Northern Hemisphere Progress in the Utilization of Wood for Biofuels

1. Madeira 2008 December 10, 2008 Lynn Wright, WrightLink Consulting, Adjunct Faculty, University of Tennessee wrightlld@gmail.com Northern Hemisphere Progress in the Utilization of Wood for Biofuels

2. Presentation Overview • US biofuels market/current ethanol production • Status of cellulosic biofuels production and technology development • Cost targets and current estimates of cellulosic biofuels costs with examples • Feedstock supply requirements, costs, new technology • Alternative advanced transportation biofuel

3. The US biofuels market is very large due to 2007 federal mandate • The Energy Independence and Security Act of 2007 Mandates : • 2008 Ethanol Production: 9 Billion Gallons • 2022 Total Biofuels Target: 36 Billion Gallons • 2022 Advanced Biofuels Target: 21 Billion Gal. • Cellulosic Biofuels target: 16 Billion Gal.

4. US ethanol production in 2008 will likely reach close to 9 billion gallons Feedstocks include: Corn starch – 99% Wheat starch Milo starch Barley starch Cheese whey Potato waste Brewery waste Wood waste* Sugar Cane Bagasse* *Two demo facilities are currently producing up to 3 mgy of cellulosic ethanol Total capacity is 11,051 million gallons per year (mgy) at 180 refineries Source: Renewable Fuels Association: www.ethanolrfa.org

5. Status of cellulosic biofuels refineries in the U S and Canada 48 cellulosic projects total;29 projects are currently receiving US or Canadian federal and state support as of December 2008 Both US and Canada have recently announced new programs to assist advanced biofuels commercialization. Source: Lynn Wright survey of biomass information sources in 2008

6. The US and Canadian governments are strongly supporting cellulosic biofuels

7. Three US Government Funded Bioenergy Research Centers are addressing Biofuels Basic Science Issues • BioEnergy Science Center: Oak Ridge National Laboratory and partners: • cell-wall deconstruction • consolidated bioprocessing microbes • poplar and switchgrass engineering • Great Lakes Bioenergy Research Center: Univ. of Wisconsin / Michigan State University and partners: • new crops (e.g. Miscanthus) • increasing plant production of starches and oils • sustainable systems • Joint BioEnergy Institute: Lawrence Berkeley National Laboratory and partners: • rice and Arabodopsis plant models • microbal-based synthesis of Biofuels

8. The Tennessee demonstration project is near my home! The feedstocks will be corn cobs, corn fiber and switchgrass grown by Tennessee farmers DuPont Danisco Cellulosic Ethanol, LLC and the University of Tennessee broke ground on October 14, 2008 for an innovative pilot scale biorefinery. Ethanol production is anticipated by end of 2009

9. Many biofuel technology processes are being used and developed

10. US has aggressive targets for biofuels price reduction by 2012 Biochemical biofuels costs and 2012 targets Based on reports Aug 2008 conference, both biochemical and thermochemical processes show similar estimated costs in $1.50 to $2.50/gallon range Some companies are already claiming new technologies with potential ethanol production price of < $1.00 per gallon Graph from US National Biofuels Action Plan published October 2008: available from www.brdisolutions.com

11. Repurposing of existing pulp mills is one approach being proposed Ponderosa Mill – Base Case Biochemical Ethanol Process Substituted Source: Phillips, Jameel & Clark (NC State University), Aug 2008, TAPPI International Bioenergy and Bioproducts Conference Presentation “Technical and Economic Analysis of Repurposing a Kraft Pulp and Paper Mill to the Production of Ethanol”

12. Ethanol production cost under best repurposing scenario was $1.90/gal All cases assume $0.30 enzyme cost Source: Phillips, Jameel & Clark (NC State University), Aug 2008, TAPPI International Bioenergy and Bioproducts Conference

13. Analysis of ethanol production in pulp mill with added thermochemical processes showed similar costs Effect on Minimum Ethanol Selling Price (MESP) = MESP $2.21 = MESP $1.89 = MESP $1.57 Feedstock cost significantly affects ethanol cost Key assumptions: total alcohol yield/dry ton ~92.5 gal (ethanol ~ 78 gal; higher alcohols ~ 14.5 gal); feedstock is bark and residue of southern pine; steam from gasifier used for pulping processes. Source: Koch et al (Georgia Institute of Technology), August 2008, TAPPI International Biomass and Bioenergy Conference.

14. Analysis of 3 cellulosic supply scenarios show ethanol imports help meet 20 BGY mandate for advanced biofuels and keep feedstock costs lower Scenario 3 Scenario 1 Scenario 2 Scenario 3 results in adequate feedstocks to meet 2022 mandate, at lowest price ~ $45 per dry ton. Inclusion of 4 Billion Gallons per year of biofuel imports reduces residue use more than energy crop production.

15. Costs and availability of forestland wood depends on source Most wood residue captured at < $30/dry ton (roadside) All types of forestland wood, is captured at < $50/dry ton (roadside) Source: Report by Biomass Research and Development Board entitled: “Increasing Feedstock Production for Biofuels”. Released Dec 2008. www.brdisolutions.com

16. Commercial hybrid poplar costs are within the ranges assumed Poplar Biomass Production Costs1 1 Growing costs reported as NPV (6.5% discount rate) per dry ton, inclusive of the cost of land rent, site preparation, planting stock, planting, and crop care through the rotation Source; Report by Jake Eaton of GreenWood Resources at Aug 2008 Short Rotation Crops Meeting

17. New planting and harvest equipment under development can significantly reduce cost GPS guided, 6 row, high-speed tree planter Whole Tree Harvester for Planted Trees Status – tested in 2007 Design improvements ongoing. • Cuts, accumulates & loads trailer • Cuts 1 tree/second w/o stopping • Field transports up to 90 tons • Travels up to 12 MPH empty • Handles large size range of trees • Size: 50 ft long, 16 ft wide, 28 ft tall • Tree injection operates by hydraulics • 6 trees injected in ground every 1.5 seconds • Optimum rate at 5ft x 5 ft spacing = 8.3 ac/hr • No. injection positions/spacing can vary Energy Performance Systems patented technology www.energyperformancesystems.com Status: prototype harvester fabrication nearly complete

18. Higher yielding tree crops will increase cost-competitive resources

19. Advanced transportation alternatives can include electricity from biomass Source: Yang and Wyman, Aug 2008, TAPPI International Biofuels &Bioenergy Conference

20. Preliminary comparison of land-use efficiencies of transportation options* Estimated Vehicle Miles Traveled (VMT) using 20 million acres of land. 120 million acres of land is currently used to produce corn grain for ethanol fuels 2 Current total vehicle miles traveled in US is 2.69 trillion * US Energy Independence and Security Act of 2007 requires consideration of indirect land-use effects Source: Draft paper by Ragland, Ostlie and Wright entitled “Electric Vehicles Compared to Ethanol-Fueled Vehicles (paper still in review as of Dec 2008)

21. Summary • N.A. cellulosic biofuels market are/will be large. Government support strong. • Many projects started/planned, one near commercial start. • Cost range of $1.00 to $2.50/gal. • Feedstocks include plantation grown wood • Feedstock and equipment engineering will reduce plantation wood costs • Biomass electric/ electric vehicle technology should be considered.

22. Obrigada! Perguntas? Ask me later about my hybrid poplar project in Minnesota