Challenges & Opportunities in Developing a Sustainable Biomass Infrastructure

Transcription

1 Challenges & Opportunities in Developing a Sustainable Biomass Infrastructure P. Nair UOP LLC, A Honeywell Company CO 2 Summit: Technology & Opportunity June 6-10, 2010 Vail, Colorado 2009 UOP LLC. All rights reserved.

2 Honeywell Corporate Overview 125,000 employees in more than 100 countries Transportation & Power Systems A Fortune 100 company sales of $34.5 billion in 2008 Global leader in advanced technology products, services and solutions Specialty Materials UOP 15% 15% 34% 36% Aerospace Automation & Control Technology Company, Financially Strong and Global UOP Proprietary

3 What UOP Does UOP creates knowledge via invention and innovation and applies it to the energy industry 1,570 Scientists and Engineers 2,600 active patents Expertise Experience Process Technology Catalysts Adsorbents Equipment Services Since 2007 Petroleum Petrochemicals Natural Gas Renewables Today More Than 60% of the World s Gasoline and 85% of Biodegradable Detergents are Made Using UOP Technology UOP

4 Agenda Global Context: Energy Demand Regulations UOP Vision for Sustainable Biomass Infrastructure Technology Solutions: Green Diesel Green Jet Lignocellulosic Conversion paths Summary

5 Macromarket Summary: Through 2020 Global energy demand is expected to grow at CAGR 1.6%. Primary Energy diversity will become increasingly important over this period with coal, natural gas & renewables playing bigger roles. Fossil fuels are expected to supply 83% of energy and 95% of liquid transportation needs Biofuels are expected to grow at 8-12%/year to ~3.0 MBPD Biofuels: A Growing Presence Source: IEA, 2008

6 Petroleum Refining Context Crude Oil Crude Treating & Desalting Latest Refining Technology Development & Licensing Atmospheric Gas Oil Crude Oil Distillation (Topping) Naphtha Light Distillates Heavy Distillate Vacuum Distillation Environmental Controls Light Ends Light Naphtha H 2 Isomerization Naphtha Hydrotreating Heavy Distillate Hydrotreating H 2 Gas Oil Hydrotreating Energy Conservation & Management (Power Production) Light Olefins Production Solvent Extraction & Deasphalting Vacuum Resid Coking H 2 H 2 Gas Processing Unit Diesel Gas Oil Plant Maintenance/ Reliability/ Safety Butane- Butylene Isomerate LPG Catalytic Reforming H 2 Alcohol Etherification Light Distillate Hydrotreating Fluid Catalytic Cracking H 2 Hydrocracking Visbreaking Plant Upgrades & Revamps Butane H 2 Alkylation Flue Gas Aromatics Production Isobutane Natural Gas Gas-to-Liquids BTX Reformate Sulfur Plant Iso-octane Production Alkylate Gasoline Gasoline, Naphtha, Middle Distillates, Gasoline Kerosene and Jet Fuels Diesel and Heating Oils Lube Oil Production Heavy Fuel Oil Asphalt Gasification Distillates Iso-octane Diesel and Heating Oil Lube Oils Natural Gas, Fuel Oil Hydrogen Production/ Purification/Recovery Product Treating Blending Sulfur Fuel Gas Gasoline Jet Fuels LPG Solvents Diesels Heating Oils Geases Fuel Oil Lube Oils Asphalts Syngas/Steam Electricity Coke Refining: ~100 years ~750 refineries ~85M BBL of crude refined daily ~50M BBL transport fuels; ~6M BBL of aviation fuel Complex but efficient conversion processes Fuel, Wax H 2 Fossil fuel production has 100 years head start relative to sustainable biofuels but technology is catching up fast.

