advanced biofuels development: usa situa7on and iea ... · marine biofuels market opportunity 21...

NRELisana*onallaboratoryoftheU.S.DepartmentofEnergy,OfficeofEnergyEfficiencyandRenewableEnergy,operatedbytheAllianceforSustainableEnergy,LLC.

AdvancedBiofuelsDevelopment:USASitua7onandIEABioenergy

Task39Progress

ABLCGLOBAL2018

JamesD.(Jim)McMillan,Ph.D.Na7onalBioenergyCenter

SanFrancisco,California,USA

7November,2018

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•  Introduction to IEA Bioenergy Task 39 •  Status of Biofuels Production

o  International o  United States

•  Emerging Opportunities / New Initiatives o  To increase efficiency, maximize impacts

•  Conclusions and Outlook

Outline

IEABioenergyTechnologyCollabora7onProgramme(TCP)Mission:Toincreaseknowledgeandunderstandingofbioenergysystemsinordertofacilitatethedeploymentof:§ environmentallysound

§ sociallyacceptableand§ cost-compe77vebioenergysystems

KeyRole:

Independentcollabora*vebodyfocusedondeliveringclearandverifiedinforma*ononbioenergy

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TasksTask32-BiomassCombus7onandCo-firing

Task33-Gasifica7onofBiomassandWaste

Task34-DirectThermochemicalLiquefac7on

Task36-Integra*ngEnergyRecoveryintoSolidWasteManagementSystems

Task37-EnergyfromBiogas

Task38-ClimateChangeEffectsofBiomassandBioenergySystems

Task39-CommercialisingConven*onalandAdvancedLiquidBiofuels

Task40-SustainableBiomassMarketsandInterna*onalBioenergyTradetoSupporttheBiobasedEconomy

Task42-BiorefininginaFutureBioEconomy

Task43-BiomassFeedstocksforEnergyMarkets4

Membership-24Contrac7ngPar7esin2018

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EUROPE:§  Austria§  Belgium§  Croa*a§  Denmark§  EuropeanCommission§  Estonia§  Finland§  France§  Germany§  Ireland§  Italy§  Netherlands§  Norway§  Sweden§  Switzerland§  UnitedKingdom

ASIA/OCEANIA/AFRICA

§  Australia§  Japan§  Korea§  NewZealand§  SouthAfrica

AMERICAS:§  Brazil§  Canada§  UnitedStates

2018 Budget: US$1.8 Million Tasks: 10 main tasks + ~6

joint/intertask projects Participants: ≥ 200 persons

In discussions: •  China •  India •  Mexico

Membership-24Contrac7ngPar7esin2018

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EUROPE:§  Austria§  Belgium§  Croa*a§  Denmark§  EuropeanCommission§  Estonia§  Finland§  France§  Germany§  Ireland§  Italy§  Netherlands§  Norway§  Sweden§  Switzerland§  UnitedKingdom

ASIA/OCEANIA/AFRICA

§  Australia§  Japan§  Korea§  NewZealand§  SouthAfrica

AMERICAS:§  Brazil§  Canada§  UnitedStates

2018 Budget: US$1.8 Million Tasks: 10 main tasks + ~6

joint/intertask projects Participants: ≥ 200 persons

In discussions: •  China •  India •  Mexico

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Catalyze Cooperative Research

State of Technology &

Trends Analysis

Policy, Market and Deployment

Analysis

Biofuel Deployment

and Information Sharing

IEA Bioenergy Task 39 Overview − 2016-2018 §  Objective: “To facilitate commercialization of conventional and

advanced liquid biofuels”

§  Collaboration between 14 countries §  Analyze policy, markets and sustainable biofuel implementation §  Focus spanning Technical and Policy issues §  Catalyze cooperative research and development §  Ensure information dissemination & outreach with stakeholders

POLICY, MARKETS, SUSTAINABILITY & IMPLEMENTATION

TECHNOLOGY AND COMMERCIALIZATION

Commercializing Conventional and Advanced Liquid Biofuels from Biomass

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IEA Bioenergy Task 39 Liquid biofuels focus 14 member countries 2016-2018 www.Task39.org

EuropeanCommission-LuisaMarelli,AdrianO‘Connell

Denmark-ClausFelby,MichaelPersson,AndersKristoffersen

Germany-FranziskaMueller-Langer,NicolausDahmen

TheNetherlands-TimoGerlagh,JohanvanDoesum

SouthKorea - JinSukLee,KyuYoungKang,SeonghunPark

Canada-JackSaddlerUnitedStates-JimMcMillan

Australia-SteveRogers

Austria - DinaBacovsky

Japan-SatoshiAramaki,ShiroSaka

SouthAfrica-EmilevanZyl

Sweden – TomasEkbom,LeifJonsson

NewZealand - IanSuckling

Brazil - AntonioBonomi

BiofuelsProduc7onStatus

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Global Biofuels Production

Source:IEA2017TechnologyRoadmap-DeliveringSustainableBioenergy.Figure3.h]p://www.iea.org/publica*ons/freepublica*ons/publica*on/Technology_Roadmap_Delivering_Sustainable_Bioenergy.pdf

