biofuelsin thailand: a leap toward...

Biofuels in Thailand: A Leap toward Sustainability Anurak Winitsorn, D.Eng.

Researcher

Petroleum Products and Alternative Fuels Research Department

PTT Research and Technology Institute

Renewable Energy Asia 2013

June 5, 2013

Disclaimer

• The information contained in our presentation is

intended solely for your personal reference only. In

addition, such information contains projections and

forward-looking statements that reflect our current

views with respect to future events and financial

performance. These views are based on assumptions

subject to various risks and uncertainties. No

assurance is given that future events will occur, that

projections will be achieved, or that our assumptions

are correct. Actual results may differ materially from

those projected.

Outline

• PTT RTI Introduction

• Biofuels in Thailand

• Grand Challenges of Biofuels

• PTT Biofuels Development

3

Outline

4





PTT RTI Evolution

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Research & Development Department

(1981)

Research &

Development

Center

(1993)

Research

& Technology

Institute

(1997)

State Enterprise

High Performance

State Enterprise

PTT Public Company

Multi-National Company

Mr. Tongchat Hongladaromp

Mr. Anat ArbhabhiramaMr. Luen Krisnakri

Mr. Pala Sookawesh

Mr. Viset Choopiban

Mr. Prasert Bunsumpun Mr. Pailin Chuchottaworn

TAGNOC

RTI Vision

Become a national Energy, Petroleum and Petrochemicals Research Institute to support the PTT Group and Government Policy by creating Business and Social Value through Innovation and Breakthrough Technologies with Environmental Consciousness

� Research and Development on Energy, Petroleum and Petrochemicals� Technology Provider for PTT Group� Technological Knowledge Center for PTT Group

Vision

Mission

� Create Competitive Advantage through Differentiation throughout PTT Value Chain� Networking / Collaboration / Partnership / Joint Venture / � Alliance with Academic, Industry, Research Center� Merger & Acquisition for the right-time business need

Strategy

PTTRTI Organization Chart

Energy Application Technique and Engine Lab Department

• Energy Efficiency, Conservation & Application • Engine Lab• NGV Research• Research Facility Operation & Maintenance

Environmental Research and Management Department

• Environment Assessment• Treatment Technology• Waste Utilization

Research Planning and ManagementDepartment

• Research Planning & Project Management• Analytical Technology & Knowledge Management• Analytical Business Research• Intellectual Property Management & Foreign Affairs

Petroleum Products and Alternative Fuels Research Department

• Fuel• Transportation Lube• Industrial Lube & Specialty• Biofuel Process Technology

Process Technology Research Department

• Catalyst Research• Purification Technology Research• Polymer Research• Process Research

PTT RTI EVP

Geo-science and Petroleum Engineering Research Department

• Unconventional Reservoir Exploitation• Conventional Reservoir Exploitation• Material & Chemistry for Asset Integrity• Chemicals for Gas & Oil Field / Process

• RTI Quality, Safety, Health & Environment Division

PTT Innovation Park Construction Project

• Project Management Unit• Engineering and Architecture Unit• Construction unit

Total Manpower 151 persons

PTTRTI Area Outline in Wangnoi District, Ayutthaya

Central Building

Analytical Lab

Fuel & Lube Lab

Engine Test Lab

Utility Building

Biodiesel Pilot Plant

Hydroprocessing PlantProcess & Petrochemical Lab

Aerial photo from google.com

Wangnoi Training Center

PTT Innovation Park

PTT Innovation Park Master Plan

Utilities & Central Storage Bio-Technology

Polymer Processing

Energy Application

Cellulosic Ethanol Hazardous Chemical Reaction

Outline

10





Thailand government also have an ambitious

alternative energy/fuel target

11

Thailand’s Alternative Energy Development Plan 2008 - 2022

Source: Thailand's Renewable Energy and its Energy Future : Opportunities & Challenges, Ministry of Energy, August 2009

12

PTT Role in Biofuels� We continually support the government policy on promoting biofuels by introducing Gasohol to

the market since 2001.

� We aim to increase PTT Blue Gasohol E20 over 600 station within this year.

