And other musings on bio-fuel, sustainable transportation and energy Luca Zullo, Ph.D. luca.zullo@verdenerollc.com www.verdenerollc.com (*) both involve a lengthy walk in the desert -out me.. and my work Education Ch Degree Padova, taly PhD Ch mperial College, London UK ProfessionaI Shell Research Cray Research Cargill The wilderness of start-ups. emicaI engineering in a nutseII nlet Outlet + Production Consumption = Accumulation Corollary 1: The above applies to mass AND money Corollary 2: f Accumulation of money is <= 0 investors are unhappy Corollary 3: (recently stated) Uncle Sam will not correct 2 forever Regardless of what many think, thermodynamics are NOT an opinion Corollary: ventually applies also to people on Sandy Hill and Foggy Bottoms Mass balances in moles were not just an invention to drive student crazy Corollary: They work pretty well though on that too. The world is a complex system: non-linear, dynamic and full of lags and feedback loops. deal with it All models are wrong, some are convenient Prof George Box %aIking a-out energy is fraugt wit inteIIectuaI and semantic risks. 013 mpg @ 500 mph 40 mpg @ 60 mph What is energy efficiency? Which one is more energy efficient? I% DEPENDS! * ( * typical weasel answers given by engineers to fudge tough issues or escape admitting ignorance) %e answer is: it depends. 013 mpg @ 500 mph 40 mph @ 60 mph Gallons per passenger mile 400 passengers in a 747 -> 0019 Lone commuter in a Prius -> 0025 We do not care about energy We do care about energy services We do not purchase fuel We purcase mo-iIity nergy Transportation Residential Commercial source 1973 2010 1973 2010 1973 2010 Petroleum a 95 932 19 55 165 39 Natural gas b 40 25 333 22 279 10 Coal 00 00 06 00 17 03 Renewable 00 40 24 25 01 07 Nuclear 00 00 00 00 00 00 lectricity c 02 03 447 691 539 771 Total 1000 1000 1000 1000 1000 1000 nergy ndustrial lectric utilities source 1973 2010 1973 2010 Petroleum a 279 266 17 10 Natural gas b 31 269 190 190 Coal 124 54 43 40 Renewable 37 72 145 106 Nuclear 00 00 46 213 lectricity c 242 33 02 02 Total 1000 1000 1000 1000 Distri-ution of energy use -y source (source US Dept of Energy). Source: US DO Transportation nergy Data Book EvoIution of car registrations. EvoIution of air transportation. et Fuel consumption in Mtoe Revenue Passenger Kilometer Source ATA-CAO No foreseeable alternative to liquid fuel for aviation Sustaina-Ie transportation is not optionaI Personal mobility one of the most distinctive conquests of the modern society s one of the most coveted goals of people worldwide as they gain increased affluence Access to inexpensive and widespread mobility for goods and people essential to the unprecedented economic growth of the XX century and its continued expansion in the XX We cant deny to so much of humankind the benefits the western world had for so long worId witout afforda-Ie transportation is going to -e a sociaIIy and economicaIIy grim one worId witout sustaina-Ie transportation is going to -e an environmentaIIy grim one Delivering access to sustainable and affordable mobility is one the defining challenges of the XX century BiofueIs to te rescue? BiofueIs, an emotionaI topic -etween rigteous -ut often misinformed outrage.. .. and triumpant -ut often incompIete and misIeading marketing or pandering BiofueIs: some definition from te we- iofuels are a wide range of fuels which are in some way derived from biomass. The term covers solid biomass, liquid fuels and various biogases. iofuels are gaining increased public and scientific attention, driven by factors such as oil price spikes and the need for increased energy security. enwikipediaorg/wiki/Biofuel Any fuel that is obtained from a renewable biological resource, especially from biomass enwiktionaryorg/wiki/biofuel A form of renewable fuel that's derived from biomass, which includes organic materials produced by plants, animals or microorganisms. joulebiocom/why-solar-fuel/glossary Gas, such as methane, or liquid fuel, such as ethanol (ethyl alcohol) made from organic waste material, usually by microbial action. wwwtravelmattersorg/about/glossary Fuels devised from biological materials including crops (especially trees) and animal wastes wwwecifmrdgacuk/glossaryhtm Gas or liquid fuel made from plant material (biomass). Includes wood, wood waste, wood liquors, peat, railroad ties, wood sludge, spent sulfite liquors, agricultural waste, straw, tires, fish