Biofuels… …. Made Easy
Dr. Chris Hamilton Lurgi Pacific
Lurgi Pacific
AIE Presentation
March 2004
This Presentation aims to ….
Provide an introduction to liquid transport fuels from renewable resources Focus on Bioethanol and Biodiesel Briefly present the technology for biofuels production and review the economics Balance the pros and cons of transport fuels from renewable resources in Australia
Lurgi Pacific AIE Presentation March 2004
Definitions of Renewable Biomass Energy ….
Biomass Energy from agricultural sources which is burnt or gasified for power generation Biomass Energy from waste sources, such as forestry waste, sewage sludge, garbage, etc. Biomass Energy grown for production of transport fuels, such as oil seeds, starch, sugar crops, and in the future, cellulose.
Lurgi Pacific
AIE Presentation
March 2004
Why consider Biomass as Energy? Need to find a substitute for the world’s finite non-renewable energy resources Help reduce gaseous emissions, eg Green House Gases, particulates, Help achieve Kyoto Targets Improve security of transport fuel supply Import substitution
Lurgi Pacific AIE Presentation March 2004
Potential Biofuel Scenarios Bioethanol with Gasoline • E10 - Standardised at 10% Ethanol • E25 - Brasil • E85 - Mid West USA Biodiesel with Diesel • B2 - Interest in Lubricity • B20 - Standardised at 20% Biodiesel • B100 - Available in Europe Bioethanol with Diesel • D20 - Diesohol
Lurgi Pacific AIE Presentation March 2004
Potential Biofuel Market in Australia Current domestic gasoline consumption 18,000 million litres per year @ 10% Ethanol = 1,800 Ml/yr Current domestic diesel consumption 12,000 million litres per year @ 20% Biodiesel = 2,400 Ml/yr Diesohol - 20% ethanol in diesel
Lurgi Pacific AIE Presentation March 2004
Biodiesel…
RME SME TME Rape Methyl Ester Soy Methyl Ester Tallow Methyl Ester
FAME Fatty Acid Methyl Ester
Lurgi Pacific
AIE Presentation
March 2004
Feedstocks for Biodiesel
Vegetable Oils • Rape/Canola Oil • Soyabean Oil • Sunflower Oil • Palm Oil & Derivatives • Coconut Oil • Mustard Seed Oil • Cotton Seed Oil • Corn Oil Animal Fats • Beef Tallow • Sheep Tallow • Poultry Oil • Deadstock Oil Used Cooking Oil
Lurgi Pacific
AIE Presentation
March 2004
Transesterification of Vegetable Oils and Animal Fats to Biodiesel
Estergroup
O H H + H O C H3 Na+ O R1 C O CH3 O H + H O C H3 R2 C O CH3 O H + H O C H3 R3 C O CH3 H O C H
Catalyst
H H O C H
R1 C O C O R2 C O C O R3 C O C H
+
H O C
H
H
1 Oil or Fat 1 Triglyceride
+ 3 Methanol + 3 Alcohol
H
3 Methylesters +
H H H H H
1 Glycerin
Example for R:
Lurgi Pacific
H H H H H C C C C C C C C C C C C H C C C C C H H H H H H H H H H H H H H H H H H H H H AIE Presentation March 2004
Lurgi’s Biodiesel Process
Reactor 1 Reactor 2
Oil
Biodiesel
Wash Column Methanol Methanol Recovery Catalyst Glycerin Water Glycerin Water Evaporation
Crude Glycerin Lurgi Pacific AIE Presentation March 2004
Conversion Routes to Biodiesel
Crude Oil Refined Oil Used Oils / Animal Fats
Degumming Bleaching
Multiple Feedstock Methanol + Catalyst
PreTreatment
Degumming & Deacidification
Thermal Deacidification
Esterification
Chemicals
Methanol + Catalyst
Transesterification
Glycerin Water Pretreatment
Reaction
Washing & Drying
Distillation & Bleaching
Cleaning
Biodiesel
Crude Glycerin > 80% conc.
Pharma Glycerin > 99.5% conc.
