Adding Value to Forest and Agriculture Residues: Proven 2 nd Generation

Technology for Liquid Biofuels Production

Adding Value to Forest and Agriculture Residues: Proven 2 nd Generation

Technology for Liquid Biofuels Production

© 2010 UOP LLC. All rights reserved.

Maurizio Di DioUOP, A Honeywell Company

Maurizio Di DioUOP, A Honeywell Company

UOP 5371-01

BIOENERGIEMay 20, 2010Milan, Italy

UOP Company ProfileServing the Refining, Petrochemical & Gas Processin g Industries

Profile Business Units:� Process Technology & Equipment (PT&E) � Catalysts, Adsorbents & Specialties (CA&S)� Renewable Energy and Chemicals

WW HQ: Des Plaines, Illinois (suburban Chicago) � Employees: 3000+

Offering: � Technology, Catalyst & Services to the Refining,

Petrochemical and Gas Processing Industries� Supplier of molecular sieve adsorbents to process

and Mfg. IndustriesSignificant Brand Equity

Market Coverage

UOP Facilities

UOP Footprint

Licensing12%

Products51%

Services12%

Equipment25%

Revenue Distribution

Sales: Geographic

� 19 Offices

� 16 Countries

� 12 Manufacturing Facilities

� 5 Engineering Centers

UOP OfficesUOP Manufacturing sites

Sales : Breakdown

Middle East, 12%

Americas, 28%

Asia, 23%

India, 7%

China, 10%

Europe, 20%

UOP 5304-03Established Global Supplier

34%

15%

36%

15%

• Founded in 1886• 118,000 employees in nearly

100 countries• A Fortune 75 company• ~$36 billion in sales in 2008• Global leader in advanced

technology products, services and solutions UOP

Technology Company, Financially Strong and GlobalTechnology Company, Financially Strong and Global

Honeywell Corporate Overview

Aerospace

Automation & Control

SpecialtyMaterials

Transportation& Power Systems

UOP 4638NC-03

Customer needs

On-goingServices,Revamps,

Studies

Start-up Services,Training

ProcessDesign

Engineering

EquipmentCatalysts,

Adsorbents,

UOP Delivers Technology

UOP 5304-04

Technology Delivery

UOP can deliver technology as Packaged Equipment or as Licensed Technology

Complete Technology Delivery Package

• Planning & Consulting Studies• Engineering Services• Basic Engineering Design• Advanced Process Control• Equipment

- Modular Construction- 160 projects since 1987

• Catalyst, Adsorbent, Chemicals• Training• Start-up Assistance• Ongoing Services & Inspection

Agenda

• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A

UOP 5371-02

Agenda

• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A

UOP 5371-03

World Energy Outlook

• The world energy challenge is enormous- Global energy demand will increase 1.5 % per year u ntil 2030

� From 12 (2007) to 16 Billion tons oil equivalent- CO2 emissions, Gt/year 28.8 (2007) ���� 40.2 (2030) - CO2 emission price, $/ton CO 2 ~15 (2009) ���� 50 (2020)- Oil price, $/barrel 60 (2009) ���� 115 (2030)

• Investments in low-carbon technology are needed- To reduce dependency in fossil fuels- To reduce CO 2-emissions in to the

atmosphere� 1000 ppm CO2 vs. 450 ppm CO2 scenario� Global temperature rising by +6 °C vs. +2°C

• Key segments� Buildings – energy efficiency� Power Generation and Industry

• Low carbon energy and Carbon Capture and Storage (CCS)

� Transportation• Biofuels UOP 5371-04

Source: World Energy Outlook 2009, International Energy Agency (IEA)

Average CIF Cost of Imported OilIEA Total

1501301109070503010

$/bb

l

Nov/99

Nov/00

Nov/01

Nov/02

Nov/03

Nov/04

Nov/05

Nov/06

Nov/07

Nov/08

Nov/09

The EU Climate and Energy Package • Known as 20-20-20 targets

-A reduction in EU greenhouse gas emissions of at least 20% below 1990 levels

-A 20% reduction in primary energy use compared with projected levels, to be achieved by improving energy efficiency

-20% of EU energy consumption to come from renewable resources

•Key legislations and actions-Emissions Trading System (EU ETS)-Effort Sharing Decision (Non-ETS like transport, housing, argiculture, waste)

-Carbon Capture and Storage (CCS)-National Target Setting for Renewable Energy and Re newable Energy Sources (RES)

� National binding targets: Malta 10 % � Sweden 49 %-European Industrial Inititiative on Bioenergy

� 10 % share of biofuels in EU transport by 2020 (5.75 % 2010)� 9 Billion EUR for industrial pilot, reference and first-of-a-kind projects inside EU� Selected thermo- and biochemical pathways (value chains)

Source: European Union/European Commission

UOP 5371-05

Europe´s Primary Bioenergy Potential is Sufficient

Source: EEA Report 7/2006How much bioenergy can Europe produce without harming the environment?

