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European Biomass Industry Association European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass Industry Association (EUBIA) 28 April 2010 BIOMASS STAKEHOLDERS FORUM

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Page 1: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY

Mr. Giuliano GrassiSecretary General,

European Biomass Industry Association (EUBIA)

28 April 2010 BIOMASS STAKEHOLDERS FORUM

Page 2: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

1. Refining a type of ligno – cellulosic humid Biomases into Agro – Pellets or torrified Pellets;

2. Production of Heat ( heating / cooling , cooking, industrial processing);

3. Production of Bioelectricity or Heat & Power. In particular:

- High level of Biomass – Coal Cofiring

- Cogeneration plants ( 2 MWe – 50 MWe)

4. Coproduction of Bioethanol & Biolectricity from sweet – sorghum / sugar cane ( 5 Mwe – 50 Mwe and 6 m3 of bioethanol/haxcycle);

5. Coproduction of Biogas & Compost from residues in a longer – term;

6. Bio – Hydrogen production;

7. Synthetic Diesel / jet – fuels ( fischer tropsch synthesis);

8. Industrial Commodities ( Metallurgical Characoal pellets, Bio – ethylene, Composite materials , Bio – methanol, D.M.E., etc...).

Promising Markets

Page 3: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

1 - REFINING HUMID BIOMASSThe Huge Amount of annual Biomass produced world – wide ( ~ 80 Billion

TOE / y) requires a considerableflow of water crossing th plants ( 200 – 1,000 li / cyclex Kg of biomass produced. After harvesting 50 % of fesh crop is water content; therefore 50 % of fresh Crop is water content; there fore Biomass is biologically unstable, degrades more or less fast emitting GHG ( methane, CO2).

Thus the necessity ( especially for large – scale utilisation / trading) to refining humid biomass to:

• - stabilize the feedstock;• - obtain a “ bioenergy solid commodity” of general utilisation• At present two types of Refining Processes can be envisaged:• - Pellets or Agro – Pellets Production , by drying &compactation;• - Torrefied Pellets or Bio – Coal – Pellets Production , obtained by a mild

carbonisation of biomasses.

Page 4: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Pellettisation is a well known technology ( many technologies available since one century) and has reached an high – level of performances / quality based on pre – drying biomass up to 14 % followed by compactation;“ Agro – Pellets” is a new , very attractive refing technology , because:- can process directly humid – biomasses ( with a m.c. Of ~ 30 %);- can process also any kind of biomass mixtures without the addition of other compound (blending of different biomass is easy);The quality and density of Agro – Pellets is very high ( 800 Kg / m3 : Bulk density ), reducing the logistics costs.

Modern Pelletization technology

Page 5: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

• The energy processing needs are lower of other conventional technologies as summerised here below:

• Considerable production cost saving can thus be obtained by the new “ Agro – Pellets” technology. Assunig an electricity industrial supply prices of 0.1 / Kwhe and the production cost of Agro – Pellets of 100 € / ton , an Operation Annual Saving of 330,000 € / year ( 470,000 $ /y) can be obtained in a 5 t/h plant;ManPower Requirement ( Unit 5 -10 t /hr):

• - 3 Operators x 4 shift / day;• - 1 manager per week;• with a total of 13 persons / week and 7 days / week operation.• In general 7,000 hr / year are considered in the economic evaluation.

Modern Pelletization technology

Page 6: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

• Indicative Investment Costs ( 2009) are:• - 5 t / hr plant• - 10 t / hr plant: ~ 3,2 million € ( complete plant)

Installed Power ( Higher than Operational Power):- 2 t / hr plant: 370 Kwe- 5t / hr plant: 687 Kwe

NEW Pelletization technology

Page 7: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

HIGHLY REFINED “TORRIFIED” BIOMASS • Torrefaction of Biomass is a a mild – carbonisation process carried out at ~

250 / 280 C in an inert atmosphere ( to avoid combustion)• Benefits derived from the torrefaction Up – grading• Loss of moisture ( max 4 % ) and Acyd – Acetic, precursor of corrosion and

tar formation;• Increase of the specific heating value of the feedstock upto ~ 5,200 Kcal /

