2005 OBP Bi-Annual Peer Review EERC Center for Biomass Utilization ®

1. 2005 OBP Bi-Annual Peer Review EERC Center for Biomass Utilization® Chris J. Zygarlicke Energy & Environmental Research Center University of North Dakota Integrated Biorefinery November 16, 2005

2. FY05 project start date October 2004 76% complete as of October 2005 Developing and validating technologies for future biorefineries using corn, vegetable and crop oil, agricultural residue, and perennial crop feedstocks. Addressing end-to-end process integration, risk of pioneer technology, and plant economics. Overview Barriers Time Line Stage Exploratory and Developmental Research Budget • Total project funding FY05 • DOE $491,000 • Nonfed. Cost Share $221,614 FY06 • DOE $992,000 • Nonfed. Cost Share $376,457 • FY06 Request $1,000,000 Partners • See next slide

3. Overview (cont.) – Partners • ND Soy Bean Council • Minnesota Corn Growers, South Dakota Corn Growers, and ND Corn Growers • Biomass Energy Resource Center (Vermont) • Chippewa Valley Ethanol Co. • Archer Daniels Midland Corporation • Ankur Scientific Energy Technologies • ND State Board of Agricultural Research • North Dakota (ND) Division of Community Services • Minnesota Sustainable Partnership Program • Wright-Patterson AFB • Agricultural Products Utilization Commission • United Soybean Board • Minnesota Corn Research Council • South Dakota Soybean Association • Monsanto Enviro-Chem • UND Chemical Engineering Dept. • ENSYN Inc.

4. “Seed” activities or projects that consist of lower-cost, high-risk applied fundamental research Commercial partners get involved on the ground floor of idea development, leading to larger pilot-scale development with stronger partner or consortium support Partner-driven pilot-scale validation leading to commercial demonstration/implementation. Ethanol processing for hydrogen production Vegetable oil catalytic cracking for cold-flow improvement of diesel–biodiesel blends Utilization of low-cost biodiesel feedstocks Biomass gasification for distributed power Cuphea oil for biodiesel production Urea fertilizer process integrated with corn ethanol plant Chemical feedstocks from lignocellulose pyrolysis bio-oil EERC CBU Approach EERC Approach FY05 and FY06 EERC CBU Research Activities

5. Project Goals and Objectives • To develop and promote the use of biomass for production of biopower, biofuels, and bioproducts • Congressionally directed funds for a center for applied fundamental research • Not just one research topic • Education, training, and information dissemination

6. EERC CBU® Activities Highlighted • Innovative catalytic process for utilization of lower-cost biodiesel feedstocks • Improved cold-flow biodiesel • Biomass gasification for distributed power generation

7. Lower-Cost Biodiesel Feedstocks Why are we concerned with unrefined high- FFA feedstocks? • Ability to utilize lower-cost crude vegetable oils and soapstocks. • Opportunity for 25% cost reduction in biodesiel feedstock • Low value primarily sold as feed additive • Plentiful and difficult to process because free fatty acids promote water formation • Supports OBP highest-priority area of petrochemical replacement with biomass-derived fuels Bob Allan Warren Gretz

8. Lower-Cost Biodiesel Feedstocks Project Objective • Develop technologies to utilize lower-cost unrefined vegetable oil feedstocks to reduce cost of biodiesel production Results • Process effected 100% conversion of crude soybean oil feedstock to methyl esters • Developed conversion process that uses a proprietary solid acid catalyst Challenges to Be Met • Operate in continuous-process mode at short residence time • Utilize lower required molar ratio of alkylating agent to fatty acid • Operate at low temperature and pressure

9. Lower-Cost Biodiesel Feedstocks Catalyst Development • Solid acid catalysts • Homogeneous catalysts • Install on support sufficiently tight to prohibit solubilization in oil or ester • Utilize catalyst chemistry to prevent reverse esterification

10. Lower-Cost Biodiesel Feedstocks Catalyst Development Results Crude soybean oil feedstock; 28:1 MeOH:fatty acid molar ratio (4:1 volume ratio); 10 wt% catalyst (oil basis); 300-mL Parr reactor with magnetic stir bar

