Forest Biomaterials NC STATE UNIVERSITY Outline 1. Organization: CNR, FB (PSE & WP) 2. Where we were? 3. Where we are headed? 1 College of Natural Resources - PSE & WP College of Natural Resources Department of Forestry Dept. of Parks and Recreation and Tourism Management Department of Forest Biomaterials Paper Science and Engineering (PSE) Sustainable Materials and Technology (SMT) Department Overview Department of Forest Biomaterials Biomass Properties Wood Chemistry Biomaterials Paper Science and Engineering Chemical Processing Mechanical Processing Sustainable Materials and Technology Extension and Engagement SMT Sustainable Materials and Technology http://natural-resources.ncsu.edu/wps/wp ü 4 Teaching/Research Faculty ü 3 Extension Faculty (open position) ü 1 Research Faculty ü Wood Products, Chemistry ü 45 Undergraduate Students ü 12 Graduate Students PSE Paper Science and Engineering http://natural-resources.ncsu.edu/wps/pp ü 12 Faculty- 4 Chem Eng., 4 Chemists, 4 PSE ü 5 have more than 5 yrs. of industry experience ü Exec in Residence, Adjunct ü 20 Research Associates ü 165 Undergrad Students Dual Chem Eng degree is unique in the US Options in Chemistry, Textiles, Environmental Science, Business. ü 25 Graduate Students ü 135 Endowed Scholarships Our Products… PSE Paper Science and Engineering http://natural-resources.ncsu.edu/wps/pp Total Package ü ABET Accredited degree ü Dual degree with Chemical Engineering very important, 9 semesters (different Colleges) ü Pulp and Paper Foundation ü 135 endowments, $150k annual contributions ü All students above 3.0 on scholarship ü Internships/Co-ops ü Strong emphasis on professional development ü Tremendous salaries, $65-67k PSE Paper Science and Engineering http://natural-resources.ncsu.edu/wps/pp Total Package – Slow changes to successful program ü New classes in Process Analysis, Life Cycle Analysis, Green Chemistry ü Careful integration of specific technology into the manufacturing system, ‘keep score’ with dollars or carbon ü Jobs with the current industry, skills for the future industry PSE Paper Science and Engineering http://natural-resources.ncsu.edu/wps/pp Changes in Landscape ü 12 PPERA programs – all growing, many in Chem. Eng. Departments, moving faculty positions away from PSE ü Consolidation of industry, new jobs but no new mills ü Only 25-33% of new hires are PSE, but PSE graduates stay longer ü Value proposition for companies ü Value proposition for land owners, heat/power, fuels, paper, wood products, specialty products SMT Sustainable Materials and Technology http://natural-resources.ncsu.edu/wps/wp ü Significant changes to curriculum and ‘sell’ for students (WP UG programs at MSU, SUNY, PSU all closed or merged into other Dept.) ü Capital for new manufacturing infrastructure is a challenge ü Entrepreneurship, innovation, value-added (buy local) ü Voluntary branding programs an opportunity, SFI/ FSC, LEED, EDP, Organic Food FB Forest Biomaterials Research Follows Funding ü USFS, industry funding has declined significantly! ü New research focus on energy, liquid fuels, integrated systems, biomaterials ü Systems integration includes finance, LCA ü Federal funding dominates, but with industry connections 40 companies in 5 different consortia, $3 mil ü Partnerships with other Universities ü Eastman partnership, $10mil/5yrs, $12 bil., 15% of sales in buildings and construction FB Forest Biomaterials FB Forest Biomaterials FB Forest Biomaterials Research Follows Funding FB Forest Biomaterials ü Who are the Universities’ ‘customers’? ü Students are our ‘products’; employers and funders are primary ‘customers’ ü Differences in campus structures and histories limit replication ü Models for successful recruiting of students will vary between Universities, on campus transfer, HS, community colleges Forests are a great framework for sustainability discussion FB Thoughts on the Future ü Need to be candid on economics; current/future, risks for new ventures ü Willingness to invest $300-500 mil. on a subsidized ‘product’ ü Growth rates, ownership patterns and infrastructure ü Jobs and economic growth at the local level ü Ecosystem services is a developing area, important but who is really willing to pay? (water) FB Opportunities for improvement Summary ü Good progress and response to changes in industry ü Maintain quality of students ü Continue to grow programs to match ‘demand’ ü Need to expand appeal to mirror the states’ population, women, minorities, first to college FB Questions? WOOD PRODUCTS >> SUSTAINABLE MATERIALS & TECHNOLOGY BACKGROUND In 2009 changed the name of the Department of Wood & Paper Science to Forest Biomaterials In the Fall of 2013 changed the name of Wood Products Program to Sustainable Materials & Technology BACKGROUND In addition to the name change all course were modified and additional courses were added to reflect the new sustainable nature of the program ** RE-STRUCTURING OF EXISTING CLASSES Wood Anatomy and Properties >> Structural Properties of Sustainable Materials RE-STRUCTURING