7 Biofuels: A Quickly Changing Landscape 2007 All biofuels are good More, faster No criteria to measure impact of adopting biofuels Availability of inexpensive bio feedstocks Government mandates and incentives favor ethanol and biodiesel 2008 UOP Position Not all biofuels are good Concern for food chain impact & competition for land/water Measured biofuel adoption Utilization of LCA analysis to qualify : link to GHG, energy, sustainability Bio feedstocks tracking energy prices Government mandates/ incentives increasingly technology neutral Emphasis on real biofuels Increasing Awareness of Potential Impact Emphasis on life cycle analysis as a way of measuring sustainability Ensure technology is feedstock flexible Focus on 2 nd generation technologies Create partnerships between feedstock suppliers and fuel producers

8 Charting the EU Renewable Landscape Renewable Energy Directive (RED) 20% of EU gross energy consumption from renewables by 2020 Transport Fuels: 10% renewable content by 2020 Incentives for renewable power Sustainability criteria State specific targets Fuel Quality Directive (FQD) GHG Emissions: Fuel Suppliers to reduce 2020 levels by 6% relative to 2010 levels Carbon footprint reduction for all land transport fuels Sustainability criteria Fuel quality specs Emissions Trading Scheme (ETS) CO 2 Cap and Trade system Broad industry coverage Includes air transport 3 pieces of legislation adopted Each member state must comply: Timetables may differ Financial penalties or incentives will vary Mix and total energy targets vary by state Wide differences on starting point

9 Charting the US Renewable Landscape Renewable Fuel Standard (RFS) ~2.5M BPD biofuels by 2022 Corn ethanol, capped at ~1M BPD Sustainability targets will force transition to 2 nd generation feedstocks Technology neutral Renewable Power Standard (RPS) State mandated renewable power More than 30 States have RPS Mandatory RPS State Renewable Goal Carbon Legislation California LCFS: Fuel Carbon Intensity reduction North Eastern States GHG Cap & Trade initiative Federal Carbon Cap legislation introduced Legislation Adopted Federal Mandates for transport fuels - RFS State mandates controlling carbon emissions State Mandates for renewable power

10 Global Legislation Overview: Ground Transport Fuels Canadian Law C-33 Mandates: E5 by 2010 B2 by 2012 B5 in British Colombia by 2010 EU-27 Adopted Mandates: RED 10% by Energy content by 2020 FQD 6% GHG reduction by 2020 from 2010 levels E10/B5 targets EISA 2007: RFS mandate -36 Billion Gal by 2022 Several State mandates in effect California LCFS mandated GHG initiatives established in NE States Mandates: Brazil: E25/B3 Argentina: E5/B5 (2010) Colombia: E10/B5 E10 mandate E20/B20 by 2017 E5-E10 mandates B1-B5 mandates E_ : Renewable content in Gasoline B_ : Renewable content in Diesel Global Biofuels use Trending Towards a Nominal E10 & B5

11 Specific Drivers for Aviation Biofuels Commercial aviation commitments to carbon neutral growth Visibility of aviation industry dictates sustainability is a key factor European ETS dictates C reductions starting in 2012 ATA/AITA disconnect pulls alternative fuels (not just biofuels) into the mix US Defense Sector commitments Air Force: 50% of all domestic aircraft running on 50/50 blend by 2016 Navy: 50% of all systems running on alternatives by 2020 Global jet fuel consumption (2008) 5 M bpd or 80 B gpy US Military: 0.3 M bpd or 4.5 B gpy Key Drivers of Emissions Reductions CO 2 Emissions Forecasted Emissions Growth w/o Reduction Measures Baseline Ongoing Fleet Renewal / Technology Development ATM Investments /Improvements Low Carbon Fuels Using less fuel Efficient Airplanes Operational Efficiency Changing the fuel Sustainable Biofuels Carbon Neutral Timeline 2050 Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA OEM s and US Military Driving Green Jet Demand

12 Agenda Global Context: Energy Demand Regulations UOP Vision for Sustainable Biomass Infrastructure Technology Solutions: Green Diesel Green Jet Lignocellulosic Conversion paths Summary

