www.rti.orgRTI International is a registered trademark and a trade name of Research Triangle Institute.

A U.S. Perspective on Biofuels

David C. Dayton, Ph. D.RTI Senior Fellow and Director of Biofuels

Energy Technology DivisionBio4Fuels Days 2017November 2, 2017

RTI International2

RTI International is an independent, nonprofit research institute dedicated to improving the human condition. We combine scientific rigor and technical expertise in social and laboratory sciences, engineering, and international development to deliver solutions to the critical needs of clients worldwide.

Leading the Way

Scientific AchievementsCelebrating a history of scientific advancements that have resulted in a measurable impact on the human condition

Taxol® and camptothecin™

Speech processing for cochlear implants

Survey technology (ACASI)

Wind shear avoidance system

Indoor air quality research

Neglected tropical disease control

Clean coal technology

Malaria, HIV, and tuberculosis prevention and treatment programs

Practice Areas4

Health

Food Security and Agriculture

International Development

Energy Research

Innovation Ecosystems

Education and Workforce Development

Social Policy Environmental Sciences

RTI at a Glance

Research Triangle Park, NC

Ann Arbor, MI

Atlanta, GA

Berkeley, CA

Chicago, IL

Fort Collins, CO

Portland, OR

Rockville, MD

San Francisco, CA

Seattle, WA

Waltham, MA

Washington, DC

Abu Dhabi, United Arab Emirates

Barcelona, Spain

Beijing, China

Belfast, Northern Ireland

Jakarta, Indonesia

Kuala Lumpur, Malaysia

Ljungskile, Sweden

Manchester, United Kingdom

Nairobi, Kenya

New Delhi, India

San Salvador, El Salvador

Toronto, Canada

Worldwide Presence and Financial Strength

RTI at a Glance6

Diverse Global Workforce

Energy Technologies at RTI International 7

RTI develops advanced process technologies in partnership with

leaders in energyFull alignment with industry objectives

From concept to demonstration

Defined commercialization pathways

Flexible intellectual property arrangements

Potential leveraging of industrial R&D funding with government provided funding

Integrated Technology Development8

Development of step-out technologies requires integration of process and materials innovation

and understanding of process scale-upMaterials

Development

Process Modeling, Simulation and Design

Lab and Bench

Scale Testing

Computational Chemistry

Research & Development

Integrated Process

DevelopmentProcess Scale-Up

PilotTesting

Commercialization

Demonstration & Deployment

Technology Areas9

CO2

Non-Aqueous SolventsSolid SorbentsCO2 Utilization

CO2 Sequestration

syngas

Warm Syngas DesulfurizationSyngas Cleaning and ConditioningSyngas Conversion and Utilization

natural gas

Micro-Reformers for Distributed Gas-to-Liquids Hybrid Coal-to-Liquids Process Technology

Methane StorageOlefins and Paraffins Separation

water

Integrated Forward Osmosis and Membrane DistillationSolvent-Based DesalinationElectrically Conductive Membranes Addressing Biofouling

materials

Catalyst and Sorbent Synthesis, Characterization and TestingMetal Organic FrameworksMembrane Development

biomass

Catalytic Fast PyrolysisBio-Crude Stabilization / UpgradingHydrocarbon IntermediatesBio Products

