Scenarios for Development of BioDME Supplies DME 4 Stockholm, September 7- 8, 2010 Ingvar Landälv, Chief Technology Officer, Chemrec AB CHEMREC Energy to Succeed Content • BioDME from Pulp Mills via Black Liquor Gasification • BioDME from Biomass through gasification • Supply and Demand Balance for a DME fuel system - Flexibility for BioDME producers - Guarantee DME availability in the fuel system - Flexibility for fossil DME producers • Conclusions CHEMREC 2 Energy to Succeed Content • BioDME from Pulp Mills via Black Liquor Gasification • BioDME from Biomass through gasification • Supply and Demand Balance for a DME fuel system - Flexibility for BioDME producers - Guarantee DME availability in the fuel system - Flexibility for fossil DME producers • Conclusions CHEMREC 3 Energy to Succeed The Route via Gasification and Syngas to Automotive Fuels Syntetic CO2 Diesel (FTD) Coal Methanol Heavy oils Natural Gas SyngasSyngas DME (DiMetylEter) (CO+H2)(CO+H2) Hydrogen Biomass GASIFICATION Chemicals Black liquor SNG CHEMREC 9/13/2010 4 Energy to Succeed Major Biomass Flow from the Forrest Today TODAY Forest Logs Pulp Wood Saw- mill RecoveryPulp Boiler Wood Mill Products Pulp Mill Pulp CHEMREC 9/13/2010 5 Energy to Succeed Major Biomass Flow from the Forrest With the BLG* Based Biorefinery Concept TOMORROW (1) Forest Logs Pulp Forest Wood Residual Saw- mill RecoveryPulpCombined Recovery Boiler Wood Milland Fuel Generation Products Pulp Mill Fuel Pulp * BLG: Black Liquor Gasification CHEMREC 9/13/2010 6 Energy to Succeed Chemrec Gasification Process DP-1 in Piteå, Sweden SULPHUR Black Liquor ABSORPTION C.W Atomizing medium BFW White/Green Liquor Oxygen GAS COOLER GASIFIER LP- BFW St. CLEAN Raw Syngas SYNGAS MP-Steam QUENCH FLARE GREEN LIQUOR Condensate Weak Wash CHEMREC Energy to Succeed 9/13/2010 7 The BioDME Block Flow Diagram H2S / CO2 to mill First singl-pe ass MeOH MeOH synthesis Synthesis 2 featuring > 95% yield Sulphur MeOH guard Synthesis 1 Amine wash MeOH (recycled) Gases DME MP steam DME synthesis CO shift Product Raw MeOH Carbon filter ~ 4 ton Evaporator DME/day DP-1 Water 9/13/2010 8 CHEMREC Energy to Succeed New BioDME Pilot - CAD Illustration DP-1 Flare plant Amine Wash WGS, MeOH/DME, Distillation Carbon filter CHEMREC 9 Energy to Succeed Current project status of Domsjö project & in collaboration • Domsjö mill sulphite thick liquor gasified successfully in DP-1 • 500 MMSEK (~ 50 MM€) investment grant approved by Swedish Energy Agency (conditioned EU’s DG Competition approval) • Feasibility report complete (May 2010) • Technology for Gas Purification and MeOH/DME Synthesis selected. • Front-end Engineering Design (FEED) scheduled for Q3/10-Q2/11 for final investment decision in Q3 2011. CHEMREC Energy to Succeed The Energy Combine of Örnsköldsvik Domsjö Mill ÙÖvik Energy ÙÖvik Community -TODAY - Biomass District Domsj Övik heat Örnsköldsvik ö Pulp Energy Community Fiber wood Steam Power Domsjö Fabriker Cellulose fiber Ligno sulfonate Ethanol Recovery boilers A sodium sulphite based mill CHEMREC 9/13/2010 11 Energy to Succeed The Energy Combine of Örnsköldsvik Domsjö Mill ÙÖvik Energy ÙÖvik Community - TOMORROW - Biomass District Domsj Övik heat Örnsköldsvik ö Pulp Energy Community Fiber wood Steam Power The sodium sulphite based mill Cellulose fiber Ligno sulfonate Ethanol 300 t/d DME or 450 t/d Methanol CHEMREC 9/13/2010 12 Energy to Succeed Domsjö Fuels Plant Build Up – Parallel Trains 1 x 100% Oxygen 3 x 50% 1 x 100% Air separation Steam CO2 Power Gasi- fication Thick Liquor and Rawgas Gas cooling Weak wash Quench Gas Conditioning H2S And Purification LS Green liq. Synthesis gas Synthesis- and Distillation DME/Methanol 1 x 100% CHEMREC 9/13/2010 13 Energy to Succeed Preparations for industrial scale plants Chemrec Gasifier Unit Status: • Gasifier, quench and gas cooler scale-up work complete • Gasifier black liquor nozzle scale- up work ongoing • Process Design Package work ongoing together with key suppliers CHEMREC 9/13/2010 14 Energy to Succeed Preparations for industrial scale plants Steam Drum Reactor Y INAR IM Quench EL PR Final Coolers CCC Train #1 Train #2 Train #3 CHEMREC Energy to Succeed Location for Potential Pulp Mill Biorefineries in the US More than 100 suitable pulp mills In North America with 200-400 MW of Black Liquor per plant Some 250 suitable pulp mills world wide CHEMREC 16 Energy to Succeed Content • BioDME from Pulp Mills via Black Liquor Gasification • BioDME from Biomass through gasification • Supply and Demand Balance for a DME fuel system - Flexibility for BioDME producers - Guarantee DME availability in the fuel system - Flexibility for fossil DME producers • Conclusions CHEMREC 17 Energy to Succeed The Route via Gasification and Syngas to Automotive Fuels Syntetic CO2 