September/October 2017 Issue 5 • Volume 11
international Water services special Ethanol facilities get innovative
Flying high on seaweed
Using algae-based biofuels for aviation
Regional Regional focus: biofuels southeasxxxxxralasia focus: in biofuels in Asia
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Find out how you can work together as an industry to drive change, innovate, save money and the environment‌.. Gain fresh insights on current challenges from industry experts including:
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Chris Stark director of energy and climate change Scottish Government
Yuan-Sheng Yu senior analyst Lux Research
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global associate editorial director, Agriculture - Platts
head of low carbon fuels UK Department for Transport
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Biofuels International 2017 programme 3rd October 2017
Pre-conference Whisky Distillery Tour
Join us to visit the picturesque Glenkinchie distillery and experience a real taste of Scotland. Your visit begins in their unique exhibition on the original Malting Floors, home to the renowned model distillery. You will then be met by your guide and led through the distillery production area, learning how they make their ‘water of life’. To finish your tour, you are welcomed into the bar for a tasting of the Glenkinchie Whiskies. Email tracy@woodcotemedia.com to register your interest.
DAY ONE: 4th October 2017 9.15 Welcoming remarks from the Chair Martin Tangney, President, Celtic Renewables 9.30 Advanced biofuels strategy through to 2030 Rob Wakely, Head of Low Carbon Fuels Division, Energy Technology and International Directorate, Department for Transport (DfT) 10.00 Investing in advanced biofuels: technology options and policy support Andrew Murfin, General Manager, Advanced Biofuels, Shell 10.30 Networking break 11.00 Bioenergy and Scotland’s low-carbon economy Chris Stark, Director of Energy and Climate Change, Scottish Government 11.30 UK policy uncertainty, reintroducing E10 and the future of the bioethanol market Grant Pearson, Commercial Manager, Ensus 12.00 Q&A with this morning’s speakers – panel 12.45 Networking lunch
Session 2
Session 3
2.00 Opening remarks from the Chair Yuan-Sheng, Analyst, Lux Research
2.00 Opening remarks from the Chair
Overcoming today’s challenges
2.15 Biofuels perceptions and implications • How global perceptions of biofuels impact their development • Case study: first generation biofuels Jessica Robinson, Communications Director, NBB 2.45 Feedstocks & their pricing dynamics: How are market conditions and policy initiatives shaping our future? John Cropley, Head of Liquid Products Research, ED&F Man 3.15 Networking break 3.45 UK biodiesel markets post RTFO 2 and post-Brexit Dickon Posnett, Development Director, Argent Energy 4.15 The Dawn of a New Era in Global Biofuel Capacity Expansion • The Global biofuels industry is projected to grow to 67 billion gallons per year (BGY) by 2022, albeit at a much slower pace than before. • Key technology trends • Strategies enabling the next era of the biofuels industry Yuan-Sheng, Analyst, Lux Research
What does the future hold? 2.15 Scotland National Plan for Industrial Biotechnology including the Biorefinery Roadmap • Progress to date against this plan with case studies • What needs to be done to achieve the 2025 target • Feedstock Mapping tool – a highly interactive model for identifying all of Scotland’s available biomass by volume, composition, value and location Roger Kilburn, CEO of IBioIC 2.45 Replacing fossil based hydrocarbons and their pollution with practical alternatives Chris Wilcox, VP Business Development, Gevo 3.15 Networking break 3.45 Small scale methanol plants in the context of the EU’s post 2020 strategy • How advanced fuels such as methanol help achieve EU targets • Analysis of RED II and impact on first generation producers • How existing ethanol producers can improve their greenhouse gas savings Christian Schweitzer, Managing Director, BSE Engineering 4.15 Update on anti-dumping regulations for Argentinean biodiesel and impact on EU biofuels market • Argentinean biofuels producers & export levels • Meeting EU sustainability criteria • Current biodiesel prices • EU shortfall and Latin American supply Alfredo Langesfeld, Managing Director, GEA Biodiesel
4:45 Close of Conference
and Networking Drinks Reception with Whisky tasting session hosted by Celtic Renewables
For full information on this and past events visit www.biofuels-news.com/conference
DAY TWO: 5th October 2017 9.15 Welcoming remarks from the Chair 9.30 RED II: status report Thomas Gameson, Independent Consultant 10.00 Conventional EU ethanol: Safe, effective and free of adverse side effects • Case study: Pannonia Ethanol • Land use change explained • Renewable Energy Directive post-2020 James Cogan, Technology, Industry and Policy Analyst, Ethanol Europe Renewables Limited 10.30 Networking break 11.00 EU RED II, discussion around the phasing out of 1st sugarcane biofuel, outlook of sugarcane based ethanol production, state of sustainable ethanol production). Nicolas Viart, Director, Standards and Innovation, Bonsucro 11.30 Red II Q&A with this morning’s speakers
11.45 Ethanol producers making more with less Membrane solution that increases throughput and yield while reducing water and energy cost Gillian Harrison, Chief Executive Officer, Whitefox Technologies 12.15 Networking lunch 1.10 Introduction from the chair 1.45 Analysis of the European biofuels market: pricing & trading Tim Worledge, Platts Agriculture, S&P Global Platts 2.15 Networking break 2.45 Policy outlook for biofuels in the United States Robin Vercruse, Vice President of Policy and Environment, Fuel Freedom Foundation 3.15 End of conference
Please note that delegates have full access to both Biofuels and Bioenergy streams at no extra cost. You only need to register once for both events.
Please note that delegates have full access to both Biofuels and Bioenergy streams at no extra cost. You only need to register once for both events.
TWO BIO EVENTS FOR ONE GREAT PRICE! To view the programme and speakers for the concurrent bioenergy event please visit www.bioenergy-news.com/conference
Edward McCauley edward@biofuels-news.com +44 (0)203 551 5751
Tracy Whitehead tracy@biofuels-news.com +44 (0)208 687 4138
For full information on this and past events visit www.biofuels-news.com/conference
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September/October 2017 Woodcote Media Limited Marshall House 124 Middleton Road, Morden, Surrey SM4 6RW, UK www.biofuels-news.com MANAGING DIRECTOR Peter Patterson Tel: +44 (0)208 648 7082 peter@woodcotemedia.com EDITOR Liz Gyekye Tel: +44 (0)208 687 4183 liz@woodcotemedia.com DEPUTY EDITOR Daryl Worthington Tel: +44 (0)208 687 4126 daryl@woodcotemedia.com INTERNATIONAL SALES MANAGER Edward McCauley +44 (0)203 551 5751 edward@biofuels-news.com US SALES MANAGER Matt Weidner +1 610 486 6525 mtw@weidcom.com PRODUCTION Alison Balmer Tel: +44 (0)1673 876143 alisonbalmer@btconnect.com SUBSCRIPTION RATES £160/$270/€225 for 6 issues per year Contact: Lisa Lee Tel: +44 (0)208 687 4160 Fax: +44 (0)208 687 4130 marketing@woodcotemedia.com
No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Biofuels International are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this magazine should not be construed as those of the publisher. ISSN 1754-2170
biofuels international
15 Incident report
16 Plant update
18 Market analysis
20 Untapped potential Across Asia there are great opportunities for biofuels, but progress remains slow 22 Flying high on seaweed Uncovering the potential of seaweeds for aviation biofuel 24 The green stuff US researchers use papaya-fed algae to produce biodiesel 26 Know your limits Making the right decisions on water strategies can improve ethanol plant operational effectiveness 28 Water, water everywhere and a drop of the Internet of Things Ethanol facilities are using pioneering innovations to reduce water 30 Counting the costs Water and energy conservation through reverse osmosis 32 All means necessary Driving cleaner city traffic with advanced biofuels 34 Making more with less Pacific Ethanol and Brüggemann give their opinions on Whitefox’s technology 37 Home and dry Technology to reach 200-proof ethanol September/October 2017 Issue 5 • Volume 11
international Water services special Ethanol facilities get innovative
38 Removing water from ethanol The role of coadsorption in ethanol dehydration processes
Flying high on seaweed Using algae-based biofuels for aviation
40 Opening instead of closing doors Biofuels International catches up with Neste 42 Reducing emissions from transport Has the 2020 renewable energy transport target slipped off the UK government’s agenda?
Regional Regional focus: biofuels southeasxxxxxralasia focus: in biofuels in Asia FC_Biofuels_septemberoctober_2017.indd 1
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Peak oil revisited
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Liz Gyekye Editor
eak oil is the point in time when the maximum production of oil in the world is reached. After that point is reached, oil supply can no longer grow, it remains stable for a few years at best, and typically starts to fall unrelentingly. In the 1950s, Shell geophysicist M. King Hubbert was the first to figure out why an oil field’s production rises, peaks, and declines the way it does. Thanks to his in-depth understanding of the physics of oil production levels, he was able to predict future production trends. Hubbert’s first prediction, from 1956, that US easy-to-extract conventional oil production would peak around 1970, turned out to be accurate. US oil production after the peak continued to decline with smaller peaks and declines until 2008, after which it started to grow again. This recent change has not been because of a reversal in the peak in conventional oil, but rather due to an explosive
rise of unconventional shale oil using hydraulic fracturing. A new report from consultants DNV GL, entitled Energy Transition Outlook, has claimed that demand for oil will peak in 2022 and decline from this point. The same report highlighted that global energy demand will plateau from 2030 and the shift to renewable energy will be quicker and more massive than most people realise. This is where biofuels can come in. Biofuels such as bioethanol contribute little or no CO2 to the build-up of greenhouse gas emissions. Converting biomass feedstocks to biofuels is an environmentally-friendly process. Yet, bioethanol producers are always looking to reduce the environmental impact of their operations. For instance, dealing with water issues is very important. As water use and discharge limits become more stringent, it’s more challenging for ethanol plant operators to meet them. In this issue, Solenis’ Andrew Ledlie analyses why
making the right decisions on water strategies can maximise operation effectiveness. He points out that ethanol producer’s efforts may include strategies such as minimising water use or reducing discharge. Also in this edition, US bioethanol producer Pacific Ethanol’s CEO Neil Koehler explains why his company has employed Whitefox’s technology to help achieve its sustainability goals. Don’t forget to register your interest for our 10th Biofuels International Conference. This year we have an unmissable line-up of speakers, who will be descending on the city of Edinburgh, Scotland, from 4-5th October. Attendees and exhibitors will benefit from a range of conference streams and presentations across the spectrum. Visit www.biofuelsnews.com/conference for more information. I hope to see you there. Liz Gyekye, Editor
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bioethanol news Breakthrough study could revolutionise enzymatic cellulose conversion processes French and Norwegian scientists have discovered a groundbreaking enzymatic mechanism that could revolutionise biorefining and biofuel production. The research focuses on enzymes known as Lytic Polysaccharide Monooxygenases (LPMOs), which in recent years have drastically improved the conversion of cellulose into fermentable sugar (glucose), a pivotal step in the creation of second-generation biofuels. Despite their common use in the commercial production of bioethanol, much ambiguity remains over how LPMOs work at a molecular level. There are also persistent challenges connected to their industrial application, the enzymes are unstable under process conditions and their use requires the costly addition of oxygen. Bastien Bissaro, a guest researcher at NMBU (The Norwegian University of Life Sciences) from INRA, France, and an NMBU team led by Vincent Eijsink
3D model of LPMO enzyme. Photo courtesy of NMBU
have now discovered that the mechanism by which LPMOs break down cellulose is different to previously thought. Most notably, they’ve determined that LPMOs don’t actually need oxygen to function, but hydrogen peroxide, a relatively cheap liquid chemical. Bissaro and Eijsink’s discovery is a game-changer in more ways than one.
Scientifically, it contradicts many of the prevailing ideas of biochemistry. From an industry point of view, it shows that the way LPMOs are harnessed in biorefining needs to be reconsidered. Applying their findings, Bissaro and colleagues show that by controlling the supply of hydrogen peroxide, it’s possible to achieve stable enzymatic cellulose
conversion processes, much higher conversion rates than previously thought possible and higher glucose yields. A statement from NMBU makes the case that the findings, published in the journal Nature Chemical Biology, are of great commercial interest. Collaborative work with industrial partners is now underway. l
D3MAX ready to design first commercial plant Following successful pilot testing of its corn fibre-to-ethanol process, D3MAX is ready to move to the next stage of commercial development: the design of a full-scale plant at Ace Ethanol in Stanley, Wisconsin. Ace Ethanol set specific performance goals for the D3MAX pilot testing. “The D3MAX pilot process was able to meet or exceed our performance goals,” said Neal Kemmet, president and general manager at Ace Ethanol.
“Based upon the pilot testing, we believe D3MAX has the potential to significantly improve our companies’ financial performance. We are in the process of finalising pilot testing and will be working to ensure that we can seamlessly integrate the technology to our existing process. Once we have all the pieces in place the final decision on installation will be made by our board of directors and the Ace membership.” D3MAX describes the project at Ace Ethanol as a major milestone on the path to commercialisation.
“We are extremely pleased with the pilot test results and are very happy to begin the design of the first commercial D3MAX plant,” said Mark Yancey, chief technology officer at D3MAX. “We hope to have the first D3MAX plant under construction in the first quarter of 2018.” D3MAX has signed a contract with AdvanceBio Systems for a full-scale D3MAX design integrated with the Ace Ethanol plant. Upon completion of the commercial design, Ace Ethanol’s board will decide whether to install the process at the plant. l
4 september/october 2017 biofuels international
Co-located with
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ACT NOW Edinburgh l 4-5 October 2017 Join and network with some of the biofuels industry’s leading organisations such as Shell, Ensus, Vivergo, Argent Energy, Gevo, GEA Biodiesel, Ethanol Renewables, S&P Global Platts, Varo Energy, Slovnaft plus many more that have already signed up to attend the 10th edition of this comprehensive and informative conference. Can you afford not to be there? Co-joined this year with the Bioenergy Insight Conference & Expo, delegates have full access to both Biofuels and Bioenergy streams at no extra cost! You only need to register once for both events. For full details visit:
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september/october 2017 5
FUELS OF THE FUTURE
15th International Conference on renewable mobility
22.–23. January 2018, Berlin • More than 500 delegates • 14 different panels • More than 60 speakers • Networking and exhibition opportunities More than 500 participants from around the world are again expected in January 2018, among them representatives from raw material production and logistics, biofuel producers, representatives from the oil industry, from vehicle technology and the automotive industry, from politics, auditors and environmental verifiers, from the certification systems along with scientists and researchers. 14 panels and more than 60 speakers offer an extensive range of presented topics. ACCOMPANYING EXHIBITION In addition, the conference provides you with an opportunity to introduce your company or your institution to an international industry audience with an information booth in the entrance hall of the congress centre or to be represented as a sponsor. Furthermore, scientific institutions are given an opportunity to present scientific results in a separate poster exhibition. The German Bioenergy Association will gladly provide further details.
