Chemicals From Woody Biomass

March 19, 2009 Forest Research, LLC 1

Potential Markets for

Chemicals from Woody Biomass

NESAF, Portland, Maine

March 19, 2009

Don MacKay, Ph.D, CFAForest Research, LLC

http://www.forestresearchllc.com/


Overview

History

Current situation– Markets, oil prices

Production processes

Potential products– More on biochemicals, less on

biofuels

Summary

History

Long history of using trees for chemicals and pharmaceuticals

Oaks for tanning and dyes

Naval stores (pine resins)

Hardwood distillation industry– Acetic acid

– Acetone

– Methanol



0

2

4

6

8

10

12

14

1924 1925 1926 1927 1928 1929 1930 1931

Millio

n g

allo

ns

Year

Wood Distillation Synthetic

US Methanol Production 1924-1931, By Source

Zeisberg 1933


0

10

20

30

40

50

60

70

80

90

100

1923 1925 1927 1929 1931

Millio

n p

ou

nd

s

Year

Wood Distillation Synthetic

US Acetic Acid Production 1923-1931, By Source

Zeisberg 1933

Current Situation

Key biochemical industry trends– Supporting growth

Long-term oil and natural gas prices

Limited supply of oil

Increasing concern around greenhouse gas emissions

Government funding (US, Europe, Asia)

– Inhibiting growth Financial Crisis of 2008

Shifts in supply and demand for chemicals

Technology is developing

Woody biomass supply challenges



$0

$20

$40

$60

$80

$100

$120

$140

$160

J-89 J-91 J-93 J-95 J-97 J-99 J-01 J-03 J-05 J-07 J-09

World Oil Price, US$ per Barrel

Source: Energy Information Administration


$0

$2

$4

$6

$8

$10

$12Ja

n-7

8

Ap

r-7

9

Jul-

80

Oct

-81

Jan

-83

Ap

r-8

4

Jul-

85

Oct

-86

Jan

-88

Ap

r-8

9

Jul-

90

Oct

-91

Jan

-93

Ap

r-9

4

Jul-

95

Oct

-96

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-98

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r-9

9

Jul-

00

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-01

Jan

-03

Ap

r-0

4

Jul-

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Oct

-06

Jan

-08

U.S. Natural Gas Wellhead Price

Natural GasUS$ per Thousand Cubic Feet

Source: Energy Information Administration

Current Situation

Key biochemical industry trends– Supporting growth

Long-term oil and natural gas prices

Limited supply of oil

Increasing concern around greenhouse gas emissions

Government funding (US, Europe, Asia)

– Inhibiting growth Financial Crisis of 2008

Shifts in supply and demand for chemicals

Technology is developing

Woody biomass supply challenges


Woody Biomass as a

Supply Source

Many biochemical technologies are untested, with unknown economics

Biomass is typically sourced over a wide area

Moisture content can be high, drying may be required

Supply less certain than other types of feedstocks, also seasonality

Transportation and storage can be more challenging than other feedstocks


Fuels and Chemicals

Worldwide investment in biofuels and biochemicals

– Industry

Old Town Fuel and Fiber

Weyerhaeuser/Chevron (Catchlight)

– US federal funding

– Other countries

China

US cellulosic ethanol investment estimated at $1.2 billion last fall



Liquid Biofuels and Chemicals

First generation– Biofuels, such as ethanol,

from food-related biomass

– Oilseed based biodiesel

Second generation– Non-food sources

Agricultural residues

Woody biomass


Roundwood Short rotation woody crops Wood residue from primary wood products mills, such as wood and bark Wood residue from secondary wood products mills Commercial and demolition debris Black liquor from pulpmills

Potential Sources

Source: Skog and Rosen 1997

Feedstock Processes

Lower energy (portion of wood)– Extraction (e.g., hot water)

Value prior to pulping

– Fermentation (via bacteria & fungi) Ethanol, sugars

Higher energy (whole wood)– Gasification

Gas products

– Pyrolysis (absence of oxygen) Liquids


Wood Composition Varies

Hardwoods preferred for certain types of chemicals–Hemicellulose

generally more hemicellulose

contains more xylan, which is a starting point for biochemicals

Softwoods–Generally small amounts of xylan

–Naval stores - resins


Potential Chemicals

Acetic acid– Important industrial, intermediate chemical

– Historically produced from wood

– Large market (roughly US$10 billion)

– Can be obtained via low and high energy processes

– Uses Raw material for VAM, used in paints and coating

Other uses adhesives, paper coatings, textile finishing agents, production of aspirin

– Roughly two-thirds of production comes from methanol

– Price has declined – correlated with construction

– Demand growth in China


Potential Chemicals

Furfural– Intermediate commodity chemical

– Moderate market (roughly US$250 million)

– Produced from hemicellulose in biomass (no synthetic route)

– Quaker Oats (oat hulls, rice hulls, sugar cane residual)

– Produced in China, Dominican Republic, and South Africa

– Uses Used in a range of specialty chemicals

Used in resin production, to produce lubricants, nylons

– Can compete with hydrocarbons without subsidies (RIRDC 2006)


Potential Chemicals

Itaconic acid– Specialty monomer. Could be used in

manufacture of acrylic fibers, detergents, adhesives

– Expensive to produce from oil, now corn

Succinic acid– Platform chemical (naturally occurs)

– DOE licensed fermentation technology

Lactic acid– Range of uses – biodegradable polymers

– Currently mostly from corn


Potential Chemicals

Methanol – less appealing– Important industrial chemical (40+ million tons yr)

35-40% used to create formaldehyde, which is used in plywood

20% used in gasoline

Remaining used for a variety of purposes, including creating acetic acid

– Once exclusively produced from wood, now primarily natural gas

– Potentially produced from high energy processes

– Correlated with housing – weak demand

– High cost shutting down -- production shifting to

Middle East, Asia


Potential Chemicals

Hydrogen – far to market– Extensively studied,

promising product

– Does not release CO2 when consumed at its end use

– Potentially produced through many processes, primarily from high energy processes

– Most likely consumed where produced


Some Key Drivers

Successful Investments Must Be Market Driven– Changes in price relationships between

current uses and new uses (pulp, energy, chemicals)

– Price and demand for chemicals

– Availability and prices of new and existing raw materials (woody biomass, oil)

– Relative environmental impacts of new and old feedstocks (woody biomass, fossil fuels)


Source: Skog and Rosen 1997

Summary Wood has a long history of use for chemicals

Substantial investment, industry growth– Seeking lower cost, nonfood, renewable feedstocks

– Biomass is the only large, renewable source of chemicals

Technological challenges remain. Incremental changes likely to be superior investments

Chemicals & pharms compete in the global arena– China, Middle East

– Specialty products/patented processes likely superior investments

Chemical prices may be correlated with lumber/pulp/paper prices

Certain tree species will be superior for certain chemicals



Acknowledgements

This activity is supported byNational Science Foundation award

#EPS-0554545to Maine EPSCoR at the

University of Maine

Barbara Cole and Ray Fort at the University of Maine

Amy Mares, student at Orono High School

Complete report available at www.forestresearchllc.com

http://www.forestresearchllc.com/

Chemicals From Woody Biomass

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