UOP 5371-06

Environmentally-Compatible Primary Bioenergy Potenti al in the EU

350

300

250

200

150

100

50

0

Prim

ary

Bio

ener

gyP

oten

tial,

MtO

EAdditional agriculture potential (DE, FR)Additional forest potentialAgricultureForestryWaste

Effect of increasing energy

& CO2 prices towards 2030

2010 2020 2030

20% target from primary biomass by 2020, 230-250 Mt OE

Note: The agricultural potential comprises dedicated bioenergy crops plus cuttings from grassland and was calculated for EU-25 with out Cyprus, Luxembourg and Malta. Agricultural residues, such as straw and manures, are included in the category ‘waste’ (covering all EU-25 Member States). The forestry potential was calculated for EU-25 except Cyprus, Greece, Luxembourg and Malta. It consists of residues from fellings and complimentary fellings. The additional forestry potential takes into account the reductions in the black liquor potential as a result of weed redirected from pulp and paper to energy production. It strongly depends on the assumed carbon permit and oil price. The additional agricultural potential due to higher prices paid for bioenergy was modeled only for Germany (DE), France (FR).

Forestry Biomass –One Renewable Energy Source

UOP 5371-07

Environmentally-Compatible Bioenergy Potential from Residues in 2030

Environmentally-Compatible Bioenergy Potential from Complementary Fellings in 2030

Complementary fellingsThe gap between annualincrement (growth) andfellings

Source: EEA Report 7/2006How much bioenergy can Europe produce without harming the environment?

2nd Generation Biofuels• Non-food crop based lignocellulosic feedstock

-Forest and agricultural residual biomass-Algal biomass

• Feedstock plays a key role-Availability-Sustainability -Quality-Cost-efficient supply

• Offer an interesting opportunity for power generation, process and other industries to

-Become fossil fuel free-Reduce CO 2 emissions-Generate new business

• Potential pathways are for example-Bio-Chemical

� Fermentation (methanol, ethanol)

-Thermo-Chemical� Gasification and Fisher-Tropsch synthesis (syngas, biodiesel, aviation fuels)� Pyrolysis and upgrade (power generation, biodiesel, aviation fuels)

UOP 5371-08

Pyrolysis

•Has been identified as one pathway in European Indus trial Initiative on Bioenergy

•Cost-efficient pathway to second generation biofuels• Interesting findings in Canada

- Pyrolysis gives a high ROI in stand-alone and integ rated applications

Source: Forest Products Association of Canada

UOP 5371-09

Agenda

• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A

UOP 5371-10

2nd Generation Renewable Energy Company – Global Reach

• ~20 years of commercial fast pyrolysis operating experience

• Developers of innovative RTP TM fast pyrolysis process

• 8 commercial RTP TM units• Now applying technology to fuel oil

and energy

• Formed in October 2008• Provides pyrolysis oil technology for fuel oil substitution and electricity generation

• Channel for UOP R&D program to upgrade pyrolysis oil to transportation fuels

Envergent Technologies LLC –UOP / Ensyn Joint Venture

• Leading process technology licensor~$2 billion in sales, 3000 employees

• Co-inventor of FCC technology• Modular process unit supplier• Global reach via Honeywell &

UOP sales channels

UOP 5371-11

Lignocellulosic Biomass Processing Options

SolidBiomass

Direct Combustion

Fast Pyrolysis

PyrolysisOil

Gasification

SynGas

Heat & Power

TransportFuels

FischerTropsch

Upgrading

Hydro-cracking/Dewaxing

CellulosicEthanol Ethanol

Envergent Route to Energy

UOP 5371-12

Pyrolysis Oil to Energy & Fuels Vision

Phased Commercialization

Available for S

ale

Com

mercially

available in 2010

Ag Residue

Forest Fiber

EnergyFuels

P P

P P ElectricityProduction

Fuel OilSubstitution

Transport Fuels(Gasoline, Jet Diesel)

