U.S. Department of EnergyBiomass Program

September 11, 2009

Corn and Grains

Oilseeds and Plants

Agricultural Residues

Energy Crops

Forest Resources

Industrial and Other Wastes

Existing Corn Wet Mills

Existing Corn Dry Mills

Existing Oil Seed Mills

Agricultural Residue Processing

Energy Crops Processing(Woody energy crops and

perennial herbaceous crops)

Forest Resources Processing

(Includes existing and repurposed pulp and paper

and forest product mills)

Waste Processing

Biofuels

• Cellulosic ethanol• Green gasoline• Green diesel• Green jet fuel

Biopower

Bioproducts

Chemical Intermediates:• Organic acids• 1,4-diacids• Glycerol• Sorbitol• Xylitol

(Top Value Added Chemicals From Biomass, PNNL, NREL, DOE-OBP Analytical Study, 2004 )

Feedstock Production and Logistics Biomass Conversion End Uses

Major Biomass Pathways

428

377

368

58

87

48

Million dry ton/yr

Yield assumptions: Corn: 207 bushels/acre by 2043, Energy crops: 8 dry tons/yr by 2030Fuel Yield Assumption:1.366 billion dry tons biomass at 100 gallons/ton = 136.6 billions gallons/year

1366

Conversion Technologies

Biomass Program Objectives and Goals

Biochemical– Cost of converting

feedstocks to ethanol: $1.40/gal gasoline equivalent (gge) by 2012

Thermochemical– Cost of converting woody

feedstocks to ethanol: $1.30 gge by 2012

– Cost of converting woody feedstock to hydrocarbon fuels: $1.50 gge by 2017

IntegratedBiorefineries

Infrastructure

Research & Development Demonstration & Deployment

Sustainability & Analysis

• GHG emissions• Water quality

• Land use• Socioeconomics

– Sustainable regional biomass resources: 130 million dry tons/yr by 2012

– Improved logistics systems: $50/dry ton herbaceous by 2012

– Validate integrated process technologies

• 4 commercial scale

• 8 demonstration scale

• Up to 20 pilot or demonstration scale

• In total – over $1.1 Billion DOE investment

• Predictive Modeling• International

Increase understanding of and impacts on:

Make biofuels cost competitive with petroleum based on a modeled cost for mature technology at the refinery gateForecast to be $2.60/gal gasoline equivalent by 2017

Help create an environment conducive to maximizing production and use of biofuels, 21 billion gallons of advanced biofuels per year by 2022 (EISA) (14 billion gge)

– Testing of E15 & E20 and develop biofuelsdistribution infrastructure

Feedstock Systems

Deployment Barriers and Solutions

BasicR&D

Technology Development

Commercially Viable Demo

Permitting &Engineering

Proof of Concept Construction Operation

Co

mm

issi

on

ing

First Commercial Plant Mec

han

ical

co

mp

leti

on

Att

ain

men

t o

f p

erfo

rman

ce c

rite

ria

Del

ays

in a

ttai

nm

ent

of

per

form

ance

cri

teri

a

Operation

80% / 20% 50% / 50% <50% / >50% Loan Guarantee Program/Risk Mitigation Pool

Dev

elop

men

t Cos

ts

100% / 0%

Technology Validation at pilot (1 tpd) and demo (50-

70 tpd) scales

Procurement

Private Cost-Share:OBP Cost-Share:Project Timeline:

Development Stages:Unexpected Cost:

Risk Mitigation:

Private Sector Investment(Balance Sheet, Venture, and/or Institutional)Spurred by Risk Mitigation through Validation

Loan Guarantees

R&D Platforms

Four Commercial-Scale Biorefinergy Projects: up to $ 372 million (includes ARRA)

Eight Small-Scale 10% of Commercial Scale Biorefine ry Projects: up to $275 million

Up to 10-20 more pilot and or demonstration scale p rojects out of $480 ARRA solicitation

Biorefinery Projects funded by the Office of the Biomass Program

Pacific Ethanol Biochemical Wheat Straw/Corn Stover (Boardman, OR)

Blue FireBiochemicalMunicipal Solid Waste(Fulton, MS)

PoetBiochemicalCorn Stover(Emmetsburg, IA)

