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1 | Bioenergy Technologies Office BIOENERGY TECHNOLOGIES OFFICE Energy Manufacturing Workshop May 11, 2015 Jonathan Male Director, Bioenergy Technologies Office (BETO)

Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

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Page 1: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

1 | Bioenergy Technologies Office

BIOENERGY TECHNOLOGIES OFFICE

Energy Manufacturing Workshop May 11, 2015

Jonathan Male

Director, Bioenergy Technologies Office (BETO)

Page 2: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

2 | Bioenergy Technologies Office

I. Overview

II. Bioenergy Technologies Office’s Goals and Mission

III. Risks and Innovation

IV. Program Accomplishments and Current Program Activities

V. New Areas of Interest

VI. A Bioeconomy

VII. Upcoming Events

Outline

Page 3: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

3 | Bioenergy Technologies Office

Office of Energy Efficiency and Renewable Energy

Page 4: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

4 | Bioenergy Technologies Office

Accelerate the commercialization of advanced biofuels and bioproducts through targeted research, development, and demonstration supported by public and private partnerships

Develop technologies to enable the sustainable, nationwide production of biofuels compatible with today’s transportation infrastructure

Strategic Goal

Bioenergy Technologies Office

By 2017, validate a least one pathway for $3/GGE* hydrocarbon biofuel (with ≥50% reduction in GHG emissions relative to petroleum)

Performance Goal

*Mature modeled price at pilot scale.

Mission

Through RD&D, BETO reduces risks and costs to commercialization

Page 5: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

5 | Bioenergy Technologies Office

The Challenge and the Opportunity

Biofuels could displace 30% of liquid transportation fuels

THE OPPORTUNITY

More than 1 billion tons of biomass could be sustainably produced in the U.S.

1 billions tons of biomass could displace 30% of U.S. petroleum use by 2030, and reduce 400M tonnes of CO2e.

THE CHALLENGE

U.S. gasoline consumption is 8.5 million barrels/day

67% of U.S. petroleum consumption is in the transportation sector

Page 6: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

6 | Bioenergy Technologies Office

Strategic Communications • New Communications

Vehicles & Outlets • Awareness and Support of

Office • Benefits of

Bioenergy/Bioproducts

Bioenergy Technologies Office’s Core Focus Areas

Research, Development, Demonstration, & Market Transformation

Feedstock Supply & Logistics R&D • Terrestrial • Algae • Product

Logistics Preprocessing

Conversion R&D • Biochemical • Thermochemical • Deconstruction • Biointermediate • Upgrading

Demonstration & Market Transformation • Integrated

Biorefineries • Biofuels

Distribution Infrastructure

Sustainability • Sustainability

Analysis • Sustainable

System Design

Strategic Analysis • Technology and

Resource Assessment

• Market and Impact Analysis

• Model Development & Data compilation

Cross Cutting

Program Portfolio Management

• Planning • Systems-Level Analysis • Performance Validation and Assessment • MYPP • Peer Review • Merit Review • Quarterly Portfolio Review

• Competitive • Non-competitive • Lab Capabilities Matrix

Page 7: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

7 | Bioenergy Technologies Office

Assistant Secretary Dr. David Danielson’s Five Questions

• HIGH IMPACT: Is this a high impact problem?

• ADDITIONALITY: Will the EERE funding make a large

difference relative to what the private sector (or other

funding entities) is already doing?

• OPENNESS: Have we made sure to focus on the broad

problem we are trying to solve and be open to new

ideas, new approaches, and new performers?

• ENDURING U.S. ECONOMIC BENEFIT: How will this EERE

funding result in enduring economic benefit to the

United States?

• PROPER ROLE FOR GOVERNMENT: Why is what we are

doing a proper high impact role of government versus

something best left to the private sector to address

on its own?

INNOVATION

Page 8: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

8 | Bioenergy Technologies Office

Key Challenge for Innovation Involves Lowering Risks

De-risking technologies is central to R&D through demonstration that addresses greater integration and scale:

• BETO is focusing on advancing renewable gasoline, diesel, and jet fuels technologies. • Technical, construction, operational and financial/market risks.

