Hemicellulose DOE – Products Platform Stage Gate Review Meeting August 9, 2005 Rod Williamson Iowa Corn Promotion Board Presentation Outline Funded by: 1. Overall Project Goals and Objectives 2. Project Organization 3. Task Detail 4. Market and customers 5. Competitive Advantage 6. Strategic Fit 7. Conclusions and Discussion Contract Administration by: Corn to Ethanol – Material Balance Corn processed in dry mill ethanol plant yields two other significant co-products beyond ethanol. 1 Bushel of Corn 2.7 Gallons Ethanol 18 lbs C02 18 lbs Distillers Grain = + + There is a tremendous opportunity to improve the economics of ethanol plant by increasing the value of distillers grains Hemicellulose Project Overview starch enzymatic glucose corn grind filter ethanol hydrolysis fermentation hemicellulose DDG enzymatic (feed) hydrolysis . sugars cellulose monomers and arabinose organic acids filter protein high value solvents . xylose Lignin enzymes Fats/oils Represents work done in this proposal Examples include: Itaconic Acid Furfural Levulinic Acid Glutamic Acid Xylonic Acid Xylitol/Arabitol Overall Project Goals & Objectives PROJECT GOAL: Value Added Products from Hemicellulose Utilization in Dry Mill Ethanol Plants • Hydrolyze the hemicellulose into the sugars. • Convert the C5 sugars into value-added chemicals via fermentation and chemical catalysis. Economic Benefits: • Creates value added products from ethanol dry-mill facilities. •The feedstock is the hemicellulose, which currently ends up as a very low valued animal feed. Organization/Approach Project Organization: Project Management R. Williamson B. Mustell Dr. M Bradford J. Murphy Iowa Corn Promotion Board Technical Applications Technical Enzymes and Process Development Development Development Development Modeling Dr. J. Magnuson Dr. M. Jaffe Dr. D. Reed Dr. R. Burlinghame Dr M Cockrem Pacific Northwest New Jersey Institute Idaho National Dyadic International KiwiChem National Laboratory of Technology Laboratory KiwiChem Project Timeline USDA/DOE funding will stop here Overview Task 2 Characterize arabinoxylan in whole stillage. Task 3 Development of hemicellulases necessary for hydrolysis of arabinoxylan Task 4 Fungal fermentation of pentoses into value added chemicals Task 5 Develop a Novel Organism for conversion into value-added chemicals Task 6 Convert Organic Acids via Chemical Catalysis Task 7 Economic Parameters and Commercial Feasibility Task 2 – Detail Task 2 - Characterize arabinoxylan in whole stillage Targets: •Determine the composition of DDG Risks: •Composition doesn’t match the expected values Milestones: •Assess the composition Go/No-Go Points: Accomplishments: •Accomplished Future Plans: •None Task 3 – Detail Task 3 - Development of hemicellulases necessary for hydrolysis of arabinoxylan Targets: • convert hemicellulose into arabinose and xylose Risks: • cost of the enzyme • some enzymes are not commercially available and require significant development Milestones: • hydrolysis of the hemicellulose Go/No-Go Points: • cost effective compared to starch Accomplishments: • enzymes have been tested for hemicellulose hydrolysis Future Plans: • continue testing enzymes Project Tasks 3. Develop hemicellulases necessary for hydrolysis of arabinoxylan—PNNL/Dyadic 1. Xylanase 2. β-xylosidase 3. α-arabinofuranosidase 4. α-glucuronidase 5. Feruloyl esterase 6. Acetylxylan esterase xylanase β-xylosidase Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl—Xyl GlcA— GlcA— FerA—Ara— FerA—Ara— Ac— Ac— Ac— Ara— Ara— Ara— Ara— Ara— Ara— Ara— α-arabinofuranosidase α-glucuronidase feruloyl esterase acetylxylan esterase Task 4 – Detail Task 4 - Fungal fermentation of pentoses into value added chemicals Targets: • ferment pentose sugars into value added chemicals Risks: • cost of the fungal organism • engineering an fungal organism to produce optimal yields Milestones: • develop and organism that can ferment targeted organic acids Go/No-Go Points: • cost effective fermentation based on Aspen model Accomplishments: • developed a baseline Future Plans: • fermentation studies Task 5 – Detail Task 5 – Develop a novel organism to produce organic acids Targets: • Convert pentose sugars to value-added chemicals at low pH Risks: • getting the organism to tolerate a low pH • organism that uses both xylose and arabinose Milestones: • development of an organism that produces targeted chemical at low pH Go/No-Go Points: • development of an organism that produces targeted chemical at low pH Accomplishments: • engineering the organism to produce targeted compound Future Plans: • continue testing organism Task 6 – Detail Task 6 – Chemical catalysis of organic acids Targets: • produce industrial applications monomers Risks: • catalyst selectivity • catalyst lifetime • minimize catalyst fouling Milestones: • identify potential catalyst for development Go/No-Go Points: • identify potential catalyst for development Accomplishments: • none Future Plans: • continue testing catalyst Task 7 – Detail Task 7 - Process engineering and economics Targets: • model the proposed process in Aspen to determine economics Risks: • assumptions are wrong Milestones: • develop a conceptual