Commercializing Innovation

Canada & Pyrolysis

This report evaluates the role of Canada in emerging

technologies related to torrefaction (bio-coal), slow pyrolysis

(biocarbon/biochar), fast pyrolysis (bio-oil) and biomass

gasification (wood gas/syngas)

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FOR PUBLIC CIRCULATION

This report is for information purposes only, and its contents have

been prepared in good faith, derived from management's

knowledge and experience in the industry, as well as a variety of

third-party sources, such as independent industry publications,

government publications, company websites, and other publicly

available information, but no representation or warranty, expressed

or implied, is made by Sixth Element Sustainable Management or

its employees as to the accuracy, completeness, quality,

usefulness, or adequacy of the information and opinions in the

report, and Sixth Element Sustainable Management cannot take

any responsibility for the consequences of errors or omissions.

This material has been prepared for general circulation without

regard to any specific project and circumstances of persons who

receive it, and the information and opinions expressed in this

report may not be applicable to you. All rights reserved.

Prepared by: Gerald Kutney

© 2015 Gerald Kutney

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Bio of the Author:

Dr. Kutney, Ph.D. in chemistry, has participated in all aspects of innovation and technology commercialization -

especially related to torrefaction, pyrolysis, biochar, and biomass gasification - from the research laboratory to

patents to marketing to the executive suite. With two decades of executive experience in technology

commercialization with global corporations and entrepreneurial enterprises, he brings the innovation of research and

technology development, the financial discipline of big business, and the spirit of entrepreneurship to start-ups and

early-stage companies. He has extensive C-level experience, including strategic, operational, business development,

and administration leadership, business and financial planning and analysis, financing strategies, techno-commercial

evaluations and feasibility studies.

Bioenergy and Biofuels Lead consultant in forestry bioenergy for the world’s largest renewable fuels consulting group (Lee

Enterprises)

Executive of a bioenergy (bark boiler and CHP/IPP facilities), biofuel (the largest cellulosic ethanol

business in North America), and bioproducts business with operations in Canada and France

Founder of the LinkedIn group, Bioenergy Projects & Ventures

Founder and editor of The Best Bioenergy Stories of the Week

Mentored and edited the business plans for a biomass pellet venture in the U.S.

Mentored and edited the business/financial plans for a First Nation’s forestry venture in Canada

Executive of a pyrolysis venture with pilot facilities in Canada and South Africa

Audited the commercial preparedness for an IPO of a pyrolysis venture in Canada

Author of over a dozen papers on pyrolysis presented at major bioenergy conferences (including the IEA

Bioenergy, International Bioenergy Conference, and CanBio)

Author of technical papers: Biomass Pyrolysis Spectrum and The State of Pyrolysis in Canada

Director and founding member of the Canadian Biochar Initiative

Director of Biochar Ontario

Author of a study for the National Research Council Canada on the global pyrolysis industry

Author of a study on a categorization of the commercial status of over seven hundred pyrolysis firms

Member of the expert panel on international standards for solid biofuels (wood/biomass pellets, torrefied

pellets and biochar briquettes) for ISO (TC 238)

Member of the expert panel on Canadian standards for solid biofuels (wood/biomass pellets, torrefied

pellets and biochar briquettes) for CSA

Climate Change and Policy Development Author of the peer-reviewed book Carbon Politics and the Failure of the Kyoto Protocol, which examines

the policy challenges for addressing climate change

Adjunct Professor & Part-time Instructor on fourth-year/graduate course on Climate Change, University of

Northern British Columbia – Environmental Science

Entrepreneurship and New Ventures Managing Director of own consulting venture

President of an emerging-technology venture

Chief Operating Officer with a new-technology venture

Approved consultant with the Business Development Bank of Canada (BDC, Entrepreneurs first)

MBA mentor & Start-up Garage mentor at the University of Ottawa

Entrepreneur mentor with Invest Ottawa

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Ashes denote that fire was;

Respect the grayish pile

For the departed creature’s sake

That hovered there awhile.

Fire exists the first in light,

And then consolidates,-

Only the chemist can disclose

Into what carbonates.

Emily Dickinson

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The State of Pyrolysis in Canada

Pyrolysis is a generic term that includes any process where biomass (in the context of this report) is heated in a low-

oxygen atmosphere, and includes the following processes:

Torrefaction (product = torrefied biomass or bio-coal)

Pyrolysis (also known as carbonization):

Slow Pyrolysis (product = biocarbon, charcoal or biochar)

Fast Pyrolysis (product = bio-oil or pyrolysis oil, plus some biochar)

Gasification (product = producer gas or syngas, plus some biochar).

A study was undertaken by Sixth Element Sustainable Management on the commercial status of the global pyrolysis

sector. Almost five hundred companies were identified (Table 1). A surprising outcome was the disproportionate

contribution of Canada to pyrolysis. Of the firms in this sector, 16% had their offices in Canada. While the EU

(38%) and US (32%) were larger, Canada far outpaced these, and other regions, on a per capita basis. BC,

especially the greater Vancouver region, followed by Ontario were where most of the head offices of these ventures

were located (Table 2).

