases

Naphtha

Jet

Diesel

Single producte.g. farnesene,

ethanol, butanol

HEFA-SPK

FT-SPK/SKA

HDCJ, HTL-jet

SIP-SPK

ATJ-SPKCO2, CO

APR-SPK

Green diesel


Oleochemical drop-in biofuel platform

Products – HVO, HEFA, HDRD, HRJ “Simple” technology, low risk (already commercial) ASTM certification in 50% blends

Hydrotreatment of lipid feedstocks (vegetable oils, used cooking oil, tallow, inedible oils)

Lowest H2 requirement Blended product –renewable diesel

5

Forest Products Biotechnology/Bioenergy (FPB/B)

CATALYTIC UPGRADING

INTER-MEDIATES

Hyd

ro

trea

tmen

t 1

Pyrolysis oil

Fisc

her

Trop

schGasification

Syngas

Biomass

Hyd

rocr

acki

ng

HPO

FT liquids

Gasoline

Diesel

Jet

Gases500°C No O2

900°C some O2

Hyd

ro

trea

tmen

t 2

6

Thermochemical drop-in biofuel platforms


Biochemical and hybrid technologies

sugar

FERMENTATION- Conventional - Advanced

Product

Hydrocarbon e.g. farnesene

Biomass

hydrolysis

CO2

Alcohols e.g. butanol, ethanol

Drop-in fuel

Farnesane

ATJ-SPK fuelATJ

Alcohol-to-jet (ATJ)-Dehydration-Oligomerisation-Hydrogenation-Fractionation

Source: Lanzatech

14


Challenges of technology platforms

Oleochemical Feedstock cost, availability, sustainability

Pyrolysis Hydrogen Hydrotreating catalyst – cost and lifespan

Gasification Capital / scale Syngas conditioning

Biochemical Low productivity Valuable intermediates

8


Stages of commercialisation


Commercial volumes of drop-in biofuel through oleochemical platform

Neste Oil facility, Rotterdam

10

Company Feedstock Billion L/yNeste (4 facilities) mixed 2.37

Diamond Green Diesel tallow 0.49REG Geismar tallow 0.27

Preem Petroleum Tall oil 0.02UPM biofuels Tall oil 0.12

ENI (Italy) Soy & other oils 0.59Cepsa (Spain 2 demo facilities) unknown 0.12

AltAir Fuels mixed 0.14World Total 4.12


Key challenge in drop-in biofuel production –getting rid of oxygen

Oxygen content of feedstock (up to 50%)• Oxygen content reduces energy density of fuel• Effective Hydrogen to carbon ratio

• Heff/C = 𝑛𝑛 𝐻𝐻 −2𝑛𝑛(𝑂𝑂)𝑛𝑛(𝐶𝐶)


The Effective H/C ratio staircase…

Sugar 0

0.2Wood

0.4

Diesel 2.0

1.8LipidsOleochemical

Thermochemical

Biochemical

‘Drop-in’ biofuel

1.0

0.6

0.8

1.2

1.4

1.6

Lignin

High O2 or low H/C feedstocks require more H2 inputs

Lipid feedstocks require the least H2


Competition for hydrogen

• 90% of commercial H2 comes from steam reforming of natural gas

• Well established process in petrochemical industry, but decreased quality of oil will increase demand for H2

• Biomass? BIOOIL

10


How do we expand drop-in biofuel production?

