Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of...

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NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy operated by the Alliance for Sustainable Energy, LLC Richard Bolin National Bioenergy Center Partnership Development Group NCSL Energy Supply Task Force December 8, 2010 Biofuels: Overview and Opportunities

Transcript of Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of...

Page 1: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy operated by the Alliance for Sustainable Energy, LLC

Richard Bolin

National Bioenergy Center Partnership Development Group

NCSL Energy Supply Task Force

December 8, 2010

Biofuels: Overview and Opportunities

Page 2: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Presentation Outline

• Introduction to NREL

• Overview of Transportation

Fuel Market

• Overview of Biofuels Market

• Future Trends

• Impact of Federal and State

Policies

Innovation for Our Energy Future

Page 3: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

NREL is the only national laboratory dedicated to

renewable energy and energy efficiency R&D.– Fundamental science to technology solutions

– Collaboration with industry and university partners

– Research programs linked to market opportunities

• NREL has 2,300 staff members

• Areas of Research:Advanced Vehicles & Fuels Computational Science

Biomass Basic Sciences Buildings Geothermal

Wind Solar Hydrogen & Fuel Cells

Electric Infrastructure Systems

Page 4: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

NREL FY2009 Program Portfolio $525.1M

Page 5: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

• Research spans fundamental science to technology

solutions

• Collaboration with industry and university partners

is a hallmark

• Research programs linked to market opportunities

Page 6: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

Energy Efficiency

• Vehicle Technologies

• Building Technologies

• Industrial Technologies

Energy Delivery and Storage

• Electricity Transmission and Distribution

• Alternative Fuels

• H2 Delivery and Storage

Renewable Resources

• Wind

• Solar

• Biomass

• Geothermal

NR

EL R

&D

Port

folio

Foundational Science and Advanced Analytics

Page 7: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

NREL’s National Bioenergy Center Facilities

Thermochemical Conversion

• Micro-reactors to pilot plants

Biochemical Conversion

• Bench scale to 9000L

Genomics Laboratory

• Strain development

Biomass Characterization

• Composition of Feedstocks

Spectroscopy Facilities

• Structure of Biomass

Page 8: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

Thermochemical Conversion Partnering Facility

• 0.5-metric-ton-per-day Thermochemical Process Development Unit (TCPDU), which can be operated in either a pyrolysis or gasification mode

• catalytic fuel synthesis system capable of converting the full syngas stream from the TCPDU to liquid fuels

• 2-in.-diameter fluidized bed reactor system for small-scale studies of biomass and bio-oil gasification, pyrolysis, catalytic reforming of pyrolysis liquids or vapors, or raw syngas conditioning

• Fuel Synthesis Catalyst Test Facility

• Real-Time Sampling & Chemical Analysis

Page 9: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

Integrated Biorefinery Research Facility

• Continuous 1-ton/day horizontal reactor system with the capability for multiple configurations

• Continuous 1-ton/day vertical reactor system

• Continuous 200-kg/day (dry basis) horizontal-screw reactor system

• High-solids 4000-L horizontal paddle-type reactors

•Bioreactors

• 27,000 ft2 of high bay space for industrial

partners

Page 10: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

U.S. Department of Energy , Clean Cities Program

• creates public-private partnerships with a common mission: to

reduce petroleum consumption in the transportation sector

• builds value by expanding the market for advanced transportation

at a local level through voluntary coalitions

• coalitions, led by Clean Cities coordinators, draw stakeholders

from transportation departments, commercial fleets, transit

agencies, car dealers, fuel suppliers, public utilities, and nonprofit

associations.

•90 coalitions covering areas where 229 million U.S. citizens live—

approximately 78% of the country’s total population.

•2009 alone, roughly 446 million gallons of gasoline were displaced

as the result of Clean Cities activities

•put more than 600,000 alternative fuel vehicles on the road and

added more than 1,900 alternative fueling stations.

