Agenda

Background – Bioresources/Renewable Energy

Overview – Bioresources inc Investment

Growth Potential – future investment opportunities, innovative approaches

NEPIC Innovation Day

Ramside Hall – November 15, 2011

 

NEPIC – strategic deliverers for public sector funded (RDA) Regional Biofuels Project

£1.7M public sector funding April 2008 – March 2011

Co-incided with UK legislation – RTFO; European legislation - RED

Sustainability criteria

Vision – for NE to become a global hub for biofuels/renewable energy

Underpinned by a number of strategic initiatives

In order to build critical mass, recognised the need to focus on a wider bioresources sector incorporating fuels, heat, electricity, chemicals/materials.

Background

 • 30% electricity, if all wind, will require ~15,000 turbines

• 12% heat target, if met by biomass alone, will require ~20 million tonnes of wood in UK by 2020

• 10% transport target, if met by biofuel alone, will require ~6.5 billion litres bioethanol and biodiesel in UK by 2020

In all the above, opportunities exist.....

Size of Challenge – Scale of Opportunity

Business growth and investment…..innovation

NEPIC Leadership Team

Marketing

& CommunicationsManufacturing

& Productivity

North East Bioresources and Renewables – (NEBR)

PEG

TIG

Innovation

Skills & Resources Energy Supply Chain

Promoting the Northeast as a centre of biomass processing into fuels, energy, chemicals and materials.

Building Low Carbon Economy in NE – existing projects

 

Building Critical Mass in North East England

Building Low Carbon Economy in NE - additional projects ?

Overview of Biorefining Classification System

International Energy Agency (IEA) Bioenergy Task 42 Biorefinery Document

 

Anaerobic digestion

Biogas

Combustion

Electricity

Pre-treatment e.g. Graphite

Resources

Gasification

Syngas

Fuels e.g.

Ineos Bio

Chemical Feedstocks e.g. Tees

Valley

Hydrogen e.g Air Products

SNG (NEPIC

feasibility study)

Organic Residues and Waste

Combustion

Electricity and Heat

Sembcorp/ SITAWilton 11

NWL

Lignocellulosic Crops and Residues

Bio Methanol

Digestate

Teesside CCS Project has been submitted by DECC to the European Commission under the NER300 Process.

An IGCC process gasifying coal with carbon capture.

Options:

1.Generate syngas from high temperature gasification, convert CO to CO2 and capture (sequester or market opportunity eg EOR). -hydrogen then used to produce electricity. 2.Utilise green hydrogen as key feedstock for chemical producers in Tees Valley3.Utilise syngas stream as key feedstock for chemical producers in Tees Valley

Proposed Teesside CCS Project

10Rev 1.5, 07 November 2011

Biomass / Coal

Gasification

Syngas

Boiler

Power Gen

Steam&Power

Gas turbineCombined Cycle

IC Engine

Fuel Cells

RefineryHydrotreatingTransportation

fuels

Fuel cells

Chemicals

Fertilizers

Hydrogen

Fischer- Tropsch

Methanol

Ethanol

Formaldehyde Methyl Acetate Acetic Acid

DME

EthylenePropylene

Acetic Anhydride VAM

PVA

Ketene

Diketene & Derivatives

Acetiv Esters

Gasoline

Polyolefins

Oxy Chemicals

Wax

Diesel/Kerosene

Gasoline Naphtha

*based on information from ThermoChem Recovery International, Inc

Syngas Applications & Synergy For Tees Valley Chemical/Process Industry

2nd generationbiofuel

Heat and Power application

(Bio)refineries

MTBE

Biomethanol Opportunity From Biomass

. Through gasification, production of 2nd generation /advanced biofuel from woody biomass

Use of existing but redundant MeOH facility at Billingham

Option to produce at different scales – impact on volume but also cost

Could use 1, 2 or 3 gasifiers each processing ca 250K oven dry tonnes per annum.

Taking biomass handling, gasification, gas cleaning and methanol synthesis the investment ranges from £200M - £400M assuming use of existing methanol process infrastructure.

‘Green Product’ Demand

An increasing number of market sectors focussing on green products - examples include transport (biofuels), polymer production (packaging materials), construction industry (lower energy buildings) and specialities (cosmetics).

More and more suppliers are being asked to demonstrate ‘green credentials’ by leading high street brands e.g Coca Cola, Marks & Spencer,

Polyester (PET) bottles

m E.G + PTA

Ongoing/Next Steps Continue to seek and develop relationships with potential investors – build on NEPIC relationship with UKTI – India, Brazil, China, Russia, USA etc.

Address key areas of Policy, Feedstock/Finance

Maintain and build upon connectivity to supply chains – strategic thrust teams

Fully exploit opportunity of RGF SME bid

Lead partner and involvement in European Projects

LOCIMAP (Low Carbon Industrial Manufacturing Parks)UK, Scandinavia, Mainland Europe

Wood SNG (synthetic natural gas from woody biomass)Austria, Germany, Holland, Italy

Innovative Supply Chains for Low Value Forest Waste – pre commercial thinning’s and residues