Adding Value to Forest and Agriculture Residues: Proven 2 nd Generation Technology for Liquid Biofuels Production

Transcription

1 Adding Value to Forest and Agriculture Residues: Proven 2 nd Generation Technology for Liquid Biofuels Production Maurizio Di Dio UOP, A Honeywell Company BIOENERGIE May 20, 2010 Milan, Italy 2010 UOP LLC. All rights reserved. UOP

2 UOP Company Profile Serving the Refining, Petrochemical & Gas Processing 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: Sales : Breakdown Equipment 25% Licensing 12% Services 12% Offering: Technology, Catalyst & Services to the Refining, Petrochemical and Gas Processing Industries Supplier of molecular sieve adsorbents to process and Mfg. Industries Significant Brand Equity UOP Facilities Sales: Geographic Europe, 20% Products 51% Revenue Distribution Middle East, 12% China, 10% Americas, 28% 19 Offices 16 Countries 12 Manufacturing Facilities 5 Engineering Centers UOP Footprint UOP Offices UOP Manufacturing sites India, 7% Established Global Supplier Asia, 23% Market Coverage UOP

3 Honeywell Corporate Overview Founded in ,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 Specialty Materials UOP Transportation & Power Systems 15% 15% 34% 36% Aerospace Automation & Control Technology Company, Financially Strong and Global UOP 4638NC-03

4 UOP Delivers Technology Complete Technology Delivery Package On-going Services, Revamps, Studies Start-up Services, Training Customer needs Technology Delivery Process Design Engineering Equipment Catalysts, Adsorbents, Planning & Consulting Studies Engineering Services Basic Engineering Design Advanced Process Control Equipment - Modular Construction projects since 1987 Catalyst, Adsorbent, Chemicals Training Start-up Assistance Ongoing Services & Inspection UOP can deliver technology as Packaged Equipment or as Licensed Technology UOP

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

7 World Energy Outlook The world energy challenge is enormous - Global energy demand will increase 1.5 % per year until 2030 From 12 (2007) to 16 Billion tons oil equivalent - CO 2 emissions, Gt/year 28.8 (2007) 40.2 (2030) - CO 2 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 CO 2 vs. 450 ppm CO 2 scenario Global temperature rising by +6 C vs. +2 C Key segments Buildings energy efficiency Power Generation and Industry Average CIF Cost of Imported Oil IEA Total Source: World Energy Outlook 2009, International Energy Agency (IEA) Low carbon energy and Carbon Capture and Storage (CCS) Transportation Biofuels UOP $/bbl Nov/ 99 Nov/ Nov/ Nov/ Nov/ Nov/ Nov/ Nov/ Nov/ Nov/ Nov/

8 The EU Climate and Energy Package Known as 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 Source: European Union/European Commission transport, housing, argiculture, waste) - Carbon Capture and Storage (CCS) - National Target Setting for Renewable Energy and Renewable 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) UOP

9 Europe s Primary Bioenergy Potential is Sufficient Environmentally-Compatible Primary Bioenergy Potential in the EU Primary Bioenergy Potential, MtOE Effect of increasing energy & CO 2 prices towards 2030 Additional agriculture potential (DE, FR) Additional forest potential Agriculture Forestry Waste 20% target from primary biomass by 2020, MtOE 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). Source: EEA Report 7/2006 How much bioenergy can Europe produce without harming the environment? UOP

10 Forestry Biomass One Renewable Energy Source Environmentally-Compatible Bioenergy Potential from Residues in 2030 Environmentally-Compatible Bioenergy Potential from Complementary Fellings in 2030 Complementary fellings The gap between annual increment (growth) and fellings Source: EEA Report 7/2006 How much bioenergy can Europe produce without harming the environment? UOP

11 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

12 Pyrolysis Has been identified as one pathway in European Industrial Initiative on Bioenergy Cost-efficient pathway to second generation biofuels Interesting findings in Canada - Pyrolysis gives a high ROI in stand-alone and integrated applications Source: Forest Products Association of Canada UOP

14 Envergent Technologies LLC UOP / Ensyn Joint Venture 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 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 ~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 2 nd Generation Renewable Energy Company Global Reach UOP