Key Challenges

Biomass Pretreatment Conversion Product

• Reliable supply • Consistent quality • Affordable delivery

• Biomass feeding, sizing and moisture

• Solids handling • Construction materials

• Products Yields • Construction materials • Catalysts • Fermentation organisms

• Separations • Catalytic upgrading • Recycle loops

Page 9: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

9 | Bioenergy Technologies Office

FY15 Program Activities and Goals

Feedstocks: Demonstrate a modeled mature delivered feedstock cost of $115 per dry matter ton (including both grower payment and logistics).

Algae: Demonstrate integrated protein and carbohydrate conversion with target of 80% of theoretical yield from proteins and carbohydrates. Demonstrate an increase in algal intermediate yields (1,500 gallons/acre/year).

Demonstration and Market Transformation: Increase portfolio to include 3 novel technology demonstrations to reduce risk of scale up of emerging bioenergy pathways.

Biochemical Conversion: Reduce modeled conversion cost via a biochemical (hydrolysis) conversion route to hydrocarbon fuel blendstocks in support of the 2022 programmatic goal of $3/gal for drop-in fuels such as renewable gasoline, diesel, and jet fuel [$6.40/gallon of gasoline equivalent (gge)].

Thermochemical Conversion: Reduce the modeled conversion cost contribution via fast pyrolysis for converting biomass to a hydrocarbon fuel blendstock in a mature commercial-scale plant. [$3.70/gallon of gasoline equivalent (gge)].

Sustainability: Identify practices that improve sustainability and environmental performance of advanced bioenergy, including results from a comprehensive case study of environmental, social, and economic sustainability indicators for a cellulosic feedstock production and biorefinery system.

Collaborations with the Vehicle Technologies Office: Test fuels and develop better engines for high octane fuels.

Page 10: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

10 | Bioenergy Technologies Office

- Completed Projects - Active Projects

- iPilot Projects

The Demonstration &

Market Transformation

(DMT) Program manages a

diverse portfolio of

projects focused on the

scale-up of advanced

biofuel production

technologies from pilot- to

demonstration- to pioneer-

scale.

Currently, 18 biorefineries

are considered active and

utilize a broad spectrum of

feedstocks and conversion

techniques.

For more information visit: www.energy.gov/eere/bioenergy/integrated-biorefineries

Map of Active and Completed BETO-funded Projects

Demonstration Portfolio – Overview

Logos

Amyris

Elevance

Rentech

GTI

Verenium

Page 11: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

11 | Bioenergy Technologies Office

Valley of Death

BETO supports cost shared first-of-its-kind facilities to de-risk new technologies and bring industry past the valley of death.

Leve

l of

Inve

stm

en

t

Page 12: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

12 | Bioenergy Technologies Office

DOE’s Current Role on the Global Biorefinery Industry

1 Bacovsky, Ludwiczek, Ognissanto, Wörgetter Status of Advanced Biofuels Demonstration Facilities, IEA Task 39-P1b March 2013

The FY15 DMT FOA

• Funding to produce 6 - 8 project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. – Pilot DOE cost share – up to $2

million DOE.

– Demonstration DOE cost share – up to $4 million DOE.

– Validation of technology against TRL definitions will be required.

– R&D at TRL-6 ready for TRL-7 Pilot.

– TRL-7 Pilot ready for TRL-8 Demonstration.

Page 13: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

13 | Bioenergy Technologies Office

Cellulosic Ethanol Demonstration Portfolio – Selected Projects

Abengoa Bioenergy, Hugoton, KS • Expected to produce 25 million gallons per year and 18 megawatts of green

electricity at full capacity.

• Anticipated job creation: 70 during operation and >1,100 during peak construction.

• Energy self-sufficient – creates enough heat and power to support itself.

• Mechanical completion is scheduled for July 2014; Commissioning for CY2014.

• DOE Share = $100M (EERE) and $135M DOE loan guarantee; Equity: >$400M.

POET-DSM Project LIBERTY, Emmetsburg, IA • Expected to produce 20 million gallons per year at full capacity.

• Anticipated job creation: 35 during operation and >200 during peak construction.

• Demonstrates commercial viability of lignocellulose-to-ethanol process.

• Major construction began in November 2012, start of commercial production is scheduled for Q4 FY2014.

• DOE Share = $100M; Cost share = $130M; joint venture with DSM.

INEOS, Vero Beach, FL • Expected to produce 8 million gallons per year and 6 MW of power from

wood and vegetative waste.