oils, tall oil, sludge waste, waste alcohol, municipal solid waste, landfill gases, other waste, and ... wwwnatsourcecom/markets/indexasp fuels that are generated by solar energy and photosynthesis, either on an annual basis (crops, grasses, etc.) or over a period of a number of years (trees). iofuels do work, but the scale of use is the main issue with them, since our overconsumption cannot be met with biofuels. ... wwwpermatopiacom/dictionaryhtml A biofuel is liquid or gaseous product that can be used in the internal combustion engine of a transportation vehicle. It is notable in that it contains a percentage of renewable products produced from plant or animal sources. ... wwwveoliacom/en/glossary/Bhtm A fuel produced from dry organic matter or combustible oils produced by plants. Examples of biofuel include alcohol (from fermented sugar), black liquor from the paper manufacturing process, wood, and soybean oil wwwwwforghk/eng/conservation/climate/glossaryphp Any fuel that is derived from biomass recently living organisms or their metabolic byproducts from sources such as farming, forestry, and biodegradable industrial and municipal waste. See renewables. wwwchevronaustraliacom/glossaryaspx is any liquid, solid or gas fuel refined in whole or in part from sustainable biological materials, usually plants. Some biofuels, like ethanol, are refined from food plants such as corn, but technologies are being developed to use nonfood plants and crop residue from food plants. wwwamericagov/st/energy-english/2009/une/2000725134616mlenuhret2274722e-02html&distid=ucs Fuels such as ethanol and diesel produced from sugars, vegetable oils, or other organic matter using biotechnology methods biotech-ucom/courses/mod/glossary/viewphp %rigIyceride (%) structure % structure and fueIs. FOG = biogenic fats, oils and greases 17 ydrotreating of Iipids over Ni/Mo cataIysts CH 2 CH CH 2 O C O O C O O C O Rx Rx Rx Rx: saturated or mono/polyunsaturated aliphatic chain (typically C14-C1) +1 H 2 Backbone cleavage CH 2 CH 2 CH 3 + O C O Rx Rx H + CO 2 Rx CH 3 + 2H 2 O + H2 according to un saturation level Cn/Cn+1 3 somerization and Hydrocracking to control cold flow properties and carbon chain distribution #enewa-Ie paraffins #enewa-Ie fueIs cost structure. It is a feedstock game! Feedstocks 1% Hydrogen 2% Utilities 2% Production Overhead 2% nterest & Depreciation 6% Licensing Fee 2% Target RO on Plant 5% Production osts per aIIon of renewa-Ie jet fueI 0 50 100 150 200 250 300 350 400 02 03 04 05 06 07 0 09 1 11 $ / - - I $/I- Current crop oil price Igae promise : Large Iipids (veg. OiI) production OiI yieIds Source unknown, -ut wideIy used ta-Ie. It is on te Internet so must -e true. OiI yieIds Source unknown, -ut wideIy used ta-Ie. It is on te Internet so must -e true. %e pitfaIIs of aIgae Algae are deceptive because they are very good at pigment production ven in best conditions (much) less than 1 gram (db) biomass per liter! Physical and biological processes prevents higher concentrations Key differences with conventional crops: Dilution Fast growth requires continuous harvesting Storage is not viable Nutrient delivery Wat are te reaIistic -iomass yieIds? 22 t starts with solar radiation Only 45% of solar radiation is photosynthetically active (PAR) The maximum teoreticaI and termodynamicaIIy Iimited conversion of PAR into biomass is 27% ence te maximum teoreticaI yieId of soIar irradiation into -iomass energy is 12% n real life most common <1% highly productive corn hybrids are ~1% aiming to 3 to 4% 5 to 10% may be possible in future but not without extensive use of genetic engineering Under these conditions it becomes difficult to reconcile some of the large yield numbers that are proposed. For comparison PV efficiency are: PV cells ~ 10-15% ExampIe of -iomass production potentiaI - we get -ack to tis Iater. 23 . and remember 10% efficiency is RALLY good. Best US potentiaI - US Soutwest 141 t/ac 74 t/ac of C - > 271 t/ac of CO2 112 t/ac of N -> 24 t/ac of Urea (CH4N2O2) 30 kg/ac of P -> 1 ton/ac of Ammonium Phosphate (H12N3O4P) Slightly reduces stoichiometric need of ammonia Algae biomass composition example Source: Phyllis Database Productivity in controIIed Ia- conditions of some non-gmo aIage strains Source: Prof Mario Tredici University of Florence, taly <<1% ds Note the tradeoff between total biomass and lipid yields <<1% ds Note the tradeoff between total biomass and lipid yields ow tat transIates in oiI productivity per acre? 26 Say: 86 mg/It/day productivity of oiI Igae grow in te smaII Iayer were Iigt can penetrate, around 10 cm dept ence 8.6 gr/m2/day of oiI Biomass is 28 gr/m2/day Over a year tat transIates into tis oiI production: 28,260 It/a/yr 3026 gaI/ac/yr This under the best laboratory conditions! Challenging to be easily and consistently reproduced in large scale. This under the best laboratory conditions! Challenging to be easily and consistently reproduced in large scale. #eaIity ceck! %ermodynamics are not an opinion! 