Creating a SustainableCreating a SustainablegBiofuels Future

gBiofuels Future

J if H lJ if H lJennifer HolmgrenUOP LLC

Jennifer HolmgrenUOP LLC

EESI Briefing - BiofuelsM 12 2009

© 2009 UOP LLC. All rights reserved. UOP 5191-01

May 12, 2009Washington D.C. jennifer.holmgren@uop.com

Macromarket Summary: Through 2015

Global energy demand is expected to grow at CAGR 1.6%.

−Primary Energy diversity will become increasingly important over this period with coal, natural gas & renewables playing bigger roles.

Fossil fuels are expected to supply 83% of energy and 95% of liquid transportation needsBiofuels are expected to grow atBiofuels are expected to grow at 8-12%/year to ~2.0 MBPD

Key: Overlaying Sustainability Criteria on Alternatives (GHG water etc )

Source: IEA, 2008

Alternatives (GHG, water etc.)

Petroleum Refining ContextRefining: ~100 years~750 refineries~85M BBL of crude

Fuel Gas

GasolineJet

LPG S l tFuels

R f tH2

H2

H

Etherification

Gas ProcessingUnit

Light Ends

Light NaphthaIsomerate

LPG

Sulfur Plant Sulfur

Iso-octaneProduction

Iso-octane

Crude Oil

Butane-Butylene

Alcohol Isobutane

Butane

Alkylation

Alkylate

Flue Gas

Isomerization

~85M BBL of crude refined daily~50M BBL transport fuelsng

Ble

ndin

g

Diesels

HeatingOils

Geases

Fuel Oil

LPG Solvents

Light DistillateHydrotreating

Heavy DistillateHydrotreating

NaphthaHydrotreating

Light OlefinsProduction

AromaticsProduction BTXH2

H

Distillates

Reformate

Diesel and Heating Oil

Crud

e Oil D

istilla

tion

(Top

ping

)

Heavy Distillate

Light Distillates

H2

Naphtha

H2 CatalyticReforming

H2

Crude Treating& Desalting

Latest RefiningTechnology

Development & Licensing

Complex but efficient conversion processes Pr

oduc

t Tre

atin

Lube OilsLube Oil

ProductionSolventExtraction &

Gas OilHydrotreating

H2

H2

Vacu

um D

istilla

tion

Gas Oil

Lube Oils

Kerosene and Jet Fuels

Diesel and Heating Oils

Gasoline, Naphtha, Middle Distillates, Gasoline

GasolineFluid CatalyticCracking

Hydrocracking

AtmosphericGas Oil

Feedstock provider to the global petrochemical industry

Asphalts

Natural Gas Natural Gas, Fuel Oil

Extraction &Deasphalting

VisbreakingVacuum Resid

Diesel

Heavy Fuel OilAsphalt

Syngas/Steam

ElectricityCoke

Gasification

Coking

industryEstablished infrastructure for blending, distribution

Hydrogen Production/Purification/Recovery

Gas-to-Liquids

Fuel, Wax H2

Plant Upgrades& Revamps

Plant Maintenance/

Reliability/Safety

EnergyConservation &

Management(Power

Production)

EnvironmentalControls

blending, distribution and traded globallyMassive Scale

Technology Evolution Expected

Our Biofuels Vision• Produce real “drop-in” fuels• Leverage existing refining/ transportation infrastructure to lower capital

costs, minimize value chain disruptions, and reduce investment risk• Focus on path toward second generation feedstocks

Oxygenated Biofuels Hydrocarbon Biofuels

BiodieselEthanol JetDiesel Gasoline

“Other” Oils: Camelina, Jatropha, Halophytes

Second Generation

FirstGeneration

Lignocellulosic bi

GenerationGeneration

Natural oils biomass,algal oils

Natural oils(vegetables, greases)