• DOE Share = $50M; Cost share = $82M.

• Created 400 construction jobs; 65 permanent jobs are expected for operation.

• Major construction began in October 2010, commissioning was completed

in June 2013, and the facility initiated in July 2013.

• First commercial production of cellulosic ethanol in the U.S.

Page 14: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

14 | Bioenergy Technologies Office

Demonstration Portfolio – Selected Projects

American Process, Inc., Alpena, MI • Feedstock: waste stream from hardboard

manufacturing Capacity: 894,200 gal/yr of cellulosic ethanol (from C6 sugars) and 696,000 gal/yr of aqueous potassium acetate (De-Icer) (from C5 sugars).

• Accomplishments: o First batch of cellulosic ethanol produced in FY14.

• DOE share: $22,481,523; Cost share: $8,459,327. • Contractual

Haldor Topsoe, Inc., Des Plaines, IL • Thermochemical conversion of wood waste and

woody biomass to gasoline. • Expected to produce 345,000 gal/year. • Accomplishments :

o Testing shows acceptable ranges for gasoline blendstock. o Emission level was similar to gasoline.

• DOE share: $25,000,000; Cost share: $9,388,778 • Collaborative agreements with Gas Technology

Institute, Andritz-Carbona, UPM-Kymmene, and Phillips 66.

Page 15: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

15 | Bioenergy Technologies Office

Feedstock Supply and Logistics

Focus • Fully integrate feedstocks into supply

chain (multiple interfaces).

• Reform raw biomass into high-quality feedstocks.

• Use innovative technologies to ensure sustainable supply and reduce costs.

• Reduce risks to enable industry expansion.

Biomass Supply

Cost

Quantity Quality

Approaches • Use basic and applied science to

understand, model, and manage.

• Provide nationally, but solve locally.

• Meet environmental performance targets and goals while assuring sustainability.

• Work with stakeholders and partners.

Page 16: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

16 | Bioenergy Technologies Office

Advanced Supply System Design

Objective: Transform raw Biomass into high-density, stable, commodity feedstocks:

• Actively manage feedstock variability and supply uncertainty

• Feedstock specifications and conversion performance drive logistics and preprocessing

• Advanced preprocessing accesses low-grade and diffuse resources (i.e., use any and all available resources)

Approach: Advanced preprocessing and formulation of multiple raw biomass resources into least cost/performance-based feedstocks

Page 17: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

17 | Bioenergy Technologies Office

Benefits

High productivity relative to terrestrial feedstocks

Adds value to unproductive or marginal lands

Able to use waste and salt water

Able to recycle carbon dioxide

Able to provide valuable co-products, such as protein to meet animal feed needs

Produces a range of biofuels including gasoline, diesel, jet fuel, and ethanol

High-impact feedstock, increasing the U.S. domestic biomass feedstock production potential by 5 billion gallons per year

Benefits of Algal Biofuels

Photos Courtesy Sapphire Energy

Page 18: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

18 | Bioenergy Technologies Office

Significant Commercialization Challenges

Photos Courtesy Sapphire Energy

Challenges

Affordable and scalable algal biomass production:

• Current technologies are designed for production of high-value products rather than high-yielding products.

• Current facilities use high-cost liners, nutrients, and predator controls.

• Agglomeration strategies are too expensive.

• Transport costs are higher for intermediates suitable for diesel and aviation fuels.

Siting and sustainability of resources:

• Nutrient recycle has limited use.

• CO2 delivery requirements limit siting decisions.

• Cultivation currently requires significant water resources.

• Harvesting and preprocessing technologies are not energy efficient.

• Competition for CO2 has significantly increased its cost.

There are two overarching challenges to reaching the costs and performance projections from the baseline cases:

(1) Reducing costs of production.

(2) Ensuring sustainability and availability of resources.

Page 19: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

19 | Bioenergy Technologies Office

Algae Program

Courtesy Sapphire Energy, LLC

Program Performance Goal

Develop and demonstrate technologies that make sustainable algal biofuel intermediate feedstocks that perform reliably in conversion processes to yield renewable diesel, jet, and gasoline in support of the BETO’s modeled $3/gge biofuel goal in 2022.