Page 11: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Presentation Outline

• Introduction to NREL

• Overview of Transportation

Fuel Market

• Overview of Biofuels Market

• Future Trends

• Impact of Federal and State

Policies

Innovation for Our Energy Future

Page 12: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

U.S. Transportation Fuel Market

• Approximately 250 million on-road vehicles in the US

• Consumed 18.69 million bbl/day (2009 est., CIA world fact

book)• 6.8 billion bbl/year

• 137.9 billion gallons of gasoline/year (3.28 billion barrels of gasoline)

• Imported 11.7 million bbl/day (2009, API) • 62.6% of the US demand is being met by imported oil

• 22.4 bbl of oil consumed/person/year in the US

• 2.4 bbl of oil/person/year in China

• 434 gallons of gasoline consumed/person/year (19.36 gallons of

gasoline/barrel, EIA DOE)

• Current price of gasoline is $2.91/gallon (Lundberg survey)• Up $0.28 compared to December 2009

• $ range $3.21-$2.61

• Current oil price $89/bbl (up 10% from Dec 2009)National Renewable Energy Laboratory Innovation for Our Energy Future

Page 13: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

U.S. Transportation Fuel Market

• 2009 crude oil prices ranged from a January average of

$41.68 per barrel to a December average of $74.47 per

barrel

• Avg. fuel efficiency for US passenger car in 2008= 22.6mpg

• Avg. fuel efficiency for a new US passenger car in 2008 =

31.2mpg

• CAFÉ for 2008= 27.5mpg

• Avg. fuel efficiency for European passenger car in 2007 =

40mpg • 113 models that got 40mpg or higher

• WW transportation fuel market = $4 Trillion

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 14: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

U.S. Transportation Fuel Market

National Renewable Energy Laboratory Innovation for Our Energy Future

Demand in the US is leveling off due to the Economy

and gains in Efficiency

Page 15: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

U.S. Transportation Fuel Market

• Department of Defense spent $ 9.6 Billion on fuel for

vehicles • (non-fleet and fleet) including jet fuel, aviation gasoline, Navy-special fuel,

automobile gasoline, diesel-distillate and liquefied petroleum gas

(LPG)/propane

• 2007, 365,000 convey vehicles to support 300,000 troops in Iraq

• 35,400 vehicles moving just fuel

• In Afghanistan, cost to deliver one gallon of fuel to a forward operating base

$200-$400/gallon

• ―Further, the cost of purchasing security for resupply convoys presents other

strategic threats by funding the very adversaries we are attempting to

defeat.‖

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 16: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

World oil Consumption

National Renewable Energy Laboratory Innovation for Our Energy Future

0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000

US

China

Japan

Russia

Germany

India

Canada

South Korea

Brazil

Mexico

Saudi Arabia

France

UK

Italy

Iran

Oil Consumption by top 15 Countries

(bbl/day)

Page 17: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

Oil Reserves

U.S.NigeriaLibyaRussiaVenezuela

U.A.E.

KuwaitIraqIranCanadaSaudi Arabia

2%2%

3%5%

6%8%8%

9%10%

14%21%

Oil Suppliers

Updated July 2005. Source: International Energy Annual 2003 (EIA), Tables 1.2 and 8.1-O&GJ. Canada’s reserves include tar sands.

0% 10% 15% 20%5% 25%

Page 18: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Presentation Outline

• Introduction to NREL

• Overview of Transportation Fuel Market

• Overview of BiofuelsMarket

• Future Trends

• Impact of Federal and State Policies

Innovation for Our Energy Future

Page 19: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Options for Biofuels

National Renewable Energy Laboratory Innovation for Our Energy Future

RENEWABLES

FATS & OILS

Fischer-

Tropsch

Ethanol

(catalytic)

Ethanol

(fermented)

Methanol to

gasoline

Higher

alcohols

Cellulosic

Ethanol

Algae diesel

(dark)

Green diesel

Biodiesel

Algae diesel

(photosynth.)

Pyrolysis oilRenewable

Hydrocarbons

Near-term

Long-term

SUGAR SYNGAS

Now Corn

Ethanol

Page 20: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Biofuels: Corn Ethanol to Advanced

Biofuels

• Ethanol replaces MTBE as an oxygenate in 2003

• 2005 Energy Policy Act

• Renewable fuel (ethanol) blended with gasoline

• 2006 National Renewable Fuel Standard Program

• Double the amount of fuel ethanol and biodiesel by 2012

• 2007 Energy Independence and Security Act

• 15 billion gallons of fuel ethanol by 2015

• 2010 187 operating Ethanol plants,13 mgy capacity

• 15 plants expanding,

• adding another 1.43 mgy in capacity

• 26 states have ethanol plants

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 21: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Biofuels: Corn Ethanol to Advanced

Biofuels

• EPA 2011 requirements for the RFS

• ethanol and other renewable fuels must account for at least 13.95 billion

gallons of U.S. fuel sales in 2011, while cellulosic biofuel must account

for 6.6 million gallons = “Blend Wall”

• E15

• On October 13, 2010, the EPA granted a partial waiver to allow fuel and

fuel additive manufacturers to introduce into gasoline that contains

greater than 10 volume percent (vol%) ethanol and up to 15 vol%

ethanol (E15) for use in certain motor vehicles

• E15 for use in Model Year (MY) 2007 and newer light-duty motor

vehicles, which includes passenger cars, light-duty trucks, and medium-

duty passenger vehicles.