www.fuels-of-the-future.com
bioethanol news Ethanol swings China Agro-Industries into profit The first half of 2017 saw China AgriIndustries, a subsidiary of China grains trader COFCO, return to profit. According to Reuters, this change in fortunes was aided by a big jump in the profitability in the company’s ethanol and oil seeds segments. China Agri-Industries processes grains including soybeans, corn, rice and wheat. Reuters reports that the company’s revenues rose 9% to HK$44.4 billion ($5.67 billion) while its net profit rose to HK$1.2 billion from a HK$292 million loss a year ago. Driving the dramatic
turnaround was a five-fold surge in China Agri-Industries’ Biofuel and Biochemical segment. A higher ethanol output and favourable shift in government policy also helped its operating profit rise to HK$754 million. According to Reuters, China dropped its support price for corn in 2016, slashing the cost of the grain which is a key raw material for ethanol. It also offered subsidies to encourage companies to buy more of the country’s large corn stockpiles. Beijing also imposed anti-dumping tariffs on imports of distillers grains, a by-product of ethanol production, and hiked tariffs on imports of the fuel, assisting domestic ethanol producers. l
Poet beefs up production at Ohio-based bioethanol facility US biofuels producer Poet has announced that it has expanded production capacity from 70 million gallons per year to 150 million gallons per year at its Marion, Ohio-based plant. The project will also increase production of dried distillers grains from the current 178,000 tons annually to 360,000 tons, according to the company. With the groundbreaking, site work has officially begun, with project completion slated for Q3 of 2018. “This expansion will add 26
million bushels of new corn demand annually for the local area and create new jobs and economic activity for rural Ohio,” Poet CEO Jeff Broin said. “In recent years, I know farmers are struggling with low commodity prices, which is creating lower farm incomes and decreasing land values.” He added: “Biofuels have been the only real growth sector for ag commodities in the past decade. We will need to see biofuels increase as a percentage of the US and world fuel supply, and as a percentage of our gas tanks to stabilise worldwide ag prices and land values. He also said he was excited about the new plans. l
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bioethanol news Ethanol import tax takes effect in Brazil A 20% tax on imported ethanol has taken effect in Brazil, according to Reuters. The rules, which see the 20% penalty applied to volumes above a tax-free quota, came into force on 1 September. Reuters reported that Brazil’s foreign trade chamber Camex had issued an official written resolution which stated that the new rules will be valid for two years. Brazil’s government has never taxed ethanol imports before, hoping to encourage the use of the biofuel worldwide and in turn boost exports from Brazil. Complaints from local producers about rising imports however, forced the government to change its policy. Camex stated that 600 million litres of ethanol will be allowed into Brazil each year tax free, broken down on a quarterly basis. As soon as imports exceed 150 million litres in any quarter, the 20% tax will take effect. Significantly, the import restriction comes at a time when recent changes in local taxation have made biofuels more competitive with gasoline at fuelling stations, in turn boosting ethanol sales. US ethanol producers are likely to be the most adversely affected by the new penalties, with almost all of Brazil’s ethanol imports coming from the country. l
Aemetis produces cellulosic ethanol from orchard waste California-based biorefining company Aemetis is now producing cellulosic ethanol from orchard waste. The company has announced the news after successfully completing the construction and commencement of an integrated demonstration unit. The company said it produced the material from technologies from itself, LanzaTech and InEnTec. The plant is a continuously operating demonstration facility located at InEnTec’s Technology Center in Richland, Washington that is processing various feedstocks and demonstrating the integration of technologies to be used
in the full-scale operating biorefinery. “The Aemetis integrated demonstration unit was built to showcase high yield cellulosic ethanol production through the integration of advanced gasification from InEnTec with patented microbial fermentation from LanzaTech,” said Eric McAfee, chairman and CEO of Aemetis. “The plant converts waste orchard wood and nutshells from California’s Central Valley into cellulosic ethanol. California has more than one million acres of almond, walnut, and pistachio trees that currently produce over 1.6 million tonnes of waste wood and shells per year. Cellulosic ethanol can reduce greenhouse gas emissions by up to 80% compared to gasoline.” l
$115 million corn ethanol facility opens in Brazil Brazil’s ‘first’ large-scale corn ethanol production plant has started operations following a recent grand opening ceremony. The $115 million (€98 million) facility has been created to meet the country’s growing ethanol needs and introduce new feed options to the livestock industry. Located in Lucas do Rio Verde, Mato Grosso, the new FS Bioenergia facility is the culmination of a collaboration between Brazilian agribusiness Fiagril and US-based Summit Agricultural Group, headquartered in Alden, Iowa. FS Bioenergia will process 22 million bushels of corn and produce more than 60 million gallons of corn ethanol, 6,200 tons of corn oil and 170,000 tons of feed rations for Brazil’s expanding livestock industry. l
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biodiesel news NBB calls for higher volumes of advanced biofuels in RFS proposal The US National Biodiesel Board (NBB) has formally called for higher volumes of advanced biofuels and biomass-based diesel in the Environmental Protection Agency’s (EPA) proposed changes to the Renewable Fuel Standard (RFS) for 2018 and 2019. “NBB is extremely concerned with the proposed rule’s unprecedented cut to the advanced biofuel volume and freeze in the biomass-based diesel volume,” said Doug Whitehead, CEO of NBB.
“Both of these proposals run counter to Congress’s objectives to promote the growth of biofuels that provide American jobs, reduce emissions and enhance US energy security. EPA cannot enact its own policy when Congress has spoken, so we look forward to working with the EPA on addressing these concerns.” In a statement, NBB argued that biomass-based diesel has been a great success story of the RFS, pointing out that the biodiesel industry has grown to support more than 64,000 jobs throughout its supply chain. This success, according to NBB, has been assisted by a market incentive
from both the biomassbased diesel volume and advanced biofuel volume. The industry also provides benefits to American farmers and livestock producers by creating demand for the surplus oils from commodity crops and reducing the price of soybean meal. “The proposed rule sends a chilling message that EPA is not interested in promoting growth in biofuels in accordance with the RFS, which will discourage any future investment and cause a contraction in the industry. It will result in a blow to our country’s energy security, a loss of jobs and wages of employees concentrated in
rural areas, and a reduction in the income that American farmers receive for their crops and livestock products,” NBB wrote in a statement. NBB called on the EPA to increase the advanced biofuel volume for 2018 to 4.75 gallons, and the biomassbased diesel volume for 2019 to at least 2.5 billion gallons. This, it claimed, will match the RFS to Congress’ intent. “Raising the advanced biofuel volume to at least 4.75 billion gallons is an increase that could be achieved so easily by the industry that there is no non-arbitrary justification for EPA to set the volumes lower,” NBB wrote in a statement. l
Jamaican B5 biodiesel programme unveiled A Jamaican biodiesel research programme is now in the vehicular trials phase, according to a press release from the Petroleum Corporation of Jamaica (PCJ). PCJ has been working on the research with Jamaica’s Ministry of Agriculture, Bodles Agricultural Research Station and the Caribbean Agricultural Research and Development Institute. It aims to develop a B5 biodiesel blend from a castor oil feedstock. “Through our research, we found that the castor plant is feasible for the development of biodiesel and we have developed a B5 blend which is now being used in vehicular trials,” said Winston Watson, group general manager at PCJ. “While we cannot divulge too much information about the results at this point in time, we are refining the formula based
Jamaican B5 biodiesel from castor oil enters vehicle test phase. Courtesy of the Petroleum Corporation of Jamaica
on feedback from the trials which have been ongoing since December 2016. We are optimistic that once this phase of the research is completed our B5 blend of biofuels will be an affordable option for driving energy efficiency in the transportation sector,” Watson added. It is anticipated that by incorporating the B5 blend, it will be possible for Jamaica to displace around 97,000 barrels of imported oil, amounting to
savings of approximately JMD$540 million (€3.6 million) a year on energy bills. The local agriculture sector is also expected to get a significant boost, as a new market for crops opens up for farmers. The University of Technology, Jamaica will now continue to move forward with research on biofuels and other projects as part of an agreement signed with PCJ earlier this year to promote and develop renewable energy. l
10 september/october 2017 biofuels international
biodiesel news Scania to deliver 140 biodiesel buses to Norway Scania is set to deliver 140 buses to Norway, all of which can run on biodiesel and 70 of which have hybrid technology.
The buses will be used in the public transport system of Kristiansand, a town
south-west of the Norwegian capital Oslo. “This is an example of Scania’s wide range of sustainable transport solutions,” says Karin Rådström, senior VP and head of Buses and Coaches at Scania. “We’re not focusing on one solution,
but many, which has helped us to fulfil the customer’s requirements.” The biodiesel-fuelled buses will go into service in July 2018, and will be operated by transport company Boreal Buss, on behalf of the public transport operator Agder Kollektivtrafikk. l
Targray announces new turnkey biodiesel solution US biofuels marketer Targray has announced the launch of a new turnkey biodiesel solution for the convenience and fuelling retailing segment. The new ‘24/7 biodiesel solution’, aims to simplify biofuel procurement for the convenience store sector. Created following a two-year pilot programme and a range of customer consultations, Targray likens the new solution to purchasing standard diesel. According to a statement from the company, the new solution enables both chains and independently owned convenience stores and fuel retailers to achieve a positive return on investment from their very first biodiesel order. Targray claims that typical savings range anywhere from 3c to 10c per gallon of diesel sold, depending on regional market conditions and federal and state programme eligibility. Targray’s announcement comes at a significant moment, as increasing freight movement in the US spurs diesel demand throughout the country. At the same time, pressure is mounting on businesses to use lowcarbon, renewable fuels. l
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biodiesel news European Commission postpones vote on biodiesel anti-dumping duties The European Commission (EC) has postponed a vote designed to set its response to Argentina’s successful World Trade Organization (WTO) challenge to EU anti-dumping duties on biodiesel imports, according to media reports.
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The vote was postponed on Thursday 27th July, 2017. The current anti-dumping duties for Argentina amount to about 25% and in the case of Indonesia around 19%. This was set by the EU in 2013. Now, the EC is planning to reduce the duties for Argentina to around 9% and 5% to Indonesia. The WTO upheld Argentina’s complaint in an appeal ruling in October 2016. The major biodiesel exporter had called the EU measures protectionist and said they cost the country almost $1.6 billion (€1.39bn) in lost sales per year. The EU’s case was based on Argentina’s imposition of an export duty on the raw material, soybeans, which it argued allowed domestic producers to “dump” biodiesel at unfairly low prices. Some European Member States are concerned about a reduction in tariffs which would have a negative impact on the domestic biodiesel industry, agriculture and oil mills. Countries such as Germany were among the countries that expressed concern about the reduction in tariffs. Germany-based biofuels industry group VDB (Verband der Deutschen Biokraftstoffindustries) issued a statement on the issue. “We are extremely grateful to the federal government for expressing their concern at the imminent damage to the German biodiesel industry and agriculture. With this, Germany is positioning itself for effective protection against unfair competition,” said Elmar Baumann, managing director at VDB. In the autumn proceedings against the antidumping duties initiated by Argentina before the WTO, the EC was granted a deadline up to 10 August, 2017, in the autumn of 2016. The EC will now ask the WTO and Argentina to extend this deadline. The next meeting of the EC with Member States on which tariffs can be negotiated will take place on 7 September, 2017, according to the VDB. “The European biodiesel industry will use the time gained to assist the EC to justify tariffs in accordance with the WTO guidelines,” Baumann said. l
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cricatalyst.com biofuels international
september/october 2017 13
technology news ‘Breakthrough’ sees waste aluminium used for biofuel A resesarcher at Queen’s University Belfast has discovered a way to convert aluminium waste into a biofuel catalyst. In the UK, around 20,000 tonnes of aluminium foil packaging is wasted each year – enough to stretch to the moon and back. Most of this is landfilled or incinerated as it’s usually contaminated by grease and oils, which can damage recycling equipment. However, Ahmed Osman, an Early Career Researcher from Queen’s University’s School of Chemistry and Chemical Engineering, has worked with
engineers at the university to create an innovative crystallisation method, which obtains 100% pure single crystals of aluminium salts from the contaminated foil. This is the starting material for the preparation of alumina catalyst. Usually, to produce this type of alumina it would have to come from bauxite ore, which is mined in countries such as West Africa, the West Indies and Australia, causing huge environmental damage. Osman, who took on the project under the University’s Sustainable Energy, Pioneering Research Programme, has created a solution which is much more
environmentally-friendly, effective and cheaper than the commercial catalyst which is currently available on the market for the production of dimethyl ether – a biofuel which is regarded as the most promising of the 21st Century. Osman said making the catalyst from aluminium foil cost about £120/kg (€132/kg) while the commercial alumina catalyst comes in at around £305/ kg. Its unique thermal, chemical and mechanical stability means it can also be used as an absorbent, in electronic device fabrication, as a cutting tool material or as an alternative for surgical material for implants. l
Vertimass hits ‘critical scale-up’ milestone California based Vertimass has announced completion of the intermediate technology validation from the US Department of Energy’s Bioenergy Technology Office (BETO). The BETO validation verified performance against negotiated milestones, provided progress on scale-up, and reviewed Vertimass’ estimated cost for their transformative catalytic technology.
Developing a catalyst technology to convert ethanol into jet fuel, diesel fuel and gasoline blend stocks compatible with the existing fuel infrastructure, Vertimass believes the BETO verification paves the way to move to the demonstration scale. “We are excited to clear this critical scale-up milestone with the Department of Energy and look forward to moving our novel process closer to commercial reality,” said Charles Wyman, Vertimass president and chief executive officer. “This technology allows ethanol producers the ability to virtually eliminate
the ethanol blend wall that now impedes market growth for sustainable fuels, and to produce renewable hydrocarbons. The result can be significant expansion in production of renewable fuels and chemicals while maintaining a low greenhouse gas footprint in the process.” COO of Vertimass John Hannon claims a low capital cost to ethanol producers is a major advantage of the technology. He said: “These systems can be added to existing ethanol producers’ facilities at fractions of the cost of a new facility while providing product flexibility that can adapt to changing market conditions. l
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14 september/october 2017 biofuels international
incident report biofuels Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
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A summary of the recent explosions, fires and leaks in the biofuels industry Date
Location
Company
Incident information
8 August North Carolina, US
Hot-Z Transport Company
A tanker truck carrying ethanol tipped over in Rowan County, at the Davidson County line. 8,000 gallons of ethanol were leaked in the accident, and local HAZMAT crews had to be deployed. The driver was hospitalised in the accident, although local media reported the injuries were not life-threatening. No charges have been brought.
5 August Illinois, US
One Earth Energy
A drive motor caught fire at the One Earth Energy ethanol plant in Gibson City, Illinois. The building was empty at the time of the incident, and One Earth Energy reported that the fire was extinguished within an hour.
2 August
Illinois, US
N/A
A pickup truck struck a parked trailer, causing its 55-gallon drum of methanol, a component used in the production of biodiesel fuel, to leak, reports the Northwest Herald. No one was injured in the incident. A ‘few’ gallons of methanol were leaked.
18 July
Missouri, US
ICM Biofuels
On the evening of 19 July a fire broke out at the ICM Biofuels plant in St. Joseph, Missouri. Fire crews reported that the blaze was confined to a nine-story hopper used to heat and transport grain products. A statement from ICM confirmed the fire took place inside a dryer system, posing no risk to other parts of the plant. Local media report the fire was caused by an error during a shift changeover.
11 July
California, US N/A
Fire crews were called to deal with a methanol leak at a biodiesel facility close to the town of Taft, California. Methanol was leaking from a ruptured line on a rail car with a capacity of 28,000 gallons.
6 July
Off the coast of Columbia, Skamokawa, US
Argent Cosmos
A 557-foot ethanol tanker named the Argent Cosmos ran aground in the Columbia River near Skamokawa but did not leak or cause any damage, the coastguard reported. The ship was headed downriver from Port Westward carrying 1.63 million gallons of ethanol, a gasoline additive, and 6.5 million gallons of mono-ethylene glycol, a vital ingredient for the production of polyester fibres and film, the Daily News Longview reported. The Panamanian-flagged vessel went aground because a fuel pump failed.
8 June Wisconsin, US
Renewable Energy Group
A fire at Renewable Energy Group’s biodiesel facility in DeForest, Wisconsin, caused about $1 million (€840,000) worth of damage, according to fire crews. It took about an hour for fire crews to get the fire under control. All employees were accounted for and no one was hurt in the incident.
8 May
N/A
A truck carrying containers filled with ethanol struck a tree in Melbourne, Australia, causing the containers to move and tip over. Ethanol started to leak from the containers, meaning fire crews had to be called to deal with the leaks, and traffic had to be diverted. The ethanol level was low enough that local residents did not need to be evacuated, according to the Australian Associated Press.
