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1. Overall Project Goals and Objectives

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Presentation Outline

1. Overall Project Goals and Objectives

2. Organization of the Approach to meeting these Goals and Objectives (tasks and subtasks)

3. For each major task or objective please address in more detail

a) Technical or economic target or objective

b) All risks associated with meeting these targets or objectives

c) Milestones established to measure progress and financial or performance metrics

d) Go No/Go decision points e) Accomplishments to date f) Future plans and partners 4. Market and customers

5. Competitive Advantage 6. Strategic Fit

7. Conclusions and Discussion

(3)

Overall Project Goals & Objectives

• Development of enabling technology for catalytic hydrogenation of bio-oils to

upgraded liquid fuels and chemicals.

– To develop more cost-effective means to convert biomass into useful fuels and chemicals by a

thermochemical process.

(4)

Pyrolysis Bio-oils Upgrading Approach

light

products

medium products

heavy products

fast pyrolyzer

catalytic reactor

hydrogen recycle

char

H 2

biomass

bio-oil collector

heavy phase

light

phase

gas product recycle

(5)

• Batch reactor tests

• Continuous-flow reactor tests

• Economic assessments

Organization/Approach

(6)

Batch Testing

• Stirred batch reactor

• Goals:

– Screening tests

• Identify new

catalyst concepts

• Determine value of

feedstocks and

feedstock fractions

(7)

Continuous-Flow Reactor

• Fixed-bed tubular reactor

– 400 mL catalyst

• Operational flexibility

– 100 to 350 deg C – 10 to 200 atm

– 0.01 to 10 LHSV

• Goals:

– develop concepts from batch tests

• processing kinetics

• products for analysis

and testing

(8)

Technical or Economic Target

• Product costs need to be competitive with petroleum feedstocks

• Upgrading for fuel product cost target

– $26/bbl processing cost (refinery product slate from heavy bio-oil phase)

• Upgrading for chemical product cost target

– $26/bbl processing cost (10% cyclohexanol

with balance stable fuel oil)

(9)

Risks

• Risks for production of Liquid

Transportation Fuels and Chemicals and Materials are similar

• Product Risks

– yield of specific product

– production rate for specific product – final concentration to justify recovery

• Catalyst Development risks

– catalyst lifetime – processing rate

– chemical reaction pathway

(10)

Project Milestones

Project Milestones Type Performance Expectations Due Date Upgrading Pyrolysis

Oil

Upgrading Pyrolysis

Oil D Bench-scale evaluation of Bio- oil upgrading

Jan 2007 Go/No Go Upgrading Pyrolysis

Oil D

Demonstration of Bio-Oil Upgrading with industrial

participation

Sept 2008 Go/ No

Go Sept 2005 Evaluation of Innovative

Process Concept

D

(11)

Accomplishments

• Evaluated precious metal catalysts at low temperature for upgrading bio-oils and bio-oil fractions

– Direct processing can be accomplished without pre-processing for stabilization

– Different catalyst metals can be used to vary the product slate depending on intent for use as chemical or fuel products

– Heavy bio-oil fractions can be processed for higher yields of liquid product

– Industrially-performed economic assessments of use of products for petroleum refinery

feedstock show promising results

(12)

Year to Simple Payback for Conversion of Pyrolytic Lignin to Gasoline

0 1 2 3 4 5 6 7 8

$40/bbl $50/bbl $60/bbl

$18/bbl Pyrolysis oil

$14/bbl Pyrolysis oil Years

Based on Capital Cost of $30MM for HT/HCK Unit

(13)

Future Plans

• Continue catalyst development at bench-scale

– Batch testing of catalyst candidates – longer-term

operation of catalyst candidates of

commercial interest

• Work with UOP for process

incorporation into the petroleum

refining industry

(14)

• Potential customers:

– chemical marketers – petroleum refiners

– petroleum refining technology marketers

• Range of production costs:

– need to be competitive with fuel/chemical products from petroleum feedstocks

• Market dynamics:

– Petroleum refining feedstock for liquid transportation fuels is a large market

remaining strong for the foreseeable future

Market &

Customers

(15)

• Window of opportunity:

– medium- to long-term development

• Direct competition:

– petroleum-derived feedstocks, fuels and chemicals

• Issues of change:

– petroleum costs are single largest factor

– incentives for renewables may facilitate market penetration

• State of economics:

– UOP assessments suggest good near-term economics for feedstock to hydrocracking

Competitive

Advantage

(16)

• Company fit:

– catalyst development is a laboratory core competency

• OBP fit:

– Ag Residue, Perennials, Pulp & Paper, Forest Products pathways

– Product R&D Level B&C milestones

• Stage placement:

– Research track – Exploratory Research

• FY08 solicitation fit:

– Demonstration phase of an engineering scale prototype by FY08 is our current milestone.

– Industrial interest has been expressed.

Strategic Fit

(17)

B Milestone

(M 4.7) Demonstrate and validate chemical building blocks, chemicals, or materials from 5 biomass sugars that are economically viable (need multiple

cost targets for specific products) ($/lbs product)

Milestone Hierarchy –Agricultural Residue Processing Pathway

Milestone Fit

B Milestone

(M 4.6) Demonstrate and validate ethanol from 5 biomass sugars that are economically viable (need

multiple cost targets for specific products) ($/gal EtOH)

Supporting C Milestones:

1. Develop new organisms that can utilize five carbon sugars at a rate consistent with C6 sugar utilization

2. Develop new organisms that are robust with respect to impurities 3. Develop new organisms capable of co-fermenting (use C5 sugars at the

same time C6 sugars are utilized in order to minimize fermentation time)

Supporting C Milestones:

• Same 1-10 as for B milestone (M 2.2)

