Second Annual California Biomass Collaborative Forum

John Ferrell Office of Biomass ProgramU.S. Department of Energy

March 1, 2005

“Federal Goals for Biorefinery Development and Implications for Fuel and Power in California”

Strategic Direction

• Dramatically reduce or even end dependence on foreign oil

• Reduce burden of energy prices on the disadvantaged

• Increase the viability and deployment of renewable energy technologies

• Increase the reliability and efficiency of electricity generation, delivery and use

• Increase the efficiency of buildings and appliances

• Increase the efficiency/reduce the energy intensity of industry

• Create the new domestic bioindustry• Lead by example through Government’s

own actions

EERE Portfolio Priorities

Biomass R&D Act

Role of Biorefineries – Findings– Grain processing mills are biorefineries that

produce a diversity of useful food, chemical, feed, and fuel products

– Technologies that result in further diversification of the range of value-added biobased industrial products can meet a key need for the grain processing industry

Pathways to Biorefineries

P A T H W A Y SP A T H W A Y S

Billion Ton Study

Billion Ton Study

Are there sufficient resources to meet 30% of the country’s petroleum requirements?

• Yes, land resources of the U.S. can sustainably supply more than 1.3 billion dry tons annually and still continue to meet food, feed, and export demands

• Realizing this potential will require R&D, policy change, stakeholder involvement

• Required changes are not unreasonable given current trends

1301

933

368

0 200 400 600 800 1000 1200 1400

Million dry tons per year

Total resource potential

Agricultural resources

Forest resources

Pathways 2005 and Beyond

Milestones

Pathway 1 “A1”Pathway 2 “A2”

Pathway 3 “A3”

“A”Milestones

Project/Task aligned with programand on critical path

Project/Task aligned with program

not on critical path

• Integrates Pathways and subsequent “A” Milestones across WBS

• Allows project milestones and cost targets to apply directly to pathways

• Allows resources to be focused on technology development critical to a pathway without sacrificing the long term

• Enables dynamic response to changes in resource loading

Agricultural SectorBiorefinery Pathways

Program “A”MilestonesFeedstocksBiorefinery Pathway

Conversion Pathway Options Under

Consideration (each has a IndustrialPartners

B Milestone - cost target )•Aventine•Nature Works, LLC

Corn Grain

• Residual Starch Conversion• Fiber Conversion• New Fractionation Process• Products from C 5/C6 Sugars• Products from Oils

Complete systems level demonstration and validation of

all technologies to improve corn wet mill facilities using

corn grain feedstock

• Residual Starch Conversion• DDG Conversion• New Fractionation Process• Products from C 5/C6 Sugars

•Abengoa•Broin•Dupont

Complete systems level demonstration and validation of

all technologies to improve corn dry mill facilities using

corn (and other ) grain feedstock

Other Grains

•ADM•NCGA•Cargill•NCGAWet

andDry Mills

Complete systems level demonstration and validation of

all technologies to improve natural oil processing facilities

using oil crop feedstock

Oil Crops

• Products from Oils •ADMOil Crops

• Corn Stover

• Small Grain Straw

• Rice Straw

•Abengoa•Dupont•Cargill•Nature Works LLC

Complete systems level demonstration and validation of

all technologies to improve processing facilities using

agricultural residue feedstocks

• Biomass Sugar Production• Products from C5/C6 Sugars• Products from Lignin • Biomass Gasification• Products from Synthesis Gas• New Fractionation Processes• Products from New Process

Intermediates

AgricultureResidues

Complete systems level demonstration and validation of

all technologies to improve processing facilities using

Perennial Crops

None• Grasses• Woody

Crops

• Biomass Sugar Production• Products from C5/C6 Sugars• Products from Lignin • Biomass Gasification• Products from Synthesis Gas• New Fractionation Processes• Products from New Process

Intermediates• New Consolidated Processes

Perennial Crops

Forest SectorBiorefinery Pathways

Program “A”MilestonesFeedstocksBiorefinery Pathway

Conversion Pathway Options Under

Consideration (each has a B Milestone - cost target ) Partners

Complete systems level demonstration and validation of

all technologies to improve corn wet mill facilities using

corn grain feedstock

•Georgia-Pacific•Agenda 2020

• Wood• Mill

Wastes

• New Fractionation Process for Hemicellulose Removal

• Products from C 5/C6 Sugars• Black Liquor Gasification• Products from BLG Syn Gas