process with sufficient data to model Go/No-Go Points: • develop a conceptual process with sufficient data to model Accomplishments: • developed process economic model for a dry-mill ethanol plant (ASPEN) Future Plans: • understand largest contributors to cost of unit operations • use model results to drive additional work Enzyme Economics DGS DGS low DGS high cost Starch to target cost scenario Glucose scenario scenario raw material 2 cents/lb 2 cents/lb 4 cents/lb 6 cents/lb enzyme 2.2 cents/lb 1.25 cents/lb 3.15 cents/lb 0.1 cents/lb purification 3.8 cents/lb 2.85 cents/lb 4.75 cents/lb 1.9 cents/lb Cost target 8 cents/lb 6.1 cents/lb 11.9 cents/lb 8 cents/lb New Applications •New applications for organic acids are being developed by New Jersey Institute of Technology. •Successful deployment of this technology will result in increased demand for biomaterials derived from hemicellulose. Commercial Applications Hemicellulose derivatives • Organic acids are used in many applications including: – Carpet sizing agent – Emulsion and leather coatings – Molding plastics – Herbicides – Paint – Medicines and cosmetics – Artificial gems – Dental binder – Appliance and car vehicle coatings Flavoring agent for food and beverages; – Intermediate for dyes, perfumes, lacquers, photographic chemicals Technical Barriers Addressed: Chemicals and Materials Applications for new monomers Cost of Chemicals 1st Tier And Materials Product Yield Product Purity 2nd Tier Final Concentration Product Recovery Capital Costs Biological Chemical 3rd Tier Organism Development Catalyst Development Fermentation Development Separations Enzyme Development Separations Milestone Fit Milestone Hierarchy – Corn Dry Mill Improvements C5 or C6 or mixed Biomass Fractionation Ethanol Production C5/C6 Sugars conversion to Chemical with Sugar Production From Mixed Sugars and Material Products B Milestone B Milestone B Milestone B Milestone (M 2.2) Demonstrate and (M 2.3) Demonstrate and (M 2.4) Demonstrate and (M 2.5) Demonstrate and Validate economical residual validate economical conversion validate economical conversion validate economical new starch conversion in a dry mill of mixed sugars to ethanol in a of mixed sugars to products in a products from C6 sugars in a ($/lb fiber) by 2009. dry mill. ($/gal EtOH) by 2009 dry mill. ($/lb product) by 2008 dry mill. ($/lbs product) Supporting C Milestones: Supporting C Milestones: 1. Develop new organisms capable of fermenting •Same 1-3 as for B milestone C5 sugars to products identified in the “Top (M 1.3) Ten” analysis 2. Organism productivity rates need to be on the Supporting C Milestones: order of 1.5-2.5 g/Lhr • Develop new organisms capable of fermenting C5 sugars to products 3. Yield from sugars greater than 90% identified in the “Top Ten” analysis 4. Final concentration from fermentation should • Organism productivity rates need to be on the order of 1.5-2.5 g/Lhr be at least 100 g/l • Yield from sugars greater than 90% 5. Organisms need to be robust with respect to • Final concentration from fermentation should be at least 100 g/l impurities • Organisms need to be robust with respect to impurities 6. Develop new catalysts capable of converting • Develop new catalysts capable of converting sugars to products identified sugars to products identified in the “Top Ten” in the “Top Ten” analysis analysis • Catalysts must achieve selectivity of greater than 90% 7. Catalysts must achieve selectivity of greater • Catalyst lifetime of at least 1 year than 90% • Catalyst fouling minimized 8. Catalyst lifetime of at least 1 year • New membrane technologies need to be developed to recover products at 9. Catalyst fouling minimized low cost (cost target is less than 10-15% of product value) 10.New membrane technologies need to be developed to recover products at low cost (cost target is less than 10-15% of product value) Stage Gate Fit Potential Business Model Intellectual Property Farmer Farmer $ owned investors ethanol plant Strategic Fit Fit with Consistent with objectives of the Iowa Corn Promotion Board to: Company • Promote and expand markets for corn and corn derived products Business: • Open up opportunities for possible investment by growers in the production value-added products • Research new uses for corn Fit with Fits in the Corn Dry Mill Improvements Milestone Hierarchy Biomass - M 2.4) Demonstrate and validate economical conversion of mixed sugars to products in a dry mill. ($/lb product) by 2008 Program: - Catalyst development Project Stage: This project is in the exploratory stage. Vision for Partner with an existing dry-mill ethanol facility to develop new market opportunities with expanded capacity for Demonstration: renewable materials. Conclusions/Summary • This is an early stage exploratory project. • Technical progress would lead to further development of these products. • Success would lead to a clean sugar stream for cleaner fermentation, higher yields, less catalyst fouling and better separation. • Project is positioned to utilize the hemicellulose from a dry mill ethanol facility. • Makes the dry mill ethanol facility more economical by diversifying the product portfolio.