15 Lignocellulosic Biomass Processing Options Direct Combustion Heat & Power Fast Pyrolysis Pyrolysis Oil Upgrading Transport Fuels Solid Biomass SynGas Gasification Fischer Tropsch Hydrocracking/ Dewaxing Envergent Route to Energy Cellulosic Ethanol Ethanol UOP

16 Pyrolysis Oil to Energy & Fuels Vision Forest Fiber Biomass Fast Pyrolysis P P Energy Fuels P P Pyrolysis Oil Electricity Production Fuel Oil Substitution Available for Sale Ag Residue Transport Fuels (Gasoline, Jet Diesel) Commercially available in 2010 Phased Commercialization UOP

17 Rapid Thermal Processing (RTP TM ) Technology Pyrolysis Oil 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 Solid Biomass Commercially Proven Patented Technology UOP

18 RTP TM Flow Diagram Minimal net utilities RTP TM is self-sustaining process UOP

19 RTP TM Operating History & Commercial Experience Commercialized in the 1980 s 7 units designed and operated in the US & Canada Continuous process with >90% availability Plant Year Built Operating Capacity (Metric Tonnes Per Day) Location Manitowoc RTP TM Manitowoc, WI, USA Rhinelander RTP TM Rhinelander, WI, USA Rhinelander Chemical # Rhinelander, WI, USA Rhinelander RTP TM Rhinelander, WI, USA Rhinelander Chemical # Rhinelander, WI, USA Petroleum Demo # barrels per day Bakersfield, CA, USA Renfrew RTP TM 1 (Owned and operated by Ensyn) Renfrew, Ontario, Canada Note: design basis for wood based plants assumes feedstocks with 6 wt% moisture content. Significant Commercial Experience UOP

20 UOP FCC Background FCC technology is key process in gasoline production 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 RTP TM UOP FCC FCC Experience Enables Scale-up UOP

21 Feedstock Sources 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 > 1 billion ton per year available in United States alone Cellulosic Feedstocks Widely Available UOP

22 Feed Handling / Preparation Raw Biomass Up to 40 Wt% Moisture Prepared Biomass As Fed 5-6 Wt% Moisture to 0.25 Pyrolysis Oil As Produced Feed Handling RTP Storage 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 inch (3-6 mm) Capacity of unit expressed on bone dry feed basis BDMTPD Zero water content RTP TM is Self-Sustaining Excess Heat Dries Raw Biomass UOP

23 RTP TM Product Yields 400 BDMTPD of Whitewood Hardwood Feed, Wt% Hardwood Whitewood Typical Product Yields, Wt% Dry Feed Pyrolysis Oil By-Product Vapor Char Hardwood Softwood Corn Fiber Yields For Various Feeds Biomass Feedstock Type Hardwood Bark Softwood Bark Typical Pyrolysis Oil Yield, Wt% of Dry Feedstock Bagasse Waste Paper Second Generation Feedstock Flexible With High Yields of Pyrolysis Oil UOP

24 RTP TM Pyrolysis Oil Properties 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 Comparison of Heating Value of Pyrolysis Oil and Typical Fuels Fuel Methanol Pyrolysis Oil Ethanol Light Fuel Oil (#2) MJ / Litre BTU / US Gallon 62,500 71,500 84, ,400 Suitable for Energy Applications UOP

25 Pyrolysis Oil Energy Applications Fuel Burner Heat RTP Unit Gas Turbine Stationary Diesel Engine Optimized UOP Upgrading Technology Electricity CHP Green Gasoline, Green Diesel & Green Jet Replacement of fossil fuel for heat/steam generation Production of green electricity Alternate revenue stream from external sale Future upgrading to transportation fuels Gasification Syngas Fischer- Tropsch Hydrocracking/ Dewaxing Multiple Applications for Pyrolysis Oil, a Renewable Fuel Available Today UOP

