Post on 18-Jun-2020
NOVOZYMES PRESENTATION
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06/11/2007
Advancing cellulosic ethanol
ExcoExco 60 Workshop (IEA)60 Workshop (IEA)
Alain DestexheAlain Destexhe
Customer Solution ManagerCustomer Solution Manager
Munich, October 30th, 2007Munich, October 30th, 2007
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The fundamentals
The industrial revolution has been very successful in providing us with incredible amounts of goods
But it has in many places been at great costs to nature and our natural resource base
There is a need for accelerated economic growth to meet the needs of a growing world population
– but with less impact on nature
...so we need to find ways to produce more – with less
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Decoupling from economic growth
Time
Use of natural resources
Economic growth
Enzymaticsolutions
Used in production they can increase the efficiency and yield of a wide range of processes in our society
Enzymes are efficient biological catalysts found in all living organisms
With enzymes we can “produce more with less” and contribute to the decoupling of economic growth and the use of natural resources
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Enzymes are used to produce many of the products we use in our daily lives
Enzymes normally:
- Reduce energy & water consumption- Reduce the need for harsh chemicals- Reduce the amount of by-products- Improve yields
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CO2 cost producing 1 kg enzyme:
plus 1–10 kg
We lead the way in finding sustainable solutions for forward-thinking companies- Environmental impact comparisons
CO2 reduction using 1 kg enzyme in different industries:
Minus
Paper
Up to-600 kg
Leather
-40 kg
Food
-200 kg
Oils & fats
-1,300 kgCereal
-3,800 kg
Textiles
-100 kg
Biocatalysis
-3,400 kg
Biofuel
-150 kg
Detergent
-150 kg
Animal feed
-30 kg
MINUS
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Undisputed world leader in industrial enzymes
Turnover by region 2006
BASF4%
Danisco20%
Novozymes46%
Others24%
DSM6%
Total market value 2006: DKK 15 billion
Source: Novozymes’estimate 2006
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Novozymes - brief introduction
§ World leader in industrial enzymes & microorganisms
§ Enzymes account for 95% of turnover
§ Market leader in all main industries
§ More than 600 products sold in 130 countries in 40 different industries
§ ~13% of sales invested in R&D
§ More than 5,000 granted or pending patents
§ Main production in USA, China, and Denmark
§ Sales USD ~1.2bn (FY2006)
§ Strong profitability (19.7% FY2006) and solid generation of cash flow
§ More than 4,500 employees
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Novozymes and the biofuels area
§ 20–25% growth over next 3–4 years
§ Largest supplier of enzymes to the fuel ethanol industry
§ Mainly a US business but Europe & Asia nicely growing from lower levels
§ RSH-process, reduces energy need, and improves yields from corn-based production
§ Collaborations in biomass with industry leaders:
§ POET (formerly Broin) in the US
§ COFCO in China
§ Abengoa in Europe and US
§ CTC in Brazil
§ Cellulosic ethanol still 4 years down the road
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Growth of Bioethanol: NZ ViewGrowth of Bioethanol: NZ View
Source:
Fuel Ethanol growth will be dominated by
sugarcane and starch through 2020.
Biomass takes over as starch and sugar become
expensive and scarce.
Unless a breakthrough happens…
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Municipal wasteNewsprint, office paper
Agricultural residuescorn stover, bagasse, rice straw,
energy crops
Tree residuesmill discard, urban trimming
Industrial wastepaper sludge, spent grainsCellulosic
ethanol
Pre-treatmentPhysical/chemical disruption, size reduction,
hemicellulose, lignin depolymerization
Cellulose Hemicellulose Lignin
Enzyme hydrolysis Enzyme or acid hydrolysis
Glucose Pentose sugars
Ethanol, 1,4 diacids, PLA etc.
Ethanol, 1,4 diacids, etc.
