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3rd Transatlantic Market ConferenceGrowth & Security:
Energy and Energy TransportationStatus and future developments of biofuels
in Europe and the US
Washington, D.C., 13.-15. May 2007
Dr.-Ing. Ludolf Plass, Lurgi AG
2
The Blue Planet at NightDistribution of Energy Consumption
3Group ResearchPowertrain
Dr.
Hei
nric
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OP
R&D
Ref
inin
g P
anel
/ 19.
5.20
05
VOLKSWAGEN AG
Global Challenge ???
Increase in passenger car fuel consumption 2004:
India: 10% China: 15% Indonesia: 3 % EU: 1,2% USA: 0%
4
Fulfilling Mankind's NeedsA Challenge for the Technology
How to fulfill mankind's needs in futureHow to fulfill mankind's needs in future?
How to overcome the imbalance between How to overcome the imbalance between industrialized and developing countries?industrialized and developing countries?
5
Energy security: Few major concerns
World population rises by 240.000 people / day
200 Mio. new energy consumers per year
By 2015: 70% of world daily oil needs and 80% of oil tradeonly from three areas: - West Africa- Russia- Middle East (Saudi Arabia, Iran, Iraq)
Oil resources held by state owned companies hinder free flowing investments to asset rich producing and exporting areas:
~ 0,56 trillion $ / year investment required (IEA)~ 20% more than in 1990’s
6
Energy Security : Need for partnership
Strong inpendences between- public policy decision making - private sector action
Energy security / energy policy must be international
Typical examples - Baku-Tbilisi-Ceyhan Pipeline
(private sector with state owned companies / governments)- decarbonised fuels
(supportive regulatory and fiscal systems by governments)
Further developments- clear targets through public policy- externalities like carbon emissions priced
Next 20 years: fundamental change in energy business
7
Development of Energy Consumption
• Energy consumption will approx. double between 2000 and 2050
• In 30 years, renewable energy will be equivalent to the amount of energy from fossil fuels today
8
Long term oil demand / supply outlook
Developing countries show the strongest demand increaseOnly OPEC can increase supplies substantially
Area Demand SupplyMillion b/d 2005 2025 2005 2025
OECD 49,8 52,9 20,5 19,5Developing countries 28,7 52,9 16,1 19,9Transition countries 4,7 5,7 11,7 16,5Total no OPEC 83,2 113,1 50,1 58,9OPEC not counted 33,1 54,3
-------------------- --------------------World 83,2 113,1 83,2 113,1
Source: OPEC
9
Renewable resources: High potential worldwide..., but development is necessary
434
111137
North AmericaJapan
Ameri
0 0 0 0
Near East &
North Africa
1 232 39
W.Europe
014
32 40
harvesting residues
Oceania
America
1560
100125
E.Europe
1 8 14 17
East Asia
1021
178
221
410
sub-Saharan
41
149
331
Caribean &
Latin America
178
253
315
46
2
68
CIS &
Baltic States
South Asia
2,4
6,8
8
3,4
3,3
3,01,0
0,9
World energy consumption 2005 ~ 17 Bn t tce/Biomass ~ 10%World energy consumption 2050 ~ 27 Bn t tce/Biomass ~ 30%
Energy from renewable resources can be increased from ~10% today to ~30% by 2050
Mrd. t SKE
Source: Utrecht University Faaji 2006
10
Energy security, what can be done
“No go”Military means ⇒ no optionIsolation means ⇒ no optionSelf sufficiency means ⇒ no option
“Go”Develop maximum diversity of supply / infrastructureOil upstream investments have risenby >50% ≅$ 50 bn/a Investment required Global gas market emerging: more pipelines / LNGRaise recovery rates of existing oil / gas fields Develop next generation of supplies