• Not approving the waiver for E15 use in MY2000 and older light-duty

motor vehicles, heavy-duty gasoline engines and vehicles (e.g., delivery

trucks), highway and off-highway motorcycles, and nonroad engines,

vehicles, and equipment

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 22: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Biofuels: Corn Ethanol to Advanced

Biofuels

National Renewable Energy Laboratory Innovation for Our Energy Future

• E15

• Vehicles manufactured between 1994 and 2000 MY, which are

still operational today, comprise 62.8 million vehicles, or

approximately 25% of the overall U.S. LD vehicle fleet (EPA

MOVES model)

• Vehicles manufactured between 2001 and 2010 MY, which are

still operational today, comprise 152 million vehicles, or

approximately 60% of the overall U.S. LD vehicle fleet

• Ricardo study ―…specifically focused on light duty on-road

vehicles produced in the 1994 to 2000 MY. The analysis concluded

that the adoption and use of E15 would not adversely affect fuel

system components in properly engineered vehicles, nor would it

cause them to perform in a sub-optimal manner, when compared to

the use of E10.‖

• Pushing the Blend Wall out but not eliminating it

Page 23: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Biofuels: Corn Ethanol to Advanced

Biofuels

National Renewable Energy Laboratory Innovation for Our Energy Future

E85 in the US• > 8 million Flex Fuel Vehicles

• 50% of all new vehicles coming off assembly line model year 2012 and beyond

will be FFVs according to the Big Three

Page 24: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Other Near-Term Biofuel Technologies:

Biodiesel and Green Diesel

Biodiesel – Transesterified vegetable oils blended with diesel

• Mature technology, US is the second largest producer of

biodiesel in the world, producing 17.7% of the world’s

biodiesel in 2009, 752 MGY

• American Jobs Creation Act of 2004 established and

extended blender’s tax credits to reduce the final cost (in

nominal terms) of biodiesel made from virgin oil by $1.00

per gallon, and biodiesel made from waste grease by

$0.50 per gallon

• Tax credits extended through 2010, production tied to tax

credits

Green Diesel/Gasoline – fats, waste oils, or virgin oils

blended with crude oil as a feedstock for making low-sulfur

diesel/gasoline in petroleum refineryLongTerm

Near Term

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 25: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Oils, Fats & Greases as Bio-renewable

Petroleum Refinery Feedstocks

• Co-processing of

oils and greases with

petroleum fractions

• Utilize existing

process capacity

• Potential for lower

conversion costs

(than FAME)

• Higher quality diesel

blending component

• G/D flexibility

CatalyticCracker

DistillateHydrotreater

Oils andGreases

Green Gasoline& Olefins

GreenDiesel

ISBL Petroleum Refinery

Based on Presentations at 1st International Biorefinery Workshop, Washington DC, July 20-21, 2005- Future Energy for Mobility, James Simnick, BP- From Bioblending to Biorefining, Veronique Hervouet, Total- Opportunities for Biorenewables in Petroleum Refineries, Jennifer Holmgren, UOP

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 26: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

U.S. National Commitment to Biofuels

Near-term – Cost Goal

“Cost-competitive cellulosic ethanol”

– Cost-competitive in the blend market by 2012

Longer-term – Volumetric Goal

EISA (Energy Independence & Security Act)

– 36 billion gallons renewable fuel by 2022

• 21 billion gallons cellulosic + advanced biofuels

Renewable Fuel Standard (RFS) goals for biofuels

penetration are based on specific GHG reductions

from the fossil fuel it replaces.