Chemical feedstockor energy
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oo SelectionSelection--collectioncollection--storagestorage
oo Broad spectrum of Broad spectrum of viable optionsviable optionsoo Infrastructure Infrastructure requiredrequiredoo Ease of preEase of pre--treatmenttreatment
Critical cost factors:Critical cost factors:àà Collection costCollection cost
àà (Density)(Density)
Feedstock Pre-treatment Enzymehydrolysis
Productsco-products
Fermentation
oo Physical disruptionPhysical disruption
oo ThermoThermo--chemical chemical
oo Many candidatesMany candidates--no clear winnerno clear winner
oo Toxicity of byToxicity of by--products to products to hydrolysis hydrolysis /fermentation/fermentation
Critical cost factors:Critical cost factors:
àà Capital costCapital cost
àà DigestibilityDigestibility
àà Yield of C5 sugarsYield of C5 sugars
àà FermentabilityFermentability
~ USD 0.13~ USD 0.13–0.18/Gal (NREL 0.18/Gal (NREL process economic process economic model/metric) model/metric) **
oo CoCo--location location requirement? requirement?
oo Major capital Major capital investment investment requiredrequired
oo Hydrolysate Hydrolysate tolerancetolerance
Critical cost Critical cost factors:factors:
àà Enzyme loadingEnzyme loading
àà Enzyme priceEnzyme price
oo C6 & C5 C6 & C5 conversionconversion
oo Hydrolysate Hydrolysate tolerancetolerance
Critical cost factors:Critical cost factors:
àà Ethanol yieldEthanol yield
Critical cost factors:Critical cost factors:àà ConcentrationConcentrationàà PurityPurityàà ValueValue
Many challenges remain to be solved Many challenges remain to be solved –– integration!integration!
* NZ estimates = $0.47-0.93/gal
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-$1.00
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
Starch* Cellulose 1999 Cellulose 2005
EnzymeFeedstockVariable Operating CostsLabor, Supplies and OverheadDepreciationCo-productsTotal
Enzyme cost no longer dominates the picture
- Cost comparison after the BioEnergy Project: grain versus biomass in USD/gallon ethanol, April, 2005*
*Modified from “Determining the Cost of Producing Ethanol from Corn Starch and Lignocellulosic Feedstocks”, NREL/TP-580-28893 joint USDA, NREL study released in October 2000.
Major cost reduction in enzyme cost
Estimate for Nth-plant production, current cost based on lab-scale is USD 3–4/gal
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Novozymes’ R&D in cellulosic ethanol
DOE/NREL/Novozymes 2001–2004
§ Enzyme cost reduction on NREL acid pre-treated stover
§ USD 17.8 million grant
§ Announced 30-fold cost reduction based on enzyme improvements and process development
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Ethanol Production:Ethanol Production:Technology EvolutionTechnology Evolution
Raw material Production process
Sugarcane Extraction Fermentation
Corn, wheat,rice, rye Milling FermentationCooking
Corn1-step(RSH)
Milling Fermentation
Residues= Feed
Residues= Feed
BIO
ETH
AN
OL
Waste/cellulosicBiomass
Collection FermentationPretreatment
Residues= steam gen.
1. generation
1. generation
1. generation
2. generation
Residues= steam gen.
Enzymes
Enzymes
Enzymes
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1st generation bioethanol versus 2nd generation bioethanol1st generation bioethanol versus 2nd generation bioethanol
§ 2nd generation bioethanol will prove to be a very attractive replacement for gasoline for both economic and environmental reasons*
§ The 1st generation bioethanol market must be established in order to facilitate (logistics, filling stations, etc.) the transition towards 2nd generation bioethanol
§ Novozymes is committed to be the innovation engine in both 1st and 2nd generation bioethanol production with selected partners
*JRC/Concave/Eucar ”Well-to-Wheel”( 2005)
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Enzyme improvement
Hydrolysis 50g Lot 3 NREL PCS hydrolysis ~168 hr
0
10
20
30
40
50
60
70
80
90
100
110
0.0 0.2 0.4 0.6 0.8 1.0
Relative Enzyme loading
Co
nve
rsio
n (
per
cen
t)
NS50052
NS50031
Celluclast:NZ188
Celluclast:NZ188, 38ºC~ 6X
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The total process view-- Developments in one area can impact other areas --
Enzyme dose
Enzyme cost
Sugar cost
Solids level
EtOH level
Viscosity Recovery cost
Biocompatibility
Xylan hydrolysis
Novel organisms
plant capital cost
subsidies
Feedstock Pretreatment EnzymeHydrolysis
ProductsCo-Products
Fermentation
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Fungal Cellulase: A complex, interacting enzyme mix
CBH I ~60%
CBH II ~15%
EG III
EG I, II ~20%
RNR
BG
?