Kg;• Increase of the energy density of bulk refined biomass ( lower logistic

costs); ~ 20%• The feedstock bbecome hydrophobic ( easy storage);• Refined product more brittle and easy to grind ( similar to coal)• More homogeneous fuel from different biomasses

Page 8: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

CRITICAL ISSUES ( Torrefaction ) :

• High productivity: 10 -20 t /hr ( fast processing);• Accurate temperature process control;• Uniform temperature of Bulk feedstock;• Low processing & maintenance costs;• Low process material / energy losses;• Possibilty to refine different types of feedstock• Concept ( Three Stages Process) - Biomass:

1) Drying 2) Heating 3) Torrefaction

Page 9: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

ECONOMICS (Indicative data)Investment ( 5 -10 t /h capacity): 4 -7 M€Processing Cost ( Torrified Pellets ): 20 – 50 € /tPRESENT SITUATIONVery Wide., Diversified, Technology or

Torrefaction at present under way around the worls.

Commercial Technology is not yet available ( 1- 2 years);FUTURE CONTEXT: The combined Refining

Processing of Pelletisation & Torrefaction is vital for large scale utilisation-trading

Page 10: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

UTILISATION OF TORREFIED PELLETS

• Most to promising markets are:• Bioelectricity by cofiring;• BTL production by Fischer – Tropsch Synthesis;• Torrified pellets for metallurgical uses;• Bio – Hydrogen production;

Utilization of Biomass

Page 11: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

2 - Production of BioheatContext:In the EU 40% of the energy consumption is for production of heat.The CO2 emission reduction targets for the EU ad for the year 2020 are:

• 27% for the residential heating sector• 19% industry sector

• Biomass can play and will be asked to provide a considerable contribution: 120 MTOE/y in the year 2020 – 180 MTOE/y in the year 2030

Utilization of Biomass

Page 12: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Typical Utilization:

Heating of houses & commercial building by chips and wood pellets. The 2009 market volume in the EU is as follows:

Chips:use around the world, ~ 20 Million ton/yPellets: ~ 10 Million ton/y (EU – 2010)

District Heating of village / towsMost in North Europe (long cold seasons) Heat/Steam production for industrial

processing: In particular the replacement of steam coal with steam biomass has huge potentialities (and perspectives due to large impact on the world CO2 emission mitigation (~1.5 t of CO2 reduction for each ton of dry biomass replacing a conventional fuel)

Page 13: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Typical CO2 emission from:

• Cement Factories: ~ tCO2 /tCement (1 bill t cement/y).• Steel Factories:~ 3tCO2 /tsteel (1.2 bill steel/y).• Power Plants (coal): ~ 1kg CO2 / KWhe (18000 bill Kwhe/y).• Oil Refineries: ~ 0.5 tCO2/t oil (3.5 bill t/y).

The heat production can be utilised also for air conditioning/cooling/freezing.Biomass boilers for solid biomass are since long time on the market in very

diversified forms. Their price vary between 200-500 €/kwth. For the use of pellets the present maximum power capacity of burners is 50 MWth

Page 14: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Heating value of biomass

Bulk density

Heating value Mj/d.kg

Beach/poplar/willow 18.4

Straw 17.2

Miscanthus 17.6

Pellets 16.9

Chips 12.2

Density kg/m3

chips 200-320

pellet 650-800

Log wood 300-450

Page 15: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

3 – Bioelectricity Production by co-firingCaoal the most polluting fuel provides a large contribution to the total world energy needs and for power

generation-in year 2010: 2.60 Billion TOE (21% of total primary energy)-in year 2020: 2.95 Billion TOE (19% of total primary energy)

Combusation of biomass with coal is the most efficient way of bioelectricity production now and in future due to high electrical efficiency of modern coal/power plants

Coal power plants

Year 2000 ~ 38% electrical efficiency

Year 2010 ~ 42% electrical efficiency

Year 2020 ~ 46% electrical efficiency

Page 16: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Possible level of biomass co-firingChips: ~ 8%Pellets: ~ 20%Torrefied Pellets: up to 100%

Options:Direct Co-firingIndirect co-firing (gassification of biomass)Parallel co-firing (separated boilers for biomass)

Coal Biomass CoFiring

Page 17: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Electricity from coal

year WORLD (TWh) EU (TWh)

