biofuels issues, trends and challenges

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Biofuels Issues, Trends and Challenges "RENALT ENERGY" - providing integrated solutions to "Green" petrochemicals, integrated Bio-Refining /conventional oil Refining, and Biomass-to-chemicals, primarily through Energy and Process Consultancy. Biomass-to-"Green" chemicals: Biomass-to-chemicals refers to the process of producing chemicals from Biomass. The major Biomass -to-chemicals processes utilized in worldwide, with our strategic focus on,  Biomass-to-methanol, MTO and MTP processes that produce the same chemical products, such as ethylene and propylene, as the petrochemical facilities, due to better cost efficiencies and greater demand for these chemicals. We also have interest in, Biomass-to-olefins, Biomass-to-PVC, Biomass to-aromatics and Biomass-to-ammonia/urea processes. We provide a broad range of integrated services spanning the project life-cycle from feasibility studies, consulting services, provision of proprietary technologies, design, engineering, and after-sale technical support.      

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Page 1: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels Issues, Trends and Challenges

Gerard B. Hawkins Executive Director

Page 2: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

This presentation looks at the opportunities and challenges in developing sustainable biofuels, focusing on ethanol and biodiesel, the most widely available biofuels

To discover the other technology, operations and infrastructure improvements underway across the aviation industry.

Page 3: Biofuels Issues, Trends and Challenges

“Biofuels is a collective term for liquid fuels derived from renewable sources, including ethanol, biodiesel, and other renewable liquid fuels.”

Biofuels Definition

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 4: Biofuels Issues, Trends and Challenges

Fuels derived from CO2-net neutral feedstocks. Impact Sectors • Transportation • Utilities • Manufacturing Gasoline Consumption

Biofuels Definition

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 5: Biofuels Issues, Trends and Challenges

•Manufacturing Gasoline Consumption

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 6: Biofuels Issues, Trends and Challenges

Biomass to Renewable Fuels

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 7: Biofuels Issues, Trends and Challenges

Other Routes to Renewable Fuels

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 8: Biofuels Issues, Trends and Challenges

Biofuels: Market Highlights

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Ethanol grew from 8 percent of U.S. gasoline consumption by volume in 2009 to nearly 10 percent in 2011 and in the first eight months of 2012. With almost all gasoline in the United States already blended with 10 percent ethanol (E10), the maximum level approved for use in all cars and light trucks, significant increases in domestic consumption of ethanol face a blend wall unless higher percentage ethanol blends can achieve significant market penetration.

Page 9: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

While the U.S. Environmental Protection Agency (EPA) has approved use of a 15 percent ethanol blend (E15) for model year 2001 and newer cars and light trucks, concerns related to automobile warranties, potential liability for misfueling, and infrastructure costs are likely to limit E15 use to low volumes in the near term.

Page 10: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Exports of ethanol increased substantially as producers looked abroad for new markets and Brazil experienced a poor sugar harvest during 2011-12. In the 2010/11 agricultural marketing year,2 40 percent of the corn crop and 14 percent of soybean oil production was used to produce biofuels and other products, including distillers grains for use as animal feed. The federal excise tax credits for non-cellulosic ethanol and biodiesel and the ethanol import tariff expired at the end of 2011.

Page 11: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

A serious drought in the midwestern United States during summer 2012 lowered production estimates for corn and other crops, resulting in higher prices and a reduced forecast for biofuels production for the 2012/13 marketing year. Plans for a pipeline to deliver ethanol from the Midwest to the Northeast were withdrawn during 2011.

Page 12: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Cellulosic biofuels production to date is far below the targets set by the Energy Independence and Security Act of 2007 (EISA 2007). EPA issued waivers that substantially reduced the cellulosic biofuels obligation under RFS2 for the 2010, 2011, and 2012 program years.

Page 13: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Even that anticipated level of commercial production failed to materialize. There was no production of cellulosic biofuels or Renewable Identification Numbers (RINs) in 2010 or 2011. While a small number of cellulosic RINs may be available to be applied towards the reduced RFS2 requirements for 2012 set under EPA’s waiver,4 production of cellulosic biofuel RINs in 2012 is likely to be well short of the reduced 2012 requirement.

