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Advanced biofuels and biorefineries:

Technology development and

industrial scale-up. Role of EBTP.ABBE Workshop 2015

Britta Müller

Agency for Renewable Resources

Fachagentur Nachwachsende Rohstoffe e.V.

Founded: 1993

Main office: Gülzow (Mecklenburg–Western Pomerania)

Support: Federal Ministry of Food and Agriculture (BMEL)

Employees: >80

Legal status: registered association

Tasks: • support of research, development and demonstration projects in the field of material and energetic use of renewable resources

• information and advice, public relations activities

• international and EU activities

Target Group: commercial enterprises, small and medium-sized enterprises ,private and public research institutions, universities, authorities, consumers

Agency for Renewable Resources Facts and Tasks

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EBTP Mission

the mission of the European Biofuels Technology Platform is to contribute:

• to the development of cost-competitive world-class biofuels value chains,

• to the creation of a healthy biofuels industry, and

• to accelerate the sustainable deployment of biofuels in the EU

• through a process of guidance, prioritisation and promotion of research, technology development and demonstration.

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Outline

• Role of Transport Sector

• Biofuels Technology

• Economic Aspects

• Biofuels Market

• Outlook

• Role of the EBTP

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Role of Transport Sector

• transport sector accounts for 50 % of global mineraloil consumption

• around 20 % of energy used worldwide, increaseexpected

• technology efficieny, traffic reduction or modal shifts

• expected biofuels demand ~ 27 % in 2050 (IEA)

• biofuels sector is primarily driven by mandates• energy security, • diversification of energy source, • mitigation of GHG emissions• support for agricultural sector/rural development

THE TECHNOLOGY

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Advanced Biofuels

• the European Biofuels Technology Platform follows the definition of the European Industrial Bioenergy Initiative (EIBI):

• advanced biofuels are those:

• (1) produced from lignocellulosic feedstocks (i.e. agricultural and forestry residues, e.g. wheat straw/corn stover/bagasse, wood based biomass), non-food crops (i.e. grasses, miscanthus, algae), or industrial waste and residue streams,

• (2) having low CO2 emission or high GHG reduction, and

• (3) reaching zero or low ILUC impact.

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Source : EBTP/EIBI

Thermochemical Pathway

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Source : EBTP/EIBI

Biochemical Pathway

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Main technology challenges

• technical challenges for all value chains: feedstock flexibility, energy and carbon efficiency, reliability & maintenance, capex efficiency

• Thermochemical Pathway

• feeders, gas cleaning, catalysts (VC 1/2)• biofeedstock compatible material and technologies, able to process a

wide range of biomass qualities (VC 3)• handling/stability of bio-oil, materials, specifications of intermediates

(VC 4)

• Biochemical Pathway

• preparation of feedstocks, enzymes (VC 5)• microorganisms, catalyst performance, bioprocessing (VC 6)• selection of strains, process design, water treatment, scale up (VC 7)

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• bioliq® Pilot Plant

• total Investment 64M €

• synthesis gas for fuels (DME) and chemicals productions

• lignocellulosic crops or residues; straw

• input: 0.5 t/h

• output: 100 l/h

Thermocemical Pathway: bioliq

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Biochemical pathway: Biochemtex

• Crescentino Plant

• 120 M€ of investment

• 270,000 ton/y of dry lignocellulosic biomass

• 75 M liters second generation Bioethanol

• 13 MW of green power from lignin

• operating at full capacity October 2013

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Biochemical PathwayBiorefinery• integration: existing biogas and

combined heat and power plant

• investments in new plant and renovation of existing plants amounts to 294 M€

• yearly turnover of the bio refinery of 147 M€

• technology: steam pretreatment and mixed sugar fermentation

• capacity: 37.5 t/h wheat straw (DM 86%)

• output: 2G ethanol (2017), lignin and vinasses (high DM) for biogas production

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• UPM investment: 150 M€

• input: crude tall oil

• product: renewable diesel

• capacity: 100,000 tonnes/a

• commissioning: summer 2014

• employment: 200 persons

• contributes approximately 25% of Finland’s biofuel target

Oleo chemical conversion: UPM

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ECONOMIC ASPECTS

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Source : EBTP/EIBI Implementation Jan. 2014

