Bioenergy, opportunities for Finnish
actors
FORS seminaari
Otaniemi
26.11.2009
Harri Turpeinen
How to identify opportunities in bioenergy?
Demand development of the customer needs
Which custemer needs you want to fulfill?
transportation, customers of renewable raw materials.
Excesses and bottlenecks in the value chain(s)
In order to understand the degree of competition
To identify differencies in value creation along the chain
Understanding your own strengths and weaknesses
To identify your capability to participate
To identify your potential, realistic role(s)
Capitalize on your competences
26.11.2009
2
Biofuels value chain
Source: European Technology Platform for Biofuels
Bioenergy
carriers
Biom ass
production
s ys tems
Pretreat ment
Trans port
Biofuels
Initial
convers ion
Final
conversion
Coproducts
Bottleneck in
supply, limited
by
availability,
logistics,
usability, price,
sustainability
Technologies
mostly
available, not
excessive
CapEx
26.11.2009
A great
number of
advanced
biofuels
technologies
in making,
high CapEx
Technologies
mostly
available and
even existing
capacity
3
Growing
demand
of wide range
of renewable
products
million bbl/d
Middle distillates demand to show the strongest
growth
45
40
35
30
13.9
25
20
11.8
8.9
10.1
7.7
15
10
5
9.6
10.7
11.3
8.6
6.3
7.3
7.9
8.4
9.1
1995
2000
2005
2010
2015
7.6
-
North America
Greater Europe
Asia Pacific
Latin America
FSU
Sub-Saharan
Middle East
• Dieselization of European car fleet likely to continue
• Jet fuel demand is on the rise
• Healthy demand for gasoil in power generation
• Possibility of shipping moving into use of gasoil instead of bunker fuel in the
future (?)
Source: Wood Mackenzie 2007
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4
Mt
Global supply/demand balance of middle distillates
Surplus
50
40
30
20
10
0
-10
-20
-30
-40
2006
SubSaharan
Africa
FSU
G reater
Europe
Latin
America
North
America
Middle East
Deficit
Asia Pacific
-50
2010
Note: includes refinery supply + non refinery supply (for example biodiesel, ethanol and LPG from NGL production)
26.11.2009
Source: Wood Mackenzie
5
How much resources we have available today and how can
we sustainably increase them?
What feedstock types?
Forestry
• Northern Member States have higher potentials and well
developed forest industries due to landscape & climate.
• South Member states face increasing forest fires which
along with less- developed infrastructure restricts forest
potential.
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6
Biorefining & bioenergy opportunities for pulp and
paper industryi
Opportunity
Alternatives
Maturity
Biomass
•Forest side streams
•Other biomass
•Pellet production
Electricity
and heat
•Expanding the
existing units
•New capacity
Biofuels
•Diesel (2. generation)
•Ethanol (2. generation )
Biochemicals
& Biopolymers
• Lignin based chemicals
• Biopolymers based on
bio raw wax
• Other chemicals
26.11.2009
•Commercial
•Commercial
•R&D and
demonstration
•Commercializing
2012…2015
•R&D investing
for new
products
7
European Biofuels Technology Platform proposal for EIBI
2c)
(A)
The 7 generic value chains
Conversion paths based on thermochemical processes:
1. Synthetic fuels / hydrocarbons from biomass via gasification (main
markets: renewable transportation fuels for jet and diesel engines)
Main Feedstocks:
Forest and agricultural residues, waste wood,
energy crops, Black liquor
Main Products:
FT diesel and naphta, DME, Methanol
Level of Maturity: 1-2
(1= Demo exists / next step: reference plant; 2= Pilot exists / next step: demo or reference plant)
Examples:
- Existing Pilots: BioDME (Sweden), NSE Biofuels Oy (Finland), Bioliq (Germany),
Güssing (Austria)
- Existing Demo: CHOREN Beta Plant (Germany)
Dublin, 31 March 2009
EBTP proposal for EIBI
2c)
(A)
The 7 generic value chains
Conversion paths based on thermochemical processes:
2. Bio-methane and other gaseous fuels from biomass via gasification
(substituting natural gas and other gaseous fuels)
Main Feedstocks:
Forest and agricultural residues, waste wood,
energy crops
Main Products:
Synthetic Natural Gas (SNG), H2, CO
Level of Maturity: 2
(2= Pilot exists / next step: demo or reference plant)
Examples:
- Existing Pilots: Güssing (Austria), ECN (Netherlands)
Dublin, 31 March 2009
2. EBTP proposal for EIBI
2c)
(A)
The 7 generic value chains
Conversion paths based on thermochemical processes:
3. High efficiency power generation via gasification of biomass
Main Feedstocks:
Forest and agricultural residues, waste wood,
energy crops,
Main Products:
Power, Heat