Alternative energies, that are low in carbon
11
Alternative Energies Advance
Alternative energies will have a major effect on world energy demandon medium and long term
But requirements are:
Development of CDM (Clean Development Mechanism)CO2 emissions properly costedCO2 trading mechanism developed worldwide
Development of technologiesCarbon capture sequestration (CCS)CO2-utilization for enhanced oil recoveryWind / solar power / hydrogen / combined cycle gas turbinesCO2 recycle: Utilization of Alges, Methanol from sequested CO2and renewable Hydrogen
Synthetic fuels from biomass
12
Development of Fuel Mix in Europe: Vision 2030
SynFuel based onnatural gas
Oil based < 10 ppm Sulfur
SunFuelbased on Biomass
Others (Biodiesel, Bioethanol)
Oilbased
<500 ppmSulfur
today 10 20 30Years
Hydrogen regenerativ
~23% ~ 60 Mio. tpy
~35%
~38%
~4%
Vision 2030: only - 38% fuel based on oil
Less than 40 percent of fuel will be based on oil
Source: VW Fuel Strategy total fuel-consumption in 2030 ~ 250 Mio. tpy
13
Lurgi: Market leader for Biodiesel
66 Biodiesel plants on order20 Biodiesel plants in operation
14
Lurgi: Strong position in Bioethanol
Panda Hereford, USA150.000 tpa Ethanol from Corn, Power/Steam Production from cow manure
18 Bioethanol plants on order12 Bioethanol plants in operation
15
Fuel Production Technologies
Conventional fuels
Refinery UpgradingCrude Oil Convential Fuels
Nat. GasCoal
BiomassGasification
DME
Upgrading
Upgrading
Methanol
FTSynfuels
“real”Synfuels
Synfuels“equivalents”
Methanol
DME
Mt-Synfuel
FT-Synfuel
Methanation SNG
16
2nd Generation Biofuels : Much higher Biomass productivity
Biofuels – a comparison
Ethanol
1.200 – 3,200 l
BTL-Synfuel
4,000 l
Biodiesel
1.150 lPlant oil
1.250 l
Grainsugar
Complete plants
Plant oil
Liter diesel equivalentper year and hectare
Biofuels1st Generation
Biofuels2nd Generation
17
18
Second Generation BiofuelsFuel options of syngas and hydrogen
Based on Biomass gasification:
Fuel Cells
CO + H2
Hydrogen
MethanolDME
Medium BTU gas
GasolineDiesel
MTBE
Gasoline
CH4 (SNG)
I. Wender, Fuel Proc. Techn. 48 (1996) 189
19
Synfuels from Biomass
Lurgi’s BTL Technology is based on industrially proven process steps
FastPyrolysis
FastPyrolysis
Biomass
DieselHigh
Temp.Gasifi-cation
HighTemp.Gasifi-cation
MethanolMethanolMtSyn-fuels
MtSyn-fuels
Gasoline
LPG
Lurgi LR-CokerLurgi MPG Gasification
Lurgi Methanol Technolgy
Lurgi MTP Lurgi COD (South Africa)
20
Pyrolysis Process of Lurgi / FZK
M
HeizerSandkreislauf
M
Slurry
M
HeaterSand Cycle
M
Straw, Hay a.o.
Shredder
Cooler
Double Screw Reactor
Col
d, s
hred
ded
stra
who
t san
d ca
. 500
Pyrolysis Coke
Pyrolysis gas
Pyrolysis Oil
SlurryCoke
Source: FZKThe Lurgi flash-coker
21
Slurry mixed with Pyrolysis coke
Joint grinding of pyrolysis oil and
coke give pump able/ storable
slurry
Energy concentration from
biomass to slurry by factor 13
ca. 80% of the energy content of
the biomass is contained in the
slurry
22
MPG Gasifier
23
Lurgi‘s MtSynfuels® Route
Olefin Production
Olefin Oligo-merisation Gasoline
LPG
Kero/Diesel
H2from Methanol
synthesisWaterrecycle
Hydrocarbon Recycle
MethanolProduct
separation+ MD Hydrogenation
Hydrocarbon Recycle
Process water COD Plant South Africa
24
Forschungszentrum Karlsruhe
Energy- and mass balance
5-7 t Wood or Straw with 15 wt.% H2O
5.4 t Condensate/char - slurry plus ~ 1,8 t O2
1.2 t FTS-raw products
1 t Synthetic fuel
~ 40 % C 5+ FTS- ProdukteSynfuel ...
