U.S. Department of Energy Biomass Program September 11, 2009 Major - - PowerPoint PPT Presentation

U.S. Department of Energy Biomass 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 2030 Fuel 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

Integrated Biorefineries 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 gate

Forecast 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 biofuels distribution infrastructure

Feedstock Systems

Deployment Barriers and Solutions

Basic R&D Technology Development Commercially Viable Demo Permitting & Engineering Proof of Concept Construction Operation

Commissioning

First Commercial Plant

Mechanical completion Attainment of performance criteria Delays in attainment of performance criteria

Operation

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

Development Costs

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 Biorefinery Projects: up to $275 million Up to 10-20 more pilot and or demonstration scale projects 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 Fire Biochemical Municipal Solid Waste (Fulton, MS) Poet Biochemical Corn Stover (Emmetsburg, IA) Lignol Biochemical Wood Residues (CO) Abengoa Biochemical/ Thermo Ag Waste, Switchgrass (Hugoton, KS) NewPage Thermochemical Wood Chips (Wisconsin Rapids, WI) Range Fuels Thermochemical Wood Chips (Soperton, GA)

Key Company Process Feedstock (Location)

Flambeau River Thermochemical Wood Chips (Park Falls, WI) RSE Biochemical Pulp extract (Old Town, ME) Alltech Biochemical Corn Cob (KY) Mascoma Biochemical Wood (Kinross, MI) Verenium Biochemical Bagasse, Energy Cane (Jennings, LA)

Methodology

Topic 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 Reviews External Biennial Peer Review (2009)* Steering Committee

Neal Gutterson Mendel Technologies Jay Keller Sandia National Labs, SC Chair Roger Prince ExxonMobil Liz Marshall World Resources Institute John 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 Budget

Fiscal 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* FY09 FY08 FY07 FY06 FY05 M illio n s

Earmarks Cellulosic Ethanol Reverse Auction Large Scale Biopower Analysis and Sustainability Integration of Biorefinery Technologies Products 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 Biorefinery Technologies Products Development Biochemical R&D Thermochemical R&D Feedstock Infrastructure

Directed Discretionary

$0 $100 $200 $300 $400 $500 $600 $700 $800 ARRA FY10 M illions

Collaborations

Program Partners and Key Stakeholder Relationships

Biomass Program Funding FY2009: $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 Collaboration

Biomass 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 Labs 27% Systems Integration, Analysis & Evaluation 11% Industry 60% University 2%

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 1 2 3 4 5

Minimum Conversion Processing Cost of Ethanol Production, $/gallon gasoline (2007$)

Opearting Costs Capital Costs Prehydrolysis/ treatment Enzymes Saccharification & Fermentation Distillation & Solids Recovery Balance of Plant

Biochemical Conversion/Enzymatic Hydrolysis

Cost 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 2009 Proj 2012 Proj 2012 Proj 2009 2012

Minimum Ethanol Selling Price ($/gge)

$3.58 $2.22 Feedstock Contribution ($/gge) $1.12 $0.86 Conversion Contribution ($/gge) $2.42 $1.37 Yield (Gallon/dry ton) 78% 90% Technical Projections Feedstock Feedstock Cost ($/dry ton) $57.50 $50.90 Pretreatment Solids Loading (wt%) 30% 30% Xylan to Xylose 80% 90% Xylan to Degradation Products 8% 5% Ammonia Loading (mL of 30wt% per L hydrolyzate) 50 25% Hydrolyzate solid-liquid separation yes no Xylose Sugar Loss 2% 1% Glucose Sugar Loss 1% 0% Enzymes Enzyme Contribution ($/gal EtOH) $0.52 $0.18 Saccharification & Fermentation Toal Solids Loading (wt%) 20% 20% Combined Saccharification & Fermentation Time (d) 7 3 Corn 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 Residue Processing Product Recovery Conditioning Enzyme Production Co- fermentation Of C5 & C6 Sugars Enzymatic Hydrolysis Ethanol By- Products Hybrid Saccharification & Fermentation - HSF Feed Processing & Handling Reduction of sugar loss 13% (2005) to 1% (2012) Xylan to Xylose76% (2005) to 85% (2012) Minor sugars fermented (40%)

Thermochemical Conversion/Gasification

Cost of ethanol production, $/gallon gasoline

$(0.50) $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00

2005 State of Technology 2007 State of Technology 2009 Projection 2012 Projection 2012 Projection M in im u m C o n v e rs io n P ro c e s s in g C o s t o f E t h a n o l, $ / g a llo n g a s o lin e (2 0 0 7 $ s )

Opearting Costs Capital Costs Feed Handling and Drying Gasification SynGas Cleanup & Conditioning Fuels Synthesis Product Recovery and Purification 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 Selling Price $2.38 in 2012.

$1.28

2009 2012

Minimum Ethanol Selling Price ($/gge)

$3.42 $2.38 Conversion Contribution ($/gge) $1.98 $1.30 Ethanol Yield (gal EtOH/dry ton) 61.5 71.1 Mixed Alcohol Yield 72.5 83.7 Technical Projections Feedstock Feedstock Cost ($/dry ton) $58.20 $50.70 Gasification Raw Syngas Yield (lb/lb dry feed) 0.82 0.82 Raw 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 CH4 Conversion (%) 50% 80% TR Benzene Conversion (%) 90% 99% TR Heavy HC/Tar Conversion (%) 97% 99% Sulfur Level in Clean Gas (as H2S) (ppmv) 50 50 Fuels Synthesis Pressure (psia) 1500 1500 Single 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

Feed Processing & Handling Heat & Power Gasification Indirect Gas Cleanup High Temp Separation Gas Conditioning Collection/ Fractionation Fuel Synthesis Upgrading Benzene Conversion 70% (2005) to 99% (2012) CO Conversion 40% (2005) to 50% (2012) Products

Major Technology Platform

Thermochemical Conversion/Pyrolysis

0.4 0.8 1.2 1.6

2017 Projection

Minimum Conversion Processing Cost

• f Fuel $/gallon ethanol (2007$s)

Capital Costs Operating Costs Natural Gas Catalysts and Chemicals Utilities 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% gasoline) 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

Feed Processing & Handling Heat & Power Pyrolysis Bio-Oil Stabilization Bio-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

• il 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 &

• ther environmental services; passage of RPS

Policy: partial implementation of BCAP, lack

• f monetization of benefits, no Renewable

Portfolio Standard, etc. Fix loan guarantee program to include biofuels Pioneer Plants: no process guarantees, financing uncertainty, no fixed price agreements, etc.

DOE Solution Barriers

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

• May 5, 2009 Presidential Memorandum – Biomass Interagency 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 Initiatives

Biomass R&D and Demonstration Projects - $800 Million in Funding

$480M Pilot and Demonstration-Scale Biorefineries Validate technologies for integrated production of advanced biofuels, 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 project Up to $50M for each demonstration-scale project $176.5M Commercial-Scale Biorefineries Increase in funding for prior awards; two or more projects Expedite 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 Research Optimize flex-fuel vehicles operating on E85 Evaluate impacts of intermediate blends on conventional vehicles Upgrade existing infrastructure for compatibility with E85 $13.5M NREL Integrated Biorefinery Research Facility: expand the pretreatment capacity