OF EXISTING CLASSES Wood Chemistry >> Chemistry of Sustainable Materials Wood Processing >> Processing of Biomaterials RE-STRUCTURING OF EXISTING CLASSES **Sustainable Composites and Biopolymers **Significant modifications NEW COURSES Sustainable Materials for Green Housing Industrial Ecology Intro to LCA NEW COURSES Capstone in Sustainable Materials & Technology More Undergraduate Research RECRUITING EFFORTS ON CAMPUS First Year College **First Year Engineers Community Colleges High Schools (lower grades) RECRUITING EFFORTS RESULTS in 2013 High School CC On Campus 2012 2013 5 0 8 1(2) 2 15 BioChoice™ Lignin: the Launch of a New Bio-­‐ Based Product Pla:orm Rick Mullen VP, Market Development & Analysis Domtar CorporaGon Michigan Biomaterials Conference Traverse City, MI October 3, 2013 About Domtar Primarily pulp and paper with growth in personal care and consumer products “The Sustainable Paper Company”; EarthChoice™ paper brands, 15 years of FSC certified grades, partnerships with WWF, Rainforest Alliance, others. Fortune 500 S&P 400 Mid Cap Russell 1000 Index Index Listing More than 9,000 employees worldwide. Listed on NYSE and TSX. Greater than $5 Billion annual sales, approximately $1 Billion EBITDA Primary manufacturing sites in Canada and the U.S. Domtar’s Chemical-­‐Pulp Manufacturing System (12 sites) Dryden ON Kamloops BC Espanola ON Rothschild WI Nekoosa WI Hawesville KY Windsor QC Johnsonburg PA Plymouth NC Kingsport TN Ashdown AR Market pulp mill Integrated pulp & paper mill Marlboro SC Domtar’s Fleet of Pulp Mills (or Biorefineries) Operational supply chain for procurement and conversion of more than 20 million tons per year of woody biomass 8 million tons per year of biomass processed in boilers and co-­‐generation turbine systems Over 500 Megawatt hours of power generation Process over 6 million tons cellulose, 2 million tons lignin, 1.5 million tons hemicellulose and 15,000 tons extracted wood chemicals per year. Over 4.5 million tons of bleached pulp fiber per year in both market pulp and integrated paper facilities (high volume and specialty grades) Innovation is a Core Value at Domtar Our vision is to be a leader in fiber-based innovation We will partner with best-in-class collaborators to develop new fiber-based products and markets. Seek to capitalize on our existing supply chain, infrastructure, and the unique capabilities and opportunities they offer. Create a portfolio of different products short-, intermediate-, and long-term initiatives both tactical and strategic elements. Several “small” bets; recognizing likelihood of delays and some failures. Domtar Bio-Refinery Program: Three Major Collaborations Announced Catalytic Fast Pyrolysis Dryden, Ontario • Bio-fuels/bio-chemicals from available, low value wood streams • With support from CRIBE Three major initiatives announced. Several others in pipeline. Numerous smaller, application-type collaborations also in progress. Nano-crystalline Cellulose (NCC) Windsor, Quebec • First scale plant for manufacture of NCC • Market and applications development. • In partnership with FP Innovations, and supported by NRCAN and Quebec Provincial Government. LignoBoost™ Technology Plymouth, North Carolina De-bottleneck mill, increase production Start with Lignin as a bio-fuel for internal and external applications Use as a platform for new product and applications development Lignin – a new family of material? With support from USDA-NIFA BRDI program Introduction: BioChoice™ Lignin BioChoice™ Lignin is Domtar’s newest pulp mill by-product offering. A low ash, kraft lignin isolated from pulp mill black liquor. First grade is produced in Plymouth, NC mill (Southern Pine) using Metso’s Lignoboost™ process. Long term aspiration: multiple grades and mills; different wood sources; modified or upgraded lignin grades. The largest, and most advanced of several new bio-based product development initiatives. A platform for building a new, bio-based product portfolio. Why Kraft Lignin, the Lignoboost™ Process, and the Plymouth, NC Mill? Kraft Lignin in Black Liquor: Domtar already produces over 2 million tpy of black liquor, all presently used for internal fuel. Processes and chemistry part of our core business and competencies. 25 to 50% of this can (potentially/practically) be isolated and made available for external sales. Industry wide, 20x to 30x these volumes are available - practical market drivers and critical mass exist. “Relatively” easy access and low capex and opex. Most of the work already accomplished in pulping. Most importantly, the present gap between internal fuel value and anticipated external sales values (less capex/opex) suggest acceptable margins can be achieved if and when markets are developed. Potential volumes/revenues from isolated lignin could make a significant contribution to core business. Potential for even greater contribution exists through modified or upgraded lignin. Kraft Lignin: The Market Development Dilemma Supply Assurance Requirements: The development of suitable applications