The Future of Biofuels - January 2008

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The Future of Biofuels David Layzell, Ph.D., FRSC, Professor & Research Chair for a Sustainable Bioeconomy, Queen’s U, Kingston, ON President & CEO, BIOCAP Canada Foundation After July 2008: Executive Director, Institute for Sustainable Energy, Environment & Economy (ISEEE), U Calgary, AB Session 1B: Focus on Alternative and Emerging Energy 2008 Energy Futures Workshop Ottawa, Ont - Jan. 22, 2008 Special Thanks to: Why Biofuels? Rural Economy Primary ‘Driver’ for 1st Generation Biofuels • New markets Energy Security • NA access to oil & NG; • Peak oil (& NG) concerns; Emerging ‘Driver’ for Biofuels Climate Change … the future of biofuels depends on an alignment of policies with key ‘Drivers’. Fundamental Assumption Differences Driver Energy Security (price, access, availability) NEB Less than today: $35 $85/boe; No mention of peak oil or gas; No discussion of possible fuel shortage Status quo on climate change policies (except Triple E, then some CCS); This Analysis More than today: $100 - $150/boe; If not peak oil, then NA access problems for oil & LNG; Potential for fuel shortage A price on carbon; GHG emission regulations; C sequestration (geo. & bio) Climate Change Biomass as an Energy Resource Energy Comparison = 1 tonne dry biomass ~3 barrels oil About $50 to $100 About $250-$300. Farm gate, forest road or wellhead price Biomass for Energy: Potentials & Targets TOTAL Potential Biomass Mt dry/yr Municipal Wastes Agriculture Forestry Aggressive est. (similar to USA & EU) 20 Energy EJ/yr PER CAPITA t(dry) / person / yr 30 CANADA: (2 - 6X USA) 1000 16 750 CDN Energy Use (2004) 12 20 Target for 2030 Potential 500 Conser8 vative est. Potential Target Potential 250 4 0 USA (USDOE & USDA) 0 Proposed Canadian 2030 Target: [Canada does not have a bioenergy Target] 10 0 USA (USDOE & USDA) EU Canada (BIOCAP 2007) Canada (BIOCAP 2007) Canada’s Bioenergy Potential and Proposed Target Bioenergy Potential - Mt(dry) biomass/yr 600 500 To supply 20% of Canada’s energy needs by 2030 requires the sustainable use of Agric/Forest residues PLUS a ~50% increase in Agric/Forest production. For Comparison: 400 300 200 Current Forestry • 20% of energy use & Agriculture • +2 EJ/yr (~1M boe/d) Production Biomass Crops • +130 Mt(dry)/yr (165 Mt/yr) Silviculture/ Forest Mgmt Pest/Disease Residue Fire Residue Unused AAC Forest Harvest Residues Mill Residues Crop Residues Manure MSW Corn Hay Wheat Que Forestry BC Existing residues etc. Existing bioenergy (~5% Ttl energy) Agriculture New Biomass for Energy Prod’n Proposed 2030 Target: 100 0 Aggressive Conser -vative Canada has a large bioenergy potential and there is a growing interest in how best to use it to address energy security and climate change priorities. …THE key issue is how to make bioenergy sustainable from an: • Environmental, • Economic, and • Ethical/Social perspective. Optimal Use of Biomass to Address Climate Change Feedstock Starch Grains Process Fermentation Product Ethanol To replace… Gasoline Climate Benefit Small Mit. Price $/tCO2e ~$100-530 Oil Seeds Transesterification Biodiesel Power, Cement, Indust. Heat Diesel Medium ~$100 Straw or Wood Combustion or Gasification Coal High ~$8-70 Refs: Robinson et al 2003; Layzell et al. 2006; Kampman et al. 2006; Zhang et al 2007; Samson et al. 2008 If climate change is the major driver, solid biofuels would be the biofuel of choice. However, the security in the supply of liquid transportation fuels will be paramount in North America. A Biofuel Comparison … fuel energy per hectare Feedstock Yield (t/ha) 0 4 8 12 Feedstock Energy Cont. (GJ/t) 0 20 40 0 Fuel Energy (GJ/ha) Conv. Effic. (%) 50 100 0 50 100 km/ha (@10L/100km) 0K 15K 30K Parasitic Energy & GHG Emissions Poor - OK Poor Good Good Good Wheat Starch Ethanol Corn Starch Ethanol Canola Oil Biodiesel Cellulose Ethanol Biomass BTL fuel In a world where energy security is a priority, the high km/ha of biomass-to-liquid (BTL) fuels are likely to be a major asset. Gasifying biomass to Liquid Fuels Gasification: • 900oC +; • Oxygen limited; • Produces syngas (CO + H2); • Syngas can be chemically converted to liquid fuels (alcohols, diesel, dimethylether, methane); • More efficient at larger scale; • Similarity to Coal to Liquid Technology (CTL) Many major energy and chemical companies are moving rapidly in this direction Biofuel Production per ha-yr From: German Gov’t Biomass / Bioenergy Service (www.bio-energie.de) Volvo Renewable Fuel Study http://www.volvo.com Aug. 2007 Over 7 Criteria, these BTL fuels tended to have the highest ranking Biodiesel Synthetic Diesel Di-methyl Methanol/ Biogas ether Ethanol Biogas + Hydrogen Biodiesel + Biogas What kind of Transformative Systems will Canada need to deliver on a renewable biomass energy target of 130 Mt biomass / yr? • New high-yielding biomass crops; • Commercial scale conversion technologies; • Address the transportation challenge Addressing Energy Density / Transportation Relative cost (per km-tonne) Examples of Possible Solutions: 1. Distributed facilities processing 100s tonnes biomass per day for local heat & power, poss. Biofuels. Truck Rail Ship Pipeline 2. Build ‘bioenergy corridors’ around existing transportation systems: Shipping, rail, pipelines; Integrate biomass into fossil fuel infrastructure; 3. Establish dedicated bioenergy pipelines carrying biomass to larger ‘biorefineries’ Crown lands valuable asset. These strategies are needed to achieve a 20% bioenergy target. Example 1: Biomass to synthetic natural gas (bio-SNG) along natural gas pipeline system Natural Gas Pipelines in Canada Sustainable biomass production & transport Gasification to CO & H2 Convert to Methane Upgrade to NG quality Bio-SNG in pipeline NA distribution About 15% of Canada is within 100 km of a NG pipeline. Sustainable biomass production could provide bio-SNG equivalent to 50% or more of current NG demand in Canada. Hacatoglu, McLellan, Layzell, unpublished Example 2: Biomass for Oil Sands Extraction and Upgrading Large Forest resources Sustainable biomass (wood & straw) production Pellets (water resistant?) Oil Sands Train or pipeline transport to power stations or oil sands Major Coal Deposits Major Agricultural resources Gasify with Coal or Pet. coke Convert to CO2 & H2 CO2 into pipeline H2 Heat and Power CTL or BTL Fuels Google Maps CCS Current oil sands production (1M boe/day) demands ~8 Bm3 CH4/yr, which could be replaced by about 15 Mt biomass/yr Wood and Straw Pellets Regular Wood Pellets Water Resistant Wood Pellets Regular Straw Pellets Could pellets made with this process be pipelined like a coal slurry? Example 3: The Great Lakes / St. Lawrence as a Bioenergy Corridor Sustainable biomass production Ontario Biomass Production Densification (e.g. pellets) and Transportation to deep water ports Biomass crops Forest Harvest & Disturbance Residues Biomass crops Low cost Shipping • Power Generation; • Cement • Steel • Industrial Heat • Coal replacement; • Uses existing technologies / infrastructure; • Major GHG benefit • Chemical / Petrochemical companies Gasification to CO & H2 BTL fuels, chemicals & materials Agricultural, food and MSW residues Biomass crops Ontario Alternative Energy Incentives ($/GJ): Bioethanol: $7-8/GJth Wind Power: $15/GJe Biodiesel: $6/GJth Solar Power $104/GJe A solid biofuel incentive of ~$4 / GJ would create a vibrant market and generate >3X the GHG benefit of bioethanol. Conclusions 1. Canada has vast biological resources that could be used to address climate change / energy priorities; 2. Solid biofuels replacing coal gives the best climate benefit; 3. Gasification / BtL of bulk biomass is likely to be a key route for ‘second-generation’ liquid biofuels; 4. Research is needed to develop and assess transformative, yet sustainable bioeconomy systems, including new crops, large scale conversion technologies; bioenergy (& biodiversity) corridors.

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