Industrial Biorefineries
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Transcript of Industrial Biorefineries
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7/28/2019 Industrial Biorefineries
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Agenda
The Future of Industrial Biorefineries
Biorefineries in North America: Challenges
and Opportunities
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Summary: Collaboration-based
solution is a key.Driving forces
World population growth, (GHG) emissions, sustainable energy, chemicals and materials, energy security,climate change.
BiorefineriesNew technologies will allow us to bridge the gap between economic growth andenvironmental sustainability in the long run.
Biorefinery involve many stakeholders from various sectors and thus need collaboration-based solutions
Biorefineries need multi-disciplinary technology (e.g. for fermentation, gasification and chemicalconversion, and also for pre-treatment and storage) to ensure that bio-based products break even. This will
require the concerted action of various stakeholders such as grain processors, chemical companies, andtechnology players to cover all aspects of the complex biomass value chain, from feedstock productionto end-user industries.
To overcome the challenges, various stakeholders need to play an active role in promoting theindustrialization process of biorefinery systems including
Governments (e.g. policy, R&D investment, technology infrastructure, regulation, balancing food-energy security)
Companies highly exposed to fossil feedstock (Alternative / replacement)
R&D and new technology start-up (provide innovative conversion technologies)
Retail and business consumers (Eco value / perceived benefit from environmental sustainability)
NGOs and public authorities (to ensure development of the industry in a manner compatible withthe highest environmental and social standards and ensure environmental sustainability)
CollaborationDevelopment of biomass supply chain
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Biorefinery Concepts (1/2)
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Sugar Starch Vegetable oil
Depending on the feedstock and the desired output, biorefineries employ a variety
of conversion technologies (e.g. fermentation, gasification and transesterification)
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Biorefinery Concepts (2/2)
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Lignocellulosic
Depending on the feedstock and the desired output, biorefineries employ a variety
of conversion technologies (e.g. fermentation, gasification, and transesterification)
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Biomass value chain
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Revenue Potential. There are significant revenue potentials along the entire biomass
value chain. The values given (circle) are approximate business potential in US$billions by 2020.
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Strategic Relevance for Selected
Industries
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Impact of biorefinery on relevant industries
Agriculture
Increase the overall market size foragricultural products
Economics of food/feed productionvs other land uses
Impact on food prices
Technology to increase agricultural
productivity New plants and novel traits
Increase in fertilizer use
Automotive
Flex-fuel vehicles
Biofuels to reduce the tailpipe GHGemissions to meet upcomingregulations
Aviation
Alternative fuels for aviation haveto have a high energy density, a lowfreezing point.
Alternative aviation fuels should bedrop-in fuels, miscible withpetroleum-derived kerosene at anypercentage. (e.g. FT liquid, hydro-treated vegetable oil)
By 2050, second-generationbiofuels, in the form of BTL areexpected to contribute 30% of theaviation fuel mix
Chemical
Substitution with green alternative
of the same functionality andperformance.
Rather than building entirebiorefineries, mostly chosen toreplace selected chemicalintermediates in their currentproduct portfolios driven byeconomics and sustainabilityconcerns
Energy
The fundamentals of power
generation from biomass areeconomically quite attractive whencompared to other renewablepower options, and will requirelower subsidies in contrast to windand solar power.
Transportation
The transportation industry is
looking at biofuels as a means toreduce the carbon footprint
Transportation constitutes almost60% of global oil demand with 1.6%annual growth rate to 2030.
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Key Challenges of Commercialization: Technical
Challenge Feedstock Yield and Composition of Biomass.
Feedstock yield and composition of biomass which can do best for optimal conversion efficiency. (low
lignin plant by GM technology) Security of feedstock (technology to improve weather tolerance of plant)
Efficient Enzymes
Enzymes for conversion of lignocellulosic material to fermentable sugar.
New technology for biomass valorization (Lignin as a value added chemical instead of burning for powergen.)
Microbial Cell Factories Production of host cell used and Biofuel-Producing Organisms
Novel catalysis technologies are also needed to transform the chemical intermediates into commercialproducts. (e.g. Lactic acid to PLA)
New recovery methods to recover product from the fermentation broth.
Processing and Logistics.
Transportation of low-density biomass at lower cost by using densification techniques (increased density).
Preservation techniques to control physical and chemical modification of biomass during pre-conversionprocessing.
Bio-based product distribution network is another necessity,
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Key Challenges of Commercialization: Commercial and
Strategic Challenges Integration into Existing Value Chains
Drop-in chemicalReplace molecules in existing value chains easily with biochemical(e.g. bio-ethylene/petro-ethylene)
Bio-based products that cannot easily be integrated into existing value chains (e.g.bioethanol as a fuel)
Novel products based on new intermediates, e.g. bio-based polymers, usually havedifferent properties to existing polymers (e.g. PLA)
Funding Difficulties
Funding is becoming increasingly tight.
Large amounts of capital are needed to commercialize the biorefinery technology.
High uncertainty with respect to the profitability of a biorefinery
Uncertainty Facing a New, Unconventional Field.
the inability to get a price premium for bio-based products when compared toconventional petroleum-based products
Insufficient, uncertain public incentives
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Land-Use Change and Its Effect on GHG Emissions
GHG emissions critically caused by land-use change.
Direct land-use change (DLUC) occurs if feedstock for biorefinery purposes (e.g. soybean for biodiesel) displaces a
prior land-use (e.g. forest), thereby generating possible changes in the carbon stock of that land. Indirect land-use change (ILUC) occurs if pressure on agriculture due to the displacement of a previous activity
from the production of biomass feedstock induces land-use changes in other locations.
Land-use change can have either a positive or negative effect on the GHG balance of biorefinery outputs. Thus,there is a need for a comprehensive agronomic model of food and fuel production.
