The UK’s National Centre for Biorenewable Energy, Fuels and Materials

NNFCC

Biorefining and Bio-based

Products

Dr Adrian Higson

February 2011

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Today’s Presentation

About the NNFCC

Background

Biorefineries

Market Activity

Market Development

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

The UK’s National Centre for Biorenewable

Energy, Fuels and Materials

An Independent ‘not for profit’ company

Mission

The NNFCC is committed to the sustainable development of markets for

biorenewable products. We promote the benefits of biorenewable

energy, liquid fuels and materials for enhancement of the bioeconomy,

environment and society.

Company Activity

Advisor to UK Government

Commercial Consultancy

Member Information Service

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

NNFCC Operating Space

Industry

AcademiaGovernment

Renewable Raw Materials

Technology Evaluation

Supply Chain Analysis

Market Evaluation

Sustainability Assessment

Policy Translation

Engagement

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

The NNFCC shares the

vision of a low carbon economy

Improve efficiency

Fossil fuel substitution

Replacement of oil based materials

End of wasteGH

G e

mis

sio

ns

Source: Adapted from ‘GHG Emission reductions with Industrial Biotechnology’: Assessing the Opportunities, WWF & Novozymes

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

EU Renewable Energy Directive

European Governments focussed on Bioenergy

Mandatory EU target of 20% renewable energy in overall energy

consumption by 2020

0

10

20

30

40

Electricity Heat Transport

2020

2006

2008/947%

33%

20%

UK Target – 15%

Electricity Heat Transport

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Biorenewable Chemicals and Polymers

Market size ~ 50 million tones

1%7%

1%20%

54%

5%

7%4%

1%

17%

Chemical Derivatives Naval Stores Natural Products

Oleochemicals Biopolymers Amino Acids

Alcohols Aliphatic acids Other

Fermentation Products

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Images courtesy of DuPont, Novamont, Clarifoil, Arkema & Natureworks

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Policy Support

Technology Drive

Market Demand

Feedstock Pressure

Interest in bio-based chemicals - Why now?

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Relative feedstock pricing

0

50

100

150

200

250

300

Dec

-00

Jun

-01

Dec

-01

Jun

-02

Dec

-02

Jun

-03

Dec

-03

Jun

-04

Dec

-04

Jun

-05

Dec

-05

Jun

-06

Dec

-06

Jun

-07

Dec

-07

Jun

-08

Dec

-08

Jun

-09

Dec

-09

Jun

-10

Dec

-10

Agricultural Raw Materials

Food

Crude Oil

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

0

5

10

15

20

25

30

35

Jan

-81

Au

g-8

2

Mar

-84

Oct

-85

May

-…

No

v-8

8

Jun

-90

Jan

-92

Au

g-9

3

Mar

-95

Oct

-96

May

-…

No

v-9

9

Jun

-01

Jan

-03

Au

g-0

4

Mar

-06

Oct

-07

May

-…

US

cen

ts/p

ou

nd

Sugar Price 1981-2011

0

50

100

150

200

250

300

350

Jan

-81

Au

g-8

2

Mar

-84

Oct

-85

May

-87

No

v-8

8

Jun

-90

Jan

-92

Au

g-9

3

Mar

-95

Oct

-96

May

-98

No

v-9

9

Jun

-01

Jan

-03

Au

g-0

4

Mar

-06

Oct

-07

May

-09

$/t

on

ne

Maize Price 1981-2011

30 year average 10US cents/pound

10 year average 12US cents/pound

30 year average $120/tonne

10 year average $137/tonne

http://www.indexmundi.com/commodities/

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

0

20

40

60

80

100

120

140

Jan

-81

May

-82

Sep

-83

Jan

-85

May

-86

Sep

-87

Jan

-89

May

-90

Sep

-91

Jan

-93

May

-94

Sep

-95

Jan

-97

May

-98

Sep

-99

Jan

-01

May

-02

Sep

-03

Jan

-05

May

-06

Sep

-07

Jan

-09

May

-10

$/b

bl

Crude Oil Price 1981-2011

30 year average $31/bbl

10 year average $55/bbl

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Gudbrand Rødsrud, Director Business Development, Borregaard

Innovasjon Norge workshop, Tromsø juni 2010:

”Profitability in biorefining is difficult to achieve without an

integrated approach, where bulk products such as biofuel are

produced side-by-side with high-end chemicals.”