Page 14: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

World biofuels supply by type

Page 15: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Ethanol and biodiesel U.S. summary, 2009-11 (million gallons unless otherwise noted)

Page 16: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights Conventional and Advanced Biofuels

Page 17: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights Advanced Biofuels

Page 18: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Page 19: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Conventional Bioethanol: EU Production, Supply and Demand Table

Page 20: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights Conventional Bioethanol: EU Production, Supply and Demand Table

Page 21: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Conventional Bioethanol: Production Capacity

Page 22: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Feedstock Use

Page 23: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights Conventional Biodiesel: EU Production, Supply and Demand Table

Page 24: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights

Conventional Biodiesel: EU Production, Supply and Demand Table

Page 25: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels: Market Highlights Conventional Biodiesel: EU Production, Supply and Demand Table

Page 26: Biofuels Issues, Trends and Challenges

Biofuels: Incentives for Expansion

Legislation and regulations are important factors in the production and consumption of ethanol and biodiesel.

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Processing plants are being built to produce the required annual volumes and market participants are sensitive to legislative and regulatory developments.

RFS structure with 2022 mandated volumes (Billion gallons)

Page 27: Biofuels Issues, Trends and Challenges

Biofuels: Incentives for Expansion

EPA issues new rules for biofuels use each year establishing the Renewable Fuel Standard (RFS2) volume requirements and associated percentage standards that will apply in the following calendar year for cellulosic biofuels, biomass-based diesel, advanced biofuels, and total renewable fuel.

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Renewable Fuel Standard in billions of gallons per year

Page 28: Biofuels Issues, Trends and Challenges

Biofuels: Incentives for Expansion

EPA granted approval in January 2011 for the use of gasoline blended with 15 percent ethanol (E15) in model year 2001 and newer vehicles. − Numerous ethanol producers received approval to sell their products for blending into E15. − The first gallons of E15 were sold in July 2012 in Lawrence, Kansas.

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Key legislation and regulations issued since 2009

Page 29: Biofuels Issues, Trends and Challenges

Biofuels: Incentives for Expansion

California continued work on the Low Carbon Fuel Standard (LCFS), a state-enacted policy to reduce greenhouse gas emissions from motor vehicles. − Implementation began in January 2011 but was halted by an injunction in December 2011 as two separate lawsuits worked their way through the state and federal courts. − The injunction was lifted in April 2012 but litigation continues.

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Key legislation and regulations issued since 2009

Page 30: Biofuels Issues, Trends and Challenges

Biofuels: Incentives for Expansion

The Volumetric Ethanol Excise Tax Credit (VEETC) of $0.45 per gallon of ethanol blended with gasoline expired on December 31, 2011. The $0.54-per-gallon tariff imposed on imported fuel ethanol expired on December 31, 2011. The retroactive reinstatement of the $1.00-per-gallon biodiesel tax credit that occurred in late 2010 was effective for biodiesel produced in 2010 through its expiration at the end of 2011.

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Key legislation and regulations issued since 2009

Page 31: Biofuels Issues, Trends and Challenges

Biofuels: Incentives for Expansion

Energy Act of 1992 •USDA Commodity Credit Corporation's (CCC) Bioenergy Program •Energy Policy Act of 2005 [the Renewable Fuels Standard (RFS) phase-in]–2 Provisions

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Earlier Key legislation and regulations

Page 32: Biofuels Issues, Trends and Challenges

Biofuels: Incentives for Expansion

•EPA Diesel Regulations - Introduction of ultra-low sulfur diesel (ULSD) - Biodiesel as lubricant additive (causes engine damage). - Addition of B2 restores lubricity.

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Earlier Key legislation and regulations

Page 33: Biofuels Issues, Trends and Challenges

Biofuels: Incentives for Expansion

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Selected world biofuel policies

Page 34: Biofuels Issues, Trends and Challenges

Biofuels Production Methods

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biofuels production technology continues to improve, both for mature processes, such as corn-based ethanol and vegetable oil-based biodiesel, and for new processes, such as renewable diesel, renewable jet fuel, and cellulosic biofuels.

Page 35: Biofuels Issues, Trends and Challenges

Biofuels Production Methods

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Biodiesel producers have diversified their slate of raw materials from primarily soybean oil to a mix including: -soybean oil, -- non-food-grade corn oil, -- various types of waste greases

Page 36: Biofuels Issues, Trends and Challenges

Biofuels Production Methods

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Traditional biodiesel cannot be commingled with jet fuel in product pipelines in any measurable quantity, due to biodiesel’s solvent properties48 and potential problems with materials compatibility. Biofuels producers therefore looked to a different production technology that would use the same inputs normally used for biodiesel.