O2 Binding Materials

Innovative Solvents

Partnering with Purpose. 10

CO2 Capture & Utilization,

Gas Separations

Natural Gas

Industrial Water Treatment

Syngas Processing

Biomass Conversion

Fouling Resistant Membranes

Industrial Treatment

Gas-to-Liquids

Coal-to-Liquids

Adsorbed Natural Gas

Sorbent-Based

CO2 Capture - Cement Plants

CO2 Utilization

Warm Syngas Cleanup

Advanced Water Gas Shift

High Value Methoxyphenols

Bio-Oil Upgrading to Fuels

Hydrocarbon Intermediates

Biofuels Technology Options

Catalysis

Cellulosic Feedstocks

• Agricultural Residues

• Forest Resources• Energy Crops• Municipal Solid

Waste

Algae

Feedstock Intermediate Product

Sugars

Syngas

Bio-oilPyrolysis/Direct Liquefaction

Biochemical Conversion

Gasification

Open Pond

Close Bioreactor

Bio-products

Ethanol

Advanced Biofuels• Gasoline• Diesel• Jet Fuel

Biodiesel

Fermentation

Fermentation

Catalysis

Catalysis

Transesterification

Deconstruction Upgrading

Source: Bioenergy Technologies Office Replacing the Whole Barrell, DOE/EE-0920 • July 2013

Pyrolysis Pathways for Advanced Biofuels

Biomass

Fast Pyrolysis

Catalytic Fast Pyrolysis

RCFP

Hydropyrolysis

Pyrolysis Vapor Upgrading

Fast Pyrolysis

Catalyst Added

H2 Added

High Pressure

• IR&D funded bench-scale testing• Low quality bio-oil intermediate

• US/DOE BETO funded bench-scale studies

• Improved bio-oil quality (20 -25 wt% O)• Coking in the upgrading process

• IR&D funded bench-scale testing• US/DOE BETO funded bench-scale

testing awarded• Improved bio-oil quality (10wt% O)

• NABC funded bench-scale testing• Near fuel blend stock product• IP space covered by GTI

• 1 TPD Pilot plant testing• US/DOE BETO & ARPA-E funded• Improved bio-oil quality (16-22 wt% O)

RTI IP

Heat

RTI Biomass Conversion to Fuels and Chemicals

DOE ARPA-E Project Previous DOE EERE Project DOE EERE Project Continued Development

2010 – 2013 2012 – 2015 2015 – 2018 2016 – 2019 2019+

1

Catalytic Bio-crude Production in a Novel, Short-Contact Time

Reactor

Funding: ~$4,000,000• Catalyst development and

testing• Process design and

development• Process Scale-Up• RTI Facility Design and

Construction• 1 TPD Process

Development, Fabrication, and Installation

Catalytic Upgrading of Thermochemical Intermediates to

Hydrocarbons

Funding: ~$5,000,000• Process Operation and

Optimization• Bio-crude Upgrading• Integrated process

development

Improved Hydrogen Utilization and Carbon Recovery for Higher Efficiency

Thermochemical Bio-oil Pathways

Funding: ~$4,000,000• Novel catalyst development• Improved bio-crude quality • Aqueous phase carbon

recovery to maximize carbon efficiency

Building Blocks from Biocrude: High Value Methoxyphenols

Funding: ~$2,200,000• Develop laboratory-scale separation of

methoxyphenols• Complete product development

assessment.• TEA and LCA demonstrating < $3/gge and

> 50% GHG emissions

Commercial Roll-Out

SummaryDemonstrate an advanced biofuels technology that integrates a catalytic biomass pyrolysis step and a hydroprocessing step to produce infrastructure compatible biofuels. Improve the economic viability of this process by recovering high-value bio-products.

Scale-up CFP process to pilot-scale to validate catalyst performance and bio-crude yields and quality1) Optimize the catalytic biomass pyrolysis process (1TPD) to maximize high-quality bio-crude production (< 20 wt% O and

> 40% carbon recovery)2) Improve bio-crude thermal stability

Design, build and operate a pilot-scale hydroprocessing unit to upgrade bio-crude intermediates1) Evaluate the impact of bio-crude quality on the hydroprocessing step2) Evaluate co-processing opportunities3) Evaluate hydrogen demand of the integrated process4) Maximize biofuels yield

Develop and optimize a hybrid separation method to recover high-value methoxyphenols(MPs) from biocrude.1) Leverage catalytic biomass pyrolysis to produce a thermally stable biocrude with narrow product slate.2) Tailor separation approach to the physicochemical properties of the biocrude.3) Adapt a hybrid separation strategy for extraction, concentration and purification of MPs