2010 7.000 1.100

2020 9.500 1.500

2030 11.100 1.600

Large scale co-firing will require the production of agropellets from agro-forestry residues /energy crops and torrefied pellets20% of co-firing will require 200 Mt of agropellets/y

Potential market volume:Assuming an average co-firing level of 20% (at present possible in all type of coal power plants, using pellets)

Page 18: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Large Co-firing Power Plant 4,000 MWe (UK)

Economics and biomass availability limits at present full exploitation of its cofiring potential

Page 19: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Typical examples of Agro-pellets

Page 20: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Future priorities:

• Fuel quality & International standards• Refining Biomass Mixtures• Optimisation of logistics• New infrastructures (ports)• Diversification and security of Biomass supply• Benefits from Carbon credits• Green Certificates

Page 21: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

4 – Co-production of Bioethanol & Bioelectricity from Swet Sorghum

Why sweet sorghum?1) Motivation: large World Demand increased for liquid fuel and electricity

FORECAST OF INCREASED WORLD CONSUMPTION

(period 2005 to 2030)

2,20%2,60%

1,90%

1,10%

3,20%

2,30%

0,00%

1,00%

2,00%

3,00%

4,00%

% Annual Increase

Total primaryEn.Consumption

Liquid fuels Nat.Gas

Coal Electricity Co2 Emission

Page 22: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

High yield of bioethanol & Bioelectricity from Sweet Sorhum (especially in tropical areas)

Combined Productivity of Bioethanol and Power & Bio-Heat from different crops (average) [m3 of ETOH + KWhe + KWhth/ha.year]

m3 BIOETHANOL/ha KWhe/ha + KWhth/ha R: OUTPUT EN./ INPUT ENE.

Sugar-cane

ETOH : 6,0 m3/ha

KWhe : 17 000 Kwhe/ha - KWhth : 34 000 KWhth/ha~ 4

Corn

ETOH : 3,5 m3/ha

KWhe : 8 200 Kwhe/ha - KWhth : 16 400 KWhth/ha~ 1,4

Sugar beet

ETOH : 5,5 m3/ha

KWhe : 11 700 Kwhe/ha - KWhth : 23 400 KWhth/ha~ 1,7

Sweet sorghum

ETOH : 5,0 m3/ha

KWhe : 20 000 Kwhe/ha - KWhth : 40 000 KWhth/ha~ 4

Jerusalem artichoke

ETOH : 5,5 m3/ha

KWhe : 16 000 Kwhe/ha - KWhth : 32 000 KWhth/ha~ 4

Sweet potatoes

ETOH : 4,3 m3/ha

KWhe : 24 000 Kwhe/ha - KWhth : 48 000 KWhth/ha~ 2

Potatoes

ETOH : 2,3 m3/ha

KWhe : 8 200 Kwhe/ha - KWhth : 16 400 KWhth/ha 1,7

Wheat

ETOH : 2 m3/ha

KWhe : 8 200 Kwhe/ha - KWhth : 16 400 KWhth/ha~ 1,2

Rape

ETOH : 1,50 m3/ha

KWhe : 10 000 Kwhe/ha - KWhth : 20 000 KWhth/ha~ 1,3

Page 23: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Sweet-Sorghum is not a food crop but a multi-functional

(energy) crop, thus not a competitor crop for the food

market!

• Sweet Sorghum absorbs large amounts of CO2

(~45 t CO2/ha x cycle);

• 1 ltr of bio-ethanol saves ~2,2 kg CO2 (transport);

• Low energy, chemical inputs;~ 0.5 TOE/ha

• Respect of biodiversity in large plantations (wide range of varieties);

• Soil erosion loss (on marginal erodible sites) ~10 t/ha/y, within the tolerance level (11 t/ha/y);

• Biofertiliser production (compost) from Sweet Sorghum residues can improves the sustainability of cropping;

Why Sweet Sorghum?

Page 24: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Sugar cane

Sugar beet

Limit for cereals

Sweet Sorghum

70°

60°

52°

Vast Areas (agricultural, marginal, semi-arid lands) are available on all continents for S.S. plantation

AREAS WHERE SS COULD BECOME AN INSTRUMENT OF DEVELOPMENT.

Page 25: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

• For its high productivity (~100 fresh ton/ha) sugars and lignocellulosic residues are available at low cost (i.e. sugars ~50€/ton, residues: ~20€/ton) making possible a viable Co-production of bioethanol and bioelectricity.

