Bio-Refining in a Future Bio-Economy

Geoffrey Bell

Australian Task Leader – Task 42

CEO – Microbiogen Pty LtdUpdate post IEA Meeting – Task 42 Dublin Ireland – April 2016

Task42Biorefining

Task42Biorefining

Background – IEA BioenergyEUROPE

• Austria• Belgium• Croatia• Denmark• European Commission• Finland• France• Germany• Ireland• Italy• Netherlands• Norway• Sweden• Switzerland• United Kingdom

IEABioenergyBudget:2014:1,9MillionUS$

Tasks:11

Taskparticipation: 102

Directparticipation: 200persons

ASIA/AFRICA• Australia• Japan• Korea• New Zealand• South Africa

•AMERICA’S• Brazil• Canada• United States

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23countriesparticipateintheIEATasks9countriesparticipateinTask42

Task42Biorefining

Task42: Most recent publication "Developing the Global BioEconomy" brings together expertise from three IEA Bioenergy Tasks - Task 30 on Pyrolysis, Task 40 on International Trade and Markets, and Task 42 on Biorefineries - to review and draw technical, market and environmental lessons from bioenergy to support the future deployment of a global BioEconomy. This book was recently published by Elsevier.

http://store.elsevier.com/Developing-the-Global-Bioeconomy/isbn-9780128051658/

Published: May 11 2016

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Task42Biorefining

Task42: Country updates - Denmark • Long term target 100% renewable energy

by 2050.• Renewables to cover 35% of total energy

consumption, 50% electricity from wind by 2020.

• All heat and power renewable by 2035• Focus on wind and biomass –biomass to

replace coal in CHP plants• Increased use of manure for biogas;

subsidy for biogas to natural gas grid and subsidy for biogas used for transport.

• No current support for traditional biofuels (e.g. 1st generation bioethanol) and 2nd

generation bioethanol.4/18

Task42Biorefining

Task42: Country updates – Denmark: Maabjerg bio-refinery• 2.5% 2G national blending target close• Consortia of local power companies

(50%), DONG and Novozymes (50%).80 million litres of ethanol annually50 million cubic metres of CH4

Heat and Power for 25000 households• NIR funding of 39 mio Euro in 2014.• Looking good….construction expected to

start end 2016.

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Task42Biorefining

Task42: Country updates – Denmark: Maabjerg bio-refinery

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Task42Biorefining

Task42: Country updates – Italy – New Novomont Plant• New fermentation plant in the site of a

previous plant (Adria ) for the production of 1.4 butanediol from renewables

• Important partnership with Genomatica.• Plant size: 30,000 ton/y• Plant start-up – July 2016

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Task42Biorefining

Task42: Country updates – Italy – GF Biochemicals• New facility started production in 2016• Produced Levulinic acid• Capacity of 10,000 tonnes per year• First company to produce levulinic acid at

a commercial scale directly from biomass

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Task42Biorefining

Task42: Country updates – Italy – Beta Renewables• In 2012 a partnership was created between Novozymes

and Beta renewables .• Long-standing collaboration has led to substantial

reduction in cost of enzymes per unit of cellulosic ethanol

• Partnership of two industry leaders boosts confidence in the technology

• Cresentino lignocellulosic ethanol facility has been operating since late 2013.

• Parties are committed to ongoing improvements in enzymes and process

• In India, Novozymes and Beta Renewables are working to establish a 75 million liter per year cellulosic ethanol plant using 3 million metric tons of paddy straw as feedstock

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Task42Biorefining

Task42: Country updates – Austria – Micro-algae• Ecoduna microalgae production • Existing pilot- plant • Ecoduna is ramping up for the implementation

of for a full scale industrial demo site in 2017 • Planned capacity 200 t/a dm algae biomass • Key product is algae biomass and Omega 3

fatty acids – not biofuels… • Ecoduna is currently outreaching for additional

investors • Ecoduna has built and runs the world’s largest

continuous algae production plant in Austria, using funding from the EU Entrepreneurship and Innovation Programme

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Task42Biorefining

Task42: Country updates – Austria – Micro-algae cont...• Photo-bioreactors are turnable for tracking the sun position • “dilution of light” due geometry • Overheating can be avoided • Algae biomass has the same maturity level in each module • Specific nutrition and stress factors can be applied and fully

controlled • VERY advanced system!