Diesel (FTD) Coal Methanol Heavy oils Natural Gas SyngasSyngas DME (DiMetylEter) (CO+H2)(CO+H2) Hydrogen Biomass GASIFICATION Chemicals Black liquor SNG CHEMREC 9/13/2010 18 Energy to Succeed Major Biomass Flow from the Forrest including Direct Biomass Gasification TOMORROW (2) Forest Logs Forest Pulp Residual Wood Saw- Direct Bio- mill mass RecoveryPulpCombined Recovery conver Boiler sion Wood Milland Fuel Generation Products Pulp Mill Fuel Pulp Fuel CHEMREC 19 9/13/2010 Energy to Succeed Major Biomass Flow from the Forrest Enlarged Feedstock Base Energy crops, TOMORROW (3) Forest Agricultural waste, etc Logs Forest Pulp Residual Wood Saw- Direct Bio- mill mass RecoveryPulpCombined Recovery conver Boiler sion Wood Milland Fuel Generation Products Pulp Mill Fuel Pulp Fuel CHEMREC 20 9/13/2010 Energy to Succeed Synthetic fuels through gasification. Value Chain A as defined by EBTP1) 1) European Biofuels Technology Platform Pre- treatment Final -pyrolysis Conversion Initial -Hydrotreatment - coarse prep. -Co-treatment -drying Conversion Transport -torrefaction - Feeding sys. Biomass Biofuels -grinding - Gasification Production **Final -CH4 ref’ng System Conversion - Tar handling - Particulate -Synthesis -black liquor * handling - reforming -Shifting -Cracking - Gas cleaning - hydrotreating -Etc Co-products - Distillation Co-located -Etc *No pre- treatment necessary before gasification. **certain steps of final conversion may be located elsewhere CHEMREC 21 Energy to Succeed Synthetic fuels through gasification Examples European project developments (1) Source: EBTP Choren Projects a. Beta plant, ~45 MWt / FT products / Under Start-up b. Sigma Plan Choren Beta Plant ~640 MWt / FT products / Start-up 14-15(?) Bioliq pyrolysis plant Lurgi MPG BioLiq Project gasifier 2 MWt / via DME to + HC:s / 2012 CHEMREC 22 Energy to Succeed Synthetic fuels through gasification Examples European project developments (2) Source: EBTP Chemrec development plant Chemrec Projects a. BioDME ~3 MW / DME / Start-Up Sept 2010 t BioDME plant under construction b. Domsjö Biofuels ~200 MWt / DME and Methanol / Start-Up 2013 Pilot tests in UPM Project Chicago at IGT a. Pilot testing at IGT, Chicago ~5 MWt / syngas production / Ongoing b. Commercial Demonstration ~300 / FT products / Start-Up 2014/15 Gasification Module t Full sized plant Source: UPM, Andritz, Carbona CHEMREC 23 Energy to Succeed Synthetic fuels through gasification Examples European project developments (3) Source: EBTP VVBGC Project (under re-financing & re-organisation) ~15 MWt / clean syngas / 2012-13 Neste-Stora Enso project ~ 12 MWt /part stream to FT / Gasification in operation BioTfueL Project StoraEnso Pilot Plant ~ 12 MW / FT products / 2012 t CHEMREC 24 Energy to Succeed Production Cost as Function of Price of Biomass Source: Renew (2008) 60 n 50 Chemrec ie CHOREN W TU 40 FZK ren TU Wien Cho 30 Abengoa CFB Abengoa EF ec Chemr 20 CUTEC ~ 0.5 €/BtL production costs [€/GJ] lit. 10 ~ 75-95 € diesel per dry ton eqv. biomass as DME 0 0123456789 Total biomass provision costs at BtL plant [€/GJ] CHEMREC 25 Energy to Succeed Scenario: All Planned Renewable Gasification Capacity in Europe to produce BioDME Project Feedstock BioDME Prod. Start-up (MWt) (Tonnes / year) Year Chemrec, Domsjö 200 100 000* 2014 UPM 300 180 000* 2014/15 Choren 640 380 000* 2014/15 BioLiq, StoraEnso 40 11 000* 2012/13 VVBGC and other IO minor projects AR Total N ~ 670 000 2015 CE A S * Different yield from different processes as well as different utilization CHEMREC 26 Energy to Succeed Content • BioDME from Pulp Mills via Black Liquor Gasification • BioDME from Biomass through gasification • Supply and Demand Balance for a DME fuel system - Flexibility for BioDME producers - Guarantee DME availability in the fuel system - Flexibility for fossil DME producers • Conclusions CHEMREC 27 Energy to Succeed Concept for development of the BioDME market for heavy duty vehicles Number of heavy duty (short / medium term) vehicles running on DME The 3000 Domsjö Project The BioDME Methanol 2000 Project - for low blend in gasoline - for RME/MTBE - for chemical use 1000 DME Time 10 3Q 2010 2014 CHEMREC 28 Energy to Succeed Concept for development of the BioDME market for heavy duty vehicles Number of heavy duty (medium / long term) vehicles running on DME 16000 ? 12000 8000 4000 The Domsjö Project BioDME MeOH Project DME Time 10 ? 2010 2014 2018 2022 CHEMREC 29 Energy to Succeed Concept for development of the BioDME market for heavy duty vehicles Number of heavy duty (medium / long term) vehicles running on DME Production: 680 000 t DME/y 30 ton dieseleqv / truck, year 16000 Corresponds to apr. 15 000 HD trucks ? 12000 8000 4000 MeOH DME Time 10 ? 2010 2014 2018 2022 CHEMREC 30 Energy to Succeed How to meet the demand