20070924 Biofuels R&D-Snyder Chicago Fed.ppt · PDF fileChemical and Biological TechnologyChemical and Biological Technology ... DOE/USDA dit i d ti f iDOE/USDA ... 20070924 Biofuels

Biofuels R&DThe Role of R&D in Agriculture and

Related Industries: Today andRelated Industries: Today and Tomorrow

Federal Reserve Bank of Chicago

Seth Snyder, Ph.D.Chemical and Biological TechnologyChemical and Biological Technology

Argonne National Laboratory

2007 September 24

Ethanol production

Federal Reserve Bank of Chicago 2007 2

Biofuels GrowthC h l d i 6 8 BGYCurrent ethanol production = 6.8 BGYWith expansions = 13.4 BGYEPACT 2005 calls for 7.5 BGY by 2012 (Energy Policy Act)y ( gy y )Presidential and Congressional plans call for upwards of 35 BGY by 2017 “20-in-10”The 2006 State of the Union called for “30-in-30” which is 60 BGYThe 2006 State of the Union called for 30 in 30 , which is 60 BGYin 2030

DOE/USDA di t i d ti f i 12 16 BGYDOE/USDA predict maximum production from corn is 12-16 BGYCorn growers predict ~20 BGY with slow growth from thereMonsanto has reported that corn hybrids we will achieve 33 BGY

Strong need for R&D to achieve national goals!


Why corn? 200Actual

US CORN YIELDBushels per harvested acre

corn

300,000

350,000

164

145

173

150

1751973-2004Trend

1990-2004Trend

1995

250,000

s)

100

1251995-2004Trend

150,000

200,000

tons

/yea

r (00

0s

25

50

75 1990-2004 Trend appears to be above 1973-2004 Trend.

wheat

100,000

2570-71 75-76 80-81 85-86 90-91 95-96 00-01 05-06 10-11 15-16

PRX_Ruikka.xls, PRX 14 N 05

Corn production is increasing much more rapidlyThan feed/food use More available for biofuels

sugar beets sugar canesorghum barley oats

0

50,000


corn wheat sugar beets sugar cane sorghum barley oats

The real cost of oil!

At $60 / barrel crude oil:H d b $0 20 /lb $10 / MM BTUHydrocarbons are $0.20 /lb or $10 / MM BTU

Natural gas is has ranged from ~$5 - $15 MM BTUNatural gas is has ranged from ~$5 - $15 MM BTU

At $0.07 captured dextrose costs:pHydrocarbons are $0.07 / lb or ~$9 / MM BTU

If consumers paid the environmental costs of crude oil directly, prices would be $7 $27/barrel higher Source: Governor’s Ethanol Coalition


be $7 - $27/barrel higher. Source: Governor s Ethanol Coalition

Approximate Current Economics

Process CAPEX ($/annual gal)Process CAPEX ($/annual gal)CTL (w/CO2 sequestration) (1) $4.25-$6.50Starch ethanol(2) $1.00-$1.75Biochemical ethanol(2) $1.85-$3.00Thermochemical ethanol(2) $2.00-$3.00

(1) L. Scully “The Business Case for Coal Gasification with Co-Production, July 2006(2) 30x30 Vision document and references therein* Prepared by Dave Dayton (NREL)


p y y ( )

Products: Petroleum vs. Biobased?Biobased feedstocks are cheaper than petroleum.In petroleum, feedstocks ~75 % of manufacturing costsIn biobased feedstocks 25 % of man fact ring costsIn biobased, feedstocks ~25 % of manufacturing costsWhy?– Water vs organic reactionsBiofuels and biobased productsWater vs. organic reactions– Dilute products– Processing and product recovery costs

Biofuels and biobased products must compete on a cost basis!

What do we need to do?– Better conversions (enzymes, organisms, catalysts)

B i / d– Better separations/product recovery– Better process integration (engineering)– Large volumes of affordable feedstocks (energy crops)


– Large volumes of affordable feedstocks (energy crops)

The Role of R&D:Macroeconomic ImplicationsMacroeconomic Implications

0 6 M

$5 BChemicalI d

$10 BC i 0.6 M

Jobs**Industry

R&DFunding

ChemicalIndustry

OperatingIncome*

$40 BGDP**

$1 BFederalR&D

Funding

Income*

$8 B

FundingIn Chemical

Sciences

The Council for Chemical Research (www.ccrhq.org)

$8 BTaxes**

Basis:*estimated from CCR study

**extrapolated from LANL study by Thayer,

Federal Reserve Bank of Chicago 2007

The Council for Chemical Research (www.ccrhq.org)extrapolated from LANL study by Thayer, et al., April 2005 using REMI economic model

“Measuring Up: R&D Counts for the Chemical Industry

$2 Operating income per $1 R&D invested17% after tax return

Chemical Industry

17% after tax return

Publicly funded science links highly to chemical patents, 6 citations per patentpatents, 6 citations per patent

Basic research to patented invention typically t k 13 16takes 13-16 yearsLag to commercialization from patent is 5+ yearsOverall cycle time of 18-21+ years.