Fast Pyrolysis

PyrolysisOil

Biomass

UOP 5371-13

Rapid Thermal Processing (RTPTM) Technology

Commercially Proven Patented Technology

Pyrolysis Oil

Solid Biomass

� 510°C, < 2 seconds� Biomass converted to

liquid pyrolysis oil� Fast fluidized bed, sand

as heat carrier� High yield; >70 Wt% liquid

on woody biomass

UOP 5371-14

RTPTM Flow Diagram

Minimal net utilities RTP TM is self-sustaining processUOP 5371-15

RTPTM Operating History & Commercial Experience

• Commercialized in the 1980’s• 7 units designed and operated in the US & Canada• Continuous process with >90% availability

Significant Commercial Experience

PlantYearBuilt

Operating Capacity (Metric Tonnes

Per Day) Location

Manitowoc RTPTM – 1 1993 30 Manitowoc, WI, USA

Rhinelander RTPTM – 1 1995 35 Rhinelander, WI, USA

Rhinelander Chemical #2 1995 2 Rhinelander, WI, USA

Rhinelander RTPTM – 2 2001 45 Rhinelander, WI, USA

Rhinelander Chemical #3 2003 1 Rhinelander, WI, USA

Petroleum Demo # 1 2005 300 barrels per day Bakersfield, CA, USA

Renfrew RTP TM – 1 (Owned and

operated by Ensyn)2007 100 Renfrew, Ontario,

Canada

Note: design basis for wood based plants assumes feedstocks with 6 wt% moisture content.

UOP 5371-16

• FCC technology is key process in gasoline productio n • UOP has been designing FCC units since the

early 1940’s – one of the co-inventors• Licensed over 250 units – more than 50% of

world-wide capacity• Unit sizes from 1,500 to 200,000 BPD capacity

RTPTM UOP FCC

FCC Experience Enables Scale-up

UOP FCC Background

UOP 5371-17

Feedstock Sources

Cellulosic Feedstocks Widely Available

� Forestry and Pulp and Paper– Wood chips, sawdust, bark– Forestry residues

� Agricultural– Residues – corn stover, expended fruit

bunches from palm (EFB), bagasse– Purpose-grown energy crops –

miscanthus, elephant grass

� Post-consumer– Construction and Demolition Waste,

Categories 1&2– Municipal solid waste (future)

� DoE study 2005 - > 1 billion ton per year available in United States alone

UOP 5371-18

Feed Handling / Preparation

• Water is a heat sink– Dried to 5-6 wt% moisture content for efficient RTP TM reactor operation

• Size impacts heat transfer– Biomass sized to 0.125-0.25 inch (3-6 mm)

• Capacity of unit expressed on bone dry feed basis– BDMTPD– Zero water content

RTPTM is Self-Sustaining –Excess Heat Dries Raw Biomass

FeedHandling RTP Storage

PyrolysisOil

“As Produced”

PreparedBiomass“As Fed”5-6 Wt%Moisture

0.125 to 0.25”

Raw BiomassUp to 40 Wt%Moisture

UOP 5371-19

RTPTM Product Yields

Typical Product Yields, Wt% Dry Feed

70Pyrolysis Oil

15Char

15By-Product Vapor

100Hardwood Whitewood

Feed, Wt%

60 – 80Waste Paper

70 – 75Bagasse

65 – 75Corn Fiber

55 – 65Softwood Bark

60 – 65Hardwood Bark

70 – 80Softwood

70 – 75Hardwood

Typical Pyrolysis Oil Yield, Wt% of Dry Feedstock

Biomass Feedstock Type

400 BDMTPD of Whitewood Hardwood

Yields For Various Feeds

Second Generation Feedstock Flexible With High Yields of Pyrolysis Oil

UOP 5371-20

RTPTM Pyrolysis Oil Properties

Suitable for Energy Applications

Comparison of Heating Value of Pyrolysis Oil and Typical Fuels

�Pourable, storable and transportable liquid fuel

�Energy densification relative to biomass�Contains approximately 50-55% energy

content of fossil fuel�Requires separate storage from fossil

fuels

139,40038.9Light Fuel Oil (#2)