2006-2016

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GlobalBiofuelsProduc7onMilliontonnesoilequalivent(Mtoe),2007-2017

Source:BPSta*s*calReviewofWorldEnergy,June2018.h]ps://www.bp.com/content/dam/bp/en/corporate/pdf/energy-economics/sta*s*cal-review/bp-stats-review-2018-renewable-energy.pdf

èAmerica’sdominateworldproduc3on,feedstockconstrainsbiodiesel

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UnitedStatesBiofuelsProduc7onUSEthanolProduc7on2000-201715Bgallons(57Bliters)

Source:RFA2017:h]p://www.ethanolrfa.org/resources/biorefinery-loca*ons/

Source:RFA2018:h]p://www.ethanolrfa.org/resources/biorefinery-loca*ons/

USEthanolPlantLoca7onsUSDieselBiofuelsProduc7on2011-2017

Source:EPA2017,Fig.V.B.2-1h]ps://www.gpo.gov/fdsys/pkg/FR-2017-07-21/pdf/2017-14632.pdf

2.5Bgallons(9.5Bliters)

• USremainsworld’s#1produceranduserofbiofuels,mostlystarch-basedethanolandlipid/fat-basedbiodiesels–  In2017,produced~60BL(15.8Bgal)

ethanol,primarilyfromdomes*ccorngrain(~210facili*es)

–  In2017,produced∼9.5BL(∼2.5Bgal)biodieselfuels(FAME+HVO/HEFA)fromdomes*candimportedoleaginousfeedstocks(~100facili*es)

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• Majorpolicydrivers:TheUSfederalRenewableFuelStandard(RFS2)andCalifornia’sLowCarbonFuelStandard(LCFS)incen*vizeproduc*onoflowercarbonintensitybiofuels

•  Challenges:–  Petroleumpricestoolowsincemid-2014formostadvancedbiofuelstobeeconomicallycompe**ve;interestpickingupagainaspricesincrease

–  Highcapitalcostsandlackofestablishedfeedstocksupplychains

–  On-goingpolicyuncertaintyhinderingnewlargeinvestments

•  Trends:–  Manycompaniesredirec*ngRD&Dstrategytowardsmoreprofitablelowervolume,highermarginchemicals

–  GrowingR&Donwastesasfeedstocksandnewcoproductsthatcanreducenetadvancedbiofuelsproduc*oncost(inmul*-productbiorefinerycontext)

USProduc7onofAdvancedBiofuels

0

50

100

150

200

250

0.0

2.5

5.0

7.5

10.0

12.5

2011

2012

2013

2014

2015

2016

2017

2018

2019

Cellu

losic

CNG

(Mill

ion

Gal)

Cellu

losic

Eth

anol

(Mill

ion

Gal)

US Advanced Biofuels Production - Cellulosic Feedstocks

D3 Cellulosic EthanolD3 Cellulosic CNG

0

100

200

300

400

500

0

5

10

15

20

25

2011

2012

2013

2014

2015

2016

2017

2018

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Rene

wab

le D

iese

l (M

illio

n Ga

l)

Naph

tha

(Mill

ion

Gal)

US Advanced Biofuels Production - Oleaginous Feedstocks

D5 NaphthaD4 Renewable DieselD6 Renewable Diesel

projected

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GlobalBioenergyConsump7onin2015

Source:IEA2017TechnologyRoadmap-DeliveringSustainableBioenergy.Figure2.h]p://www.iea.org/publica*ons/freepublica*ons/publica*on/Technology_Roadmap_Delivering_Sustainable_Bioenergy.pdf

Consump*onofbiomassandwasteresourcesbyenduse(Exajoules)

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MustDrama7callyIncreaseProduc7on!

Source:IEA2017TechnologyRoadmap-DeliveringSustainableBioenergy.Figure7.h]p://www.iea.org/publica*ons/freepublica*ons/publica*on/Technology_Roadmap_Delivering_Sustainable_Bioenergy.pdf

Bioenergyusein2015andinIEA’s2060“2DegreeScenario”(2DS)

èAchieving20602DSwillrequiremajorshiBsfromtradi3onaltomodernbioenergytechnologiesaswellaslargecapacityexpansionacrossallsectors,especiallybiofuels

EmergingOpportuni7es&NewIni7a7ves

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MaximizingImpactAcrossProduc7onandUse

•  be]erfuels.be]ervehicles.sooner.

Crosscuhngini7a7vetacklingfuelandengineinnova7ontoco-op7mizeperformance,maximizetransportefficiency.ResultstoinformfutureTCPstudiesofAdv.FuelsinAdv.Engines.