Source: PTT

2001 2007 2008 2008

Gasohol Situation in March 2013

Gasohol

ประเทศ ปตท. ส่วนแบ่ง

Gasohol 95 8.96 2.99 33%

Gasohol 91 9.11 3.65 40%

E20 2.33 1.52 65%

E85 0.243 0.048 20%

Total Gasohol 20.64 8.21 40%

เบนซิน 95 1.85 0.712 38.6%

เบนซิน 91 0.20 - 0%

Total 2.04 0.71 35%

รวมทั)งหมด 22.68 8.92 39%

Mar

Gasohol and Benzene(Unit: MLPD)

Ethanol demand (MLPD) Thailand PTT

Average 2.48 1.01

% Ethanol 10.93% 11.31%

There are 21 ethanol plants (capacity 3.89

MLPD; actual average production 2.63 MLPD)

PTT is supplied from 16 producers (average

supply 1.00 MLPD)

Ethanol price from EPPO

on March 2013 = 23.36 BPL

PTT PTTRM

Gasohol 95 2.49 0.50

Gasohol 91 3.00 0.65

E20 1.35 0.17

E85 0.05 -

Situation of High-speed Diesel in February 2013

High-Speed Diesel (Unit: MLPD)

Demand B100 (MLPD) Thailand PTT

Average diesel 2.99 1.04

% B100 4.86% 4.73%

PTT* = PTT + PTTRM B0 = 0.55 B5 = 17.57+ 2.06

B100 price (EPPO) March 2013

= 28.47 BPL

16 plant of B100 (capacity 6.46 MLPD; actual

average production 2.40 MLPD)

PTT is supplied from 9 producers (average

supply 1.00 MLPD)

� MOE defined that from 1 January 2012 onwards, the proportion of B100 in diesel fuel must not be less than 4.5 % and no

higher than 5 %.

� MOE announced a new diesel fuel quality, which determines the proportion of B100 is not less than 3.5 to 5.0 percent by

volume (from 4.5 to 5.0) and will be effective from 19 July 2012.

� From 1 Nov 2012, MOE adjusted scale of B100 mixing from 4.5 to 5.0 instead of 3.5 to 5.0 by volume.

� As of March 2013, the proportion of B100 in HSD equal to 5%.

Current Situations :

DIESELMarch

Thailand PTT Market share

B0 1.73 1.2 69%

B5 59.75 20.82 35%

Total 61.48 22.01 36%

Current Biofuel Options

Biodiesel

- Feedstock : Palm (CPO, RBDPO, Stearin, Used Cooking Oil, etc.)

- Process : Transesterification

Ethanol

- Feedstock : Molasses, Sugarcane Juice, Cassava, Sweet Sorghum

- Process : Ethanol Fermentation (Yeast)

Biogas

- Feedstock : Waste Water, Manure

- Process : Anaerobic Digestion

Bio-power/heat

- Feedstock : Bagasse, Empty Fruit Bunch, Rice Husk, etc.

- Process : Gasification + Steam Turbine/Boiler or Direct Combustion

Alternative Energy Development Plan (2012-2021)

Source: Ministry of Energy, 2012

Outline

17


• History of Biofuel in Thailand

• Grand Challenges of Biofuel

• PTT Biofuel Development

Challenge 1 : Scale and Feedstock AvailabilitySince land and resources are limited, do we have land for more bioenergy?

18Source: https://www.cia.gov/library/publications/the-world-factbook/geos/th.html#Geo

Item Thailand

Total Area 513,115 sq.km. (320,696,888 Rai) (51MM ha)

Land 511,770 sq.km.

Water 2,230 sq.km.

Arable Land 141,132 sq.km. (88,319,923 Rai)

Item Thailand

Palm (2007) 5,116 sq.km.(1% Land) (3,197,625 Rai)

Sugar Cane (2007) 9,931 sq.km. (2% Land) (6,207,000 Rai)

Rice (2006) 107,374 sq.km. (21% Land) (67,109,000 Rai)

Cassava (2007) 11,966 sq.km. (2% Land) (7,479,000 Rai)

4 main crops 123,620 sq.km. (77,262,625 Rai) (88% of Arable Land) (15% of Total Area)

Thailand dedicated 88% of Arable Land to 4 major crops

For energy purpose, do we still have some rooms?