• Biomass-based diesel 50% reduction

• Advanced biofuels 50% reduction

• Corn grain-based ethanol 20% reduction

• Cellulosic Biofuels 60% reduction

Page 27: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

Near-Term Focus on Ethanol

Ethanol – as a blending agent from either grain or cellulosic

material from Agriculture and/or Forestry industry

Biodiesel – Transesterified vegetable oils blended with diesel

Green Diesel/Gasoline – fats, waste oils, or virgin oils blended

with crude oil as a feedstock for making low-sulfur

diesel/gasoline in petroleum refinery

Pyrolysis Liquids – as a boiler fuel or an alternative feedstock to

petroleum refinery or gasification facility; also a future source of

aromatics and/or phenols

Synthesis Gas – for conversion to Fischer Tropsch liquids,

MeOH/DME, or mixed alcohols

Algae – as alternative source of triglycerides for biodiesel or green

diesel

Hydrocarbons – from hydrogenation of carbohydrates or ligninLongTerm

Near Term

Page 28: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Cellulosic Ethanol Research at NREL

National Renewable Energy Laboratory Innovation for Our Energy Future

Indirect

Gasification

Catalytic

SynthesisSeparation

Syngas

CO+H2

Mixed

alcohols

Thermochemical Mixed Alcohols

Chemical

Pretreatment

Enzymatic

HydrolysisFermentation

Sugar

Biochemical Ethanol

NREL core research includes:

• Increase pretreatment conversion

• Reduce enzyme cost

• Reduce commodity chemical usage

2008 State of Technology predicts $2.61/gal ($3.92/gal gas equiv.)

NREL core research includes:

• Increase tar reformer conversion

• Identify sulfur mitigation solution

• Improve alcohol synthesis catalyst performance

2008 State of Technology predicts $2.40/gal ($3.60/gal gas equiv.)

Ethanol

Methanol

Ethanol

Propanol+

Cellulosics

Cellulosics

Page 29: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

The Biorefinery Concept

Trees

Grasses

Agricultural crops

Residues

Animal wastes

Municipal solid waste

UsesFuels Ethanol Butanol Higher alcohols Green gasoline Renewable diesel

Jet Fuel

Power Electricity Heat

Chemicals Plastics Solvents Chemical intermediates Phenolics Adhesives Furfural Fatty acids Acetic acid Carbon black Paints Dyes, pigments, and ink Detergents

Food and Feed

Enzymatic fermentation

Gas/liquid fermentation

Direct microbial production of hydrocarbons

Acid hydrolysis/ fermentation

Gasification

Combustion

Co-firing

Pyrolysis

Conversion Processes

Biomass Feedstocks

Page 30: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

Major DOE Biofuels Project Locations

Four Commercial-Scale Biorefinergy Projects: up to $305 million

Nine Small-Scale (10%) Biorefinery Projects: up to $240 million (first round)

Three Bioenergy Centers: up to $405 million

Four Thermochemical Biofuels Projects: up to $7.7 million

Four Improved Enzyme Projects: up to $33.8 million

Five Projects for Advanced Ethanol Conversion Organisms: up to $23 million

Pacific Ethanol Biochemical

Wheat Straw/Corn Stover

(Boardman, OR)

Blue Fire

Biochemical

Municipal Solid Waste

(Corona, CA)

Poet

Biochemical

Corn Stover

(Emmetsburg, IA)

Lignol

Biochemical

Wood Residues

( CO)

ICM

Biochemical

Switchgrass, Corn

Stover

(St. Joseph, MO)

Abengoa

Biochemical/

Thermo

Ag Waste, Switchgrass

(Hugoton, KS)

DOE Joint Bioenergy Institute

(Berkeley, CA)

DOE Great Lakes Bioenergy

Research Center

(Madison, WI)

DOE Bioenergy

Science Center

(Oak Ridge, TN)

NewPage

Thermochemical

Wood Chips

(Wisconsin Rapids, WI)

Range Fuels

Thermochemical

Wood Chips

(Soperton, GA)

Iowa State

Thermochemical

Switchgrass

(Ames, IA)Emery Energy

Thermochemical

Corn Stover

(Salt Lake City, UT)

Southern Research

Institute

Thermochemical

Various

(Birmingham, AL)

Genencor

Biochemical

Various

(Palo Alto, CA)

Verenium Corp

Biochemical (2)

Various

(San Diego, CA)

DuPont

Biochemical

Various

(Wilmington, DE)

Mascoma

Biochemical

Various

(Lebanon, NH)

Purdue University

Biochemical

(West Lafayette, IN)

Cargill Inc

Biochemical

Various

(Minneapolis, MN)

