Bioethanol at NordzuckerDr. Albrecht Schaper, Managing Director fuel21

Warsaw, June 17th, 2008

Dateiname: Warschau June 17, 2008.ppt

Verantwortlicher: Dr. A. Schaper

Ersteller: Dr. A. Schaper

Stand: 2008-06-12

Animation: ja

Sprache: english

Bioethanol in the EU

� Bioethanol in the EU

� Raw Materials

� Sustainability

� Bioethanol Production

� Vinasse

� Summary

European Political Framework (I)

� EU Directive 2003/30/EC from May 2003

Objective:

� 5,75 % cal. Biofuels by 2010, but voluntary

� Result was “27” different schemes for the implementation of the directive

� Mandatory Blending Quota

� Production quota

� Implementation of E85 at petrol stations

� Tax incentives

� Combinations of Tax incentives and quotas

� No implementation

No Common System and Market

European Political Framework (II)

� Fuel Quality Directive from January 2007

Objectives:

� allow higher blends of biofuel,

� reduce emissions from the fuel production chain (10% by 2020, article 7a).

� Renewable Energy Sources (RES Directive) from January, 23rd, 2008

Objectives: by 2020

� overall binding 20% renewable energy target,

� binding minimum 10% cal. renewable energy for transport

Biofuels in the EU 25

Development 2003 to 2006

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%A

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Cyp

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Cze

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De

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Esto

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Fin

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Gre

ece

Hu

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ua

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ited

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Source: Member States Progress Reports in the frame of Directive 2003/30EC

� 2003

� 2004

� 2005

� 2006

Targets of EU Commission

2005

2010

Production of Bioethanol for fuel

� In 2006 USA have

overhauling Brazil as

biggest Bioethanol

Producer

� European Production

represents only 4% on

combined capacity

Brazil/ USA

1,77

0

5

10

15

20

25

Brasil USA EUsource: LAB, eBIO, F.O. Licht

Mio. cbm

� 2004

� 2005

� 2006

� 2007

Raw Materials

� Bioethanol in the EU

� Raw Materials

� Sustainability

� Bioethanol Production

� Vinasse

� Summary

Raw Materials for Bioethanol

� Sugar based

� Sugar beet

� Cane

� Starch based

� Corn

� Wheat

� Barley

� Rye

� Potato

� Rice

� Tapioca

� Cellulose based

� Straw

� Wood

� Mischathus

� Bran

� Bagasse

� Sugar Beet pulp

„2. Generation“

Sugar Beets have the same

potential as cane sugar

4.028

6.458

6.237

2.554

0 1.000 2.000 3.000 4.000 5.000 6.000 7.000

BtL

Bioethanol from

Cane

Bioethanol from

Sugar Beet

Bioethanol from

Wheat

Liters/haSource: FNR, Biokraftstoffe

eine vergleichende Analyse, 2006

Sugar beets delivers same

energy per hectare as BtL

135

137

132

54

0 20 40 60 80 100 120 140 160

BtL

Bioethanol from

cane

Bioethanol from

sugar beets

Bioethanol from

Wheat

GJ/haSource: FNR, Biokraftstoffe

eine vergleichende Analyse, 2006

Usage of Sugar Beet

Food:

- Sugar

Feed:

- Pulp

- Pellets

- Molasses

Energy:

- Bioethanol

- Biogas

Feed:

- Pulp

- Pellets

- Vinasse

Sustainability

� Bioethanol in the EU

� Raw Materials

� Sustainability

� Bioethanol Production

� Vinasse

� Summary

The RES Directive proposal

on sustainability

� Beginning of 2008 the European Commission proposed in its Renewable Energy

Directive sustainability criteria on:

� Greenhouse gas saving threshold (35%),

� Land use / Carbon stock release,

� Respecting biodiversity,

� Environmental requirements for agriculture.

� These criteria apply on biofuel and bio-liquids. Criteria on biomass to be proposed in

2010.

� It is a EU scheme: Member States cannot add-on criteria

� But this is not applicable for biofuels from non EU Member States

Greenhouse gas impact

� Sustainability criterion:

� Minimum requirement for GHG saving, relative to fossil fuel, of at least 35%.

� Furthermore relevant:

� Waiver until April 2013 for current plants (Art. 15.2).

� Rules for calculation of GHG saving. Biofuels producers can choose to:

� Use default values for production pathways (Annex VII.A),

� Show actual values with better results (Annex VII.C).

� GHG Emission savings (RES Directive, Annex VII.A)

typical value default value

� Sugar beet 48 % 35 %

� Wheat 21-69 % 0-67 %

� Corn 56 % 49 %

� Cane sugar 74 % 74 %

Land use impact

� Sustainability criterion:

release of carbon stock (art. 15.4 + Annex VII.C.7 and 8).

� Land use change is counted in the greenhouse gas calculation.

� No conversion of wetland or ‘continuously forested area’.

� Specific incentive for crops from “idle lands” and desert.

� Effects on indirect land use changes are not (yet) incorporated.

Biodiversity and good

agricultural practice

� Biodiversity (art. 15.3): no raw material from:

� Forest undisturbed by significant human activity,

� Highly biodiverse grassland,

� Nature protection areas (unless compatible with nature protection).

