VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD

Future concepts

Jussi Manninen, VTT IEA & IETS workshop on 'The role of industrial in a low carbon economy', Gothenburg, 16 May 2017 What should be used for?

1. Food and feed 2. Products that benefit from the chemical or physical structure of biomass, like fiber products 3. Products that replace fossil based products, like biobased chemicals 4. Energy

Product markets and profitable production are key requisites for a sustainable bioeconomy! 26/05/17 2 Value added and impact from bioeconomy

Multiple use by a market driven approach provides most added value and the greatest impact

New bioproducts and services High value High value

Innovative traditional products Cascade use Multiple use

Maximum: Traditional wood products €/unit * units = total value Traditional fiber products Value/unit

New bioproducts Low value /Bio oil Extensive use Heat and power

26/05/17 Total raw material/market potential 3

Circular economy is a key element in future bioeconomy We will soon publish integrated bioeconomy and low-carbon economy scenarios for Finland

Baseline Current structure of the economy. 2030 energy and climate targets included. Low carbon scenario (2C-CNS) Focus on optimal reduction of GHG emissions. No major changes in industrial structure. Optimistic implementation of new energy technology Bioeconomy scenario (BioEco) New biobased products from forests, fields, side streams and wastes included.

26/05/17 5 Versatile use of wood for new products → new industrial ecosystems

CNS BioEco § Pulp production 100% flourishes 90% SNG § Dissolved pulp products 80% Energy use Liquid fuels 70% Solid fuel § and hemicellulose 60% use

for products 50% Recovery boiler 40% New fibre § From sawn goods to products 30% Paper pulps wood products 20% Wood 10% products

§ Integrated 2. generation 2050, % in consumption Wood 0% biorefineries

26/05/17 6 Doubling the value-add of forest bioeconomy in Finland with new innovative products 15 Wood and paper products

10 Textiles and hygiene products

5 Plastic replacement

Glues, chemicals Reinforcers 2030 2050

26/05/17 7 Bioenergy remains as the most important source We need to invest in all new technologies to reach the low-carbon targets

Renewable primary energy GHG emissions per sector

2010 2020 2030 2050 2010 2020 2030 2050 900 80 Ambient Other 800 70 GHGs Waste 700 Bioliquid 60 Other CO2 600 imports Agrobio 50 500 Pulping Transport 40 CO2 400 liquor Wood 30 300 Industrial Solar 20 sectors 200 CO2 Wind 10 Energy 100 Greenhouse emissions, gas Mt Renewableprimary energy, PJ Hydro sector CO2 0 0 CNS CNS CNS 2010 - - - CNS CNS CNS - - - C BioEco C BioEco C BioEco C BioEco C BioEco C BioEco ------Baseline Baseline Baseline Baseline Baseline Baseline 2° 2° 2° C C C 2° 2° 2° C C C 2° 2° 2° 2° 2° 2°

26/05/17 8 Pulp mills are in the heart of the forest bioeconomy – new products will increase in significance

26/05/17 9 Bioproduct mills produce material and energy products

Pulp for paper Lignocellulosic Lignocellulosic bio-refinery and board feedstock

Cellulose fraction for bio- ethanol

Other bio- based products

Lignin is the major by-product of chemical Isolation pulping and emerging biorefineries § ~55 Mt/a kraft lignin* produced by Lignin side- Technical lignin chemical pulping, of which ~150 kt/a stream recovered currently** § ~1.8Mt/a lignosulphonates recovered** § Substantial amount of lignin estimated to Most of the lignin is burned for energy, and originate from the 2nd generation only small fraction is utilised in high-value bioethanol production products

* Gellerstedt et al (2013) 26/05/17 ** Calculated based on several public sources 10 Residues and side-streams into fuels and chemicals

BIOTECHNOLOGY

Pretreatment Fermentation Product Liquid fuels and hydrolysis recovery

GASIFICATION Synthesis to liquid fuels

Gas cleaning to syngas Methanation SNG

PSA Hydrogen

FAST PYROLYSIS Co-refining with mineral oils Thermal or Product catalytic fast upgrading Liquid fuels pyrolysis

26/05/17 11 Further in the future…

§ Efficient and selective extraction methods, like ionic liquids and DES for fractionation of lignocellulose § Synthetic biology for production of efficient strains for production of chemicals and materials § New, high-yielding biomass sources, such as , and CO2 as a source of carbon with renewable electricity providing the hydrogen

26/05/17 12 26/05/17 13 Conclusions

§ Future biorefineries need to satisfy several criteria § Climate change mitigation § Jobs and growth § Profitability § Based on our scenarios for Finland, versatile production of added-value bio-based products and bioenergy products can help achieving both climate and GDP-goals § We are already seeing that lignocellulosic biorefineries, like pulp mills, are becoming the backbone of bioeconomy ecosystem § Advanced biofuels provide market for investments that can be later utilised for production of biochemicals § For future, we need more selective extraction and production technologies, as well as widen our raw material selection. Integration to renewable electricity system can benefit both biorefineries and electricity grid.

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