and markets requires a sufficiently large/reliable/ consistent supply of quality product. + Take-Away Assurance Requirements: In order to produce such a supply, major capital investment and risk required. Furthermore, an economic disposition for this supply is needed during the interim market development period. + Unfavorable Risk/Reward and Market Conditions: Historical spread between lignin internal fuel value and external nets did not warrant capital investment/risk. Nor did market receptiveness. = Limited Supply and/or Market Development (especially for Kraft lignin). Kraft Lignin: The Market Development Dilemma (cont.) Recent Developments Have Changed the Dynamic: 1. AnGcipated spread between internal fuel value and anGcipated external sales value (net of capex/opex) has improved → acceptable returns. 2. Lignin as a renewable alternaGve to fossil fuel derived feedstock -­‐ sustainability now more than a Ge-­‐breaker, a potenGal market-­‐pull? 3. Unique synergies specific to the Plymouth NC mill resulted in capital risk and cost miGgaGon, and an assured interim takeaway. Rationale for Metso Lignoboost™ Why Lignoboost™ ? Reliable technology supplier; an established vendor and project partner. Advanced process and machinery design with acceptable references. Courtesy of Metso Power, used with permission Dewatering H2SO4 CO2 Precipitation Conditioning Black liquor OUT Dewatering & washing Cooking chemicals and organic substances Recovery Boiler Evaporation Lime kiln Digester Rationale for Plymouth NC Mill A Good Starting Point: Lignin Removal as a Stand Alone Project 1. Historical shift in grade structure led to Recovery Boiler bottleneck of 5%. All other unit operations/permits are good for an additional 75 tpd of pulp. Lignin removal from black liquor enables incremental production increase. 2. Market/business demand for additional pulp production. 3. Ability to shift lignin fuel load to existing (oversized) biomass boilers. As a result, lignin removal at Plymouth was a stand alone capital project based on marginal production, reduced unit costs, and improved mill efficiencies. A Platform for Development of New Bio-Based Product Portfolio 1. Ability to eventually displace lignin in biomass boilers with low cost regional biomass (hog fuel). Lignin available for external use as required. 2. Low cost and low risk demonstration of reliable/consistent supply. 3. Low cost and low risk platform for development of new, value added products. Lignin Product Applications Development 1. Solid fuel for internal and external applicaGons (NCSU, customers, others) 2. Lignin/Thermoplas8c compounds (NCSU, NRC, customers) 3. Emulsifiers for different applicaGons (NCSU, customers, others) 4. Fuel addi8ves (NCSU) 5. Polymer precursors (NCSU) 6. High performance adhesives and resins (FPL, customers) 7. Polyurethanes (Georgia Tech, customers, others) 8. Carbonaceous applicaGons including fiber (NCSU, ORNL, FPL) “Integrated Bio-Refinery” at Plymouth § Domtar leveraged our stand alone, self funded lignin removal project to win support for the broader, far reaching “Integrated Bio-Refinery” demonstration at Plymouth. § A major USDA-NIFA award that has resulted in five additional collaborative partnerships with nine additional development projects starts to date. " Project Status as of September 2013 Lignoboost™ at Plymouth commissioned in early February, 2013. Culmination of a 2 ½ yr, major capital project. Commercial quantities being produced on a 24/7 basis. Product used both as internal fuel and for external sales. Goal is to use all product for external sales and replace fuel value with low cost biomass. Production ramp-up (target of 30,000 tpy) proceeding as planned. Market development and sales proceeding as planned. Summary The first production scale installation of Metso’s Lignoboost™ process is successfully underway at Domtar’s Plymouth, NC pulp mill. The product, Domtar’s BioChoice™ Lignin is presently being used for internal fuel and external sales. Production and sales ramp-up both proceeding well. Successful commercial launch of a new, bio-based product line. Short- to intermediate-term: – a high quality bio-fuel for internal and external use. – sold to intermediate and end users for different applications. – used to create a platform for (collaborative ) development of new applications and bio-based product lines for Domtar. Intermediate- to long-term: – higher value applications as bio-chemicals and bio-materials. – development of other grades of BioChoice™ Lignin at other Domtar mills. – potential development of (modified) lignin product lines. Acknowledgements For their contributions, thanks to: Bruno Marcoccia, Director of R&D, Domtar. W. Dale Mitchell, Director of Bio-­‐Materials Business Development, Domtar. Domtar Plymouth Project Team: Brian Spear, Marty Barfield, Dianne Hardison. Our collaborators on the Plymouth Lignin Project: Domtar also wishes to acknowledge the USDA-­‐NIFA’s Biomass Research Development Initiative for its financial support of this project.