Converting Domestic Hydrocarbons Converting Domestic Hydrocarbons into Transportation Fuels: into Transportation Fuels:

Opportunities Abound Opportunities Abound

Pasco-Kennewick RotaryPasco-Kennewick Rotary

Converting Domestic Hydrocarbons Converting Domestic Hydrocarbons into Transportation Fuels: into Transportation Fuels:

Opportunities Abound Opportunities Abound

Pasco-Kennewick RotaryPasco-Kennewick Rotary

Mike DavisAssociate Laboratory DirectorEnergy Science & Technology

Pacific Northwest National LaboratoryMay 24, 2006

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Our time togetherOur time togetherOur time togetherOur time together

A little bit about PNNLThe need to reduce the nation’s dependence on imported oil Two opportunities: Coal to liquid transportation fuels Biobased products and fuels

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DOE Multi-program DOE Multi-program National LaboratoriesNational LaboratoriesDOE Multi-program DOE Multi-program

National LaboratoriesNational Laboratories

Lawrence Livermore

Pacific Northwest

IdahoLawrence Berkeley

Argonne

Sandia

Los Alamos

Oak Ridge

Brookhaven

Office of ScienceNational Nuclear Security AdministrationOffice of Nuclear Energy, Science & Technology

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PNNL performs research for PNNL performs research for the Department for Energy, the Department for Energy, other agencies, and industryother agencies, and industry

PNNL performs research for PNNL performs research for the Department for Energy, the Department for Energy, other agencies, and industryother agencies, and industry

Business Volume ($M)

FY05 FY06 Est. Dept. of Energy 423 488 DHS 133 113 Other Agencies 93 109 Battelle Private 77 90 Total 726 800

Business Volume ($M)

FY05 FY06 Est. Dept. of Energy 423 488 DHS 133 113 Other Agencies 93 109 Battelle Private 77 90 Total 726 800

National Security

Science

Environ-ment

Private11%Other

Agencies 13%

Homeland Security

18%

Energy

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Energy Sector BusinessEnergy Sector Business$81 million in FY05$81 million in FY05

Energy Sector BusinessEnergy Sector Business$81 million in FY05$81 million in FY05

Pursuing conversion of coal/hydrocarbons to boost

clean supply of electricity, gas and liquid fuels

Ensuring the efficiency, reliability and security of the

nation’s power grid

Addressing hydrogen storage and hydrogen safety

Science-based solutions for: • Reducing dependence on

foreign oil• Minimizing the energy

system’s effect on the environment

• Improving energy efficiency, security and reliability

Increasing efficiency and reducing emissions in vehicles

Developing low-cost, high-efficiency solid oxide

fuel cells

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PlanningGuidance

FY07–FY11

Energy policy can be distilledEnergy policy can be distilledinto four broad goals into four broad goals

Energy policy can be distilledEnergy policy can be distilledinto four broad goals into four broad goals

Diversify our energy mix and reduce dependence on foreign petroleum, thereby reducing vulnerability to disruption and increasing the flexibility of the marketto meet U.S. needsReduce greenhouse gas emissionsand other environmental impacts(water use, land use, criteria pollutants) from our energy production and useCreate a more flexible, more reliableand higher capacity U.S. energy infrastructure, thereby improving energy services throughout the economy, enabling use of diverse sources, and improving robustness against disruptionImprove the energy productivity(or energy efficiency) of the U.S. economy

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Oil production in the lower 48 states peaked ~ 1970 at 9.6 million barrels/day

Natural gas production in the lower 48 states may be peaking now

Global oil production is expected to peak early this century; predictions range from 2010 to 2025

Hydrocarbons provide 85% of the world’s energy

Demand for hydrocarbons will continue to increase to support economic growth

Oil market economics are not driven by the strategic interests of our nation

A snapshot of today’s realityA snapshot of today’s realityA snapshot of today’s realityA snapshot of today’s reality

If we do not aggressively pursue domestic solutions now for both expanded conversion capacity and carbon management, we risk substantial and increasing economic and environmental damage.

If we do not aggressively pursue domestic solutions now for both expanded conversion capacity and carbon management, we risk substantial and increasing economic and environmental damage.

