Techno-Economic Assessment of Production of Olefins Via Thermochemical Conversion

of Biomass (BioMTO Process)

Pedro Haro C. Reyes Valle, A.L. Villanueva Perales, P. Ollero, J. Caraballo, J.A. García

Redondo, R. Arjona

Bioenergy Group (BEGUS)

Escuela de Ingenieros, University of Seville

7th June 2011, Berlin

19th European Biomass Conference and Exhibition

Main Research Lines

Bioenergy Group (BEGUS)

• Biomass/waste gasification in fluidized bed

• Biofuels production (BTL) via the thermochemical route (gasification and catalytic synthesis)

19th European Biomass Conference and Exhibition

Overview

• Introduction

• Biomass to Olefins Routes

• Process Design & Modeling

• Process Economics

• Results & Discussion

• Conclusions

19th European Biomass Conference and Exhibition

Introduction

• Olefins: ethylene/propylene

– A large-volume product in petrochemical industry

– Feedstocks: crude oil, natural and associated gas

– Market demand is increasing year by year

• Aim of this work

– Assess olefins production from biomass rather than fossil fuels

– Focus on ethylene (main olefin)

19th European Biomass Conference and Exhibition

Introduction

• Two platforms:

– Van Haveren al. (2008) preditions:

• High potencial (biorefinery scenario)

• Medium term for ethylene

• Long term for propylene

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Biochemical Platform Thermochemical Platform

Biomass to Olefins Routes

• Biochemical Platform

– Dehydration of (bio)ethanol Ethylene

• Commercial technology

• Isolated locations

• Severe operating conditions

• Only ethylene

– Dimerization/Metathesis route Propylene

• Bioethanol as feedstock

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Biomass to Olefins Routes

• Thermochemical Platform

– Biomass gasification and catalytic synthesis

– Several possible alternatives

• Focused on both ethylene and propylene production – MTO (methanol to olefins) process

• Focused on propylene production – MTP (methanol to propylene) process

• Focused on a variety of refinery products – Vegetable oil cracking (scale-limited)

19th European Biomass Conference and Exhibition

Process Design & Modeling

Selected process for the assessment:

BioMTO

• 2140 dry tonnes/day of poplar chips (500 MWHHV)

• High ethylene production mode

• Energy self-sufficient and electrical energy neutral plant

19th European Biomass Conference and Exhibition

Biomass gasification

Syngas cleaning &

conditioning

MeOH synthesis

MeOH cracking (MTO)

Cryogenic distillation

Process Design & Modeling

• Gasifier: indirectly heated CFB (Batelle Columbus Laboratory)

• Raw syngas conditioning by SMR and CO2 capture

• Liquid Phase Methanol synthesis reactor (CCT project)

• Heat and power integration due to syngas extraction to combine cycle

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Biomass gasification

Syngas cleaning &

conditioning

MeOH synthesis

Water Air Oil HP steam LP steam

Biomass Milling Dryer Gasification

bed

Combustor

Sand Sand &

Char

Ash

Flue gas

Flue gas

Cleaning

Cyclon

Particles

HRSG OLGA

-Dust

-Alkali

-Tars

Scrubber

Air &Tars

-NH3

-HCl

HRSG

LP steam

SMR LPMEOH

Raw

Methanol

LO-CAT

CO2, S

CW

Guard Bed

S

Combustor

MP

Steam

C

O

2

Ai

r CW

G-L Separation

Pur

ge

H2O Removal

Purge

to combine

cycle

Process Design & Modeling

• Raw MeOH stream diluted with steam (2:1 molar)

• FCC reactor (450/730ºC) at atmospheric pressure

• Ni-SAPO-34 catalyst (high ethylene yield)

• Simplified product separation (neither DME nor Acetylene)

• Two final product streams: ethylene and propylene

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MeOH cracking (MTO)

Cryogenic distillation

Quench Tower FCC

(Methanol cracking & Regenerator)

H2O Tail gas

Raw

Methanol

CO2 removal/ Dryer

CO2 H2O

De-ethanizer

De-Methanizer

De-Propanaizer

C2 - Splitter

C3 - Splitter

Ethylene

Propylene

Process Economics

• Economic Assumptions

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Parameter Value

Rate of return 10%

Equity 100%

Plant life 20 years

Depreciation (Linear)

10 years

Salvage value 0 MM$

Construction period

1 year

Income tax 30%

Working capital 1-month operating

costs

Land 6% of TIC

Year 2010

Common assumptions on Biomass Thermochemical Conversion Processes

Economic data for whole process (except MTO area) was taken from a previous work Economic data for MTO area was taken from Chen et al. (2004)

Results & Discussion

• Material & Energy Results (2140 d.t./day)

– 82,400 tonne/year (small-capacity plant)

• 9,279 kg/h of ethylene

• 576 kg/h of propylene

– Plant designed to fulfill the energy self-sufficient and electrical energy neutral criterion

– Mass efficiency is 115 kg olefins/dry tonne of biomass

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High ethylene production mode

Results & Discussion

• Economic Results

– Highly dependent on:

• Biomass price (assumed 66 $/dry tonne)

• Energy self-sufficient and electrical energy neutral criterion

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Results & Discussion

• Ethylene price was calculated by:

– Fixing a propylene market price of €920/tonne (October 2010)

– Imposing a rate of return of 10%

– Imposing energy self-sufficient criterion

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M€ (2010) Minimun value Total Plant Investment 421 Operating costs 90 Minimun Ethylene Selling Price 1,687

Results & Discussion

• Comparison with present olefins market

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400

500

600

700

800

900

1,000

1,100

1,200

1,300

Mar-09 Oct-09 May-10 Nov-10 Jun-11

€/t

on

ne

Ethylene

Propylene

– This work was concluded in the end of 2010

– At present, olefins market prices have significantly increased, but are still below calculated ethylene price

How much penalizes the energy self-sufficient criterion our process?

• With this criterion (there is neither heat nor power input to the plant)

• Without this criterion (electric power -from the grid-)

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1,205 €/tonne of ethylene

1,687 €/tonne of ethylene

Conclusions

• This techno-economic assessment shows olefins can be produced from biomass at near competitive selling price

• Other production modes could also be easily evaluated (with our assessment tool), such as 2:1 ethylene to propylene, high propylene mode, etc.

• The energy self-sufficient and electrical energy neutral criterion highly penalizes the economics

19th European Biomass Conference and Exhibition

Techno-Economic Assessment of Production of Olefins Via Thermochemical Conversion

of Biomass (BioMTO Process)

19th European Biomass Conference and Exhibition