Highlights of the Next Generation Biofuels RTD&D in

Future Biomass-based Transport Fuels IEA Bioenergy ExCo 67

10.5.2011 , Finland Kai Sipilä

Kai Sipilä VP, Strategic energy research 19/05/2011 2

Outline

§ National energy policy call for next generation sustainable biofuels, RTDD support to new technology implementation in the national action plan by 2020 – 20 %

§ Forest industry is a major bioenergy producer today, woody bioenergy is a dominant source of bioenergy in (in Finland > 70 %)

§ Which could be the biofuels opportunities ? Biomass sustainability

§ Thermochemical and sugar platform RTD&D activities § Research and pilot activities, international networking § From scenarios into roadmaps for biofuels business integration by 2020

§ International key networks and alliances; IEA and EU SET-Plan; EIBI and EERA

§ Conclusions 19/05/2011 3

1 328 PJ 19/05/2011 4

ROUTES to 2nd GENERATION BIOFUELS

Wood, straw, energy crops Hydrolysis+ Ethanol waste fractions MSW, CIW fermentation ETBE

Anaerobic Methane digestion

Forest and mill residues Gasification / FT Biodiesel straw, crops, SRF, peat Synthesis alcohols

SNG and H2 Biocrude Oil Refinery Biocomponent in gasoline and Wood fuels Thermal processing diesel fuels straw, crops, form plantations

Oils and fats Hydrotreatment BIOFUELS - RTDD EXAMPLES

The Biofuel Chain is Integrated to Existing Industries

Farm Refinery products

Waste Producer

FCC Site

Etanolix™ HDO ( Oil in PYRO UPM production) Wood Bio oil Chemicals Boiler

Dehydration Terminal

Helsinki, 3 September 2009 3 6

Biorefinery BTL Demonstrations in Finland

§ Three consortiums are presently planning to establish second-generation BTL biorefineries in Finland. Stora Enso/Neste Oil, UPM and Metsäliitto/Vapo are basing their designs on the gasification of biomass and the Fischer-Tropsch synthesis. § The planned facilities would each have the capacity to produce 100,000 – 200,000 tonnes of biodiesel annually. § EU’s NER300 funding and through national subsidy mechanisms. § Additional national funding from national investment subsidies, some €100 million in the budgets for 2011 and 2012. Overall investment costs are in order of € 400 - 700 million ? 7 VTT TECHNICAL RESEARCH CENTRE OF FINLAND Biorefineries at and mills SYNTHESIS GAS FROM BIOMASS and at large CHP plants FROM R&D TO INDUSTRIAL SUCCESS - diesel production: 70 -150 000 tons/plant - by-product heat for process steam or district heating - high overall efficiency

First synfuel production plant Peat - 200-250 MW feed capacity ammonia - 105 000 tons/a diesel fuel plant - 3 % Finnish transport fuel /Finland - start-up in 2014-16

Biomass/waste New applications gasification for power Industrial demon- stration: 15 MW - fuel cells, 2nd gen. IGCC (, Corenso, - hydrogen or methane Värnamo, Kokemäki) - replacement of oil/gas - start-up in 2009 - renewable chemicals 1985 1995 2000 2005 2010 2015 2020 2025 2030

R & D on hot filtration Further R&D and - process optimisation Synthesis gas catalytic gas cleaning VTT-UCG - waste gasification R&D in Europe Optimised - hydrogen technologies and USA in 1980’s syngas R&D & PDU-scale development Source. Esa Kurkela 19/05/2011 8

Upgraded fuels for the transportation sector Synthesis-gas derivatives – from biomass residues Overall chain CO shift, MP Steam H S removal Oxygen 2 HP Steam CO2 removal Off-gas Final gas Biomass Gasification Initial gas Synthesis/ Drying cleaning and Main & reforming cleaning upgrading conditioning product

Heat Steam Steam

Typical pressures: 10 - 30 bar 30 bar 30 - 200 bar

Feedstock diversity: any carbon Product diversity: Fischer-Tropsch (FT)

bearing material hydrocarbons, CH3OH, DME, SNG, H2, gasoline hydrocarbons (methanol-to-gasoline; MTG),….