Melbourne, Australia
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biofuels plant update
Plant update:
ASIA Novozymes
Location Mumbai, India End product Enzymes Feedstock Solid state fermentation Construction / expansion / Denmark-based Novozymes will be acquisition establishing a new enzyme production facility near Mumbai on India’s west coast. “We see a big opportunity in India and South-East Asia, where knowledge-based innovations in the field of industrial enzymes can effectively replace polluting chemical processes and deliver environmental sustainability,” said Thomas Videbæk, executive VP & COO, Research, Innovation & Supply at Novozymes Designer/builder Novozymes Project start date November 2016 Completion date 2018 (Projected) Investment DKK 300 million (€40.3 million)
Toray Industries Location Thailand End product Bioethanol Feedstock Biogasse Capacity 15 tonnes of biogasse per day Construction / expansion / Toray Industries, a Japanese synthetic acquisition fibres company, is looking to obtain sugarcane waste in Thailand to produce biofuels. The pilot plant will employ concentration technology that uses Toray’s water treatment membranes to produce high quality cellulosic sugar while conserving energy Project start date January 2017 Investment Approx. 5 billion yen (€40m)
Sapporo Holding/PTG Energy Location Thailand End product Ethanol Feedstock Cassava Capacity Capable of producing 200,000 litres of ethanol per day Construction / expansion / Japanese brewer Sapporo Holding acquisition has licensed Thailand-based fuel retailer PTG Energy to manufacture cassava-based bioethanol. Innotech will use Sapporo’s technology in producing ethanol from cassava pulp at a new plant scheduled to start operating in 2020 Project start date January 2017 Completion date The new plant is scheduled to start operating in 2020 Investment 1.5 billion baht (€37.6 million)
Aemetis Location India End product Biodiesel Capacity 50 million gallons per year Construction / expansion / Aemetis has announced that its Indiaacquisition based subsidiary Universal Biofuels has signed a three-year biofuels supply agreement with BP Singapore (BPS), the regional trading arm of BP, which has an expanding biofuels portfolio Project start date May 2017
Praj Industries Location India End product Bioethanol Feedstock Sugarcane juice and molasses Construction / expansion / India-based bioethanol company acquisition Praj Industries will be working with US-based advanced biofuels company Gevo to use Gevo’s proprietary isobutanol technology to process sugarcane juice and molasses. This follows on the back of Praj’s development work, adapting Gevo’s technology to sugar cane and molasses feedstocks. The announcement was made at the BIO World Congress on Industrial Biotechnology in Montreal, Canada Designer/builder Gevo Investment 2019/2020
Indian Oil Corporation Location Hayrana, India End product Bioethanol Feedstock Waste gas emissions Capacity 40 million litres per year Construction / expansion / Fuel retailer the Indian Oil Corporation acquisition (IOC) and carbon-recycling company Lanzatech have signed a statement of intent to build what they claim is the world’s first refinery for off gasto-bioethanol production in India. The new facility is set to be constructed at IOC’s Panipat refinery Hayrana, at an estimated cost of 350 crore rupees. According to an IOC press release, it will be integrated into existing site infrastructure Designer/builder Lanzatech
Dalian Institute of Chemical Physics and the State-owned Shaanxi Yanchang Petroleum Group Location Shaanxi Province, China End product Ethanol Feedstock Coal Capacity 100,000 tonnes of pure ethanol a year (potentially) Construction / expansion / China has opened the world’s first acquisition production line that converts coal into ethanol, the main chemical ingredient in alcohol, the Chinese Academy of Sciences has announced
16 september/october 2017 biofuels international
market analysis biofuels Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
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SCB Commodity Brokers global biofuels prices Prices quoted: 05/09/2017 Product
Mid Price
EU Biodiesel RED ($/mt)
URL: www.starcb.com Product
Mid Price
US Biodiesel B100 ($/gal)
FOB ARA RME
1,032.00
Houston SME
3.192
FOB ARA SME
924.50
Houston TME
3.152
FOB ARA PME
854.50
NY Harbour SME
3.312
FOB ARA FAME 0
924.50
NY Harbour TME
3.282
Mid West SME
3.202
FOB ARA FAME -10
1,032.00
EU Biodiesel Non RED ($/mt)
US Ethanol ($/gal)
FOB ARA RME
997.00
NY Harbour Barges
1.630
FOB ARA SME
889.50
Argo ITT Illinois
1.570
FOB ARA PME
819.50
FOB USGC
1.610
FOB ARA FAME 0
889.50
Rule 11 TWS (Railcar)
1.545
FOB ARA FAME -10
997.00
Rule 11 NWS (Railcar)
1.545
EU Ethanol (€/cbm)
RINs ($/RIN)
T2 FOB Rotterdam
535.00
2017 Ethanol (D6)
0.865
CIF Duisburg 60% GHG
520.00
2017 Biodiesel (D4)
1.115
US Ethanol ($/cbm)
2017 Advanced (D5)
1.105
FOB US ANP
432.58
FOB Santos
545.00
LCFS Credits
Emission Credits ($/mt)
95.00
Current price index
T
he continued regulatory uncertainty surrounding European Biodiesel has now taken effect and is starting to sap liquidity from the market. The proposed duty reductions on Argentinian and Indonesian imports, proposed duty increases on these countries from the USA authorities, the greenhouse gas (GHG) emissions reductions on biodiesel using methanol and now the prospect of the German Authorities changing the GHG calculations on German diesel fuel has meant trade flows are uncertain and put many market participants in a “wait and see mode”. The re-calibration of European biodiesel emissions calculations has meant an across the board reduction in the GHG readings. Whilst this is positive for the industry on a long term basis due to the increase in the volumes now due to be blended in Germany, this has created short term issues for suppliers. Contracts for September and the fourth quarter have been signed with minimum GHG guarantees and now producers are struggling to meet those guarantees. As a result we have seen a number of traders and producers short covering most often with Ucome, they have been fortunate in that this spike in demand into Germany has coincided with a drop off in demand into the double counting markets of Italy, the UK and Netherlands as they
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come to the end of their summer blending programmes, and whilst over the summer the double counting markets were trading at premium to the high GHG market in Germany, the reverse is now true. The two main grades of RME and Fame 0c have as per usual been trading at close to parity over the summer months as a lack of blend stock in the market and minimal demand for low cfpp grades meant many producers selling Fame 0c were in actual fact supplying RME. With winter now approaching, palm now trading at a bigger discount to the other grades and the threat of cheap SME imports form South America the premium for RME over fame 0c has now moved to over $100/mt. This has also had the effect of increasing production margins for European producers to multi-month highs but once again these margins are only available on the spot month and availability, spare capacity and logistical constraints have meant not all producers have been able to take advantage of this. European markets are keenly awaiting the results of votes in Brussels, Washington and the WTO as these will vastly affect trade flows. Coupled with this we have had recent regulatory changes in Germany with more potentially on the horizon, whilst uncertainty brings new opportunities and closes others the market continues to operate in a hand to mouth fashion and a “risk off” strategy.
European ethanol in the summer months has been slightly lethargic: with only some scheduled and non-scheduled maintenance on EU production facilities providing talking points. Despite this, liquidity in the futures market remains healthy throughout a curve that has been heavily backwardated in the front months and largely flat thereafter. Trades largely focus on structure into CAL18 with market participants taking advantage of mismatches in inter-month and quarter spreads. Physical spot prices have come down from their early July peak nearing €590/cbm to the recent level hovering at €530/cbm; the market has seen physical premiums bid out into 2018 and beyond; talks of high GHG and DC material are heard with approximately €2/GHG as a reference premium. Weak grains prices continue to put pressure on the ethanol refining margin and prices, and the market expects increasing flow of sugarbeet based ethanol in Europe. August marked the Brazilian decision of imposing a 20% tariff on ethanol imports in excess of 600 mil liters/year in an attempt to aid the local sugarcane industry against competition from US corn-based ethanol. With US production in excess, coupled with the weakened performance of the dollar, the market will be monitoring US export flow in 2018 and its effects on European prices for potential arbitrage opportunities. l
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biofuels market analysis
US biodiesel and RFS compliance after court ruling by Brian Milne
Brian Milne, energy editor at DTN
S
oy-methyl ester biodiesel spot prices increased sharply mid-summer from early year lows, climbing above $3 (€2.52) gallon in July and holding there after early year weakness on concern that federal policy mandating renewable fuel demand in the US transportation sector might be changed, joined by periods of lower prices for the broader diesel fuel market amid oversupply. Following a host of worries for renewable fuels stakeholders regarding potential changes to federal policy ushered in by the Trump administration, some of which remain, there were bullish developments for biofuels during the summer months. Nonetheless, a high level of uncertainty remains, namely with a tax incentive that expired year-end 2016 that industry participants said is critical for growing
production and profitability. Biodiesel companies have been here before, with a $1 gallon credit paid to blend biodiesel or renewable diesel into petroleum-based diesel fuel having expired in 2009, 2011, 2013 and again in 2016. In previous years, the credit was reinstated retroactively, frequently creating boon years for producers. There is a high likelihood the credit will again be reinstated and done so retroactively. The market is trading as if the credit will return, with trades mostly done in a 50/50 split, meaning buyer and seller will equally share the subsidy. Without the sharing provision, several trade sources believe biodiesel production would drop off sharply, adversely affecting world feedstock demand and prices. Bipartisan legislation was proposed in the US House of Representatives in July; H.R. 3264: Biodiesel, Renewable Diesel, and Alternative Fuels Extension Act of 2017. The proposal would retroactively renew the tax credit for 2017 and extend it through 2021, with the incentive to then be phased out. Blender’s credit The subsidy would remain a blender’s credit, yet there are many in the industry, including the National Biodiesel Board, the US trade organisation for biodiesel, that want it changed
to a producer’s credit. They argue that the credit at the blender’s level draws in a high rate of imports, namely from Argentina and Indonesia, that has had a deleterious affect on domestic production and profitability. Congress is expected to debate comprehensive tax reform this autumn. US biodiesel producers lack pricing power because the industry has overbuilt. In their farmdoc daily series, Scott Irwin and Darrel Good with the Department of Agriculture and Consumer Economics at the University of Illinois, note that it has been a rare occasion when US biodiesel producers have operated above 65% of capacity. The US Environmental Protection Agency recently reported production capacity at registered facilities totals 4.2 billion gallons. The result has been an extremely flat supply curve and a high level of price elasticity. Irwin and Good note that in this environment, market prices need only cover the variable cost since the fixed cost, the production facilities, are already in place. “This excess capacity presents a constant threat of overproduction once [biomass-based diesel] prices exceed variable costs of production.” In other words, a 1% gain in price could spur a 3% increase in new production.
More than 80% of the production cost for biodiesel is feedstock costs, with soyabean oil the primary feedstock. About 7.55 pounds of soyabean oil is needed to produce one gallon of biodiesel. Changes in soyabean oil costs can and do effect the supply curve. While uneven, biodiesel production plants turned profits during much of the first half of the year, owing to lower soyabean oil costs relative to ultra-low sulphur diesel fuel. Absent of a bottoming in ULSD values, the trend should continue, with the US Department of Agriculture forecasting another bumper crop for corn and soyabean, with this year’s soyabean harvest seen at a record high – nearly 4.4 billion bushels. Summer triumphs There were two victories for the biofuels industry over the summer. First, the Trump administration said it would not change the point of obligation under the Renewable Fuel Standard, with oil refiners and importers obligated parties. Petitioners had sought to move the point of obligation downstream where they said the actual decisions on blending are made, and that this change would virtually eliminate speculation in the credits market. As an obligated party, one
18 september/october 2017 biofuels international
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must blend a percentage of renewable fuel determined in the preceding year by the EPA based on statute and supply availability referred to as the Renewable Volume Obligation. The amount you blend is determined by your production and import totals. An obligated party can also purchase credits known as Renewable Identification Numbers in the open market. Merchant oil refiners that lack blending opportunities typically expend large sums to meet their RVO. The high cost in compliance is chiefly caused by the “blend wall,” a reference to ethanol blending in gasoline. Currently, the blending limit for ethanol in gasoline that can be used in all vehicles year-round is 10%. Higher blends can be used in many vehicles on US roads, and there is a push for a 15% ethanol blend known as E15, however, there are environmental and manufacturer issues. Namely, some auto-manufacturers won’t warranty a vehicle if E15 is used, while E15 can’t be sold during the summer months because it raises the Reid Vapor Pressure rating, a measurement of emission release, above regulation. There was concern by some in the renewable fuels industry that changing the point of obligation might spur other changes to the RFS program, or otherwise water down or delay the execution of RFS volume requirements. On 28 July, the US Court of Appeals for the District of Columbia ruled the EPA erred in reducing the annual volume requirements for 2014-2016. EPA had lowered the volume requirements for these years after RIN prices spiked in 2013 as the blend wall was reached. EPA, the administrator of the RFS that was established by the Energy Independence and Security Act of 2007, used the “inadequate domestic supply” waiver provision under the law as justification in reducing the annual volume obligations.
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The EPA interpretation of the provision was that demandside constraints would prevent some renewable fuel from reaching the ultimate consumer. The court said EPA was not allowed to consider this possibility under the provision, and that the agency could only contemplate if there was enough renewable fuel to meet the mandate, and there was an adequate supply. The combined volume shortfall against mandate for the three years is 2.24 billion gallons. The EPA is now left to determine how to proceed in meeting the court order, with the majority opinion that only the 2016 shortfall would need to be backfilled. The reduction in 2016 was 500 million gallons. This would be a boon for the biodiesel industry since making up for the shortfall would largely be made with biomass-based diesel, which qualifies as an advanced fuel as well as satisfying the biomass-based diesel nested category under the RFS. This reality is because of the limitations in adding more ethanol to the gasoline pool due to the blend wall, while there’s an inadequate supply of cellulosic fuels. As Irwin and Good have previously written, biomass-based diesel is the “marginal gallon” that can fill the gaps. They estimate that complying with the court ruling to meet the 500 million gallons would hike the average price for biomass-based diesel by $0.15 gallon. l
ULSD/soybean oil spread Based on 7.55 pounds of soya bean oil per gallon (USD/gallon)
EPA qualified biomass-based diesel supply volume
Market analysis spot prices
Bean and oil ULSD
For more information: This article was written by Brian Milne, who manages the refined fuel’s editorial content, spot price discovery activity and cask market analysis for DTN. Tel: +1-609-371-3328. DTN is the leading digital provider of information services, supply chain connectivity solutions and decision-support tools to more than 80,000 customers in agriculture, oil and gas, trading and weather-sensitive industries worldwide. DTN, based in Omaha, Nebraska and Minneapolis, and is owned by TBG, a private century old investment holding headquartered in Zurich.
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biofuels regional focus Across Asia there are great opportunities for biofuels, but progress remains slow
Untapped potential by Colin Ley
T
he potential for biofuels in Asia remains enormous but progress in the practical development of the region and its creation of a working distribution network remain painfully slow. “Not a lot has changed this year on the biofuels front across the region, although the promise of the future remains as strong as ever,” says Oscar Tjakra, senior analyst with Rabobank, based in Singapore. “So long as the oil price stays below $100 a barrel, or even $70, it will be very difficult for biofuels to pick up consumption. That continues to be the main barrier to sector development in Asia with the bridge between a low oil price and biodiesel progress being heavily dependent on the provision of governmentbacked subsidies.” Noting that to be really effective in pushing the industry forward, governments would need to be more proactive in supporting development, Tjakra adds that such action is currently being hampered by the overall state of the global economy. “Things are improving, of course, but it is still not all good and this continues to make it difficult for governments to put the type of subsidies in place to really boost biofuels consumption,” he tells Biofuels International. While the present lack of biofuels’ progress is disappointing for the industry’s developers in Asia, Tjakra agreed many investors and observers would be surprised if progress continued to be slow. “Accelerating the development of the biofuels
industry in Asia needs new subsidies from governments, not merely a few amendments to what is already out there,” he says. “Coming up with the level of funding to achieve this always takes time, however. It certainly won’t happen overnight.” Nevertheless, the rewards for investors who are willing to play the ‘long game’ in Asia still look good. The market is huge, after all, and the pressures on fossil fuel usage and air pollution issues across the region remain as compelling as ever. New research Two recent reports from the International Renewable Energy Agency (IRENA) neatly illustrate both the region’s potential for biofuels and the ambition of the different countries to shift away from fossil fuels as rapidly as economics and infrastructure allow.