26 Pyrolysis Oil: Alternate Revenue Stream $US/US Gallon 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 Comparison of Cost of Selling PyOil vs. Making PyOil ASTM D7544, Standard Specification for Pyrolysis Liquid Biofuel Property Gross Heat of Combustion, MJ/kg Point, o C Pyrolysis Solids Content, wt% Water Content, wt% ph Kinematic Viscosity, 40 C Density, kg/dm 20 C Sulfur Content, wt% Ash Content, wt% Flash Point, o C Value 15 min 2.5 max 30 max report 125 max max 0.25 max 45 min Test Method ASTM D240 ASTM D7544, Annex I ASTM E203 ASTM E70 ASTM D445 ASTM D4052 ASTM 4294 ASTM 482 ASTM D93, Procedure B 0 Pour Point, o C -9 max ASTM D97 Selling PyOil Making PyOil UOP

27 Pyrolysis Oil: Replacement of Fossil Fuels to Generate Heat 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 $US/US Gallon Comparison of Cost of Buying #2 Fuel Oil vs. Making Pyrolysis Oil Buying # 2 Fuel Oil Making PyOil ~ 8 $US Million per Year Savings UOP

28 Burner Data Emission Levels Combustion System WWFB (USA) Fuel* PyOil Particulate (mg/nm 3 ) 0.7 CO (ppm) 44 SO x (ppm) -- NO x (ppm) <50 CANMET (Canada) PyOil HFO LFO MIT (USA) PyOil < LFO < BROCK (Canada) PyOil LFO *HFO heavy fuel oil; LFO light fuel oil UOP

29 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

30 Pyrolysis Oil Performance in Gas Turbine Fuel Properties Ensysn Pyrolysis Oil # 2 Diesel Ethanol Crude Oil Blend Biodiesel Turbo compressor rotor speed, rpm Gas turbine exhaust gas temperature, o C Fuel flow, litre/h Generator electrical power, KW SO 2 normalized emission, ppm NO x normalized emission, ppm Orenda GT2500 Turbine from Magellan Aerospace Corp. Proven Performance in Commercially Available Combined Cycle Gas Turbine UOP

31 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

32 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-up UOP

33 Pyrolysis Oil vs. Fossil Fuel LCA gco 2 eq/mj gco 2 eq/mj Petroleum Crude Oil Comparison of GHG Emissions Cradle to Delivered Energy Hard Coal Natural Gas Energy Extraction GHG Emissions Canadian Oil Sands Crude Oil PyOil from Logging Residues PyOil from Willow Comparison of GHG Emissions Cradle to Delivered Energy, and Burned PyOil from Poplar Life Cycle GHG Emissions through combustion Pyrolysis Oil Production foot print similar to fossil energy alternatives Assumed biomass transport distances 200 km for logging residues 25 km for short rotation forest crops Pyrolysis Oil Life Cycle foot print Greener than other alternatives Carbon neutral combustion emission 70-88% lower GHG emissions SO x emissions similar to Natural Gas 0 Petroleum Fuel Oil Hard Coal Natural Gas PyOil from Logging Residues PyOil from Willow PyOil from Poplar UOP

35 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, Year straight line depreciation included Hardwood Whitewood feed 330 Days per Year Subsidies and Tax Incentives Excluded Tax, SG&A and Interest Excluded Pyrolysis Oil Production Cost, $US/Metric Ton PyOil Produced No. 2 Fuel Oil Substitution Feedstock Cost, $US/Metric Ton, Dry Delivered 100 BDMTPD - Pyrolysis Oil Production Cost, $US/Metric Ton PyOil Produced 200 BDMTPD - Pyrolysis Oil Production Cost, $US/Metric Ton PyOil Produced 400 BDMTPD - Pyrolysis Oil Production Cost, $US/Metric Ton PyOil Produced Cost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil 50 $US/Barrel Crude Spot Cost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil 70 $US/Barrel Crude Spot Cost of Equivalent Amount of No. 2 Fuel Oil (Energy Basis), $US/Metric Ton PyOil 100 $US/Barrel Crude Spot UOP

37 Conclusions Global and European climate targets address the need of renewable energy, 2nd generation biofuels and low-carbon technology RTP TM is commercially proven technology: Seven units designed and operated Reliable operation with 90% on-line availability Designed to maximize pyrolysis oil yield, 70 Wt% based 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

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