Pulp and

Paper Mills

•None• Wood• Mill

Wastes

• Pyrolysis Oil Upgrading

Complete systems level demonstration and validation of

all technologies to improve corn dry mill facilities using

corn (and other ) grain feedstock

Forest Product

Mills

ForestResidues

•NoneComplete systems level

demonstration and validation of all technologies to improve

natural oil processing facilities using oil crop feedstock

• LoggingResidues

TreatmentsFuel•

• Biomass Sugar Production• Products from C 5/C6 Sugars• Products from Lignin • Biomass Gasification• Products from Synthesis Gas• New Fractionation Processes• Products from New Process

Intermediates

•None Complete systems level demonstration and validation of

all technologies to improve processing facilities using

agricultural residue feedstocks

• MSW &Urban

WastesWood

• Biomass Sugar Production• Products from C 5/C6 Sugars• Products from Lignin • Biomass Gasification• Products from Synthesis Gas• New Fractionation Processes• Products from New Process

Intermediates

Non-ForestWood

Wastes

Pathway—Investment—Stage GateWet Mill, Dry Mill and Ag Residue Pathways

Delays in attainm

ent of perform

ance criteria

CommercialViability

TechnicalViability

Concept Proof

CommercialSustainability

Technology Development(Bench Scale)

Commercially Viable Demo

(Demonstration Scale Plant)

PermittingEngineeringConstruction

Operation

Proof of Concept

(Pilot Scale)

80% / 20% 50% / 50% 20% / 80%Loan Guarantee

and/or Risk Mitigation

100% / 0%

CoreResearch

AndDevelopment

ConceptDevelopment

PlatformR&D

CRADA’S & Projects

2008Solicitation

BiorefinerySolicitation

ProductsSolicitation

Independent Commercial Developments “A” MilestoneMet

Major Industry Partners

Enzymatic Hydrolysis ResearchNREL worked with Genencor & Novozymes for 4+ years• Focus on enzyme biochemistry, cost, specific activity, and• Interaction of biomass pre-treatment and enzymatic hydrolysis RESULT: G.T. 10-fold reduction in cost contribution of enzymes ($/gal EtOH)

-1

+1

+2

-2

cellodextrin

Y82

CBH1 from T. reesei

E1 from A. cellulotiticus

Courtesy of M. Himmel (NREL)

Major Biorefinery Projects

Broin“A Second Generation Dry Mill Biorefinery”• Improve economics of existing dry mills by adding additional co-

products and increasing ethanol yields

Technologies:• Fractionation• Pretreatment• Hydrolysis• Fermentation

Accomplishments:• Use of corn bran in bench scale fermentation to demonstrate increased

ethanol production.

Pathway:• Corn Dry Mill

Major Biorefinery Projects

ADM/NCGA“Separation of Corn Fiber and Conversion to Fuels and Chemicals”• Economically derive high value chemicals and oils from corn fiber.

Technologies:• Hydrolysis• Separations• Catalysis

Accomplishments:• Decision made to continue to pilot scale testing. • Spurred secondary project leading to potential major breakthrough in Biodiesel

production.

Pathway:• Corn Wet Mill

Major Biorefinery Projects

Cargill“New Biorefinery Platform Intermediate Project”• Develop a new bio-based platform technology to produce a portfolio

of products based on 3-HP (3-hydrolxpropionic acid) produced by the fermentation of carbohydrates

Technologies:• Strain development• Fermentation• Catalysis

Accomplishments:• A suitable strain was selected.• A reactor configuration, catalyst and operating conditions have been identified.

Pathway:• Corn Wet Mill

Major Biorefinery Projects

Nature Works, LLC“Making the Industrial Biorefinery Happen”

• Develop and validate process technology for use with sustainable agricultural systems to economically produce sugars and chemicals such as lactic acid and ethanol.