The second report (Renewable energy prospects for India) concluded that the country, with all its obvious air pollution issues, has the capacity to raise its renewable energy use to account for one quarter of its total final energy demand by 2030. Within such an increase, biofuels are presented as having the potential to gain a 62% share of the renewable energy market. Turning such visions of the future into reality is where the challenge begins, of course, not least in terms of consumer demand and distribution infrastructure. There is also the constant stress, for governments at least, of how much to focus on domestic biofuels production while building consumer confidence and a reliable delivery infrastructure, and how much to allow imports to supply product while the internal biofuels
The rewards for investors who are willing to play the ‘long game’ in Asia still look good The first report (Biofuels potential in Southeast Asia) stated that the region has considerable resources to produce liquid biofuels sustainably, adding that, based on abundant biomass feedstocks, future development of resources would neither result in a raising of carbon-dioxide emissions nor interfere with existing or future food supplies.
pricing and distribution network gets sorted. For the government in India, the solution currently is to focus on ethanol supplies to be imported for industrial usage only while seeking to meet higher value domestic fuel ethanol requirements from home-produced supplies. That approach led to India setting a new record for US ethanol purchases of
116 million gallons during the current marketing year, more than doubling the country’s 2015/16 intake. The US Grains Council (USGC), whose export development role includes a heavy focus on expanding sales of ethanol, still wants more, however. “We’re currently seeking to convince the Indian authorities that their need for fuel ethanol is so compelling that they should reopen their doors to imports for this sector, as well as for the industrial market,” says Mike Dwyer, USGC chief economist. “We obviously have no problem with the Indian government’s desire to develop the country’s own domestic solutions but if they are still short of fuel ethanol, which they are, then they shouldn’t hesitate to import it from the US.” USGC’s chance of winning its argument will depend on a change of policy at government level in India where tax structures are currently structured in such a way to reward home-based suppliers for moving away from industrial products in favour of the more “supported” fuel market. For the moment, USGC members are clearly benefiting from India’s rising demand for industrial ethanol, even if that isn’t their market of choice. That, at least, is better than US exporters’ experiences in China this year where government policies have effectively turned off the tap on an export trade which absorbed more than 700 million litres of ethanol during the 2015/16 marketing year and almost nothing this year. “The virtual disappearance
20 september/october 2017 biofuels international
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this year of China as an ethanol market for US producers is due to the country’s imposition of 30% tariffs on imported fuel ethanol on 1 January, 2017,” says Dwyer. “Thankfully, for our own producers, China’s move coincided with a major surge in demand for our product from Brazil, which is already close to taking 500 million gallons in the current marketing year.” Despite this ‘balancing of the books’ from a USGC perspective, China’s 30% tariff decision is seen as being legal, under World Trade Organisation rules, but thoroughly bad policy in every other respect. “We are working with the authorities in China to convince them that their need for ethanol is so great that this should supersede their use of protectionist trade policies,” says Dwyer. “Our analysis is that China was sitting on up to 200 million tonnes of corn stocks and wanted to find a home for them, with one of the easiest ways to do so being to boost the market for their own plants by eliminating import competition. “However, while they are using a lot more corn than they did, they will not come anywhere near providing enough ethanol for the country’s needs.” Trade taps While the talking continues and will, no doubt, produce a new tariff decision at some point in the future, the fragility of the biofuels industry in China is clear for all to see. Trade taps can be turned on and off at short notice, significantly affecting suppliers in the process. The fact that Brazil’s rising import needs enabled the USGC to export a new all-
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time high 1.15 billion gallons of ethanol this year is great for US producers in 2017 but arguably not the broadly based secure global platform those same producers want to see as they head towards 2018, particularly with Brazil edging towards the imposition of its own 20% tariff on US ethanol imports, to be applied above a 600 million litre quota. Back in China, meanwhile, talks appear to be progressing with Indonesia concerning palm oil imports for use in biodiesel production. “There have certainly been discussions in recent months between the Indonesian and Chinese governments with a meeting in Beijing taking place concerning potential imports of Indonesian palm oil into China,” says Oscar Tjakra. “There is still no official word on any agreements being reached but it would certainly be an interesting move if it happens.” Sufficient palm oil supplies would certainly appear to be available if an Indonesia/China deal is concluded. According to Rabobank’s latest analysis of the sector, Indonesian and Malaysian output is set to increase in 2018 as oil palm trees reach full recovery after the 2015 El Niño and as more oil palm trees reach maturity. Assuming normal weather conditions, the bank says it expects total global palm oil production
to increase by 3.5m tonnes, or 5%, to 67.5m tonnes in 2018. At the same time, global palm oil consumption is forecast to increase by only 1.5m tonnes year-on-year to 63m tonnes, due to the availability of other edible oils and a slowing demand of growth from traditional palm oil buyers. As a result, global palm oil prices are forecast to be 5-10% lower year-on-year in 2018. In addition to what may or may not happen in relation to palm oil exports to China, Indonesia’s own biodiesel mandate provides a “positive outlook” by increasing global palm oil demand not only in the short term but also in the long term, also according to Rabobank. Here again, however, the future will be largely driven by how much money the Indonesian government can raise to support its biodiesel objectives. Such finance is based on Indonesia’s CPO fund, whereby a levy is a collected on palm oil exports and used to incentivise domestic biodiesel producers. “The availability of this fund is crucial to support Indonesian biodiesel production and global palm oil prices,” says Tjakra. “In our scenario, we forecast domestic palm
oil consumption for biodiesel in Indonesia increasing by 400,000 tonnes year-on-year to 3.4m tonnes in 2018. However, without sufficient support from the CPO fund, Indonesian biodiesel production volume could be lower than our base case forecast. This could potentially lead to global palm oil prices coming in at 15-20% lower year-on-year in 2018.” Finally, a brief word on Japan where the biofuel industry is continuing to drive towards a 2020 goal of having a 3% share of the country’s gasoline consumption. Moving through gradual annual production steps since 2010 the industry has now reached 500 million litres of gasoline equivalent biofuels, according to Takushi Tani, bio business consultant with Japan NUS (JANUS). With bioethanol consumption in Japan continuing to rise, a new goal is expected to be set from 2018 onwards with several companies starting demonstration projects in preparation for further market growth. l
The potential for biofuels in Asia remains enormous
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biofuels algae Uncovering the potential of seaweeds for aviation biofuel
Flying high on seaweed
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iofuels are considered necessary to decarbonise parts of the economy where no alternatives are possible, notably aviation where electrification is not yet available. Europe today meets 90% of its renewable transport target with landbased biofuels which in many cases are at least as bad as fossil fuels. Meanwhile, climate science shows that fighting climate change will necessarily involve bioenergy, though the sustainable scale remains one of climate science’s most unsure areas. Traditional crop-based biofuels are linked to several challenges such as food competition, water scarcity, biodiversity loss and social injustice, as well as land
mismanagement and land use change. However, the use of third-generation marine biofuels, such as seaweed, helps in lowering most of these risks. A dive into the sea Seaweed (or macroalgae) is a large, diverse group of aquatic plants. Some common species, like sugar kelp, could become a promising source of biofuels if sustainably produced and used. Compared with, for
example soya, which is also used for the production of biofuels, growing seaweed is faster, more space-efficient and does not require the use of fresh water or the addition of fertiliser. Furthermore, seaweed does not compete for land area. On the contrary, seaweed can be grown in exactly the area we have the most of: the sea. While seaweed for biofuels will see benefits as well as similar and different challenges to land-based biofuels, we need to consider
There is a golden opportunity to design a high-potential industry effectively from scratch
all alternatives to fossil fuels that reduce difficult emissions. Existing knowledge and practice In Norway, brown kelp species like cuvie (Laminaria hyperborean), Norwegian kelp (Ascophyllum nododsum) and in particular sugar kelp (Saccharina latissima) are already being harvested. Compared to Asia, industrial seaweed cultivation in Europe is in the very early developmental phase and comprises only a few species. There is therefore a golden opportunity to design a high-potential industry effectively from scratch. There are currently more than 20 companies that have received a license to operate seaweed plants in Norway in over 40 locations along the coast from Rogaland to Finnmark county. Identifying challenges
Ocean Forest has a vision of large-scale sustainable production of biomass and energy along the Norwegian coast
Wild seaweed populations are an essential component for preserving biodiversity of marine ecosystems and wild harvest should therefore be contained and regulated according to the carrying capacity of the ecosystem. There are local impacts on nutrient competition with phytoplankton, and more research must be carried out on the impacts on local ecosystems, as well as actual life cycle emissions. Moreover, there are economic challenges related to the currently high costs of growing, harvesting, preserving/storing and pretreating the seaweed coupled
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with inadequate demand. There are also unreliable bioenergy policies with unclear sustainability criteria, unpredictable market size and unmoving industry actors. Optimisation will be needed and an additional cost for upgrading any biofuels to jetgrade fuels taken into account. Tackling these challenges will demand the creation of an advanced biorefining industry, loosely modelled on existing refining industries and taking an overarching, holistic approach to seaweed production and use. There are also challenges when it comes to preservation and storage methods, which have a large impact on which end-products will be available. However, the main challenges to a wide deployment of marine biofuels are not technical, but commercial and political. The goal must
therefore be to implement incentives, reduce costs and to increase the profitability of seaweed production for energy purposes.
combusts the seaweed directly for heat and power.
Making connections
In Norway, Ocean Forest has a vision of large-scale sustainable production of biomass and energy along the Norwegian coast and is establishing itself as a world-leading company in research on synergies between integrated solutions. The results will be used to prepare a business concept for commercial deployment of new solutions for biomass production on a large scale. This will be achieved by integrating a range of technological solutions and unique ecological cycles. Large-scale cultivation of algae and shells will help to mitigate climate change through its uptake and
When cultivation of seaweed is located in proximity to fish farms, seaweed can use the excess, otherwise wasted, nutrients and thereby ensure recycling and cleaning of the surrounding waters, which may otherwise suffer from oversupply of nutrients. Seaweed biofuels in combination with carbon capture and storage (BECCS/ Bio-CCS) hold the potential to deliver negative emissions, removing excess CO2 from the atmosphere over time. Carbon capture can be done at a biorefining facility that makes biofuels from seaweed or at a facility that
Seaweed production, first step
storage of CO2. Ocean Forest wants to build plants that remove more CO2 than they generate and thus develop key environmental solutions through synergies between biology and technology. These solutions will create better production conditions for existing industry and lay the foundations for new products such as food, feed for fish and animals and energy, in particular in the form of biofuels. The company can demonstrate the possibilities for sustainable, integrated multi-trophic aquaculture, storage of CO2 in biomass and provide the seaweed needed for testing and developing production of biojet fuel. l
For more information: This article was written by Pauline Kajl, policy assistant at Bellona Europa. Visit: www.bellona.org
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US researchers use papaya-fed algae to produce biodiesel
The green stuff
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n Hilo, Hawaii, Agricultural Research Service (ARS) plant pathologist Lisa Keith is leading an effort to produce biodiesel using a type of green algae known as Auxenochlorella protothecoides (formerly known as Chlorella protothecoides). Here, she gives an analysis of her research. The main focus of my programme deals with studying the biology, detection and management of invasive pathogens causing disease on crops grown under tropical and sub-tropical conditions. Attempts are made to integrate laboratory, greenhouse and field-based research to develop and deliver practical disease management approaches that can be adopted by growers. My main goal is to help solve real-world problems in an environmentally-sound and economically viable way. The zero-waste approach was actually the idea of my former centre director, Dennis Gonsalves, and it involved various aspects. My research focus involved investigating the potential of growing microorganisms using agricultural waste as a feedstock. The Aloha State Hawaii is one of the most geographically isolated areas in the world. The state imports more than 85% of its food, fuel, feeds and fertiliser needs. Even a small reduction in fuel or feed costs, or an increase in food production or value, would increase farm profitability. The research falls under our broad ‘zero
In Hilo, Hawaii, Agricultural Research Service (ARS) plant pathologist Lisa Keith is leading an effort to produce biodiesel using a type of green algae
waste’ approach to make agriculture in Hawaii more profitable and addresses food, feed and energy
be potential sources for biofuel and/or animal feed production. Many of them are food crops, for which the waste stream
Hawaii imports more than 85% of its food, fuel, feeds and fertiliser needs security issues in Hawaii. Hawaii Island produces a range of feedstocks that could
(as culled fruits) could be used as an inexpensive and excellent source of feedstock
for microorganisms grown in tanks. All of these crops could ensure a sustainable, available and efficient supply of biomass which would eliminate the bottleneck of expensive land and feedstock costs usually associated with alternate energy streams. ‘Papaya smoothie’ Papaya was used as the model system for the research. The project initially set out to determine if waste papaya fruit could act as a feedstock for
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11 – 15 June 2018 Frankfurt am Main
Papaya was chosen as a feedstock since approximately 30 million pounds are grown in Hawaii per year
the heterotrophic production of the green algae Chlorella, which could be harvested and processed for oil. The system works by growing the algae in giant vats, called “bioreactors.” There, hidden from sunlight, the algae are fed what might be likened to a papaya smoothie. While nearly all algae are capable of using energy from light to produce organic molecules from carbon dioxide and water, some algae, including Auxenochlorella protothecoides, can also absorb organic molecules such as sugars from sources such as papaya juice. In the process, these industrious algae end up storing 60% of their cellular weight in lipids. These lipids (or oils), in turn, provide material for making biodiesel. Papaya was chosen as a feedstock since approximately 30 million pounds are grown in Hawaii per year (most of which is on Hawaii Island) and more than 30% is left unsuitable for market due to disease or post-harvest damage. The next step in our
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research is to scale-up the papaya model (which is being done in collaboration with the Hawaii Department of Agriculture’s Agribusiness Development Corporation and Big Island Biodiesel) and also broaden the scope to include additional heterotrophic microorganism and feedstock combinations that could be more useful for biofuel and/or feed production. Challenges do exist for upstream and downstream processing, even at the laboratory scale, which is where the bulk of the work has been conducted. l
BE INFORMED. BE INSPIRED. BE THERE. › World Forum and Leading Show for the Process Industries › 3,800 Exhibitors from 50 Countries › 170,000 Attendees from 100 Countries
For more information: This article was written by Lisa Keith, research plant pathologist at USDA ARS in Hilo. Visit: www.ars.usda.gov
www.achema.de
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biofuels water services Making the right decisions on water strategies can improve ethanol plant operational effectiveness
Know your limits
Andrew Ledlie, biofuels marketing manager at Solenis
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aximising operational effectiveness is as important to ethanol plant managers around the world as it can be challenging. Their efforts may include water-centric strategies, such as minimising water use, reducing or eliminating discharge or finding ways to reduce waterrelated operating costs. Andrew Ledlie, biofuels marketing manager for Solenis, a worldwide leader in providing solutions to water-intensive industries, often consults with ethanol plant managers on the stateof-the-art technologies and processes that help them achieve their water-related performance goals. He recently shared his thoughts with Biofuels International on the best approaches to take – and the pitfalls to avoid – as ethanol plant managers address their water issues. How important is it for ethanol plants to reduce water use or eliminate discharge? Dealing with water issues
is very important and much of it is linked to regulatory compliance. As water use and discharge limits become more stringent, it’s more challenging for ethanol plant managers to meet them. Often, the tighter the regulations, the greater the challenge. But regulatory compliance is just part of the story. As an ethanol industry observer, I know that many plant managers want to make their water use more efficient and effective because it’s the right thing to do for the communities where they live and work. Think about US ethanol plants, for example. Many of them are located in the farm belt, where water for irrigation is vital. They know that the less water they divert for ethanol production, the more will be available for farming. That benefits the entire community.
