The promise of Energy Biosciences

Steven E. KooninChief Scientist, BP plcFebruary 2007

2

the rationale for Energy Biosciences is simple and compelling• Biology is the most rapidly developing of the sciences

• Novel technologies emerge from rapidly developing science

Biology will generate disruptive technologies

3

33 genomes sequenced

5

2

5

115

11

1

2

[Data from NCBI 5/25/05]

9 genomes sequenced

81

5 genomes sequenced

211

Protists 1

understanding life - 1995

4

320 genomes sequenced, 813 ongoing sequencing projects

277 complete/521 in progress

25 complete/26 in progress

18 complete/266 in progress

But we’ve only just begun–Number of species known and described = 1.7 millionEstimated total number of species = tens of millions

19/155/11

0/0

2/9 21/466/171/93

1/410/3

17/29135/2838/30

3/11/6

Other1/14

[Data from NCBI 2/09/06]

1/2

4/1178/723/31

Protists 3/461/0 Other

understanding life – Feb 2006

5

Identification, subcellular location,

and dynamics of molecular machines

Regulation of gene expression

in individual cells

Subcellular Cellular

Ecosystems

Who is expressingwhat, when, where,

and under what conditions? How do they work together?

From Molecules to Cells to EcosystemsObtaining a Predictive Understanding of Biological Systems

the rise of systems biology

6

the rationale for Energy Biosciences is simple and compelling• Biology is the most rapidly developing of the sciences

• Novel technologies emerge from rapidly developing science

Biology will generate disruptive technologies

• ~80% of the world’s energy is based upon carbon

• All of life is based upon carbon (and 3.5 billion years of evolution)

There are likely to be great synergies

7

Thalassiosira pseudonana Methanococcus jannaschii

Ocean carbon pumping

Microbulbifer 2-40

Biomass conversionMethane production

Deinococcus radiodurans

Radiation resistance -bioremediation

Rhodopseudomonas palustris

Hydrogen production / Carbon sequestration

nature has already designed multiple solutions to meet our energy challenges

Source: DOE

8

the rationale for Energy Biosciences is simple and compelling• Biology is the most rapidly developing of the sciences

• Novel technologies emerge from rapidly developing science

Biology will generate disruptive technologies

• ~80% of the world’s energy is based upon carbon

• All of life is based upon carbon (and 3.5 billion years of evolution)

There are likely to be great synergies

• Major funding and applications of biotech are biomedical

• There have been far smaller investments in agriculture, materials, chemicals

“Energy bioscience” is largely open territory

9

Enhanced Oil RecoveryHydrogen Production

potential applications of energy biotech

Coal Bed Methane

Carbon Sequestration

Bio-remediation

Bio-plastics

De-sulphuirsation Biofuels

10

it’s really hard to beat liquid hydrocarbons

Density = 1 gm/cm3

Research & Advanced Engineering 11Research & Advanced Engineering 11

Volumetric Eff. (miles/liter) Gravimetric Eff. (miles/Kg)

Gasoline 5.3 6.6

Li-ion Batteries 1.33 0.5

Volumetric and Gravimetric Performance

Assumptions: Battery → 150 Wh/kg, 400 Wh/l, 300 Wh/miGasoline → 20 mpg

Primary Energy Conversion Technology Products

Reforming

Coal

Natural Gas

Biomass

Extra Heavy

Oil

SyngasConversion

- FT- Oxygenates- Chemicals

Gasification

Enzymatic/Biological Conversion

PowerGeneration

Electricity

Fuels

Chemicals

Refining Processes- coking

- hydro-treating- novel thermal processes

CO2 CaptureCO2 for

EOR/Storage

the fungibility of carbon

what carbon “beyond petroleum”?

Fuel Fossil Agriculture Biomass

0

100

200

300

400

500

600

700

Gasoli

neDiese

lCoa

lNatu

ral g

as

Other p

etrole

umNGLsCor

nPap

erSoy

Woodpu

lpW

heat

Edible fa

ts/oils

Meat/P

oultry

Cotton

Biomas

s tod

ay

Biomas

s poten

tialA

nnua

l US

Car

bon

(Mt C

)

↑↑

15% of 15% of Transportation FuelsTransportation Fuels

1000

what carbon “beyond petroleum”?

Fuel Fossil Agriculture Biomass

0

500

1000

1500

2000

Gasoli

neDies

elCoa

lNatu

ral g

as

Other p

etrole

umNGLsCor

nPa

per

Soy

Woo

dpulp

Wheat

RiceEd

ible

fats/o

ilsMea

t/Pou

ltryCott

on

Biomas

s tod

ay

Biom

ass p

oten

tialAnn

ual W

orld

Car

bon

(Mt C

) ↑↑

15% of 15% of Transportation FuelsTransportation Fuels

↑↑5300 Big!

