From Wood to high-quality Fuel

UMB, S March 5, 2008

Klaus Schffel

Biofuels Agenda is driven by three Elements:

Climate Change

Biofuels set to gain Security of supply considerable share in transportation fuels market

Domestic Agriculture

Klaus Schffel March 2008 UMB Seminar

Biofuels: 1st Generation can hardly meet future Biofuel Demand

1st Generation (Biodiesel and Bioethanol):
Made from plant crops Available on the market today Limited CO2 reduction potential Concerns about: sourcing of feedstock; impact on biodiversity, land use and competition with food

cellulosic Ethanol):

2nd Generation (synthetic Biodiesel /

Made from non-food feedstocks (woody biomass) High CO2 reduction potential No competition with food High fossil substitution potential Technology is not commercial

Klaus Schffel March 2008 UMB Seminar

Fuel Quality: What makes 2nd generation Biodiesel so unique ?

Diesel (<10 ppm S) BTL Emission [g/km] 0,3 0,2 0,1 0 Nox Particle < 10 um HC CO Ozone
Source: New European Driving Cycle

No infrastructure requirements No adaptation to existing diesel combustion engines and powertrains No blending restrictions with fossil diesel Significant environmental benefits: Local Environment Global Environment

BTL-Diesel/forrest residues BTL-Diesel/straw BioEtOH/forrest residues BioEtOH/straw BioEtOH/maize BioEtOH/sugar beet Biodiesel/sunflower Biodiesel/rapeseed Natural Gas Gasoline Diesel

Source: JRC/CONCAWE/EUCAR 2007

2nd Generation biofuels

1st Generation biofuels

fossil

50

100

150

200

GHG Emissions [gCO2/km]

Klaus Schffel March 2008 UMB Seminar

Local Environmental Benefits

Diesel (<10 ppm S) Emission [g/km] 0,3 0,2 0,1 0 Nox Particle < 10 um HC CO Ozone BTL

Klaus Schffel March 2008 UMB Seminar

Green, greener, the greenest ..

BTL-Diesel/forrest residues BTL-Diesel/straw BioEtOH/forrest residues BioEtOH/straw BioEtOH/maize BioEtOH/sugar beet Biodiesel/sunflower Biodiesel/rapeseed Natural Gas Gasoline Diesel
1st Generation biofuels
Source: JRC/CONCAWE/EUCAR 2007

2nd Generation biofuels

fossil

20

40

60

80

100

120

140

160

180

GHG Emissions [gCO2/km]

Klaus Schffel March 2008 UMB Seminar

Increasing Diesel Demand together with increasing Import Dependence

250

200

AG = 20%

40 20

Mtonne/y

150

100

Gasoline Diesel

2005

2010

2015

2020

-20 -40

50

-60 -80

AG = -12%

1990 2000 2010 2020

Source: HART Down Stream Energy services 2004

Klaus Schffel March 2008 UMB Seminar

The Technology: How to make the fuel ?

Klaus Schffel March 2008 UMB Seminar

BTL-Process

Syn-Gas

Klaus Schffel March 2008 UMB Seminar

From low-quality Wood to high-quality Fuel: The Engineers Dream

Wood-to-Gas

Gas-to-Fuel

Klaus Schffel March 2008 UMB Seminar

Feedstock Logistics: Feedstock Composition

Amount

Amount

Feedstock Mix:
Bark, Sawdust, Round Wood, Harvesting Residues, WT Thinning, Chips, Recycl. Wood

Different Storage & pre-treatment Option Different physical forms Different moisture contents Different chemical composition

Klaus Schffel March 2008 UMB Seminar

Feedstock Logistics: Sourcing Strategies

Access & gathering points of low cost feedstock(s) Effective Transportation Modes
Railway Vessel Truck

Optimum Biomass logistics for plant location

Klaus Schffel March 2008 UMB Seminar

Feedstock Logistics: Supply Cost

Biomass Cost is a function of required Amount, Degree of Feedstock Mobilization and Competition
2

Rel. Feedstock Cost

1,8 1,6 1,4 1,2 1 0,8

20 0 40 0 60 0 80 0 0 1 00 00 0 00 0 00 0 00 0 00 0 0

Mobilization of harvesting residues estimated to 6 years in Norway

Competition in feedstock from biomass heating and CHP application may significantly impact feedstock cost

Amount [BTD]