CBH I ~60%
CBH II ~15%
EG III
EG I, II ~20%
RNR
BG
?
CBH I ~60%
CBH II ~15%
EG III
EG I, II ~20%
RNR
BG
?
CBH I ~60%
CBH II ~15%
EG III
EG I, II ~20%
RNR
BG
?
CBH I ~60%
CBH II ~15%
EG III
EG I, II ~20%
RNR
BG
?
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0
10
20
30
40
50
60
70
80
0 5 10 15 20 25
Time (hr)
Cel
lulo
se C
on
vers
ion
(%
)
T. reesei, 1XZ broth, 1X
T. reesei + Z broth mixed 1:1, 0.5X
Fungal proteins that work synergistically with T. reesei cellulase
~2X reduction in enzyme loading
PCS hydrolysis to glucose
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Cellulase enzyme loading reduced ~2X by addition of Ta 61A
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GH61 effect on various substrates
0.90
1.00
1.10
1.20
1.30
1.40
PCS SERS SEWS SEP OSLPP FP
Substrate
Deg
ree
of
Syn
erg
yTa61A
Tt61B
Tr61B
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General Challenges for enzyme supply
Technical Challenges of Diversity!
§ Variable Feedstocks
§ Variable Process scenarios
§ Pretreatments
§ Fermentation organisms
One example:
A lower capital cost pretreatment that does not solubilizehemicellulose
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Good progress has been made, but…
§Many pretreatments do not fully solubilize the hemicellulose fraction in biomass
§ These pretreatments are attractive as they generally have lower capital cost and are friendlier to fermentations
§Hemicellulose deconstruction requires many more enzyme activities!
§Hemicellulases are generally poorly expressed relative to cellulases, so they cost more!
§Our goal is to devise a hemicellulase mixture that is cost effective
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Arabinoxylan degrading enzyme activitiesArabinoxylan degrading enzyme activities
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Novozymes and cellulosic ethanol
§ Extensive R&D, market, and technical expertise
§ Extensive leverage from our manufacturing, R&D, and marketing capabilities in Europe, North America, Latin America, India, and China
§ Development of novel cellulases through an unprecedented R&D effort
§ Development of several novel hemicellulases as well
§ Putting enzymes to work through partnerships
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The next steps in cellulosic ethanol
§ Four years before commercially viable production process
§ Enzymes:
§ Scale-up is to take place
§ Evaluation of enzyme production set-ups
§ Further improvements in enzyme performance
§ Business model clarity to be established
§ Integration of process steps
§ Reduction in capital costs
§ More flexible pilot plants using a wide feedstock range
§ Continued governmental support
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Wrap up
§ Enzymes are key to a cost-effective and sustainable development of the fuel ethanol industry and Novozymes is well positioned:
§ Strong track-record
§ Strong R&D platform
§ Strong collaboration partners
§ Strong and unprecedented commitment
§ Novozymes is committed to being the innovation engine in both 1st and 2nd generation bioethanol production
§ Commercialization of cellulosic ethanol is expected within 4 years from now
§ A lot has been achieved already – a lot more still has to happen - and work accelerates
§ Learn more at: www.biomass.novozymes.com
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Thank you