External energy for distribution & transportation

WTW GHG emissionresult for biomasspathways. Contributionfrom above closed cycle is zero

biofuels overview – the carbon cycle

CO2 CO2

Biomassgrowth

Processing toproduce biofuel Biofuel

in cellulose/sugar/starch in fuel molecules in fuel molecules

Use in vehicle

one carbon atom as CO2 removed from atmosphere during hotosynthesis

Same carbonreturned toAtmosphereas CO2

Carbon in crop or

crop residue

External energy and associatedGHG emissions for farming (e.g. from fertiliser use)

External energy and emissions for fuel production process

+ + =

-C- -C- -C- -C-

biofuels today

• 2% of transportation pool • (Mostly) Use with existing

infrastructure & vehicles• Growing support worldwide• Conversion of food crops into

ethanol or biodiesel− US Corn ethanol economic

for oil > $45 /bbl − Brazilian sugarcane

economic for oil > $22/bbl

Flex Fuel Offers in Brazil

Food Crops for Energy

key questions

• Costs

− Biofuel production costs

− Infrastructure & vehicle costs

• Materiality

− Is there sufficient land after food needs?

− Are plant yields sufficiently high?

• Environmental sustainability

− Field-to-tank CO2 emissions relative to business as usual?

− Agricultural practice – water, nitrogen, ecosystem diversity and robustness, sustainability, food impact

• Energy balance

− More energy out than in?

− Does it matter?

corn ethanol is sub-optimal

• Production does not scale to material impact− 20% of US corn production in 2006 (vs. 6% in 2000) was used to make

ethanol displacing ~2.5% of petrol use

− 17% of US corn production was exported in 2006

• The energy and environmental benefits are limited− To make 1 MJ of corn ethanol requires 0.9 MJ of other energy

(0.4 MJ coal, 0.3 MJ gas, 0.04 MJ of nuclear/hydro, 0.05 MJ crude)

− Net CO2 emission of corn ethanol ~18% less than petrol

• Ethanol is not an optimal fuel molecule− Energy density, water, corrosive,…

• There is tremendous scope to improve (energy, economics, emissions)

19

some words on bio-diesel

• Total US Fats and Oils consumption was 3 B gal in 2002

− 2 B gal vegetable (70% soy);

− 1 B gal animal

• Biodiesel production cost is 2-3 X petroleum-based

• “It would be very ambitious to have a [US] 0.5 B gal/year biodiesel industry (1.5% of on-highway diesel use)”

• Algal production of lipids may hold some promise (1250 gal/acre), but cost??

245Sorghum (India)

35Soybean

75Sunflower

80Peanut

90Rapeseed

210Coconut

450Oil palm

Biodiesel

180Wheat (France)

330Corn (US)

280Cassava (Nigeria)

1500Sugarcane (Brazil)

280Sugarbeet (France)

EthanolFUEL-EQUIVALENT YIELDS (GAL/ACRE)

optimizing biofuels requires fusing the petroleum and agricultural value chains

•Species•Yield / Morphology

/ Development•Chemistry•Unnatural products•Stress tolerance • / Bio-overhead•Safety

•Tillage•Planting•Fertilizer•Water•Pest control•Crop rotation•Sustainability

•Optimal catchment•In-field processing(e.g., pelletizing)

•Transport energetics•Storage•Waste utilization

•Cellulose (bugs/enzymes/ chems)

•Microbial engineering •Plant integration

/ optimization•Co-products•Role of gasification

•Blends•Additives•Distribution•Engine mods

Exploration Production Transport Refining Blending

Petroleum Value Chain:

Germplasm Cultivation Harvest/Transport

Processing A real fuel

Biofuels Value Chain:

Germplasm Cultivation Harvest Process Distribution

Agricultural Value Chain:

breeding has done much for food crops

crop yields have been strongly increased but biomass yields have not

Source: European Forest Institute (www.efi.fi)Indiana Agricultural Statistics Service

Average European forest yield Average Indiana corn yield

energy crops can produce >10 t/acre biomass

Maximal reported* Miscanthus yield 17.5 tons/acreYield of 26.5 tons/acre observed by Young & colleagues

17.5 ton/acre ~ 2.04% PAR efficiency (yearly)

* Clifton Brown et al., (2001) Agronomy J 93,1013

Cou

rtesy

of S

teve

Lon

g et

al

enhanced plant size caused by increased expression of a transcription factor

Wild-type Over-expressor

Courtesy of Mendel BiotechnologyAnd Monsanto Co

the CBF gene confers drought resistance

Control CBF-Canola

10-week old plants• 7 weeks with normal

water• 1 week without

water• 2 weeks with normal

water

Courtesy of Mendel Biotechnology

26

What is the best harvesting and storage technology?