Source: Office of Agricultural Economics

Scale and Feedstock Availability

• Quick Calculations

• Plants– To produce liquid biofuel 1,000 TPD

– Assume 1 kg biofuel comes from 10 kg feedstock

– 1 day requires 1,000T x 10 = 10,000 TPD

• Feedstocks– Case of Rice Straw

– 1 rai (1,600 m2) produces 0.5T rice straw within 6 months

• Therefore, – 1 day � 10,000T � 20,000 rai/day � approx. 6,000,000 rai per 6 months required

– Thailand plants 60 million rai � 10 plants maximum capacity � 10,000 TPD potential

• However, how to manage to transport 10,000T of rice straw is another story. Set aside, the problem that we have to store feedstock for 3-7 days. � 30,000 – 70,000T storage ?

• Also, harvest/post harvest technologies are also required for low cost transportation : Pelletization?, Drying?, Grinding?, Single-pass Harvesting, etc.

Challenge 2 : Better Environmental ImpactsCases : Bioethanol LCA

20Source: http://www.afdc.energy.gov/afdc/ethanol/emissions.html

� The right configuration and energy source of biofuel production plant will results in “good”

CO2 emission

All global indirect GHG emission from

biofuels need to be account such as

Indirect Land Used Change (ILUC)

Challenge 3 : Acceptability

1st Generation

Oxygenated Biofuel

2nd Generation

Oxygenated Biofuel

2nd Generation

Hydrocarbon Biofuel

Cost Lower

(still higher than fossil

counterparts)

Higher Higher

Scale Large Large Large

GHG reduction Moderate (except

sugarcane � high)

High Moderate

Acceptability Upto some limits Upto some limits

(Blend Wall)

Full

Status Fully commercialization

(still developed)

R&D and

Pilot-scale

Demonstration

R&D and

Pilot-scale

Demonstration

Examples � Sugarcane ethanol

� Palm Biodiesel

� Cellulosic

Ethanol/Butanol

� Jatropha Biodiesel

� Synthetic Green

Diesel/Gasoline (BTL)

� Jatropha/Algae BHD21

� For acceptability, hydrocarbon biofuel will be more acceptable by OEMs, Refinery,

and Users

� Currently, most oxygenated biofuel components are accepted widely by users

0

0.2

0.4

0.6

0.8

1.0

1.2

0 20 40 60 80

Biofuel production costs versus gasoline and diesel pricesPrice/Production cost ($/litre)

Average IEA crude oilimport price ($/bbl)

Maize

Beet

Wheat

Sugar-cane

Ligno-cellulosic

Veg-oil

Animalfat

FT-synthesis

Ethanol Biodiesel

2005

2030 IEA

2030 ECN

2030 BioJoule

2030 Biodiesel

Gasoline

Diesel

Source : Boston Consulting Group

Challenge 4 : Competitive CostTypically, biofuel price is higher than its petroleum counterpart

1. Biodiesel from vegetable oil is always more expensive than petro-diesel

2. Ethanol is considered to be competitive with gasoline (Brazilian experience)

Challenge 4 : Competitive Cost (cont.)Progress has been made significantly, but the competitive one is yet to come

23Source: GHG Emission Reductions With Industrial

Biotechnology, WWF & Novozyme, 2009

2000 2009

~4 USD/Gallon

Reduction

Outline

24


• History of Biofuel in Thailand

• Grand Challenges of Biofuel

• PTT Biofuel Development

PTT and 1st Generation Biofuel

PTT always support government policy on biofuel implementation

• Clearly in our business

• TOL and Bangchak Biofuel � FAME production including Fatty Alcohol and Refined Glycerine

• Maesod Clean Energy and TOP Ethanol � Ethanol production

• PTT Green Energy � Palm Plantation and Palm Refinery in Indonesia

• PTT � upgrades Biogas from Pig Farm for use in NGV

• Clearly in our products

• PTT Gasohol E10 plus, E20 plus, E85 plus

• PTT B3 and PTT Biodiesel B5 Plus

PTT is also working on higher blend of biofuel mainly on diesel products

25

PTT and 2nd / Advanced Generation Biofuel

26

• R&D is leading the way

• PTT Group is working on Advanced Biofuel Project

i.e. Bio-Jet/BHD and 2nd Generation Ethanol

• PTT RTI: Investigating and Developing 2nd generation

biofuel technologies

– In order to address the 4 grand challenges, it is required to

develop from feedstock through processing to product

Feedstock Process Product

PTT Biofuel and Bioenergy R&D Program Overview

PUBLIC

Feedstock Process Product

• Cellulosic Ethanol• FAEE • Bio-hydrogenated Diesel / Bio-Jet • BTL (ThermochemicalPlatform)