Low GHG emissions compared to reference fossil-fuel chains Relatively high investment costs

Source: P.McKeough, PulPaper2010 9

Efficiencies with Industrial-Heat Production Efficiency = 100 x [LHV-energy of main product + high-grade byproduct energy - {electricity / 0.4}] / [LHV-energy of as-received feedstock]

100

80 Primary 60 energy out Main product 40

20 (Electricity in) / 0.4 0 Overall Efficiency, % -20

-40 FT CH3OH SNG H2

Feedstock drying: from 50 % moisture to 30 % with secondary heat; from 30 % to 15 % with by-product steam

From: McKeough & Kurkela, NWBC, Stockholm 2008 19/05/2011 10

Upgraded fuels for the transportation sector

Bio-ethanol route – from lignocellulosics Development work focused on improving Development in demonstration phase yield: enzymatic hydrolysis, exploitation of C5 sugars

Biomass Ethanol Pretreatment Hydrolysis Fermentation Distillation

Solid Dissolved residues residues Focus on agricultural residues; woody biomass more challenging Preparation Fuels Energy of fuels production

Air Ash

Another bio-ethanol option is based on exploitation of hemicelluloses extracted prior to pulping. Challenge is to maintain pulp yield and pulp strength. Option to post consumer low quality recycle fiber and packaging waste. 19/05/2011 11

Urban Forestry – a New Approach to Bioenergy Production

Minimisation of purchased fossil fuels by increasing the use of recovered fuels is the aim of this new approach. How much biopower and biofuels can be produced from low grade recycled paper and board instead of incineration and landfilling?

Separated RCP grades Paper / re-use

CIW

Paper & board Fuel ethanol 1/3 Paper mill

1/3 Waste wood Bio-oil and bio gas Power plant 1/3 Plastics Power and heat

Wood for growing green power market Currently: solid fuels and gas

Source: Markku Karlsson New biofuel production technologies – Pilot & Demonstration Plants

§ Stora Enso & Neste Oil: F-T diesel • A demonstration plant (12 MW) at Stora Enso’s pulp mill in • The gasification and gas cleaning technology has been piloted at VTT (on a 0.5 MW scale)

§ UPM & Andritz Carbona: F-T diesel • Pilot tests in GTI facilities, USA

§ St1 has five EtOH plants is operation and is looking for new raw material options for REFuel E85 production NSE Biofuels § Biogas production and upgrading to grid in starting phase Copyright © Tekes 19/05/2011 13

Sustainability of Biomass Utilisation

§ Greenhouse gas impact analysis for various biomass utilisation options § Methodology development for assessment, verification and monitoring of GHG impacts § Critical assessment of GHG performance of technologies relevant for Finland § Aid for public administration in implementation of the EU RED directive § National consortium (VTT, SYKE, MTT, Metla, VATT) to update Finnish conditions § IEA Bioenergy Task 38 23.5.2010 14

Default values for greenhouse gas emissions per fuel energy content

140 CO2 emissions from fuel combustion 120 fuel processing, storage and distirubtion 100 raw material production fuel

80 lr = logging residues rcg = reed canary grass -eq./GJ 2 60 kg CO 40

20

0 SA CT1 CT2 CT3 CT6 CT1 CT2 CT3 CT6 DR4 DR5 DR4 INT1 INT2 INT1 diesel gasoline EtOH (barley) RME (turnip rape) F-T diesel (lg) F-T fossil fuels diesel (rcg)

Source: Soimakallio et al. 2007 BioRefine volume and funding

§ Total volume by 2012 (estimated) up to 200 M€ (~ ½ Tekes)

§ Currently 175 M€ (45 % Tekes) • ~ 80 % company projects (23 projects / 37 participants) • ~ 20 % research projects (27 projects / 16 participants) • part of the Tekes funding to company projects channeled to research institutes through sub-contracting

§ International co-operation with USA/ in 11 projects

Contacts: Tuula Savola, Tekes Tuula Mäkinen, VTT Copyright © Tekes 19/05/2011 16

Renewing Pulp and Paper Mills into Biorefineries

BioBio-- Chemicals,Chemicals, PulpPulp PaperPaper BioBio-oil,-oil, Integrated FTFT crude crude Virgin Biorefinery HeatHeat & & WasteWaste BioBio-- PowerPower waterwater CompositesComposites generationgeneration treatmenttreatment

BioEtOH DIPDIP PaperPaper WasteWaste BioEtOH Integrated BioGasBioGas Urban

Biorefinery HeatHeat & & WasteWaste WasteWaste Power water to BioBio-- Power water to Composites generationgeneration treatmenttreatment EnergyEnergy Composites

Now 2015 - 19/05/2011 17

Thank you for your attention. [email protected]