Biorefining New Opportunities for Alberta · • Capture 2% of expected global bio-based chemicals...

BiorefiningNew Opportunities for Alberta

Alberta Oil and More... 2

Alberta’s Agri-Food Growth Strategy $20B/$10B by 2010 Driving Sustainable Growth

The BioEconomy

An economy where the basic building blocks for industry and the raw materials for energy

are derived from plant/crop-based (i.e. renewable) sources



The Hydrocarbon Economy

• Enormous and sophisticated infrastructure:- extracting, processing, storing, distributing and utilizing products from fossil resources- intellectual and physical assets

• Many billions of dollars in public and private research



Challenges for the Hydrocarbon Economy

• Price sensitivity due to supply peaks• Negative environmental impacts • Exacerbating global climate change• Increasing global population and developing

country energy demands

2000 20502025

Supply

Natural Gas

Oil

Coal

Lignocellulose Biomass

Predicted Feedstock Supply Issues& Opportunities

Source: Bill Hunter

Predicted Feedstock Supply Issues& Opportunities

Source: Bill Hunter



• Outside Saudi Arabia, the largest deposits of oil in the world are in the Alberta Oil Sands

• In 2005 energy exports from Alberta were valued at $57.5 billion C

• Currently the U.S. is the main consumer of Alberta oil and gas:– 1.1 million barrels per day, supplying about 11% of

U.S. crude oil imports– 2.6 trillion cubic feet of natural gas per year,

supplying 60% of U.S. natural gas imports

What About Alberta?



“The Burning Platform”• Downtrend in real commodity prices• Agriculture sector challenged by declining commodity prices

and high input costs• Forests face infestation & climate change effects• Pulp and paper industry challenged by low cost global

producers– Need new products, markets to take greater advantage of

Canadian natural resources• Rethink highest and best use of natural gas

– Not oil sands upgrading, not petrochemical feedstock• Reducing GHG & other emissions requires consideration of

alternative feedstock for energy, chemicals, plastics, etc.



• Ethane/Ethylene from Biomass sustains Petrochemical feedstock (e.g. Nova)

• H2 from Biosyngas conserves NG and reduces CO2intensity of HOOS operations

• Transportation fuel derived from cellulosic biomass reduces CO2 intensity without impacting food supply

• Fine chemicals and chemical building blocks from agricultural and forest-derived feedstocks create significant new revenue streams

• Alberta biobased chemicals supply 25% of needs of energy sector

Opportunities – What if…



F E E D S T O C K SAgricultural Crops – Forest Crops – Petroleum

FuelsMaterialsChemicalsFoodHealth

Energy



Alberta’s Opportunity

• In North America, Alberta is unique in the combination of its natural resources and existing infrastructure



Biorefining in AlbertaUnlimited Possibilities

• Building on our strengths in feedstock production, existing infrastructure and using biorefining as a tool:– A diversified economy where biomass is a

significant feedstock for, and biorefiningprocesses deliver:

• transportation fuels, chemicals, materials, energy (heat/power), health products, and food



• An integrated solutions based approach building programs utilizing Alberta’s renewable resources and R & D capacity for the development of bio-materials, bio-fuels bio-chemicals and bio-energy





• Integrated Elements:– Research and Development Capacity– Private sector engagement– Incubation– Funding– Partnerships– Ministry support– Investment for the future



• Alberta Agriculture and Food • Alberta Innovation and Science• Alberta Research Council• University of Alberta

– Engineering– Agriculture, Food & Nutritional Sciences– Biological Sciences

• Agriculture and Agri-Food Canada• Olds School of Innovation• National Institute for Nanotechnology• Industry




• Alberta’s Nine Point Bioenergy Plan: C$240 million to support infrastructure development and innovation in bioenergy and fuels with funding for the next 5 years

• Fibre Roadmap• Infrastructure Investment

Alberta Centre for Biorefining:Strategy, Policy, R&D Support



Alberta Fibre Roadmap

• Building Biorefineries & an Integrated lignocellulose industrial cluster

• Transforming and sustaining the current lignocellulose-based industries, specifically pulp and wood products.