• Algae is bred in a vertical meandering channel of 100% photoactive volume

• CO2 bubbles generate flow through; à enables continuous operation without pumping

• Algae biomass is always at the same maturity stage along the cultivation process in the reactor. This enables specific nutrition supply or initiation stress according to maturity level… harvest at optimal conditions

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Task42Biorefining

Task42: USA – Evolution of bio-refineriesThe evolution of corn ethanol into bio-refineries • Corn stover to ethanol

• Corn oil to biodiesel

• Waste streams to protein

• Increased conversion efficiency

• Declining unit costs

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US$20

US$80

US$60

US$40

US$100Valueofproductswiththesameamountofcorninput

1990standardcornethanol

US$MSales

revenu

es

US$65M

Ethanolfromcorn

Typicalcornoperation20yearsago

DDGSco-product

Addcornoilextraction

MostfacilitiesnowextractingcornoilRevenuesup13%

US$73.5M

Ethanolfromcorn–increasedconversionefficiencyby10%

Cornoil

DDGSco-product

Addcornkernel

cellulosic

US$76.3M

Ethanolfromcorn–increasedconversionefficiencyby10%

Cornoil

DDGSco-product

Cornkernelcellulosic

Someoperationscommencingcorn

cellulosicsRevenuesup17%

Task42Biorefining

Task42: Country updates – Australia – Evolution of bio-refineriesOpportunity to optimise a 2G biofuel facility• Upgrading fermentation

• Use yeast that can grow on their own waste

• Produce a by-product of high value animal feed

• Increased conversion efficiency from <65% to >85%

• More efficient and sustainable bio-refinery

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Fuel Ethanol

High value feed

Pre-treatment and hydrolysis

to sugarsBiomass“Fuel and Food”

ProcessMBG

“Fuel and Feed” bio-refinery

fermentation

High value co-product

ResidualC6+C5sugarsGlycerolAcetate

OrganicacidsXylitol

Fermentation yeast Twohighvalue

products,notjustoneandconversionefficiencyupfrom

65%to>80%

Task42Biorefining

Task42: Country updates – Australia – Evolution of bio-refineriesImpact on Australia and profitability • Currently deployed technology leads to

doubling of revenue per tonne of biomass

• Add between 11% and 13% by utilising new technology – already identified

• Lower commodity risk - diversification

• Many additional opportunities…

- Green coal

- Bio-chemicals

- Other optimisation

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Value ofproductpertonneofSugarCane(drybasis)

US$154

Sugarfromcanejuice

US$301

Ethanolfromcanejuice

US$168

US$133

Ethanolfrombagasse,trash

andtops

Sugaronlymill

Current1st and2nd Genbio-refinery

Optimised1st and2ndGenbio-refinery

maximisingethanol11%increase

Ethanolfromcanejuice

US$168

US$140

Ethanolfrombagasse,trash

andtops

FeedYeastGreencoalUS$15

US$27

Ethanolfromcanejuice

US$168

US$92

FeedYeast

GreencoalUS$15

US$82

US$335 US$342

Optimised1st and2ndGenbio-refinery“FuelandFeed”13%increase

Task42Biorefining

Task42: Country updates – Australia – Pentland Project

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Task42Biorefining

Task42: Country updates – Australia – Pentland ProjectAustralia’s first large scale integrated Gen I and II bio-refinery • Recently received ARENA grant of

approximately A$3M.

• Based initially on sugar cane with potential to include super-sweet sorghum

• Large scale – Stage I of up to 340 million liters of ethanol per year

• Stage I capex of A$800M.

• Potential to expand to 1 billion liters per year

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Task42Biorefining

Task42: Country updates – Australia – Pentland ProjectAustralia’s first large scale integrated Gen I and II bio-refinery • Utilising Beta Renewables and

Novozymes technology

• Combination of high biomass yields and scale results in low forecast operating costs

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Questions…Geoff Bell

Microbiogen Pty Ltd

geoff.bell@Microbiogen.com

Ph: +61 2 9418 3182

Evolutionary Technology

Revolutionary Food and Fuel

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