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U.S. consumes 20.5 million U.S. consumes 20.5 million barrels of petroleum per daybarrels of petroleum per dayU.S. consumes 20.5 million U.S. consumes 20.5 million barrels of petroleum per daybarrels of petroleum per day

Resource End UseIn 2003, total U.S. demand for petroleum was 20.044 million barrels per day, 56% of which was from net imports. By 2020, import reliance is expected to increase to 65% (source: EIA)

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PNNL’s Energy Conversion InitiativePNNL’s Energy Conversion InitiativeConvert domestic coal into liquid transportation fuelsConvert domestic coal into liquid transportation fuels

PNNL’s Energy Conversion InitiativePNNL’s Energy Conversion InitiativeConvert domestic coal into liquid transportation fuelsConvert domestic coal into liquid transportation fuels

Enable domestic hydrocarbon resources to be used in an environmentally acceptable and economically competitive way within the existing energy infrastructure

Address nation’s and world’s growing energy demand by utilizing a broad base of hydrocarbons

Develop business case to support necessary privateinvestment in plant capacity

Define value proposition for private financing Identify potential partners/collaborators/investors

Goal: Develop energy conversion and carbon capture and sequestration process capabilities that can be deployed at plants with a production capacity of 100k barrels/day.

Goal: Develop energy conversion and carbon capture and sequestration process capabilities that can be deployed at plants with a production capacity of 100k barrels/day.

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Globally, there’s no shortage of hydrocarbons, only a shortage of high-quality hydrocarbons

Near-term solution:Near-term solution:Gasification and Carbon CaptureGasification and Carbon Capture

Near-term solution:Near-term solution:Gasification and Carbon CaptureGasification and Carbon Capture

Conversion via gasification enables Near-term solution, scalable and applicable for all hydrocarbons,

to address economic and environmental needs Expanded use of domestic hydrocarbons Carbon capture sufficient to lower emissions output to that

of natural gas and, over time, to zero (the goal of FutureGen)

Conversion via gasification produces economic efficiencies Same “front end” approach for electricity generation

and transportation fuels production Transportation fuels could use existing infrastructure

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Biomass: Another opportunityBiomass: Another opportunityBiomass: Another opportunityBiomass: Another opportunity

Potentially could produce 130 billion gallons of liquid transportation fuels* Significant new technology developments needed to maximize productionSame resource could supply virtually all raw materials for the chemical industry

Oil-based crops could produce enough biodiesel to supply 2-5% of our current diesel consumption, but alternative crops and agricultural practices are required

DOE study identified 1.3 billion tons of dry biomass available in U.S. annually

*U.S. consumes 150 billion gallons of gasoline annually, plus another ~55 billion gallons of diesel)

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Economic driversEconomic driversEconomic driversEconomic drivers

Liquid transportation fuels derived from biomass must compete economically with petroleum to ensure a viable industrySignificant improvement in conversion technologies needed to reduce production costs of transportation fuels and chemicals from biomassCurrent petroleum refinery produces about 90% fuel and 10% chemicalsTo be economically competitive, biorefineries must consider converting biomass to liquid transportation fuels as well as chemicals and materials

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Biomass—a state resourceBiomass—a state resourceBiomass—a state resourceBiomass—a state resourceNorthwest has diverse biomass resource base Crops, crop residues, trees, and

pulp and paper processing residues

Mostly harder-to-process woody waste (lignocellulosic) vs. Midwest starches and oil. While harder to process, some are residues requiring collection and disposal

Maximizing utilization requires understanding total resource base available and infrastructure

Washington state has 17 million tons of biomass residue, which potentially equates to 1.5 billion gallons of ethanol. The technology to make the conversion is there. The challenge is making it economically viable.

Washington state has 17 million tons of biomass residue, which potentially equates to 1.5 billion gallons of ethanol. The technology to make the conversion is there. The challenge is making it economically viable.

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Bioproducts, Sciences, and Bioproducts, Sciences, and Engineering LaboratoryEngineering Laboratory

Jointly developing research agenda with WSUJointly developing research agenda with WSU

Bioproducts, Sciences, and Bioproducts, Sciences, and Engineering LaboratoryEngineering Laboratory

Jointly developing research agenda with WSUJointly developing research agenda with WSU

Maximize use of Washington’s existing crops Converting Washington’s diverse biomass residues to bioproducts

and biofuels and determining how to maximize economic benefit

Optimize feedstocks Bringing together WSU plant capabilities and PNNL bioproducts

capabilities to create better crops specifically for bioproducts and biofuels feedstocks

Explore biobased engineered materials Exploring value-added materials, not just chemicals, that can be

made from biomass

Provide relevant analysis Addressing technological and economical questions to enable the

development of a strategic bioenergy roadmap for Washington

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A “science to solutions” approachA “science to solutions” approachA “science to solutions” approachA “science to solutions” approach

PNNL performs research and development to address critical energy challenges for the nation and globally. In addition to what you heard today: Fuel cells Nuclear energy Building technologies, including next-generation lighting Lightweight materials and emissions reduction

technologies for vehicles Carbon sequestration

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