• Sustaining and enhancing forest and agriculture based communities

• Growing biocomposite, biomaterial, andbioproduct companies



Fibre Roadmap Value Chain Framework

Capacity B

uilding

Alberta Fibre Roadmap



Alberta Centre for Biorefining: Toolbox



• Production– Genomics– Agronomy– Soil science– Logistics– Water– Harvest technologies

Outcome = “designer” feedstocks

• Alberta Organizations:– Alberta Agriculture & Food

Lacombe, Brooks,Lethbridge, Edmonton

– Alberta Research CouncilVegreville,

• Agriculture, Agri-Food Canada

• Lacombe, Lethbridge– University of Alberta– University of Lethbridge




• Primary Processing– Post harvest handling

• Cleaning • Dehulling

– Milling/separation• Macrofractions:• Starch• Protein• Fibre• Cellulose• Hemicellulose• Lignin

• Alberta Capacity:– Alberta Agriculture and Food

• Agri-Food Discovery Place– University of Alberta

• Ag, Food & Nutritional Sciences• Agri-Food Discovery Place

– Olds College School of Innovation– Alberta Research Council

• Millwoods Facility




• Secondary Processing– Pretreatment of fractions

for further processing• Starch fractions

– Amylose/amylopectin– sugars

• Protein fractions– Amino acids

• Cellulose fractions– Fibre– sugars

• Hemicellulose fractions– sugars

• Alberta Capacity:– Alberta Agriculture and Food

• Agri-Food Discovery Place– Alberta Research Council

• Millwoods – Forest Products– University of Alberta

• AFNS• Agri-Food Discovery Place

– Olds College School of Innovation




• Tertiary Processing– Fermentation– Chemical conversion– Thermal conversion

• Alberta Capacity:– Alberta Research Council

• Millwoods– University of Alberta

• AFNS• Chem Eng• Biological Sciences




Alberta Centre for Biorefining: Priority Initiatives



Alberta Centre for BiorefiningUnlimited Possibilities



Alberta Oils & Lipid Utilization Program

• Oils & Lipids Utilization Centre– Industry and Government partnership– Primarily focused at the University of Alberta

• Alberta BioPlastics Network– Multi-Institutional Research Network focused on the utilization of

Alberta’s agricultural feedstocks for the production of specialty chemicals and polymers.

– Centered at the University of Alberta



Triticale Biorefinery Initiative• 10 year $70 M initiative• Industry & government partnership• Phase 1 Opportunity Assessment completed in

January 2006• Phase 2 Competitiveness of

current crop varieties initiated in fall 2006



Triticale Biorefinery Initiative• Near term: 2006 - 2008

– Forage – current pipeline of new varieties– Bioethanol – current pipeline of new varieties– DDGS – mid protein supplement for livestock feed– Identity preservation & biosafety – complete proof of concept R&D

to define requirements / feasibility– Feasibility of other products from starch & protein

• Medium term: 2008 - 2012– Improved yield platform – disease resistance, synthetic / hybrid– Value-added grain and straw quality– Novel processing – of present / improved quality

• Long term: 2012 - 2016– New output trait platforms– Novel trait processing



Flagship Initiative:Lignocellulosic BioConversion

Outcome: achieve 95% conversion efficiency of biomass

• Product focused: identification of chemical product opportunities (vs crop based platform)

• Utilize existing feedstock • Focus on improved conversion

methods for fibrous biomass– Find and develop new/optimized

enzymes and fermentation microbes from novel sources or design



Integrated Manure Utilization SystemIMUS

• Developed in partnership with the Alberta Research Council and Highmark Renewables

• The IMUS system is a project to convert livestock manure into biogas, bio-based fertilizers and reusable water.



9 point strategy• Commercialization/Market Development

Program– Part of the Energy Innovation Fund– $24 million over 3 years - $3 million to spend by

March 31/07– Existing or prospective processors looking to

expand biorefining facilities or capabilities in Alberta

– Biorefining Development; Technology Development and Commercialization; Market Development



Positioning Alberta as a World Leader in Bio-refining

• Augment and integrate existing facilities and expertise to provide a full range of crop and biomass processing capability– Biomass (plant/wood fibre) conditioning and pretreatment,

process enzymology– Biomass fractionation to lignin, cellulose and other mixed

hydrocarbon, chemical engineering– Cellulose saccharification to fermentable sugars– Fermentation technology, fermentation engineer– Vegetable oil processing (chemical, biological)– Sugar platform chemical processing– Biomass gasification



