MAHA Global and IPR: Do Actions Speak Louder Than Words?
Platts & ERTC presentation
1. Direct Production of Gasoline and Diesel from
Biomass using Catalytic Hydropyrolysis or
Integrated Hydropyrolysis and Hydroconversion
(IH2)
Celeste McLeod, Alan Del Paggio, Lawrence Kraus
CRI Catalyst Company, Houston, Texas, United States
Terry Marker, Larry Felix, Martin Linck, Michael Roberts
Gas Technology Institute, Des Plaines, Illinois, United States
11/15/2011 1
2. Disclaimer
The information contained in this material is intended to be general in nature
and must not be relied on as specific advice in connection with any decisions
you may make. None of CRI/Criterion Inc or any of its affiliated companies are
liable for any action you may take as a result of you relying on such material or
for any loss or damage suffered by you as a result of you taking this action.
Furthermore, these materials do not in any way constitute an offer to provide
specific products or services. Some products or services may not be available
in certain countries or political subdivisions thereof.
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3. Points Covered
• IH2 – A path to “drop in” cellulosic hydrocarbon fuels & blend stocks
• Economic value derived from integration with existing operations
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4. IH2 Design Principles
• Produce fungible cellulosic hydrocarbon fuel/blend stock from a broad range
of inedible/residual biomass feed at low cost
• Requires no infrastructure other than road/rail transport into and out of the
production site
• Have minimal unsustainable impact on the surrounding environment
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5. IH2 Design Elements
• Feed Conditioning Unit:
– Sized, mixed and dried to moisture contents between 10-45wt%
• Hydropyrolysis Reactor (bubbling fluidized bed)
– Biomass meets catalyst and H2 at ~400C to remove >90% oxygen
• Hydrogen Manufacturing Unit (HMU)
– Converts C3- gases to renewable H2 sufficient to meet all requirements
• Hydroconversion Reactor (low pressure fixed bed HT)
– 1st stage product „polished‟ over a second catalyst system
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6. IH2 Advantages & Eleven Key Differentiators
Advantages Green CO2
Stand Alone or Synergistic Operation Light Gases 3) Renewable H2
Feedstock Flexible Wood/Forest
Hi Press
Residue
Steam
Differentiators HDO‟d Liquid
Exothermic Ag Residue
Cellulosic
Low Capital (low pressure, low TAN, simple) Hydrocarbon
Product
Low Operating costs Gasoline, Jet
and Diesel
Hydrocarbon Yields 80-160 gal/ton MAF Garbage (MSW)
2) Bubbling Fluidized Bed
Proprietary Catalyst
4) Fixed Bed
Hydrotreater Range
Self-sufficient internal “green” H2 Renewable H2 Proprietary Catalyst
Hot Water
Hydrocarbon
340-470C Renewable H2
>90% Green House Gas reduction <500psig <500psig
Energy Crops
Eases logistical constraints (H2)
High BTU HC (blend stock & ‘drop in’) N/S stream
for Fertilizer
Replaces ‘whole barrel’ gas/jet/diesel Algae
Fungible in Fuel Pool Hydropyrolysis Hydroconversion
Attractive economics Char (burn)
Integrating existing technologies 1) Feed Conditioning
Sizing , Drying & Feeding
Rapid implementation
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7. IH2 Raw Liquid Products
Hydrocarbon
Hydrocarbon
Water Water
Wood Lemna
1stStage CRI-4211 CRI-4221
2nd Stage CRI-4212 CRI-4212
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10. IH2 Synergy - Pulp & Paper / Forest Products
Green CO2
Light Gases 3) Renewable H2
Consumes various feeds Wood/Forest
Residue Hi Press
slash Steam
round wood HDO‟d Liquid
chips Ag Residue
saw dust Cellulosic
Hydrocarbon
mill sludges Product
Gasoline, Jet
mixed feeds Garbage (MSW)
2) Bubbling Fluidized Bed 4) Fixed Bed and Diesel
Proprietary Catalyst Hydrotreater Range
Renewable H2 Proprietary Catalyst Hydrocarbon
Hot Water
