Alpena Biorefinery Update

Vesa Pylkkanen

API Mission

• Produce inexpensive low cost fermentable cellulosic sugars from a variety of feedstocks

AND

• Leverage the power of co-production of cellulosic sugars with other value added products

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Agricultural Residues

Forest Resources

Energy Crops/

Grasses

Biochemical/chemical

Gasification

Pyrolysis

C5 and C6 Sugars

Syngas

Bio-oil

Fermentation

CatalysisEthanol

Biodiesel

Farnecene

Biojet

Biogasoline

Fatty acids Fatty esters

Succinic acid

Squalane

Acrylic acid

Iso butanol, N-butanol

Terpenoids

• Aqueous phase reforming

• Hydro-treating• Alcohol synthesis• Fischer-Tropsch

Sugars are an intermediate feedstockThe production of low-cost, high-purity sugars is a critical

step in producing many bio-fuels, bio-chemicals

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Cellulosic Sugars

Project Summary• The Alpena Biorefinery will convert a biomass steam hydrolyzate to

~894,240 USG/y of cellulosic ethanol and 695,500 USG/y of potassium acetate deicer

• The hydrolyzate is an existing byproduct stream from the adjacent hardboard plant. Presently it is being sent to the WWTP

• This project is a pilot/commercial demonstration of the production of fermentable sugars / cellulosic ethanol and biochemicals from biomass extracted hemicelluloses

• Other feedstocks and biofuel/bio-products will be trialed

• After the demonstration period the biorefinery will remain a viable commercial, on-going operation.

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Alpena Biorefinery•Construction has started•Commissioning 11 / 2011

•7200 T/y of hemicellulose sugars•760,000 gal/yr EtOH•860,000 gal/y Kacetate

•Grants $22 MM

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Project Timeline

• 2007 Conceptual Development

• 1/2008 Initial Agreements

• 8/2008 Feasibility Study – Grant Applications

• 2009 Basic Engineering

• 2010 Detail Engineering

• 2011 Construction

• 11/2011 Commissioning and Start-up

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Project Participants• Partners

• Decorative Panels International• Michigan Technological University• Purdue-Ho Yeast licensed by GTA

• Project Sponsors• State of Michigan – MEDC - $4MM grant• DOE – IBR Grant - $18MM

• Project Management• Engineering: API• Construction: DeVere• Start-up & Commissioning: API• Operations: APER (subsidiary of API)

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apiMAX™ Biorefinery Simulation Model

Design model with inputs from laboratory, pilot, and equipment design and supplier data

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CADSIM Dynamic model

Used to size tanks, operational controls and for operator training

Process Modeling

Equipment Models

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Success Factors & Challenges

• Successful process integration• Continuous dilute acid hydrolysis with sugar yield > 95%.• Continuous co-fermentation of C5 and C6 sugars with ethanol yield >

80% of theoretical• Effective removal of inhibitors - sugar platform for other biofuels /

biochemicals• Plant uptime > 95%• Reverse Osmosis membrane maintenance cost • Cellulosic ethanol production at ~$1/USG• Co-production of sugars/ethanol with other products and process

integration• Lignin removal - proprietary technique• Lime mixing – Gypsum removal – dewatering – proprietary technique• Other acetate co-products

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Benefits-Expected Outcomes

• Environmental sustainability: • The Alpena Biorefinery will make Cellulosic Ethanol and Potassium

Acetate deicer from an industrial waste currently converted to CO2 and sludge via costly waste treatment

• Commercial projects will co-produce ethanol with biomass electricity, at near theoretical highest feedstock yield with low energy and water usage and high investor return

• Rapid replication• Ethanol production cost commercially at <$1.0/USG 1

• Profitable at <10 million GPY• Low entry barrier• Specific CAPEX competitive in commercial replication• Co-production leading to feedstock yield of 135 USG/BDT

1($40/BDT Biomass)

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Green Power+™ Process

Sugar to final product

Steam ExtractionBiomass

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Cellulosic ethanol, butanol, polymers, drop in fuels

Pressing

Washing

Lignin Removal

Evaporation

Hydrolysis

Extraction Module

Sugar Conversion

To Host Facility

HydrolyzateBiomass Boiler

Sugars Value Added Product

Conversion

Acetic Acid Derivatives

Green Power Plus™ Pre-extraction of hemicelluloses prior to biomass combustion

Information developed from patent‐applied for technology and configuration

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Power

BoilerTG Electricity

CND

Biomass1 BDT = $35 1 MWh (1) = $85

Power Boiler TG Electricity

CND

Biomass

Ethanol Module

Extraction Module

Ethanol

1.16 BDT = $40.60

1 MWh = $85

25.5 USG (2)

= $75 - 85

Conventional biomass power generation

Before/After Comparison

Green Power Plus™ Generates 10% Additional Carbon Credits

GP+ Advantages

• Inexpensive source of sugars• Effective theoretical yield to end products• Energy integration with host biomass power plant• Proprietary configuration:

• maximizes sugar yield, • minimizes inhibitor formation• easy lignin removal and return to boiler

• Financially viable at 6 – 10 million GPY ethanol• Minimal technology risk• Low specific and total CAPEX

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GP+ IRR at $60/BDT

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

First Plant First Plant with Acetate

Nth Plant with Acetate

Unleveraged

 IRR %

Biomass at $60

/BDT

SWD 5 MM USG/y

Mixed 8 MM USG/y

HWD 11 MMUSG/y

Biomass Power

Market Potential

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Ethanol potentialU.S. Biomass electricity 2008 6.7 GW 1.36% EIA 2008 1,120                million GPYU.S. Biomass electricity 2020 18 GW 3.60% EIA 2020 2,964                million GPY

Increase 11 GW 1,844                million GPY

Global biomass electricity 47 GW 1.30% IEA 2007 7,909                million GPYGlobal biomass electricity 2050 145 GW 4% IEA 2050 24,336              million GPY

Increase 98 GW 16,426              million GPY

90.96% 1.36%

0.36%

6.04%

0.02%

1.27%

9.04%

Non‐renewable

Biomass

Geothermal

Hydroelectric Conventional

Solar/PV

Wind

Commercialization Route

•2006 – 2009 Lab Tests

•2007 – 2009 Pilot Tests Alpena Michigan

•2012 Demonstration Plant Expansion / Equity Raise

•2011 Commercial Demonstration ~ 1MM USG/y

•2011 - 2012 Develop Commercial Plants

•2013 - 2014 First Commercial Plant Operations

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