Regional PartnershipsSouth Dakota State Univ., Brookings, SD

Cornell University, Ithaca, NY

Univ. of Tennessee, Knoxville, TN

Oklahoma State Univ., Stillwater, OK

Oregon State Univ., Corvallis, OR

Key

Company

Process

Feedstock

(Location)

Flambeau River

Thermochemical

Wood Chips

(Park Falls, WI)

RSE

Biochemical

Pulp extract

(Old Town, ME)

Alltech/Envirofine

Biochemical

Corn Cob

(KY)

Mascoma

Biochemical

Switchgrass (TN)

Verenium

Biochemical

Bagasse, Energy Cane

(Jennings, LA)

NREL

Page 31: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Cellulosic Ethanol Plants

Abengoa, ICM Inc.

AE Biofuels, Iogen Corp.

Bluefire Ethanol

California Ethanol Power, LLC

Coskata, Mascoma

DuPont Danisco Cellulosic

Ethanol, LLC

Frontier Renewable Resources,

LLC

KL Process, Pacific Ethanol

New Planet Energy

POET, Qteros

Range Fuels Inc.

Verenium, Verenium/BP Biofuels

Zea

Myriant Technologies LLC

BuckeyeTechnologies Inc.

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 32: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Presentation Outline

• Introduction to NREL

• Overview of Transportation

Fuel Market

• Overview of Biofuels Market

• Future Biofuels

• Impact of Federal and State

Policies

Innovation for Our Energy Future

Page 33: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Advanced Biofuels from Sugars

Starch

Sugar

Aqueous-Phase

Reforming

Fermentation with

engineered microbes

Sugarcane

Dark Algae

Oil

Cellulosics

Fermentation

LS9, Amyris Solazyme

Gasoline

Diesel

Jet

Virent

Gasoline

Diesel

Jet

Biodiesel

Ethanol

Diesel

Benefits

•Infrastructure-compatible

•Highly controlled fuel properties

Challenges

•Feedstock availability

•Compatibility with cellulosic sugar

Butanol

Gevo, Cobalt

Page 34: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Mid-Term Biofuel Technologies

Ethanol – as a blending agent from either grain or cellulosic

material from Ag and/or Forestry industry

Biodiesel – Transesterified vegetable oils blended with diesel

Green Diesel/Gasoline – fats, waste oils, or virgin oils blended

with crude oil as a feedstock for making low-sulfur

diesel/gasoline in petroleum refinery

Pyrolysis Liquids – as a boiler fuel or an alternative feedstock to

petroleum refinery or gasification facility, also a future source

of aromatics and/or phenolsDME, or mixed alcohols

LongTerm

Near Term

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 35: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Bio-oil is comprised of many oxygenated organic

chemicals, with water-miscible and oil-miscible

fractions

Fast Pyrolysis and Bio-oil as a Blending

Agent for Petroleum Refineries

Based on research at NREL (1990 - 2006)

Dark brown mobile liquid,

Combustible,

Not 100% miscible with hydrocarbons,

Modest heating value ~ 17 MJ/kg,

High density ~ 1.2 kg/l,

Acidic, pH ~ 2.5,

Pungent odour,

“Ages” - viscosity increases with time

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 36: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Mid-Term Biofuel Technologies

Ethanol – as a blending agent from either grain or cellulosic

material from Ag and/or Forestry industry

Biodiesel – Transesterified vegetable oils blended with diesel

Green Diesel/Gasoline – fats, waste oils, or virgin oils blended

with crude oil as a feedstock for making low-sulfur

diesel/gasoline in petroleum refinery

Pyrolysis Liquids – as a boiler fuel or an alternative feedstock to

petroleum refinery or gasification facility, also a future source

of aromatics and/or phenols

Synthesis Gas – for conversion to mixed alcohols, Fischer

Tropsch liquids, MeOH to Gasoline, or DME

LongTerm

Near Term

National Renewable Energy Laboratory Innovation for Our Energy Future

Page 37: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Gasification Offers Many Feed & Product

Options

Primary Energy

SourceSyngas Step Conversion Technology Products

Syngas

(CO + H2)

Fischer

Tropsch

(FT)

Upgrading

Lubes

Naphtha

DieselSyngas to Liquids (GTL) Process

Mixed Alcohols (e.g. ethanol, propanol)

Syngas to Chemicals Technologies

Methanol

Acetic Acid

Others (e.g. Triptane, DME, etc)