EIBI estimated costs for flagship plants (single project)

200-300 M€

400-1000 M€

150-250 M€

50-100 M€

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Source : EBTP/EIBI Implementation Plan Jan. 2014

EIBI estimated costs for flagship plants (single project)

200-400 M€

50-100 M€

100-300 M€

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Comparison of biofuel production costs

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Economic aspects

• investment costs (cost of debt, alternate investment)

• specific plant design

• higher for advanced biofuels than for 1st generation

• running cost once the plant is built• regional framework conditions

• raw material (fluctuating prices)

• by-products

• regional infrastructure

• key criteria for economic viability: ideal locations / infrastructure, secure market for products and long-term raw material supply

• there is no one-fits all situation as each biofuel plant requires itsown specific plant design

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Biofuels market - feedstock availability

• distribution of bioenergy resources varies among European countries

• consistent information on the distribution and logistics of agricultural and forestry residues

• competing demand from bioenergy and bioproducts

• competition for land and other resources

• price uncertainty and risk of increasing biomass market prices

• long-term biomass sourcing strategy is key for the success of a biofuels project

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Biofuels market - Policy

• challenge of societal acceptance

• very sensitive to global and regional policy

• current investments in the EU are risky due to

• RED revision

• ILUC and the capping of 1st generation• sub-target for advanced biofuels

• Post 2020

• no specific target for the transport sector

• different EU Member States need time to react and develop national strategies for the deployment of advanced biofuels

• investment in biofuels projects, including serving debt over 10-12 years and equity over 20 years is not possible without guarantees of regulatory stability

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OUTLOOK

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Outlook

• long term strategy for biofuels is needed

• the risk is big that developers and their financers leave the green fuels business for an indefinite time• built up knowledge disappears or is picked up elsewhere

(US, China …)• key individuals change work focus

• biofuels needs to be competitive against other alternative transport options • infrastructure• engine adjustments• GHG emissions

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ROLE OF THE EBTP

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Role of the EBTP

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EBTP Structure

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EBTP activities

•European Industrial Bioenergy Initiative (EIBI)

• mapping of research, studies, pilot plants and demonstration

• Stakeholder Plenary Meetings (Next one early 2016)

• contribute to EU consultations

• update the SRA/SDD documents (latest version 2010)

• bioeconomy activities (BeCoTeps, STAR-Colibri, ERA-NET Bioenergy, PPP Bioindustries etc)

• working group activities

• fact sheets (feedstock, technology, fuel fact, end-use sector, demonstration plants, country facts)

• position papers

• cooperation with other TPs (RHC, CCS, ERTRAC)

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Role of the EBTP

• main channel of dissemination via website and newsletter

• around 30000 unique visits per month

• high google ranking

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How to participate

•become a member of the Stakeholder Plenary•by signing up to the Newsletter, e-mails shots,

Stakeholder Plenary Meeting - keeping up to date with the biofuels world.

•by active participation in the Working Groups• input to position papers, input to the Strategic

Research Agenda, input to different other publications– assist in shaping the public opinion on biofuels.

all participation in the EBTP is free of costs.

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Disclaimer with respect to presented projects

• the presenter has gathered most of the information from contacts with project owners and technology suppliers and to some extent from Internet.

• some deviations from factual situation may be presented as information not fully up to date.

• the presentation does not claim to completely cover the given topic.

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For more informationwww.biofuelstp.eusecretariat@biofuelstp.eu

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Role of the European Biofuels Technology Platform

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Oleo chemical conversion: Neste Oil

• chemical conversion of oils and residues in Rotterdam

• capacity 800.000t

• investment 680 M€

• 2 plants in Finland (380,000t) and 1 in Singapore (800,000t)

• different end products can be used in public bus transport, aviation, passenger cars and heavy traffic

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26 March ABBE 2015 workshop