Constant Product Quality
Lurgi Pacific
AIE Presentation
March 2004
Commercial Biodiesel Plant
100,000 tonne / year
Lurgi Pacific
AIE Presentation
March 2004
Marl, Northern Germany
Lurgi Pacific
AIE Presentation
March 2004
Making Biodiesel to Specification
Draft Australian Standard (Similar to EN 14214)
ASTM D-6751
Density @ 15°C Viscosity @ 40°C Flashpoint Water & Sediment Acid Number Free Glycerin Total Glycerin Cetane Carbon Residue Cloud Point 0.875 – 0.9 g / ml 1.9 - 6.0 mm2 / sec 130°C 500 ppm 0.8 0.02 0.24 47 min. 0.05 % max. Unspecified
E DIN 51606
0.875 – 0.9 g / ml 3.5 – 5.0 mm2 / sec 110°C 300 ppm 0.5 0.02 0.25 49 min. 0.05 % max. -20°C Nov. 16 to Feb. 28
Lurgi Process*
0.88 g / ml 4.4 mm2 / sec 175°C 200 ppm 0.2 0.007 0.13 56
51 Min. 120 C
<0.01 % -22°C Nov. 16 to Feb. 28
* Analysis from stable production of NEW, Marl, Germany Raw material: Rapeseed oil
TBD: Oxidation Stability & CFPP ?
Lurgi Pacific
AIE Presentation
March 2004
Biodiesel Quality versus Feedstock
Rape Fuel specific properties Specific gravity Viscosity CS @ 40 C Cloud point C Pour point C Pour point F Cetane number Iodine number Heat of Combustion HHV MJ/kg
Source: Idaho Uni Dept of Ag
Soy SME 0.89 3.89 3 -3 27 66 130
Tallow TME 0.87 4.81 16 16 61 73 49
RME 0.88 5.65 0 -15 5 62 110
40.5
39.8
39.9
Lurgi Pacific
AIE Presentation
March 2004
Biodiesel Economics
3.50 3.25 3.00 2.75 2.50
Cost for Biodiesel Production
- 1.00
US$ per Gallon
2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00
OZ Pump Price $ A / litre
- 0.70
US Pump Price
- 0.40
Edible Tallow
Corn
Source: Lurgi PSI, Memphis, TN
Lurgi Pacific
AIE Presentation
Yellow Grease
Brown Grease
Soybean
Canola
Palm Oil
Coconut
Diesel @ Gas Station
Choice White Grease
March 2004
Impact of Feed Price
35
Example: Soya Bean Oil
$A per litre Biodiesel
Price in US Cents per Pound
30
- 0.70
25 20
- 0.50
15 10 5 0 1980
1985
1990
1995
2000
2005
Lurgi Pacific
AIE Presentation
March 2004
Positives for Biodiesel ….. Biodiesel is a “Drop-In” fuel Good additive source of Cetane Desulphurisation of diesel - loss of lubricity Increasing demand for higher engine efficiency Cleaner burning properties Refinery Diesel/Gasoline ratio out of balance Production is Capital Cost insensitive Vegetable sources leave protein rich meal for further beneficial use.
Lurgi Pacific AIE Presentation March 2004
Negatives for Biodiesel Vegetable Feedstock is expensive And subject to large price swings Animal based feedstocks have widely varying qualities Not all FAME meets Biodiesel Specification Requires arable land which may better be used for growing other food crops Some solvent effects May cause fuel injection pump wear Will need Government support in Australia
Lurgi Pacific AIE Presentation March 2004
To Sum up on Biodiesel In Australia Very limited supply of used cooking oils Tallow supplies are available but also of limited quantity and quality Canola is perhaps the best feed but has questionable economics here But export to Japan or Europe? Palm oil is an interesting option No real difficulty blending into diesel Glycerin prices will drop dramatically Find a process to polymerise glycerol
Lurgi Pacific AIE Presentation March 2004
Ethanol…
H
I
H
I
H
C
I
C
I
O H
I
I
I
I
H
H
Lurgi Pacific
AIE Presentation
March 2004
World Fuel Ethanol Production
70000
USA 2% = 13 Gl/yr RFS = Renewable Fuel Standard
Ethanol Production (Ml/year)
60000
Brazil 30% = 14 Gl/yr
50000 40000 30000
US Clean Air Act California E10 = 2.2 Gl
20000 10000 0 1975 1980 1985 1990 1995 2000 2005 2010
Japan E10 = 5.4 Gl
Source: FO Licht Nov. 2003
Lurgi Pacific
AIE Presentation Australia E10= 1.8 Gl/yr
March 2004
World Picture on Bioethanol
Current GL/yr % in Gasoline + 7-10 yrs GL/yr Governm ent Support
Australia USA Brazil Japan Europe India China World
