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1 Workshop “Energy from Renewables” Budapest, November 29 th , 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario Marchionna Corporate Strategies & Development

1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Page 1: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Workshop “Energy from Renewables”Budapest, November 29th, 2007

Chances and Challenges for the Development of Biofuels

Francesca Ferrazza and Mario Marchionna

Corporate Strategies & Development

Page 2: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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General ScenarioGeneral Scenario

Fossil fuels are expected to dominate the world’s energy supply portfolio for some decade to come.

However, satisfying future energy needs while meeting the challenge of energy security and mitigating the risk of climate change has brought energy conservation to the forefront of public discussion.

Among renewables, wind, solar and biofuels are growing rapidly, albeit from a small base.

Other technologies, such as hydrogen, are considered to hold promise, but face substantial challenges in terms of costs and large-scale implementation.

Page 3: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Eni VisionEni Vision

In the short term, energy-saving-oriented technologies and behaviours are the most economical and practical measures.

Carbon Sequestration and Storage technologies will make use of fossil fuels more sustainable.

In the long term, it will be important to identify energy sources that could be alternative or complementary to fossil energy.

However, most of the current alternative energy sources (especially the renewable ones) are neither economical nor able to secure adequate supply.

R&D investment could generate technological and market discontinuity.

Page 4: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Eni has recently launched a major national communication and education project to stimulate energy saving at family level.

24 virtuous behaviours have been suggested that can enable a four member family to save up to 1,600 Euro at no or affordable cost.

These behaviours would permit an abatement of emissions of about 27 Million t of CO2, i.e. 25% of the Italian gap to the Kyoto target.

Other initiatives are being evaluated within Eni industrial Other initiatives are being evaluated within Eni industrial plants, such as energy recovery from low temperature streams plants, such as energy recovery from low temperature streams through Organic Rankine Cyclesthrough Organic Rankine Cycles

Eni “Energy Saving” ProgramEni “Energy Saving” Program

...consume less, consume better...

Page 5: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Eni Projects for Carbon Sequestration and Eni Projects for Carbon Sequestration and StorageStorage

Explore alternative technical solutions for the total elimination of gas flaring.

Improve energy efficiency in production operations

Assess the potential for safe CO2 storage in aquifers and depleted reservoirs.

Participate in CO2 Capture Project (CCP) together with most of the major O&G companies.

Promote CO2 assimilation in greenhouse plant cultivation.

Eni owns a specific inter-wells seismic technique able to appreciate any fluid movements within the reservoir.

Ability to monitor CO2 injection both at the surface and inside the reservoir is paramount.

Page 6: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Biofuels Production

Solar Energy Conversion

Lipids for biodieselLipids for biodiesel

Conversion Processes

(BtL, hydrogenation)

Conversion Processes

(BtL, hydrogenation)

phytoplankton, micro-algae,

bacteria

phytoplankton, micro-algae,

bacteria

Plants for energyPlants for energy

CO2CO2

Sun lightSun light

BiodieselBiodiesel

Sun lightSun light

Solar energy concentrationSolar energy concentration

New photo-active material,

nanotechnology

New photo-active material,

nanotechnology

Energy efficiencyEnergy efficiency

“Third Generation”PV Systems

“Third Generation”PV Systems

HydrogenHydrogen

E. E. generation via Hybrid CyclesE. E. generation

via Hybrid Cycles

Eni R&D Program “Along with Petroleum”Eni R&D Program “Along with Petroleum”

Page 7: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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BiofuelsBiofuels

Biofuels appear to be the only realistic short term solution to provide a renewable energy alternative to fossil fuels in the transportation sector.

Their liquid nature and compatibility with traditional fuels are their main strength points.

As a fuel product, biofuels offer a number of technical advantages: they are sulphur and aromatics free and have good combustion properties.

However, biofuels have a lower heat content than petroleum derived fuels due to their oxygen content. This means that they are less efficient in terms of fuel economy (km per liter).

Page 8: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Energy Carriers for Transportation FuelsEnergy Carriers for Transportation Fuels

DistributionDistribution

Performance&

Impact on Environment

Final UseFinal Use

CarrierCarrierProductionProduction

ProcessProcess

CarrierCarrierStorageStorage

EnergyEnergySourceSource

Gasoline / Diesel

LPG (DME)

Natural Gas

Electric Power

Hydrogen

Bio-Fuels

Existing infrastructure is a major barrier for any new fuel/energy carrier incompatible with it.

Page 9: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Biofuels : current scenarioBiofuels : current scenario

The European Union requires biofuels (biodiesel + bioethanol) to reach 10% of total automotive fuel consumptions by the year 2020.

US President has announced a target of 15% of the national gasoline pool by the year 2017.

However, the current generation of biofuels cannot be an answer to market demand because of their scale limitations due to cost and large land requirements.

Land use impacts, fertilizer requirements and water use are other important factors to be taken into account when considering the potential of biofuels.

Competition “fuel versus food” is a major issue to be circumvented not to impact on the living of poorer mankind and on the prices of food staples.