Th C il f Ch i l R h


The Council for Chemical Research

Biofuels, Biobased Products, ChemicalsCommodities that ultimately compete on a cost basis

Lower marginsgProduct differentiation is difficultIncentives are required for R&D investment and growth of the industry

Many of the tools of biotech/biomedical research areMany of the tools of biotech/biomedical research are transferable to biofuels.The value equation is very differentThe value equation is very different


The Federal Cost Share ModelBasic Research

100 % PublicNSF, DOE Office of Science, USDA

Applied ResearchApplied Research80 /20 % Public/PrivateDOE EERE, USDA

D lDevelopment50/ 50 % Public/PrivateDOE EERE

Deployment – First of a kind20/80 % Public/PrivateLoan guaranteesLoan guaranteesDOE EERE

“N” th plants100 % P i

• EERE = Energy Efficiency and Renewable Energy


100 % Private • EERE is the home of the Office of Biomass

Major funding announcements2002 DOE EERE – Biobased Products– $20-50 M– DuPont (PDO – Serona), Cargill, NatureWorks (PLA), etc.

2007 GTL Bioenergy Centersgy– $125 M - 100 % Federal – optional cost shares included– UC Berkeley, Oak Ridge National Lab, U Wisconsin

2007 Cellulosic ethanol – “commercial scale”– Up to $385 M federal/ $1.2 B total– Abengoa, Alico, Blue Fire, Iogen, Poet (Broin), Range Fuels– 11-40 MGY

2007 Loan guarantees– To be announced shortly

2008 10 % scale biorefineries– Under review

Several privately funded centers– BP $500 M Energy Bioenergy Institute


gy gy– UC Berkeley/U Illinois

12

Biofuels funding issues and opportunitiesVC Investment– Khosla Ventures – invested in several companies

Incentives– $0 51 cents/gallon– $0.51 cents/gallon– Extra credit for cellulosic– E85 Vehicles - CAFE requirements

Potential premiums– CO2– Domestic supplyDomestic supply

Potential risks– OPEC – price of crude oil

I f d k i h d i– Infrastructure does not keep up with production• Fuel distribution – rail, barge, pipeline• Exceed need for 10 % blends


f• E85 availability

13

2.5

Energy Balances: The Type and Amount of EnergyBTU required for 1 BTU available at fuel pump

2.0

From Biomass (Solar)From Coal and Natural GasFrom Petroleum

1.5

1.0 Energy in the Fuel

0.0

0.5

0.0Cellulosic EthanolFossil BTU < 0.1

Petroleum BTU = 0.1

Corn EthanolFossil BTU = 0.74

Petroleum BTU = 0.1

GasolineFossil BTU = 1.23

Petroleum BTU = 1.1 * vs. li


CO2 reduction* = 85 %CO2 reduction*= 20 %CO2 reduction* = 0 %

Michael Wang - Argonnewww.transportation.anl.gov/software/GREET/

gasoline

What will the feedstocks be?Now

C t h h l (U S )– Corn starch ethanol (U.S.)– Sugar cane ethanol (Brazil)– Rapeseed (canola) biodiesel (Europe)– Forest residues heat & power (No. America and Europe)

Mid term– Corn starch – continued growth for 1-2 decades– Agricultural residues: Corn fiber, corn stover, etc.

• Cellulase R&D– Forest Products: Paper and pulp mills, black liquor, forest residues

syngas– Oil crops: soybean, canola (upper Midwest), tropical oils

Longer termg– Energy crops – poplar trees, switch grass, etc. – Growth on marginal lands R&D opportunity

• See “Billion-ton study”:


yhttp://feedstockreview.ornl.gov/pdf/billion_ton_vision.pdf

How does nature degrade biomass?

