Biomass Conversion to Liquid Fuel- An R&D Opportunity

1. Biomass Conversion to Liquid Fuel- An R&D Opportunity Presentation to: Auburn University Conference on Alternative Energy Solutions 24 October 2006 Reference: E3100

2. Clean Energy Market Drivers Drive for Energy Independence Fuel Prices Rising / Volatile Markets Valuing Environment Biomass Conversion Advances Biomass_ConversionOct2406.ppt

3. Sustainable Clean Tech Situation is ripe for R&D The situation today makes Biomass Conversion a very attractive alternative that many are pursuing aggressively… Today 5-10 Years Ago Bad experience of OEMs and electric utilities in introducing electric vehicles in the 1990s Policymaker exuberance for Ethanol and industry interest in Biomass Relatively low fuel prices (<$1.00/gal) and low incentives for alternatives $50-70/bbl oil is viewed as being here to stay; $6-8/MMBtu biomass fuels can compete Lack of biomass conversion technology with needed reliability, feedstock tolerance and cost Gasifier and GTL technologies developed for coal applications migrating to biomass Regulatory and policy environment that favored cost reduction for competitiveness National priority to rapidly reduce petroleum dependence and reduce greenhouse gas emissions Biomass_ConversionOct2406.ppt

4. Sustainable Clean Tech GTL at TIAX Efficiency & Emissions Novel Energy Technologies Improved Energy Storage Solutions Hydrogen Economy MicroPower Gas-to-Liquids is one of a number of energy technologies that TIAX is developing • Lithium-Ion Cathode • SOFC Interconnects • P/HEVs • Integrated energy systems/ Micro-CHP • BioMass, GTL-in-a-CanTM • Cell Balancing Systems • CO2 Refrigeration • Battery Safety • Stirling Generator • Appliance efficiency • Hydrogen Storage • Improved IC Engines • Truck Fleet Compliance Tools Biomass_ConversionOct2406.ppt

5. Gas-to-Liquids Step One The complex carbohydrates in agricultural waste, industrial food waste and forest products can be converted to feed a gas-to-liquid (GTL) process. Air, heat & water Gases to Fischer-Tropsch process: H2, CO, CO2, CH4, C2H2, C2H4 Pyrolysis Or Gasification Biomass feedstock Ash, Char & liquids Biomass_ConversionOct2406.ppt

6. GTL Step Two GTL technology converts simple carbon-, hydrogen-, and oxygen containing molecules to hydrocarbons (fuels) through a three step process. Feedstocks Process Steps Products Power LPG Simple Molecules Syngas Production Syngas Conversion Product Upgrading Naphtha Kerosene Oxidant Diesel Wax Lubes Chemicals The Fischer-Tropsch synthesis has been used for >80 years Biomass_ConversionOct2406.ppt

7. GTL Conventional Wisdom To date, GTL plants have been constructed as “stick-built” plants, i.e., as conventional chemical process facilities. These plants are complex and highly efficient in order to extract maximum economic value from a valuable resource. Syntroleum pilot facility, 70 bpd(from http://www.syntroleum.com/images/DoE%20Dedication/) Panorama of Shell’s Bintulu plant, 20,000 bpd(from http://www.arb.ca.gov/fuels/diesel/altdiesel/r_davies.pdf) Biomass_ConversionOct2406.ppt

8. Compact GTL Overview of Proposed Project TIAX proposes to demonstrate a Compact GTL process designed to produce synthetic diesel fuel while reducing purchased gas and electricity. Adaptable to an industrial site which is already receiving biomass: • Relatively low cost addition to existing site (not a complete “bio-refinery”) • Compact GTL at 100 – 500 TPD plus gasifier has a much smaller footprint than a conventional GTL facility Builds on existing technologies and partners • By integrating known technologies • By collaborating with a gasifier supplier and local industry Benefits to the site and the nation • Reduces fuel and electricity budget at the site • Makes site competitive and thereby saves jobs • Synthetic diesel fuel produced, benefiting the nation • Greenhouse gas benefit plus energy security (lowers oil imports) Biomass_ConversionOct2406.ppt