Biorefineries hold the key to sustainable bio-

based product economics

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Grain Straw

Biogas

PlatformMechanical/

Physical process

Chemical

process

Biochemical

processes

Thermochemical

process

Upgrading

Steam

reforming

Pressing/

desruption

Estherification

Link among biorefinery pathways

Pretreatment

Combustion

Fiber

separation

Fractionation and/

or pressing

Chemical

reaction

Methanisation

Fiber

separation

Oil

C6 sugars

Water gas

shift

Straw

H2

Hydrogenation /

Upgrading

Extraction

Fermentation

Water

electrolysis

Gasification

Separation

Syngas

Separation

Hydrolysis

Pyrolysis, HTU

Organic residues

and othersGrasses

Sugar

crops

Starch

crops

Lignocellulosic

crops

Lignocellulosic

residuesOil crops

Oil based

residues

Biomethane

BiodieselElectricity

and heatFertilizer Glycerine

Chemicals &

polymers

Feedstock

Material

products

Legend

Energy products

Synthetic biofuels

(FT, DME…)

Anaerobic

digestion

Organic

solution

Food

Bioethanol

Organic acids

& extracts

Lignin

Upgrading

Pyrolytic

liquid

Algae

Biomaterials

C5 sugars

Bio-H2

Chemical

reaction

Animal

feed

Chemical

reaction

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Corn

Corn oil

Sugar

Ethanol

Lactic acid

derivatives

Food Lactic Acid

Natureworks PLA

Lactic acid

ErythritolCargill Biorefinery

Blair, Nabraska

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Les Sohette’s Biorefinery

Bazancourt–Pomacle,

France

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Les Sohette’s Biorefinery Development

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

A Vision of biorefining - Potential for fractionation

Ligno-cellulosic biomass

Cellulose

Hemi-cellulose

LigninProtein

Extractives

The separation of 5

refinery streams

However unlike crude oil

these streams are to an

extent chemically &

physically linked

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Biorefinery Focus

Material focussed

High value product

Expensive processing

Fractionation potential high

Energy focussed

Low value product

Low cost processing

Pre-treatment

Minimal fractionation

Process costs

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Process development must be holistic

Processing 2

Processing 1

Biomass

Biomass

• Hardwood

• Softwood

• Herbaceous

Processing 1

• Acid

• Alkali

• Thermal

• Solvent

Processing 2

• Biological

• Chemical

• Physical

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Markets

Products

ProcessBiomass

Fractionation

Cellulose

Fuel

Hemicellulose

Fuel

Lignin

EnergyMarkets

Products

ProcessBiomass

Fractionation

Cellulose

Chemicals

Hemicellulose

Fuel

Lignin

EnergyMarkets

Products

ProcessBiomass

Fractionation

Cellulose

Chemicals

Hemicellulose

Chemicals

Lignin

EnergyMarkets

Products

ProcessBiomass

Fractionation

Cellulose

Chemicals

Hemicellulose

Chemicals

Lignin

Chemicals

Biorefinery Evolution

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Lignin

Syngas

Products

Hydrocarbons Phenols Oxidised

Products

Macromolecules

Methanol

DME

Ethanol

Mixed Alcohols

Fischer Tropsch

Liquids

C1-C7 Gasses

Benzene

Toluene

Xylene

Cyclohexane

Styrenes

Biphenyls

Phenol

Substituted

Phenols

Catchols

Cresols

Resorcinols

Eugenol

Syringols

Coniferols

Guaiacols

Vanilin

Vanilic Acid

DMSO

Aromatic

Acids

Aliphatic Acids

Syringaldyde

Aldehydes

Quinones

Cyclohexanol

Β-keto Adipate

Carbon Fibre

Fillers

Polymer Extenders

Substituted Lignins

Thermoset Resins

Composites

Adhesives

Binders

Preservatives

Pharmaceuticals

Polyols

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

DOE’s Top 12 Bio-derived building blocks (2004)

OH

O

O

OH

O

OH

O

OHOH OH

O

OH

O

O

OH

NH2

OHOH

O OH

OH

OH

OOH

OH OH

O O

NH2

OHOH

O

CH2

O

OH OH

OH

OHCH

3

O

O

OHOH

OH

OHOH

OH

OH OH

OH

OHOH

O O

OH

Succinic acid 2,5-Furandicarboxylic acid 3-Hydroxypropionic acid

Aspartic acid Glucaric acid Glutamic acid

Itaconic acid

Glycerol

Levulinic acid

Sorbitol Xylitol

3-Hydroxybutyrolactone

O

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Epichlorohydrin from glycerol