Photo Courtesy of Sapphire Energy, LLC Photo Courtesy of ATP3 Photo Courtesy of Texas A&M

Approach • Use techno-economic, life-cycle analysis, and other validated models as tools to direct research

and development; evaluate performance towards goals; and down-select pathways, processes, and performers as appropriate.

• Leverage a strong foundation of ecology, advanced biology, and physiology to improve yield and productivity.

• Focus on engineering solutions as a cost reduction strategy.

Page 20: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

20 | Bioenergy Technologies Office

Benchmarking Progress: Technology Pathway Baselines

CO2

Harvest Water Recycle

1: ALU

2: AHTL

Solvent Extraction

Hydrothermal

Liquefaction

Anaerobic

Digestion

Wet

Gasification

Nutrient Recycle

Nutrient Recycle

Hydrotreating

CH4

Fuel

CH4

Algae Growth

Harvest

Preprocess

High Priority Pathways

• Advanced algal lipid extraction and upgrading (ALU).

• Whole algae hydrothermal liquefaction and upgrading (AHTL).

Pathways analysis will result in national laboratory-led design case studies

for the BETO to benchmark progress towards $3/gallon algal biofuel.

Page 21: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

21 | Bioenergy Technologies Office

Conversion R&D

FY15 Activities • Publication of four Design Case Reports including multi-year cost targets and sustainability

metrics. • 5 BCU FOA awards made during Q1, 7 Incubator FOA awards made during Q2 • MEGA-Bio FOA workshop to be held in mid-July in preparation for FY16 FOA. • Additional Lab accomplishments include:

• Lygos and the ABPDU at LBNL collaborated to achieve pilot scale production of malonic acid from sugar

• All Q1 and Q2 PMM milestones were met including: • Developing two new catalysts to reduce processing costing by 20% • Obtaining 18 fatty acid producing strains that produce fatty acids from C5 and C6 sugars

• The Computational Pyrolysis Consortium held a full group meeting at PNNL in February • NREL re-commissioned their TCPDU producing over 25 gallons of oil over 5 days

Key Barriers to Overcome • Defining product targets and their role in the biorefinery • Lignin deconstruction/valorization • Catalytic materials development • Staffing • Foster Lab/Industry consortia efforts in areas such as catalyst development and refinery

integration • Preparing for the FY17 Conversion experimental verification efforts

Page 22: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

22 | Bioenergy Technologies Office

Routes to Convert Biomass

Pretreatment

Hydrolysis Biological Processing

(Fermentation)

Catalytic Processing/ Stabilization

Intermediate Upgrading

Fuel/Product

Finishing

Intermediate Processing at

Petroleum Refineries

Pyrolysis

Preprocessing

Gasification

Hydrothermal Liquefaction

Feedstock Supply & Logistics

(Including Algae)

Deconstruction and Fractionation

Synthesis and Upgrading

Separations, Integration and Enabling Technologies

Fuel and Product Distribution,

Infrastructure, and End Use

Page 23: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

23 | Bioenergy Technologies Office

Commitment to Sustainability

Sustainability Strategic Goal: to understand and promote the positive economic, social, and environmental effects and reduce the potential negative impacts of bioenergy production activities.

Page 24: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

24 | Bioenergy Technologies Office

Analysis & Sustainability

FY15 Activities • Landscape Design: Fostered innovative strategies to increase bioenergy production while

enhancing environmental and socioeconomic sustainability. • FOA: “Landscape Design on Sustainable Bioenergy Systems.” Closed on Jan 26. Selection expected in June (FOA

was designed to be distinct from and complementary with USDA activities).

• Market Analysis: Annual Bioenergy Market Report assessing the size and composition of current and potential markets for biofuels and bioproducts

• Expanded Sustainability in MYPP: Conversion sustainability metrics incorporated for all 7 pathways.

• Supply Chain Sustainability Analyses: Full life-cycle GHG results published for Fast Pyrolysis and Algae Hydrothermal Liquefaction pathways.

• Bioeconomy Initiative • Fed Strategy Workshop: Coordinate with other federal agencies on bioeconomy initiative.