• Since the growing cycle of S.S. is ~140 days, in tropical areas, two plantations per year are possible (10-12m3 ETOH/ha/y) with large increase of the ROI.(but sustainability considerations must be carefully taken in account)

• Optimized S-S. Biorefineries present a high Energy Ratio ( outputs/Inputs) ~5-7 is therefore very efficient for atmospheric

CO2 absorption and development (in future) of substantial Carbon Credits benefits.

High level of competitiveness of Sweet-Sorghum

Page 26: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Available Sweet Sorghum varieties with high yield of biomass(high economic value)

Productivity of Sweet Sorghum is similar to the sugar cane but the water demand is much lower (~ 1/3) and can be cultivated in temperate areas.

Page 27: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

2. Concept & scheme of Sweet Sorghum complex:

Integrated Bio-energy Complex:

Bioethanol can be produced at

250 €/m3

(South, Central, East EU)

Fuel-pellets for heating BioethanolFeed-pellets150,000 t 210,000 t 70,000 t

sweet sorghum plantation

harvesting

cane crushing

grain storage

grain drying

pelleting

bagasse

pelleting

bioethanol plant(fermentation / distillation / dehydration)

20,000 ha

Fuel-pellets for heating BioethanolFeed-pellets150,000 t 210,000 t 70,000 t

sweet sorghum plantation

sweet sorghum plantation

harvesting

cane crushing

grain storagegrain storage

grain drying

pelleting

bagasse

pelleting

bioethanol plant(fermentation / distillation / dehydration)

20,000 ha

Page 28: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

3. Possibility of a decentralised / centralised production

Decentralised Production

(≥ 6,000 m3/y)Centralised Production

(≥ 20.000m3/y)

Bioethanol Plants

Page 29: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

4. Large impact of sweet Sorghum on CO2 emission saving

Page 30: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

5. Co-Production of biogas compostWhy Biogas?

1) Great potential from wet organic wastes2) Decrease dependency of imported natural gas (60%of total)3) Versatile secondary energy carriers for:

– Bioelectricity – Injiection (after purification) into Natural gas pipeline– Vehicle biofuels

4) Significant environmental advantages in term of GHG mitigation and soil amendant availability (compost)

5) Large potential impact of rural sustainable development (new jobs new income)Concept: Different type of bacteria have the availability of breaking down

organic matter and generate biogas and biofertiliser

Page 31: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Matter %

Methane, CH4 50-75

Carbon Dioxide, CO2 25-45

Water vapor, H2O 1-2

Carbon Monoxide, CO 0-0.3

Nitrogen, N2 1-5

Hydrogen, H2 0-3

Hydrogen sulfide, H2S 0.1-0.5

Oxygen, O2 traces

Composition of Biogas

Page 32: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Biogas Feedstock

Manure Landfill

Energy crops Sewage Sludge

Landscape management Municipal Solid Waste

Grass Food waste

Conversion Time

The speed of the process is influenced by the composition of the feedstock:-Lignin: close to infinity;-Cellulose: several weeks;-Hemicellulose: few days;-Sugar, Fatty acids, alchool: few hours.

Page 33: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Versatile use..

Biogas:Production of electricity and heat (cogeneration)Production of electricity aloneProduction of heat alone

Upgraded Biogas (Biomethane)Injection in the gas gridTransportation fuelsHigh tech process energyRaw material for the chemical industry

Page 34: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Economics of Biogas:

Germany Italy

Kwe €/Kwe Kwe €/Kwe

CHP (gas engine) 150 900

CHP (gas engine) 250 740

CHP (gas engine) 500 560 Biogas plant 50- 100 5000-3000 200 4900

Biogas plant 100-350 3000-25000 500 3800

Biogas plant >350 <2500 1000 3200

Page 35: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Investment cost for Biogas (EU)

Investment

Small plants (50 m3

biogas/hr)Large plant (500 m3

biogas/hr)

only Biogas plant 5150 €/m3 per hr 3800 €/m3 per hr

Biogas plant + electricity generator 3000 €/kwe 1800 €/kwe

Page 36: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Page 37: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

European Biogas Market

Page 38: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

6. Bio-Hydrogen productionCould be produced commercially now at a reasonable cost from agro-forestry

residues:

• 2000 €/t via carbonization & steam reforming• Yield: 55 kg of H2/ton agripellet• Potential carbon credit: 200€/t H2 (for8 t/CO2)

For a country like Malaysia, large vegetal oil producer from palm oil plantation, BioH2 could be utilized for modern processing of biodiesel, as well for the glass industry, for metallurgical applications, enrichment of Natural Gas (pipelines).