Starch/sugarsGl f i– Its food

Biomass – lignin/cellulose/hemicelluloseFungal degradation slow

Glucose fermentations

Bi h i l i– Fungal degradation – slow– Combustion - fast

Biochemical conversionThermochemical conversion


DOE EERE biomass model

Biochemical & Thermochemical - Need bothActual Volumes(Billion gal/yr)(Billion gal/yr)

150

Thermochemically DerivedBiochemically Derived

100

Grain Derived

3 0 % 2 0 0 4 Gaso lineEnergy Equivalent

f rom Et hano l

50

0Existing &

UnexploitedHigh Yield

Growth But NoHigh Yield

Growth With2004 Motor

Gasoline


Resources Energy Crops Energy Crops

DOE Office of Biomass - Products Analysis

These platform chemicals are multi-billion pound per year

opportunities that could carry through the economythrough the economy

Producing a pound ofProducing a pound of biobased chemicals displaces

a pound of fossil

3-6 Carbon organic acids (mono- and di-carboxylic acids)Ne tral s gar alcohols (e g sorbitol)


Neutral sugar alcohols (e.g., sorbitol)

Opportunities for Succinic Acid Derivatives

Tetrahydrofuran(THF) - 255MM lbs

1,4-butanediol (BDO)- 150MM lbs

Maleic Anhydride- 450MM lbs

150MM lbs

Gamma-butyrolactone(GBL) - 105MM lbs

Fumaric Acid- 35MM lbs Deicers – 10-100MM lbs

Malic Acid- 20MM lbs

n-methyl-2-pyrrolidinone (NMP)

80MM lbs

Sugars SuccinicAcid

- 6 MM lbs

Dibasic Esters- 50MM lbs

- 80MM lbs

4,4-polyesters


Separative BioreactorOrganic

acidproduct

Organicacid

productCells or enzymes are immobilized

in the porous Anode C Cathode

+++

---

---

B A

+++

---

CA

OrganicOrganicanion

in the porous resin wafer

-+++++++

-----

-----

+++++

-----H+

OH-anion

H+

anion

H+

Organicanion Organic

anion++++

----

----

++++

----

H

H+H+

Electroderinse

Electroderinse

Glucose feed

Glucose feed

biocatalyst biocatalystGlucose feed

Glucose feed

A t l IP (k IP i i th b k d)


Argonne controls IP (key IP is in the background)

Conventional Process

Biobased Chemicals

Sugars

Separative Bioreactor

Neutralization

Conventional Process Sugars

Separative Bioreactor

NeutralizationAgent, Lime

Fermentation

Organic Acid Salt

CaSO PrecipImmobilized Biocatalyst

Sulfuric Acid Acidulation

Rotary Drum il

CaSO4 Precip.

Organic Acid

Concentrated Organic Acid

Rotary Drum Filtration

Low Concentration

Filter Aid Filter Press

Waste

Organic Acid Gypsum

• Partnership with ADM

• Costs competitive with petrochemicals!


• Integrates bioprocessing and separations

Syngas fermentations?

H2/CO/CO2Yes you can ferment syngas! Anaerobic bacteriaAnaerobic bacteriaSome of the oldest biological mechanisms in existence

Technical barriersO i d l tOrganism developmentGas/liquid mass transfer

Product titer

• Partnerships with BP and VC funded companies


funded companies

Creating our Biobased FutureIt will take the biochemical and thermochemical routesIt will take the biochemical and thermochemical routes– Feedstock and regional emphasis– Produce every available fuel, chemical, material

There will be multiple commercial opportunities– There will be multiple commercial opportunitiesMaximize product output will minimizing impact/use– Land– Water– Emissions– Infrastructurenf ast uctu e– Capital

Don’t overlookCO– CO2

– SustainabilityTo create the biobased future will take biologists, chemists, and


engineers!

Argonne National LaboratoryThe Advanced Photon Source isAmerica's first national laboratory

Chartered in 1946 from Enrico Fermi’s work on the Manhattan Project.

The Advanced Photon Source is the North America’s most

brilliant X-ray.wo o e ojec .Operating budget of ~$500 millionAs of 2006, Argonne is operated by the UChicago Argonne LLCUChicago-Argonne LLC25 miles southwest of the Loop

S th S d Ph DSeth Snyder, Ph.D. Section Leader

Chemical and Biological Technologyh@ l 630 252 7939

The white deer are native to Northern Africa and Europe and were a gift to Gustav Freund,

[email protected], 630-252-7939


the estate owner in the 1930’s.

Documents

20070924 Biofuels R&D-Snyder Chicago Fed.ppt · PDF fileChemical and Biological TechnologyChemical and Biological Technology ... DOE/USDA dit i d ti f iDOE/USDA ... 20070924 Biofuels