Multiple feedstocks

• Continuous Process• Flexible Operating

Conditions• Produce Bio-crude

• Bio-crude quality• Upgrading severity

Conversion Technology

Catalytic Biomass Pyrolysis

Upgrading Technology

HydroprocessingFeedstocks

Woody biomass

Advanced BiofuelsGasoline, Diesel, Jet Fuel

Bioproducts (MPs)Essential Oils, F&F, Polymers

Separations

Extraction/Distilillation

• Separation Efficiency

• Quality and Purity

The Challenge

Gasoline (cars & trucks)

153.6 bgy

Diesel (on-road, rail)

74.3 bgy

Aviation (jet fuel)

25.4 bgy

19.6MM barrels/day (2016)84% for Transportation

U.S. Energy Information Administration (EIA2016)

Annual Transportation Fuel Consumption (2016)

Diesel

Gasoline

Jet Fuel

Products

2005 Energy Policy Act

Diversify America’s Energy Supply• 7.5 bill gallons of ethanol and biodiesel by 2012• 30% tax credit for E85 stations• Excise tax exemption of $.51 per gallon of ethanol

used as motor fuel• “A recent DOE/USDA study suggests that biofuels

could supply some 60 billion gallons per year –30% of current U.S. gasoline consumption – in an environmentally responsible manner w/o affecting future food production.”

• “To achieve greater use of ‘homegrown’ renewable fuels, we will need advanced technologies that will allow competitively priced ethanol to be made from cellulosic biomass…Advanced technology can break those cellulosic materials down into their component sugars and then ferment them to make fuel ethanol.”

2007 Energy Independence and Security Act

EISA aimed to increase the supply of alternative fuel sources by setting a mandatory Renewable Fuel Standard (RFS) requiring transportation fuel sold in the U.S. to contain a minimum of 36 billion gallons of renewable fuels by 2022, including advanced and cellulosic biofuels and biomass-based diesel.

Requires the Corporate Average Fuel Economy (CAFE) standard to reach 35 miles per gallon by the year 2020. The EISA is projected to reduce energy consumption by 7% and greenhouse gas emissions by 9% by 2030.

Renewable Fuel Volume Requirements for RFS2 (billion gallons) (AEO 2012)

0

5

10

15

20

25

30

35

40

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Biomass-Based Biodiesel Noncellulosic Advanced Biofuels

Conventional Biofuels Cellulosic Biofuels

Billion Gallons per Year

Drivers: Reduced dependence on foreign oil imports (Energy Security), avoid food for fuel, and develop a domestic biofuels industry to enhance rural economic development

Biofuels Technology Options

1st Generation Biofuels– Corn Ethanol (starch hydrolysis/ fermentation)– Biodiesel (Transesterification of vegetable oils)– Green diesel (hydrotreating vegetable oils) 2nd Generation Biofuels (Cellulosic Ethanol)

– Biochemical conversion (pretreatment; hydrolysis;C5 and C6 co-fermentation

– Thermochemical conversion (gasification; gas cleanup; syngas conversion)

Advanced Biofuels (Beyond Ethanol)– Infrastructure-compatible hydrocarbons Pyrolysis/hydrotreating Syngas-to-gasoline Sugars to hydrocarbons (fermentation or catalytic) Bio-butanol

– Algae

The Potential

https://bioenergykdf.net/content/billiontonupdate

3rd Installment since the first “2005 Billion Ton Study” detailed the availability of 1.3 B tons of biomass on a sustainable basis.

Potential economic availability of biomass feedstocks under specific market scenarios for potential energy crop production, agricultural residues, and forestry production

Assuming ~92 gallons/ton biofuels conversion that’s 120 bgy of biofuels (47% of all transportation fuel in 2016)

2016 Billion-Ton Report: Advancing Domestic Resources for a Thriving Bioeconomy

Current Market Assessment – U.S.