11. Lower-Cost Biodiesel Feedstocks Catalyst DevelopmentTargets Challenges to Be Met • Optimize catalyst configuration • Reduce MeOH:fatty acid molar ratio to 7:1 from current 28:1 • Reduce residence time to 1 hour from current 4 hours • Keep reaction temperature at or below 150°C

12. Improved Cold-Flow Biodiesel Why are we concerned with cold flow for biodiesel? • Improved cold flow will enable biodiesel to access large winter auto and truck diesel fuel markets. • Cold flow @ -50°C will enable blending with jet fuel for airport emissions reduction. • Supports OBP highest-priority area of petrochemical replacement with biomass- derived fuels and Task 5.4 Oils Production and Utilization

13. Improved Cold-Flow Biodiesel Project Objectives • Utilize catalytic cracking to produce a vegetable oil-based fuel with improved cold-flow performance Results • Conducted preliminary thermal cracking experiments with soybean oil and SME • Used existing batch autoclave reactor • Achieved marginal yields of JP-8-compatible material—demonstrates need for catalytic cracking Challenges to Be Met • Optimize process for production of fuel with carbon chain length similar to that of No. 1 diesel and JP-8 • Operate in continuous process mode • Effect cracking at olefinic bonds to improve resulting fuel stability • Utilize lower-cost unrefined vegetable oils versus methyl esters

14. Improved Cold-Flow Biodiesel Current biodiesel unacceptable for blending with jet fuels

15. Improved Cold-Flow Biodiesel Results Cracked biodiesel produces a product very similar to JP-8. JP-8 and Biodiesel Early Production Run EERC Cracked Biodiesel

16. Biomass Gasification for Distributed Generation Why are we concerned with small-scale biomass gasification? • Fits DOE OBP goals of biomass syngas for electricity and potentially other products • Qualifies under federal or state renewable energy programs • Reduces greenhouse gas emissions • Eventual attractive ROI (5–10 years) • Waste utilization for energy • Green electricity and heat • Lower pollutant emissions • No boiler license requirement • Economic residue disposal • Portable technology can address fuel transportation cost issues

17. 72 hours of continuous testing on wood chips and sawdust (25% moisture) Average dry gas, 198 scfm 68.4 efficiency Particulates, 42.5 mg/Mm3 Tars, 200–500 mg/Nm3 80% substitution of diesel fuel load ~ 100 hp Automation of gasifier operation and solids and liquids handling Condensate disposal and water cleanup Process development to improve efficiency Increased fuel flexiblity (ag-residues) Addressing It-B Commercial-Scale Demonstration and It-E Sensor and Controls Biomass Gasification for Distributed Generation Results Remaining Technical Barriers

18. Biomass Gasification for Distributed Generation Syngas Composition and Heating Value for Selected Feedstocks

19. Overall Project Strategic Fit • Research activities within the EERC CBU support the Integrated Biorefinery platform specifically in: • Developing technologies for producing fuels, chemicals, and power, as related to biorefinery operations by 2012. • High-risk applied research that could help U.S. industry establish large-scale biorefineries based on agricultural residues or commodity seed oils by 2018. • Biomass gasification technology being developed for commercially competitive electricity generation could be adapted to produce syngas at $3.84 per millon Btu by 2030 from lignin or wood. • Company fit: • The EERC has been performing thermochemical conversion of carbon for over 50 years. • Laboratory infrastructure and project experience for converting complex organic structures in coal and biomass into marketable chemical feedstocks has been ongoing at the EERC for over 30 years • USDA-funded National Alternative Fuels Laboratory® at the EERC has focused on biobased and renewable fuels, products, and process technologies since 1991. • Situated in heart of the Red River Valley and the breadbasket of the northern Great Plains, the EERC has learned to collaborate with agricultural industries, grower groups, and related agencies.

