Manitoba and the Emerging Bioeconomy

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Manitoba and
the Emerging
Bioeconomy

Big global drivers for 21 st century change
Population growth
land & water availability
energy demand
Climate change
reduce emissions
reduced water availability
land use displacement
Non-renewable resource (oil, gas, coal, minerals) availability
global supply & demand
geo-political volatility
implications for energy and materials supply
These drivers are all interwoven, adding complexity to
national resolution around
Security of crude oil supply for transport fuel and industrial
feedstocks
Kyoto obligations
Sustainable economic prosperity
Balance of trade
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Source: C. Begley

Biomass as a subset of available resources
Coal Oil Gas Minerals
Human
Resources
Non-renewable
Resources
ECONOMY
Renewable
Resources
Infrastructure
Resources
Bioeconomy
is an emerging
term for the
sustainable
production and
conversion of
biomass to a
range of food,
health, fibre,
industrial
products and
energy
Solar
Wind
Water
Biomass
Geothermal
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Bioeconomy as a platform to a sustainable future….
Low GHG, sustainable processes through
agribusiness & rural re-invigoration to
create secure food, industrial products and low emission energy
production and
value added manufacturing driven by
eco-innovation
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Biobased products
The Bio-economy (Industrial) Framework
Pharmaceuticals
Cosmaceuticals
Neutraceuticals
Bio actives
Bio materials
Bio chemicals
High value
manufacturin
g
BIO-ECONOMY
I
n
c
r
e
a
s
i
n
g
Bio-fuels
Transport
fuels
Low emission
Secure fuel
supply
H 2
Butanol
Ethanol
Biodiesel
Functional
Organic
GM
Food
Feed
v
a
l
u
e
Biorefineries
Fuel feed stocks
Stationary
fuels
Syngas
CH 4
Bio-crude
Coke
lignin
Biogenous raw materials
bagasse
Sustainability
Sustainable
rural
Industry and
agriculture
Modified from: Biorefineries – Industrial Processes and Products Status Quo and Future Directions, 2 Volumes, Brigit Kamm
PAGE (Editor), 5 Patrick R. Gruber (Editor), Michael Kamm (Editor), ISBN: 3-527-31027-4, p3 & 13

Sustainable
Employment
The Bio-economy (Policy) Framework
BIO-ECONOMY
Secure supply of
low carbon energy
Emissions Trading
Infrastructure
Regulatory & Policy Frameworks
Innovation
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Biorefinery - definitions
Full utilisation of biomass
up to 90 %, which is a significant competitive advantage in future
markets, where demand for renewable energy and biomass raw
material is much intensified.
Maximising the economic value of trees / crops
Heat / Energy
Biochemicals
(bulk and fine, functional equivalence vs identical)
Biomaterials
“converting the current agri- products industry to being a significant
source of green power, renewable transportation fuels, and/or bio-derived
industrial chemicals whilst continuing to innovate in the current products”
Necessitates new business models
Corporate transition & partnerships
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Industry transition

MB Biomass: Opportunities & Issues
Challenge: Move the industry from commodity to value-add
Processing
Increase profitability with existing capital
Staged approach – c.f. Chambost & Stuart*
Multiple product lines possible
Main, co- and by-products
Pre- and post-digester opportunities
Hemicelluloses, black liquor gasification / lignin precipitation
Biggest opportunities in biofuels and bulk & fine chemicals
Feedstock optimisation
Traditional breeding
Biotech solutions
Issues
ETS
Revenue streams and markets
Organisational changes - partnerships
Resource competition – e.g. pulp vs energy sectors
Price sensitivities, public policy
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Implementing the Biorefinery (Chambost & Stuart)
Phase 1 – Lower operating costs
Replacement of fossil fuels at mill
Minimum risk technology
Technology partnership – building blocks
Phase 2 – Increase revenues
Manufacture of derivatives, new products
Higher complexity and technology risks
Commercial partnership
Phase 3 – Improve margins
Knowledge-based manufacturing
Process flexibility
Company culture transformed
Value chain partnership
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Heat / Energy: Biomass Energy
Pathways
Simple heat and power generation can be made using
biomass from assorted waste streams, however, more
valuable industrial chemicals and liquid fuels can also be
generated from biomass.
Pyrolysis and Gasification of biomass produces synthesis
gas („syngas‟) a mixture of CO and hydrogen which allows a
suite of catalytic and reformation reactions
Fischer - Tropsch reaction which can make diesel, jet fuel
and petrol.
Syngas can also be used for producing industrial chemicals
methanol, ethanol and dimethyl ether.
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Biomass to Liquid Fuel (BLF)
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http://www.biomassmagazine.com/

