3rd Transatlantic Market Conference Growth & Security: Energy and Energy Transportation Status and future developments of biofuels in Europe and the

Transcription

1 3rd Transatlantic Market Conference Growth & Security: Energy and Energy Transportation Status and future developments of biofuels in Europe and the US Washington, D.C., May 2007 Dr.-Ing. Ludolf Plass, Lurgi AG

2 The Blue Planet at Night Distribution of Energy Consumption 2

3 Global Challenge??? Dr. Heinrich/UOP R&D Refining Panel / Increase in passenger car fuel consumption 2004: India: 10% China: 15% Indonesia: 3 % EU: 1,2% USA: 0% Group Research Powertrain VOLKSWAGEN AG 3

4 Fulfilling Mankind's Needs A Challenge for the Technology How to fulfill mankind's needs in future? How to overcome the imbalance between industrialized and developing countries? 4

5 Energy security: Few major concerns World population rises by people / day 200 Mio. new energy consumers per year By 2015: 70% of world daily oil needs and 80% of oil trade only from three areas: - West Africa - Russia - Middle East (Saudi Arabia, Iran, Iraq) Oil resources held by state owned companies hinder free flowing investments to asset rich producing and exporting areas: ~ 0,56 trillion $ / year investment required (IEA) ~ 20% more than in 1990 s 5

6 Energy Security : Need for partnership Strong inpendences between - public policy decision making - private sector action Energy security / energy policy must be international Typical examples - Baku-Tbilisi-Ceyhan Pipeline (private sector with state owned companies / governments) - decarbonised fuels (supportive regulatory and fiscal systems by governments) Further developments - clear targets through public policy - externalities like carbon emissions priced Next 20 years: fundamental change in energy business 6

7 Development of Energy Consumption Energy consumption will approx. double between 2000 and 2050 In 30 years, renewable energy will be equivalent to the amount of energy from fossil fuels today 7

8 Long term oil demand / supply outlook Developing countries show the strongest demand increase Only OPEC can increase supplies substantially Area Demand Supply Million b/d OECD 49,8 52,9 20,5 19,5 Developing countries 28,7 52,9 16,1 19,9 Transition countries 4,7 5,7 11,7 16,5 Total no OPEC 83,2 113,1 50,1 58,9 OPEC not counted 33,1 54, World 83,2 113,1 83,2 113,1 Source: OPEC 8

9 Renewable resources: High potential worldwide..., but development is necessary Energy from renewable resources can be increased from ~10% today to ~30% by 2050 Mrd. t SKE 2, North America ,0 W.Europe E.Europe Near East & 0,9 410 North Africa CIS & 3, Baltic States East Asia 3, Japan Ameri , South Asia ,4 Caribean & Oceania harvesting residues Latin America sub-saharan America World energy consumption 2005 ~ 17 Bn t tce/biomass ~ 10% World energy consumption 2050 ~ 27 Bn t tce/biomass ~ 30% Source: Utrecht University Faaji

10 Energy security, what can be done No go Military means no option Isolation means no option Self sufficiency means no option Go Develop maximum diversity of supply / infrastructure Oil upstream investments have risen by >50% $ 50 bn/a Investment required Global gas market emerging: more pipelines / LNG Raise recovery rates of existing oil / gas fields Develop next generation of supplies Alternative energies, that are low in carbon 10

11 Alternative Energies Advance Alternative energies will have a major effect on world energy demand on medium and long term But requirements are: Development of CDM (Clean Development Mechanism) CO2 emissions properly costed CO2 trading mechanism developed worldwide Development of technologies Carbon capture sequestration (CCS) CO2-utilization for enhanced oil recovery Wind / solar power / hydrogen / combined cycle gas turbines CO2 recycle: Utilization of Alges, Methanol from sequested CO2 and renewable Hydrogen Synthetic fuels from biomass 11

12 Development of Fuel Mix in Europe: Vision 2030 Less than 40 percent of fuel will be based on oil Hydrogen regenerativ ~4% SynFuel based on natural gas ~35% Oil based < 10 ppm Sulfur ~38% Oil based <500 ppm Sulfur SunFuel based on Biomass Others (Biodiesel, Bioethanol) ~23% ~ 60 Mio. tpy today Years Source: VW Fuel Strategy Vision total 2030: fuel-consumption only - 38% in based 2030 on ~ 250 oil Mio. tpy 12