13 UOP Biofuels Vision Produce real drop-in fuels instead of fuel additives/blends Leverage existing refining/ transportation infrastructure to lower capital costs, minimize value chain disruptions, and reduce investment risk Focus on path toward second generation feedstocks Oxygenated Biofuels Renewable Energy Hydrocarbon Biofuels Ethanol Biodiesel Fuel & Power Diesel Jet Gasoline First Generation Other Oils: Camelina, Jatropha, Halophytes Second Generation Natural oils (vegetables, greases) Lignocellulosic biomass, algal oils

14 US/EU: Second Generation Feedstock Focus Feedstock: Significant R&D being invested into development 2 nd generation and transition feedstocks Algae Camelina Cellulosics Time line for commercial production: Camelina 2010 Cellulosics 2012 Algae 2017? Algae Provides the Greatest Substitution Potential

15 Biofuel Production: Regional Feedstock Trends First Generation Edible Grains, Oils Source: IFQC Transition Inedible Grains, Oils Second Generation Cellulose, Algae Inedible Transition Feedstock Global Trend: Food based to non-food based US/EU: Food vs fuel Sustainability GHG emission reduction targets China/India Non-food feedstocks Jatropha, cassava, sweet sorghun, pongamia SE Asia/S America Feedstock advantaged, Increased focus on 2 nd Generation & Transition Feedstocks Time-lines for Commercial Scale Production Vary palm, soy, castor

16 Forthcoming Feedstocks Camelina Current markets Northwest US and Southern Canada Wide-spread acreage as rotation crop >200 million gallons by 2012 in the US Jatropha Yields high quality oil Seed quality, cultivation practices and water impact yields Yields vary from gal/acre/ year Potential in limited number of areas 200K to 500K bpd potential Pennycress Member of mustard family High seed & oil yield Off season from Corn & Soy (87M & 78M acres planted in 2009) Potential for >100M gpy by 2015 Animal Fats/Greases Considered as waste biomass Sells at discount to most natural oils Highly saturated Meets the US EPA s LCA based GHG reduction criteria Potential for ~200K BPD of renewable diesel/jet production in Americas/EU Feedstock utilized for Green Fuels: Geography specific UOP

17 Algae: Multiple Sources for Fuels Wild Algae Enhanced Algae Strains Heterotrophically Grown Algae Low Production Costs Moderate Production Cost Moderate Production Costs Moderate Pre-Treatment Costs High Pre-Treatment Costs Ecofining TM Green Fuels Jet, Diesel Low Pre-Treatment Costs

18 Getting There Lignocellulosic Technology Distributed Standards Algal Efficiency Supply Chain Reduction in Climate Active CO 2 Equivalents Biofuels Sustainability Cost Sustainability Uncompromised Product Quality Life Cycles Net Energy Production Consumption Emissions World Trade Feedstock Availability Vehicle Fleet Energy Content

19 Agenda Global Context: Energy Demand Regulations UOP Vision for Sustainable Biomass Infrastructure Technology Solutions: Green Diesel Green Jet Lignocellulosic Conversion pathways Summary

20 Biofuels Overview: Technology Pathways Feedstocks = UOP Areas Products Sugars Fermentation Dehydration Ethanol C 6 Sugars Distiller s Grain Starches Lignin, Cellulose & Hemicellulose Enzyme Conversion C 5 / C 6 Sugars Acid or Enzyme Hydrolysis Direct Conversion Pyrolysis/Thermal Depolymerization Lights Gasification Bio-oil Syngas CO 2 Hydrotreating Fischer Tropsch - Alcohol Synthesis Renewable Energy Green Gasoline H 2 O Green Diesel/Jet Natural Oils 2 nd Gen Feeds (Jatropha, Camelina & Algal) Co-Feed FCC Hydrotreating Transesterification Glycerine FAME or FAEE Current biofuel market based on sugars & oils. Use bridging feedstocks to get to 2 nd Generation Feeds: Algae & Lignocellulosics