Page 39: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Bio-H2 production processRenewable hydrogen can be

obtaied from biomass via - production of synthesis

gas from agropellets- production of synthesis gas

from bioethanol- production of synthesis gas

from biogas

New four steps Process for Production of Bio-H2 from Solid-Biomass

Humid Biomass (moisture 50%)

1,8 t

Agro-Pellets (moisture 10%) 1 t

Agro-pellets Charcoal ~270 Kg

Bio-Syn-Gas (67 Kg) [57% H2 + 14 % CO+ …] in

volume

99% Bio-H2 (52 Kg of H2)

1st Step

4th Step

2nd Step

3rd Step

ηen total ~ 40 %max

Pre-treatment process

Mechanical drying & Compactation

Carbonisation

Steam-Reforming (950 °C)

Co-shifting

Page 40: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Typical Bio H2 Yield

Agro-Pellets

Charcoal

Biogas

Coal

Oil

Nat. gas

Nafta

From Biofuels

From Fossil

resources

(via carbonization)

~ 18 t

7 t

~ 5 t

10.1 t

5.1 t

6,400 m3

4.8 t

1 ton H2

Bioethanol

10 000 m3

(via Torrefaction)

~ 11 t

Electricity ~50.000 KWhe

Page 41: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

H2 is of great interest because:

1°) Saves Energy for example in transport :

a) Gasoline car (average 13/Km/li) requires ~2.4 MJ/Km (efficiency 17%-21%)

b) H2- car (average 120 MJ/100 Km) requires ~1.2 MJ/Km (efficiency 50%-60%)

2°) Saves CO2 emissions because:

-combustion of H2 produces H2O vapour + some NOx (no CO2)

4) The conversion of H2 from hydrocarbons (coal, oil, natural gas) presents an energy loss of ~40-30% with consequent CO2 emission.

3°) Bio-Hydrogen production from R.E. does not have any CO2-emissions and thus is of primary interest if utilised in large amounts.

Page 42: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

3questions :

1) Can “ Bio-H2” be produced in large quantities? yes

2) Can “Bio-H2” be produced at resonable cost? yes

3) Can “Bio-H2” be produced commercially now? yes

Hydrogen is not a “primary energy Resource” (in fact is not available as “separate fuel on earth”).

But must be considered as “Energy Vector” (a means to transfer large amount of energy to utilisation sites)

Page 43: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Bio-H2

Bio-H2 can be obtained via solar (pv), wind, geothermal, hydraulic energy and from biouels (solid, liquid, gaseous)but the major general future interest is on:

Bio-H2 from Biomass is the cheapest

Because:

-solid biomass is the cheapest biofuel;

-solid biomass is a dispersed resource but available everywhere;

-the anticipated production cost of bio-H2 from biomass ( 50€/d.t) is reasonable and nearly competitive with the actual most utilised process (steam reforming of natural gas)also not taking into account possible future carbon credits (8 t co2/ t H2).

Our presentation is focused on a less efficient but commercial low-cost production of Bio-H2 from solid biomass (agro-forestry residues, clean organic wastes, energy crops)

Page 44: European Biomass Industry Association EU Biomass Industry: PROMISING MARKETS FOR MODERN BIOENERGY Mr. Giuliano Grassi Secretary General, European Biomass

European Biomass Industry AssociationEuropean Biomass Industry Association

Bio-H2 be produced from solid biomass at resonable cost?

YES!

Being:

•The conversion efficiency trials of the new process sufficiently high (~40%);

•The “Agro-pellets” production cost from residues at (50€/d.t) reasonable: 80€/t;

•The estimated commercial Bio-H2 production cost is:

• Via carbonisation: ~1.800 €/t (with 8 t ofCO2 Credits)

• Via torrefaction; ~1.500 €/t (with CO2 Credits)

H2 production cost from Natural Gas (at 7 $/MBTU) via steam-reforming is about

~1.800 €/t of Hydrogen

Therefore Bio-H2 from Agro-pellets is nearly full competitive!

