Status and Outlook of
Wood-based Biofuels Production
A Finish solution for traffic fuels
VTT 2G 2020
Biofuels Seminar
VTT Espoo
May 26, 2015
Ingvar Landälv
Senior Project Manager
LTU
1
”Status and Outlook of Wood-based Biofuels Production”
in the context of the Conference Agenda
Questions which need an answer
Presentation 26th May
What climate targets will govern
developments?
Climate targets for EU ….
What is the impact of emissions from
traffic?
Need to reduce emissions from
traffic and driving ….
Can engines be made more energy
efficient?
Alternative solutions in road
transport: 10-20 year timeframe
Can biofuels be integrated in the bioeconomy?
Integration of biofuels and new
products …..
Where does gasification fits best?
Integration of gasification
concepts to ….
Can Pyrolysis oil be further upgraded to Development of pyrolysis
automotive fuels?
techniques towards …
Will biofuels play a role in Europe
2030?
2
Scenarios biofuels: …
Biofuels market - Policy
• Very sensitive to global and regional policy
Challenge with respect to societal acceptance
• Current investments are risky due to
RED revision uncertainties
–
–
ILUC and the capping of 1st generation
Sub-target for advanced biofuels
lack of post 2020 strategies
–
•
•
3
No specific target for the transport sector
Member state ambitions
Different EU Member States need time to react and develop national
strategies for the deployment of advanced biofuels
Long term regulations
Investment in biofuels projects, including serving debt over 10-12 years
and equity over 20 years is not possible without guarantees of regulatory
stability of similar tenor
Source:
Biofuels production - Outlook
• Long term strategy for biofuels is needed
• The risk is big that developers and their financiers leave
the green fuels business for an indefinite time period
• built up knowledge disappears or picked up else where (US,
China …)
• key individuals change work focus
• In the long run biofuels needs to be competitive against
other alternative transport options. Special attention
needs to be give to
• infrastructure
• engine adjustments
• GHG emissions
4
Source:
DIRECTIVE 2014/94/EU OF THE EUROPEAN
PARLIAMENT AND OF THE COUNCIL of 22 October 2014
on the deployment of alternative fuels infrastructure
Article 2 Definitions
For the purpose of this Directive, the following definitions apply:
(1) ‘alternative fuels’ means fuels or power sources which serve, at least partly, as a substitute
for fossil oil sources in the energy supply to transport and which have the potential to contribute
to its decarbonisation and enhance the environmental performance of the transport sector.
They include, inter alia:
— electricity,
— hydrogen,
— biofuels* as defined in point (i) of Article 2 of Directive 2009/28/EC
— synthetic and paraffinic fuels,
— natural gas, including biomethane, in gaseous form (compressed natural
gas (CNG)) and liquefied form (liquefied natural gas (LNG))
— liquefied petroleum gas (LPG)
5
* ‘biofuels’ means liquid or gaseous fuel for transport produced from biomass;
Hydrocarbon based energy system
Crude Oil
Biomass
SOEC*
Gasification
of biomass
Gasification
HC
upgrading
Nutrients
Biomass
Pyrolysis
Liquefact.
CO2, H2O, electr.
Biomass
Wastes
Gasification Pulp mill
HC upgrading
HC upgrading
HC upgrading
Renewable HC products
Fossil HC products
gasoline
karosene
Naphtha etc
Ports
Energy
Use
1
2
n
nn
diesel
B
u
n k
e
r
Cars & buses
Chemical industry
Marine sector
6
Heavy
transports
Preem view: From Forest to Tank
1. Raw Material from the forest
Tall Oil, Lignin or other
forest based residues
2. Upgrading of raw material
to a suitable refinery feed.
3. Co-processing, upgrading to
high quality diesel and
gasoline.
4. The future fuel – in todays
vehicle fleet.
7
Source:
Battelle Project:
Upgrading of Biomass Fast Pyrolysis Oil (Bio-oil)
Biofuel Production Process
Product
Process
Biomass
Focus of the Current Project
Conventional
or Catalytic
Pyrolysis
Bio Oil
State of the Art of Bio Oil upgrading
at the Beginning of the Project
Bio Oil
Bio Oil
Stabilization
Hydrogenation
& hydrocracking
Zone I
Zone II
H/C Product
8
4
Bio-Oil
Upgrading
Battelle – PNNL Bio Oil Upgrading
Process Solves Technical Challenges
Bio Oil
Technical
challenges:
• Coke deposition
• Bed plugging
• Deactivation
• TOS ~100 hrs.
to 200 hrs.