Level of Maturity: 1 (earlier demonstrations in the ‘90s in UK, FI, DK, SE)
(1= Demo exists / next step: reference plant)
Examples:
- Existing Pilots: Sydkraft AB (Värnamo / Sweden), SKYVE (Denmark)
Dublin, 31 March 2009
2. EBTP proposal for EIBI
2c)
(A)
The 7 generic value chains
Conversion paths based on thermochemical processes:
4. Bioenergy carriers from biomass via other thermochemical processes
like pyrolysis, torrefaction etc. (main markets: fuels for heating, power
generation or intermediate for further upgrading into transportation
fuels)
Main Feedstocks:
Forest and agricultural residues, wood waste,
energy crops
Main Products:
Bio-oil for light / heavy fuel oil applications
Level of Maturity:
1-2***
(1= Demo exists / next step: reference plant; 2= Pilot exists / next step: demo or reference plant)
*** Themes with potential for international cooperation (with USA and or Brasil in particular)
Examples:
- Existing Pilots: FZK / Lurgi (Germany), BTG (Netherlands), Metso Power
(Finland), 2G_Bio-oil project /UPM (Finland)
Dublin, 31 March 2009
2. EBTP proposal for EIBI
2c)
(B)
The 7 generic value chains
Conversion paths based on biological and chemical processes:
5. Ethanol and higher alcohols from sugars containing biomass
(renewable transportation fuels as gasoline components, E85)
Main Feedstocks:
Sugars containing biomass: energy crops, agricultural and
forest residues, food industry and municipal biowaste …
Main Products:
Ethanol, butanol
Level of Maturity: 1-2***
(1= Demo exists / next step: reference plant; 2= Pilot exists / next step: demo or reference plant)
*** Themes with potential for international cooperation (with USA and or Brasil in particular)
Examples:
- Existing Pilots:
- Existing Demo:
SEKAB (Sweden), Futurol (France), Kalundborg (Denmark),
Abengoa (Spain)
Bionolix (Finland), Perseo (Spain), Kalundborg (Denmark)
Dublin, 31 March 2009
2. EBTP proposal for EIBI
2c)
(B)
The 7 generic value chains
Conversion paths based on biological and chemical processes:
6. Renewable hydrocarbons from sugars containing biomass via biological
and/or chemical process (main market: renewable transportation fuels for
jet and diesel engines)
Main Feedstocks:
Sugars containing biomass: energy crops, agricultural and
forest residues, food industry and municipal biowaste …
Main Products:
Renewable Hydrocarbons for transport fuels
Level of Maturity: 3***
(3= lab scale facility existing – pilot and demo needed)
*** Themes with potential for international cooperation (with USA and or Brasil in particular)
Examples (US):
- Virent (www.virent.com)
- Amyris (www.amyrisbiotech.com)
- LS9 (www.ls9.com)
- Gevo (www.gevo.com)
Dublin, 31 March 2009
2. EBTP proposal for EIBI
2c)
(B)
The 7 generic value chains
Conversion paths based on biological and chemical processes:
7. Production of bioenergy carriers from CO2 & sunlight through microorganism based production (algae, bacteria etc) and further upgrading into
transportation fuels and valuable bio-products (main market: renewable
transportation fuels for jet and diesel engines)
Main Feedstocks:
CO2, sunlight
Main Products:
renewable transport fuels for diesel and jet engines
Level of Maturity: 2***
(2= Pilot exists / next step: demo or reference plant)
*** Themes with potential for international cooperation (with USA and or Brasil in particular)
Examples:
- ENI / UOP (Sicily)
- Necton / Algafuel (Portugal)
- Ingrepro (Netherlands / Malaysia)
- Biomara (www.biomara.com) Pilot facility (UK)
- Algae demonstration facility funded under FP7 (DG Tren) consortium
to be built
Dublin, 31 March 2009
Stora Enso / Neste Oil Joint Venture
Heat
Paper mill
Forest biomass
1 million m3/a
(500 000 t/a)
Drying
Gasification
Stora Enso
Gas
purification
to Ultra
Clean
Gas
Fischer –
Tropsch
Synthesis
Bio based
crude wax Refinery
to refining
100 000 t/a
NSE Biofuels Oy
September
29, 2009
Harri Turpeinen
Renewable
diesel to
markets
Neste Oil
15
NSE Biofuels Oy – Varkaus Demonstration Plant
June 2009
September
29, 2009
Harri Turpeinen
16
Ideal biofuel
BTL and NExBTL
•
At least equals with existing fuels in drivability, performance and
comfort
YES
•
Is compatible with existing cars, trucks and engines
YES
•
Is compatible with existing distribution logistics
YES
•
Enables the development of engine technologies
YES
•
Reduces exhaust emissions and green house gas emissions
YES
•
Can be cost effectively produced in large volumes
YES
•
Can be produced based on non edible raw materials
YES
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Thank you