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Can Bio-H2 produced commercially now?

All the technology involved in the 4-steps process are commercial:

• Agro-pellets;

• Carbonisation / torrefaction;

• Steam Reforming;

• CO-Shifting;

• H2 purification.

Commercial Bio-H2 plants (in the capacity range of 5000-50000 t/y) could be offered.

Potential large markets:

• Natural Gas enrichment in pipelines (5-10%);

• Petroleum refining;

• Metallurgical high quality steel application;

• Transportation biofuels;

• Glass Industry;

• Chemicals.

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Bio-syngas:C= ~ 50%H= ~ 6%O= ~ 43,5% % Composition (wt)N= ~ 0,5%

BioSynGas Compositionand H.H.V.

S.S. Bagasse Charcoal Steam Reforming (950°C – 1 BAR)

H2 CO CO2 CH4

52% 45% 2,7% 0,4%

H.H.V. = 12.47 MJ/Nm3

Reactor for the Production of H2 from Biomass Pellets

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Example: Bio – H2 Standardised Plant for enrichment of Natural Gas

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7. Synthetic Biofuels: Diesel/jet Fuel/Biomethane

Producing the syngas by gassification of solid biomass, before the synthesis process operation, there is a need of:

• Obtain a clean gas by purification process• Obtain a adeguate H2/CO composition of the syn gas.

Optimisation of F.T. synthesis to produce diesel or Jet fuel require a selection of a good catalyst and operation moderate process temperature (250-300 C°).

Production of jet fuel is of particular interest (325 M m3/y is used now by 13000 commercial planes)

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Basic process-scheme : Gasification of biomass

Gasification is an endothermic reaction between Carbon and

steam or CO2:

C + H2O CO + H2

C + CO2 2CO

Unfortunately synthesis-gas from wood contains tar (mixture of hydrocarbon compounds) and traces of

HCl,HF,NH3 and alkaline metals; their concentration depends on nature of biomass and type of reactor.

Tar gas-cleaning is under development !

Methanol Fischer-Tropsch Methane Oxo synthesis Ethylene

2:1 2:1 3:1 1:1

• Formaldehyde•Gasoline•Aromatics•Olefin

• Gasoline• Middle distillates• Waxes•Jet Fuel

• Aldehyde• Alcohols• Hydrocarbons

• Ethanol• Acetic Acid• Glycol Ether

H2/CO

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Biomass Conversion Technologies

Biological conversion

Thermochemical conversion

Pre-treatment

- Anaerobic digestion (biogas production)

-Sugar fermentation (Bioethanol production)

- Bio-H2 production

- Carbonisation (e ~ 50%)

- Pyrolysis (e ~ 70%)

- Gasification (e ~ 70%)

Stabilisation of humid biomass is of great strategic importance for future large-scale exploitation of this renewable resource. A promising technology is now appearing on the market. Several new machines could be developed.

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Characteristics of Liquid Biofuels

Fuel

Characteristic Gasoline Diesel Methanol Ethanol Hydrogen

Formula C4-C12 C14-C20 CH3OH CH3CH2OH H2

hydrocarbons hydrocarbons

Boiling point

°F 32-210 204-343 65 78 118

°C 90-410 400-650 149 173 244

Lower heating valuea

MJ/kg 44,5 43 19,6 26,9 33,1

Btu/gal 114800 140000 55610 76100 96100

aLower heating value = heat of combustion at 25°C and constant pressure to form H2O (gas)

and CO2 (gas)

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World MTOH Market

25272931333537394143

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

Mill

ion

s o

f T

on

s

Capacity Consumption

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BIOMETHANOL

• Biomethanol can be produced (by catalysis synthesis) from recycled CO2 generated during fermentation process (~ 80% can be recovered);

• CO2 being fixed, into a secondary energy carrier, (methanol) is a fully developed market;

• Bio-methanol utilizing bioenergy inputs is absolutely climate neutral syn-fuel (closed CO2 cycle).