Key Barriers to Overcome • Limited quantification of economic, environmental, and social benefits and impacts of

bioenergy • Lack of comparable, transparent, and reproducible analysis • Limitations of analytical tools for decision-making • Nascent nature of sustainability best practices • Lack of proactive strategies for implementing new land-use practices that achieve positive

economic, social, and environmental outcomes

Page 25: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

25 | Bioenergy Technologies Office

Sustainability Project Highlights

Climate Change and Air Quality Soil Quality Land Use and

Productivity Water

Quantity and Quality

Biological Diversity

Analyzing biofuel pathways to quantify progress towards reducing lifecycle greenhouse gases, regulated emissions, and fossil energy use.

Developing strategies and tools for producing biomass feedstocks while maintaining or enhancing soil quality.

Advancing landscape design approaches that increase biomass production while maintaining or enhancing ecosystem services and food, feed, and fiber production.

Assessing the water resource use and water quality of bioenergy production, and investigating opportunities for bioenergy crops to improve water quality.

Investigating relationships between bioenergy crops and biodiversity, and engaging with diverse experts to understand and promote practices that conserve wildlife and biodiversity.

Efforts also include evaluating sustainability indicators across the bioenergy supply chain, contributing to global scientific dialogues on bioenergy sustainability, and engaging with international organizations to understand and promote more sustainable outcomes.

Page 26: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

26 | Bioenergy Technologies Office

FY 2016 Priority Activities

• Algae: Pursue new research in advanced biology and carbon dioxide utilization to address yield, productivity, and integration of downstream logistics at the pre-pilot scale.

• Conversion: Select and complete preparation of at least two pathways for validation at integrated bench or pilot scale in FY 2017 of modeled mature $3/gge gasoline/diesel blendstock price and progress toward FY 2022 price goals ($3/gge).

• Feedstock Supply: Focus on feedstock supply and logistics technologies to help meet biomass feedstock price targets of $80/Dry Matter Ton in 2017.

• New Fuels and Vehicle Systems Optima: Establishes a link early in the R&D cycle of both fuels and engines for a systems-based approach and to create optimized solutions for fuels and engines. Collaboration with Vehicles Technologies.

• New Investments in the Integrated Production and Scale-Up of Drop-in Hydrocarbon Fuels: New competitive awards (up to three pilot projects or one demonstration project) to scale-up integrated production systems of drop-in hydrocarbon biofuels to accelerate advanced biofuel manufacturing.

• DPA: Support the military-specification jet fuel in collaboration with DOD and USDA through the Defense Production Act.

Page 27: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

27 | Bioenergy Technologies Office

BETO New Areas of Interest

1. Distillates (diesel and jet fuel) • Address the non-light duty market by expanding collaborations into the aviation,

marine, rail, trucking fields.

• Includes the need for production of bio-derived jet fuel in sufficient quantities to enable testing and certification of new fuels via the ASTM process.

2. Bioproducts • Continuing to look into bio-products as long as they enable biofuels.

• Includes both the development and testing of bio-products (including animal feed and fish feed) from algae.

3. Natural Gas and Biogas • The potential to co-utilize natural gas and biogas to produce fuels and chemicals

via the gas/biomass to liquids (GBTL) processes.

• The development of distributed scale GBTL units that are skid mounted and mobile to utilize flared natural gas and bio-gas resources.

4. Infrastructure Needs • Additional investments in infrastructure (rail, ports, barge, dams, inland waterways)

to move biofuels (and other commodities) efficiently into market.

Page 28: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

28 | Bioenergy Technologies Office

Defense Production Act (DPA) Initiative

Interagency initiative to commercialize advanced biofuels

In September 2014, three projects were selected under the DPA Initiative to build commercial biorefineries to produce:

Company Location Feedstock Capacity Groundbreaking

Off-Take Agreements

Gulf Coast Fats and Greases

82.0 MM g/y TBA TBD

McCarran, NV

MSW 10.0 MM g/y Spring/Summer

of 2015

Lakeview, OR

Woody Biomass

12.0 MM g/y TBA

• Drop-in fuels for military applications

• Domestic fuels from non-food biomass feedstocks

• Cost-competitive biofuels (w/o subsidies)

Page 29: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

29 | Bioenergy Technologies Office

Source: Bloomberg New Energy Finance, EIA, American Chemical Council

Oil products in the US: Opportunity for Bioproducts in the Bioeconomy

• The US produces 15% of global chemicals and chemicals comprise 12% of all US exports.