http://bioenergy.ornl.gov/gallery/index.html

cellulose digestion is a major challenge

• Plant cell walls are lignocellulose (lignin + cellulose + hemicellulose)

− The main structural and armour material of plants

• Cellulose/hemicellulose are polymers of C6 and C5 sugars

• Enzymes exist that can decompose it into C6 and C5 sugars that can then be fermented

− C5 fermentation is an un-natural act

− Enzymes need to be made cheaply, more efficient

plants cells are enclosed in cell walls

Section of a pine board

3 nm

Polymerized glucose

how cellulose is produced in a plant

30Diagram provided by: Mike Himmel and John Sheehan, NREL

Current Process to Produce Ethanol from Lignocellulose

31

NREL has worked with Genencor & Novozymes for 4+ yearsFocusing on enzyme biochemistry, cost, and specific activityInvestigating the interaction of biomass pre-treatment and enzymatic hydrolysis

The RESULT: 20-30 fold reduction in cost contribution of enzymes ($/gal EtOH)

-1

+1

+2

-2

cellodextrin

Y82

CBH1 from T. reesei

E1 from A. cellulotiticus

32

Possible routes to improved catalysts

• Explore the enzyme systems used by termites (and ruminants) for efficiently digesting lignocellulosicmaterial

• Compost heaps and forest floors are poorly explored

• Explore In vitro protein engineering of promising enzymes

• Develop synthetic organic catalysts (for polysaccharides and lignin)

33Diagram provided by: Mike Himmel and John Sheehan, NREL

•Increase biomass yield•Improve biomass characteristics•Increase biomass yield•Improve biomass characteristics

• Exploit novel catalysts

• Reduce severity and wastes

• Raise sugar yields

• Exploit novel catalysts

• Reduce severity and wastes

• Raise sugar yields

• Eliminate separation• Combine enzyme production

saccharification, hydrolysis, and fermentation into one reactor

• Total Process integration

• Eliminate separation• Combine enzyme production

saccharification, hydrolysis, and fermentation into one reactor

• Total Process integration

Next Generation will Reduce Costs of Cellulosic Ethanol Production

Ethanol is only a first-generation biofuel

Biological ease

Molecular complexity (carbon number)

Fuel utility

Methanol Ethanol … 2,2,4 -TMPButanol

BP Biofuels a growing alternative

better fuel molecules

• Biobutanol has a number of attractive properties:

− Easily blended into gasoline

− Can use existing fuel infrastructure without major modification

− Potential to be used at higher blend concentrations than ethanol in unmodified vehicles

− An energy content closer to that of gasoline than ethanol – reducing the impact on fuel economy for the consumer

• Biobutanol is complementary to ethanol:

− Can be used together with ethanol

− It can enhance the performance of ethanol blends in gasoline

36

Nature offers many alternatives to ethanol

Fatty acids

Synthetic microbe

Alkanes

Esters

Alcohols

Olefins

Diverse Renewable Feedstocks

•Vibrio furnissii M1•Uses hexose and pentose•Secretes medium chain alkanes

Courtesy of LS9 Inc.

3.75

2.48

2.89

1.140.90

1.20

0.911.03

2.79

0.84

0

0.5

1

1.5

2

2.5

3

3.5

4

current and projected production costs of bio-gasoline components

Source: BP Analysis, NREL, CERES, NCGA

etha

nol p

rodu

ctio

n co

st ($

/gal

lon)

EU Sugar Beet

Brazilian Sugar Cane

US Corn

US Switchgrass

Ligno-cellulosic Fermentation

Conventional Fermentation

US Corn Stover

Key:

Base case

10 year plausible technology stretch

• Ligno-cellulosic biomass is the key to materiality and sustainability of biofuels in long term

• Currently uneconomic – 1/2 pilot plants operating

• Technology advances will dramatically reduce costs

38

microbial applications for Coal Bed Methane

39

microbial enhanced oil recovery

40

biological opportunities for carbon mitigation

41

BP Energy Biosciences Institute to pursue these opportunities

• Dedicated research organization to explore application of biology and biotechnology to energy issues

• Sited at a University of California – Berkeley and it’s partners, University of Illinois Urbana-Champagne and Lawrence Berkeley National Laboratory

• Open “basic” and proprietary “applied” research

• Initial focus on the entire biofuels production chain− Smaller programmes in Oil Recovery, hydrocarbon conversion,

carbon sequestration

• Involvement of BP, academia, biotechnology firms, government

• $500M, 10-year commitment; operations commencing June `07

Questions/comments/discussion