0.07 13 14 negl. 0.42 0.2 0.07 23
0.4% 2% 30% Targ.E3 Targ.2% 3% nn
0.35 20 16 6 12 1.2 2.5 65*
Growing RFS Always Target E10 EU 5.75% Started E5 Positive * Potential
Source: FO Licht, Nov. 2003
Lurgi Pacific
AIE Presentation
March 2004
Sources of Bioethanol
Juices
* Catalysed by the
right Enzymes
Molasses
+ Fermentation with Yeast * *
Sugars + Ethanol
Cellulose
Starches
- (CH2O)3 90
Lurgi Pacific AIE Presentation
CH3CH2OH + CO2 46 + 44
March 2004
Ethanol from Grain
1000 kg Wheat, 65% Starch DB, 12.5% Moisture Grain (Starch) Water
Milling
Hydrolysis
Saccharification
Evaporation
Centrifuge
Distillation
Fermentation
Drying
Dehydration
Syrup
DDG
Ethanol
CO2
493 kg 30% DS
229 kg 90% DS
293 kg
283 kg
Lurgi Pacific
AIE Presentation
March 2004
Commercial Bioethanol Plant
150 Ml/yr
Lurgi Pacific
AIE Presentation
March 2004
Adkins Energy, Lena, Illinois
Lurgi Pacific
AIE Presentation
March 2004
Impact of Grain Composition
CO2
Wheat Moisture %WB Starch %DB Protein %DB Fibre %DB Fat %DB Min.M. %DB Other Sol.%DB 12.5 65.3 13.0 9.0 2.0 2.0 8.7
Barley 10.0 60.0 10.0 10.2 3.0 2.5 14.3
Corn 15.0 70.0 9.5 11.5 3.9 1.6 3.5
Sorghum
14.0 74.6 8.0 10.0 3.3 1.0
Ethanol
WDG
Syrup
3.1
Lurgi Pacific
AIE Presentation
March 2004
Total Cost of Wheat based Bioethanol Plants
140 120 100
Bioethanol
Total Cost ($A)
80 60 40 20 0 0 20 40 60 80 100 120 140 Capacity (Ml/yr)
cf. Biodiesel
Lurgi Pacific
AIE Presentation
March 2004
Positives for Bioethanol ….. … for the Oil Industry
External source of additive Octane Reduction of Benzene in gasoline Reduction of Sulphur in gasoline
… for the Environment
Increase in Engine Efficiency Reduction in CO by nearly 30% Reduction in GHG by up to 19%
… for Car Manufacturers
Increased Compression Ratio Cleaner combustion system
Lurgi Pacific AIE Presentation March 2004
Negatives for Bioethanol ….. Increases RVP of gasoline Less energy per litre Distribution of ethanol to the market place Has to have Government support Phobias of the non-informed Embroiled in politics
Lurgi Pacific
AIE Presentation
March 2004
… to Summarise
Lurgi Pacific
AIE Presentation
March 2004
BENEFITS to Australia Reduces crude oil imports Helps improve Balance of Payments Establishes new rural industry Much needed Community Multiplier Effects Can offset Governments’ rural subsidies Counter labour migration to major cities Stabilize income to farmers Develop new agricultural markets Better use of agricultural land Help Australia reach its Kyoto Targets
Lurgi Pacific AIE Presentation March 2004
Government Support for Biofuels 1929 - 1957 Sept. 2001 Sept. 2002 May 2003 June 2003 Oct. 2003 Dec. 2003
Lurgi Pacific
QLD Motor Spirit Vendors Act Coalition Policy statement “Biofuels for Cleaner Transport” Excise rebate on local production Excise rebate to reduce after July 2008 over 5 year period Legislation limiting E10 Blend Capital Grant scheme (16 c/l) through Invest Australia Proposed excise of 12.5 c/l on Ethanol and 19.1 c/l on Biodiesel
AIE Presentation March 2004
Conclusions Dr.Christoper Berg*
“.. The US and its ethanol policies must be regarded as a role model for industrialised countries that wish to introduce ethanol to the fuel pool.”
Australian Oil Industry spokesperson
“.. Ethanol will inevitably be blended in Australian gasoline. It’s only a matter of when”
Chris Hamilton
“.. The establishment of a biofuels industry in Australia will benefit rural industry, the oil industry, the environment, and has the potential to add to Australia’s exports of agricultural and energy products. ”
* Dr Berg, FO Licht, World Ethanol Conference, London, November 2003
Lurgi Pacific
AIE Presentation
March 2004
Thank You ...
Dr. Chris Hamilton Lurgi Pacific
Lurgi Pacific
AIE Presentation
March 2004
Lurgi Pacific
AIE Presentation
March 2004