~ 5 % valuableC5-products
Lignocellulose 100 %
Schnellpyrolyse ~ 3 %
Kondensat/Koks – Slurry ~ 90 %
Flugstrom-Druckvergasung ~ 3 %
~ 13 %
ReaktionswärmeSynthese-Rohgas Synthese-Reingas
~ 76 %
FT- Synthese
FTS - Reaktionswärme
~ 18 %
~ 6 %
~ 5 %
nicht umgesetztes SyngasSyntheseprodukte
~ 51 %
~ 1 %
~ 1 %
~ 1 %
C5- - ProdukteTrennung
Lignocellulose 100 %
Fast pyrolysis~ 7 %
~ 3 %
Condensate/char – Slurry~ 90 %
Entrained -flow gasification ~ 3 %
~ 13 %
Heat of reactionSynthesis-raw gasSynthesis-clean gas
~ 76 %
FT- Synthesis
Heat of reaction
~ 18 %
~ 6 %
~ 5 %
Not converted SyngasSynthesis products
~ 51 %
~ 40 % C 5+ FTS- ProdukteSynfuel, waxes, olefines...
El. Power and HT steam:
~ 42 %Heat losses:Sum ~ 6 %
~ 1 %
~ 1 %
~ 1 %
C5 - Products
C5
Separation
Co-production of:chemicals, steam, electricity
25
regionale Pyrolyse- Anlagen
ZentralerCentral syngas and
fuel production
The slurry gasification concept
25 km
Regional intermediate fuel production
250 km
TransportationRadius
Energy density[GJ/m3]
Straw: 1.5
Slurry: 20
Diesel: 36
Distributed biomass
26
Zentralized / dezentralized Biofuels concept
Forschungszentrum Karlsruhein der Helmholtz-Gemeinschaft
Dezentralized pyrolysis
Zentralized Bio-Synfuels production
Synfuel potential Germany
Approx. 5 Mio. tpy Synfuelsfrom excess straw and wood waste
27
Road Map – time to Market – Lurgi’s BTL
Fast pyrolysis :
High temperature :Gasification :
MT Synfuels :
• Joint Development with FZK *)Start up Demo plant 6 /2007
• First contract expected 12/2007
• Development project in planning. Start ~ September 2007
• First contract expected 12/2009
• Development project with Volkswagen / Südchemie in planning, project start ~ September 2007
• First contract expected 12/2009
*) FZK: Forschungszentrum Karlsruhe
28
Combi Biofuel Plants for the Future
Bio syncurde
MtSynfuel-Production
160 kt/a Diesel
40 kt/a Gasoline
Gasification210 t/h
Biomass30 t/h
6 t/hsteam
Methanol
Biodiesel-Production
100 kt/a Biodiesel
32 t/h Saat
ca. 70 kha
14 t/hWaste
Bioethanol-Production
100 kt/a Bioethanol
35 t/hsteam
41 t/hGrain
40 t/hBiomass
ca. 70 kha
130 t/h Biomass
approx. 5 decentralLR-Pyrolysis-Plants
1. Plant 2. Plant 3. Plant
29
CoalGasification Gas cleaning Methanation SNG* to pipeline
Phase II
Phase I
Coal ExtensionGasification
ExtensionGas cleaning Mt-Synfuels Synfuels to
distribution
CO2 to Enhanced Oil Recovery
Phase III
Biomass Pyrolysis Bio-Syncrude
Montana: Coal/ Biomass to SNG/ Synfuels
