Uwe Zwiefelhofer

EU-Malaysia Biomass Stakeholders Knowledge Exchange Session Conversion of Biomass Using Proprietary Technologies – Lurgi‘s Experiences Uwe Zwiefelhofer Lurgi Sdn Bhd A-9-1 Wisma HB Megan Avenue II Jalan Yap Kwan Seng 50450 Kuala Lumpur Tel: +6 03 2164 6446 Fax: +6 03 2164 5448 Email: uwe.zwiefelhofer@airliquide.com

Biomass to Fuels in 1950’s …. … the direct approach….

This Presentation • Lurgi at a Glance • Biomass Availability • Conversion of Biomass: Challenges, Concepts • Technology Overview and Status • Economics

Member of Lurgi at a Glance Lurgi Portrait 1500 Engineers, that deliver Innovative Technologies and Plants from One Hand for Oil, Coal and Gas Industry Studies, Basic -, Detail Engineering, Licence, Procurement Proprietary Technologies Market Leader CTC, GTC, Biofuels Project Management, Turn Key Execution d Technical Services • Technology and • EPC Expertise • Total Customer Focus • Innovative Solutions • Single Line Responsibility Research and Development

E&C Cryogenics E&C Lurgi 1 500 Employees in 6 Engineering Centers 1 300 Employees in 8 Engineering Centers Champigny Frankfurt Krakow Vitry Beijing Houston Harima Shanghai Hangzhou Houston Delhi Hyderabad Johannesburg Lurgi at a Glance E&C : Engineering and Construction • Air Liquide : Relies on > 100 years of in-house Engineering and Technologies Engineering Capabilities: Doubled with Acquisition of Lurgi Strong Force: 2800 Engineers in the E & C Activities

Sel. Refinery technologies • Hydrocracker • FCC • HDS • Aromatics • Polymers • Petchems • Gasification • Syngas • Hydrogen • Methanol • MTP • DME • FT • SNG • MPG • Biodiesel • Ethylester • Fatty Acid • Fatty Alcohol • Bioethanol • Biomass to Liquids (R&D) Lurgi at a Glance Technology Portfolio Traditional (from crude oil) Alternative (from gas & coal) Renewable (from biomass) Chemicals, Fuels & Energy

Lurgi at a Glance Lurgi – Technologies for Fuels and Chemicals Feedstock Crude Oil Native / WasteBio Oils Biomass Coal Nat. Gas Cereals Oil Seeds Energy Crops Pressing /Extraction Pyrolysis Gasification Refinery Pre Treatment Reforming HydroTreating BioSyncrude Heavy Residues Bio Chem Chem Gasification Gasification Raw SynGas Petro Chemistry Lurgi Technologies Sulfur Management SynGas Conditioning CO2 Trans-Esterification Fermentation H2 / CO CleanSynGas MTP Methanol Coldbox DME Fischer Tropsch Methan- ation Petro- chemicals Petrofuels Green Diesel Fuels / Gases Bio-Ethanol: Gasoline Bio-Diesel: Diesel MTBE Additives M15 M100 SNG H2 Diesel LPG Synfuel CO Product Food, Oleo- Chemicals Chemicals Chemicals Polymers Propylene Polypropylene Formaldehyde Acetic Acid etc.

Alternative Traditional Renewable Refinery PetroChemistry GtL = Gas to Liquid CtL = Coal to Liquid BtL = Biomass to Liquid Biodiesel Bioethanol Lurgi at a Glance Lurgi – Technologies for Fuels and Chemicals Feedstock Crude Oil Native / WasteBio Oils Biomass Coal Nat. Gas Cereals Oil Seeds Energy Crops Pressing /Extraction Pyrolysis Gasification Refinery Pre Treatment Reforming HydroTreating BioSyncrude Heavy Residues Bio Chem Chem Gasification Gasification Raw SynGas Petro Chemistry Lurgi Technologies Sulfur Management SynGas Conditioning CO2 Trans-Esterification Fermentation H2 / CO CleanSynGas MTP Methanol Coldbox DME Fischer Tropsch Methan- ation Petro- chemicals Petrofuels Green Diesel Fuels / Gases Bio-Ethanol: Gasoline Bio-Diesel: Diesel MTBE Additives M15 M100 SNG H2 Diesel LPG Synfuel CO Product Food, Oleo- Chemicals Chemicals Chemicals Propylene Polypropylene Formaldehyde Acetic Acid etc.

World annual oil palm biomass generation from 1980 to 2005 T.L. Kelly-Yong et al. / Energy Policy 35 (2007) Biomass AvailabilityBiomass from Palm Oil Production Huge quantity and availability of oil palm related biomass: EFB, Palm Kernel Shells, Fibers, Trunks, Fronds….