13 Lurgi: Market leader for Biodiesel 66 Biodiesel plants on order 20 Biodiesel plants in operation 13

14 Lurgi: Strong position in Bioethanol Panda Hereford, USA tpa Ethanol from Corn, Power/Steam Production from cow manure 18 Bioethanol plants on order 12 Bioethanol plants in operation 14

15 Fuel Production Technologies Conventional fuels Crude Oil Refinery Upgrading Convential Fuels Synfuels Nat. Gas Coal Biomass Gasification FT Methanol Upgrading Upgrading FT-Synfuel Mt-Synfuel Methanol real Synfuels DME DME Synfuels equivalents Methanation SNG 15

16 2 nd Generation Biofuels : Much higher Biomass productivity Biofuels a comparison Biofuels 2 nd Generation Complet eplants Liter diesel equivalent per year and hectare BTL-Synfuel 4,000 l Grain sugar Ethanol Biofuels 1 st Generation ,200 l Biodiesel Plant oil l Plant oil l 16

17 17

18 Second Generation Biofuels Fuel options of syngas and hydrogen Based on Biomass gasification: Hydrogen Fuel Cells MTBE Gasoline Diesel CO + H 2 Methanol DME Gasoline CH 4 (SNG) Medium BTU gas I. Wender, Fuel Proc. Techn. 48 (1996)

19 Synfuels from Biomass Lurgi s BTL Technology is based on industrially proven process steps Biomass Fast Fast Pyrolysis Methanol High High Temp. Temp. Gasification Gasification MtSynfuels MtSynfuels Diesel Gasoline LPG Lurgi LR-Coker Lurgi MPG Gasification Lurgi Methanol Technolgy Lurgi MTP Lurgi COD (South Africa) 19

20 Pyrolysis Process of Lurgi / FZK Straw, Hay a.o. M Shredder Cold, shredded straw hot sand ca. 500 Heizer Heater Sandkreislauf Cycle Pyrolysis gas Cooler Pyrolysis Oil Slurry Coke Pyrolysis Coke The Lurgi flash-coker M Double Screw Reactor Source: FZK 20

21 Slurry mixed with Pyrolysis coke Joint grinding of pyrolysis oil and coke give pump able/ storable slurry Energy concentration from biomass to slurry by factor 13 ca. 80% of the energy content of the biomass is contained in the slurry 21

22 MPG Gasifier 22

23 Lurgi s MtSynfuels Route Hydrocarbon Recycle Kero/Diesel Hydrocarbon Recycle Methanol Olefin Production Olefin Oligomerisation Product separation + MD Hydrogenation Gasoline Water recycle H 2 from Methanol synthesis LPG Process water COD Plant South Africa 23

24 Forschungszentrum Karlsruhe Lignocellulose 100 % Energy- and mass balance ~ 7 % ~ 1 % ~ 1 % Schnellpyrolyse Fast pyrolysis ~ 3 % Kondensat/Koks Condensate/char Slurry ~ 90 % Flugstrom- Entrained Druckvergasung flow gasification ~ 3 % Synthese-Rohgas Synthesis-raw Reaktionswärme Heat of reaction Synthese-Reingas Synthesis-clean ~ 76 % ~ 13 % FT- Synthesis Synthese FTS - Heat Reaktionswärme of reaction 5-7 t Wood or Straw with 15 wt.% H 2 O 5.4 t Condensate/char - slurry plus ~ 1,8 t O t FTS-raw products Heat losses: Sum ~ 6 % ~ 1 % ~ 18 % Syntheseprodukte Synthesis products ~ 51 % nicht Not umgesetztes converted Syngas ~ 6 % Trennung Separation ~ 40 % C 5+ FTS - Produkte Synfuel, waxes, olefines C 5- - Produkte Products ~ 5 % El. Power and HT steam: ~ 42 % ~ 5 % valuable C 5 -products C 5 1 t Synthetic fuel Co-production of: chemicals, steam, electricity 24

25 The slurry gasification concept Energy density [GJ/m 3 ] Distributed biomass Transportation Radius Straw: km Slurry: 20 Regional intermediate fuel production regionale Pyrolyse- Anlagen Diesel: 36 Zentraler Central syngas and fuel production 250 km 25

26 Zentralized / dezentralized Biofuels concept Forschungszentrum Karlsruhe in der Helmholtz-Gemeinschaft Synfuel potential Germany Dezentralized pyrolysis Zentralized Bio-Synfuels production Approx. 5 Mio. tpy Synfuels from excess straw and wood waste 26

