RENEW Renewable Fuels for Advanced Powertrains IP-502705 The Chemrec BLGMF Process ( to Motor Fuels) Status, Progress and Future Prospects

Ingvar Landälv, VP Technology, Chemrec AB

Project supported by under FP6

CHEMREC Black liquor Un ique ly S uit a ble f or G asifi cati on • Liquid – Easy to feed to a pressurized gasifier – Can be atomized to fine droplets – Rapid gasification rates • Highly reactive (high Na/K content) – Full carbon conversion at ~1000 deg C – No tar formation – Low formation • Available in large quantities – About 270 MW of black liquor is generated at an average sized pulp mill (~ 400 000 tons of pulp per year)

CHEMREC STATUS CHEMREC’S DEVELOPMENT PLANT DP -1

CHEMREC Development Plant in Piteå

2004 Ordering critical components June Financing completed Sept Start of mechanical erection Oct 2005 Mechanical completion May CiiiCommissioning May-StSept Start of operation Sept 30 Test runs & debugging Oct-Dec 2006 Test runs & debugging Jan-Mar Burner optimization Apr-May Longest run 13 days Sept 2007 Longest run 22 days Aug 2008 Start C onti nuous operati on with 5 shifts May

CHEMREC DP-1 Accumulated Operating Hours

Hours (By end August 2008: ~ 6500h) 4800:00:00 4602 hours April 16 4320:00:00 Aug 2007 3 weeks 3840:00:00 operation without stop 3360:00:00 2500 hours Aug 14 2880:00:00 30 bar, 2400:00:00 75% load

1920:00:00 Breakthrough! 27 bar Excellent carbon 1440: 00: 00 conversion and GL

960:00:00 27 bar, First Start 90% load Sept 30 2005 480:00:00

0:00:00

CHEMREC THE BioDME PROJECT WITHIN FP 7

CHEMREC Overall Scope and Objective

Demonstration of an environmentally optimised future bio-fuel for road transport covering the full chain from production of fuel from biomass to the utilisation in vehicles

Starting date: 1 September 2008 Total budget: 28.4 M€ Duration: 48 months EU funding: 8.2 M€ Coordinator: AB Volvo

CHEMREC 7 BioDME Consortium

CHEMREC Overall Scope

Fuel 3G vehicle Vehicle Vehicle Vehicle development injection production development field test production

Fuel DME properties Distribution & filling DME production generation and cleaning Black liquor Industrial use Biomass

CHEMREC BioDME Project Time Schedule

CHEMREC Overall Work Scope of BioDME

WP Responsible Work Page (WP) Topics partner Basic engineering of process 1 Chemrec plant Development and EPC of new 2 Chemrec process plants 3 Produ ction of DME Chemrec 4 Fuel distribution Preem 5 Fuel and lube oil specification Total 6 Fuel injection equipment Delfi 7 Vehicle procurement Volvo 8 Vehicle field test Volvo 9 Industrial use of DME Chemrec 10 Eval uati on and Di ssemi nati on All 11 Project management Volvo Experiments and sampling in 12 ETC BioDME plant CHEMREC BioDME Pilot downstream Chemrec’s DP-1 plant

DP-1 CO /H S (to mill) A 2 2 B

Gas conditioning and Gas purification

Final Sulphur Removal & C Guard Bed D

CO2

DME CW Process Raw DME DME DME Storage BFW Development Unit LP-st ~5 ton DME / day

CHEMREC9/19/2008 Raw Syngas Quality

• 50-70 ppm benzene • < 5ppm naphthalene • Zero or close to zero higher tars • Very little fouling in heat exchangers • Ptilt”Particulates ”non-dtdetect tbl”able” Gas Conditioning and Cleaning in th e Bi oDME P roj ect

Point Variable To be accomplished Comment

H2/CO adjustment ~2% CO B Gas composition 2 Main cleaning <30< 30 ppm sulphur components