Hydrocarbon
Product
Bio Oil
clean-up
Clean-up
Zone I
New catalyst
& process
Zone II
Commercial
sulfided
catalyst
Accomplishments:
• Re-generable
catalyst system
• TOS > 1,000hrs.
• Minimal plugging &
deactivation
H/C Product
Battelle: Technical accomplishments
Upgrading of Biomass Fast Pyrolysis Oil (Bio-oil)
• Identified novel non-carbon supported metal catalysts with low coke
formation rates
• These catalysts can be regenerated to remove coke and recover
activity
• Achieved ~ 200 hrs. TOS while maintaining high activity
9
9
Comments to:
Hydrocarbon based energy system
(+): Complete macro and micro distribution system
exists
(+): Renewable fuels will be true drop-in fuels if they meet
specification requirements
BUT
(-): Production of hydro carbons from renewables
comes with high costs and low efficiencies.
10
LNG / CNG based Energy System
Various renewable
Wastes
CO2, H2O, electr.
Biomass
Pyrolysis
Digestion
Biomass
Natural gas
(NG)
Biomass
SOEC*
Gasification
Liquefact.
LNG
Plants
Gasification
of biomass
Gasification
Nutrients
Pulp mill
BioSNG
Biogas
BioSNG
BioSNG
BioSNG
NG/SNG /BioSNG
BioSNG
LNG/BioLNG
Ports
1
2
n
nn
Cars & busses
L
N
G
Energy usage
Distribution
Chemical industry
Marine sector
11
Heavy
transports
CNG core pipeline and LNG terminal
network in Europe [Eurogas]
12
Comments to:
LNG / CNG based Energy System
(+): Large macro and micro distribution system exists in many countries
for CNG for energy purposes. CNG for cars available in some
countries to a certain extent.
(+): Renewable methane, BioSNG, will be a true drop-in fuels if it meets
specification requirements
(+): Major LNG terminals exists at strategic harbors and connects to the
CNG network
BUT
(-): Micro distribution for NG as motor fuel does not exist to any large
extent for CNG and barely at all for LNG.
(-): LNG distribution comes with very high distribution costs
(-): Vehicle adaption for LNG is a technical challenge
(-): Risk for methane leakage need to be considered
13
Methanol based System for Transportation Fuels
Natural gas
Methanol
plants
Fossil MeOH
Via Ports
Chemical industry
14
Methanol based System for Transportation Fuels
A natural move 1970-1980 during first oil crises
Natural gas
Methanol
plants
Fossil MeOH
Via Ports
Distribution
Ports
1
2
n
nn
Cars
Chemical industry
15
Swedish Methanol tests in the 1980-ies
• During 1980-82 a large M15 fuel testing project was done with 1000
vehicles at 19 fuel stations and 11 car makes with 20 million km of
driving. As neat fuel M100 were tested 1984-86 by SAAB-Scania and
Volvo with 20 vehicles.
• Main results were same or
better than for petrol in terms
of engine performance, fuel
handling and distribution.
However, when oil prices fell
1986, investment in required
infrastructure became less
attractive.
16
Nynäshamnskombinatet 1984,
1500 MWth plant

Project developed during
1982-84 by a Swedish team
and with involvement of
international contractors
and process licensors.
Engineering efforts of this
and following NEX projects
totaled €30 million
Acquired technology
knowledge have
contributed to today’s
status in development
No methanol plant built but
two IGCC plants in Italy and
spinoff into black liquor
methanol in Piteå by the
team



17
Project size: 700 000 t/y of MeOH
Methanol based System for Transportation Fuels
An unexpected ban in the 1990-ies and onward
Natural gas
A
corrosive,
poisonous
fuel
Methanol
plants
Fossil MeOH
Via Ports
Distribution
Ports
1
2
n
nn
Cars
Chemical industry
18
Methanol based System for Transportation Fuels
A surprising move “today” – methanol as bunker fuel
Natural gas
Methanol vs. LNG
“In ECAs, methanol is widely regarded as a better
alternative to HFO than LNG. It is easier to handle,
because it is a liquid at ambient temperature and
pressure, and so, unlike LNG, does not have to be
cooled down to -163°. In the end, the price and
availability of the fuel will determine the extent of its
success.”