Build stand-alone infrastructure

Co-location (hydrogen)

Repurpose existing infrastructure (e.g. AltAir in California)

Co-processing of biobased intermediates in existing refineries to produce fossil fuels with renewable content (lower carbon intensity)

Risk Capital


Co-location“Over the fence” Hydrogen inputs can reduce

capital and feedstock costs

Petroleum hydrodesulfurisation Petroleum hydrocracking Pyrolysis

oil

HTL

biocrude

Naphtha

HDS

Kerosene

HDS

ATM resid

HDS

Gas Oil

HDS

Mild HCK Single

STG HCK

Resid

HCK

HDO HDO

45 555 460 422 358 1150 660 ~3400 ~1800

Hydrogen (H2) consumption for different processes (standard cubic feet/barrel)


Co-processing

Types of feedstock – lipids, biomass based biocrudes

Potential points of insertion into the refinery

Potential problems


Co-processing-potential insertion points

Co-processing strategies illustrated as various potential insertion points into a generic type of refinery

Challenges


Oleochemical feedstocksVegetable oils (palm oil, canola, rapeseed, soybean), Animal fats, Used cooking oil, Non-edible oil (tall oil, carinata)

Characteristics Triglycerides and free fatty acids Chemically quite homogenous Lipids in diesel range 11% oxygen, 1.8 H/effC ratio Waste oils have higher free fatty acids which affects the acidity Waste oils also have other contaminants


Bio-oils and biocrudes

• Fast pyrolysis oils, Catalytic pyrolysis oils, Partially deoxygenated pyrolysis oils,

Hydrothermal liquefaction biocrudes

Characteristics Up to 400 different components

High oxygen levels (up to 50% in fast pyrolysis bio-oils)

Low pH, corrosion

High aromatic content from degradation of lignin

Water content, phase separation

Catalytic pyrolysis oils or partially hydrotreated pyrolysis bio-oils have

lower oxygen levels


Deoxygenating biomass


Chemistry of oxygen removal and implications for refinery processes

Formation of CO, CO2 and H2O

Hydrotreating generates heat

Potential formation of CH4

Catalyst inactivation

Increased formation of aromatics in the FCC

Interrupted production


Why? The role of policy

Considerations Risk Product slate Benefits ASTM certification of co-processed products

Refinery Integration and Co-processing


Tracking renewable content during co-processing

(CARB, 2017)

• C14 isotopic method

• Potential mass balance approach

• Total mass balance method

• Mass balance based on observed yields

• Carbon mass balance method


Carbon Intensity Determination

FCC co-processing Use process unit level allocation on energy basis

Hydrotreater co-processing Use incremental allocation 𝐺𝐺𝐺𝐺𝐺𝐺𝐿𝐿𝐶𝐶𝐿𝐿 = 𝐺𝐺𝐺𝐺𝐺𝐺𝑐𝑐𝑐𝑐 − 𝑀𝑀𝑐𝑐 × 𝑌𝑌𝑖𝑖

GHGLCF = Incremental GHG emissions associated with low carbon fuel GHGcp = GHG of Ith fuel (low carbon + petroleum) produced from co-

processing Mp = Mass of middle distillate used in co-processing Yi = specific emissions per unit middle distillate processed in the baseline

(kg CO2e/kg-middle distillate)


Role of policy

Fossiljet

MFS

P

Biojet

Bridging the gap to achieve price parity

Policy has been essential for development of conventional biofuels

Blending mandates, Subsidies, Tax credits, market based measures (carbon tax, low carbon fuel standards)

Drop-in biofuels will find it challenging to compete at current oil prices

Policy to assist in bridging this price gap Specific policy support for drop-in fuels


LCA comparison for technologiesDifferences mainly due to: Cultivation

emissions from fertilizer application

Feedstock characteristics (Moisture content, level of saturation)

Co-products


Some conclusions Importance of feedstock cost, quality and supply chain

Important role of policy to drive development

Drop-in biofuel production more similar to oil refining Multiple products Similar upgrading

Drop-in biofuels particularly suited to certain sectors (aviation, trucking)

Biojet fuel initiatives are playing an important role in driving drop-in development


Conventional drop in biofuels act as a bridge to advanced drop-in biofuels

Conventional drop-ins

Advanced Drop-ins

Fossil fuels

Vegetable crops canola, Tall Oil, UCO

Lignocellulosic feedstocks, forest residue supply chain

the potential and challenges of drop-in biofuels...

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