• Storage of liquid bio-methanol is possible at ambient temperature, easy to transport and ready for use (chemicals, power production etc…)

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• The actual world production of bio-ethanol discharges into the atmosphere a considerable amount of CO2: 1Kg CO2 every Kg of bioethanol (~ 40 million t CO2);

• 90% of this high-quality fermentation CO2 can be easily recovered;

• Commercial technology for catalytic methanol synthesis, CO2 and H2 is available;

• Bio-hydrogen can equally be produced commercially from Agro-pellets at reasonable cost : 2.000€/t (without carbon credits);

• Therefore (in future) when large expansion of bioethanol production is expected, the utilisation of part of the lignocellulosic-residues of the sugar-starch dedicated plantations may allows also a considerable production of biomethanol (0.7Kg biomethanol for 1Kg ETOH);

• For example, a sugar-cane plantation could produce 6 m3 of ETOH+4m3 of MTOH/ha utilising ~ 10 t of agro-pellets/ha.

Co-production Bioethanol Biomethanol

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• The MTOH co-production can be carried out during sugar fermentation making catalytic synthesis of CO2 with Bio-H2 produced from “Agro-pellets”.

• Required energy inputs are as follows:

• For the co-production of 1t of biomethanol, 3,7t of pellets are required (for the bio-H2 and heat inputs);

• For the sugarcane/sweet sorghum plantations, the total feedstock cost influencemay be ~ 220 €/tMTOH

1 kg CO2

0,7 kg

methanol

+ water

Heat = 0,83 kWhth

0,137 kg H2

Synthesis of Methanol

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Potential Utilisation of Bio-MTOH• Efficient power production by modern gas-steam turbine c.c.

ηe > 50%

• Transesterification of vegetal oils to biodiesel;

• The first flexi-fuel car (Ford) in the year 90’s was running with a mixture of MTOH and gasoline;

• Used as a fuel for vehicles (due to performance and safety characteristics, it is the only fuel used in Indy race cars);

• Reformulation of gasoline (25% of gasoline sold in the U.S. is still reformulated from methanol)

• Chemical uses : – Catalytic oxidation and dehydrogenation to produce formaldehyde (demand for formaldehyde is

expected to increase as demand for MTBE is expected to decline)– Methanol-based acetic acid is used in making PET plastics bottles…– Methanol is the principal ingredient in windshield wiper fluid.– Methanol can de the basis to produce Di Methyl Ester

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Methanol Plant

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Main Chemicals from Synthesis Gas (Source : Wender, I.)

SYNTHESIS GAS FROM BIOMASS

CO + H2

CH4

Ni

Styrene Toluene

Ammonia

N2

ShiftH2

Fisher-Tropsch

Hydrocarbons (olefins, paraffins, aromatics) +

OxygenatesCracking of naphtha

Ethylene

Ethanol

Methanol

HCHO

Acetic Acid

ZeolitesBifunctional

catalysts

C5 + aromatics

Chemical BTX

Iso-Synthesis

ThO2

IsobutaneC5-C8, branched

Ethylene glycol (Methanol)

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WOOD

Pyrolysis

Hydrogenation

Hydrolysis

Gas (carbon monoxide, carbon dioxide, hydrogen, hydrocarbons)Liquids (methanol, acetic acid, acetone, phenol derivates)

Charcoal

Gas (hydrocarbons)

Phenols + cyclohexane derivatives

Hexoses

Pentoses

Lignin

Fermentation

Deshydratation Hydrolysis

Hydrogenation

Crystallisation

Fermentation

Dehydration

Hydrogenation

Crystallisation

Hydrogenation

Hydrolysis

Oxidation

Alcohols (ethyl-, butyl,-, isopropyl-)Polyols (glycerol, ethylene-,propylene glycol)Ketones (acetone)

Acids (acetic-, lactic-, butyric-)Yeast

Hdroxymethylfurfural, leuvinic acid

Polyols

Glucose

Furfural

Yeast

Polyols (xylitol)

Xxylose

Phenol derivatives, hydrocarbons

Phenol derivative, catechols

Vanillin

Potential Chemicals products derived from wood

Source : Kringstad. K.

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Thank you very much for

your kind attention

Mr. Giuliano Grassi - Secretary GeneralEuropean Biomass Industry Association (EUBIA)

EUBIARue d’Arlon, 63-65, B-1040 Brussels, Belgium

[email protected]; www.eubia.org