Getting There

Life CyclesLife CyclesLignocellulosicLignocellulosicCostCost

Effi iEffi i

AlgalAlgal Reduction inClimate Active

CO2 Equivalents

Reduction inClimate Active

CO2 Equivalents

BiofuelsSustainabilitySustainabilityTechnologyTechnology

EfficiencyEfficiency

BiofuelsSustainability Net Energy

Production ≤Consumption

Net EnergyProduction ≤Consumption

DistributedDistributed

UncompromisedUncompromisedEmissionsEmissions

DistributedDistributed

pProduct Quality

pProduct QualitySupply ChainSupply Chain

StandardsStandards

Vehicle FleetVehicle Fleet Energy ContentEnergy ContentFeedstock

AvailabilityFeedstockAvailabilityWorld TradeWorld Trade

Biofuel TargetsBiodiesel Production from OilsBiodiesel Production from Oils

700

acre70

per y

ear

500

Source: Fulton et. al600 84

TargetsRegion Current FutureBrazil 25% Ethanol in

Mill

ion

BTU

/a

28

42

56

ons

per a

cre

200

400

300

gasoline2.0% of diesel by

2008

5.0% of diesel by 2011

China 2.0% of gasoline & diesel by 2010

8.0% by 2020

Ethanol Production from Sugars

M

14

0

Gal

lo

100

0 Soybean Caster bean

Sunflowerseed

Rape-seed

Jatropha Palm

diesel by 2010

Europe 5.75%* of gasoline & diesel by 2010

10%* by 2020

India 10.0% Ethanol in E20, B20 by 2017 Ethanol Production from Sugars

acre

52.5600

700

500

Source: Fulton et. al

Indiagasoline

, y

USA 15.2 B gal 2012 36 B gal by 2022(~20% of transport pool)

re p

er y

ear

300

Mill

ion

BTU

/a

35.0

17.5200

400* Energy content basis

20% Substitution Equivalentt th L d M f llo

ns p

er a

cr

0

100

0 Barley Wheat Corn SugarBeet

SugarCane

to the Land Mass of ~CA, IN, NV, MI

Ga

Enablers for a SustainableBiomass Infrastructure

Global US

PD

Global

30

40

50Liquid Transport FuelsGasolineDieselCellulosic Waste

US

8

10

Liquid Transport FuelsGasolineDieselCellulosic Waste

1214

D

MB

P

10

20

30

Source: Purvin & Gertz /E i L E f

2

4

6MB

PD

0 Current PotentialEric Larsen: Energy for Sustainable Development, 2000

Oils ProductivitySource: Fulton et. al Cellulosic waste could make

i ifi t t ib ti t3500 455

0Current Potential

5670

ons

per a

cre

500400 n

BTU

/acr

e

a significant contribution to liquid transportation pool.Algal Oils could enable oils route to biodiesel Green

≈ ≈

142842

0

Gal

lo

100200

400300

0Soybean Caster

beanSun-

flowerRape-seed

Jatropha Palm

Mill

ion route to biodiesel, Green

Diesel and Green Jet.Algae

Increases Availability, Reduces Feedstock CostTechnology Breakthroughs Required

flowerseed

Camelina: Key Attributes

Initial Camelina Market

• Current markets Northwest US and Southern Canada

• Wide-spread acreage as rotation crop• > 200 million gallons by 2012 in the USg y

Low input oil seed crop (member of mustard family)Rotation crop with wheat

Future Camelina Market

Can grow on marginal landCost: $0.40-$0.70 per gallon less than soybean and palm oilNative to Northern EuropeNative to Northern EuropeMore than 3,000 years old: used as lamp oil in Greece and Rome

Alternative Biofuel Crops

Castor

PongamiaPongamia

LesquerellaLesquerella EuphorbiaEuphorbia

CrambeOiticiaOiticia

Crambe

One crop does not fit every location, but there is at least one crop for every locationone crop for every location

CropOil Year

(gal/acre/year)Cultivation(M Acres) Advantages as Oil Crop

Pongamia 500 Not characterized

Leguminous plant that does not require nitrogen fertilizer. Integrates well with other land usage such as grazing.

Oiticia (Licania) 88 16 Widely cultivated in Brazil for biodiesel. More saturated fatty acidsOiticia (Licania) 88 16 Widely cultivated in Brazil for biodiesel. More saturated fatty acids than many other natural oils.

Euphorbia (gopher sponge)

53 26 Produces oil both in seed and as latex in leaves & stem, non-edible, toxic

Castor Bean 42 32 No-edible oil due to toxins, oil mainly used for industrial purposes. Non-edible

Lesquerella 23 61 Grows naturally in arid and semi-arid landscapes and is native to areas in the southwest United States and Mexico. Similar oil to castor but no toxins. Low maintenance crop. Non-edible

Crambe 19 74 High C22 content in oil. Non-edible

Biofuels Overview: Technology PathwaysF d t k P d

Fermentation

C6 Sugars

Dehydration

Feedstocks Products

Distiller’s Grain

EthanolSugars

= UOP Areas

Enzyme Conversion

Acid or Enzyme Hydrolysis

CO2

Distiller s Grain

Starches

G

C5 / C6Sugars Renewable

Energy

Pyrolysis/ThermalDepolymerization

Lights

Direct Conversion

H2O

Hydrotreating

FischerTropsch

-

GreenGasoline

Lignin, Cellulose& Hemicellulose

Gasification

FCC

p

Alcohol Synthesis

Natural Oils

GreenDiesel/Jet

Transesterification

Hydrotreating Glycerine

FAME or FAEE

Co-Feed2nd Gen Feeds(Jatropha,

Camelina & Algal)

Current biofuel market based on sugars & oils. Use bridging feedstocks to get to 2nd Generation Feeds:

Algae & Lignocellulosics

FAEE

UOP Renewable Diesel & Jet Processes• Fuels use existing infrastructure, can be

DARPA Project PartnersFuels use existing infrastructure, can be transported via pipeline, and can be used in existing automotive and aviation fleet

• Diesel Fuel–Excellent blending component, enabling g p , g

expansion of diesel pool by mixing in “bottoms”

• Jet Fuel–Initially a DARPA-funded project to develop

h l d ili j

Commercial Airline Partners

process technology to produce military jet fuel (JP-8) from renewable sources

–Extended to commercial aviation in collaboration with Boeing

Performance Comparison

Petro-diesel

Green Diesel

Jet-A Specs

Green SPK

NOx Baseline -10 to 0 Freeze Point <-57°C -63.5

Cetane 40-55 75-90 Flash Point > 38°C 42.0

Cold Flow Properties Baseline Excellent Heat

Content> 42.8 MJ/kg 44.0Properties Content MJ/kg

Oxidative Stability Baseline Excellent JFTOT

(260) pass

Completed Flight Demonstrations

Successful ANZ FlightDemo Date: Dec. 30 2008

Feedstock: Jatropha oil

Feedstock: Jatropha and algal oil

Successful CAL Flight Demo Date: Jan. 7 2009

Feedstock: Camelina, Jatropha and algal oil

Successful JAL Flight Demo Date: Jan 30 2009Demo Date: Jan. 30 2009

Pyrolysis Oil to Energy & Fuels

Corn StoverCorn Stover

Available

ElectricityProduction

nery

P P

P P

AvailableToday

Fuel OilSubstitution

RefinP P

P P

Mixed WoodsMixed Woods

Fast Pyrolysis

Pyrolysis Oil

Substitution

T t F l

Biomass

Mixed WoodsMixed Woods

3 Years to complete

Transport Fuels(Gasoline, Jet

Diesel)complete

R&DChemicals

(Resins, BTX)

Conversion to Transport Fuels Demonstrated in LabCollaboration with DOE, USDA, PNNL, NREL

P l Green Distillate Green Distillate

Scope of WTW* LCAPetroleum

Based FuelsGreen Distillate

from Waste TallowGreen Distillate

from Energy CropsSeed Fertilizer Fuel Chemicals

Energy CropFarming

Energy CropTransport

Plant OilTallow

Extraction ofCrude Oil

OilExtraction

TransportWaste Tallow from Meat

Processing Industry

OilProcessing

OilTransport

a t O

Hydrogen

TallowProcessing

TallowTransport HydrogenTransport of

Crude Oil Transport

Renewable JetProcess Unit

Transport

Renewable JetProcess UnitRefining

Crude Oil

Gasoline, Jet, Diesel Green Diesel, Jet Green Diesel JetConsumer

UseConsumer

UseConsumer

Use

*WTW is either “well-to-wheels” or “well-to-wings”

, Green Diesel, Jet

Life Cycle Analyses for Green Diesel

1 4

1.6Cumulative Energy Demand Greenhouse Gases

8090

LUC Error Bar

0.8

1

1.2

1.4

)/MJ

(Out

put)

eq./M

J

80706050

eq./M

J

40005000

LUC Error Bar

0.2

0.4

MJ

(Inpu

t)

0.6

g C

O2 40

302010

g C

O2

1000

2000

3000

Diesel JatrophaGreenDiesel

TallowGreen Diesel

SoyGreen Diesel

0

Non-renewable, Fossil Non-renewable, Nuclear

Diesel JatrophaGreenDiesel

TallowGreen Diesel

SoyGreen Diesel

0-5000

CamelinaGreen Diesel

CamelinaGreen Diesel

Renewable BiomassRenewable, Water

Renewable, Wind, Solar, Geothe CultivationFuel ProductionUse

Oil ProductionTransportation

Significant GHG Reduction PotentialSignificant GHG Reduction Potential

Summary• Renewables are going to make up an increasing share of

the energy pool- Fungible biofuels are here

E ti l t l t i bilit it i (GHG t )- Essential to overlay sustainability criteria (GHG, water)• Feedstock availability is an important enabler

- First generation biofuels, though raw material limited, are an important first step to creating a biofuels infrastructure Bridgingimportant first step to creating a biofuels infrastructure. Bridging feedstocks are key

- Second generation feedstocks, cellulosic waste and algal oils, are on the horizonDi f d t k i iti ti bli i l t i bl- Diverse feedstock initiatives are enabling regional sustainable solutions

• Important to promote technology neutral and performance based standardsand performance based standards and directives to avoid standardization on old technology.

Portfolio of OptionsEnabled by a Robust Supply Chain

Portfolio of OptionsEnabled by a Robust Supply Chain