21 UOP/ENI Ecofining Green Diesel Superior technology that produces a drop-in diesel Uses existing refining infrastructure, can be transported via pipeline, and can be used in existing automotive fleet CFPP and Cloud Point can be controlled Excellent blending component, allowing refiners to expand diesel pool by mixing in bottoms Can be used as an approach to increase refinery diesel output Process Comparison vs. Biodiesel Natural Oil/ Grease + Methanol Natural Oil/ Grease + Hydrogen Feed Reactor System Separator Biodiesel (FAME) Green Diesel Process Overview Acid Gas Removal Water Make-up Hydrogen CO 2 Propane Green Naphtha or Jet Green Diesel Product + Glycerol + Propane Wt-% 1 10 Vol-% Vol-%

22 Honeywell Green Diesel TM Product Comparison Petroleum ULSD Biodiesel (FAME) Honeywell Green Diesel Oxygen Content, % Specific Gravity Cloud Point, C -5-5 to to +10 Cetane Sulphur, ppm <10 <2 <2 Energy Density, MJ/kg Energy Content, BTU/gal 129 K 118 K 123 K Poly-Aromatics, vol-% Colour Clear Light to Dark Yellow Clear Oxidative Stability Baseline Poor Baseline Production cost $/gallon Baseline Baseline - $0.22 High Quality Fully Fungible Diesel fuel at a Lower Cost than Biodiesel.

23 UOP Renewable Jet Process Overview Initially a DARPA-funded project to develop process technology to produce military jet fuel (JP-8) from renewable sources An extension of UOP Ecofining TM process, with selective cracking to make jet-range material Produces SPK that meets all properties of ASTM D7566 Certification for blending up to 50% in progress DARPA Project Partners Crude Oil Oil Refinery Fossil Jet Fuel Natural Oils & Fats UOP Renewable Jet Process Synthetic Paraffinic Kerosene 50% 50% Fully Fungible drop-in Renewable Fuel Technology being Licensed

24 Renewable Aviation Fuel Market Drivers Aviation Emissions Are Growing Rapidly Index 100 = EU GHG Emissions by Sector as an Index of 1990 Levels EU Emission Trading Scheme extending to aviation sector: Aviation emissions: Fastest growing of any sector 80 Key Drivers of Emissions Reductions Int Aviation Energy Industrial Processes Agriculture Year Waste Total (Without LUCF) Transport Source: ICAO US Military s National Security driven goals to achieve both greater substitution and GHG reduction CO 2 Emissions Forecasted Emissions Growth w/o Reduction Measures Baseline ATM Investments /Improvements Carbon Neutral Timeline Low Carbon Fuels Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA Renewable Jet Process will meet an unaddressed gap if aviation is to grow at or beneath carbon neutrality

25 UOP s Renewable Jet & Green Diesel Process Feedstocks Rapeseed Tallow Jatropha Soybean Algal Oils Palm Oil Camelina Greases Deoxygenation CO 2 Water Selective Hydrocracking Product Separation Hydrogen Light Fuels SPK (Green Jet) Green Diesel Feedstock flexible Costs Capex: similar to typical refinery process unit Opex: SPK cost subject to feedstock cost, but can be competitive with Jet A-1 with current US incentives High quality green hydrocarbon products Swing between SPK and Green Diesel production to meet demand Commercial scale proven technology

26 Key Properties of Green Jet Flash Point, o C Freezing Point, o C JFTOT@300 o C Sulfur, ppm Description Filter dp, mmhg Tube Deposit Less Than Net heat of combustion, MJ/kg Viscosity, -20 deg C, mm 2 /sec Jet A-1 Specs Min 38 Max -47 max 25 < 3 min 42.8 max 8.0 max 3000 Over 6000 US Gallons of bio-spk made Jatropha Derived SPK <0.0 Camelina Derived SPK < <0.0 Jatropha/ Algae Derived SPK <0.0 Production Viability Demonstrated Fuel Samples from Different Sources Meet Key Properties