Klaus Schffel March 2008 UMB Seminar

The Technology: Biomass-to-Liquids Easy made

Hydro-treatment

Fischer Tropsch Synthesis

Gas Cleaning
35% CO 35% H2 30% CO2

Gasification

Destillation Pre-treatment

50% Cellulose 25% Hemicellulose 24% Lignin

Diesel
Klaus Schffel March 2008 UMB Seminar

Naphtha

Gasification: Decisive Technology

Ash

Circulated Fluidized Bed CFB

Klaus Schffel March 2008 UMB Seminar

Entrained Flow EF

Reactor characteristics
Fluidized bed Historical development Scale-up limit Pre-treatment Heat requirement Produced Gas MW particle size (mm) TC Small-scale IGCC based on coal, waste 20-100 10-100 900 Syngas CH4 Tar CH4 Tar Ash Reforming Separation or Cracking Removed outside Large equipment Removed inside Small equipment outside Entrained flow Large scale CTL, IGCC based on coal, heavy-oil 100-1000 0.1 Oil 1500 Syngas

Clean-up

Klaus Schffel March 2008 UMB Seminar

Produced Gas
Units Operating conditions (O2 is oxidant) P T Particle size Moisture Gas Composition H2 CO CH4 Tar CO2 H2O N2/Ar Vol.% 18,3 16,1 13,5 4,4 46,9 34 0,8 26,6 46,1 0 0 26,9 16,7 0,4 bar C mm % 20 900 30 15 40 1500 0,2 15
Fluidized bed Entrained flow

Klaus Schffel March 2008 UMB Seminar

Process Line Concepts

Klaus Schffel March 2008 UMB Seminar

Pre-Treatment Options
Torrefaction Feed Moisture Feed Particle size Temperature Residence time Product By-products Feeding to Gasifier 10% 10 mm 200-300C 30 min Char: 80 wt% Gas: 20 wt% Lock-Hooper Piston 10% 10 mm 400-600C 1s Oil: 70 w% Gas: 15 wt% Char: 15 wt% Oil Pump Pyrolysis

Klaus Schffel March 2008 UMB Seminar

Energy Requirements for Pre-Treatment

Energy need as % biomass energy content Heat Torrefaction Process Milling Feeding Total Pyrolysis Process 14,7 1,1 0,5 0,5 3,6 2,5
CO2 compression

Power

6,1

Klaus Schffel March 2008 UMB Seminar

The Technology: BTL conversion do-able

Process Flow Diagram

Plant Layout

Process Simulation

Basis for Cost Estimation

Klaus Schffel March 2008 UMB Seminar

The Technology: Mass Flow Diagram

Green CO2" 725 kton/y

gen Oxy n/y kto 488

Naphta 34 kton/y BTL-Plant

Wo 40 od M % 1.2 oistu Mt re on /y

Klaus Schffel March 2008 UMB Seminar

Water 800 kton/y

Ash 30kton/y

Diesel 100 kton/y

The Technology: Energy Flow Diagram

Exhaust Fumes 5 MW

Electricity 30MW

Wood 466 MW

Naphta 62 MW BTL-Plant Diesel 186 MW

Total Fuel Efficiency approx. 50 %

Klaus Schffel March 2008 UMB Seminar

Cooling Water 183 MW

The Economy: External 2007 Studies indicate Production Cost of 0.8- 1.0 /l
Biomass Other Costs (unspec)

1,2

1,2

Diesel price FOB [/l]

ReNew FZK Dena

Production Cost [/l]

0,8

0,8

0,6

0,6

0,4

0,4

0,2

0,2

0
0 50 100 150
Ref.: 100 kton/y BTL diesel production

Crude Oil price [$/bbl]

Klaus Schffel March 2008 UMB Seminar

The Economy: Potentials for Cost Reduction

General Economy of Scale
100 % 90 % Rel. Specific Investment Cost 80 % 70 % 60 % 50 % 40 % 30 % 20 % 0 1000 2000 3000 4000 5000 Plant Size [MW]
This Study: 450 MW

Learning Curve in Technology

100 % 90 % Rel. Spec. Investment 80 % 70 % 60 % 50 % 40 % 30 % 20 % 0 5000
Source: 10000 VW-Renew 2007 15000

20000

Deployed Capacity [MW]

Klaus Schffel March 2008 UMB Seminar

Cost reduction: Economy of Scale

1 Pord.Cost Part [/l] 0,8 0,6 0,4 0,2
Base Case this Study

Biomass cost Capital Cost Bio+Cap

0 0 500 Plant Capacity [M W]

No scale-up-effect: Plant location and Biomass Logistics is most important
Klaus Schffel March 2008 UMB Seminar

1000

Bio Refinery Concept

Klaus Schffel March 2008 UMB Seminar

Takk for oppmerksomheten !

Dr. Klaus Schffel

Vice President Energy Klaus.Schoffel@norskeskog.com
Phone: +47 67 59 91 24 Fax: +47 67 59 91 81 Mobile: +47 91 34 23 29

Norske Skogindustrier ASA

Oksenyveien 80 P.O. Box 329 N-1326 Lysaker NORWAY

Klaus Schffel March 2008 UMB Seminar