Page 10: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Current liquid biofuels are mainly Bio-ethanol/ETBE and Biodiesel

Bio-ethanol Rapeseed BiodieselSugar can

First Generation First Generation BiofuelsBiofuels

Low conversion efficiency

Only a small portion of the biomass is converted to fuel

Low yield per hectare (mainly for bio-diesel)

Low energy efficiency

High production cost

Page 11: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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New Generation BiofuelsNew Generation Biofuels

Current biofuel’s limitations are a technological challenge, stimulating intensive R&D efforts towards omnivorous, efficient conversion technologies able to:

use massive low cost resource (e.g. agriculture/forest waste, wood, grass, cane, etc.)

make the most of the biomass resource

integrate with manufacturing infrastructure

convert biomass to market compatible fuels (e. g. gasoline, diesel)

be linked to distribution infrastructure

be sustainable and economical

Page 12: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Eni positionEni position

• Direct involvement in biofuel production is planned by Eni in the next future

• Eni’s vision is that only 2nd generation biofuels will have the possibility to gain significant shares of transportation fuel market

• Strong R&D actions are necessary to overcome current problems:

high costs

energy balance (often questionable)

competition with food crops

induced environmental damages (e.g. deforestation)

low conversion efficiency

unwanted side products

Page 13: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Eni R&D activity on biofuelsEni R&D activity on biofuelsShort term approachShort term approach

EcofiningTM process

new technology, developed together with UOP, based on hydro-treating

high performance product, better than conventional biodiesel

no glycerol as side product

full scale demonstration plant (250 kt/y) planned to be completed in an Italian refinery by 2010

Page 14: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Eni R&D activity on biofuelsEni R&D activity on biofuelsMedium to long term approachMedium to long term approach

Biomass to Liquids biomass gasification followed by biofuel synthesis compatible with ligno-cellulosic biomass full use of input biomass strong technical background

High yield biomass for energy use only database on biomass and relevant conversion routes

Micro-organism based biofuels no competition with edible crops extremely high productivity demo plant currently under evaluation

Page 15: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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2nd Generation Biofuels

Second generation biofuels are needed to close the gap:

Require massive low cost resource

Ag./forest waste, wood, grass, cane, …

Want omnivorous, efficient conversion technology

Makes the most of the resource

Should integrate with manufacturing infrastructure

Linked to distribution infrastructure

Need conversion to market compatible fuel

Gasoline, Diesel

Other issues: sustainability, economics

Page 16: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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22ndnd Generation Biofuels Generation BiofuelsBiomass conversion RoutesBiomass conversion Routes

BTLFischerTropsch

SynthesisGasificationBIOMASS

Vegetable Oil

Hydro processing

Green Diesel

OIL SEEDS

Page 17: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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EcofiningEcofiningTMTM process process

• Alternative to conventional esterification, without glycerol co-production

• High quality product (high heating value and cetane number, low density)

Esterification(conventional)

Hydroprocessing(Green Diesel)

VegetableOil

Methanol

VegetableOil

Hydrogen

Biodiesel

Glycerol

Green diesel

FEED PROCESS PRODUCT

Esterification(conventional)

Hydroprocessing(EcofiningTM)

VegetableOil

Methanol

VegetableOil

Hydrogen

Biodiesel

Glycerol

FEED PROCESS PRODUCT

A joint effort of UOP and Eni to develop a processing route to convert A joint effort of UOP and Eni to develop a processing route to convert

vegetable oil to high quality diesel using conventional hydroprocessing vegetable oil to high quality diesel using conventional hydroprocessing

technology that is already widely deployed in refineries and utilizes the technology that is already widely deployed in refineries and utilizes the

existing refinery infrastructure and fuels distribution system.existing refinery infrastructure and fuels distribution system.

Page 18: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Biomass to Liquids (BTL)Biomass to Liquids (BTL)

• Target: processes based on biomass gasification followed by liquid biofuel synthesis (in principle: FT diesel, DME and alcohols)

• Activity: feasibility studies (economic analyses, energy balances, LCA) based on literature data and internal know-how

• Eni’s background:

Fischer-Tropsch synthesis proprietary technology development (20 bpd pilot plant scale operating)

deep knowledge of refinery residue gasification technologies (Shell and Texaco) and of Methanol/DME production process, through engineering subsidiary Snamprogetti

Page 19: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Growing biomass by means of micro-organisms (such as phytoplankton, micro-algae, bacteria) to produce lipids suitable for conversion into diesel fuel.

CO2 produced from power station and industrial plants can be

used to feed the process (CO2 recycling and biofixation).

Biomass Collection

Lipid Extraction

Conversion to Green Diesel

A promise of high productivity

CO2

Open ponds, fotobioreactors or

hybrid systems

33rdrd Generation Biofuels Generation Biofuels

Page 20: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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High yield biomass for energy use onlyHigh yield biomass for energy use only

• Eni’s Activity: data collection on high yield biomass for energy use only and relevant conversion routes

performances and requirements (productivity, soil quality, etc.)

production cost evaluations

energy balances

LCA

• These data will provide input data for feasibility studies on biomass exploitation, addressing production costs and energy and environmental performances (CO2 recycle capability)

Page 21: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Micro-organism based biofuelsMicro-organism based biofuels

• Activity: development of a new generation of high performance, environmentally compatible biofuels based on micro-organisms such as phytoplankton, microalgae, yeasts and bacteria

micro-organism study and selection

process developmentB

ioreactor

Polluted water

Treated water

Flue gases

CO2 depletedflue gases

Algae for biofuel production

solar

radiation

Bioreactor

Polluted water

Treated water

Flue gases

CO2 depletedflue gases

Algae for biofuel production

solar

radiation• Feasibility studyFeasibility study in in

progress on a demo plant progress on a demo plant for the production of for the production of high-yield microalgae, high-yield microalgae, which in turn produce which in turn produce vegetable oils for the vegetable oils for the manufacture of biofuelsmanufacture of biofuels

Page 22: 1 Workshop “Energy from Renewables” Budapest, November 29 th, 2007 Chances and Challenges for the Development of Biofuels Francesca Ferrazza and Mario

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Potential breakthrough might come from development of plants fully dedicated to energy use:

jatropha curcas in India/Indonesia

switchgrass in the USA

Further DevelopmentsFurther Developments