• Solvay Epicerol® process

• Demonstration - Tavaux,

France

• Commercial

• Plant location - Map Ta Phut

• Capacity 100,000 tonnes

• Glycerine demand – 120,000

tonnes

• Start Up - Q1 2012

Cl

Cl OH

Cl

Cl Cl

OH

O

Cl

OH

OH

OH

Cl2HCl+

+HCl

catalyst

Cl2, H2O

NaOH

NaCl+

+ HCl

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Propylene glycol from glycerol

• ADM – Propylene glycol

• Plant location – Decatur

US

• Capacity 100,000 tons

OH

OH

OH

OH

OH

H2, cat.

DOW Chemical Company - Status unknown

Huntsman Corporation – Status unknown

Cargil/Ashland – Capacity 65,000 tonnes, location Europe

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Lactic acid

• Food and cosmetic ingredient

• Polylactic acid – First large scale bio-based synthetic polymer

• European demand predicted to rise from 25,000 per year to 650,000 tonnes

by 2025

• Global lactic acid production capacity > 500,000 tonnes

• End Products from compostable packaging to textile fibres

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Polylactic Acid

• Improving performance, new

additive packages

• Improving ecoprofile

• Advances in production allowing

stereocontrol

• Increasing number of players

0

0.5

1

1.5

2

2.5

Ingeo since 2005

Ingeo 2009: currently

implemented technology

Ingeo target

KgC

O2

eq

/kg

Inge

o

0

10

20

30

40

50

60

Ingeo since 2005

Ingeo 2009: currently

implemented technology

Ingeo target

MJ

no

nre

ne

wab

le e

ne

rgy/

kg

Inge

o

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Ethylene Value Chain

Ethylene Polyethylenes

Styrene Monomer

Ethylene Oxide/Glycol

EDC

Other

Polymers/Rubbers

Polyester

PVC

Alpha Olefins

PVA

Ethanol

60%

7%

14%

12%

7%

Source: Nexant ChemSystems

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Bio-ethylene market activity

• Braskem (Brazil)

• ethylene plant commissioned Q4 2010

• Capacity 200,000 tonnes/year

– Further plants under study

• Dow/Crystalsev (Brazil)

• Planned Polyolefin production

• Capacity 350,000 tonnes/year

• Solvay (Brazil)

• Planned PVC and PVA

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Value Chain Activity

TETRA PAK PLANS BIOPLASTIC TRIALS

THE COCA-COLA COMPANY

INTRODUCES INNOVATIVE

BOTTLE MADE FROM

RENEWABLE, RECYCLABLE,

PLANT-BASED PLASTIC

BRASKEM AND PROCTER & GAMBLE:

WORLD PARTNERS FOR THE GREEN

POLYETHYLENE SUPPLY

THE CAR PRODUCER TOYOTA HAS ANNOUNCED

ITS INTENTION TO USE BIO-BASED PET FOR

VEHICLE LINER MATERIAL AND OTHER INTERIOR

SURFACES

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

GHG savings per unit of land

Land unit Output GHG savings

Bioethanol fromwheat

1 ha 66801 MJ3181 litres

2,472 kg CO2 eq.

LLDPE from wheat

1 ha 1.4 tonnes 3,270 kg CO2 eq.

Using wheat grain for polyethylene delivers an additional

32% GHG saving over fuel ethanol

Land unit Output GHG savings

LLDPE from sugar beet

1 ha 2.7 tonnes 6,402 kg CO2 eq.

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

PET - the other half?