27 ASTM D7566 Issued 1 st Sept 09 D Materials and Manufacture Annex 3 Table 1 Blend Comp s Criteria and Blend % Limits Other Adv Fuels or Processes Annex 2 Other Adv Fuels or Processes Annex 1 50% Hydpross d SPK Fuel Blends Fuel Produced to D7566 Can Be Designated as D1655 Fuel D7566 Av Turbine Fuel Containing Syn HC s Table 1 Blended Fuel Performance Properties Body of Spec Applies to Finished Semi-Synthetic Fuel Annex for Each Class of Synthetic Blending Component Allow Re-Certification to D1655 Annex 1 Hydroprocessed SPK Includes 50% FT Fuel Certification of SPK to 50% targeted for 2010 Slide courtesy of Mark Rumizen, FAA/CAAFI UOP Proprietary

28 Completed Flight Demonstrations Feedstock: Jatropha oil Successful ANZ Flight Demo Date: Dec. 30, 2008 Feedstock: Jatropha and algal oil Successful CAL Flight Demo Date: Jan. 7, 2009 Feedstock: Camelina, Jatropha and algal oil, KLM European Test Flight: November 23, 2009 Camelina

29 US Military Supply Contracts AF and Navy are now certifying HRJ through large fuel purchases through the Defense Energy Support Center (DESC) These fuel purchases will accelerate the military certification of HRJ fuels 1600 gallons of on-spec HRJ-5 was delivered to the Navy on spec and on time Additional fuel is being produced to meet the next Navy and Air Force deadlines HRJ5 and HRJ8 specification limits are more stringent than ASTM D7566 spec Overall program will further demonstrate the feedstock and process flexibility of the UOP technology to produce HRJ fuels to meet different specifications Line Item Volume (gallons) 40, , , , , ,000 1,600 Type of Fuel Navy HRJ-5 Navy HRJ-5 Air Force HRJ-8 Air Force HRJ-8 Air Force HRJ-8 Air Force HRJ-8 Navy HRJ-5 Feedstock Camelina Camelina Camelina Tallow Camelina Tallow Algal Oil Prime Supplier Sustainable Oils Sustainable Oils Sustainable Oils UOP (Cargill Feed) Sustainable Oils UOP (Cargill Feed) Solazyme Producer UOP UOP UOP UOP UOP UOP UOP All from 2 nd Generation Sustainable Feedstocks Comment Optional Amount Optional Amount Optional Amount UOP

30 Life Cycle Analysis for Renewable Jet Fuel MJ (Input)/MJ (Output) Cumulative Energy Demand Kerosene Non-renewable, Fossil Renewable Biomass Renewable, Water Jatropha Green Jet Tallow Green Jet Soy Green Jet Non-renewable, Nuclear g CO 2 eq./mj Renewable, Wind, Solar, Geothe Greenhouse Gases Kerosene Jatropha Green Jet Significant GHG Reduction Potential Cultivation Fuel Production Use Camelina Green Jet LUC Error Bar Tallow Green Jet Oil Production Transportation Soy Green Jet g CO 2 eq./mj Basic Data for Jatropha Production and Use. Reinhardt, Guido et al. IFEU June 2008 Biodiesel from Tallow. Judd, Barry. s.l. : Prepared for Energy Efficiency and Conservation Authority, Environmental Life-Cycle Inventory of Detergent-Grade Surfactant Sourcing and Production. Pittinger, Charles et al. 1, Prarie Village, Ka : Journal of the American Oil Chemists' Society, 1993, Vol. 70.

31 Lignocellulosic Biomass Processing Options Direct Combustion Heat & Power Fast Pyrolysis Pyrolysis Oil Upgrading Transport Fuels Solid Biomass SynGas Gasification Fischer Tropsch Hydrocracking/ Dewaxing Envergent Route to Energy Fermentation/ Catalysis Bioethanol/ Biobutanol UOP

32 Pyrolysis Oil to Energy & Fuels Corn Stover P P Refinery P P Electricity Production Available Today Biomass Fast Pyrolysis P P Pyrolysis Oil Fuel Oil Substitution Mixed Woods Transport Fuels (Gasoline, Jet Diesel) Chemicals (Resins, BTX) 3 Years to complete R&D Conversion to Transport Fuels Demonstrated in Lab Collaboration with DOE, USDA, PNNL, NREL