Are there certain strategies that have proven more successful than others in helping plants reduce their water consumption? What are some of the positives and negatives of these strategies? One common strategy is to reuse water that would normally be discharged, filtering or pre-treating it and bringing it back to the process side or “front end” of the plant. This can reduce both water demand and water discharge, but there is a downside. Take, for example, cooling tower systems. Prudent plant managers should use a variety of chemicals to protect them from the harmful effects of scale, corrosion and bacteria. Plant managers who don’t provide this protection risk losing cooling capacity, which results in lower ethanol
production, higher electrical costs, a larger carbon footprint and ultimately higher expenses to repair or replace the cooling tower and associated piping and heat exchangers. The problem occurs when the cooling tower water is directed to the process side of the plant. While this is a significant volume of water that can be reused, many cooling water treatment products aren’t suitable to end up in distillers grains or are harmful to yeast. So, reusing this water greatly restricts the choice of chemistries available to protect the cooling system. Can you cite an example of where applying the right strategy is enabling a plant to operate more efficiently and effectively? Recently, one of our US customers was very intent
Solenis’s OnGuard 2-plus control system allows plant operators to do real time, in situ performance monitoring on cooling systems, ensuring that process changes made to improve water or carbon efficiency do not result in negative side effects
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on making measurable, verifiable improvements in the performance of their plant’s cooling tower. Since they weren’t diverting tower blowdown to the process, the door was open for the innovative microbiocide technology and performancebased monitoring and automated control system that Solenis is known for delivering. The process began with a fairly detailed audit to understand how the plant was running and how its water was being managed in order to determine if there was an opportunity for improvement. The audit included inspection of the plant’s cooling towers and heat exchangers and a review of equipment inspection reports, as well as a walkthrough to review the plant’s layout, its water balance and discharge requirements. The audit clearly showed the potential for
improving cooling system performance. The plant manager opted to use Solenis Biosperse XD3899 Micriobicide technology to penetrate biofilms and better clean the system and
improvements the customer was looking to make. What was the outcome for the plant? The results have been impressive. There has been a
‘There are always new and better ways for ethanol plants to operate more efficiently and effectively’ Andrew Ledlie, biofuels marketing manager at Solenis
minimise copper corrosion. The Solenis OnGuard system was also implemented to monitor scale, corrosion and biofilm control in real time and verify the performance
90% reduction in chiller use so far this summer, in part because the system has been kept free of efficiency-robbing biofilm. That’s critically important because cooling systems
account for up to one-third of an ethanol plant’s electricity use. Reducing a chiller’s use by 90% can significantly reduce electricity costs and also reduce the plant’s carbon footprint. In addition, the OnGuard monitoring system enables the plant to reduce the amount of chemical needed, because it tells them how much chemical is necessary to meet their performance objectives. Is there a final thought you’d like to leave with readers? Be open to innovative ideas and new technologies and have realistic expectations when implementing waterrelated strategies. There are always new and better ways for ethanol plants to operate more efficiently and effectively, but it’s critical that plant managers carefully consider the broader implications of the strategies they choose. l
Argus Biofuels 2017
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Sari Mannonen, VP, UPM Biofuels
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Timo Huhtisaari, Sustainability and Biofuels Expert, NEOT
Jan Henke, Director ISCC and Meo, Carbon Solutions
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biofuels water services Ethanol facilities are using pioneering innovations to reduce water
Water, water everywh Internet of Things
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ne of the major challenges facing the US’ bioethanol sector is its need to reduce water and its increasingly outdated infrastructure, as digitisation and the rise of Internet of Things (IoT) technology continues to evolve and present companies with new ways to differentiate their services. However, one company – U.S. Water – is tackling the problem. Here, Liz Gyekye catches up with U.S. Water strategic business leader Mitch Manstedt and U.S. Water director of Automation & Service Michael Henk to find out more. What is the next trend for the bioethanol industry? U.S. Water strategic business leader Mitch Manstedt says: “We are continuing to see a trend for improving water efficiency and water use in the industry. When ethanol plants were first being built, they were using 3 to 6 gallons of water to produce one gallon of ethanol. Over time, technology, data collection and chemistry have evolved to improve the efficiency of water use in the industry. Now, we are seeing an average of 2.5 to 4.5 gallons of water to produce one gallon of ethanol. And, in some scenarios, water use is even less than 2 gallons of water per gallon of ethanol. In an effort to continue to improve the efficiency of water and be mindful of how water is being used, operators are now looking at opportunities for water reuse, alternative chemistries and new technologies. “A lot of the drivers behind
water reuse and water reduction are environmental permits and environmental regulations. Water reuse and water reduction projects are not exactly cheap for these facilities. However, we are seeing environmental regulations aimed at reducing water discharge and more facilities are taking water reuse seriously. “Currently, many biofuels facilities in the US are moving toward zero liquid discharge (ZLD) operations. I would estimate that there are around 50 plants looking at some sort of water reduction project. When considering a water reduction project, such as ZLD, it’s important to take into consideration the quality of the incoming water, as well as all of the areas that are impacted. In addition to water quality, this includes by-products used in animal feed, such as wet and dried distiller’s grains, as well as corn oil. It’s important to consider how the water reduction project will impact these other areas, in addition to the ethanol production. “We evaluate all types of water sources and different
types of operating conditions when a facility is considering ZLD or some type of reduced liquid discharge option. “It’s important to note that each facility is going to be different. Not one facility is going to be the same.”
has not done anything to the source to meet new permit regulations and discharge restrictions. In addition to this, that facility may have to look for alternative water sources or look for ways to reduce discharge or aim for ZLD.
Are environmental regulations becoming more stringent? Manstedt: “Yes. In 2008, there were only seven parameters included on environmental permits that operators needed to monitor for water quality and discharge. Five years later, the list more than doubled in some states (and more in others) to around 14 items on the permit that needed to be monitored. In addition to a growing list of parameters to monitor, the allowable discharge amounts have also become more stringent, making it tougher to meet those discharge regulations. As an example, if a facility operator used a certain water source when they built their facility in 2003, this water source may not meet the standards of today’s permitting world, especially if the operator
Are ethanol operators taking the issue of water reuse seriously? Manstedt: “Absolutely. At first people were just worried about the quality of the water, but now we are running into issues where it may be challenging to access the supply of water as well. This challenge, coupled with environmental regulations, makes it increasingly difficult to operate a biofuels facility. This is an ever-changing scenario. As populations grow, this puts pressure on water usage. In addition, more people are migrating to new places which can really put a strain on the water supply and water quality for an average household, let alone on an ethanol facility.
U.S. Water strategic business leader Mitch Manstedt
U.S. Water director of Automation & Service Michael Henk
What are ethanol producers doing to reduce their water usage? Manstedt: “Every facility is different, but the first step in reducing water usage is to determine where the water is used within the facility by looking at every gallon they bring to the facility and capturing all the data they can around it. Then, they can analyse the data to determine where they can improve in saving water. One facility may focus on water usage in the cooling tower system, and another facility may look at how to
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here and a drop of the “We evaluate all types of water sources and different types of operating conditions when a facility is considering ZLD” Mitch Manstedt, U.S. Water’s strategic business leader
save on water use during the ethanol making process. How is the Internet of Things (IoT) impacting the biofuels industry? U.S. Water’s Director of Automation & Service Michael Henk says: “At U.S. Water, we provide the conduit for the value provided by technology, so we don’t necessarily get market specific when we are looking at a solution. By adapting the Internet of Things (IoT) we are enhancing the customer experience. It is also about enhancing our representatives, our technical experts that are working with our customers, and their ability to support our customers and provide them with a valuable solution. Manstedt: “We rely heavily on our market experts to help drive value solutions with technology. The biofuels facilities are niche, and are filled with very segmented components that capture data. For instance, a reverse osmosis unit could be a single standalone unit, which has no interface with the operation scheme or operating system for that facility. Or, there could be 14 or 15 segments of that type of equipment with separate data. In relation to this, U.S. Water utilises the IoT to bring all those data together to make sure they can be analysed and accessed very quickly, rather than somebody standing over that piece of equipment trying to determine how effectively it is operating. “By utilizing the IoT, we
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can make sure the data are readily available to ensure the unit is operating in peak condition and protecting our customer’s bottom line. With the recent introduction of IoT to the biofuels industry, how quickly do you think facilities will begin to adopt this technology? Henk: “Within the last few years, U.S. Water has been working closely with its biofuels customers to begin implementing IoT solutions. Manstedt: “I think in the next year to five years, the biofuels industry will take very big steps in IoT implementation as aging equipment starts to go offline and those systems are replaced. Are there any challenges with IoT in relation to privacy issues? Manstedt: “The current technology that some ethanol operators are operating on is not what they would call ‘cybersecurity-safe’. They want to move to a new system with stronger security to protect themselves. Henk: “The issue is probably two-fold. Firstly, like what Mitch says, there is the issue of trying to get these systems upgraded to strengthen security. Secondly, on every one of our applications we work with a number of technology providers with IoT. On our latest gateway development, we have taken close to 24 different measures on security
settings. For instance, default passwords and user names on operating systems are not there and not enabled. We have also made sure that all of our information is on a secure and private network. There are a variety of different measures that can be taken into consideration which is imperative to make sure that the entire network is going to be secure and something that our customers can have a view into. It is also something that our customers will have confidence in – that we are going to treat their data with integrity. Would you recommend that an ethanol operator build an IoT system into their operations if they were building a facility tomorrow? Manstedt: “Yes, I would. I think that there is a lot of value that can be provided from IoT, especially when you are working with a network of suppliers who are bringing value to the table. It just needs to be done with caution, so that their information is going to be treated with integrity. In the IoT space, there are emerging standards around security. “To better provide to our customers, we have developed an IoT engine. We offer cloud-based service systems where we are analysing all of this data. The IoT engine is something that fits into a continuous improvement programme and is always morphing into something better. How can we provide
more information? How can we predict what may happen at a particular facility? These are some examples where we are heading with our IoT engine. What is the one thing that you think the bioethanol industry should be doing more of/ be better at? Manstedt: “The industry is constantly improving and changing. Facility operators are constantly looking for better solutions and business partners to improve their facilities. How facilities operated five years ago is completely different from how they operate today. I give the bioethanol industry a lot of credit for seeking continuous improvement opportunities. I really think this industry is poised to grow and continue to improve the way it uses its resources, both including people and natural resources. It is U.S. Water’s 20th anniversary this year. How do you see the company panning out in the next ten years? Are there plans to expand in the future and look to Europe? We are very excited to celebrate our 20th anniversary. Our strategy is to grow U.S. Water’s North American presence by adding customers, products and new geographies. We believe water scarcity and a growing emphasis on water conservation will continue to drive growth. l
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biofuels water services Water and energy conservation through reverse osmosis
Counting the costs
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everse Osmosis (RO) is a process that uses a semi-permeable membrane to remove about 99% of total dissolved solids (TDS) from a water source. The commercial application of this equipment dates back to 1959. Innovation in equipment and membrane manufacturing has made this technology more affordable and suitable for use in industry as a component in a water treatment programme. RO uses RO feed to produce RO permeate (relatively pure water) and RO concentrate or reject (concentrated water.) This article will demonstrate the benefits of using RO in the biofuels industry and discuss some of the potential challenges with RO operation. Boiler Efficiency is gained in the boiler by operating with higher cycles of concentration. Cycles of concentration are the ratio of TDS in the boiler compared to the feedwater. The lower the cycles of concentration, the greater the need to improve the quality of the make-up water. Why? Boiler blowdown rates as a percentage of feedwater flow are calculated at 1/cycles of concentration. So, cycles of concentration calculated at 25 result in 4% blowdown. Increasing the cycles of concentration to 50 would result in 2% blowdown. A reduction in boiler blowdown conserves energy in the form of fuel consumption and reduces both chemical and water consumption. The ability to operate at higher cycles of concentration is achieved without sacrificing scale or corrosion protection while ensuring sufficient carryover prevention. The use of the
relatively pure RO permeate dramatically alters the quality of the water. Since purer water is being utilised, it is common to need some alkalinity buffering backed with the addition of a caustic source. Cooling towers Blending RO permeate back to the cooling tower effectively improves the composite make-up water TDS. Just as efficiency is gained in the boiler by operating with higher cycles of concentration, the same holds true for the cooling tower. Blending 25% - 75% RO permeate as part of the total make-up can have a dramatic impact on the cooling cycles of
and the RO membrane. They are generally engineered and sold as a package. There are several configurations and designs. When operating the RO, they generally operate between 60% - 90% recovery. Recovery is the percent of RO permeate made compared to the RO Feed. When operated at 75% recovery, 75 gpm of RO permeate is produced with 100 gpm RO Feed. This results in 25 gpm of RO concentrate being wasted. There are occasions when the RO concentrate can be re-used instead of wasted, but this may pose some potential scale problems. Consideration should be made to select an RO with excess capacity to direct
The heart of the RO machine is the RO membrane concentration. Cooling cycles of concentration are the ratio of TDS in the cooling tower compared to the composite make-up water. Cooling tower blowdown is calculated as 1 /cycles of concentration. If the cycles of concentration are calculated at 4, there would be 25% blowdown. Increasing the cycles of concentration to 6 would result in 16.7% blowdown. The reduction in blowdown corresponds to a reduction in chemical consumption. This too can be accomplished without sacrificing scale, corrosion, or microbiological contamination protection. Reverse osmosis The key components in a Reverse Osmosis machine are pre-filters, a high pressure pump to exceed osmotic pressure, housing vessels,
overflow to the cooling towers. There is also a benefit to having a back-up to manage maintenance and cleanings. This author would prefer to have two 150 gallons per minute (gpm) RO units instead of one 300 gpm unit even though the purchase of two units generally exceeds the cost of the single unit. The heart of the RO machine is the RO membrane. They are subject to fouling with suspended solids, scaling, microbiological fouling, and chlorine damage (for Thin Film Composite or Polyamide membranes.) Measuring the RO Feed by conducting a Silt Density Index (SDI) test will ensure the water quality will suffice to prevent suspended solids fouling issues. Most membrane manufacturers require an SDI <3 or <5. Initial testing may reveal acceptable values for SDI. It is a good
practice to measure this value at some frequency to ensure no changes are occurring in the RO Feedwater. Scaling is a concern as RO permeate penetrates the membrane and water concentrates TDS. Exceeding the solubility of various scales will result in deposits forming on the RO Membrane. Pressure drops across the membrane will increase and permeate quality generally begins to worsen. Operating the RO within design specification should prevent scale. Microbiological fouling is a common problem. A regular cleaning frequency with high pH cleaners greatly aids prevention of this concern. Chlorine is problematic as it causes permanent damage to membranes made from thin film composite or polyamide. For this reason, carbon is used for mechanical removal or bisulfite is used for chemical removal when chlorine is present in the RO Feed. Summary The use of RO permeate to improve boiler feedwater results in fuel, water, and chemical conservation. When added to the cooling tower, water and chemical are conserved. When evaluating if an RO is right for a plant, weight the cost of purchase, installation, and operation against the benefits. Understand the RO will have a cost in terms of pre-filter changes, electrical consumption for the high pressure pump, RO membrane cleaning, and periodic RO membrane replacement. l For more information: This article was written by Randy McDaniel, strategic accounts manager of Weas Engineering. Visit: www.weasengineering.com
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biofuels transportation UPM bus in test at VTT Technical Research Centre of Finland
Driving cleaner city traffic with advanced biofuels
All means necessary
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he road transport sector is a major source of Europeâ&#x20AC;&#x2122;s emissions of greenhouse gases (GHGs) contributing to global warming. In addition, the sector also generates harmful local emissions, such as nitrogen oxides (NOx) and particulate matter (PM), affecting air quality. Emissions from road transport are considered more harmful than those from other sources, as most emissions occur in urban areas where people live and work. Particulate matter (PM) emissions undoubtedly have an effect on human health. Small particles can penetrate deep into the lungs and cause respiratory problems. People suffering from asthma tend to experience symptoms but poor air quality also affects people who are basically healthy. During rush hours in cities, particle concentration
can be up to 100 times higher than during quieter periods. Nitrogen oxides, NOx, are emitted when fuel is being burned e.g. in traffic, industrial processes and power generation. In areas of high traffic, the NOx emitted can be a significant source of air pollution. Long-term exposure to NOx can decrease lung function, increase the risk of respiratory conditions and the sensitivity to allergens. Burning fossil fuels is by far the main man-made source of NOx. Even if diesel engines are more fuel-efficient than gasoline engines, their NOx emissions are larger. However, selective catalytic reduction (SCR) catalysts and diesel particulate filters on modern cars reduce post combustion NOx significantly. The problem is the huge number of older cars on roads that are not equipped with this technology. In addition to NOx, other traffic emissions
like carbon monoxide, unburned hydrocarbons and particulates pollute the air. These emissions are actually lower in diesel passenger cars than in gasoline cars. Thus, when comparing diesel and gasoline cars and total emissions, diesel cars are as good as gasoline cars. Local emissions are also influenced by mileage and driving style as well as the fuel used. Reducing tailpipe emissions
Sari Mannonen, VP of UPM Biofuels
Fuel quality is an important element in reducing emissions from transport. Renewable diesel is known to significantly reduce GHG emissions but it also reduces harmful tailpipe emissions. Renewable diesel also has a much higher cetane number than fossil diesel, thus the fuel ignites more quickly and burns more completely during the combustion process. This helps reduce
tailpipe emissions, such as aromatic hydrocarbons and particulate matter. UPMâ&#x20AC;&#x2122;s wood-based UPM BioVerno is a good example of sustainable advanced renewable diesel. It is a low-carbon drop-in fuel that can be used with all existing diesel vehicles and fuelling infrastructure without modifications. UPM
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BioVerno diesel significantly reduces harmful particulate emissions as well as carbon monoxide, hydrocarbons and nitrogen oxides emissions polluting the air. The relevance of using renewable diesel in older cars that do not have exhaust after treatment equipment is even greater. Cleaner public transport Helsinki Region Transport (HSL) has been at the forefront of taking environmental performance into account when procuring bus services. Commercial vehicles operated by the City of Helsinki and bus services commissioned by HSL will fully switch to renewable fuels by 2020. Vehicles serving on HSL’s routes in the Helsinki region include around 1,400 buses, which consume about 40,000 tonnes of fuel each year. The construction services company Stara, which operates most of the city’s vehicles, is also involved. Sustainably-produced biofuels play a major role in reaching the emission targets set by Helsinki Region Transport. UPM has been testing Finnish wood-based UPM BioVerno diesel fuel in Helsinki region buses in collaboration with HSL for a year. According to the test results, using UPM BioVerno in the current bus fleet instead of fossil diesel would significantly reduce emissions resulting from public transport. In laboratory testing, the tailpipe emissions of UPM BioVerno diesel, such as nitrogen oxides and particulate matter, were significantly lower than those of the commercialgrade fossil diesel. The tests were carried out on Euro III class buses that are still frequently used in Finland. In the traffic tests, the buses drove a total of approximately 400,000 kilometres and UPM BioVerno worked just like the best diesel fuels. In Euro VI class buses, the diesel particulate filter (DPF) and
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selective catalytic reduction (SCR) catalyst already reduce emissions close to zero – but a high quality fuel, such as UPM BioVerno, ensures that the exhaust cleaning systems operate effectively even after driving significant mileage. The advantage of high quality liquid biofuels lies in the fact that neither new vehicles nor a new
use of fossil fuels. In road transport, even with more efficient combustion engines and successful deployment of electric drive technologies, Europe will remain a consumer of liquid fossil fuels in 2050. Despite the recent debate, it is not really about electric cars vs. biofuels. Electricity is a great future energy source for new cars. However, the size
The EU’s transport still depends on oil for 94% of its fuel distribution infrastructure are required. Local emissions can be reduced significantly through the targeted use of sustainable biofuels. All means of renewable energy are needed The EU’s transport still depends on oil for 94% of its fuel, making it one of the toughest areas to reduce the
and capacity of batteries for heavy duty use is a challenge. As the vast majority of heavy duty vehicles use diesel, its demand continues to rise. Today, 70% of global diesel is consumed in heavy duty road transport and demand is projected to grow 45% by 2040. For heavy duty vehicles there are fewer options than for passenger cars so diesel remains the dominant fuel.
