biorefineries and value added chemicals from biomass

1. JAMES BERRY JENNY COCHRAN MARY PAGE APRIL 29, 2008 Utility Integrated Biorefineries

2. Background Problem Statement Mathematical Model Net Present Value Centralized Costs Cash Flow Location Results

3. UTILITY INTEGRATED BIOREFINERIES PRODUCING VALUE-ADDED CHEMICALS FROM BIOMASS Background

4. Description of Biorefinery Large system of processing units Saves transportation costs by incorporating multiple plants in same facility Produces fuel and chemicals from biomass feedstocks Similar to petroleum refinery but operates from biomass

5. Environmental Benefits Avoid environmental problems with fossil fuels Release carbon dioxide Global warming Devastating climate changes Utilize renewable resources Non-renewable resources Depleting Oil Natural gas Coal

6. Government Incentives Energy Independence & Security Act of 2007 2008 Renewable Fuels Standard (RFS) 8 bgy domestic alternative fuels 2022 RFS 36 bgy domestic alternative fuels 21 bgy advanced biofuels 16 bgy of advanced biofuels - cellulosic ethanol Research Investments Improve biofuel production efficiency and economic impact Improve biomass conversion processes

7. Example Process Flow Diagram

8. Benefits of Integration Integrate multiple processes into one refinery Benefits Use byproducts from one process as feed for another Centralize utilities Lower overhead More profitable

9. Central Utility Example

10. Benefits of Switchgrass Does not affect food supply Produces high yields without fertilizer Draught resistant Fully renewable Net energy 20 times greater than corn Current delivered cost $30-$50 per dry ton (regional) Produces variety of chemicals Biofuels (Ethanol, etc.) Value-added (1,3-PDO)

11. Switchgrass in Oklahoma Oklahoma Bioenergy Center Secured 1100 acres of land in panhandle for switchgrass production Largest field of its type focused on biomass production and bioenergy development Crops transported to Hugoton, Kansas Abengoa Bioenergy USA�s biorefinery Examining long-term impacts of bioenergy cultivation techniques Plans to begin operation in 2010 Reinvesting biomass revenues into bioenergy research

12. MODEL A UTILITY INTEGRATED BIOREFINERY OPERATING FROM BIOMASS WHILE MAXIMIZING PROFITABILITY BY INCORPORATING VALUE-ADDED PRODUCTS. Problem Statement

13. DOE Value Added Flowchart

14. DOE Building Blocks Screened chemicals by examining Potential market for building blocks Potential market for derivatives Technical complexity of synthesis pathway

15. Processes

16. Processes Analyzed stoichiometry of 58 processes for mathematical model Three groups of processes Fermentation of glucose Solventogenic clostridia Syngas-based processes Other chemical processes Hydrogenation Oxygenation Polymerization

17. Process Stoichiometry

18. Fermentation Yields

19. Factors Affecting Location Location Choices Labor Costs Corporate Growth Length of Harvest Season Proximity to Crops Transportation Costs Markets for Products Distance to Market 25 Potential Farm Locations 34 Potential Plant Locations 24 Potential Markets Location

20. Switchgrass Farm Locations

21. Oak Ridge National Labs Switchgrass Study FarmgateSwitchgrass Price ($/ton) Factors taken into account Acres suitable for switchgrass cultivation Local taxes and rent Annual yield based on harvest length Comparison to national farm gate average prices Switchgrass Farm Location

22. Location

23. DEVELOP A MATHEMATICAL MODEL TO SYSTEMATICALLY MAXIMIZE THE PROFITABILITY OF INTEGRATED PROCESSES WITHIN A BIOREFINERY Mathematical Model

24. Maximize Net Present Value 20 year economic lifetime Cash returned to investors each year, Rt Yearly discount factor, dt Capital investment, capinv 58 possible processes 258 combinations ? 2.88 E 17 potential options Objective of Model

25. Process Mass Balance Perform mass balance around each process Input Raw materials Chemicals flowing from previous process Output Chemicals flowing to next process Chemicals to be sold

26. Model determines Processes to build Year Capacity Expansions Year Capacity Equations

27. Process Elimination

28. Original Flow Chart 58 Processes After Initial Screening 35 Processes Process Elimination

29. Add Capital & Operating Cost 17 Processes Final Screening with Utilities 3 Processes Process Elimination

30. Capital investment Initial capital Capital for expansions Capital for utilities Operating costs Initial costs Costs for utilities Costs for centralized utilities Costs

31. Centralized Utilities Non-centralized vs. centralized utilities Change in profitability Change in power requirements

32. Centralized Utilities Supply processes consuming utilities with those generated from others Difference in processes must be purchased

33. Cash Flow Follows cash flow accumulated over time Taxes in a given year Net profit after taxes, NPATt Capital investments for initial and expansion builds, Casht Money returned to investors, Rt Cash Flow

34. Revenue equation Raw prices at given market over time Selling prices at given market over time Cash equation Transportation costs From switchgrass to plant location From plant to market location Model chooses Plant location Region to purchase switchgrass Markets to sell chemicals Location