33 RTP TM Unit Process Diagram Feed System Conversion Quench & Separation Surge Bin Feed Bin Heat for Moisture Reduction Minimal Net Utilities RTP Is Self sustaining Process With Reduced Carbon Footprint UOP

34 Pyrolysis Oil as Burner Fuel Energy densification improves logistics and provides flexibility Relatively low emissions (NOx, SOx, ash) Consistent quality results in improved operations - ASTM D7544, Standard Specification for Pyrolysis Liquid Biofuel, established last month ph Property Gross Heat of Combustion, MJ/kg Point, o C Pyrolysis Solids Content, wt% Water Content, wt% Kinematic Viscosity, 40 C Density, kg/dm 20 C Sulfur Content, wt% Value 15 min 2.5 max 30 max report 125 max max Test Method ASTM D240 ASTM D7544, Annex I ASTM E203 ASTM E70 ASTM D445 ASTM D4052 ASTM 4294 Ash Content, wt% 0.25 max ASTM 482 Flash Point, o C 45 min ASTM D93, Procedure B 25-30% Lower Cost than #2 Fuel Oil on an Energy Basis Pour Point, o C -9 max ASTM D97

35 Pyrolysis Oil Energy Applications RTP Unit Gasification Fuel Burner Gas Turbine Diesel Engine Optimized UOP Upgrading Technology Syngas Fischer- Tropsch Hydrocracking/ Dewaxing Heat Electricity CHP Green Gasoline, Green Diesel & Green Jet Compatible with specialized turbines Specialized burner tips improve flame/burning Convert to steam to use existing infrastructure Use as a blend in diesel engines Upgradable to hydrocarbon fuels Multiple Applications for Pyrolysis Oil, a Renewable Fuel Available Today UOP

36 Deoxygenated Product Properties Paraffin, wt% Iso-Paraffin, wt% Olefin, wt% Naphthene, wt% Aromatic, wt% Oxygenate, wt% Biofuel (from mixed wood) Min Max Gasoline Typical Nil Conventional (from petroleum) ULS Diesel Typical Limited by cold flow Nil max Limited by emissions Nil Future Engine Fuels Cold flow properties still important Cetane requirements could be relaxed for new engines Aromatics could be higher without negative emissions impact Oxygenates Could Decrease Particulates Separate Directly into a Gasoline Fuel Process Further into Diesel, Jet or Chemicals

37 RTP TM Economics Fuel Oil Substitute 15.0 Comparison of Cost of RTP Operation to Purchasing Equivalent Amount of Fuel Oil Million $US/year Cost of Buying Equivalent Amount of #2 Fuel Oil 40 $US/MT Feedstock Breaks ~28 $US/barrel Delivered &Dry Feedstock Cost, $US/Metric Tonne Crude Oil Price, $US/barrel 400 BDMTPD RTP, hardwood whitewood feed; 330 days per year #2 Fuel Oil scaled from 28 Nov 08 WTI Spot, 55 $US/bbl, & 1.67 $US/USGal for #2 Fuel Oil, Source EIA Pyrolysis oil contains 55% of energy content of fuel oil, by volume. 15 year straight line depreciation included in cost of operation; $US 30 million RTP ISBL CAPEX Economic Solution for Fuel Oil Substitution UOP

38 Agenda Global Context: Energy Demand Regulations UOP Vision for Sustainable Biomass Infrastructure Technology Solutions: Green Diesel Green Jet Lignocellulosic Conversion paths Summary

39 Summary Renewables are going to make up an increasing share of the energy pool Fungible biofuels enable synergy & refinery expansion Essential to overlay sustainability criteria To achieve sustainability, biofuels must be Done Right. US Military & OEM s driving bio-jet interest Biomass derived fuel and power enable growth of the agriculture sector and improve the rural economy. Important to promote technology neutral and performance based standards and directives to avoid standardization on old technology.

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