0

5

10

15

20

25

30

35

40

Jan-

1995

Jan-

1996

Jan-

1997

Jan-

1998

Jan-

1999

Jan-

2000

Jan-

2001

Jan-

2002

Jan-

2003

Jan-

2004

Jan-

2005

Jan-

2006

Jan-

2007

Jan-

2008

Jan-

2009

Jan-

2010

Jan-

2011

Jan-

2012

Jan-

2013

Jan-

2014

Jan-

2015

Jan-

2016

Jan-

2017

Jan-

2018

$/M

MBt

uGasoline

Diesel

Natural Gas

• Domestic oil production (shale oil and enhanced oil recovery) have led the U.S. to energy independence

• Horizontal drilling (“fracking”) decoupled natural gas and petroleum prices• Low crude prices put additional economic pressure on biofuels• Is electrification the future of transportation fuels?

Source: History: U.S. Energy Information Administration,

Biofuels - Where are we today?U.S. can claim energy independence with the development of enhanced oil recovery, shale oil, and shale gas production – low fossil fuel pricesEthanol and bio-diesel tax subsidies expired in 2014Renewable Identification Numbers (RINs) based on RFS2Corn ethanol industry annual production capacity (2016) - 15.33 bgy (Renewable Fuels Association)

• 10% ethanol blended in gasoline – Blend Wall• 15% ethanol blends approved by U.S. EPA for model year 2001 and newer vehicles• E85/Flex Fuel Vehicle market is small

Conventional biodiesel – 1.5 bgyAdvanced Biofuels Production (2014) – 800 MM gallons

• 58 MM gallons of cellulosic ethanol• ~200 MM gallons of renewable diesel (hydrotreated waste oils, fats, and greases)

RFS Still Alive in New Administration

On Oct. 19, U.S. EPA Administrator Scott Pruitt sent a letter to seven senators indicating the agency is expected to set final 2018 Renewable Fuel Standard blending obligations at or above proposed levels. Pruitt also said the EPA will issue a final rule maintaining the current point of obligation within 30 days. In addition, the letter addresses issues concerning E15 and the treatment of renewable identification numbers (RINs) for biofuel exports.

http://www.biomassmagazine.com/articles/14766/pruitt-commits-to-strong-rfs-maintaining-the-point-of-obligation

Biogas in California is a niche opportunity to take advantage of RINsStill no price on carbon

U.S. Federal Funding OutlookFY18 Federal budget not yet finalized (Looks much better than President’s request)U.S. Department of Energy/EERE seems to be the most impacted - Budgets cuts ?• Shift to more fundamental R&D with little or no support for pilot and

demonstration projects – that is industry’s job• Integrated biorefineries with bio-products to leverage biofuels• National laboratory consortiaU.S. Department of Agriculture not really affected• Agriculture Food and Agriculture Initiative budget is flatMarket Pull for “Alternative”Jet Fuels• Commercial Alternative Aviation Fuels Initiative (CAAFI: http://www.caafi.org/)• Title III Defense Production Act • U.S. Navy Great Green Fleet

https://www.energy.gov/sites/prod/files/2017/03/f34/alternative_aviation_fuels_report.pdf

USDOE/EERE Bioenergy Technologies Office

Critical Program AreasFY17 Budget: $US205MM

BETO Consortia – A New Funding Model

Co-Optimization ofFuels & Engines

National Laboratory Consortia

• Co-Optima

• ChemCatBio

• Advanced Separations

• Consortium for Computational Physics and Chemistry (CCPC)

• Agile BioFoundry

• Feedstock Conversion Interface Consortium (FCIC)

Acknowledgements

RTI Biomass Team• Dr. Ofei Mante• Dr. Kaige Wang• Jonathan Peters• Gary Howe• David Barbee• Kelly Amato

Funding Agencies

• Kim Knudsen• Glen Hytoft• Jostein Gabrielsen• Nadia Luciw Ammitzboll• Jeppe Kristensen• Sylvain Verdier

Industry Partners