84,00023.5Ethanol

71,50019.9Pyrolysis Oil62,50017.5Methanol

BTU / US GallonMJ / LitreFuel

UOP 5371-21

Pyrolysis Oil Energy Applications

Multiple Applications for Pyrolysis Oil, a Renewable Fuel Available Today

GasTurbine

StationaryDieselEngine

Heat

ElectricityCHP

GreenGasoline,

GreenDiesel &

Green Jet

Fischer-Tropsch

SyngasGasification

OptimizedUOP

UpgradingTechnology

FuelBurner

Hydro-cracking/Dewaxing

RTPUnit

� Replacement of fossil fuel for heat/steam generation

� Production of green electricity

� Alternate revenue stream from external sale

� Future upgrading to transportation fuels

UOP 5371-22

Pyrolysis Oil: Alternate Revenue Stream

� Development of pyrolysis oil as a well-defined commodity critical to success

-Producer and consumer confidence

� ASTM standard specification for use of pyrolysis oil in industrial burners is a key first step ASTM E70reportpH

ASTM D97-9 maxPour Point, oC

ASTM D93, Procedure B

45 minFlash Point, oC

ASTM 4820.25 maxAsh Content, wt%

ASTM 42940.05 maxSulfur Content, wt%

ASTM D40521.1 – 1.3Density, kg/dm3

@ 20 °C

ASTM D445125 maxKinematic Viscosity, cSt @

40 °C

ASTM E20330 maxWater Content, wt%

ASTM D7544, Annex I

2.5 maxPyrolysis Solids Content, wt%

ASTM D24015 minGross Heat of Combustion,

MJ/kg Point, oC

Test MethodValueProperty

ASTM D7544, Standard Specification for Pyrolysis Liquid Biofuel

Comparison of Cost of Selling PyOil vs. Making PyOil

0

0.2

0.4

0.6

0.8

1

Selling PyOil Making PyOil

$US

/US

Gal

lon

UOP 5371-23

Pyrolysis Oil: Replacement of Fossil Fuels to Generate Heat

0

0.5

1

1.5

2

Buying # 2 Fuel Oil Making PyOil

$US

/US

Gal

lon

� Specialized burner tips improve flame/burning

� Low emissions (NOx, SOx)� Fuel consistency - ASTM D7544� Flexibility to decouple pyrolysis oil

production from energy generation (location and time)

� GHG emission reduction of 70-90% � Low cost liquid biofuel

- ~40% cheaper to make and use pyrolysis oil than to purchase #2 fuel oil on an equivalent energy basis� 400 BDMTPD RTP Unit� Assumes 60 $US/bbl crude� Includes RTP operating cost and

15-yr straight line depreciation of CAPEX

� 330 Days per Year

Comparison of Cost of Buying #2 Fuel Oil vs. Making Pyrolysis Oil

~ 8 $US Million per Year SavingsUOP 5371-24

Burner Data

69--2--LFO

88--40--PyOilBROCK (Canada)

80--15<1LFO

108--38<5PyOilMIT (USA)

103125318LFO

2689523776HFO

16642643PyOilCANMET (Canada)

<50--440.7PyOilWWFB (USA)

NOx(ppm)

SOx(ppm)

CO(ppm)

Particulate (mg/Nm 3)

Emission Levels

Fuel*Combustion

System

*HFO – heavy fuel oil; LFO – light fuel oil

UOP 5371-25

Pyrolysis Oil: Production of Green Electricity

� Compatible with specialized turbines

� Green electricity production cost is less than 0.10 $US/kW-h

- Includes RTP operating cost and 15-yr straight line depreciation of CAPEX (including gas turbine)

� Experience in stationary diesel engine as blend with fossil fuel

-Operation with 100% pyrolysis oil under development.

-Commercial application expected in 6-12 months

UOP 5371-26

Pyrolysis Oil Performance in Gas Turbine

Orenda GT2500 Turbine from Magellan Aerospace Corp.