20. Milestones – Go/No-Go Decision Lower-Cost Biodiesel Feedstocks • Finish lab-scale optimization February 2006 • Pilot-scale process demonstration June 2006 • Go/no-go decision – Are projected commercial- scale costs below current conventional biodiesel production costs? Improved Cold-Flow Biodiesel • Finish vegetable oil cracking February 2006 • Combustion testing – Wright Patterson AFB March 2006 • Go/no-go decision – Did engine testing establish acceptable performance and emissions at a 20% blend with JP-8? Biomass Gasification for Distributed Power • Adequate control of tars in water March 2006 • Gasifier automated controls developed June 2006 • Commercial demonstration being negotiated July 2006

21. Project Collaboration • The EERC CBU has had over 40 industrial and commercial partners over the last 5 years collaborating on projects. • The EERC sponsors an annual Renewable Energy Conference to disseminate information and interface with interested parties. • Through DOE funding, the EERC has published/presented 16 papers over the last two years. • Collaboration with: • University of North Dakota Chemical Engineering Department, Dr. Wayne Seames and Dr. Michael Mann • Wright Patterson Air Force Base – principle investigator Dr. Edwin Corporan • Montana State University -- Dr. Alice Pilgeram, Director of the Biobased Products Institute, Dr. Chengci Chen and Dr. Duane Johnson (lignocellulosics to biochemicals at MSU). • Mr. Bruce Miller, Energy Institute, Pennsylvania State University • North Dakota Department of Commerce Division of Community Services, Mr. Kim Christianson • Purdue University, Dr. Klein Ileligi, Agricultural & Biological Engineering • University of Minnesota, Dr. Douglas Tiffany, Research Fellow, Department of Applied Economics

22. Market and Customers Low-Cost Biodiesel Feedstocks • Seed oil-manufacturing and crushing plants • Biodiesel producers Improved Cold-Flow Biodiesel • Biodiesel producers and fuel distributors • Automotive, farm implement, and grower groups • U.S. motorists Biomass Gasification for Distributed Power • Industrial plants with low-cost biomass resource (i.e., waste wood) • Power producers and utilities • Ethanol plants

23. Competitive Advantage Duration of opportunity window? • The projects being investigated at the EERC have both near- and far-term opportunities as a result of risks associated with national security and ever-increasing costs of petroleum, petroleum products, and energy production. Competing technology? • Petroleum industry and coal-based power generation. Why is this a better approach? • The use of renewable fuels offers the advantage of near-zero greenhouse gas production and increased national security. What could dramatically alter the market? • Dramatic decreases in costs of lignocellulosic material conversion to transportation fuel. • Huge leaps forward in the efficiency and cost of power production.

24. Project Stage • EERC CBU activities are in the detailed investigation and development stages. Biomass gasification system needs more turnkey control and automated systems; bioproducts from seed oil residues and lignocellulosics need further development and then will proceed from lab to pilot-scale testing. ICFD LCBF BGDP Improved Cold-Flow Biodiesel = ICFD Lower-Cost Biodiesel Feedstocks = LCBF Biomass Gasification for Distributed Power = BGDP

25. Progress and Accomplishments • Addressed in Results and Challenges to Be Met sections of project descriptions

26. Future Work • Lower-Cost Biodiesel Feedstocks • Optimize catalyst efficiency and durability, and evaluate process with variety of economically attractive feedstocks • Optimize and commercialize EERC-developed catalytic processes for conversion of biodiesel coproduct glycerol to high-cetane diesel fuel additives and high-octane gasoline additives • Improved Cold-Flow Biodiesel • Evaluate and develop product options for non-fuel-quality material yielded from catalytic cracking process • Conduct fuel evaluation and optimization work in recently purchased and soon-to-be-installed microturbine system • Industrial-scale biomass gasifier • Develop biomass-processing and feeding methods for nonwood resources, possibly including straws, corn stover, switchgrass, sunflower hulls, and agri-residue pellets (2006). • Design automated and sensor-instrumented controls for feed automation, gas cleaning, fuel drying, charcoal handling, and condensate (tars) disposal (2006–2007).

27. Project Management Overall Project Manager: Chris J. Zygarlicke • Maintains clear lines of accountability and responsibility through regular meetings with principal investigators • Ensures project quality and performance • Maintains reporting requirements to DOE OBP • Communicates with DOE OBP to keep projects within OBP target research goals and objectives • Individual activity principal investigators • Ted Aulich, Edwin Olson, Darren Schmidt, Chad Wocken, and Wayne Seames. • Carry out day-to-day research on specific activities or subprojects within the EERC CBU • Develop cooperative partnerships to leverage DOE investment • Publish DOE reports and papers and present results at international conferences and meetings