Improved site margins 340-470C
<500psig
Renewable H2
<500psig
conversion of low cost feeds Energy Crops
land fill/other cost avoidance N/S stream
for Fertilizer
export HP steam to mill Algae
liquid hydrocarbon for sale or use Hydropyrolysis Hydroconversion
Char (burn)
1) Feed Conditioning
Sizing , Drying & Feeding
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11. IH2 Synergy - Ethanol Plants
Green CO2
Consumes cellulosic residues
bagasse Light Gases 3) Renewable H2
stover Wood/Forest
Hi Press
Residue
mixed feeds Steam
HDO‟d Liquid
Improved site margins Ag Residue
Cellulosic
conversion of low cost feeds Hydrocarbon
Product
higher value use of cellulose Gasoline, Jet
export steam offsets use of cellulose Garbage (MSW)
2) Bubbling Fluidized Bed
Proprietary Catalyst
4) Fixed Bed
Hydrotreater
and Diesel
Range
prevent market surplus DDGS Renewable H2 Proprietary Catalyst
Hot Water
Hydrocarbon
340-470C Renewable H2
provides liquid fertilizer for use <500psig <500psig
Energy Crops
cellulosic hydrocarbon for sale or use
N/S stream
for Fertilizer
Reduces site average C.I. of alcohol made Algae
Hydropyrolysis Hydroconversion
Corn ethanol averages 19% reduction
Char (burn)
Cane ethanol averages 78% reduction 1) Feed Conditioning
Sizing , Drying & Feeding
IH2 derived fuels have ~93% reduction*
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12. IH2 Synergy - Multiple Algae Scenarios
Green CO2
Consume post extractive residue Light Gases 3) Renewable H2
protein extraction (food & fuel) Wood/Forest
Residue Hi Press
lipid extraction (energy crop) Steam
HDO‟d Liquid
Consume whole algae Ag Residue
Cellulosic
Useful for remediation Hydrocarbon
Product
Useful to simplify process for fuel Gasoline, Jet
with mixed cellulosic/wood feeds Garbage (MSW)
2) Bubbling Fluidized Bed 4) Fixed Bed and Diesel
Range
Proprietary Catalyst Hydrotreater
Renewable H2 Proprietary Catalyst Hydrocarbon
340-470C Renewable H2 Hot Water
Improved site margins <500psig <500psig
conversion of low cost feeds Energy Crops
export HP steam N/S stream
for Fertilizer
re-use of CO2/liquid fertilizer Algae
use of low grade heat to ponds Hydropyrolysis Hydroconversion
liquid hydrocarbon for sale or use
Char (burn)
1) Feed Conditioning
Sizing , Drying & Feeding
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13. IH2 Synergy - Refining
Option 1: Full Standalone
Location Flexibility, Minimum Environmental Impact
Maximum GHG reduction
Lowest CI product
Highest Capital Cost
Option 2: Integrated with Refinery HT
Minimum Environmental Impact
Lowest CI product
Maximum GHG reduction
Lower Capital Cost
Option 3 Integrated with Refinery H2
Higher Environmental Impact
Reduced GHG reduction
Higher CI product
Lowest Cost
Capital 25-30% lower than base case
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14. IH2 Integrated w/ Refinery Capex/Opex Advantaged
• Stand Alone – NREL Minimum Selling Price (MSP) $1.60/gal (2007 USD)
– Green field economics
– 2000 t/d wood based process
• Refinery Synergy
– Use existing hydrotreater
• Reduces Capital Cost ~3.3MM$
• Estimated MSP $1.59/gal (2007 USD)
– Use existing hydrotreater & Refinery H2
• Reduces Capital Cost ~47.4MM$
• Estimated MSP $1.36/gal (2007 USD)
• NREL Economics Validated by major American Engineering Company
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15. IH2 Conclusions
• IH2 uses virtually any (ligno)cellulosic biomass to produce hydrocarbon
fuels/blend stock at low cost
• IH2 offers Stand Alone & Synergistic Installation
• IH2 Synergistic Installation has benefits beyond solely hydrocarbon
production, which varies by industry
• IH2 Refinery Synergy can reduce capital cost and fuel MSP
• Fuel MSP may further decrease based on feed selection and site
requirements
• Fuel MSP at current estimate of 1.60$/gal is typically less than bulk and rack
pricing for regular/premium gasoline. Additional upside.
