Advanced Biofuels – Potential for Cost Reduction

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Advanced Biofuels – Potential for Cost Reduction Advanced Biofuels – Potential for Cost Reduction IEA Bioenergy: Task 41: 2020:01 Advanced Biofuels – Potential for Cost Reduction Authors Adam Brown, Energy Insights Ltd, UK Lars Waldheim, Waldheim Consulting, Sweden Ingvar Landälv, Fuel & Energy Consulting, Sweden Jack Saddler, University of British Columbia, Canada, IEA Bioenergy Task 39 Mahmood Ebadian, University of British Columbia, Canada, IEA Bioenergy Task 39 James D. McMillan, National Renewable Energy Laboratory, USA, IEA Bioenergy Task 39 Antonio Bonomi, CNPEM, Brazil Bruno Klein, CNPEM, Brazil Acknowledgements. The work was carried out under Task 41 of the IEA Bioenergy Technology Cooperation Programme, and was made possible through funding provided by the European Commission, DG ENER, and through in kind contributions from Germany, Netherlands and Sweden. The Authors would like to thank Dr Kyriakos Maniatis, (European Commission, DG ENER) for providing help and guidance throughout the study. They also benefitted for advice and guidance from an Advisory Group made up of members of the IEA Bioenergy Executive Committee including Jim Spaeth (Chairman), Birger Kerckow, Kees Kwant, Åsa Forsum, Jonas Lindmark, Luc Pelkmans. They also received comments and help from a number of other experts including Franziska Műller -Langer (DBFZ Deutsches Biomasseforschungszentrum gemeinnützige GmbH, Germany), Patrick Lamers (NREL), Thomas Kolb and Nicolaus Dahmen (Karlsruhe Institute of Technology (KIT), Germany). The Authors would al like to thank Stamatis Kalligeros (Hellenic Naval Academy) for assistance with the final layout and editing. They would also like to thank industry players who provided information and opinions for the study. They are acknowledged in the text. Copyright © 2020 IEA Bioenergy. All rights Reserved Published by IEA Bioenergy The IEA Bioenergy TCP is organised under the auspices of the International Energy Agency (IEA) but is functionally and legally autonomous. Views, findings and publications of the IEA Bioenergy TCP do not necessarily represent the views or policies of the IEA Secretariat or its individual member countries. Contents CONTENTS .................................................................................................................... 3 Figures ............................................................................................................................................................... 7 Tables ................................................................................................................................................................ 7 EXECUTIVE SUMMARY ................................................................................................. 9 1. INTRODUCTION ................................................................................................ 12 1.1 Background ............................................................................................................................................. 12 1.2 The Sub-Group for Advanced Biofuels (SGAB) Cost Study ......................................................... 13 1.3 Project objectives .................................................................................................................................. 13 2. METHODOLOGY ................................................................................................ 14 2.1 Data Collection ....................................................................................................................................... 14 2.2 Scope ......................................................................................................................................................... 14 2.3 Data Analysis and Modelling .............................................................................................................. 15 2.4 Benchmarking Costs ............................................................................................................................. 16 3. INFORMATION ON CURRENT COSTS OF PRODUCTION ..................................... 16 3.1 HVO ............................................................................................................................................................ 17 3.2 Bio-methane via anaerobic digestion .............................................................................................. 18 3.3 Ethanol from lignocellulosic sugar via fermentation .................................................................. 19 Background .................................................................................................................................................................. 19 SGAB cost data ............................................................................................................................................................ 20 New Information ........................................................................................................................................................ 21 Corn fibre to cellulosic ethanol ............................................................................................................................. 21 3.4 Synthetic fuels via gasification........................................................................................................... 23 Background .................................................................................................................................................................. 23 SGAB - Cost data for thermal processes ............................................................................................................. 24 Production of alcohols and hydrocarbons from biomass and waste ................................................... 24 FT Products ............................................................................................................................................................. 25 New Information ................................................................................................................................................... 25 Project and data analysis .................................................................................................................................... 27 Review of production costs ............................................................................................................................... 27 3.5 Pyrolysis oil and upgrading ................................................................................................................ 30 Background .................................................................................................................................................................. 30 3.6 Summary - current cost estimates .................................................................................................... 32 4. COST REDUCTION POTENTIAL ........................................................................... 35 4.1 Medium term cost reductions ............................................................................................................ 35 Lignocellulosic ethanol ............................................................................................................................................ 35 Reducing feedstock costs ................................................................................................................................... 36 Reducing capital costs ......................................................................................................................................... 36 Reducing operating and maintenance costs ................................................................................................ 36 Overall medium-term cost reduction potential .......................................................................................... 36 Thermal routes to advanced biofuels ................................................................................................................. 39 Impact of feedstock cost and conversion efficiency....................................................................................... 40 Improving financing rates ...................................................................................................................................... 41 Summary of medium-term cost reduction potential ..................................................................................... 43 4.3 Potential for long term cost reduction ............................................................................................ 43 Impact of learning-based cost curves for large-scale deployment ........................................................... 43 4.4 Cost reduction - overall summary and conclusions ..................................................................... 46 5. FEEDSTOCK – COSTS AND AVAILABILITY ........................................................... 47 5.1 Costs and Prices ..................................................................................................................................... 47 Municipal Wastes....................................................................................................................................................... 47 Processing residues .................................................................................................................................................. 48 Collectable residues .................................................................................................................................................
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