500 to 3500 - 5000 500 to 3500 - 5000 Still good, but where, at which cost and what are the challenges Basic fIow diagram of micro-aIgae processing Primary harvesting step Concentration, may include more than one step More than 20% ds unlikely without physical disruption of cell wall structure and drying May require drying to get to oil concentration high enough for oil extraction May require additional treatment step to disrupt cell wall structure and facilitate separation Current oil extraction approaches (eg solvent extraction) work fine but not optimal for relatively low fat content We need to reduce the need for drying IittIe exercise to visuaIize and quantify diIution impact on cost A regulation Olympic pool 50 m x 25 m x 2 m 2,500,000 liters 661,375 gallons Now tat we know ow muc water we ave.. Let's assume: That the same amount of water in an Olympic pool is used in a raceway pond 50 cm (16 ft) deep That is a growing area of 5000 m2 or 127 ac Very good but not impossible - productivity values 20 g/m2/day 30% lipids That means: 100 kg (220 lb) of biomass per day 33 l (7 gal) of oil per day 2,500 gal/ac of oil yield In order to produce 8.7 gaI of oiI we need to process 661,000 gaIIons of water EVE# D Some -ack of a smaII enveIope caIcuIation Pumping cost for 661,000 gpd Pumping cost ($/hr) = 0746 * F_gpm * H_ft * P_cost/(3960 * _p*_m) Assuming: $007/kWh 10 ft head $10/day or $0.20/gaI of oiI Net of capital cost Primary concentration 661,000 gpd to 1322 gpd gnore costs and energy demand Secondary concentration 1322 gpd to 500 gpd Centrifugation of 1322 gpd 500 gpd product (20% ds) 1/3 to 2/3 hp centrifuge $0.07/gaI of oiI Net of capital cost Dewatering 500 gpd @ 20% ds 6% oil content Remove enough water to be at 10% oil, 72 gpd 72 gpd -> 52 lb of water @ 1000 BTU/lb -> 52,000 BTU/day Assuming gas at $4/MMBTU $232/day or $0.26/gaI of oiI Net of capital cost and efficiency factors n this extremely simplified circumstances already the processing cost is > $0.50/gaI nergy inputs: 256 kWh/day nergy yield of oil 307 kWh/day 2/3 of oiI energy aIready Iost! DetaiIed num-ers indicate tat a <$1.00/gaI faciIity is nowere insigt Economic Parameters Desired rate of return 1000% Depreciation years 10 Analysis Period (years) 20 Tax Rate 4000% Capital Recovery Factor 0117 Present Value Depreciation 0614 Fixed Charge Rate 014 Igae Pond OperationaI Data Pond Depth cm 20 Single Pond Area ha 10 vaporation Rate cm/day 0591366243 Area Productivity g/sq m-d 10.93990123 Pond Algae Concentration g/l 0.38934736 % Lipid Content 15% Total Pond Area (incr 10 ha) 1,000 Single Pond Flow lpd 2,09,05 Total Pond Flow lpd 20,90,491 Pond volume liters 20,000,000 Retention Time days 7 Oter Inputs lectricity Cost $007 Power Plant Recov CO2 Cost oper mt $5046 Natural Gas Price per MMBtu $651 Soy meal price per mt $2033 Land Price per acre $3,00000 Total to Pond Acres 150 Water Price per acre-ft $2196 Water Price per cu m $001 Kadam (1997) cost $4000 nflation adjusted $4946
Total Biomass Production 1,504,236
Total Oil Production 1,45,42 Total Capital $7,164,222 Total Operating Cost $13,706,21 Capital per Annual Gallon $5262 Oil (gal)Algae ( mt) Pond (ha) Annualized Capital $777 $320 $11,541 Operating Cost $923 $30 $13,707 Total Cost $1700 $699 $25,24 Credit Algae Coprod $277 $114 $4,110 Credit lec $000 $0 $0 Net Cost $1423 $5549 $21,137 CO2 from flue gas Dedicated algae ponds Primary dewater: belt filter Secondary dewater: centrifuge Drying natural gas Hexane solvent extraction Basic economics of a faciIity for 1.5 MgaI/yr (sources: Jon Seean - U of MN and Ben Wu - Sandia NationaI La-s) %e -iomass diIemma Power Liquid fuel eg cellulosic ethanol %e -iomass diIemma Biomass (Bio)Chemical Conversion Liquid Fuel Oil Combustion Power Coal Cars (LDV) Grid Users %e -iomass diIemma Biomass Chemical Conversion Liquid Fuel Oil Combustion Power Coal Cars (LDV) Grid Users 1 dry ton $0 16,00 M 70 gal tOH 9,960 M $210 @ $3/gal/60% eff ~ 50 gge 66 kg of CO2 ~ 0 tce 2,040 kg of CO2 gge=gallons of gasoline equivalent tce=tons of coal equivalent 1,400 kWh 5,100 M $9 @ $007/kWh - 30% eff ueI is onIy a component of a transportation system BOMASS POWRD! %e -iomass diIemma Cost of CO2 -$20/tonne -1 gal of gasoline (~30 $/gal) -> kg of CO2 ->$017/gal (+5%) -1 ton of coal (~55 $/ton) -> 2,547 kg of CO2 -> $501/ton (+100%) Biomass (Bio) Chemical Conversion Liquid Fuel Oil Combustion Power Coal Cars (LDV) Grid Users 1 dry ton 16,00 M ~ 50 gge 440 kg of CO2 ~ 0 tce 2,040 kg of CO2 1990 M 20% dte 11% ese $010/M 4335 M 5% dte 25% ese $002/M 70 gal tOH 9,960 M $210 @ $3/gal/60% eff 1,400 kWh 5,100 M $9 @ $007/kWh - 30% eff dte = drive train efficiency ese=energy service efficiency %ings may not -e -etter wit "advanced" -iofueIs.. thanol C6H12O6 -> 2 CH2H2OH + 2 CO2 (051/049) 1472 M, 064 lt Butanol C6H12O6 -> C4H9OH + 2CO2 + H2O (042/04/01) 134 M, 051 lt n-Octane C6H12O6 -> 04 CH1+217 CO2+163 H2O (030/053/017) 1333 M, 042 lt thylbenzene C6H12O6 -> 057 CH10 + 142 CO2 + 314 H20 (033/034/031) 1350 M, 03 lt One kg of glucose of glucose can give us: #etink te assumptions.. Production and transformation systems can be very distant in high energy density systems .. %ey need to -e cIoser wen te energy density is Iower Energy in a -arreI of oiI.. 1 -arreI of oiI equivaIent (-oe) 6.1 J IdeaI -iomass production potentiaI wit aIgae 42 500 boe 150 boe 1 ha = 247 ac . cIoser to ome: corn stover About 10 tons db per year per acre Based on average 150 bu/ac of corn (56 lb/bu @ 15% moisture) Theoretical energy availability Heating value ~ 000 lbu/lb, dry basis 16 MMBTU/ac or 177 G (30 boe) Typical constraints Biomass 15% to 30% moisture at harvest More if left on the ground longer Max 50% of biomass available to preserve soil health High bulk density (3 lb/cft) Wic pat to foIIow? Sustainable transportation should be addressed from a comprehensive point of view that includes the whole supply chain including the demand side Technology advances, need to be evaluated across the whole supply chain New feedstock, new molecules, new drive trains, new transportation options By reducing liquid consumption we can meet blending level with lower volumes Societal factors are important SocietaI factors?.. Land usage and global resources Food vs fuel Water and land disposition Fossil fuels dependency of global agricultural system Phosphorus and nitrogen supply Actual carbon footprint De-carbonization of the economy LCA approaches nergy independence diversification and energy policy goals Transportation policy Public vs Private Societal and human issues Urban development Personal freedom Work attitudes .. possi-Ie pat forward for -iofueIs Biofuel R&D should focus in the area where the need of a high density liquid fuel remains critical and electrons cannot be a replacement We cannot win on the supply side alone The need of gasoline blending stock remains, but is moderated by the reduction in consumption and the trend towards electrification As the overall volume is nonetheless increasing we need to have better integration with the existing energy infrastructure Biofuels needs to be valued by their energy value and not by the volume Key sectors: Aviation Fuels and HDV (aka large trucks) et Fuel (Kerosine) and Diesel Middle distillates (C10-C22 range) Strong and growing demand especially in BRC economies No clear replacement of drive trains to reduce dependency on liquid fuels ey areas of deveIopment BOMASS SPARATON AND PRTRATMNT Simple Sugars Polysaccharides Starch Cellulose Hemicellulose Lignin Lipids THRMAL PROCSSNG Alcohols thanol Butanol Cyclic hydrocarbons Fatty acid methyl esters Bio-SPK Pyrolysis oil Syngas Hydrocarbons MeOH, DM, MTG, FT fuels HARVSTNG thanol Hydrocarbons ALGAE New land crops Virent LS9 Amerys Coskata Range Fuels UOP NESTE COP COP/ISU UOP GTI Evergent Gevo Mascoma Other Solazyme Saffire Aurora and many more Choren Rentech noter -iofueI diIemma. for te investors Product Differentiation Operational fficiency Technology driven Commodity driven High Margin High Volume noter -iofueI diIemma: wat is te -usiness modeI? Product Differentiation Operational fficiency Technology driven Commodity driven Second Generation Biofuel Companies We are just -eginning... " Voyages of discovery are made not -y seeing new pIaces -ut -y aving new eyes" MarceI Proust