The Euro VI emission standard has brought down the regulated emissions of all heavy duty vehicles significantly, and the local emissions of new diesel buses are already lower than those of passenger cars. For light duty vehicles, Euro 6 emission regulation with new test requirements is entering into force this year. Euro 6/VI vehicles, in combination with low-carbon renewable diesel, are a very good solution for both climate and local air quality. Increasing the efficiency of the transport system, promoting low-emission alternative energy and gradually increasing the use of advanced biofuels are the main pathways to decarbonising transport. An integrated approach for technologies and fuel types will produce the best result. l
For more information: This article was written by Sari Mannonen, VP of UPM Biofuels. Visit: www.upmbiofuels.com
According to UPM, its BioVerno diesel significantly reduces harmful particulate emissions
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biofuels ethanol dehydration Whitefox ICE installation at Pacific Ethanol
Making more with less
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eing open to new technologies and innovations can help ethanol plants to meet their sustainability goals and operate efficiently and effectively. A number of companies, including US bioethanol producer Pacific Ethanol, are using Whitefox Technologies’ membrane solution to achieve their sustainability targets. Whitefox is a technology engineering company and it focuses on membrane technology. The company’s main market is ethanol – including industrial applications, pharmaceutical and biofuels. It develops solutions to reduce the waste and environmental impact of production processes, helping its customers to
reduce bottlenecks and increase efficiency. During the traditional ethanol production process, millions of gallons of finished, dehydrated ethanol is flushed back through the process from which it just emerged, moving back one whole step. Producers do this because the traditional dehydration process (molecular sieves) for their post-distillation water/ethanol mix requires it. In layman’s terms, the molecular sieves act like giant sponges (mainly via zeolite beads) which adsorb the water after distillation to get to final product specification (200 proof). The beads get saturated, so ethanol that could have been sold is sent back through the molecular
sieve to suck out the water from the beads, but then it becomes water rich and that ethanol has to be recycled back through distillation, in what becomes a large recycle loop. This loop can be 20-30% of the entire plant’s capacity. All in all, you end up with a stream that is around 60% alcohol that goes back to the distillation column and gets distilled again. In contrast, with Whitefox’s solution you run it through a membrane instead of it going back to the column. Whitefox’s integrated cartridge efficiency (ICE) technology requires no regeneration cycle, by virtue of its design and the specific attributes of its unique membrane. The technology relies on a
collection of thousands of tiny tubes made entirely of a hydrophilic membrane. As a mix of ethanol and water pass through these tubes, water is absorbed into the wall of the membrane and a slight vacuum pulls the water through in a continuous separation process. The ethanol in the mix is retained in the membrane tube and exits as an extremely dry ethanol. Here, Liz Gyekye catches up with the two companies using this innovative solution. First up is Pacific Ethanol – a leading producer and marketer of low-carbon renewable fuels. Neil Koehler, founder, director and CEO of Pacific Ethanol, found time to explain how Whitefox’s technology helped his company.
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Neil Koehler, founder, director and CEO of Pacific Ethanol
Tell me a bit about your background? I have been working in the ethanol business since I graduated from college in the early 1980s. I co-founded an ethanol business called Parallel Products in the mid1980s, which sells ethanol and feed products. In fact, it was California’s first ethanol production company. That was a niche business taking residual materials from the food and beverage industry. We sold the business in 1998. I then started a marketing company called Kinergy Marketing – an ethanol sales and distribution firm. During that period, California went from using no ethanol to 10% ethanol (E10) very quickly and Kinergy was able to grow with this market. I was there with Kinergy to form relationships with the Midwest producers and expand the markets outside the Midwest. Essentially, that really was the genesis to Pacific Ethanol. In 2003, we said “hey, we have this huge market out West and all the production in the Midwest, so, the manufacturing should migrate to where the markets are”. It wasn’t just the ethanol we looked at, but the feed. Corn was already grown here in California but most of it was coming from the Midwest to supply the largest dairy shed in the world, which is based in the Central Valley of California. So, we said
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“cattle and cars” those are our markets, let’s build an ethanol plant here. At that time, we were the first US company to build multiple ethanol plants outside the Midwest and others have now emulated that. It is still a Midwest dominated industry but it has been valuable for us to be local to our markets. It has also given us a low-carbon based operation. We don’t dry any of our feed, since it’s all for local distribution. We have some of the lowest carbon-scored product in the country. That is where Whitefox has come in and been helpful. It has not only given our plant more efficiency but reduced our energy use which has reduced our carbon score even further. Pacific Ethanol owns nine ethanol production facilities, four in the Western states of California, Oregon and Idaho, and five in the Midwestern states of Illinois and Nebraska. The plants have a combined production capacity of 605 million gallons per year, produce over 1.5 million tons per year of ethanol coproducts such as wet and dry distiller grains, wet and dry corn gluten feed, condensed distillers solubles (CDS), corn gluten meal, corn germ, corn oil, distillers yeast and CO2. Why did you decide to employ Whitefox’s technology in 2016? I met Gillian (CEO of Whitefox) in Budapest three years ago and was intrigued by the technology. As a company we have always been innovative. We have always focused on
reducing cost and reducing our carbon intensity. To find a technology that does both means we hit a home run. It is elegant and it makes sense. We also look at chemical treatments that improve yield. If you do this, you get a lower carbon score. Whitefox’s technology fit the bill. It did take a while to install. We needed to do a commercial demonstration (2015) with the technology and at the time it showed that it helped to reduce our energy costs. Now, we have created a more stable environment for our distillation columns because we have taken a load off the molecular sieves, which means there is less recycling and this creates more stability in the distillation system overall. By taking a load off of the columns our cooling capacity has improved. This is very critical in the hot summer months in California, where you typically take a hit on capacity when it gets super-hot. This is because you can’t keep up with the cooling requirements, which is fairly typical in the ethanol industry. Short of putting in new cooling towers, this has helped resolve that situation. We have moved from the commercial demonstration to operating it and we are extremely happy with the results. We are still fine tuning the process, but we are very confident of a minimum 5% reduction in our overall steam cost. We buy natural gas to produce steam. It doesn’t impact the electrical so much.
‘This technology has helped with a half-a-million dollar advantage to the bottom line (between cost savings and carbon benefit)’ Neil Koehler, founder, director and CEO of Pacific Ethanol
However, as we get more capacity out it marginally helps because you are getting more output with essentially the same electricity running the pumps and motors. The 5% reduction contributes to our objective to continue to lower our carbon score over time. We will be able to monetise that score in the future. We are preparing now to submit for a new score based on this and other changes. A 5% natural gas reduction lowers our carbon score by about a point. In today’s market, that’s about eight tenths of a cent/gallon of premium value. On a 40m gallon plant that would be worth $320,000 a year. Together with natural gas savings our bottom line improves by over half-amillion dollars per year before considering the economics of additional capacity. California is leading the way on sustainability in the US. It has introduced the LCFS. Does this pave the way for these sorts of developments? 100%. If gasoline has a carbon score of 110, we are at 65/70 with ethanol. There are a number of ways credits are generated, but ethanol has generated around half of those credits to date. It’s been the workhorse of the programme. As the programme gets more stringent and the reductions that are called for get greater, then the ethanol industry can continue to make a significant contribution. We are not sitting still – California is making inroads on its GHG emission reductions. We need to continue to employ technologies like Whitefox as they help drive our score down. We are working with the state of California to implement higher level blends. In California we are capped at 10%, but if we could be 20-30% of the blend that low carbon product will go further and generate more carbon credits.
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biofuels ethanol dehydration Has this technology helped your profitability? Yes. You have to consider that you are able to run a bit more capacity and this technology has helped with a half-amillion dollar advantage to the bottom line (between cost savings and carbon benefit). What other challenges do you face apart from environmental concerns? Market access. The oil companies control the market and the distribution of liquid fuels including the ethanol blended into gasoline. They are not particularly interested in yielding more market share to the ethanol industry, especially beyond 10% blends. We have the renewable fuel standard (RFS) at the federal level, which is intended to expand the market for renewable fuels. However, the US EPA has not taken an aggressive approach on this. Frankly, we feel that they have not been following the law and this was affirmed by the Federal Court of Appeals in a recent decision. So, there is a great opportunity here to get the RFS back on track to push the market access for more renewable fuels. Bioethanol should have more than a 10% blend share. We do have retailers rolling out E15. It’s starting to take hold, but it has been slow going because you have a major oil dominated market that is very resistant to that additional market share for something they do not control. How do you see the rest of the year panning out? We are optimistic. It was a rough start to the year for the ethanol industry. Incremental expansions and technologies like Whitefox have helped the industry to reduce bottlenecks and increase capacity. We have increased our capacity as an industry to over 16bn gallons. We are producing more than the 10% blend rate is absorbing but exports have been growing to maintain a reasonable supply demand balance. The last
few weeks have been a better margin environment. We need a level of discipline in keeping that supply and demand balance. We are confident the last half of 2017 will be stronger than the first half.
Brüggemann Group’s Peter Tippelt
Peter Tippelt, production manager for ethanol for the Quality and Environmental Management Systems at the Brüggemann Group, also found time to explain how Whitefox’s technology has helped his company. Tell me about Brüggemann Alcohol and what you do? Brüggemann is a small-tomid-sized company and we have 180 employees. We were founded in 1868 and we will be celebrating our 150-year anniversary next year. The business started out specialising in ethanol and focused on chemicals later. Our business is based on three pillars: industrial chemicals, plastic additives and ethanol. In the field of industrial chemicals, we trade worldwide. In relation to this, we specialise in reducing agents for the textile industry and for polymers. These are not
products you can buy in a store. We buy agricultural-based ethanol from the sugar industry or the starch industry. We buy this, rectify it and dehydrate it. Subsequently, we sell it mainly to the pharmaceutical markets. We produce 20 million litres of ethanol per year. The dehydration process produces 12 million litres. Tell me about the specific technology that Whitefox has provided you and how this has benefitted you? We use a capillary membrane system from Whitefox, which is a very simple technology. Essentially, you only need an evaporator, some modules, a vacuum unit, a few pumps, and heat exchangers. This gives you simple control of your plant. You don’t need a lot of personnel to supervise it and it runs really smoothly. As long as you provide stable steam and cooling water you have a stable plant and controls. Maintenance is confined to the mechanical part of the plant (pumps, heat exchangers) and little maintenance is required on the modules. The first Whitefox membrane installation we installed was back in 2002. The second installation of a membrane plant at Brüggemann was in 2006 with a new generation of modules. The durability of the membranes is very good. They last a long time, about five years in our case. Two years ago, we installed new membranes which still have good performance. The Whitefox technology can integrate well into ethanol plants. When you have a plant that produces 85-90% crude alcohol that is directly dehydrated, you do not have to rectify your crude up to 96.4% and then dehydrate it. You can use less energy to rectify
‘We produce 20 million litres of ethanol per year’ Peter Tippelt, production manager for ethanol for the quality and environmental management systems at the Brüggemann Group
the ethanol up to 85% and go directly to the membranes. This is a great benefit in terms of energy consumption. This is not possible with our system because we have to go up to 96.4% to have the pharmaceutical quality that we need and then dehydrate. However, if you don’t need this pharmaceutical quality you can dehydrate a lower percentage of ethanol. How different is this technology compared to what you were using before? The previous technology we used was the same, but the membranes were completely different. Previously, we used the plate and frame technology. We had problems with its reliability; we often got holes in the membranes and had to change them frequently. We stopped using it after six years. In regards to Whitefox’s technology, it’s a development. We started in 2002 and advanced it further and further together with Whitefox. Since then, we have been very successful in developing it. How can new technologies help producers improve their sustainability footprint and profitability? In terms of the dehydration process with the membrane system from Whitefox, the main feature is the selectivity of the membranes for better yields. The more products you can get out of your feed, the better your profitability and the less energy consumption you have. What is your vision for the future – particularly in relation to the technologies you are using? At the moment, we are not planning to invest in more ethanol plants. In addition to our plants, we hope to go into the recycling business in relation to recycling used ethanol. The product from this system will be azeotropic ethanol (ethanol with 96.4 volume%). l
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Technology to reach 200-proof ethanol
Home and dry (approximately 20% by volume) producing 200-proof ethanol. The non-alcohol, solids phase from distillation, is further processed to separate the solids from the liquid phase, that solid product goes to the dryers and the market that comes out of this is feed. The ethanol that gets further dried in the sieve process is the fuel.