Proven Performance in Commercially Available Combined Cycle Gas Turbine

12001055180010711800Fuel flow, litre/h

1.0421.02.07.01.0SO2 normalized emission, ppm

EnsysnPyrolysis

Oil

321.0326.0101.0321.060.0NOx normalized emission, ppm

25502510251025102650Generator electrical power, KW

467444415403420Gas turbine exhaust gas

temperature, oC

1385013850138501385014050Turbo compressor rotor speed, rpm

BiodieselCrude Oil

BlendEthanol# 2 Diesel

Fuel

Properties

UOP 5371-27

RTP™ Pyrolysis Oil Coal Co-Firing

•Coal Co-Firing at Manitowoc Public Utilities

•20 MWe coal-fired stoker boiler•Simple and cost-effective implementation

•Clean and efficient combustion •Lower emissions•No additional maintenance required

•No detrimental effect to boiler or peripheral equipment

•No changes to ash handling

Coal Co-Firing Successfully Proven

UOP 5371-28

Pyrolysis Oil: Upgrading to Green Transportation Fuels

• Objectives-Remove oxygen molecules

-Reduce acidity and viscosity

-Break up molecules to make gasoline and diesel/jet precursors

-Commercialization expected in 2012

• Solution-Thermochemical upgrading; leverage UOP’s extensive hydroprocessing experience

-Continuous, reliable guaranteed process, per current refinery standards

Achieved in Lab, Working on Scale-upUOP 5371-29

Pyrolysis Oil vs. Fossil Fuel LCA

Pyrolysis Oil Production foot printsimilar to fossil energy alternativesAssumed biomass transport distances

� 200 km for logging residues� 25 km for short rotation forest crops

Pyrolysis Oil Life Cycle foot printGreener than other alternatives� Carbon neutral combustion emission � 70-88% lower GHG emissions� SOx emissions similar to Natural Gas

Comparison of GHG EmissionsCradle to Delivered Energy

0

20

40

60

80

100

120

PetroleumCrude Oil

HardCoal

gCO

2eq

/MJ

NaturalGas

CanadianOil SandsCrude Oil

PyOilfrom

LoggingResidues

PyOilfrom

Willow

PyOilfrom

Poplar

Energy ExtractionGHG Emissions

Comparison of GHG EmissionsCradle to Delivered Energy, and Burned

0

20

40

60

80

100

120

PetroleumFuel Oil

HardCoal

gCO

2eq

/MJ

NaturalGas

PyOilfrom

LoggingResidues

PyOilfrom

Willow

PyOilfrom

Poplar

Life Cycle GHG Emissions

through combustion

UOP 5371-30

Agenda

• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A

UOP 5371-31

No 2 Fuel Oil Substitution, per Ton

Assumptions• Energy Equivalent Basis

• WTI SPOT, 81.5 $US/Barrel, Mar 09, 2010

• No. 2 Fuel Oil Price 2.04 $US/US Gal, Mar 09, 2010

• No. 6 Fuel Oil Price 2.04 $US/US Gal Mar 09, 2010

• 15 Year straight line depreciation included

• Hardwood Whitewood feed

• 330 Days per Year

• Subsidies and Tax Incentives Excluded

• Tax, SG&A and Interest Excluded

No. 2 Fuel Oil Substitution

0

50

100

150

200

250

300

350

0 10 20 30 40 50 60 70 80 90 100

Feedstock Cost, $US/Metric Ton, Dry Delivered

Pyr

olys

isO

il P

rodu

ctio

n C

ost,

$US

/Met

ric T

on P

yOil

Pro

duce

d

100 BDMTPD - Pyrolysis Oil Production Cost, $US/Metri c Ton PyOil Produced200 BDMTPD - Pyrolysis Oil Production Cost, $US/Metri c Ton PyOil Produced400 BDMTPD - Pyrolysis Oil Production Cost, $US/Metri c Ton PyOil ProducedCost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil Produced @ 50 $US/Barr el Crude SpotCost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil Produced @ 70 $US/Barr el Crude SpotCost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil Produced @ 100 $US/Bar rel Crude Spot

UOP 5371-32

Agenda

• Introduction• What is driving for 2 nd generation biofuels?• Rapid Thermal Processing (RTP TM)• How about economics?• Conclusions• Q&A

UOP 5371-33

Conclusions

�Global and European climate targets address the nee d of renewable energy, 2nd generation biofuels and low-carbon technology

�RTPTM is commercially proven technology: Seven units designed and operated

�Reliable operation with 90% on-line availability�Designed to maximize pyrolysis oil yield, 70 Wt% ba sed

on hardwood whitewood feed�Cost competitive with fossil fuel oil�Engineering and modular delivery

by world-renowned industry leader�Technology for upgrading to

transportation fuels expected to be available in 2 years

UOP 5371-34

UOP 5371-35