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No large corporation is without its lawyers. Here is a short disclaimer which advises you not to run out and buy corporate stock solely on the basis of what I say here today
I intend to cover only two points in the discussion today. First, introduce you to IH2 as a cost effective route to convert biomass into cellulosic hydrocarbon fuels and secondly, perhaps even more importantly, a strategy to combine IH2 operations with a variety of biomass handling operations to extract economic synergies and thus further increase the value derived from this exciting technology
‘Require no infrastructure’ is the key point here. For a greenfield construction site the design principle provides maximum flexibility with respect to choice of location. It does come with a higher capital cost, however, it appears to be lower than each of the competitive all in prices we have found for finished renewable hydrocarbons.‘Minimal unsustainable impact’ indicates IH2 is intended to use as much closed loop recycle as possible. The exceptions are the export of thermal and chemical energy and emission of CO2 derived from biomass conversion.
*Original analysis did not allow for direct oxygen measurement The Oxygen content was therefore determined by difference, which does not allow for reporting accuracy below 1-wt%.
I won’t have time to talk about MSW
Entire IH2 process operating within the Pulp and Paper Mill, consuming materials not sent to the rest of the process, tops, stumps, chips, bark, mill residueExport steam Energy for Paper Machine, Power Generation
In the case of corn ethanol, as the ethanol industry expands there could be an excess of distiller’s dried grains with solubles, which contributes up to 0.10$/Liter Ethanol produced. Primary outlet for this material is livestock-feed (2007) - If the market becomes saturated this 0.10$/L which is key to ethanol processing economic viability is jeopardized. Excess DDGS could potentially be fed w/stover to increase hydrocarbon production and gain higher value product distribution.http://nabc.cals.cornell.edu/pubs/nabc_19/NABC19_5Plenary2_Rosenstrater.pdfhttp://www1.eere.energy.gov/biomass/ethanol_myths_facts.htmlEthanol Myths and FactsGraph – Source Wang, et al, Environmental Research Letters, Vol.2, 024001, May 22, 2007C.I. - Carbon IntensityCarbon Footprint Analysis of IH2 Biofuels: Corn Stover Feedstock from Cargill Company - David Shonnard1, et al Michigan Technological UniversityEOR – Enhanced Oil Recovery Cane Ethanol has high GHG reduction because bagasse used as fuel to the ethanol production process. Using Bagasse as IH2 feed would be an economic/GHG reduction analysis and would presume that an alternative biodervied fuel was available to replace the bagasse used as fuel currently.
Consumes extraction residue or whole harvest – 2 Scenarios Food & Fuel – Petro Algae Environmental Remediation – Aquaflow Provides significant export high pressure steam Algal Biomass growth – Food & Fuel PA example they could use steam to hold Rx’s at temperatureEnergy Export – Environmental Remediation – Don’t need to facilitate Algae growth, use steam for export energy Provides CO2 and NH3 / (NH4)2SO4 fertilizer concentrateProvides recession-resistant revenue from high quality ‘drop-in’ fuels or blend stocks
Stand Alone or,Reduced capital cost optionsExisting hydrogen supplyIdled assets or Rx’s that could be suitable for Second Stage Facilities have existing storage / distribution network for liquid hydrocarbonsProvides Refiners with control to assure their supply of renewable fuel to meet mandate “License to operate”RFS-2 “each producer and importer of gasoline and diesel determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel,” according to EPA. Case could be made that the light ends from IH2 still end up being green moles of H2 because they came from a green source, but whether that would be “allowed” or could be counted/metered is debatable at this stage.
Case by case basis. Rate of Return 10% used for NREL economicsFeed cost 72$/Ton dry basis (10% moisture) as deliveredCapital Cost NREL 234-Million $, 70-Million gallons/yr, 2000-ton/day