LignolBiochemicalWood Residues(CO)

AbengoaBiochemical/ThermoAg Waste, Switchgrass(Hugoton, KS)

NewPageThermochemicalWood Chips(Wisconsin Rapids, WI)

Range FuelsThermochemicalWood Chips(Soperton, GA)

KeyCompanyProcess Feedstock(Location)

Flambeau RiverThermochemicalWood Chips(Park Falls, WI)

RSEBiochemicalPulp extract

(Old Town, ME)

AlltechBiochemicalCorn Cob(KY)

MascomaBiochemical

Wood (Kinross, MI)

VereniumBiochemicalBagasse, Energy Cane(Jennings, LA)

MethodologyTopic Selection, Project & Program Review Processes

Planning

Program Implementation

Program Analysis and Evaluation

Biomass Technical Advisory Committee Annual Reports (2002 – 2008)Vision for Bioenergy and Biobased Products in the U.S. (2002, 2006)Roadmap for Bioenergy and Biobased Products in the U.S. (2002, 2007)Breaking the Biological Barriers (2005)Breaking the Thermochemical Barriers (2007)National Algal Biofuels Roadmap (TBD – 2009)Request for Information (Feedstock Logistics 2008)

Competitive Solicitation�USDA-DOE Joint Solicitation (2002 – 2009)�Commercial-Scale Biorefineries (2007) ($372M)�Demonstration-Scale Biorefineries (2008) ($275M)�Enzyme Cost Reduction (2008) ($34M)�Ethanologen Cost Reduction (2007) ($23M)�Syngas Clean Up (2008) ($7M)�Universities (2008) ($4M)�Pyrolysis (2009) ($9M)�Feedstock Logistics (2009) ($21M)

Labs�Core Research�Technology Validations

Stage Gate ReviewsExternal Biennial Peer Review (2009)*

Steering CommitteeNeal Gutterson Mendel TechnologiesJay Keller Sandia National Labs, SC ChairRoger Prince ExxonMobilLiz Marshall World Resources InstituteJohn May Stern Brothers (Financial)Terri Jaffoni Cargill (Retired)Susan Schoenung Bechtel R&D (Retired), SC Co-Chair

*8 Academics participate as reviewers

Budget Formulation

Feedback Loop

Biomass Program BudgetFiscal Years 2005 to 2010

†Figures are adjusted for SBIR, STTR, and rescission (if applicable)‡Note, Biofuels Infrastructure project funding ($19.8M) was appropriated through Integration of Biorefinery Technologies B&R Code*Requested; earmarks yet to be determined and rescission unknown

$89.9M‡

$0

$50

$100

$150

$200

$250

$300

FY11*FY10*FY09FY08FY07FY06FY05

Mill

ions Earmarks

Cellulosic Ethanol Reverse Auction

Large Scale Biopower

Analysis and Sustainability

Integration of BiorefineryTechnologiesProducts Development

Biochemical Platform R&D

Thermochemical Platform R&D

Feedstock Infrastructure

$231.8M

$292.2M

$275.8M

$45.3M$35.3M

$194.6M

$46.8M$43.1M

$1.8M$192.8M

$80.6M

$190.7M$85.1M

$78.0M$214.2M

$230.2M

$89.9M

Earmarks

Cellulosic Ethanol Reverse Auction

Large Scale Biopower

Analysis and Sustainability

Integration of BiorefineryTechnologiesProducts Development

Biochemical R&D

Thermochemical R&D

Feedstock Infrastructure

Directed

Discretionary

$0

$100

$200

$300

$400

$500

$600

$700

$800

ARRAFY10

Mill

ions

CollaborationsProgram Partners and Key Stakeholder Relationships

Biomass Program FundingFY2009: $217 Million

Project Performers• National Laboratories• Industry & Academic Project Partners

DOE Internal Collaboration

• Other EERE Program Offices • Office of Science• Office of Fossil Energy• Office of the Chief Financial Officer• Loan Guarantee Office

Federal CollaborationBiomass R&D Board: DOE, USDA, EPA, OFEE, NSF, DOI, OSTP, DOT, DOC, DOD, Treasury

Interagency Working Groups:

• Feedstock Production• Feedstock Logistics• Conversion• Infrastructure• Sustainability• Environmental, Safety, and Health

Non-Federal Collaboration• Biomass R&D Technical Advisory

Committee • Regional Biomass Energy Feedstock

Partnerships• International Energy Agency• State, Local, and International

Governments• Trade Associations, Nongovernmental

Organizations

Biomass Program Partners Organization Chart

• NREL• INL• ORNL• ANL• PNNL• SNL

National Labs27%

Systems Integration, Analysis & Evaluation

11%

Industry60%

University2%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

1 2 3 4 5

Min

imu

m C

on

vers

ion

Pro

cess

ing

Co

st o

f Eth

an

ol

Pro

du

ctio

n, $

/ga

llon

ga

solin

e (

20

07

$)

Opearting Costs

Capital Costs

Prehydrolysis/treatment

Enzymes

Saccharification &Fermentation

Distillation & SolidsRecovery

Balance of Plant

Biochemical Conversion/Enzymatic HydrolysisCost of ethanol production, $/gallon gasoline

$2.57 $2.42

$1.37

* Conversion costs represented in the figure above are based on conversion of corn stover and equate to an Minimum Gasoline Selling Price $2. 22 in 2012.

$2.67

2005 SOT

2007 SOT

2009Proj

2012Proj

2012Proj

2009 2012

Minimum Ethanol Selling Price ($/gge) $3.58 $2.22

Feedstock Contribution ($/gge) $1.12 $0.86Conversion Contribution ($/gge) $2.42 $1.37Yield (Gallon/dry ton) 78% 90%Technical ProjectionsFeedstockFeedstock Cost ($/dry ton) $57.50 $50.90PretreatmentSolids Loading (wt%) 30% 30%Xylan to Xylose 80% 90%Xylan to Degradation Products 8% 5%

Ammonia Loading (mL of 30wt% per L hydrolyzate) 50 25%

Hydrolyzate solid-liquid separation yes noXylose Sugar Loss 2% 1%Glucose Sugar Loss 1% 0%EnzymesEnzyme Contribution ($/gal EtOH) $0.52 $0.18Saccharification & FermentationToal Solids Loading (wt%) 20% 20%

Combined Saccharification & Fermentation Time (d) 7 3Corn Steep Liquor Loading (wt%) 1% 25%Overall Cellulose to Ethanol 85% 85%Xylose to Ethanol 80% 85%Minor Sugars to Ethanol 40% 85%

Conditioning

$1.37

Pretreatment

ResidueProcessing

ProductRecovery

Conditioning

EnzymeProduction

Co-fermentationOf C5 & C6

Sugars

EnzymaticHydrolysis

Ethanol

By-Products

Hybrid Saccharification & Fermentation - HSF

FeedProcessing& Handling

Reduction of sugar loss 13% (2005) to 1% (2012)

Xylan to Xylose76% (2005) to 85% (2012)

Minor sugars fermented (40%)

Thermochemical Conversion/GasificationCost of ethanol production, $/gallon gasoline

$(0.50)

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2005 State ofTechnology

2007 State ofTechnology

2009 Projection 2012 Projection 2012 Projection

Min

imum

Con

vers

ion

Pro

cess

ing

Cos

t of

Eth

anol

, $/

gallo

n ga

solin

e (2

007$

s)

Opearting Costs

Capital Costs

Feed Handling and Drying

Gasification

SynGas Cleanup &Conditioning

Fuels Synthesis

Product Recovery andPurification

Balance of Plant

$2.82 $2.82

$1.96

$1.28

* Conversion costs represented in the figure above are based on conversion of woody feedstocks and equate to an Minimum Gasoline Sellin g Price $2.38 in 2012.