27 Road Map time to Market Lurgi s BTL Fast pyrolysis : Joint Development with FZK *) Start up Demo plant 6 /2007 First contract expected 12/2007 High temperature : Gasification : Development project in planning. Start ~ September 2007 First contract expected 12/2009 MT Synfuels : Development project with Volkswagen / Südchemie in planning, project start ~ September 2007 First contract expected 12/2009 *) FZK: Forschungszentrum Karlsruhe 27

28 Combi Biofuel Plants for the Future 1. Plant 3. Plant 2. Plant 130 t/h Biomass ca. 70 kha Biomass 30 t/h approx. 5 decentral LR-Pyrolysis-Plants Biomass 40 t/h ca. 70 kha 32 t/h Saat Biodiesel- Production 6 t/h steam Methanol Bio syncurde Gasification 210 t/h MtSynfuel- Production Waste 14 t/h 35 t/h steam 41 t/h Grain Bioethanol- Production 100 kt/a Biodiesel 160 kt/a Diesel 40 kt/a Gasoline 100 kt/a Bioethanol 28

29 Montana: Coal/ Biomass to SNG/ Synfuels Phase I Coal Gasification Gas cleaning Methanation SNG* to pipeline Phase II CO2 to Enhanced Oil Recovery Coal Extension Gasification Extension Gas cleaning Mt-Synfuels Synfuels to distribution Phase III Biomass Pyrolysis Bio-Syncrude Gasification Gas cleaning Mt-Synfuels Synfuels to distribution 29 *SNG= Substitute Natural Gas

30 BTL is the winning option for the future 30

31 Summary II The Development of the 2 nd Generation Synfuels based on Coals / Biomass / Natural Gas is the Winning Option in Future - The spectrum of Synfuels will be broader in future GTL / CTL plants will be large scale (> bpd) and based on cheap coal / natural gas Lurgi owns the complete technology chain BTL plants will typically be in the range of to bpd = 0,2 1,0 tpy Lurgi s strategic goal is to own the complete technology chain Biomass can cover 30%+ of the primary energy demand, but should primarily be used as Carbon Source Biomass is the Key Alternative for Oil, Gas and Coal to reduce CO2 in transport sector Biofuels based on Biomass Need : - Demonstration of technology chain - Sustainable Support by Legislation 31

32 Back up s. the following pages 32

33 Forschungszentrum Karlsruhe in der Helmholtz-Gemeinschaft Prozentuale Erzeugungskosten für BioSynFuel 32 Überschussstroh Restholz Pyrolyseanlagen (20 M ) Kapazität ~ 0,2 Mt/a lufttrockenes Stroh Slurry Transport zentrale Vergasungsanlage (500 M ) Synfuel-Kapazität ~ 1 Mt/a 8 Slurrytransport 5 Sauerstoff Vergasung und FT Synthese 12 Strohtransport Schnellyrolyse Personal Grobe Kostenabschätzung: Diesel aus Öl ~ 0,4 /kg FT-Biosynfuel ~ 0,9 /kg Teuerer auf Grund von: hohem spezifischen Durchsatz kleineren Anlagen festem Einsatzmaterial 33

34 MtSynfuels Pilotplant 34

35 Demonstration of FT Synthesis 35

36 Forschungszentrum Karlsruhe Sasol, South Africa ca. 6 Mio. t/a Synfuels from coal: Fischer-Tropschsynthesis n CO + 2 n H 2 Cat., 200 C 30 bar (-CH 2 -) + n H 2 O Methanol synthesis Titan, Trinidad ca. 8 Mio. t/a 36

37 Forschungszentrum Karlsruhe in der Helmholtz-Gemeinschaft Prozentuale Erzeugungskosten für BioSynFuel 32 Überschussstroh Restholz Pyrolyseanlagen (20 M ) Kapazität ~ 0,2 Mt/a lufttrockenes Stroh Slurry Transport zentrale Vergasungsanlage (500 M ) Synfuel-Kapazität ~ 1 Mt/a 8 Slurrytransport 5 Sauerstoff Vergasung und FT Synthese 12 Strohtransport Schnellyrolyse Personal Grobe Kostenabschätzung: Diesel aus Öl ~ 0,4 /kg FT-Biosynfuel ~ 0,9 /kg Teuerer auf Grund von: hohem spezifischen Durchsatz kleineren Anlagen festem Einsatzmaterial 37