Dirk Schroeder, Lloyd’s Register
Methanol
plants
Fossil MeOH
Via Ports
1
Ports
M
e
t h
2
a
n
n
nn
o
l
Chemical industry
Marine sector
19
Stena Germaica started to operate on methanol
at one of its 4 engines in April 2015. Remaining
3 engines will follow later in 2015.
Fuel: 25 000 tons of MeOH / year
Source: Stena
20
Methanex: 7 Tankers to be Powered by
Methanol on order. Another two are planned.
21
Methanol based System for Transportation Fuels
2015: Methanol as bunker fuel => methanol in cars, busses and
HD trucks
Natural gas
Still a
corrosive,
poisonous
fuel or …
Methanol
plants
Fossil MeOH
Via Ports
Distribution
1
Ports
2
n
nn
Cars & buses
M
e
t h
a
n
o
l
Chemical industry
Marine sector
22
Heavy
transports
Fuel blending in China – Provincial Standards
•
Provincial Standards have been
supporting strong demand growth
for methanol fuel blending in China
M15,
M30
M15,
M30
M15
Heilongjiang
M15
M5, M15, M85 & M100
Jilin
M15
Liaoning
M15, M25
Inner
Mongolia
Xinjiang
M15
Beijing
Hebei Tianjin
Gansu
Shandong
Shanxi
Ningxia
Qinghai
Tibet
M45
Henan
Shaanxi
Jiangsu
Hubei
Sichuan
Shanghai
Anhui
Zhejiang
M10
Chongqing
Hunan
Jiangxi
Fujian
Guizhou
Example: “M15”=15% methanol, 85% gasoline
Guangxi
M15
23
Source: Methanol Institute
Guangdong
Yunnan
Hong Kong
Macau
Hainan
23
M15, M30
& M50
Methanol based System for Transportation Fuels
Parts included in the ForeMeOH Horizon2020 application
Methanol
plants
Nutrients
Gasification
MeOH
Fossil MeOH
Pulp mill
MeOH
1
2
n
Via Ports
nn
DME
M
e
t h
a
DME
n
o
Cars & buses
l
Distribution
Marine sector
24
MeOH
Renewable MeOH
Distribution
Ports
SOEC*
Gasification
of biomass
Gasification
MeOH
Biomass
Pyrolysis
Liquefact.
CO2, H2O, electr.
Biomass
Wastes
Biomass
Natural gas
Chemical industry
Heavy
transports
ForeMeOH - Demonstration of Sustainable conversion
of Forest industry and Agricultural Residues to BioMethanol including its use in vehicles and ships
(An Horizon 2020 Application from May 2015)
FIVE DEMONSTRATIONS:
1. Demonstration of biomethanol as fuel for large marine 4
stroke engine system
2. Demonstration of biomethanol as fuel for small to
medium size marine 4 stroke engine system
3. Use of raw biomethanol in a two stroke marine engine
4. Demonstration of biomethanol in a HD diesel engine
including an ignition improver
5. Demonstration of GEM fuel on a fleet of used E85
passenger cars where the methanol component is
biomethanol, not in compliance with chemical grade
methanol
25
Methanol based System for Transportation Fuels
DME identified as an excellent diesel fuel for HD vehicles
Natural gas
Methanol
plants
Fossil MeOH
Via Ports
Distribution
1
Ports
2
n
nn
DME
M
e
t h
a
DME
n
o
Cars & buses
l
Distribution
Marine sector
26
Chemical industry
Heavy
transports
More than 700 tons of BioDME has been
produced since start in Nov 2011
LTU
BioDME project
27
Biosyngas
Program
to May 2016
Goals achieved for the Volvo field tests
8 trucks, 2013-01-01 to 2014-06-30
Km / Mile
Total mileage
1 truck
Status
Target
2014-08-31
June 2014
1 485 000 /
933 000
1 400 000 /
870 000
296 000 / 184 000
250 000 / 155 000
Extended field test
28
Comments to:
Methanol based System for Transportation Fuels
(+): Macro distribution system exists in many countries for methanol as
a chemical commodity. The system can cost effectively be extended.