• Butamax and Gevo have targeted isobutanol as fuel and chemical precursor

• Avantium are working on new furan platforms

• Anellotech developing fast pyrolysis process to produce BTX from biomass

OH

O

O

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Succinic Acid 1,4-ButanediolPolybutylene

Terephthalate

Copolyester Ethers

Thermoplastic Polyurethanes

Spandex Fibres

Tetrahydrofuran

Solvent

Polytetramethylene Ether Glycol

g-Butyrolactone

Fine & Speciality Chemicals

N-Methyl -2-Pyrrolidone

Fine & Speciality Chemicals

2-Pyrrolidone

Fine & Speciality Chemicals

N-Vinyl-2-Pyrrolidone

Polyvinyl Pyrrolidone

Deicers/Coolent

Plasticisers

Fuel Additives

Succinic acid

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Commercialisation of Succinic acid

May 08 BioAmber

JV

Mar 09 DSM &

Roquettedemo plant

Jul 09 Myriant

pilot runs

Sep 09 BASF &

CSM

Dec 09 BioAmbersign supply agreement

Jan 10 BioAmber

commission demo plant

June 10 Reverdia JV

Jul 10 BioAmber &

DuPont

Several commercial plants under study

License and supply agreements announced

Other technology providers in the race

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Development highlights, 2008-2010

• Global bioethanol production expansion (>61 million tonnes)

• Cellulosic ethanol production – into demonstration phase

• PLA capacity doubled and 2nd generation PLA developed

• Large scale biomethanol production realised

• A range of bio-based polyamides launched

• Biosuccinic acid production - into demonstration phase

• Propylene glycol - commercialised

• Polyhydroxyalkanoates - commercialised

• Biopolyethylene – commercialised

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Bio-based chemicals – growth potential

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

2010 2015 2020 2025

Pla

nt

Cap

acit

y (t

on

nes

)

Chemicals from Renewable Materials

Production Capacity

Excludes traditional chemicalse.g. amino acids, oleochemicals, citric acid etc

Acetic AcidAcrylic AcidAdipic Acid

ButanolCellulose

EpichlorohydrinEthyleneIsoprene

Lactic AcidPolyhydroxyalkanoates

Propanediol (1,3)Propylene

Propylene GlycolStarch (in bioplastic)

Succinic Acid

Source: NNFCC

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Promise of things to come

Commercialisation

Polyethylene

Epichlorohydrin

Propylene glycol

PVC

Butanol

Isobutanol

Succinic acid

Isoprene

1,4-butanediol

Itaconic acid

Polypropylene

Adipic acid

Acrylic acid

Glucaric acid

Expansion

Ethanol

Polylactic acid

Starch Plastics

Cellulose Films

Polyamides

Polyurethanes

Furans

Amino acids

1,3-Propanediol

PHA

Butanol

Ethylene glycol

Ethyl acetate

Isosorbide

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

European Lead Market Initiative

• Standards, labels and certification

• Legislation promoting market

development

• Product specific legislation

• Access to biomass

• Encourage Green Public Procurement

• Financing and funding of research

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Cerenol®polytrimethylenediol

Susterra™1,3-propanediol

Corn

Sorona®poly(trimethyleneterephthalate)

Sorona® EPthermoplastic polymers

Zemea™1,3-propanediol Pearlthane®

ECObio-TPU

100% bio-based content

28% bio-based content

30-37% renewable by weight

60% renewable content

End Product

Merquinsa

DuPont

100% bio-based content

100% bio-based content

X% bio-based

ASTM Standard D 6852: Standard Guide for Determination of Biobased

Content, Resources Consumption, and Environmental Profile of Materials and

Products

What is bio-based?

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Cultivation

Base Material

Solid/Liquid/GaseousBiofuel

CombustionFunctionalmaterial

End of life

Recycle

Raw material

Base material

CO2

Cultivation

Food and

Material Cycles

Energy Cycle

End of life/Raw material

Carbon recycling and policy development

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Linking Bio-based Materials to

Renewable Energy Production

Bringing together experts in the field of measuring bio-based content to

explain the options for measuring and certifying renewable content in

materials and its importance in renewable energy generation

Presentations from regulators, certifiers and companies working in the area

of wastes, plastics, fuels and energy

Tuesday 1st March – Geological Society, London

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Summary

Bio-based product opportunities are being driven by:Technology development

Feedstock pricing

Market pull

Considerable industry activity, however some issues:Access to feedstock

Access to finance

Biorefinery development is key to the long term success of bio-

based products

THANK YOU FOR LISTENING

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Website: www.nnfcc.co.uk

Email: I.1234567891@nnfcc.co.uk

www.nnfcc.co.uk

NNFCC

The UK’s National Centre for Biorenewable Energy, Fuels and Materials

Website: www.nnfcc.co.uk

Email: a.higson@nnfcc.co.uk

Any Questions?