GasificationGas cleaning
Mt-Synfuels Synfuelsto distribution
*SNG= Substitute Natural Gas
30
BTL is the winning option for the future
31
Summary II
The Development of the 2nd Generation „Synfuels“ based onCoals / Biomass / Natural Gas is the Winning Option in Future
- The spectrum of “Synfuels” will be broader in future
GTL / CTL plants will be large scale (> 30.000 bpd) and based on cheap coal / natural gas
Lurgi owns the complete technology chain
BTL plants will typically be in the range of 4.000 to 20.000 bpd = 0,2 – 1,0 tpy
Lurgi’s strategic goal is to own the complete technology chain
Biomass can cover 30%+ of the primary energy demand,but should primarily be used as Carbon Source
Biomass is the Key Alternative for Oil, Gas and Coal to reduceCO2 in transport sector
Biofuels based on Biomass Need :
- Demonstration of technology chain - Sustainable Support by Legislation
32
Back up’s
…. the following pages
33
Forschungszentrum Karlsruhein der Helmholtz-Gemeinschaft
40 Pyrolyseanlagen (20 M€)Kapazität ~ 0,2 Mt/a lufttrockenes Stroh
zentrale Vergasungsanlage (500 M€)Synfuel-Kapazität ~ 1 Mt/a
Grobe Kostenabschätzung:Diesel aus Öl ~ 0,4 €/kg
FT-Biosynfuel ~ 0,9 €/kg
Prozentuale Erzeugungskosten für BioSynFuel
Slurry Transport
Teuerer auf Grund von:hohem spezifischen Durchsatzkleineren Anlagenfestem Einsatzmaterial
32Überschussstroh
Restholz
Slurrytransport8
18
Strohtransport
Sauerstoff
Vergasungund FT Synthese
Schnellyrolyse
5
12
18
52Personal
34
MtSynfuels Pilotplant
35
Demonstration of FT Synthesis
36
Forschungszentrum Karlsruhe
Synfuels from coal: Fischer-Tropsch-
synthesis
Titan, Trinidad ca. 8 Mio. t/a
n CO + 2 n H2 (-CH2-) + n H2O
Sasol, South Africaca. 6 Mio. t/a
Cat., 200 °C
30 bar
Methanol synthesis
37
Forschungszentrum Karlsruhein der Helmholtz-Gemeinschaft
40 Pyrolyseanlagen (20 M€)Kapazität ~ 0,2 Mt/a lufttrockenes Stroh
zentrale Vergasungsanlage (500 M€)Synfuel-Kapazität ~ 1 Mt/a
Grobe Kostenabschätzung:Diesel aus Öl ~ 0,4 €/kg
FT-Biosynfuel ~ 0,9 €/kg
Prozentuale Erzeugungskosten für BioSynFuel
Slurry Transport
Teuerer auf Grund von:hohem spezifischen Durchsatzkleineren Anlagenfestem Einsatzmaterial
32Überschussstroh
Restholz
Slurrytransport8
18
Strohtransport
Sauerstoff
Vergasungund FT Synthese
Schnellyrolyse
5
12
18
52Personal
38
EU Biofuel Marketwhen meeting the EU Directive
EU 15 States; all notes in 1000 t, Basis Fuel Consumption 1998References: EU-Commision (KOM (2001) 547 fin.)