Link between Commodity Prices and Biorefineries
Impact of bio-production on in food supply and price. (e.g. 1 st Gen. ethanol)
Development of second-generation biofuels that may put less pressure on the link between food prices and fuel.
Reputational Risks
Biorefineries are run are currently NOT broadly accepted in their entirety by the general public.
Concerns are multiple (e.g. biodiversity, damage rural communities through large multinational corporations,adversely affect labour conditions, make excessive use of water resources or damage the food supply)
Legislation-driven Deforestation
There are significant uncertainties in emissions arising from deforestation due to demand for biofuels is closelylinked to the land-use change.
High targets for bio-based product manufacturefavouring biorefineries and bio-based economy were set by policymalerbut they do not account for sustainability issues (e.g. incentives exist to cut down forests for land used forbiofuel plantation)
Key Challenges of Commercialization: Sustainability
Challenge
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Recommendations: The Role of Government The Role of Government
Governments have a key role to play in providing seed support particularly at the pre-
competitive stage. The principle of command and control could apply to biorefineries. By
setting stringent regulations in a sustainable manner, the bio-industry will respond in a
similar way, driving technological advances and overcoming commercial challenges.
Creating MarketsBoth mandates and subsidies introduced by governments will
ultimately create the markets to support biorefineries and encourage global
competition.
Energy SecurityEncouraging local energy security will also benefit the environment
and boost rural communities. Inform the public that bio-based products are a realistic
supplement to fossil-based products but that they cannot mitigate the rising demand for
fossil fuels
Climate Changethe use of bio-based sources of energy and feedstock should be
encouraged by governmental regulation. (e.g. lower CO2 emissions target)
CollaborationSet up public-private partnerships to initiate private sector investments
and reduce the delay between product development and commercialization.
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The Role of Policy and Regulation
Mandatesset by governments will support the production of bio-based products. Subsidies and incentives should be given to entrepreneurs or businesses considering low-carbon petroleum
replacement strategies to encourage investment in new technology and infrastructure and reduce the reliance on public
funding. (e.g. biobased plastic could be subject to tax reductions)
Trade barriers to biomass feedstock or products are a substantial obstacle to the establishment of a working
marketplace for biomass.
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Recommendations: The Role of Business and
Investment and R&D The Role of Business and Investment
Investments in biorefinery infrastructure must be supported at an early stage to ensure biofuelsproduction can keep up with the growing demand for sustainable fuels. Investment is essential to:
Support the development of global biomass supply chain
Develop and support a reliable upstream supply chain able to mobilize a sufficient level offeedstock available for conversion, but not at the expense of food/land use
Grow larger quantities of energy crops than is currently under cultivation
Organize feedstock storage facilities to ensure a continuous supply of feedstock throughout theconversion process
Ensure growth of a global industry through transportation and trading infrastructure
The role of Research and Development
Research into conversion techniques and feedstock processing should be encouraged to achievethe diversification of feedstock supply and greater conversion efficiency.
Research into agriculture and crops should be supported to gain a better understanding of croprotation, land management, land-use change issues, the food vs fuel trade-off, cultivation andharvesting techniques, and natural resources.
Research into the optimization of biorefineries should be supported to create a biorefineryanalogous with todays oil refinery.
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Agenda
The Future of Industrial Biorefineries
Biorefineries in North America: Challenges
and Opportunities
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Biorefineries in North America: Challenges and
Opportunities Fully flexible and fully integrated facilities are the endgame
for the biomass producers.
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Technology Regulation/Policy Economic /social
R&D seems underfunded in areas of chemistry and
process technology, especially in advanced biomass
sources.
The open challenge is feedstock flexible technology
platform.
Technical maturity falls short of delivering its full
value to the economy. Still need technology to make
product/ process performance and cost
competitive.
There is lots more value waiting to be extracted
from optimization, e.g. separation; optimize the use
of resources andminimize wastes.
Acadamia-industry collaboration can yield
significant impact in the early development of
technical skills needed in biorefineries.
Systems-based approachintegrating multiple
disciplines together into a technology for
biorefinery solution.
Scarce skilled talent, especially in areas that
Policy/regulation is
possibly the most critical
enabler in the US.
Uncertainty of regulations
is a big issue.
Industry needs regulatory
certainty.
A stable, working IP
protection could
accelerate biorefineries.
Uncertainty of profitability is a larger
issue than scarcity of capital.
Potential volume needed and
complexities in supply chain and
regulation make the future ofbiorefinery extremely uncertain.
Consumer adoptionSustainability is
still not a significant differentiator in
the eyes of consumers unless they can
directly experience the benefits.
Geographiesfast technical
development with low-cost productionin other geographies.
Good resource managementfood and
fuelneed to be highlighted to avoid
negative social perception.
Challenges and opportunities inherent to the implementation ofFullyintegrated Biorefineries
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Biorefineries in North America: Strategic ModelRational
Different technologies for biorefineries are currently at different stages of maturity
Collaborative action is more likely focused on debottlenecking the development process by focusing on a few
areas of common benefit. This is an ideal scenario to build on and develop a cross-industry, value networksapproach.
Areas where collaborative approaches can move the industry forward
Developing systems thinking for the entire industry
Working towards regulatory certainty
Adopting an iterative development in which the technical experience, consumer awareness and market maturitygained with leading products such as ethanol can be rapidly included in the development of other products andtechnologies.
Collaboration Model should consider:
Consensus on which products and technologies have a higher likelihood of success to be fed asrecommendations to government policy maker.
Strategic balancing among three type of innovation (a) disruptive technologies to existing markets, (b) newmarket creation through technology development (or deployment) and (c) incremental innovations
Building long-term relationships
Building on a solid understanding of the technical base Building from engineering/commercialization projects and not from science projects
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