Lignocellulose
(e.g. Forest Residues, Waste
Paper, Crop Residues, Green
Waste)
The Furafuel Concept
Furafuel Process
Simple, small scale,
Stable, neutral,
“Bio-Crude” oil
rich in furans
operated close to raw materials
ETHYL LEVULINATE (biodiesel)
Polymers
Solvents & other chemicals
Biorefinery
large, high pressure,
centrally located,
using known processes
OCH 2 CH 3
Esterification
with ethanol
Levulinic Acid
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Source – CSIRO/ensis

Market volume (kg/yr)
Market size and price for biomass derived products
Biomass derived commodities Biomass derived specialty chemicals Biomass derived Pharmaceuticals
Biochemicals / Biomaterials
1.00E+11
cellulose-based fibres
1.00E+10
fatty acids
1.00E+09
1.00E+08
speciality celluloses
1.00E+07
Gallic acid
1.00E+06
Aldehydes
sterols
1.00E+05
1.00E+04
1.00E+03
1.00E+02
1.00E+01
essential oils
chitsans and derivatives
vitamins
Maltol
Proanthocyanidins
bioactive polyphenols
chiral drugs
cis-3-Hexanol
trans-2-Hexenal
Taxans
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1.00E+00
Source – Industry Canada
1 10 100 1000 10000 100000
Market price (US$/kg)

Project Scope: Biofibres in
Transportation Applications
Urethane
Soy
Systems
MCI
SWM Intl
Test
Facilities
Mat
Producers
FFI
Industry Partners: SWM Intl,
MCI, Motive Industries
Motive
SWM Intl
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PROJECT HIGHLIGHTS

Biomaterials: Green Building Uses
• Renewable building
materials to build a
demonstrator garage
Material
Distributors
SWM Intl.
Test
Facilities
Mat
Producers
Industry Partners - TBD
Building
Fabricators
Emerson
Hemp DC
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PROJECT HIGHLIGHTS

Feedstocks - Biomonomers ==> Biopolymers
Biomass Biorefinery Biopolymer
Proteins
Lignin
Starch
Hemicellulose
Cellulose
Oils
Amino acids, peptides
Aromatic diacids, dihydroxy’s, hydroxyacids
Di- and polyhydroxy’s
Di- and polyhydroxy’s, diacids, hydroxyacids
Polyamides
Polyesters
Polyols
Polyurethanes
Polyesters
Polyols
Polyamides
Polyurethanes
Polyesters
Polyols
Polyurethanes
Polyamides
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Lignin - issues
Most abundant aromatic polymer
98-99% of kraft / sulfite lignins used as fuel for process chemical
recovery
1-2% used for specialty chemicals:
Dispersants, emulsifiers, binders
Conversion to high-value products hindered by
Complexity
heterogeneity
Polydispersity
High levels of impurities
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Products from Lignin
Combustion
Energy
Complete degradation (pyrolysis)
Methane, CO, Syngas
Partial degradation
Phenolics – synthesis of polymers and resins
Hybrid adhesive systems (phenolics + oils + tannin adhesives) for fibre composite
systems
Papermaking additive replacement (e.g. binder systems for coated papers)
Sulfur-free lignins:
Produced during bioethanol production, solvent or soda pulping
Superior properties
Substitute for phenolic powder resins
Brake pads, OSB binders
Polyurethane foams
Epoxy resins
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Cellulose nanocrystals
Cellulose nanofibres
diameters of 5–50 nm and lengths of several millimetres conformed by
nanocrystalline domains and amorphous regions.
nanocellulose crystals make up to 20% by mass of wood
applications as reinforcements in composite materials
Liquid crystal properties (nematic and chiral nematic).
The mechanical properties of nanocellulose crystals
tensile strength twice that of steel wire but with a comparable modulus
tensile strength 25% and a modulus 25-50% of carbon nanotubes but a
small fraction of the cost
reinforcing agents in polymeric materials with the potential to create a
green bio-steel material
accessible anisotropic surface chemistry of the crystals allows for ready
chemical modification
crystals are biologically compatible and could be used in areas nontraditional
to the forest industry such as scaffolding for medical
applications and reinforcement for shape memory polymers
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Wood Extractives
Non-cell wall components
Can be removed using solvents,
e.g. pet. ether, acetone, ethanol,
water
- Relatively small molecules (<
C40)
Usually comprise 1-5% of the
wood
Under genetic control & vary by
species
Wood Extractives
Fernandez et al. Journal of Chromatography A
922(1,2), 225-233 (2001)
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Some extractives & their utilities
Fatty acids
Linoleic acid (dietary), Suberin (polyester)
b-sitosterol
Terpenoids
Monoterpenes
Pinene, limonene (fragrances & flavours)
Diterpenes
Abeitic acid, pimaric acid (resins, sizing agents)
Triterpenes
Betulin (medicinal)
Phenolics
Stilbenes (pinosylvin), flavonoids, lignans
Bioactive polyphenolics can be applied to health protection (e.g.
anti-oxidant properties) and disease treatment (viral and cancer
treatments with podophyllotoxin/nor-dihydroguaiaretic acid
derivatives).
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Example: Betulin
Has been shown to help wounds heal faster and cut inflammation.
Many cosmetic companies, touting it as a skin toner and restorer, add
birch bark extract to various products.
Betulin can be easily converted to betulinic acid, which possesses a wide
spectrum of biological and pharmacological activities.
antimalarial and anti-inflammatory activities
anti-HIV activity and cytotoxicity against a variety of tumor cell lines
comparable to some clinically used drugs.
Betulinic acid is specifically cytotoxic to several tumor cell lines
(melanoma) by inducing apoptosis in cells.
Fields of application:
1. Raw material for pharmaceutical production;
2. As a main active ingredient in parfumery-cosmetic products;
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Poyry analysis 1
•It is expected that second-generation biofuels can compete when crude
oil prices are EUR 46-77 per barrel (VIEWLS 2005).
production costs will be influenced by future fuel specifications,
end-use issues and other aspects such as by-product markets.
If the development and scale-up of second-generation biofuels
is successful and biomass becomes and remains cheaply
available, second-generation biofuels can compete at about
EUR 31 per barrel.
All second-generation biofuels are still in the R&D/pilot phase and are
not yet available on the market because of technical limitations.
Compared to first-generation biofuels, cellulosic bioethanol, FT biodiesel
and HTU diesel are expected to yield far higher reductions in
greenhouse gas emissions.
The main environmental drawback of second-generation biofuels
concerns the sources of the biomass required
waste streams vs. cultivated
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Source PIRA, 2007