(+): Renewable methanol can be blended with fossil methanol, it can be
used as low blend component and it can be a green component in
production of FAME and MTBE. Place for 5 milj tons within EU.
(+): Methanol is one of, or maybe the simplest renewable fuel to
produce from in principle all renewable feedstocks and has also
comparably high energy conversion efficiency
(+): Methanol is a very efficient motor fuel
(+): Methanol is an efficient fuel for fuel cells.
BUT
(-): It is recognized as a less desirable fuel due to its toxicity.
(-): Risk for corrosion needs to be carefully addressed
29
Gasification of Biomass in Liquid Form
Methanol
plants
Nutrients
Gasification
MeOH
Fossil MeOH
Pulp mill
MeOH
1
2
n
Via Ports
nn
DME
M
e
t h
a
DME
n
o
Cars & buses
l
Distribution
Marine sector
30
MeOH
Renewable MeOH
Distribution
Ports
SOEC*
Gasification
of biomass
Gasification
MeOH
Biomass
Pyrolysis
Liquefact.
CO2, H2O, electr.
Biomass
Wastes
Biomass
Natural gas
Chemical industry
Heavy
transports
Today’s commercial Forrest Industry has two
main legs
TODAY
Forest
Logs
Pulp
Wood
Saw mill
Wood
Products
Pulp
Mill
Recovery
Boiler
Pulp
Mill
Pulp
31
BLG is a transformative technology converting
pulp mills to biorefineries making efficient use
of the third fraction from the forest
TOMORROW
Forest
Logs
Pulp
Wood
Saw mill
Wood
Products
Forest
Residual
H&P
Boiler
Combined Recovery
Recovery
Boiler
And Fuel Generation
Pulp
Mill
Pulp
Mill
Pulp
32
Fuel
Pulp Mill Biorefinery Economics
(l.g.e. : liter gasoline equivalents)
Plant Financials
Renewable energy price Renewable Energy
price
as currently under
(Ethanol l.g.e.)
discussion in Sweden
Fossil energy price
(gasoline)
Biofuels price
EUR / l.g.e.
1.3
0.9
0.6
Revenues, MEUR
232
164
109
Opex, MEUR
(64)
(64)
(64)
EBITDA , MEUR
168
100
45
Gross Payback, years
Net payback, years
2.9
1.4
4.9
2.4
10.9
5.3
* Mill capacity: 2500 ton dry solids per day
Production and CAPEX
Production, million l.g.e
Gross CAPEX, MEUR
Avoided cost for recovery
boiler, MEUR
Net CAPEX, MEUR
33
Source: Chemrec
182
(490)
250
(240)
 Extremely profitable at biofuels
prices and avoided cost of recovery
boiler
 Robust: Positive EBITDA even at
fossil prices
Biomass flow from the forest can be increased
adding pyrolysis oil (PO)
to the black liquor (BL) flow
TOMORROW (2)
Forest
Logs
Pulp
Wood
Saw mill
Wood
Products
Forest
Residual
H&P
Boiler
Combined Recovery
Recovery
Boiler
And Fuel Generation
Pulp
Mill
Pulp
Mill
Pulp
34
Fuel
PO
Production
Pilot plants in Piteå, Sweden
(Host plant for the LTU Biosyngas Program)
WP1 Pilot scale experiments
Powder
WP2 Catalytic gasification
ETC EF
gasifier
WP3 Solid fuel gasification
WP4 Novel syngas cleaning
WP5 Catalytic conversion
WP6 Containment materials
WP7 Field tests
Torrefied Mtrl
Cleaning
Pyrolysis oil
Others
BioMeOH
WP2
Membranes
Black
Liquor
25-30 bar
> 100 bar
BioDME
DP-1
Plant
Active
C Abs
H2
O2
Amine
Wash
Future development
The Renewable
Syngas Highway
MeOH
Synth.
CO,
H2
Electrolysis
Existing
facilities
35
WG
Shift
DME
Synth.