Biorefining Action Agenda• Invest in strategic R&D programs

– Oil & Lipid Utilization Centre– Triticale Biorefining Initiative (Whole crop biorefining) – Bioconversion Flagship (lignocellulosic biomass

conversion)– IMUS (Renewable Natural Gas)– CHP Project (Biomass gasification)

• Invest in HQP• Attract MNE investment• Invest in Pilot Scale Alberta Biorefining Centre

(strategic R D & D and commercialization infrastructure)



A biorefining strategy offers Alberta the opportunity to:

• Attract investment to Alberta• Move beyond a raw material source to value-added

production• Leverage existing petroleum sector infrastructure for

grow in biobased fuels and chemicals• Support innovation in forestry and agriculture• Utilize abundance of available feedstock• Provide critical process scale-up services to clients from

research, government, and industry• Respond to expressed needs of potential industry

partners• Alignment with Canadian biofuels strategies



Value of Action• Grow manufacturing sector: $15B by 2020• Capture 2% of expected global bio-based chemicals

market: $5B• Rejuvenate Alberta’s forestry industry: $2B • Grow value-added agriculture based products:

$10B by 2020• Manufacture 15% of Canadian biofuel demand:

$0.23B by 2010



Canadian Activities

• Current interest primarily in fuels • Concept of biorefining at the political and

industry level slowly emerging• Recognition that biomass is the future



Canadian Activities• Approximately 800 million – 1 Billion litres

of ethanol production• Two Pyrolysis plants processing about 100

tonnes of wood waste/day and both running well

• Gasification plants producing syngas for lumber dry kilns



Canadian Activities• Auto parts sector well advanced in biobased

auto panels and polyurethane foams for moulded auto parts

• Feedstock development – cereals, perennial grasses and oilseeds

• Several CHP projects under study involving biomass combustion

• Several anaerobic digestion operations – gas for combustion, heat and power ie EPCOR, Tembec



Canadian Activities• Several studies, “roadmaps”, mergers, national

initiatives in Agriculture and Forestry– Characterization of the Canadian Chemical Industry:

Market Opportunities for biobased Chemicals –Industry Canada

– Fibers & Polymers from Lignocellulosic Sources– Triticale Biorefinery Initiative– Flax Biorefinery Initiative – Flax 2015– Pulse Canada’s Pulse Innovation Project



Canadian Activities

• Several studies, “roadmaps”, mergers, national initiatives in Agriculture and Forestry– Auto 21– National Fibre Network– National Biorefining Network – first meeting in

Orlando at the World Congress



Canadian Activities• Several studies, “roadmaps”, mergers, national

initiatives in Agriculture and Forestry– Getting Value from Every Fibre– National Forestry Biorefining Roadmap– Alberta Fibre Roadmap– Merger of Canada’s three primary forest sector

research institutes: FERIC, Forinteck and Paprican = Canadian Wood Fibre Centre of Natural Resources Canada



Canadian Initiaitves• The Canadian Biomass Innovation Network

(CBIN) an interdepartmental federal network that supports applied R & D

• Agriculture & Agri-Food Canada has announced a new program called Agricultural Bioproducts Innovation Program – put in place specifcally to support biorefinery projects started by CBIN –focused on conversion of Ag feedstocks to energy and industrial products



Canadian Activities

• Federal Initiatives:– Oilseed Integrated (biodiesel) biorefinery– New and Improved fatty acid biomass

feedstocks– Wheat ethanol research and development– Promotion & development of starch based

biopolymers



Canadian Activities• Federal Initiatives:

– Developing short rotation plantation/Agroforestry systems for bioenergy generation

– Optimizing the Carbon Value chain in the pulp and paper process biorefinery

– Forest products bio-refinery/pre-hydrolysis of hemi-cellulose in wood chips



Canadian Activities• Federal Initiatives:

– Agriculture Residues for bioenergy & bioproducts

– Natural fibres initiative for biochemicals & biomaterials

– Renewable energy for greenhouses: biomass residues and advanced conversion technologies



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Biorefining New Opportunities for Alberta · • Capture 2% of expected global bio-based chemicals...

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