$1.28

2009 2012

Minimum Ethanol Selling Price ($/gge) $3.42 $2.38

Conversion Contribution ($/gge) $1.98 $1.30

Ethanol Yield (gal EtOH/dry ton) 61.5 71.1Mixed Alcohol Yield 72.5 83.7Technical ProjectionsFeedstockFeedstock Cost ($/dry ton) $58.20 $50.70GasificationRaw Syngas Yield (lb/lb dry feed) 0.82 0.82Raw Syngas Methane (dry basis) 15% 15%Gasifier Efficiency (LHV) 76.1% 76.1%

Tar Reformer (TR) Exit CH4 (dry basis) (mole %) 3% 1%

TR Light CH 4 Conversion (%) 50% 80%TR Benzene Conversion (%) 90% 99%TR Heavy HC/Tar Conversion (%) 97% 99%Sulfur Level in Clean Gas (as H 2S) (ppmv) 50 50

Fuels SynthesisPressure (psia) 1500 1500Single Pass CO Conversion (%CO) 40.0% 50%Overall CO Conversion (%CO) 40.0% 50%

Selectivity to Alcohols (%C)) 80.0% 80.0%

Synthesis Gas Clean-up & Conditioning

FeedProcessing& Handling

Heat &

Power

Gasification

Indirect

Gas Cleanup

High TempSeparation

Gas Conditioning

Collection/Fractionation

Fuel Synthesis

Upgrading

Benzene Conversion 70% (2005) to 99%

(2012)

CO Conversion 40% (2005) to 50% (2012)

Products

Major Technology PlatformThermochemical Conversion/Pyrolysis

0

0.4

0.8

1.2

1.6

2017 Projection

Min

imum

Con

vers

ion

Pro

cess

ing

Cos

t of

Fue

l $/g

allo

n et

hano

l (20

07$s

)

Capital Costs

OperatingCostsNatural Gas

Catalysts andChemicalsUtilities

Fixed Costs

Financial

$1.56

* Conversion costs represented in the figure above are based on conversion of woody feedstocks to a hydrocarbon fuel (57% diesel, 43% g asoline) and equate to an Minimum Fuel Selling Price of $2.04 in 2017.

Numbers are primarily based on literature and bench scale data.

$1.56

FeedProcessing& Handling

Heat &

PowerPyrolysis Bio-Oil

StabilizationBio-Oil

Upgrading

65 lbs wet oil per 100 lbs dry woody

feedstock

65 gal fuel per ton woody feedstock

Fuel Synthesis

Products

Potential Technology Breakthroughs

Feedstocks

*Genetic sequencing, marker-aided breeding, and full deployment of agricultural biotechnology leads to increased feedstock yield, tolerance to stresses, and reliability of feedstock production systems.

Full realization of the Advanced Uniform-Format Solid Feedstock Supply System, which achieves a large-scale commodity and leads to a cellulosic feedstock supply in a standardized format that meets biorefinery standards.

*Algae feedstocks have the potential to increase the amount of non-food biomass above and beyond the potential of lignocellulosics.

Conversion

*Consolidated bioprocessing allows for significant capital cost reductions and process efficiencies by combining the hydrolysis and fermentation into a single microorganism or consortium of compatible microorganisms.

*Direct secretion of products (i.e., hydrocarbon fuels or lipid intermediates) that are not water/media miscible allow for efficient use of feedstocks and nutrient inputs.

Catalyst characterization and lifetime experiments enables significant capital cost reductions and the development of robust and efficient catalysts.

Advanced conversion technologies to utilize wet biomass and hydrothermal liquefaction such as wet gasification can reduce the capital costs associated with drying feedstocks.

* Relevant to Office of Science

Barriers to Speed and Scale

DOE cost share; streamline the NEPA process; assist in developing parallel technology solutions

Pilot and Demonstration Scale Biorefineries: financing uncertainty, NEPA process

Complete intermediate blends testing by Summer 2010; expansion of advanced biofuels R&D; focus on power & products

Near-term: Ethanol Blends; Long-term: Move to hydrocarbon fuels & power

R&D on GHG impacts, indirect land use, & carbon, nitrogen, phosphorus, & water fluxes; watershed-scale field trials

Public Acceptance – Sustainability

R&D on pre-treatment, cost-effective enzymes, pyrolysis oil upgrading, catalyst durability, etc.

Conversion technology breakthroughs

R&D on advanced feedstocks & logistics systems at scale that can support commercial biorefineries (for cellulosic & algal feedstocks)

Feedstock availability & logistics systems

Full implementation of BCAP; policy that values carbon & other environmental services; passage of RPS

Policy: partial implementation of BCAP, lack of monetization of benefits, no Renewable Portfolio Standard, etc.

