Sustainability and Forest Biorefinery II: Bringing bio‐based products to market Overview of Biorefinery Technologies and Challenges for the Pulp and Paper Industry Steve Rutherford American Process Inc. Pulp and Paper Industry Status Paper industry mantra during the 20th century: SCALE – PRODUCTIVITY – FOCUS … has been halted by energy cost, market contraction Could reinvent with vision for the 21st century: INNOVATION – BIOPRODUCTS – FLEXIBILITY …to reposition itself by technological breakthroughs and matching the market needs Questions for the Industry • • • • • • • • • • Should pulp and paper production remain? How sustainable is the market for bioproducts? What products provide the best return? How can we quantify the market? Who are potential competitors or substitutes? How will the USA and EU energy and environmental policies be enforced? Will subsidies remain? What will happen to the emerging bioproducts market if oil falls below $80 per barrel? What technologies are available for specific sites? How to align distribution channels for multiple products? Biomass Value Chain – A Missing Link? Billion of Dollars per year (2002) Value of Production by U.S. Manufacturing Section and Growth Source: U.S. Bureau of the Census, Annual Survey of Manufacturers, Statistics for Industry Groups and Industries, 2001 and 2004. Megatrends Leading to Bioproducts • Population Growth – Global spread of wealth and consumption • Limited Arable Land – Displacement of cotton and other crops • Peak Oil – Oil based feedstock substitution • New Requirements for Efficiency – Super strong lightweight materials Why Pulp Mill Biorefinery? • The Pulp and Paper Industry is the largest handler of forest residues • The mills have highly skilled technical personnel, necessary for running biorefineries • Co‐production of pulp (paper) with proper process integration reduces per unit production costs • Incremental Investments will not make aging mills competitive in the maturing markets. • Existing infrastructure and permits reduces the total capital cost and time to implementation • Paper products still remains the largest and most value added commodity product in the wood based biorefinery A pulp mill is the natural home for a forest biorefinery 8 Energy Independence and Security Act of 2007 (H.R.6), signed 12/19/07 SEC. 202. RENEWABLE FUEL STANDARD: e) Waivers‐ Whenever the Administrator reduces the minimum cellulosic biofuel volume under this subparagraph, the Administrator shall make available for sale cellulosic biofuel credits at the higher of $0.25 per gallon or the amount by which $3.00 per gallon exceeds the average wholesale price of a gallon of gasoline in the United States. Such amounts shall be adjusted for inflation by the Administrator for years after 2008 SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS c) Authorization of Appropriations‐ There is authorized to be appropriated to carry out this section $500,000,000 for the period of fiscal years 2008 through 2015. Cellulosic ethanol mandate Year million gpy 2010 100 2011 250 2012 500 2013 1,000 2014 1,750 2015 3,000 2016 4,250 2017 5,500 2018 7,000 2019 8,500 2020 10,500 2021 13,500 2022 16,000 Break‐even of cellulose vs. ethanol Assumptions: HWD upper end of ethanol yield ~90 USG/BDT Market pulp yield is 0.42 BDT cellulose/BDT wood Traditional Pulp Mill Balance PURCHASED ENERGY PULPWOOD PULP MILL PULP BARK HEAT RECOVERY LOSSES Co‐Production in the Pulp Mill Biorefinery PURCHASED ENERGY Biofuel PULPWOOD BARK PULP MILL BASED BIOREFINERY PULP RESIDUALS Bioproduct HEAT RECOVERY LOSSES Process Steps Unit operations and process integration Feedstock Preparation Transformation Process Final Product Converting Process Steps Distillation Challenges – energy use – feed concentration Membranes Challenges – correct choice – fouling – robustness – selectivity Pervaporation – promising – still lab scale Traditional pulp and paper equipment How to best redeploy? Emerging Products ‐ Cellulose Emerging Products ‐ Hemicelluloses Thermal Processes Chemical Processes Biochemical Processes Emerging Products ‐ Lignin Refinery Feedstock Transportation Industry Consumer Products Challenges for New Technologies • • • • • • • • Optimal use of raw materials High purity of products Energy efficiency Chemical/material selection Waste minimization Environmental impact Reasonable capital cost Development of markets Product Yield • Maximum theoretical yield is defined by the energy content and chemical composition of wood • Depending on the final product, either energy or mass recovery is more important • The practical yield depends on process efficiency and integration Energy and Mass Yield from Wood Technology Practical Yield / BDT Actual Yield‡ / BDT Theoretical Yield * / Product or equivalent BDT Value Unit %Mass % Energy Value Unit Gasification Natural Gas 16.8 mcf 20 56 9.4 mcf Pyrolysis Crude Oil 145 gals 23 44 63 gals Acid Hydrolysis Ethanol 115 gals 29 43 84 gals Enzyme Hydrolysis Ethanol 115 gals 24 36 70 gals Kraft Pulping Pulp 0.65 tons 46 37 0.46 tons Sulfite Pulping Pulp, lignin, EtOH 0.85 tons 75 80 0.75 tons Biomass Power Plant Electricity 4.92 MWh NA 28 1.37 MWh *Based complete conversion from applicable feedstock fraction (45% celluloses, 20% hemicelluloses, 30% lignin, 5% others) ‡Assumes 50% moisture in feedstock Possible schemes of biorefineries in pulp and paper mills • Co‐production with paper – Small scale biorefinery products • Waste streams as biorefinery feedstock • Pre‐extraction • Black liquor lignin extraction – Medium to large scale biorefinery products • • • • Black liquor gasification Waste biomass gasification Cellulose hydrolysis to biofuels Retrofit acid based pulping + hemicelluloses hydrolysis Possible schemes of biorefineries in pulp and paper mills • Production of non‐paper products – Biomass hydrolysis • Enzymes, acid, acid + enzyme – Biomass gasification • Gasification, pyrolysis • Optimum route process will be different for each location Considerations for optimum process • Existing paper / pulp products market and forecast – strategic long term planning – e.g. newsprint / fluff / printing papers • Fiber supply – Softwood, hardwood, seasonal crops, low cost waste biomass • Capital availability – New alliances • Risk tolerance – Technology development status – Few if any technology warrantees • Energy sources – Electrical export markets Optimum process design must consider all factors NOT just technology choice AND Use process integration to maximize inherent fit to existing infrastructure AND Maximize flexibility while reducing capital risk Technology Considerations • No off‐the‐shelf solution • No process warranties for most technologies • All solutions must be custom designed through the use of true process design and process integration Winning Technologies • • • • • Create new products and markets Displace existing processes Attract and reinvest capital Are competitive and sustainable Take advantage of product mix flexibility 2010 ‐ Decision Time! 2020 2010 2000 OR? 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