Technologies:• Strain development• Fermentation• Pretreatment • Hydrolysis

Accomplishments:• Economic feasibility modeling has been done and initial PFD’s developed.• Improved strains have been developed.

Pathway:• Corn Wet Mill• Ag Residue

Major Biorefinery Projects

Nature Works LLC/MAT“Collection, Commercial Processing and Utilization of Corn Stover” • Develop and test new harvesting and transportation technologies for corn stover,

evaluate wet storage, engineer a fermentation system.

Technologies:• Harvesting• Storage• Hydrolysis• Fermentation

Accomplishments:• Report issued regarding issues around the development of a biobased supply chain• Storage bunker was designed built and loaded with stover.

Pathway:• Ag residue

Major Biorefinery Projects

DuPont Biorefinery Project“Integrated Corn Based Biorefinery Project”• Develop the Integrated Corn Based Biorefinery for the parallel production of Fuel Ethanol

and PDO (1,3 propanediol).

Technologies:• Strain development• Fermentation• Pretreatment • Hydrolysis

Accomplishments:• Presented economics on the ICBR showing that the production of PDO in an integrated

biorefinery had significantly higher ROI’s than the biological production in a non-integrated facility and than from the petroleum route.

• In 2004, DuPont and Tate & Lyle formed a JV to produce PDO biologically from wet mill derived glucose.

Pathway:• Corn Dry Mill• Ag Residue

Major Biorefinery Projects

Abengoa Bioenergy LLC“Advanced Biorefining of Distiller’s Grain and Corn Stover Blends”• Develop a novel biomass derived process technology that utilizes advanced biorefined

Distiller’s Grains and Corn Stover blends to achieve higher ethanol yields in a dry mill.

Technologies:• Strain development• Fermentation• Pretreatment • Hydrolysis

Accomplishments:• Dry mill portion of Pilot plant trouble shooting and

base line runs started.

Pathway:• Corn Dry Mill• Ag Residue

Biomass Funding TodayEarmarks and Total Funding

• Three-fold increase in earmarks since 2000

• Earmarks have grown from 18% to over 40% of the total funding

• Real decline in the available funds used in support planned R&D and biorefinery support

• Objectives can not be achieved if trends continue to FY06 and beyond $0

$10$20$30$40$50$60$70$80$90

$100$110$120$130$140$150

FY00 FY 01 FY 02 FY 03 FY 04 FY05 FY06

13 18

3930

42

81

94

7460

80

EarmarksTotal Funds Available forPlanned Activities

LegendMillions of Dollars per Year

35

52 ?

Path Forward

Conferences:– 1st International Biorefinery Workshop

• July 20-21, 2005, Washington, D.C.Biorefinery Analysis:– Summer of 2005

Solicitations:– Plan an FY 2008 competitive solicitation for demonstration scale plants

Focus:– Dry Mill, Wet Mill, and Ag Residue Pathways

• Partners established • Closest to fruition

– Sugars Platform Targets Addressing the Conversion of Recalcitrant Starch, Corn Fiber and Ag Residues

• Critical path for both existing projects and long term goals– Products Solicitation Projects to Anchor Future Biorefinery Projects– Concentrate on Thermochemical Conversion of Lignin to Heat, Power, and/or

Products • Becomes a critical path for ag residues• Expand to forest sector when possible

Deployment – Barriers

BasicR&D

Technology Development

Commercially Viable Demo

Permitting &Engineering

Proof of Concept Construction Operation

Com

mis

sion

ing

First Commercial Plant Mec

hani

cal c

ompl

etio

n

Atta

inm

ent o

f per

form

ance

crit

eria

Del

ays

in a

ttain

men

t of

perf

orm

ance

crit

eria

Operation

80% / 20% 50% / 50% 20% / 80% Loan Guarantee Program/Risk Mitigation Pool

“A” Milestone AchievedTechnical Risk Minimized

Dev

elop

men

t Cos

ts

100% / 0%

Current BiorefineryProjects

Procurement

Private Cost-Share:OBP Cost-Share:Project Timeline:

Development Stages:Unexpected Cost:

Risk Mitigation:

Potential FutureOBP/EERE Deployment Efforts(to overcome financial barriers)