Table 1. Number of Pyrolysis Ventures by Technology and Region: Global

European

Union

United

States Canada

Rest of

World Total

Torrefaction 48 45 18 8 119

Pyrolysis-slow 30 28 15 28 101

Pyrolysis-fast 33 15 14 7 69

Biomass Gasification 68 59 26 24 177

Total 179 147 73 67 466

38% 32% 16% 14%

Table 2. Number of Pyrolysis Ventures by Technology and Region: Canada

BC Prairies ON QC Maritimes Total

Torrefaction 7 2 3 2 5 19

Pyrolysis-slow 8 4 1 2 0 15

Pyrolysis-fast 3 2 5 2 1 13

Biomass Gasification 5 4 10 7 0 26

Total 23 12 19 13 6 73

32% 16% 26% 18% 8%

The numbers are misleading for among the “googol” of press releases, most are from “virtual” wannabe companies

and dreamy promoters. These “zombie” ventures become the walking dead companies that persist only through a

website. The vast number of empty announcements makes it difficult to separate “torrefact” from “torrefiction” (to

use popular jargon from the bio-coal sector). This menagerie of biofuel wizardry is filled with creative technical

marvels, but the developers are afflicted with “technical blindness” (from the euphoria of their invention), and they

refuse to see the economic reality. The graveyard of biofuel technologies is littered with good intentions and even

great technologies; the monument to their passing is only a dead website. Why do so many new technology

companies become zombie ventures? More projects fail because of management than the technology itself. The

two biggest mistakes are a lack of focus by management and an ill-defined market for the product and/or

technology.

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Torrefaction: most of the Canadian ventures were only grandiose project announcements that never came to be.

Two of the serious entries in torrefaction are Diacarbon of Burnaby, BC, and Airex or Laval, QC. Both companies

have recently received support from Sustainable Development and Technology Canada (SDTC)1 to construct

demonstration facilities. Of interest, Torbed Energy Systems, which is the torrefaction technology supplier to the

high-profile Topell Energy project in The Netherlands, has their largest pilot facility in Mississauga, ON. On a

global basis, the Dutch have led the development of torrefaction.

Slow Pyrolysis: is the traditional and largest solid biofuel market, which produces charcoal; global demand is over

fifty million tonnes. A new generation of technologies have been under development, which produce biocarbon as a

substitute for coal in coal-fired utilities, but interest has shifted to biochar, where the product is added to soils to

promote plant growth. The biochar market has been slow to develop, so some developers have adapted their

technology to torrefaction. SDTC supported the project of Alterna Biocarbon of Prince George, BC. On a global

basis, Australia is leading this sector.

Fast Pyrolysis: Temperatures of carbonization are used but the material is heated very quickly and then quenched to

protect the primary thermal decomposition products; this restricts the formation of biochar which is a by-product of

the process; the desired product is bio-oil (also known as pyrolysis oil). Canada has been the global leader in fast

pyrolysis technology and commercialization. Innovation in this country was, especially, led by two Ontario

universities in the late ‘70’s and early ‘80’s - the University of Western Ontario and the University of Waterloo.

This research led to the formation of two pioneering firms, Dynamotive (had been supported by SDTC; now

defunct) and Ensyn. Ensyn is the global leader in fast pyrolysis.

Gasification: although there are hundreds of biomass gasification units in place, they are relatively small, and

biomass gasification is only a trivial part of the overall gasification industry, which is dominated by coal. Reliability

has plagued most units, and it is difficult to identify industrial leaders in this sector. A number of biomass

gasification firms have been supported by SDTC: Aboriginal Cogeneration Corp of Winnipeg, MB, Biothermica

Technologies of Montreal, QC, Elementa of Niagara-on-the-Lake, ON, Enerkem of Montreal, QC, Nexterra of

Vancouver, BC, Plasco Energy Group of Ottawa, ON, Terragon Environmental Technologies of Montreal, QC. In

terms of commercial operations, the most developed are Enerkem, Nexterra and Plasco, and Alter NRG of Calgary,

AB, needs to be added to the list.

The State of Pyrolysis in Canada: Canada is among the leading countries in the development of pyrolysis

technologies, overall. Canada has a just claim to be among the best of gasification, and in fast pyrolysis, there is no

argument that Canada has no equal. A major factor to the success of Canada in this regard has been the support of

Sustainable Development and Technology Canada. The position of BC as being the most popular location of these

ventures can be partially attributed to the reinforcement of funding from SDTC by grants from the Innovative Clean

Energy (ICE) Fund in the past, and the BC Bioenergy Network.

1 The rigorous approval process of SDTC is used as an independent guide to the commercial preparedness of a developer.

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Sixth Element Sustainable Management is a "boutique" consulting firm specializing in commercializing

innovation, and evaluating the business preparedness and commercial potential of technology developers and their

projects. We provide executive management services for inventors, entrepreneurs, investors, and public sector

agencies in new technology, start-ups and early-stage ventures. Services are directly provided by the Managing

Director of Sixth Element Sustainable Management, Gerald Kutney, Ph.D. in chemistry.

Venture success depends more on management than the technology itself. Dr. Kutney has participated in all aspects

of innovation and technology commercialization, from the research laboratory to patents to marketing to the

executive suite. With two decades of executive experience in technology commercialization with global

corporations and entrepreneurial enterprises, he brings the innovation of research and technology development, the

financial discipline of big business, and the spirit of entrepreneurship to start-ups and early-stage companies.

Visit our website at www.6esm.com and contact us to discuss options and services: gkutney@6esm.com.