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Poyry analysis 2
Process flexibility
a mill should be able to achieve targeted returns for the
integrated processes under a range of volatile market and
economic circumstances.
optimisation and adjustment of carbon consumption to produce
fibres, bioenergy, green chemicals or structural material
products.
what are the most attractive process variations that a mill
should consider?
•Energy generation
how can energy systems best be integrated and optimised
between the BTL plant and the existing mill?
Preliminary calculations indicate that the wood-paying capability of paper
production is still significantly higher than that of biofuel production
taxation and subsidies will determine the competitiveness of
liquid biofuels
However, some assessments of economic performance indicate
that the profit from co-production of FT (Fischer-Tropsch)
liquids could be of similar to that from paper production. (VTT,
Lahti, Nov. 2006)

Role of the market
Public Policy & Market Forces
Efficient allocation of resources
for maximum returns
Role of public policy
Focus on essential societal
values NOT priced – market
failures
Environmental impacts
Zero-waste initiatives
Biofuels part of a combined
solution (solar, C capture)
Technology development
Technology clusters – e.g.
gasification
Public good, pre-competitive
Policy integration
Biomass, energy, chemicals,
R&D
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Manitoba: Biomass
Agricultural biomass
19 m acres of farmland
0.4 m acres of flax
0.4 m tonnes flax straw p.a.
Forest biomass
65 m acres
Mixture of softwood and hardwood species
1.5 m m3 softwood and 0.7 m m3 hardwood p.a.
1.0 m tonnes of harvest residues p.a.
Waste streams – industrial and municipal
Hogs, potatoes, oat hulls
250,000 tonnes municipal waste biomass
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Source – Manitoba Government (Growing Green)

Manitoba: Industry
MB bioproducts companies number > 30
Biofuels sector
Speedway International
Biofibres and biomaterials
Forestry – Tolko
Ag-fibre – SWM International
Waste streams – Solanyl Biopolymers Inc.
Connecting to larger industry / OEM
Composites Innovation Centre Inc.
Richardson Centre for Functional Foods and Nutraceuticals
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Manitoba: Priorities
Growing Green
Key principals for a successful bioeconomy sector
Integration
Remove “silos” between resources – multiple feedstock management
(& multi-purpose crops), systems approach
Whole-of-value-chain focus
Alliances, collaborative and cost-sharing partnerships
Innovation
Bioproducts Manitoba – Innovation champion
Growing and supporting bioproducts companies
Clustering
New technologies transferred
Commitment
A sustainable environment and communities
Kyoto
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Fundamental challenges
Interpreting major trends in other jurisdictions
Global big-picture view
Inspirational “thought-leadership”
Government policy and industry, “early-adopter” contacts, SME
relationships
Connectedness & information deficit
Collaborations, international
Critical mass – supply chain
Capability cross-talk
Talent retention & attraction
Skills development – training
Global talent shortage – international competition
Yes! Winnipeg
Cutting edge technology development & adaptation
Appropriate resourcing & prioritisation
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CONTACT INFORMATION
Simon Potter
Sector Manager – Product Innovation
Adjunct Professor – University of Manitoba
CIC Contact Information:
Website: www.compositesinnovation.ca
Email: spotter@compositesinnovation.ca
Tel No.: 204-262-3400 Ext 209
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