39
Biodiesel-FeedstockBa
umw
olle
Palm
öl
Rap
s
Altfe
tt
Palm
kern
Palm
olei
n
Soja
Riz
inus
öl
Coc
onut
Sonn
enbl
ume
Jatro
pha
Kara
nja
Lurgi has industrial experience with all Feedstock sources
40
Gasification HP POX - Freiberg
Demonstration plant for production of Syngas from Natural Gas, Liquid Hydrocarbons/Slurriesat pressures up to 100 bar sponsored by BMWA, SMWK, mg technologies
41
Biomass from agricultural waste
Forschungszentrum Karlsruhein der Helmholtz-Gemeinschaft
Bio-/Grünabfall6%
Altholz9%
Industrierestholz10%
Waldrestholz22%
Stroh (Überschuss-)21%
Gülle15%
Klärschlamm (kommunal, roh)4%
Hausmüll (Rest-)13%
Deutschland 2002: rd. 70 Mio. Mg oTS
Hausmüll (Rest-)11%
Klärschlamm (kommunal,
roh)4%
Gülle12%
Stroh (Überschuss-)
12%
Waldrestholz31%
Industrierest-holz11%
Altholz10%
Bio-/Grünabfall
8%
Baden-Württemberg 2002: rd. 8 Mio. Mg oTS
ITASLL
Aufkommen biogener Reststoffe und Abfälle
42
Key factors for BTL-success
43
GtL production capacity woldwide
source: various industrial publications
0
100
200
300
400
500
600
700
2005 2006 2007 2008 2009 2010 2015year
capa
city
[100
0 b/
d]
under discussion
under development
under construction
existing
CtL: Sasol 150,000 b/d existingChina 200,000 b/d under construction
2,000,000 b/d under discussion
100.000 bbl/d = 4.5 mt/year
44
CO2 reduction potential and area demand of biofuels
Share of biofuels: 15 mtoe (5.75% total fuel share EU 25)
0
25
50
75
100
CO2 reduction potential area demand
CO
2re
duct
ion
pote
ntia
l %
0
5
10
15
20
area
dem
and
(m
ill. h
a)ethanol conventionalbiodieselSunFuel (full plant)
45
Biomass potential in EU 25 in 2005
Group ResearchPowertra in VOLKSW AGEN AG
Biomass potential in EU 25 in 2005RENEW_EU-25 geography
SOUTH
WEST
EAST (CEE-8)
UK and Ireland
NORTH
Alpineregion
Overall potential
Maximum: 4380 PJ (102 mtoe)
Realistic: 3445 PJ (82 mtoe)
source: EC BREC, Renew, 2004
46
Biomass potential for BtL fuel 2004EU 15 EU 25 EU 28
Land coverage [mill. ha]
Arable land [mill. ha]
Forest area [mill. ha]
Permanent grassland [mill. ha]
Inhabitants [million]
Setaside land (17% of arable land), approx. 2020 [mill. ha]
Setaside land (9 % of arable land), 2004 [mill. ha] 9.0
Agricultural residues* (straw, maize res., perm. crops) [mtoe] 21.6
Forestry residues + wood industry byproducts* [mtoe] 25.5
Energy crops* [mtoe] 35.0
Total potential for SunDiesel from 9 mill. ha (today) [mtoe] 82.0 today
510397323
74
110
47
141
380
103
143
55
455
163
74
550
17.5 23.912.5
Source: * EC BREC, RENEW, 2004
European Centre Baltic Renewable Energy Centre: potential in 2040 = 80 mill. ha
47
Comparison of Biofuels
48
CO2 Reduction potential in power stations worldwide
Power stations account for > 40% of CO2 emissions
Power demand grows ~ 2,5 % p.a. worldwide
China starts a power plant every 3 days !
Less than half the generating capacity for need in 2030has been built so far (investment 9 trillion $)
Unique opportunity- place new capacities to reduce dependence and emissions
49
The international framework in agencies
IEA : International Energy Agency
Founded in 1973 to oversee energy security
Must match market conditions of today, not 1973 !
Include new significant consumers- China - India- OPEC countries- Russia
Supplies must be managed more effectively
50
Biomass potentials estimation for the EU 28 member states in 2040
source: EC Brec, Renew, 2004
Ener
gy
[mto
e/a]
Fuel
shar
e [
%]
substitution 2020total diesel
biomasspotential
trafficshare
fuelshare
50
100
150
200
250
300
10
20
30
40
50
60
woodyresidues
energyplants
0
agriwaste
0
70350 Boundary conditions:- 60% of the arable land for energy farming(no progress in yield/ha)
- 50% of biomass for transportation- Efficiency of production η = 50% - FT- diesel share 80%, kerosene + naphta20%
400 80