� Good agricultural and environmental condition (art. 15.5):

� All biofuel production must comply with the “cross compliance” rules already

applied under the CAP (only for EU produced biofuels)

� But this is not applicable for biofuels from non EU Member States

Bioethanol Production

� Bioethanol in the EU

� Raw Materials

� Sustainability

� Bioethanol Production

� Vinasse

� Summary

Fuel21/Nordzucker

Contracts for ethanol beets

� 3.200 farmers have a binding contract for ethanol beets

� Contract time 4 years

� Contracted beets and over-quota beets counts for 1.300.000 T

� Beet price is fluctuating with the ethanol price (sharing of chances and risks)

� e.g. 18 EUR/T at 550 EUR/cbm Ethanol, or 20 EUR/T at 600 EUR/cbm Ethanol

(basis prices for beets at 16% sugar content)

� Additional payments for high sugar content, early/late delivery, quality, by-product

revenue, etc. (comparable with quota beets payments at Nordzucker)

� Delivery of contracted ethanol beets is mandatory, if not, penalty is applied

Pu

lp

Connections between sugar and

Bioethanol production

Su

ga

r Be

et

Raw Juice Thick JuiceExtraction Evaporation

Th

ick

Ju

ice

Crystallization

Su

ga

r

Raw

Ju

ice

Mo

las

se

s

Bioethanol Production

Sugar Plant

Mass Balance concept for

130.000 m³ Bioethanol

at Klein Wanzleben

Beet

Raw Juice

(WZL)

White Sugar

Thick Juice

(other plants)

Thick Juice

(WZL)

Bioethanol 130.000 m³/a

66.000 t/a Sugar from Raw Juice

156.000 t/a Sugar fromThick Juice

222.000 t/a Total Sugar

Quota Sugar Beets 7.000.000t/a

EtOH-Beet 1.300.000 t/a

1.000.000 t/a

Number of Employees: Initial 50 Staff member

Target 35 Staff member

Electricity to Grid

Pulp

Vinasse

Interfaces

Nordzucker AG – fuel 21

Bioethanolanlage

fuel 21

Nordzucker AG

SugarrefinerySugar Beets

Raw Juice

Thick Juice

Steam

Power Waste Water

Vinasse

Ethanol

Byproducts

(Head at Tails)

Bioethanol productionSugar Plant

Production of Bioethanol

Raw Juice

Thick Juice Fermentation

Distillation/Rectification

Dehydration

Storage

VinasseEvaporation

Utilities

Sales and shipment

Vinasse Storage

Power & Steam

Molasses

Building of Boiler house

� Conversion of Steam boiler from Sugar Plant

Munzel

� 55 t Steam at 60 bar

� Steam temperature 500 ºC

� Combustible: Natural Gas (light fuel oil)

� Installation of a Gas turbine

with 5,5 MW electric Capacity

fuel21

Storage of Thick juice

� 2 Storage Tanks in Klein Wanzleben

� 1 Storage Tank in Nordstemmen

� Each Tank contains 60.000 cbm

ful21

Fermentation

� Operations can be

changed between

batch or continuous

Fermentation

� 3 preparation tanks

� 6 production tanks

� 1 Distillation feed tank

fuel21

Distillation,

Rectification, Dehydrogenation

� Distillation with two Double effects Column

� One Pressure Column, one Vacuum Column

� Separate column for aldehyds

� Dehydration by adsorption on molecular sieves

Distillation and Fermentation

fuel21

evaporation of vinasse

� 6 effect evaporation

� Capacity up to 140 t/h with Thin Juice

� Capacity with Thick Juice 45 t/h

Storage

� 2 Storage tanks for Daily production

� 2 Storage tanks for Final products

� 3 Storage tanks for Byproducts (Aldehyds, Vinasse)

Vinasse

� Bioethanol in the EU

� Raw Materials

� Sustainability

� Bioethanol Production

� Vinasse

� Summary

Definition Vinasse

� Vinasse, from Latin „vinacaeus“ and stand for Wine yeast

� From Beginning to the 20th Century Vinasse became the common ex wording for

concentrated, fermented Sugar beet molasses in Europe (LEWICKI 2002)

� According to the German Animal feed law since 1975 Vinasse is allowed for Ruminant

animal feed

� Vinasse as Byproduct is under the Nr. 5.04.01 in the „Positivlist“ registered

� International Vinasse is called „Condensed Molasses Solubles“ (CMS)

Origin of Vinasse

� Vinasses concentrated residues of fermentation processes, dry substance 50-70%

� Fermentations industry can be (Yeast-, Alcohol-, Amino acid-, Citric acid-, Glutamate,

Lysine and other)

� After Fermentation of molasses the final sugar free solution contains yeast, salt,

Amino acids, etc

� After Concentration of this Solution it is called Vinasse

Application as Feed

Cattle and Sheep Feed

� for Cattle and Sheep feed is Crude protein interesting

� Mixed Cattle feed 3-5% can be used

Pig Feed

� Pigs are sensitive to high ash content, specially to Potassium and are to Sulfate

� Crude protein shows low digestibility

� in Pig feed only 2-3% can be used

Limiting factor to Application is Potassium content (max. 6%)

Feed preparation

� Feed preparation can contain 4-8% Vinasse, depending on the Dry substance. Used

like Molasses to improve moldability

Application as fertilizer

Application as Fertilizer

� Application as Nitrogen-Potassium fertilizer trough Appendage

� Use according Fertilizer regulation feasible

� French Ethanol producer use from Vinasse as Fertilizer

Summary

� Bioethanol in the EU

� Raw Materials

� Sustainability

� Bioethanol Production

� Vinasse

� Summary

Sugar beets are best placed for

Bioethanol production

� Easy to handle and to convert

� Highest Bioethanol yields per hectare

� Integration in Sugar Plants saves investments and production costs

� Sustainable agricultural production of sugar beets in the EU

� Bioethanol from Sugar beets is now available and not in a few years

Bioethanol from Sugar beets

� Secures the agriculture in Europe

� Saves income and jobs in rural areas

� Gives a positive effect on GHG Emissions

� Ensures the crop rotation in agricultural practice

� Keeps the food supply chain stable

� Reduces the needs of energy imports (also from Biofuels)

Thank You

for Your Attention