• The US produces: ethylene, propylene, polyethylene, butadiene, butanol, polystyrene, EO, MEG

• These chemicals are converted to: plastics, cosmetics, pharmaceuticals, detergents, packaging, clothing, car parts

Chemicals make up 16% of the volume of US oil products and is worth $812bn

Fuel makes up 76% of the volume of US oil products and is worth $935bn

Bioproducts enhance the economics of biofuel production

Page 30: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

30 | Bioenergy Technologies Office

Bomgardner Chemical & Engineering News. 92 (43) 10-14. Oct 27, 2014

What are Bioproducts?

The US produces 15% of global chemicals and chemicals comprise 12% of all US exports. The US produces: ethylene, propylene, polyethylene, butadiene, butanol, polystyrene, EO, MEG. These chemicals are converted to: plastics, cosmetics, pharmaceuticals, detergents, packaging, clothing, car parts, fibres.

Renewable Products In Use

Butadiene

Ethylene glycol

1,3 Propanediol

Hexamethylenediamine 1,4-Butanediol

Succinic acid

Adipic acid Hydroxypropionic acid

Page 31: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

31 | Bioenergy Technologies Office

Bioproducts Uniformly Showed Emission Reductions Compared to their Fossil-Fuel Derived Counterparts

31

Life-Cycle Fossil Energy Consumption and Greenhouse Gas Emissions of Bioderived Chemicals and Their Conventional Counterparts – Felix Adom, Jennifer Dunn, Jeongwoo Han, and Norm Sather.

Page 32: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

32 | Bioenergy Technologies Office

How Can Renewable Chemicals Help?

Pros:

• Early Adopter Market. • Increase feedstock supply

reducing cost and risk for growing fuels uses.

• (More) stable pricing, disassociation from Fuels.

• Simpler routes to some chemicals. • Novel chemicals with improved

properties. • Smaller plants can fit

supply/demand gaps. • Lower investment sums per plant. • Consumer approval.

Cons:

• Spot pricing does not reflect long term issues and potential market saturation.

• Industry will use cheapest sugar stream exasperating “food vs fuel” issues.

• Picking winners…

Page 33: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

33 | Bioenergy Technologies Office

• Innovative approaches for bioproducts: – Molecular replacements for petroleum derived chemicals. – Performance replacements for petroleum derived chemicals.

• Infancy stage – play to the strength of the oxygenated polymers in biomass. – Lignin and waste streams to value added products (X2 the cost of biofuels on a mass

basis).

Bioproducts to Enable Biofuels

BETO’s Focus for Bioproducts for R&D AMO & USDA Application Modified from Werpy and Peterson 2008

Page 34: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

34 | Bioenergy Technologies Office

How Can Renewable Chemicals Help?

Pros:

• Early Adopter Market. • Increase feedstock supply

reducing cost and risk for growing fuels uses.

• (More) stable pricing, disassociation from Fuels.

• Simpler routes to some chemicals. • Novel chemicals with improved

properties. • Smaller plants can fit

supply/demand gaps. • Lower investment sums per plant. • Consumer approval.

Cons:

• Spot pricing does not reflect long term issues and potential market saturation.

• Industry will use cheapest sugar stream exasperating “food vs fuel” issues.

• Picking winners…

Page 35: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

35 | Bioenergy Technologies Office

Scenario 4 (Deemphasized) Scenario 3

Scenario 1

Bioproducts Enabling Biofuels

Bioproducts are chemicals derived from biomass that enable the economics and reduce risk to manufacturers for producing biofuels

Biomass Intermediates

Biofuels

Bioproducts

Deconstruction

Fractionation

Synthesis &

Upgrading

Scenario 2

Biomass Intermediates Biofuels

Bioproducts

Deconstruction

Fractionation

Synthesis &

Upgrading

Biomass Intermediates Biofuels

Waste Streams

Deconstruction

Fractionation

Synthesis &

Upgrading

Bioproducts

Biomass

Intermediates Biofuels

Bioproducts

Deconstruction

Fractionation

Synthesis &

Upgrading

Intermediates

Page 36: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

36 | Bioenergy Technologies Office

Bioenergy Technologies Office - Manufacturing Activities

Competitiveness Analysis (FY14-FY16)

– International competitiveness for fuels and products manufacturing (Bloomberg).