Kory Wilson, director of ICM Project Management
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t has never been more essential for ethanol plants to maximise throughput. ICM, Inc. is helping plants do this through its ethanol dehydration systems. Here, Liz Gyekye catches up with Kory Wilson, Director of ICM Project Management. Tell me about the journey ICM has taken to become an expert in ethanol dehydration? Our owner Dave VanderGriend and his brother Dennis VanderGriend have been involved in the industry for a long time. Their drive is to develop and continue to enhance overall ethanol production efficiencies. The molecular sieve technology was just a part of that effort. How would you describe this process? Itâ&#x20AC;&#x2122;s a process that converts 190-proof ethanol to 200-proof ethanol. 190-proof ethanol is produced through the distillation system. The molecular sieves remove the remaining water
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What challenges have ICM encountered during the development of the technology? The molecular sieve technology has been a common technology from when ICM was established.
through a re-gen process. Timing and pressures helps to maximize efficiency through the dehydration process. Can you think of any examples of installations that ICM has recently made? We have added sieve capacity to several plants recently to help them maximize their throughput. There are two opportunities. First, to make sure that they meet European specifications so they can export. Second, as plants push their ethanol production through the facility the sieve capacity needs to keep up with this rate.
The industry continues to be strong The Sieve process vaporises the 190-proof ethanol and sends it through the sieve at a pressure for a certain amount of time. Then the sieve is de-pressurised and the 200-proof ethanol removed while the water is maintained in the sieve beads. Next, the water is removed from the sieve beads
Have you noticed any new trends in the ethanol industry? I think there are two areas in relation to trends. First, the ethanol plant owners are aiming to achieve efficiencies to reduce the amount of energy it takes to produce a gallon of ethanol. So, in turn
ICM is focused on offering solutions to meet this goal. There is another focus of diversifying value streams from the ethanol process. An example of that is corn oil. ICM has developed a corn oil system that has been incorporated into most plants in the United States to provide the plant with an additional revenue stream. In addition to the fuel and the feed side, they have a corn oil product that they can sell. Additional value-added processes are currently being developed by ICM and implemented into the corn biorefineries. Does ICM have any expansion plans? ICM has built plants in Europe and South America. We are currently completing Brazilâ&#x20AC;&#x2122;s first standalone dry-mill corn ethanol plant. We are looking at other opportunities in Brazil and Argentina. The opportunities in South America are more greenfield opportunities and the opportunities in North America are implementing new technologies into facilities. We are not actively pursuing Europe at this time. The industry continues to be strong. It went through a downturn in 2008 when the North American supply abruptly caught up with the demand, so, everything slowed down. But, since then it has levelled out. Our business has been relatively steady since 2010. All of the ethanol industry is interested in ways that they can be more efficient and have additional revenue to stay on a competitive edge. l
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The role of coadsorption in ethanol dehydration processes
Removing water from ethanol
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n ethanol production, one of the last, essential steps is to dehydrate the ethanol to over a 99% purity. Achieving such high levels of ethyl-alcohol purity cannot be accomplished by distillation alone because a natural phenomenon forms, called an azeotrope, which prevents water from further being boiled out of the mixture. This azeotrope occurs at about a 94% ethanol purity, and ethanol this low in purity is not generally considered suitable for use as fuel or as a fuel additive. To further dehydrate the ethanol, a type 3A molecular sieve is applied to the dehydration process. This molecular sieve can selectively remove water while allowing ethanol to pass through the dehydration beds and along to the product stream. Molecular sieve manufacturing All A-type molecular sieves originate as 4A zeolite
crystals. These 4A zeolite crystals are treated to an ion exchange, where larger potassium ions exchange for smaller sodium ions within the crystal matrix, thus shrinking the pore opening of the 4A molecular sieve (measuring approximately 4 Ångstroms in diameter) and creating a 3A molecular sieve, with a pore size measuring about 3 Ångstroms in diameter. However, a perfect ion exchange is infeasible so a certain amount of molecular sieve crystals will retain a 4A structure, which leads to ethanol coadsorption. The significance of pore size When comparing the actual performance of various type 3A molecular sieves, it is important to consider the coadsorption of ethanol. The coadsorption of ethanol refers to the amount of ethanol that is adsorbed by the molecular sieve along with the water that is intended to be
adsorbed. The pore opening of 3A molecular sieve crystals is too small to adsorb ethanol molecules as these molecules measure approximately 3.6 Ångstroms in diameter, while still allowing the adsorption of water molecules, which measure about 2.8 Ångstroms in diameter. Given the diameter of both water and ethanol molecules, a 4A crystal, measuring 4 Ångstroms in diameter can adsorb both water and ethanol. The degree of coadsorption of ethanol varies by manufacturer based on the efficiency of the ion exchange rate or theoretical quality of the 3A molecular sieve. Some manufacturers actively grow crystals in methods that reduce 4A crystals to a minimum presence, and thus decrease coadsorption of ethanol during the dehydration process. While ion exchange is imperative to coadsorption, the crystallinity, clay binder choice, macroporosity, and other factors play a role in 3A coadsorption properties. Testing methods to determine coadsorption properties Molecular sieves can be tested and compared both in laboratory settings or in real life scenarios to determine the impact that coadsorption plays on production efficiency. In a lab, the purity of a 3A molecular sieve can be determined by comparing the heat of adsorption of a sample exposed to pure water to a sample that is exposed to pure ethanol. The heat of adsorption is measured by a thermometer placed in
a beaker of molecular sieve. Water is added to the beaker and the change in temperature is measured. Similarly, a thermometer is placed in a beaker of molecular sieve and ethanol that is 199 proof or 99.5% purity or greater is poured into the beaker and the change in temperature is measured. The changes in temperature are compared and indicate the amount of 4A molecular sieve that is present in the molecular sieve sample. A sample with lower compositions of 4A crystals will have a lower change in temperature when exposed to nearly pure ethanol because molecular sieve adsorption is an exothermic reaction that releases heat when adsorbing. Thus, a small heat increase indicates that there is a low composition of 4A crystals in the molecular sieve beads. In real life scenarios, operation data can be used by comparing feed rate with product feed rate. Feed rate into the system is used to determine the amount of water and ethanol coming into the dehydration beds while product feed rate can measure the amount of ethanol coming out of the system. The remaining ethanol should appear in the regeneration feed to the condenser, and can indicate the amount of ethanol being recycled through the system. The impact of coadsorption of ethanol production Ethanol that is adsorbed by the sieve during the
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dehydration cycle leads to more ethanol in the regeneration cycle that is recycled through the system. This occurrence leads to the reprocessing of the same ethanol repeatedly, instead of sending the ethanol out as dry product. In practice, the purpose of a molecular sieve is to remove water from ethanol, and not to recycle ethanol throughout the system. The occurrence of ethanol recycling costs operations money through loss of product, repeated expense of energy, and reduced working capacity of dehydration units to remove water during each cycle. Although the working capacity and efficiency may only equate to a few gallons per minute, these savings extrapolated to the course of 350 operation days per year can quickly add up to over one million pounds (GBP) of savings or increased profit. It is not recommended to choose sieve suppliers based on price alone, other factors such as ethanol coadsorption, crush strength, and adsorption capacity should be considered. Background The purpose of these tests is to examine the coadsorption properties of molecular sieves and determine the role that greater selectivity of water over ethanol yields in overall performance efficiency. Hengye material has been tested in the lab, alongside competitive material, to determine the ethanol coadsorption properties of the 3A molecular sieve offered
by various manufacturers. Lab results, available in the study Hengye Lab Testing of 3A Ethanol Sieves, have indicated that material produced by Hengye has a low coadsorption rate of ethanol, which could mean the 3A molecular sieve produced by Hengye is purer and thus offers higher efficiency and production values in ethanol dehydration units, compared to some competitive material. Field testing example (All values are for example purpose only) Data collection a. Inlet Flow Rate – DSC Data, 15 minute averages b. Outlet Flow Rate – DSC Data, 15 minute averages c. Regeneration Flow Rate – Mass Balance Calculation d. Inlet Flow Proof – Karl Fisher (KF) from 190 tank e. Outlet Flow Proof – Karl Fisher from Product Line f. Regeneration Stream Proof – From Regen Condenser, double valve assembly, Karl Fisher. Methodology Two independent trains consisting of three bottle
systems. One train, Side A, loaded exclusively with Manufacturer 1 and another train, Side B, loaded exclusively with 3A adsorbent material from Manufacturer 2. Each train operates in isolation while the other train is on standby. Data is collected every fifteen minutes from DSC. Each side reaches a steady state with approximately identical inlet flows and compositions, vaporiser conditions, pressures, and temperatures. Data is collected in fifteen minutes sampling segments from each train. Data from sampling segments is then averaged for accuracy and the reduction of uncontrollable operating fluctuations. Regen streams When reviewing Side A, the material is shown to provide a Regen stream of 25.4 Proof, which means for every 100 gallons of liquid recycled to the rectifier, 12.7 gallons are ethanol with the remaining 87.3 gallons being water. When reviewing Side B, the material is shown to provide a Regen stream of 30.9 proof, which means for every 100 gallons of liquid recycled to the rectifier, 15.45 gallons are
Data
Side A
Side B
Difference in Production
Efficiency (%) 84.32% 83.75% 0.57% Side A produces an ethanol product that is 0.57% more pure (drier), compared to Side B Regen (GPM) 25.40 30.9 5.50% Side A recycles 5.5% less ethanol to the rectifier, compared to competitor material
ethanol with the remaining 84.55 gallons being water. Efficiency The train running Manufacturer 1 material offered production efficiency 0.57% higher than the train using competitive material. This means the final ethanol going to the product tank has a higher composition of ethanol with less water. Conclusions Ethanol coadsorption After operating the two trains independently, it was determined that Side A offers a lower ethanol coadsorption when compared to the Regen Proof taken from the condenser. Side A had a Regen Proof of 25.4; while Side B offered a Regen Proof of 30.90. The lower ethanol coadsorption means that more water is being adsorbed per cycle, offering a higher yield of final product per cycle and reducing the amount of ethanol recycled through the dehydration process. The results of this example could be compared to laboratory testing of the 3A molecular sieve, where the composition of the sieve beads contains more 3A crystals and less 4A crystals compared to other manufacturers, offering a higher production yield in ethanol dehydration units. The difference in these Regen Proof values is extrapolated below to show the production significance over the course of one year. l For more information: This article was written by Mark Binns, technical business director at Hengye, and Kolten Burkes, marketing officer at Hengye. Visit: www.hengyeinc.com
Ethanol Recycles to Rectifier
Independent
Feed Rate 187 Proof 187 Proof (water) (ethanol)
Theoretical
Side B
Side B
80% Efficiency Out, 199 Proof Ethanol
30 Proof Regen
25 Proof Regen
Calculated
Difference in Recycled Ethanol (Hengye vs Competitor)
GPM
GPM
GPM
GPM
GPM
GPM
GPM
350
45.5
304.5
243.6
15.96
13.3
2.66
biofuels international
Difference in Recycled Ethanol (350 working days) GPY 1,340,640
september/october 2017 39
biofuels transportation
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Has the 2020 renewable energy transport target slipped off the UK government’s agenda?
