Emerging technological innovation systems for second generation

Emerging technological innovation systems

for second generation biofuels in Norway

Antje Klitkou & Arne Fevolden

COBREN: Copenhagen Biofuels Research Network

International Conference on Governing Sustainable Biofuels: Markets, Certification and Technology

Copenhagen, 19-20 November 2012

19-20 Nov 2012

http://cobren.wordpress.com/

Content

Background: – Norway is a leading nation in renewable energy sources and climate change mitigating

technologies

– Nevertheless, Norway faces problems in developing new technological solutions for

second generation biofuels (2GB) technologies.

Research question: – This paper investigates the main impediments preventing Norway from succeeding in

second generation biofuels, and what can be done to improve the situation.

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2012 Klitkou & Fevolden 2

Theoretical perspective

Technological innovation system: – “a network of agents interacting in the economic/industrial area under a particular

institutional infrastructure and involved in the generation, diffusion and utilization of

technology” (Carlsson & Stànkiewicz, 1991, p. 94)

Seven functions: 1. Entrepreneurial activities

2. Knowledge development and learning processes

3. Knowledge diffusion through networks

4. Guidance of the search

5. Market formation

6. Resource mobilisation

7. The creation of legitimacy and counteracting resistance to change

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2012 3 Klitkou & Fevolden

Methodology

Event analysis:

– “It encompasses continuous and discontinuous causation, critical incidents, contextual

effects and effects of formative patterns” (Hekkert et al., 2007).

A case database has been created

– Data input – reports, technical news, newspaper articles, research projects, governmental

publications, the IEA Global Renewable Energy Policies and Measures database and

national legal documents

– The case database includes the year or time period when the event took place, the event

category, the related function in the TIS and if the event had a positive or negative impact

on the development of the TIS.

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Event History

The event history of the emerging 2GB TIS in Norway can be divided into

three periods: – 1998–2005

– 2006–2007

– 2008 up to now

Four companies are the focus of attention in these case studies: – Cambi AS

– Norske Skog/Xynergo

– Weyland AS

– Borregaard AS

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Technological background

Weyland – bio-chemical path

Borregaard –bio-chemical path

Xynergo – thermo-chemical

path

Cambi – anaerobic digestion

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Cambi

First period, 1998–2005: – Cambi changed from focusing on pellet production to the production of biogas by

anaerobic digestion of bio-solids and biowaste

Second period, 2006–2007: – Cambi developed more ambitious facilities (e.g. Verdal)

– Cambi’s technology was still not being used for producing biogas for transport

– Problems with sorting out non-biological waste from the feedstock undermined the

efficiency of the process, increased odour problems and led to negative publicity

Third period, 2008 up to now: – Cambi embark on international expansion and signed contracts to build larger biogas

facilities all over the world: in the U.S., Chile, the Middle East, and the Baltic countries.

– Cambi started the construction of a facility in Oslo that should be able to supply 135

busses with biogas from biowaste

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Weyland

First period, 1998–2005: – At the University College of Bergen two researchers developed a new technology for the

production of bioethanol.

– They established Weyland AS in 2001 with the intention to commercialise this technology

Second period, 2006–2007: – RCN also funded a pilot project for Weyland AS on 2GB

Third period, 2008 up to now: – October 2010, Weyland launched a pilot facility for 2GB with a technology based on the

usage of residuals and the re-use of strong acids

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2012 Endres i topp-/bunntekst 8

Xynergo

First period, 1998–2005: – A report delivered by KanEnergi at the end of 2005 recommended that the production of

synthetic biodiesel based on forest residuals could be a feasible strategy for Norske Skog

Second period, 2006–2007: – Hydro collaborated with Norske Skog in a feasibility study on biodiesel and Norske Skog

explored possibilities for cooperation with Choren in Germany.

– Choren has been engaged in the development of an advanced BTL process based on

gasification of woody biomass and a FT synthesis into synthetic diesel

Third period, 2008 up to now: – 2008 Norske Skog established a new subsidiary producing BtL-diesel, Xynergo, based on

their collaboration with the technology provider Choren in Germany

– November 2010, Norske Skog decided to shut down Xynergo because of a lack of risk

capital and lacking technology details

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Borregaard

First period, 1998–2005: – For several decades Borregaard has produced bioethanol as a bi-product from its biorefinery

– Borregaard has developed the concept of a biorefinery over many years, where the production of

2GB is integrated with the production of other more valuable chemicals

– RCN funded R&D project on chemical processing of dry wood chips

Second period, 2006–2007: – R&D on new pretreatment process

Third period, 2008 up to now: – Patenting of Lignocellulosic biomass conversion by sulfite pretreatment

– 2009 EU funding for 3 projects: EuroBioRef, Suprabio, Sunlibb

– 2009 LCA of production of cellulose, ethanol, lignin and vanillin, Environmental Product Declaration

– 2010 funding from Innovation Norway’s environmental technology support scheme

– Usage of 20 million litres of bioethanol annually in Oslo busses

– Use of residuals and wastewater

for energy production

– Pilot facility for the new

BALI process - start in 2012

allows low cost hydrolysis of

cellulose

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2012 10

DigesterDebarking

Bleachingplant

Pretreatmentand various

process units

Ligninplant

Dehydration

Dryer

Dehydration

Prod

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tim

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and

woo

dch

ips,

incl

. tra

nspo

rt

Prod

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onan

d tr

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emic

als

Energy system; boiler

house and combustion

plants

Prod

ucti

onan

d tr

ansp

ort o

fene

rgy

carr

iers

Production and transport ofchemicals

Production and transport ofchemicals

Steam

Electricity

Variousproducts

Ethanol 96%

Ethanol 99%

Cellulose

Lignin

Vanillin

Hot water

Ethanol plant

Use

d by

all p

lant

s

Vanillin plant

Klitkou & Fevolden

Source: Brekke & Modahl, 2012

Conclusion I

1. Technological barriers are related to processes which are not fully

understood or at least unproven commercially. Examples are: – processes for BtL-production with Choren technology, which have not been demonstrated

commercially

– low conversion efficiency of biochemical ethanol and the related greater need for chemical

and material inputs

– processing waste feedstock of varying quality for producing biogas and related odour

problems.

2. Economic barriers occur because of: – lacking markets for 2GB due to low prices for fossil fuels

– the need for coordination between public and private actors in quite complex value chains,

especially for biogas

– restricted access to feedstock for biogas

– the need for new infrastructure for biogas production, distribution and retail

– a lack of risk capital for demonstrating the viability of the technology at larger scale.

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Conclusion II

3. Legitimacy barriers are related to: – negative social and environmental impacts associated with first generation biofuels, which

led to significant debate about providing subsidies for such industrial activities

– legitimacy for biodiesel being threatened by reports on health risks

– public awareness about the potentials of biogas being rather low

– legitimacy for biogas struggling with odour problems caused by feedstock.

4. Political barriers are related to: – insufficient political framework conditions which have only recently given more substantial

financial support to 2GB

– inconsistent policy, such as tax exemptions for biofuels or carbon pricing, over time, but

also policy variation between 2G biodiesel, bioethanol and biogas

– resistance to change because of the dominance of the Norwegian petroleum and gas

sector.

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Documents

Emerging technological innovation systems for second generation