1,1 t Empty Fruit Bunches 1 t Crude Palm Oil generates… 0,7 t Mesocarp Fibres 0,3 t Palm Kernel Shells 2,4 t Oil Palm Frond Leaves and Trunks Biomass AvailabilityBiomass from Palm Oil Production ...more than 4.5 tonnes of Waste Biomass* * Excludes POME and Palm Kernel Cake

BTL Plant Biomass AvailabilityBiomass from Palm Oil Production Total Waste Biomass Generation (2006): Malaysia: approx 72 million tonnes approx 9.6 million tonnes gasoline and diesel or 80 % of Malaysia‘s gasoline and diesel consumption World: 185 million tonnes

Conversion of Biomass: Challenges, ConceptsA Major Issue – Energy Density Model shows the volume of different materials which is equivalent to 1 ltr of hydrocarbon oil How to design the logistics of Large-scale plants?

Transportation Radius 25 km Oil/Slurry: 20 250 km Central syngas and fuel production Diesel: 36 Conversion of Biomass: Challenges, ConceptsDistributed Biomass Energy density [GJ/m3] Eg EFB: 1.5 Regional intermediate fuel production e.g. at Oil Palm Mills

Bioliq-Process: Joint Development by FZK *) / Lurgi and sponsored by FNR*) R Sulphur CO2 Oxygen Fischer Tropsch High Temp. Gasifi- cation Gas Cleaning Synfuels Chemicals Methanol Methanol to Fuels Fuels Decentralised Bio Syncrude Plants Centralised Synfuels Plant Plant size: 20 – 100 MW Input 35,000 – 180,000 tpa Biomass Plant size: 1,000 – 5,000 MW Input -> 9 mil tpa Biomass -> 1,2 mil tpa Synfuel Conversion of Biomass: Challenges, Concepts The Bioliq BTL Development Fast Pyrolysis Biomass EFB, Trunks... Source: FZK Storage & Transport of Bio-Oil

Straw, Hay a.o. Shredder M M Heizer Heater Sandkreislauf Sand Cycle Pyrolysis gas Cold, shredded straw hot sand ca. 500 Pyrolysis Oil Cooler Coke Slurry Slurry Pyrolysis Coke M M Source: FZK Double Screw Reactor Technology Overview & Status Pyrolysis Process of Lurgi / FZK The Lurgi flash-coker

Technology Overview & StatusResults Fast Pyrolysis Process of Lurgi / FZK - Plant Converting different types of waste Biomass to “Bio Syncrude” • Mechanically fluidized sand at 500°C (no dilution by gas), • fast transport with good radial mixing • (2 s gas retention time) • fast heat transfer, „ball milling“ effect

Technology Overview & StatusSynthetic Fuels from Biomass Pyrolysis Plant 12 t/d Fast Pyrolysis Demo Plant in Germany

Technology Overview & StatusApplications of Bio-Oil Chemicals Gasification Process heat Extraction Conversion Transport fuels etc Gas Turbine Fast Pyrolysis Electricity Liquid Engine Charcoal Heat Co-firing Pyrolysis heat Boiler Charcoal applications Sources: IEA Bioenergy: T34:2007:01

Bioliq-Process: Joint Development by FZK *) / Lurgi and sponsored by FNR*) R Sulphur CO2 Oxygen Fischer Tropsch Gasifi- cation Gas Cleaning/ Condi- tioning Synfuels Chemicals Methanol Methanol to Fuels Fuels Technology Overview & StatusThe Bioliq BTL Development Fast Pyrolysis Biomass EFB, Trunks... *) FZK = Forschungszentrum Karlsruhe FNR = Fachagentur fuer Nachwachsende Rohstoffe

Economics of Biomass to LiquidsEconomic Framework • BTL – Fuels require political support on international level (tax, mandate, etc) • CER can help to increase economics (for non-annex 1 countries) Production cost Pyrolysis gasification, FT-Synthesis Biomass Transport Biomass Harvest & Collection Mineral Oil Tax Refinery Conversion Crude Delivered (Capacity, 1 mil tpa) (Fossil) at Sources: Forschungszentrum Karlsruhe

40% - 60% Labour cost (European basis) 32 Straw 18 Transportion of straw 8 Slurry transport Fast pyroylsis Oxygen 5 18 Gasification and FT- synthesis Staff 5 12 2 Economics of Biomass to LiquidsProduction Cost Estimate Sources: Forschungszentrum Karlsruhe

Economics of Biomass to LiquidsCosts of Feedstocks USD / t USD / MMBTU Natural Gas Coal (High Caloric Value) Coal (Low Caloric Value) Straw (Germany) Oil Palm Empty Fruit Bunches (Malaysia)

Summary • Major technologies in the BTL process chain are commercially available today • Economics of BTL depend to a great extent on feedstock sourcing – Asia is predestined to utilize their rich biomass resources for BTL • A political framework, incentives and CDM are crucial for the deployment of BTL • Lurgi offer‘s the entire process chain for BTL

The Sun and Plants Deliver Enough Renewable Energy and Raw Materials for Mankind‘s Needs • Thank • You

Uwe Zwiefelhofer