36. Selling Prices at Market Raw Material Prices Stoichiometry Product Transfers Mileage from Plant to Market and Farm to Plant Utility Consumption Utility Generation

37. DETAILS OF THE FINDINGS FROM MATHEMATICAL MODEL Results

38. Building Schedule 20 year economic life Build 3 processes in first five years

39. Utilities Include heating and cooling utilities as well as water and electricity Major contributors are: Heating steam Clean steam for sterilization of equipment Cooling water Electricity for mixing Air for aerobic fermentations Process water Treatment water Utilities estimated using Bioseparations Science and Engineering by Harrison, et al and from simulations in SuperPro. An important input to our model is the centralization of utilities and comparison to non-centralized utilities. An important input to our model is the centralization of utilities and comparison to non-centralized utilities.

40. Major Service Facilities Boiler plant for steam generation 2 Water treatment plants (process & treatment water) Cooling towers for cooling water Compressor plant for air Having centralized utilities leads to substantial capital cost savings

41. Example: Glucose ? 3 Hydroxypropionic Acid Non-Centralized Utilities This table gives an idea of the cost of having individual service facilities for each process using as an example the reaction glucose to 3 HPA.This table gives an idea of the cost of having individual service facilities for each process using as an example the reaction glucose to 3 HPA.

42. Example: Process Water Treatment Facility Comparison with Centralized Utilities Here�s a comparison of the cost difference for centralized and non centralized utilities for just the process water treatment facility.Here�s a comparison of the cost difference for centralized and non centralized utilities for just the process water treatment facility.

43. Economic Comparison

44. Final Process and Utility Flow

45. Water, air, and steam generated can be used in other processes to save utility costs Utility Integration Another benefit of having multiple processes together in a biorefinery is that utilities generated in one process can be used in other processes to reduce the amount that needs to be purchased. This table demonstrates how that savings would work. Another benefit of having multiple processes together in a biorefinery is that utilities generated in one process can be used in other processes to reduce the amount that needs to be purchased. This table demonstrates how that savings would work.

46. Location Build Huntsville, AL Buy Alabama Lowest Farmgate Price $31.44/ton National Average $39.26 Sell Chicago, IL Houston, TX The next important result of the model is that it gives us the location for the biorefinery as well as the locations where we should purchase the switchgrass and sell our products. The result is that we want to build in Huntsville AL� The next important result of the model is that it gives us the location for the biorefinery as well as the locations where we should purchase the switchgrass and sell our products. The result is that we want to build in Huntsville AL�

47. Conclusions Model effectively determines Processes which should be considered to maximize NPV Building schedule Location to buy, build, and sell Centralizing utilities leads to substantial cost savings and maximizes net present value

48. Miguel Bagajewicz, Instructor Duyquang nguyen, TA Acknowledgements

49. References Academic References Aden, A.; Bozell, J.; Holladay, J.; White, J.; Manheim, A. Top Value Added Chemicals From Biomass. U.S. Department of Energy: Energy Efficiency and Renewable Energy. Produced by: Pacific Northwest National Laboratory & National Renewable Energy Laboratory. August 2004. Carmer, J.; Waller, C.; Wilkes, D.; and Nizami, S.; Biorefineries. Unpublished. 4 May 2007. Graham, R. and Walsh, M. A National Assessment of Promising Areas for Switchgrass, Hybrid Poplar, or Willow Energy Crop Production. Environmental Sciences Division. 4804. February 1999. Lavaja, J.; Adler, A.; Jones, J.; Pham, T.; Smart, K.; Splinter, D.; Steele, M.; Bagajewicz, M.; Financial Risk Management for Investment Planning of New Commodities Considering Plant Location and Budgeting, Ind. Eng. Chem. Res. 2006, 45, 7582-7591. Tran, T.; Patel, T.; Iland, T.; Truong, J.; Ibidapo-Obe, B.; Constantino, J.; OU Biorefining Technical Report for Biomass Production. Unpublished. 30 April 2004. Figures shown in Presentation Figure 1: http://www.microbialcellfactories.com/content/6/1/9/figure/F1 Figure 2: Lawrence Livermore Public Library, https://publicaffairs.llnl.gov/news/news_releases/2005/NR-05-11-01.html Figure 3: http://jcwinnie.biz/word press/?taxonomy=post_tag&term=conversion Figure 4: Department of Energy � �Top Value Added Chemicals from Biomass�. Figure 5: www.chemeng.drexel.edu/.../FAQs/Default.aspx Figure 6: http://www.chemeng.drexel.edu/.../FAQs/Default.aspx Figure 7: Oak Ridge National Laboratory, http://www.ssticonference.org/Conf07/ORNL.jpg Reoccurring switchgrass: http://www.noble.org/press_release/Features/2006/SwitchtoSG/index.html Reoccurring biorefinery: http://www.bio-pro.de/en/region/ulm/magazin/03300/index.html

50. AT THIS TIME WE WOULD LIKE TO INVITE COMMENTS AND QUESTIONS FROM THE AUDIENCE Questions