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Building a Biomass to Sugar Value Chain Supports Cluster Development in Canada
Dr. Murray McLaughlin,
Executive Director
Bioindustrial Innovation Canada
June 17, 2016
Prince George, BC
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Outline of Presentation
Story of Corn Stover Project
The Opportunity
The Studies
The Process Stages
Forestry and biomass markets
The value chain
Summary
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Project initiated in 2012 to assess the value that could be created within this value chain
Participation along value chain from agriculture to the chemistry industries
Field trials and sugar extraction testing conducted
Costs were assessed transparently in various business models
Significant interest was generated within the agricultural community
“Seeds of trust were planted”
Corn Stover to Sugar Value Chain Initiative A Concrete Step towards a Relationship
University of Guelph, Ridgetown College 08-08-13
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Corn Stover to Sugar Value Chain Initiative Biomass available for full scale commercializaton
Located within Ontario’s Agricultural Heartland
– 45% of soybeans and corn within 100km
Five County Region around Sarnia – corn yields comparable to Iowa – more than 1 million bone-dry tonnes
sustainably harvestable corn stover available (2009)
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Vision: • An operating agricultural biomass to end-products supply chain
by 2020 which is profitable and sustainable for all participants
Target: • Construction of a cellulosic sugar conversion plant in Southern
Ontario by 2018 processing up to 250,000 tonnes of agricultural residue
Project Timing and Cost: • Sixteen month project (Nov 2014 to Feb 2016) costing $500,000
Contributors: • Consumer Group Partners: BioAmber, IGPC, Jungbunzlauer • Supply Side Partners: GFO, CSP Cooperative, OFA • Government: Agricultural Adaptation Council (AAC) - $300K
Alberta Innovates - $50K • Bio-industrial Innovation Canada (BIC), Ontario Agri-Foods
Technology (OAFT)
Agricultural Producers
Biomass Conversion
Chemical Building Blocks
Renewable End
Products
Reuseable, Recycleable Residuals
Development of Cellulosic Sugar Production Capacity Raw material sourcing anchors creation of value chain
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Process: • 19 technology providers screened vs. decision criteria • Samples from 8 providers analyzed vs. consumer group
specifications and performance under micro-fermentations • 8 sites visited • 4 technology providers selected for biomass processing
trials and further validated for product quality, mass and energy balance, process efficiencies, economics
• Existing agricultural Cooperative would partner with a technology provider to commercialize first cellulosic sugar production facility
Outcome: • BIC provided recommendations to CSP Cooperative • CSP Cooperative engaged with COMET Biorefining Inc to
develop a business case for the Farm to Sugar Value Chain
Agricultural Producers
Biomass Conversion
Chemical Building Blocks
Renewable End
Products
Reuseable, Recycleable Residuals
Development of Cellulosic Sugar Production Capacity Project process and key outcomes
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Project Timing and Cost: • Four month project duration from Dec 2015 to March 2016 • Total project cost of $110,000
Contributors: • Technology Partner: COMET Biorefining Inc. • Supply Side Partner: Cellulosic Sugar Producers Cooperative
with support from Agris Co-operative
• Government: Agricultural Adaptation Council (AAC) - $50,000 • Bio-industrial Innovation Canada (BIC), OAFT
Outcome: • Develop a business case for a supply chain to cellulosic sugar
plant processing 75,000 tonnes/year of corn stover • If appropriate, develop and market an Offering Statement for the
Cellulosic Sugar Producers Cooperative
Agricultural Producers
Biomass Conversion
Chemical Building Blocks
Renewable End
Products
Reuseable, Recycleable Residuals
Farm to Sugar Value Chain Business Case Second Project Initiated to Create Offering Statement
Aggregation, Transportation and Storage Logistics Active Management is Critical to Control Costs
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Current Status: • Cooperative approved the jointly developed business plan for the
agricultural biomass to sugar value chain • Cooperative signed an MOU with Comet Biorefining to collaborate on
the development of a sustainable agricultural biomass supply chain in southwestern Ontario
• Comet selected Sarnia as the location for its commercial scale biomass-derived sugar facility consuming 60,000 dry tonnes of corn stover or wheat straw
Next Steps: • Conduct initial meetings with selected small groups of producers • Create and gain approval of an Offer Statement to support an equity
raise • Complete equity raise and finalize supply agreements (Fall 2016) • Initiate Cooperative operations and establish the biomass supply chain
with first partial harvest planned for Fall 2017
Building a Biomass to Sugar Value Chain in Canada Current Status and Next Steps
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• 80% of Ontario soybeans and corn within 200km
Sarnia Hybrid Cluster
Bio/Renewable Based • BioAmber • Cargill • Enbridge • Greenfield Energy • Methes Energy • KmX • Solutions4CO2 • Suncor Ethanol • Woodland Biofuels • Greencore Technologies • Comet
Fossil Based Air Products BP Energy CF Industries DuPont Ethyl Corporation Exxon-Mobil LANXESS NOVA Chemicals Ontario Power
Generation Pembina Praxair Royal Dutch Shell Styrolution Suncor Energy TransAlta Energy
“
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Connectivity and Partners to Share Success
Canadian Industry Public Sector and Not for Profit
International
A Sample of our Connectivity through Established Relationships
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Global Relationships with Accelerators and Cluster Builders
Bio-based Delta (Netherlands) CLIB (Germany) Malaysian Biotechnology Corp.
(Malaysia) Life Sciences Queensland
(Queensland, Australia)
eGoliBIO Lifesciences Incubator (South Africa)
Foro Argentino de biotecnologia (FAB) (Argentina)
MBI (Lansing, Michigan)
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What Does this Mean for Forestry
Forestry is Biomass
We need to Value Add
Wood can Produce Sugar
Who are the partners for sugar
A new industry – bio-based chemicals
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Global Trends Give Canada a Leadership Position
Biomass is the Key Ingredient and Canada has Large amounts of Agricultural and Forestry Biomass
Forestry Agriculture
Corinne Young LLC l Sweetsers Building, 459 Washington St, 2nd Floor l Duxbury, MA 02332 l O: 781-452-7247, C: 781-686-2226 l [email protected]
Key Considerations: – Food versus Fuel debate is dominating
the biomass discussions • current chemicals and materials segment
consumes < 4% of total carbon but generates > 40% of value-added
• biomass directed towards chemicals and materials will provide best economics for successful commercialization
– Canada has abundant and globally competitive biomass available (agricultural and forestry)
Opportunity to maximize value of biomass by focus on bio-based chemicals and materials
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Biomass Conversion Pathways:
$100B opportunity with commercialization challenges
Reference: NREL&PNNL: “Top Value Added Chemicals from Biomass”, August 2004
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End User
Primary Chemicals
Advanced Manufacturing Finished
Products
Fuels Fossil-based Feedstock
Polymers Chemicals
Bio-based Feedstock
Biomaterials
Integrating into the Hybrid Chemistry Value Chain The key to growing a sustainable bioeconomy
Biojet fuel
Ethanol Butanol
Biodiesel
Cellulosic sugars
Succinic acid iso-Butanol Levulinic acid Lignin
Lignin NCC Natural fibres
Summary-Building a Sustainable Future with the Bioeconomy
CANADA can take a global leadership position in the Bioeconomy Biobased chemicals and biomaterial are the opportunities Agriculture, Forestry and Waste are the sources for conversion materials Biomass to Sugars is an Opportunity Home grown technologies and international attraction will establish the bioeconomy companies The outcome will be rural development and jobs for the 21st century through cluster development But to make this all work we need leaders with VISION – let’s get out there and lead