C Gas pressure > 100 bar

D Gas composition < 0.1 ppm sulphur Final polish

CHEMREC Overall Work Schedule for the BioDME Pilot

Work Descrition Time Package

Basic Engineering WP1 Cost estimate Sept. 2008 – Feb. 2009 Permitting

Engineering Procurement WP2 March 2009 – Feb. 2010 Construction Commissioning

WP3 Operation March 2010 – Aug. 2012

CHEMREC Illustration of the BioDME pilot

CHEMREC THE BLGMF CONCEPT IN AN INTERNATIONAL COMPARISON

CHEMREC Well to Wheel GHG versus total energy use

Source: European Technology Platform, Jan 2008 CHEMREC Biofuels Production Cost as function of Biomass Pri ce Source: Renew, FP 6 60

50 Chemrec ]

JJ CHOREN

40 FZK TU Wien osts [€/G cc 30 Abengoa CFB Abengoa EF

oduction CUTEC

rr 20 BtL p BtL 10 ~ 0.5 €/ l diesel eqv. 0 0123456789 Total biomass provision costs at BtL plant [€/GJ] CHEMREC Energy Efficiency for different Conversion Routes 100 %

FT-Diesel DME Ethanol 80 % ncy

ee 60 %

gy effici Co-fuel: FT-Napp,htha, rr 40 % or Propanol Ene Power 20 % Dis tr ic t h ea t

0 % FZK goa-EF U Wien hemrec oa-CFB CUTEC HOREN nn TT gg CC CC Source: Renew, FP 6 Abe

CHEMREC Aben The Princeton Study Dec. 2006

CHEMREC Effective Capital Investment Intensity $/(bbl per day) vs bbl per day diesel eqiv.

Source: Princeton University CHEMREC MARKET ILLUSTRATION

CHEMREC Location of US Pulp Mills.

Potential number of large plants: North America 100 & Europe 50

CHEMREC Impact of an average sized pulp mill converted to a PlPulp W ood Pulp 400 000 t pulp / y

Black liq. energy

Renewable Fuels

Power & ste Power 115 000 t of Black Liq. Syngas Biomass Syngas FUELS

a Gasific. to fuels Diesel/gasoline m Equivalents *)

Renewable waste streams Enough for Biomass Corresponding to 350 000 t dry biomass / y 3000 – 4500 Heavyyy Duty *) As DME or Methanol Vehicles CHEMREC NEXT STEP

DEMONSTRATIONS

CHEMREC Location of the NewPage Escana ba Mill

Escanaba Mill

CHEMREC NewPage - Escanaba Mill LtifUSDttiLocation for US Demonstration

• Most cost-effective and productive mill in NewPage system • High quality Kraft and RMP mill” • Significant operating leverage (over 760,000 tons/year) • Supports a broad range of grade mix (freesheet and groundwood) • 1,140 employees • $74 million annual payroll • $20 plus million annual capital outlay • $5.2 million state & local taxes

CHEMREC BLGMF Plant Block Flow Diagram

Fibre line 1 Black liquor

Wood chips Low sulphidity Offsites and Cold alkali green liquor BL Storage tank imppgregnation utilities GL Storage tank

Syngas Warm BL treatment BL Feeding & Preparation Air Air S eparati on Hot BL Fibre line 2 treatment DME & MeOH Purge gas synthesis O2 N2 BL Gasification Unit

Cooking O2 O2 O2 supppply MeOH absorben and N2 system DME & MeOH Fusel oil t Distillation Weak white liquor Raw gas cooling Bleaching LP steam and hot water & washing

Alt 1&2: White liquor N 2 Product Product Screening & storage MeOH storage DME washing Sulphur Gas Cleaning recovery unit unit MeOH DME Final Product Final Product Drying Alt 1: PS liquor Claus Alt 2 : Hig h S whit e li quor off- gas CO-Shift Alt 2: Relatively high S white liquor conversion

Pulp CO2 to tall oil production or pulp wash Gas Cleaning unit CHEMREC Smurfit Kappa, Piteå. Site for BioDME Pilot. Tentative site for Swedish Demo.

Tentative site for Commercial Demo

Existing DP-1

Planned New DME Pilot H&P Boiler

CHEMREC Smurfit Kappa, Piteå. Site for BioDME Pilot. Tentative site for Swedish Demo.

STATUS:

• Prefisibility study completed April 08

• Partners have agreed to continue work without delay THANK YOU! CHEMREC