Page 37: Biofuels Issues, Trends and Challenges

Biofuels Production Methods

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Instead of the reaction of renewable oil with alcohol to produce biodiesel, the renewable oil can be reacted with hydrogen (hydrotreated) to produce a drop-in fuel compatible with existing infrastructure and equipment. This process can be used to produce renewable jet fuel or renewable diesel fuel that does not adversely affect jet fuel when the two products are shipped on the same petroleum product pipeline.

Page 38: Biofuels Issues, Trends and Challenges

Cellulosic Production

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Progress on the commercialization of cellulosic biofuels has been slower than envisioned in 2007, when the RFS2 was enacted. The original RFS2 legislation called for 100 million gallons of cellulosic biofuel consumption in 2010.

Page 39: Biofuels Issues, Trends and Challenges

Cellulosic Production

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Cellulosic biofuels projected production and actual domestic sales, 2010-12

Page 40: Biofuels Issues, Trends and Challenges

Cellulosic Production

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Selected cellulosic biofuels projects studied by EIA, 2009-12

Page 41: Biofuels Issues, Trends and Challenges

Cellulosic Production

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Cellulosic biofuels projects currently projected to produce commercial volumes during 2012 or 2013

Page 42: Biofuels Issues, Trends and Challenges

Biofuels Key points about biofuels

Produced from renewable biological resources such as plant material (rather than traditional fossil fuels like coal, oil and natural gas). Absorbs carbon dioxide from the atmosphere as the plant matter (biomass) is grown, which is then released back into the atmosphere when the fuel is burnt.

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 43: Biofuels Issues, Trends and Challenges

Biofuels Key points about biofuels

First-generation biofuels have been used for a number of years for transport, home heating, power generation from stationary engines, and cooking. Second-generation biofuels are derived from new sources that do not compete for resources with food supplies and can be used in aviation.

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 44: Biofuels Issues, Trends and Challenges

Biomass to Biofuels: Possible Routes

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 45: Biofuels Issues, Trends and Challenges

Biomass to Fuels

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 46: Biofuels Issues, Trends and Challenges

Next Generation Technologies

Maximize C Conversion Non-food feedstocks

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

Page 47: Biofuels Issues, Trends and Challenges

RENALT ENERGY

•Biogas upgrading using membranes templated with supercritical (Sc) CO2.

•Advanced concept in C sequestration: CO2recycling by catalytic conversion into bioalcohols. •Ultra-deep (< 5 ppm) sulfur removal from biomass-derived fuels: The next-generation nano catalyst based technology. •High conversion once-through catalysis: Biomass-derived syngas to renewable diesel.

Research Projects

Page 48: Biofuels Issues, Trends and Challenges

RENALT ENERGY

•Advanced concept in C sequestration: CO2recycling by catalytic conversion into bioalcohols. •Biofuel combustion: combustion characteristics and emissions. •PEM fuel cells (Bipolar plate technology): efficiency management with bioalcohols as fuel feed. •H2 production by thermophillic bacteria. •Interaction of biofuels with skin tissue: Potential toxicity of oxygenated fuels.

Research Projects

Page 49: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

APPENDIX: EIA Estimates

Page 50: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 51: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 52: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 53: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 54: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 55: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 56: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 57: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 58: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 59: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 60: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 61: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 62: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 63: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 64: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 65: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

EIA Estimates for Transportation Sector

Page 66: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

"RENALT ENERGY" - providing integrated solutions to "Green" petrochemicals, integrated Bio-Refining /conventional oil Refining, and Biomass-to-chemicals, primarily through Energy and Process Consultancy. Biomass-to-"Green" chemicals: Biomass-to-chemicals refers to the process of producing chemicals from Biomass. The major Biomass -to-chemicals processes utilized in worldwide, with our strategic focus on, Biomass-to-methanol, MTO and MTP processes that produce the same chemical products, such as ethylene and propylene, as the petrochemical facilities, due to better cost efficiencies and greater demand for these chemicals.

Page 67: Biofuels Issues, Trends and Challenges

RENALT ENERGY Renewable and Alternative Energy for the New Millennium

We also have interest in, Biomass-to-olefins, Biomass-to-PVC, Biomass to-aromatics and Biomass-to-ammonia/urea processes. We provide a broad range of integrated services spanning the project life-cycle from feasibility studies, consulting services, provision of proprietary technologies, design, engineering, and after-sale technical support.

www.renaltenergy.com