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Commercializing Cellulosic Ethanol Technology Kyle Althoff Director of Feedstock Development [email protected] March 30, 2010 Dupont Danisco Cellulosic Ethanol

Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

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Page 1: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

Commercializing Cellulosic Ethanol Technology

Kyle AlthoffDirector of Feedstock Development

[email protected] 30, 2010

Dupont Danisco Cellulosic Ethanol

Page 2: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

2www.ddce.com

Overview

► Introduction►Market►Sustainability►Technology►Demonstration Plant►Commercialization Plan

Page 3: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

3www.ddce.com

Introduction to DDCE

50/50 JV of DuPont and Danisco initiated in May 2008 $140 million investment over 3 yearsLegacy IP to develop and deploy CE technology

Commercial deployment•

25-50 MGY cob plant in Midwest in 2013

Energy Crop Biorefinery

in 2014

Demonstration plant operational in Vonore, TN

License comprehensive solutions for CE•

Engineering package with on-site biocatalyst production

Page 4: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

4www.ddce.com

Market Drivers – RFS

EISA thresholds: Cellulosic biofuels must achieve 60% reduction in GHG compared to baseline 2005 petroleum lifecycle emissions

Final rules published in Feb 2010Biochem conversion results in: 110% reduction using Switchgrass130% reduction using Corn Stover

RFS2 will reduce GHG emissions by more than 138 million metric tons per year by 2022

Page 5: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

5www.ddce.com

Market for Cellulosic Biofuels RINs will be key driver

Page 6: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

6www.ddce.com

Market for Cellulosic Biofuels RINs will be key driver

Page 7: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

Feedstock Availability & Process Compatibility

Corn Cob

Switchgrass

Sorghum

Sorghum or Switchgrass

FeedstockTons/Acr

e

BGY 

Potential

Area (sq. 

miles)

DDCE 

Pretreat

Performance

Cobs 0.7 2 60,000

Switchgrass 10 6 12,000

Sorghum 15 5 6,250

Page 8: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

8www.ddce.com

Tennessee Biofuels Initiative

Demonstrating the establishment of a dedicated biomass energy crop supply chain with farmers

Demonstrating the pre-commercial production of ethanol from switchgrassDeveloping a viable sustainable, long-term path to commercialization of cellulosic biofuels in TennesseeEstablishing premier long-term research capability in bio-energy and bio-products

Established 2,600 acres of switchgrass to date and expanding to over 6,000 acres in 2010

Page 9: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

9www.ddce.com

GHG Benefits of Cellulosic Ethanol

‐20

0

20

40

60

80

100

Conventional Gasoline DDCE Baseline

Well‐to‐Whe

el GHG Emission

s (g CO2‐eq

/MJ)

Bars mark range of GHG 

results observed in LCAs

of a 

variety of cases.

RFS2 Threshold for Cellulosic Ethanol

Page 10: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

10www.ddce.com

The Overall Design of the Biorefinery

whole  stillage

Page 11: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

11www.ddce.com

Pretreatment Overview and Focus

Process rationale – low costMild conditionsMinimal formation of inhibitory compounds

Reduction of acetic acidNo neutralization or “detox” steps required

Process conditions <12% Ammonia, <150 C, <10 atm , <30 minutes

Current focus is on the development & optimization of the design for commercial plants

Page 12: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

12www.ddce.com

Enzyme Improvements

Objective: Improved sugar yield with reduced enzyme loadEfficient conversion of cellulose and hemicellulose to fermentable sugars Enzyme advancements supported by Danisco’s innovation ability – discovery, improvement and productionBusiness model provides for lower cost with on-site enzyme production Progress to date:

2X improvement in xylose release50% reduction in enzyme load

Page 13: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

13www.ddce.com

Scalability of Hydrolysate Fermentation

Process technology proven at pilot scale

Scale up from 150 ml to > 200L

Page 14: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

14www.ddce.com

Technology Status – Key Metrics

InitialMay 2008

StatusNov 2009

Commercial Target

SELECT INPUT VARIABLESEnzyme Cost (% of original) 100% 50% 22%

CAPEX - 2008$ per Gal $8+ $5 to $7 ~$3 to $5

PROCESS RESULTSTotal process yield - Gal/T 67 85 90

Ethanol Titer - g/L 63 82 90

COM - $/Gal ~ $3.00 <$2.00 $1.50

Page 15: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

15www.ddce.com

Demonstration-Scale Plant Vonore, Tennessee

Joint investment incl. $40 M from TN250,000 gal/yr nameplate capacity 74,000 sq ftPDU, pelletizer on siteApplications lab/ support capability Focus on optimal US feedstocks: corn cob and switchgrassFunctions:•

Applications lab•

Customer service•

Troubleshooting•

Customer training•

Advance technology

Page 16: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

Demonstration Plant:July 2009

Page 17: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

Vonore Grand OpeningJan 29, 2010

“Grassoline plant is hatchery for big refineries” –

Associated Press, Jan. 29, 2010

Demonstration PlantDecember 2009

Page 18: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

18www.ddce.com

Commercialization & Deployment

DDCE License strategyDevelopment of licenses

Broad experience in developing and implementing technology licensesLicensing group is staffed with experience managers

Currently marketing Beta Licenses to obligated partiesAllows obligated parties to take advantage of existing incentives to de-risk their investmentEngineering packages in progress

Formal licenses ready in 2013Market to all market segments

DuPont and Danisco may partner with licensee’s on investmentProvide equity and support to build out industry

DDCE strategy based on and supported by decades of DuPont & Danisco successes

Page 19: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

19www.ddce.com

DDCE Accelerating Progress Across the Value Chain

Major technology components in placeDemonstration unit operationalCommercial-scale

Basic Engineering Design PackageSite selection

Development of feedstock infrastructureSustainability is an essential element of value propositionCE at cost parity to Gasoline on an energy basis provides market pullDDCE has strategic endurance and is committed to building this industry

Custom License packages allow early adopters to take advantage of incentives to de-risk investment

Page 20: Commercializing Cellulosic Ethanol Technology€¦ · Overview Introduction Market Sustainability Technology Demonstration Plant ... Market Drivers – RFS EISA thresholds: Cellulosic

Thank You!

Kyle AlthoffDirector of Feedstock Development

[email protected]

Dupont Danisco Cellulosic Ethanol