Ethanol Production from Mixed Sugars

C5 or C6 or mixed

C5/C6 Sugars conversion to Chemical and Material Products

B Milestone

(M 4.10) Demonstrate and validate combined heat & power from lignin intermediates/residues ($/KwHr, $/Klb Stm) B Milestone

(M 4.8) Demonstrate and validate high value chemical and material products from lignin

intermediates ($/lb product)

B Milestone (M4.9) Demonstrate and validate fuel products from lignin intermediates ($/gal) Lignin Intermediates/

Residue Conversion to Products

B Milestone

(M 4.13) Demonstrate and validate products (i.e.

ethanol from mixed alcohols) from lignin or biomass derived syngas for $0.60/gal by 2025

B Milestone

(M 4.14) Demonstrate and validate H2 production from lignin or biomass derived syngas for $xx/kg by 2025

B Milestone (M 4.15) Demonstrate and validate CHP production from lignin or biomass derived syngas

by 2025 Clean Syngas

Conversion to Products

Supporting C Milestones:

1.

1. Catalysts must achieve selectivity of greater than 90%Catalysts must achieve selectivity of greater than 90%

2.

2. Catalyst lifetime of at least 1 yearCatalyst lifetime of at least 1 year 3.

3. Catalyst fouling minimizedCatalyst fouling minimized

4. New membrane technologies need to be developed to recover products at low cost (cost target is less than 10-15% of product value)

Supporting C Milestones:

1. Catalysts must achieve selectivity of greater than 90%

2. Catalyst lifetime of at least 1 year 3. Catalyst fouling minimized

4. Separation technologies need to be developed/demonstrated that can recover products at low cost (cost target is less than 10-15% of product value)

Supporting C Milestones TBD Supporting C Milestones TBD

Supporting C Milestones TBD

Supporting C Milestones TBD

(18)

C5 or C6 or mixed C5/C6 Sugars conversion to Chemical

and Material Products Ethanol Production From Mixed Sugars

B Milestone

(M 5.7) Demonstrate and validate products from 5 biomass sugars (need multiple cost targets for specific

products) – similar to agro. Residues with different biorefinery opportunities ($/gal EtOH)

Milestone Hierarchy –Perennial Biomass Processing Pathway

Milestone Fit

B Milestone

(M 5.6) Demonstrate and validate ethanol from 5 biomass sugars that are economically viable – similar

to agro. residues with different biorefinery opportunities ($/gal EtOH)

Supporting C Milestones:

• Same as 1-3 of B milestone (M 4.6)

Supporting C Milestones:

• Same 1-10 as for B milestone (M 2.2)

Lignin Intermediates/

Residue Conversion to Products

B Milestone

(M 5.10) Demonstrate and validate combined heat & power from lignin intermediates/residues

($/KwHr, $/Klb Stm) B Milestone

(M 5.8) Demonstrate and validate high value chemical and material products from lignin

intermediates ($/lb product)

B Milestone (M 5.9) Demonstrate and validate fuel products from lignin

intermediates ($/gal)

Supporting C Milestones TBD Supporting C Milestones:

• Same 1-4 as for B milestone (M 4.8)

Supporting C Milestones TBD

Clean Syngas Conversion to

Products

B Milestone

(M 5.13) Demonstrate and validate products (i.e. ethanol from mixed alcohols) from lignin or biomass derived

syngas for $0.60/gal by 2025

B Milestone

(M 5.14) Demonstrate and validate H2 production from lignin or biomass derived syngas for $xx/kg by 2025

B Milestone

(M 5.15) Demonstrate and validate CHP production

from lignin or biomass derived syngas by 2025 Supporting C Milestones:

• Same 1-4 as for B milestone (M 4.8)

Supporting C Milestones TBD

Supporting C Milestones TBD Advanced Biomass

Fractionation and Conversion

B Milestone

(M 5.17) Demonstrate and validate products from new fractionation/consolidated process intermediates

Supporting C Milestones TBD

(19)

What Stage is the project in?

Stage Gate Fit

(20)

Technical Barriers Addressed:

Liquid Transportation Fuels

Cost of Liquid Transportation Fuels

Product Yield Production Rate Final Concentration

Product Recovery Capital Costs

Organism Development

Catalyst

Development 1

st

Tier

2

nd

Tier

3

rd

Tier

Biological Chemical Cost of Liquid

Transportation Fuels Cost of Liquid Transportation Fuels

Product Yield Production Rate Final Concentration

Product Recovery Capital Costs Product Yield Production Rate Final Concentration

Product Recovery Capital Costs

Organism Development Organism Development

Catalyst

Development Catalyst

Development 1

st

Tier

2

nd

Tier

3

rd

Tier

Biological Chemical

Barriers = Risks

Barriers = Risks

(21)

Technical Barriers Addressed:

Chemicals and Materials

Cost of Chemicals And Materials

Product Yield Product Purity Final Concentration

Product Recovery Capital Costs

Organism Development Fermentation Development Enzyme Development Separations

Catalyst Development Separations

1

st

Tier

2

nd

Tier

3

rd

Tier

Biological Chemical Cost of Chemicals

And Materials Cost of Chemicals

And Materials

Product Yield Product Purity Final Concentration

Product Recovery Capital Costs Product Yield Product Purity Final Concentration

Product Recovery Capital Costs

Organism Development Fermentation Development Enzyme Development Separations

Catalyst Development Separations

1

st

Tier

2

nd

Tier

3

rd

Tier

Biological Chemical

Barriers = Risks

Barriers = Risks

(22)

Conclusions/Summary

• Low-temperature

catalytic hydrogenation of bio-oil can be

accomplished

– different metals give different products

– processing conditions can be varied to produce different products

• Certain process conditions and

catalysts can be used to produce petroleum refinery feedstock with economically

interesting results

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