Reducing emissions from transport
Richard Royal, head of Government Affairs at Vivergo Fuels
I
n recent months there has been questioning of the government’s seemingly wavering commitment to environmental issues, highlighted in the delay of publishing its Air Quality Report, and then on its sudden announcement to ban the sale of fossil fuel cars by 2040. Yet many have overlooked another severely delayed report which also has a major impact on the UK’s environmental responsibilities – the Renewable Transport Fuels Obligation (RTFO). This policy document will detail how the UK aims to reach its legally binding target of 10% of transport fuels coming from renewable sources by 2020 (as well as the trajectory for the UK’s Climate Change Act). Just a few years from the deadline, according to the Committee on Climate Change, the UK currently sits at about 2.3% rather than the 8% needed to tackle the major challenges of greenhouse gas emissions and transport pollution. An immediate, quick, easy and cost-effective method of
getting closer to this target is through the introduction of E10 – a blend of 10% bioethanol with regular unleaded petrol. Bioethanol is a low-carbon renewable fuel made from crops, which already constitutes up to 5% of the UK’s unleaded petrol blend. It offers both carbon savings and air quality benefits and is widely used throughout Europe, North America and Australasia, yet in Britain we’re still waiting for this most obvious of steps. ‘Taking 700,000 cars off the road’ Bioethanol typically offers around 60% greenhouse gas savings compared to standard petrol and its source – in Vivergo Fuels’ case, animal
feed-grade wheat from local farms – can be constantly regrown whilst also absorbing carbon dioxide emitted by transport. Doubling the bioethanol blending level by displacing a further 5% of oil in the company’s tanks would be the carbon emissions savings equivalent to taking 700,000 cars off the road – comparable to a traffic jam from Manchester to Moscow. Furthermore, bioethanol can help to improve air quality by lowering some harmful pollutants which can cause or exacerbate conditions like heart disease, lung cancer and asthma. It is not carcinogenic, unlike several chemicals contained within petrol, so bioethanol blended fuel helps to reduce the carcinogens produced by transport –
Science and sales support the case for E10 and a Fair Fuel UK survey suggests that public opinion also supports an increased blend of bioethanol
for example benzene and butadiene emissions decrease with higher levels of bioethanol blending. Because it is an oxygenate, it burns fuel better and increases the efficiency of the engine, thereby lowering the hydrocarbons that are released. Indeed, a report recently published by the European Commission found that increased ethanol blends in petrol result in a 5-20% reduction in emissions of nitrogen oxides, hydrocarbons, carbon monoxide and particulate matter. In fact, E10 would make a feasible immediate contribution, particularly in urban areas, as part of an effort to tackle air pollution from traffic. Bioethanol is mixed only with petrol, which produces around 300% less ‘Nox’ pollutants (nitric oxide and nitrogen dioxide) than its viscous diesel counterpart. This is a crucial point – in the recent battle to shift everyone out of diesel vehicles towards electric options, many have overlooked the fact that petrol sales are rising
40 september/october 2017 biofuels international
www.dsengineers.com
Vivergo’s bioethanol plant in Hull, UK
– therefore decarbonising petrol is an increasingly important requirement. Petrol hybrid To put into context, hybrid vehicles – essentially a petrolengine with an additional electric motor for shorter low-speed journeys – are increasingly being favoured over full electric vehicles and are often seen as a stepping stone towards them. Sales figures show a migration from diesel towards petrol vehicles and a recent survey by consumer motoring group Fair Fuel UK showed that of those drivers planning to change from a diesel car, 9.4% planned to purchase a petrol or petrol hybrid compared to 0.7% who would choose an electric car. Notably, of those who had converted to driving an electric car, over 5% intended to revert to a petrol hybrid. These results illustrate that demand for petrol is likely to increase in the coming decades, long before 2040, and that it would be remiss of government not to lower emissions further by displacing oil in petrol with bioethanol. Science and sales support the case for E10, and another recent Fair Fuel UK survey suggests that public opinion also supports an increased blend of bioethanol, with over 82% of the 25,000 respondents advocating E10 as a method of lowering
transport emissions. The fact that this move requires no consumer behavioural change adds to its long list of benefits, particularly when compared to the huge infrastructure demands of a shift to electric vehicles. The Department for Transport has unfortunately been going around in circles over this decision for years, whilst other countries saw the clear benefits of bioethanol and introduced higher blends as early as 2011. Meanwhile, the consultation around the RTFO was repeatedly delayed by indecision and the political merry-go-round, with the final proposals – expected to inexplicably contain the lowest ‘crop cap’ in Europe – scheduled for release before 15th April, remaining unpublished. In the meantime, the renewables industry and the agricultural sector that relies on it, remain in limbo. Hundreds of millions of pounds of investment, thousands of jobs, hundreds of farms, and of course the entire raison d’etre of improving the environment, all hang in the balance. With Brexit swiftly approaching, now is the time for the government to back this key domestic industry. l For more information: This article was written by Richard Royal, head of Government Affairs at Vivergo Fuels. Visit: www.vivergofuels.com
Sugar Plant • Sugar Refinery Bio-based Industry & Chemistry Agro-Chemistry Bioethanol Plant Cogeneration Plant From Basic Engineering to Full Turnkey Project Single Point Responsibility through EPC or EPCM+® with guaranteed: ✔ Process Performances ✔ Time Schedule ✔ Budget
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biofuels sustainability As palm oil plummets in popularity, Simo Honkanen from Neste argues we should be opening doors on different feedstocks, not closing them
Opening instead of closing doors By Daryl Worthington
P
alm oil has caused a great deal of controversy in recent months. Used primarily in food production but also in cosmetics and as fuel, critics have questioned the cheap vegetable oil’s sustainability. Deforestation, peatland damage, the destruction of natural habitats, and high greenhouse gas emissions are just some of the problems linked to it. In April, MEPs in the European Parliament approved a resolution calling for the European Commission to phase out the use of vegetable oil for biofuels. The wideranging recommendation calls for an end to incentives for rapeseed, palm oil and soy based biofuels, and suggests a new, single European certification scheme should be introduced for palm oil entering the EU market. Just days after the EU resolution passed, Neste, a Finnish company specialising in high quality, low-emission fuels, announced a new portal on its website showing where the crude palm oil the company uses comes from. The comprehensive new dashboard provides information on Neste’s 100% certified and fully traceable crude palm oil sources, the specific certification systems it uses, as well as links to the actual third party certificates and audit reports. The level of detail is such that users can access a map which not
Simo Honkanen, SVP for Sustainability and Public Affairs at Neste Corp
only shows the geographical location of Neste’s suppliers, but pictures of the mills themselves. More than just a list, the site details Neste’s corporate level usage of crude palm oil, and describes activities and collaborative projects aimed at further developing the sustainability of the company’s supply chain and supporting development within the palm oil industry. Increased media attention and the European Parliament’s resolution mean Neste’s new initiative comes at a time when lots of questions are being asked about palm oil. Simo Honkanen, senior vice president of Sustainability and Public Affairs at Neste, tells Biofuels International: “We believe that transparency is part of the solution.” “This is the first time ever that a company is disclosing so much detail on the supply chain of palm oil. It’s the result of thorough and good cooperation
with our suppliers, who we’ve worked with for years, because we’re disclosing information which was not available before. The suppliers are happy to give the information, and it’s a very positive thing. It’s a sign of trust with Neste, but also that they’re ready to participate in the discussion around palm oil. “The response has been very, very positive on the transparency that we have.” That discussion about palm oil is increasingly vital. The European Parliament’s resolution calling for vegetable oils to be phased out as quickly as possible means its stance is very clear, but this resolution has caused a strong reaction from both the biofuels industry and its suppliers. As Biofuels International reported in April, Indonesia, one of the biggest exporters of palm oil, labelled the EU resolution ‘discriminative’ and ‘protectionist’. Most significantly, the country’s
Ministry of Foreign Affairs said in an eight point statement that the move was “counter-productive to increasing the quality of palm oil sustainability.” Honkanen also highlights the possible shortsightedness of the EU resolution: “I think the real risk is that palm oil which is not consumed in Europe anymore finds its way to some other countries or markets that don’t have sustainability criteria. There is a danger then that the positive contribution of the biofuels industry to the sustainability of palm oil production is weakened.” Another criticism made by Honkanen is that European legislation focuses disproportionately on the fuel industry. “The food and chemical industries are the major users of palm oil, but the sustainability legislation that is in place is only for the fuel industry. It’d be good if we had cooperation with other industries as well, because we’ve shown that it is possible to have fully traceable and certified palm oil, its production having a positive impact through good sustainability practices and good cooperation with suppliers.” Closing too many doors For Honkanen, it is critical that there are as many options open as possible. Certain that biofuels have a pivotal role to play helping the EU reach its emissions and climate
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change targets, he stresses the importance of having access to a variety of eligible feedstocks and suggests the European Parliament’s recommendation to cut palm oil use is a step in the wrong direction. “If you think about the greenhouse gas and climate challenges we have, we need different kinds of solutions for traffic emissions. Biofuels are one of the quickest and most cost-efficient ways to reduce greenhouse emissions from traffic. Our technical solution for instance, can be used in any engine without technical modifications. We can utilise existing logistical systems, it can be used in any blending ratio from 0 to 100, we can even produce fuels for different applications. We have an application for aviation, and several cities are using our product 100% in their local fleets – in buses and emergency services
We think there shall be and there has to be clear sustainability regulations, but companies also have a responsibility to make sure they have a sustainable supply chain in place vehicles such as fire engines. “Biofuels are a very fast and efficient way to reduce greenhouse gas emissions from traffic, which is probably the biggest challenge outside the ETS (Emissions Trading Scheme) sector. Traffic has to have different ways to reduce emissions, but within the existing car and engine fleet the fastest way is to use biofuels, high-quality biofuels which are sustainably produced
and technically proven. “We are putting a lot of effort into renewable feedstock research. Last year, roughly 80% of our feedstock intake for renewables was based on waste and residue types of feedstocks. This is a big change, as ten years ago, palm oil accounted for roughly 90%. “As we see it now, the main part of the feedstock intake will be from waste and residue, but we think at this point we should have as wide a spectrum of
different types of feedstocks as possible, because feedstocks are crucial in order to have a good availability of fuels. “We think there shall be and there has to be clear sustainability regulations, but companies also have a responsibility to make sure they have a sustainable supply chain in place. Although Honkanen sees a lot to be positive about in the EU resolution, he firmly believes that efforts should be focused on opening doors for biofuels, not closing them. “We think the resolution from the European Parliament aims to improve sustainability, but we don’t believe restricting different feedstocks is the right way forward. Instead, the focus should be on the sustainability of the supply chain.” l For more information: Simo Honkanen is SVP for Sustainability and Public Affairs at Neste Corp. Visit: www.neste.com/en
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biofuels plant automation
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Extended Kalman filter as a model-based soft sensor for fermenters in biofuels plants
More transparency for bio processes
I
n anaerobic fermentation plants, there is often a lack of reliable automated monitoring systems. Operators are faced with many influencing factors, but many of these values are only available as laboratory measurements and are seldom analysed. For controlling bio processes and the optimisation of quality related values, the German Biomass Research Centre used a soft sensor application from Siemens. To evaluate the current state of a process, measurements of physical, chemical, or biological values are necessary. In some cases the measuring of specific values is difficult or only possible using offline laboratory analysis. A few values might not be measureable at all due to high costs. Examples are the reaction heat of an exothermic process, the number of bacteria in bio reactors or the concentration of nutrient in a fermenter. Using a soft sensor is an obvious solution. Based on existing measurement values a soft sensor computes additional unmeasured values. In this article, an extended Kalman filter (EKF/LQE, see Figure 1) as model-based soft sensor is considered. An EKF uses a simulation of a rigorous dynamic model in parallel to the process, whereby the model contains the unknown values and the existing measurement. Step by step The algorithm of the EKF consists of two main steps.
Figure 1: Soft Sensor as Extended Kalman Filter (EKF)
First, a model is simulated starting from the current process state for one time step into the future. As measurements are available for the next time step, they can be compared to the values computed by the prediction. The predicted state is then corrected so that the error of the measurement is minimised using the stochastic average. This corrected state also contains an estimation for values which haven’t been measured, and can be used for displaying purposes or further computations. Due to a limited amount of computing power, memory capacity or suitable model structures, soft sensor applications are rarely used in control system for monitoring of industrial processes. Siemens has offered a soft sensor fully integrated into the distributed control system
(DCS) SIMATIC PCS 7 with Version 9.0 for the first time. The model for the soft sensor can be easily provided using
the Kalman Configurator. By separation of application specific knowledge (process model in a logic block “without memory” (FC) and generic knowledge (EKF algorithm in a function block “with memory” (FB)) the Know-How protection of customers’ intelligent property is easy, safe and the implementation effort significantly reduced (Figure 1). The values estimated by the soft sensor can be directly visualised in the DCS using the corresponding faceplate or can be connected to further computations (Figure 2). Another benefit of this implementation of the soft sensor is the potential for sporadic laboratory analysis. Examples where soft sensors can be used are anaerobic fermentation plants, which often lack reliable automated monitoring
Figure 2: Soft Sensor in SIMATIC PCS 7 embedded in Engineering(ES), Operation- (OS) and Automation-System (AS)
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systems. The anaerobic fermentation process depends on many influencing factors; many of them (such as detailed concentrations of volatile organic acids, VOA) are only available as laboratory measurements and are rarely analysed. Available methods for process evaluation or simulation are rarely used in these fermentation plants because of implementation barriers and a lack of a formula for the relationships between the variables (models). Siemens together with the DBFZ (German Biomass Research Centre / Deutsches Biomasseforschungszentrum) in Leipzig developed a simplified kinetic model of the established Anaerobic Digestion Model No.1 (ADM1). Full scale experiments were conducted at the research biogas plant of DBFZ in Leipzig (Figure 3) [1]. The semi-continuous fermentation of maize silage was carried in a 208 m³ (Vliq = 165 m³) continuously stirred tank at mesophilic temperature (40 ± 1°C). Detailed gas production rates as well as gas compositions were logged online. Moreover, standard process analytics (such as pH, total VOA, or ammonia nitrogen concentrations) were measured weekly to ensure stable and uninhibited process conditions. The results prove the successful application of the soft sensor for process monitoring of anaerobic fermentation plants using a simplified version of ADM1. The soft sensor can continuously estimate
Figure 3: Research biogas plant of DBFZ in Leipzig © Paul Trainer, DBFZ
The anaerobic fermentation process depends on many influencing factors
different state variables such as degradable nutrient concentrations as well as the unknown kinetic parameters. Thus, the observed concentrations of remaining
degradable nutrients in the digestate can be used for detailed efficiency evaluation. The adjusted model can be utilised to predict biogas production for demand-
Kalman filtering, also known as linear quadratic estimation (LQE), is an algorithm that uses a series of measurements observed over time, containing statistical noise and other inaccuracies, and produces estimates of unknown variables that tend to be more accurate than those based on a single measurement alone, by using Bayesian inference and estimating a joint probability distribution over the variables for each timeframe. The filter is named after Rudolf E. Kálmán, one of the primary developers of its theory. See https://en.wikipedia.org/wiki/Kalman_filter
biofuels international
oriented biogas utilisation and for application in modelbased control strategies. The successful application of the soft sensor for biogas production can also be transferred to the process monitoring of the fermentation process in bioethanol plants, e.g. for monitoring, control, and optimisation of quality related values. l
For more information: This story was written by Dr. Daniel Labisch, project manager, PD TI AT 2 and Voker Hirsch, technical manager, PD PA AE C&G 5 at Siemens, Karlsruhe. Visit: www.siemens.com Reference [1] Labisch, D.; Weinrich, S.; Pfeiffer, B.-M.; Grieb, H.: Application of Extended Kalman Filter as Soft Sensor for Anaerobic Digestion Plants. Talk at 3rd International Conference on Monitoring and Process Control of Anaerobic Digestion Plants, 29.30.03.2017, Leipzig, (2017)
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biofuels ethanol plants Options, values, and benefits to adding CO2 recovery to existing and planned ethanol plants
Making hay with the opportunities offered by CO2
T
he long term sustainability of firstgeneration ethanol facilities, through advanced biofuels plants, is realised by making money from all of the by-products. Of course, CO2 is one of the leading components of this by-product list. There are many variables associated with the feasibility of adding a carbon dioxide plant to an ethanol facility. There are nearly 40 CO2 plants in North America which source from ethanol. These CO2 plants primarily provide the merchant market; that being the food, beverage and industrial sectors. There are a few exceptions, such as enhanced oil recovery (EOR) destinations for CO2, however, these are specific to the region and the value of oil. The CO2 industry is highly resilient, and has always been tightly tied to the food and beverage industries, primarily for food processing of principally meat products, from poultry to fish, beef, pork and frozen specialties. There are various possible schemes for the supply of carbon dioxide to a variety of markets: directly or indirectly, as a liquid or a dry ice product; from local markets to (rail served)
regional markets. Specific to what makes a successful CO2 project is the correct selection of the elements which best serve the best suited markets, and the mode by which they are served. Options for revenue It is essential to fully understand the options for obtaining a revenue stream from CO2, which can be best achieved via professional CO2 evaluations and feasibility
liquid, refined product or dry ice is produced and sold via distributors, resellers or direct to the markets. As some operators have found, the approaches vary significantly in terms of revenue streams, and the value of the product sold to the markets which are chosen. Without fully evaluating and understanding the options as markets in full, furthering a CO2 project with the best suited and premium revenue
There are nearly 40 CO2 plants in North America which source from ethanol assessment. Toward this end, the questions include the value of the merchant and captive markets locally, regionally, and perhaps for given destinations via rail, for example. Then, the understanding as to whether to wholesale the product via a refiner or reseller; and whether this is a raw gas sold ‘across the fence’, or if
stream is being done in the dark, and a great deal of opportunity can be left on the table, in disfavour of the ethanol principle. Cost/benefit analysis The results can vary widely from a benefit perspective, after major expenses (costs) are paid.
Below are examples of three types of project, from other possible CO2 project scenarios. 1. Selling raw gas over the fence. Depending upon the arrangement, this value can range from $3 to $25/ton (€2.68 to €22.35), as history has shown, depending upon markets served. The resellers who buy this product will require a parcel of land; and depending upon the distance to the CO2 plant, perhaps a blower system and certainly a (multi – skidded) CO2 plant will be required. Then, for example, if there are 100,000 tons (91,000 tonnes) sold annually, this benefit could rake in a minimum of $300,000 (€268,000) each year, while the other end of this spectrum represents a small fortune, say $2.5 million (€2.2 million). The tenure of these wholesale arrangements is usually from 10 to 20 years. 2. Selling refined liquid, FOB spigot. Depending upon which plant contractor is engaged, prices vary somewhat with design, options, experience, and flexibility. Say the liquid,
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FOB spigot, will bring a price between $25 and $45/ton (€22.39 and €40.30); this represents an income stream, based on 100,000 tons, between $2.5 million (€2.2 million) and $4.5 million (€4 million), less expenses. Then, for this approximate 300 TPD plant, assuming the same tonnage, costs could be estimated near $18.50 (€16.57) per ton, with electric power and amortization as the major expenses, followed by overhead, cooling water, labour and maintenance in terms of cost per ton. Based on this, approximate benefit as gross margin could be anywhere from close to $650,000 to $2,650,000 (€582,000 to €2.37 million), or even more on an annual schedule.
There are many variables associated with the feasibility of adding a carbon dioxide plant to an ethanol facility
3. A direct to market approach, assuming an average selling price of $100/ton (€89.58). Given this average model on a price/ton basis; this represents a gross income of near $10 million (€8.96 million) annually. If the above costs for this project were to be considered, along with an estimated cost of delivery included, this could represent a gross
cost close to $4.85 million (€4.35 million) annually; thus a gross margin, or benefit annually of near $5.15 million (€4.61 million). The above scenarios show what can happen with benefits as income streams vs. costs, which can occur when adding CO2 recovery and sales to ethanol or advanced biofuels projects. Markets vary, as do possible scenarios for making money from a CO2
project. Further, these projects are considered essentially indefinite, as long as the CO2 stream continues to be received from the fermentation process. The proper evaluation of markets, costs and requirements is key to ‘making hay’ from an otherwise vented CO2 product with no value; which in the minds of many, is the predominant greenhouse gas. This CO2 could otherwise be put to good use in industry, and even function as a ‘green chemical’ in a wide variety of applications. Let’s make hay, and add CO2 to the ethanol projects throughout North America, and globally. l
For more information: This article was written by Sam A. Rushing, president of Advanced Cryogenics. Visit: www.carbondioxide consultants.com
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