38 EU Biofuel Market when meeting the EU Directive EU 15 States; all notes in 1000 t, Basis Fuel Consumption 1998 References: EU-Commision (KOM (2001) 547 fin.) 38

39 Karanja Coconut Jatropha Biodiesel-Feedstock Lurgi has industrial experience with all Feedstock sources 39 Baumwolle Palmöl Soja Palmolein Palmkern Altfett Sonnenblume Raps Rizinusöl

40 Gasification HP POX - Freiberg Demonstration plant for production of Syngas from Natural Gas, Liquid Hydrocarbons/Slurries at pressures up to 100 bar sponsored by BMWA, SMWK, mg technologies 40

41 Biomass from agricultural waste Forschungszentrum Karlsruhe in der Helmholtz-Gemeinschaft Aufkommen biogener Reststoffe und Abfälle Deutschland 2002: rd. 70 Mio. Mg ots Baden-Württemberg 2002: rd. 8 Mio. Mg ots Waldrestholz 22% Industrierestholz 10% Waldrestholz 31% Industrierestholz 11% Altholz 9% Altholz 10% Bio-/Grünabfall 6% Bio- /Grünabfall 8% Hausmüll (Rest-) 13% Hausmüll (Rest-) 11% Stroh (Überschuss-) 21% Gülle 15% Klärschlamm (kommunal, roh) 4% Stroh (Überschuss-) 12% Gülle 12% Klärschlamm (kommunal, roh) 4% ITAS LL 41

42 Key factors for BTL-success 42

43 GtL production capacity woldwide capacity [1000 b/d] CtL: Sasol 150,000 b/d existing China 200,000 b/d under construction 2,000,000 b/d under discussion under discussion under development under construction existing bbl/d = 4.5 mt/year source: various industrial publications year 43

44 CO 2 reduction potential and area demand of biofuels CO 2 reduction potential % Share of biofuels: 15 mtoe (5.75% total fuel share EU 25) SunFuel (full plant) biodiesel ethanol conventional area demand (mill. ha) 0 CO 2 reduction potential area demand 0 44

45 Biomass potential in EU 25 in 2005 Biomass potential in EU 25 in 2005 RENEW_EU-25 geography Overall potential Maximum: 4380 PJ (102 mtoe) Realistic: 3445 PJ (82 mtoe) UK and Ireland NORTH EAST (CEE-8) WEST Alpine region SOUTH source: EC BREC, Renew, 2004 Group Research Powertrain 45 VOLKSWAGEN AG

46 Biomass potential for BtL fuel 2004 EU 15 EU 25 EU 28 Land coverage [mill. ha] Arable land [mill. ha] Forest area [mill. ha] Permanent grassland [mill. ha] Inhabitants [million] Setaside land (17% of arable land), approx [mill. ha] Setaside land (9 % of arable land), 2004 [mill. ha] 9.0 Agricultural residues* (straw, maize res., perm. crops) [mtoe] 21.6 Forestry residues + wood industry byproducts* [mtoe] 25.5 Energy crops* [mtoe] 35.0 Total potential for SunDiesel from 9 mill. ha (today) [mtoe] 82.0 today Source: * EC BREC, RENEW, 2004 European Centre Baltic Renewable Energy Centre: potential in 2040 = 80 mill. ha 46

47 Comparison of Biofuels 47

48 CO2 Reduction potential in power stations worldwide Power stations account for > 40% of CO2 emissions Power demand grows ~ 2,5 % p.a. worldwide China starts a power plant every 3 days! Less than half the generating capacity for need in 2030 has been built so far (investment 9 trillion $) Unique opportunity - place new capacities to reduce dependence and emissions 48

49 The international framework in agencies IEA : International Energy Agency Founded in 1973 to oversee energy security Must match market conditions of today, not 1973! Include new significant consumers - China -India - OPEC countries - Russia Supplies must be managed more effectively 49

50 Biomass potentials estimation for the EU 28 member states in 2040 Energy [mtoe/a] agri 350 waste Boundary conditions: energy plants woody residues biomass potential traffic share source: EC Brec, Renew, % of the arable land for energy farming (no progress in yield/ha) - 50% of biomass for transportation - Efficiency of production η = 50% - FT- diesel share 80%, kerosene + naphta 20% fuel share substitution 2020 total diesel Fuel share [%] 50