AdvancingR&Dto:• Bringaffordable,scalableadvancedbiofuelsandadvancedenginesolu*onstomarketmorequickly

•  Improvefueleconomy15%–20%beyondtargetsofBAUR&Defforts

• Reducepetroleumuse,achievemassivecostsavingsannuallyviaimprovedfueleconomy

• Drama7callydecreasetransportsectorpollutantsandGHGemissions

Example:USDOE’sCo-Op7miza7onofFuelsandEnginesIni7a7ve“Co-op7ma”

Drawsoncollabora3veexper3seoftwoDOEresearchoffices,ninena3onallaboratories,andnumerousindustryand

academicpartners.

hnp://energy.gov/eere/bioenergy/co-op7miza7on-fuels-enginesEarlyfinding:A]rac*vecomboishigherethanol(octane)blendsinhighcompressionengines.

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LeverageExis7ngRefiningInfrastructure

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Example:Ensyn’sPyrolysisandPetroleumRefiningCoprocessingTechnology

h]ps://www.energy.gov/sites/prod/files/2016/10/f33/Graham_0.pdf

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UsingLowerCostCircularEconomyFeedstocksExample:Enerkem’sMSWtoAlcoholsGasifica7on&CatalysisTechnology

CourtesyofDr.HelenaChum(NREL)

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CellulosicEthanolProduc7onfromCornFiber• Mul*pleroutesbeingcommercializedtoconvertsomeormostofthecornkernelfiberpresentincornethanoldrymillfacili*estocellulosicethanol(CE)− Lowercapitalinvestmentroutetocellulosicethanolalbeitvolumelimited

•  USEPAD3RINdatashows2016CEproduc*onaveraged~1millionl/month,approx.doublingto2ML/monthin2017;con*nuingtoincreasein2018.

Source:K.Cagle(Novozmes).Bioeconomy2017conference,session1E:DrawingaRoadmaptoCellulosicBiofuelDeployment,July11,2017.

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MarineBiofuelsMarketOpportunity

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− SWOTanalysisformarinebiofuels

KeyFindings:•  Largemarket:90%int’ltradeusesshipping

Pros•  Rela*velyfewmajormarineportstosupply• Newmul*-fuelenginescanalsousealcoholbiofuels(e.g.,MeOH,EtOH)

Cons• Developmentremainschallengingbecausetes*ngrequires1)verylargevolumes;and2)effec*vecoordina*onamongfuelsproducers,enginebuildersandshipowners

• Marinebiofuelsiden7fiedasalarge,nearer-termopportunity− Mustreducesulfuremissions;mostbiofuelshavelowsulfurlevels− Manyshipenginescanuselowerspecifica*onfuels

•  Task39report(2017)andwebinar(2018)“BiofuelsfortheMarineShippingSector”

Conclusions and Outlook

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3. Manytechnologicallyadvancedroutesarewellproven,thougheconomicschallengedbyhighcapitalcosts;largeinvestmentsareriskygivenon-goinghighuncertaintyaboutfuturepolicy

4.  Strategiestospeeddeploymentbeingpursued− Uselesscostly“circulareconomy”feedstocks(e.g.,gaseouswastes,cornfiber,MSW,etc.)

− Co-locateadvancedproduc*onwithexis*ngfacili*es(oilrefineriesorbiorefineries)

ConclusionsandOutlook1. Biofuelsremainessen*altodecarbonizeheavydutytransport2. Biofuelsproduc*onandusecon*nuetoincrease,bothgloballyandwithin

theUSA,albeitwellbelowtherateneededtoreachfuturedecarboniza*ontargets(e.g.,IEA’s2DS)

5. OutlookmixedforUStoremainworld’sleadproducer/user− Pro:Recentfederalini*a*vefornewlegisla*ontoapproveE15useyear-round− Con:Needssuppor*velong-termpolicyandthisremainselusive

7. Effec*veandstablelong-termpolicyiskeytorealizingfasterprogress

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•  IEABioenergyandespeciallyIEABioenergyTask39www.ieabioenergy.com&task39.ieabioenergy.com

•  Interna7onalEnergyAgency(IEA)www.iea.org

•  Interna7onalRenewableEnergyAgency(IRENA)www.irena.org

•  USEnergyInforma7onAdministra7on(EIA)www.eia.gov

•  USDOE’sBioenergyTechnologiesOffice(BETO)www1.eere.energy.gov/bioenergy/

•  USDOE-USDABiomassR&DIni7a7vewww.biomassboard.gov

•  Alterna7veFuelsDataCenterwww.afdc.doe.gov

•  Na7onalRenewableEnergyLaboratorywww.nrel.gov

More Information

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• USDOEEERE’sBioEnergyTechnologiesOffice(BETO)

•  IEABioenergyTasks38andDr.HelenaChum,SeniorResearchFellowEmeritus,NREL’sBESTDirectorate

•  IEABioenergyTask39

• NREL’sNa*onalBioenergyCenter,BiosciencesCenterandBioEnergyScienceandTechnology(BEST)Directorate

Acknowledgments

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