Renewable Carbon Fiber FOA (negotiated selections to start FY15)

– Technologies to enable manufacture of bio-derived acrylonitrile.

Lignin Valorization (Ongoing projects – NREL & Others)

– Convergent strategies for funneling lignin to intermediates & Refinery Integration.

Biochemical Upgrading FOA (selections to start FY15)

– NREL Muconic acid (platform intermediate) from biogas.

– Natureworks lactic acid from biogas.

Targeted Algal Biofuels and Bioproducts FOA (FY14-FY15)

MEGA-BIO (FY16 FOA)

– Enable fuels using products.

Demonstration and Market Transformation FOA (FY15/FY16)

– Products that enable fuels.

Page 37: Energy Manufacturing Jonathan Male Workshop Director ... · project “definition phase” pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. –Pilot DOE

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BETO’s Waste-to-Energy (WTE) Efforts

There is a significant near-term market entry opportunity to deploy WTE technologies in the U.S., specifically with regard to anaerobic digestion at landfills to recycle organic waste biomass into renewable energy, thereby enabling a national network of distributed power and biofuel production sites.

Image courtesy of Iona Capital

Waste-to-Energy Cycle Waste streams that could be considered for use include:

• Municipal solid waste

• Landfill gas

• Waste streams from waste water treatment plants (WWTPs)

• Bio-solids (from thermochemical or biochemical biofuel pathways)

The DOE Loan Guarantee Office released a Renewable Energy and Energy Efficiency Solicitation for a public comment period. The solicitation is expected to provide as much as $2.5 billion in loan guarantees for commercial financing of technologies that avoid, reduce, or sequester GHG emissions. “Waste-to-Energy” is included in the list of eligible project types to be considered.

Organic Wastes

Waste Preparation

Anaerobic Digestion

Biogas (rich in methane)

Stabilization/Curing/Dewatering

Organic Compost

IBR Chemicals Products

Heat, Electricity & Fuel

Aqueous Waste

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Energy Dense Resources Are Best Processed in Large Quantities

Scaling by Volume

The average U.S. petroleum refinery processes 128,000 barrels of oil equivalent per day

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Wet or Energy-light Resources May Be Best Processed at the Source

Scaling by Replication Centralized Advanced Manufacturing

In one scenario could envision local process size of 125 BOE/D

Not all technologies scale up and down in the same manner

x 1000

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Economics of Scaling Small and Modular

• Savings through mass production • Risk reduction at small scale • Low cost feeds • New science and technologies that

change the correlations of scale with cost

Why Can it be Economical?

• Goal is to achieve parity on capital cost on a per unit basis—$50k per (BOE/day)

Goal

Technologies That Scale Up Often Do Not Economically Scale Down

Can it be cost competitive?

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The Bioeconomy Concept

• Revenue and economic growth

• Broad spectrum of new jobs

• Rural development

• Advanced technologies and manufacturing

• Reduced emissions and Environmental Sustainability

• Export potential of technology and products

• Positive societal changes

• Investments and new infrastructure

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The Baseline Bioeconomy

Bioeconomy Parameter Current

Biomass Utilization 200 million DMT

Biopower Production (EIA) 30 billion kWh

Biofuels Production 15 billion gallons

Bioproducts Production 2.5 billion pounds

Direct Revenue $40 billion

Total (Direct + Indirect) Revenue $100 billion

Direct Jobs 150,000

Total (Direct + Indirect) Jobs 480,000

Estimated CO2e Reduction 35 million tons

Biofuels • Ethanol based, transitioning to drop-in • Policy driven

Biopower • Mostly wood wastes and wood • Historically industrial heat, steam, and electricity

Bioproducts • Initially starch-based, transitioning to cellulosic

Estimates are 2011 and based on various assumptions and sources that may not be consistent with other published sources.

2015 Agricultural Outlook Forum, February 20, 2015, Growing the Bioeconomy

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Potential Impacts of One Possible Bioeconomy Scenario

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Bioenergy 2015

The upcoming Bioenergy 2015 conference is one month earlier this year! • Planned for June 23-24, 2015 returning to the Washington Convention Center.

• Bioenergy 2015 will convene key representatives from across the bioenergy supply chain, including industry, federal agencies, and Congress.

• Focus on what is needed to sustain the growth and success of the advanced bioenergy industry now, and into the future.