Coal

Natural

Gas

Biomass

Hydrogen

Extra

Heavy

Oil

Slide courtesy of BP Corporation

Page 38: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Methanol

Advanced Biofuels from Syngas

Syngas

gasification

Fischer-Tropsch

Synthesis

Methanol

SynthesisFermentation

Dry Organic

Material

Cellulosics

Mixed Alcohol

Synthesis

Gasoline

Diesel

Jet

Solena, Choren,

Rentech

Gasoline

Ethanol

Propanol+

Methanol-to-

Gasoline Ethanol

Coskata,

INEOS

Benefits

•Product versatility

•Proven technology

Challenges

•Biomass collection radius dictates

smallish plant size

•Limited economy of scale

Page 39: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

Long-Term Biofuel Technologies

LongTerm

Near Term

Ethanol – as a blending agent from either grain or cellulosic material from Agriculture and/or Forestry industry

Biodiesel – Transesterified vegetable oils blended with diesel

Green Diesel/Gasoline – fats, waste oils, or virgin oils blended with crude oil as a feedstock for making low-sulfur diesel/gasoline in petroleum refinery

Pyrolysis Liquids – as a boiler fuel or an alternative feedstock to petroleum refinery or gasification facility, also a future source of aromatics and/or phenols

Synthesis Gas – for conversion to mixed alcohols, Fischer Tropsch liquids, methanol, or dimethyl ether

Algae to Fuels – ethanol or to biodiesel or as a lipid source for green diesel or synthetic gasoline

Hydrocarbons – from hydrogenation of carbohydrates or lignin

Page 40: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

A Novel Approach -- Jet Fuel from Biomass

Combine two technologies: Algae & Green Diesel

CO2

Cultivation Ponds

Microalgae

• Ethanol

• Power

• Food

60%

Triglyceride

40%

Carbohydrates

and

Protein

Jet Fuel (JP-8)

Green Diesel

Page 41: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

Advanced Biofuels from Fats and Oils

Dry Organic

Material

Cellulosics

Envergent Tech.

“Big Oil”

ConocoPhillips/Tyson

Neste, Petrobras, Shell/Choren

Fats & Oils

Natural or WasteTransesterification Biodiesel

Refinery

Hydrotreating

& UpgradingPyrolysis

Algae growth

& oil harvest

Gasoline

Diesel

Jet

“Big Bang”Livefuels

PetroSun

Chevron

Boeing

Algenol (EtOH)

Benefits

•Portability of oil intermediate

•Infrastructure compatibility

Challenges

•Land use change

•Pyrolysis process design

•Algae biology and culture

Page 42: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Presentation Outline

• Introduction to NREL

• Overview of Transportation

Fuel Market

• Overview of Biofuels Market

• Future Biofuels

• Impact of Federal and

State Policies

Innovation for Our Energy Future

Page 43: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

National Renewable Energy Laboratory Innovation for Our Energy Future

State of the Union Address

2006

―America is addicted to oil… The best way to break this addiction is

through technology.

Our goal is to make this ethanol practical and competitive within six

years.

To replace more than 75 percent of our oil imports from the Middle

East by 2025.‖ – 50 B gallons of EtOH

2007

Reduce U.S. gasoline usage by 20 percent in

10 years – 75% from new fuels – 25% from

vehicle efficiency.

Mandatory fuels standard to require 35 B

gallons of renewable and alternative fuels in

2017.

The Advanced Energy Initiative

Page 44: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

FEDERAL Policies Driving Biofuels Market

National Renewable Energy Laboratory Innovation for Our Energy Future

• 2004 American Jobs Creation Act converted ethanol excise tax

exemption to flat tax credit and extended to 2010 ($0.51/gal)

• 2005 Energy Policy Act

•Renewable Fuel Standard introduced

• ―932s‖ fund cellulosic biorefinery demonstration projects

•2006 National Renewable Fuel Standard Program

•Double the amount of fuel ethanol and biodiesel by 2012

•2007 Energy Independence and Security Act (RSF2)

• 36 billion gallons renewable fuel by 2022

21 billion gallons cellulosic + advanced biofuels

• 2007 DOE funds the development of 6 commercial scale

biorefineries

• 2008 DOE funds 10% commercial scale cellulosic biorefineries

• President Obama establishes the Biofuels Interagency Working

Group

• DOE and USDA

• next generation biofuels, FFVs, retail marketing efforts

Page 45: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

FEDERAL Policies Driving Biofuels Market

National Renewable Energy Laboratory Innovation for Our Energy Future

•2010 USDA announces the establishment of 5 regional biomass research

centers, loan guarantees for biorefineries, expand blender pump

distribution infrastructure, financial assistance to growers of biofuel

feedstocks, partnership with airline industry, military, and federal

government to expand the use of biofuels.