• Jatropha• Microalgae• Short Rotation Biomass Crop and Agricultural Residues (Higher yield, non-edible, non-arable land capable, low-input and sustainable are all required) and Logistics Management

Bioenergy

• Biomass : Biomass Solid Fuel / Biomass Torrefaction and Pelletization• Biogas : Compressed Bio-methane Gas (CBG)

• ED 95• Diesohol• Higher Blend of Biofuelmainly Diesel Product • Bio - jet

Biofuel

Good Partnership

Microalgal Biofuel Technology

• MU

• KMUTT

• TISTR

Screening and Optimization

• BIOTEC-CU

• KMUTT

• TISTR

• PTT (pilot)

Cultivation and Harvesting

• BIOTEC-CU

• KMUTT

• MU

Extraction

• PTTRTI with Partners, e.g. CU, KMUTT, TU, PPC, KMUTNB

Processing & Formulation

• Memorandum of Collaboration on the development of Microalgal Technology was signed

by 6 Parties (PTT, CU, MU, KMUTT, BIOTEC (NSTDA), and TISTR) on 14 September 2010

• Under the MOC, we aim to commercialize the Microalgal Biofuel Technology by 2018

targeting both biofuel and key by-products.

Jatropha Curcas

Partnership with Kasetsart University

Year (gate) Crude Jatropha Oil

(CJO)

Bench/Pilot Size Assumptions

2012

(Gate 1)

> 600 kg Oil/rai/y

(plot trial)

Multiple areas of pilot

trial

(~ 1 ha each)

Oil yield 35%

(1st year yield should > 210

kg oil/rai/y)

(4 months) Young Jatropha is fruiting Pilot Trial

Short Rotation Biomass and Logistics

• Cost and logistics method was

studied and concluded for rice

straw and sugarcane leftover.

• Future plan is to have integrated

model and system suitable for

Thailand both ag. Residues and

dedicated biomass crop .

• Low cost Short Rotation Biomass

crops and plantation system are

developed.

• Future � Non-arable Land trial

in Thailand and integrate with

other biofuel process

development (BTL, CE).

Short Rotation Biomass

Logistics Management

Bio-hydrogenated Diesel / Bio-Jet

Source: UOP and PTT Internal Analysis

• At PTT RTI, we are investigating options for Bio-

hydrogenated Diesel and Bio-Jet. ( both are

hydrocarbon biofuel )

• PTT RTI is working with our refinery group e.g.

TOP, PTTAR, and IRPC for the Bio-Jet/BHD

commercial project.

• PTT RTI is also investigating option to produce bio-

oil suitable for existing refinery technology with

multiple partners.

Upgrading

Crude Bio-oil

Pyrolysis

Biomass

Product

Separation

Pyrolytic Renewable JetGreen DieselOthers

Green Gasoline

�PTT RTI

�Hydrocarbon

Pilot Plant for BHD

and Bio-Jet Trial

Cellulosic Ethanol

PUBLIC

Biochemical Platform Laboratory/Pilot Capabilities

• Multiple fermentors for optimization

• Mini-pilot fermentor for engineering data

• Biosensor for rapid measurement

• Bioprocess Simulation for design, scale-up and cost estimation

Key Development1. Low Severity Pretreatment Technology for Local Biomass (With TISTR)

2. Develop technologies for Simultaneous Saccharification and Fermentation (SSF)

3. Ethanol for agro-industrial waste (with Thai Oil Ethanol & PTT Green Energy)

4. Cellulosic Ethanol Pilot Plant at PTT-RTI (Construction in early 2012)

Create “cost reduction” and “value added” technologies in producing “bioethanol from Thai

biomass”

Key Facts about Current Alternative Fuel

(Biofuel in particular)

• Liquid biofuel

– Currently produced from food derived feedstock

– In most cases, cost higher than its counterparts

– In general, give better environmental impacts especially

CO2 reduction; some other impacts may be positive or

negative case by case

– HC Biofuels (2nd and higher generation biofuels) obtain

more acceptable from OEMs

– More work on R&D have to be done to achieve new AEDP

target

Thank you

for your attention

AnurakAnurakAnurakAnurak W. W. W. W.

(Anurak Winitsorn, D. Eng.)

Researcher

PTT Research and Technology Institute

PTT public company limitedEmail: [email protected]

Q&A SESSION

biofuelsin thailand: a leap toward...

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