9. Fuel Gas Compact GTL Compact GTL is a single pressurized enclosure that incorporates Fischer-Tropsch synthesis, product separation and upgrading. Site Energy Needs Sulfur Removal Preheat Compressor Syngas from Gasifier One-pass- Fixed bed FTR HYD Final Product Separator Operationsinside Enclosure Naphtha Synthetic Diesel Biomass or LFG Hydrogen Separation water Biomass_ConversionOct2406.ppt

10. GTL/BTL What an R&D Project must Demonstrate That small scale fuel processing can be accomplished despite the complexities of the Fischer-Tropsch reaction Typical FT reactors are equipped with tall tube bundles to remove heat and give long residence time. To scale down the height from 40,000 BPD to 200 BPD or lower requires novel heat exchange. FT catalysts convert hydrogen and CO to a wide distribution of hydrocarbons Feed is very pure H2 and CO at the correct ratio (~2.1:1) Immersed HX in a bed is one approach. The bed must be equipped to remove heat effectively since the overall reaction is very exothermic. Composition of the stream changes dramatically through the reactor Novel reactors exist. Product slate depends sensitively on temperature. Biomass_ConversionOct2406.ppt

11. GTL/BTL Suggested Phase 1 Tasks An R&D Project over two years at 5-10 tons per day could address specific goals Task Objective Needed support 1 Test novel F-T reactor configurations to allow compact packaging Bench scale experiments 2 Design/Build an instrumented pilot FT facility (or adapt an existing one) Best practices from existing pilot plants 3 Operate FT Pilot facility to demonstrate feasibility of producing synfuels Syngas availability, disposal of products 4 Develop adequate clean up and preconditioning for FT incl. sulfur removal Refinery experience 5 Demonstrate pilot gasifier on realistic biomass feedstocks to produce syngas suitable for GTL Feedstocks; Balance of Plant 6 Characterize byproducts and devise utilization strategies incl. experiments Chemical Analysis Instrumentation 7 Use Test data and analyses to design the pre-commercial plant and its estimated cost Design work by A&E Biomass_ConversionOct2406.ppt

12. GTL R&D OpportunitiesChallenges ahead “Normal” commercialization challenges must be addressed following R&D • Which specific kinds of biomass feedstocks are attractive? • What are the barriers holding back adoption? Process efficiency? Feedstock availability, exhaust pollution, excess cost, reliability, lack of customers for product? • If barriers can be overcome, what specific site will host the first field test? • What is the value chain for the host site and how does each participant benefit? (Conversion technology provider, systems engineer, feedstock provider, owner/operator, customer for product, government) • What are the preferred conversion technologies? Which technologies are rapidly evolving and might emerge as winners? Biomass_ConversionOct2406.ppt

13. Feasibility Application “Looks Like, Works Like & Made Like” Prototypes “Looks Like, Works Like” Prototypes Feasibility Application “Works Like” Prototypes Reach of Research Reach of Companies Feasibility Application End Start Sustainable Clean Tech Prototype “Pinch Point” A key is to identify, adapt and synthesize technology platforms in demonstrable “prototypes” - enabling rapid commercialization in several applications: Ideas & Technologies Market Impact Implementation Challenge Prototype “Pinch Point” Biomass_ConversionOct2406.ppt

14. Sustainable Biomass New England and the Southeast While we may not have California sunshine or Texas crude, we do have the most valuable resource for economically sustainable “Clean Tech” business growth… Brainpower • … Let’s not waste it! • Speed-to-market is critical • Get to “prototypes” fast • Focus on platforms that can demonstrate value • Do what you do best, collaborating is critical to accessing the needed technologies and infrastructure Biomass_ConversionOct2406.ppt