Fix loan guarantee program to include biofuelsPioneer Plants: no process guarantees, financing uncertainty, no fixed price agreements, etc.

DOE SolutionBarriers

BACK-UP SLIDES

Market Barriers• Lack of cellulosic feedstock market• High capital and production costs • Inadequate feedstock, distribution, and end-

use infrastructure• NEPA delays• Ethanol blend wall• Impacts of economic downturn• Fluctuating petroleum prices

Remaining Needs• Create a single definition of “biomass” that would

apply retroactively• Support EPA RFS implementation• Make DOE/USDA loan guarantee programs more

customer friendly• Implement the USDA Biomass Crop Assistance

Program on a fast-track basis• Allow use of blends between E10 and E85• Accelerate FFV fleet penetration• Create and expand tax credits (investment tax

credit, Farm Bill production tax credit)

Technical Barriers• Collection equipment not optimized for cellulosic

feedstocks• Difficult to access and extract cellulosic energy

content• Lack of proven replicable production pathways• Lack of fully integrated large-scale systems

Steps Taken

• EISA and Farm Bill help establish a market demand for cellulosic biofuels

• Cost-shared biorefinery projects will help validate approaches

• Aim to increase extraction efficiency• DOE testing potential effects of higher ethanol

blends on vehicles and other engines• Recovery Act funding for R&D of advanced

biofuels beyond ethanol and biodiesel and for expansion of infrastructure for higher ethanol blends

Barriers to Speed and Scale of Technology

Project Management Center FY09 Activities

• Planning– Collaboratively plan FOAs with HQ, SI, Labs

• Budget Formulation– Detailed analysis of Project Budget needs & “mortgages”

• Program Implementation– Develop & Issue Funding Opportunity Announcement

(FOAs)– Conduct Merit Review– Negotiate awards– Oversight and Management of resulting projects

• Program Analysis and Evaluation– Work with SI to update Project Management Plan and

quarterly report templates – project plans and progress tied to Program goals, barriers, and milestones.

– Conduct Gate assessment reviews– Plan and implement WBS Area peer reviews with HQ

and SI

7

Pathways

“Outputs”

200 +

Projects

“Milestones”

1

Bioindustry

“Outcomes”

Project

Status

Vision

Status

Mission

Status

Pathway

Status

• May 5, 2009 Presidential Memorandum – Biomass Intera gency Working Group– High level with EPA, USDA, and DOE

• Develop Biofuels Industry• Coordinate Interagency Policy

• Biomass R&D Act of 2000 (amended by legislation)– Biomass Research & Development Board

• Biofuels Interagency Working Groups– Biomass Technical Advisory Committee

• Bioenergy Research Centers– Joint BioEnergy Institute (LBNL)– Bioenergy Science Center (ORNL)– Great Lakes BioEnergy Research Center (Univ. of WI)

• U.S. Feedstock Partnerships– Regional Feedstocks Partnerships– Council on Sustainable Biomass Production

• Global Partnerships– International Energy Agency– Conservation International– Global Bioenergy Partnership

Key Strategic Relationships

Recovery Act Funding and InitiativesBiomass R&D and Demonstration Projects - $800 Million in Funding

$480M Pilot and Demonstration-Scale BiorefineriesValidate technologies for integrated production of advancedbiofuels, products, and power to enable financing and replication.10 to 20 awards for refineries to be operational within 3 years:

Up to $25M for each pilot-scale projectUp to $50M for each demonstration-scale project

$176.5M Commercial-Scale BiorefineriesIncrease in funding for prior awards; two or more projectsExpedite construction; accelerate commissioning and start-up

$110M Fundamental Research$20M: Integrated Process Development Unit

$5M: Sustainability research with the Office of Science$35M: Advanced Biofuels Technology Consortium

$50M: Algal Biofuels Consortium to accelerate demonstration

$20M Ethanol Infrastructure ResearchOptimize flex-fuel vehicles operating on E85Evaluate impacts of intermediate blends on conventional vehiclesUpgrade existing infrastructure for compatibility with E85

$13.5M NREL Integrated Biorefinery Research Facility: expand the pretreatment capacity