• GHG reduction, Carbon trade and cap

• 2009 Air Force Energy Policy

•Test and certify all aircraft and systems against

50/50 alternative fuel blend by 2011

• Increase the number of fexible fuel systems

• By 2016, be prepared to cost competitively acquire

50% of the Air Force’s domestic aviation fuel

requirement via an alternative fuel blend in which

the alternative component is derived from domestic

sources produced in a manner that is greener than

fuels produced from conventional petroleum

Page 46: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

FEDERAL Policies Driving Biofuels Market

National Renewable Energy Laboratory Innovation for Our Energy Future

• Navy Biofuel Initiatives

• Sail a Green Strike Group by 2016

• Reduce non-tactical petroleum use by 50% by 2015

• Certify 50/50 biofuel blend in Navy ships and aircraft by 2012

• 2010 flew F/A -18 Super Hornet and MH60S Sea Hawk on 50/50

biofuel blend

• "In October 2009, I issued five energy targets for my department,

the most important of which is that by the year 2020 – a decade

from now – half of all the energy we use afloat and ashore, in the

air, on the sea, under the sea or on land will come from non-fossil

fuel sources," said secretary of the Navy Ray Mabus, in October

2010 at the Energy Security Forum held at the Pentagon.

Page 47: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

FEDERAL Policies Driving Biofuels Market

National Renewable Energy Laboratory Innovation for Our Energy Future

• Marine Corps Biofuel Initiatives

• Under the 2007 Energy Independence Security Act, there is a

requirement for the Marines to reduce energy consumption by 30%

by 2015 compared with 2003's energy consumption. Additionally,

the Marine Corps is mandated to have 25% of its energy come

from renewable sources by 2025.

• 2009, Camp Lejeune used 50,034 gallons of biodiesel and Cherry

Point air station used 43,339 gallons

• Marine Corps Base Hawaii installed E85 and B20 fuel pumps for

their 70 FFVS

Page 48: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

State Biofuel Policies and Initiatives

National Renewable Energy Laboratory Innovation for Our Energy Future

• State Biofuel Policies

• NCSL, 2005-2006 26 states passed legislation and provided

millions in grants, loans, tax breaks, sales tax exemptions,

corporate tax credits and rebate program to develop a biofuel

industry in their state

• Minnesota currently has two bills looking to develop other forms

of ethanol. HB 589/SB 480 and HF 2200/SB 2074, among other

things, support projects that develop cellulosic ethanol and improve

the efficiency of hydrogen.

• Virginia's SB 689, which was signed by the Governor,

establishes a grant program for the development of biofuels and

ethanol fuels and expands qualifying ethanol products to potatoes,

cereal grains, whey, sugar beets, forest products, residue and

waste.

• North Carolina SB 1451 creates a biodiesel incentive fund that

prioritizes grants based on the amount of North Carolina waste

products used in the production of biodiesel.

Page 49: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

State Biofuel Policies and Initiatives

National Renewable Energy Laboratory Innovation for Our Energy Future

• State Biofuel Policies

• Florida SB 2870 expands the definition of renewable energy

resources to include waste products from livestock or poultry

operations.

•Iowa has two bills that look to increase renewable fuel distribution and

use. HF 2247 provides for motor fuel pumps which dispense renewable

fuel. HF 2632 provides for, among other things, infrastructure

associated with storing, blending, and dispensing renewable fuel.

• Arizona is also looking to establish a Biofuels Conversion Program

within the state's Department of Energy to convert existing and future

equipment at motor fuel dispensing sites so that they will be able to

dispense biofuels.

• Hawaii's HB 3179 expands the definition of "renewable energy

producer" to include growers and producers of organic materials used

primarily for the production of biofuels or other fuels, so that they will be

eligible for direct leases of public land.

Page 50: Biofuels: Overview and Opportunities · NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance

NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy operated by the Alliance for Sustainable Energy, LLC

Thank You for the Opportunity

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Questions ?