Catalytic
Process
Development
CO2
Fuel
Cells
H2O
Distillation
The catalytic gasification project
- turning alkali to an advantage
• Alkali metals often problematic in biomass
combustion and gasification
• But:
– Alkali metals known to catalyze gasification
reactions
– Handling and recovery of alkali salts is well
developed in the Chemrec gasification
technology
• So: Let’s use alkali metals to improve efficiency
instead of considering them a problem
36
Black liquor char has a very high reactivity
compared to chars of other origin
~300 times
higher
903˚C 838˚C 780˚C
37
When BL and PO are mixed the char from
the mix gets the reactivity of BL
BL & BL/PO 80/20 & 70/30
~300 times
higher
30-40 times
higher
903˚C 838˚C 780˚C
38
Co-gasification of BL and PO offers many
potential advantages
All calculations thus assume that BL/PO can be gasified at same
temperature as BL is today.
Syngas Capacity increases
Energy efficiency for gasification
about 100% by having about
of added PO is 80-85%
27% PO to the BL/PO mix (by
weight)
100%
95%
90%
400%
~27%
300%
80%
CGE
Production (syngas energy)
85%
85%
350%
250%
200%
SF-LHV total
75%
H2CO total
70%
SF-LHV incr PO
65%
H2+CO incr PO
60%
150%
55%
100%
50%
0%
50%
10%
20%
30%
40%
50%
PO mix (part of total feed)
0%
0%
10%
20%
30%
PO mix (part of total feed)
40%
50%
Figure shows simulated increased
production of final liquid biofuel product
at fixed BL feed (i.e. for specific mill)
39
Figure shows simulated gasifier
energy efficiency of total mixed feed
(solid) and for added PO (dashed)
Co-gasification of BL and PO offers many
potential advantages
All calculations thus assume that BL/PO can be gasified at same
temperature as BL is today.
Syngas Capacity increases
Energy efficiency for gasification
about 100% by having about
of added PO is 80-85%
27% PO to the BL/PO mix (by
weight)
100%
95%
90%
400%
~27%
300%
80%
CGE
Production (syngas energy)
85%
85%
350%
250%
200%
SF-LHV total
75%
H2CO total
70%
SF-LHV incr PO
65%
H2+CO incr PO
60%
150%
55%
100%
50%
0%
50%
10%
20%
30%
40%
PO mix (part of total feed)
0%
0%
10%
20%
30%
PO mix (part of total feed)
40%
50%
Figure shows simulated increased
production of final liquid biofuel product
at fixed BL feed (i.e. for specific mill)
40
13% PO successfully
mixed Into BL in
trials March 2015.
Week operations
planned for autumn
2015.
50%
Material and energy balances
0% PO
25% PO
50% PO
PO: 0 MW, 122 MW, 365 MW
Electricity
32 MW
45 MW
70 MW
Fuel drying
Boiler
Turbine
Electricity
15 MW
14 MW
13 MW
Electricity
28 MW
BFP
Off-gases
7 MW
12 MW
23 MW
Lime kiln fuel
16 MW
11 MW
0 MW
41
Bl
Pulpwood
420 MW
18
0
M
Bark
29 MW
Electricity
20 MW
31 MW
55 MW
W
Biomass
96 MW
92 MW
86 MW
Pulp mill
Pulp
157 MW
MeOH
97 MW
183 MW
353 MW
Cash flow analysis shows that PO can be
valued to ~90€/MWh to meet the same IRR
as a pulp mill without any PO addition
35%
Case BLG
30%
Case 25
Case 50
IRR [%]
25%
20%
15%
10%
5%
0%
35
45
55
65
75
85
Pyrolysis oil cost [€/MWh]
42
95
105
115
“....but we need the stable long-term
investment conditions......”
130
€ / MWh
120
Cellulosic
EtOH
0.70 €/l
110
100
100 €/MWh =
~4.4 USD/g.g.e.
90
80
70
60
50
Today’s
cost for
advanced
biofuels
In Europe
Brazilian
ethanol at
0.40 €/l
Long term stable
legislation is required
to cope with the difference
40
30
20
10
2000
43
2010
2020
2030
Special thanks to research partners
and sponsors
44