Overview - Mississippi Biomass and Renewable Energy Council

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Overview - Mississippi Biomass and Renewable Energy Council

From Farm Fields to Future Fuels …

Growing a Biomass Energy

Industry in Tennessee

April 14, 2010

9 th Annual Southern BioProducts & Renewable Energy Conference

Tunica, MS

Kelly Tiller, Ph.D.

President & CEO

Genera Energy LLC

2450 E.J. Chapman Drive

Knoxville, TN 37996

865.974.8258

ktiller@generaenergy.net

Director of External Operations

University of Tennessee

Office of Bioenergy Programs

Knoxville, TN 37996‐4570

865.946.1130

ktiller@tennessee.edu

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Overview

• UT Biofuels Initiative update

– Switchgrass Farmer Incentive Program

– Cellulosic Ethanol Biorefinery

Energy crop industry outlook

– Biofuels, biopower, bioproducts

• Building a biomass industry

Biomass Innovation Park

– Tennessee Biomass Supply Co‐op

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Tennessee’s Comprehensive Approach

Energy Crop Supply Chain

Demonstrate the establishment of a

dedicated biomass energy crop

supply chain with farmers

• 6,000 acres of switchgrass

Biofuels, Bioproducts R&D

Establish premier RD&D capabilities

and capacity in biofuels

and bioproducts

Commercialization

Develop a viable, sustainable, longterm

path to commercialization

of cellulosic biofuels in Tennessee

Biomass supply infrastructure

$70.5 Million State Commitment

Cellulosic Ethanol Biorefinery

Demonstrate the pre­commercial

production of ethanol

from switchgrass

• 250,000 gal biorefinery, Dec 2009

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

State of Tennessee Commitment

• 5‐year funding commitment: $70.5M

–$40.7M capital (bricks & mortar)

appropriated in 2007

–$29.75M committed for operations and

farmer switchgrass programs

• Business‐like approach

–Created Genera Energy LLC to implement

• Leveraging state investment with private

partners & federal grants (>$163M since

2007)

– DOE funded ($135M) BioEnergy Science Center

at Oak Ridge National Laboratory

– Significant DDCE investment in biorefinery

– Complements Southeastern Sun Grant Center

($15M) R&D programs

– $4.9M DOE biomass high tonnage logistics grant

– $2.4M BRDI grant for improved switchgrass

variety demonstration

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Switchgrass Focus

• Well suited to the Southeast

– Currently, ~6‐10 tons/acre in TN

– Potential for 12+ tons/acre

• Warm season, native, perennial grass

• Tolerates poor soils, flooding, drought

• Highly resistant to many pests and

plant diseases

– Low use of chemicals or fertilizers

• 1‐2 year establishment

– Weed control critical in establishment

• Works with existing infrastructure

• May be removed, improves soil quality

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Tenn. Switchgrass Experience

• Contracting with local farmers to

produce more than 6,000 acres of

switchgrass

– Nearly 3,000 acres harvested in 2009

– Added >3,000 acres in 2010

• $450/ac/yr for 3 years, we provide

seed and technical expertise

– Separate storage contracts

– Moved to a yield‐based component

in 2010

• Averaging about 8 tons/ac by 3 rd year

– Harvesting ~2 tons in year 1

– ~5 tons in year 2

– ~8 tons year 3 and beyond

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Tenn. Switchgrass Experience (cont’d)

• UT Extension partners critical to

success

• Switchgrass program includes R&D

on entire biomass supply chain

– Farm production, harvest,

densification, storage, transport, preprocessing

• Building infrastructure for

commercial supplies

– Formed new‐generation farmer

cooperative to supply commercial

partners

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Switchgrass Contract Farms

Cumberland

Roane

Knox

Loudon

Blount

Rhea

Vonore

Biorefinery

Meigs

Monroe

McMinn

Bradley

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Polk

• 2008 SFIP Contract

• 2009 SFIP Contract


Switchgrass to Ethanol

1. Pre-processing 2. Pre-treatment

3. Saccharification

5. Distillation

4. Fermentation

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Cellulosic Ethanol Biorefinery

• Collaboration between Genera

Energy and DuPont Danisco

(DDCE)

• Vonore, Tennessee: Niles Ferry

Industrial Park, Monroe County,

32 acre site

• Optimized as precursor to

commercial facility

• 250,000 GPY pilot plant and

Process Development Unit (PDU)

• Started operations December

2009

• Multiple feedstocks: cob &

switchgrass

• Long‐term operation as an RD&D

facility

Artist Rendering: Gresham Smith & Partners, January 2009

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


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Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Biorefinery Grand Opening

January 29, 2010

“ I believe the Vonore facility is going to be a real catalyst for additional economic activity in Tennessee.

This marks an important step forward in our state’s efforts to develop clean energy technology.”

- Governor Bredesen

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


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Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


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Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Overview

• UT Biofuels Initiative update

– Switchgrass Farmer Incentive Program

– Cellulosic Ethanol Biorefinery

Energy crop industry outlook

– Biofuels, biopower, bioproducts

• Building a biomass industry

Biomass Innovation Park

– Tennessee Biomass Supply Co‐op

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Expanded Renewable Fuels Mandate

35

Billion Gallons per Year

30

25

20

15

10

5

0

Effective 2010: Federal cellulosic fuels

mandate of 5MM gallons

Advanced Biofuels Production

Cellulosic Ethanol Production

Corn Ethanol RFS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

60% of

biofuels

non‐corn,

16 BGY

cellulosic

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Technology Status —Key Metrics

Initial

May 2008

Status

Nov 2009

SELECT INPUT VARIABLES

Commercial

Target (2012)

Enzyme Cost (% of original) 100% 50% 22%

CAPEX - 2008$ per Gal $8+ $5 to $7 ~$3 to $5

PROCESS RESULTS

Total process yield - Gal/T 67 85 90

Ethanol Titer - g/L 63 82 90

COM - $/Gal ~ $3.00


RFS2 Requires Aggressive Buildout

• Average 40 new

construction starts per

year by 2012

• 300+ plants likely

operated on dedicated

energy crops or SRWC

• Requires > 2M acres/yr

NEW energy crops

beginning 2011

50 MGY plants

$4/gal CAPEX

Acres of dedicated energy crops

at 10 dt/acre

Meeting the 2022 RFS for Cellulosic Ethanol

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Biomass Processing & Products

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Mandates for Renewable Electricity

Southeast has the biggest

hurdle for compliance


Biomass will be a key

solution for the Southeast

• Currently have a patchwork of

state mandates

– Most have passed since 2004

– Ranges from 8% by 2020 (Penn.) to

40% by 2017 (Maine)

– Wide range of approaches

• Disproportionate effect on

Southeast

– Heavily dependent upon coal

– Most economical way to meet is

with wind, geothermal, some solar

…not an option for SE

• Federal mandate expected

– Passed Senate 3 times since 2002

– Passed House in 2007, dropped out

in Conference

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Renewable Energy Options

Biomass

Geothermal

Solar (PV)

Wind

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Overview

• UT Biofuels Initiative update

– Switchgrass Farmer Incentive Program

– Cellulosic Ethanol Biorefinery

Energy crop industry outlook

– Biofuels, biopower, bioproducts

• Building a biomass industry

Biomass Innovation Park

– Tennessee Biomass Supply Co‐op

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

TN Switchgrass Potential

Switchgrass

(2014, at $50/dt)

by 2025

4,268,894

3,964,812

3,595,344

2,343,861

2,037,264

2,652,494

Ugarte, et al. 2006. Economic Implications to the Agricultural

Sector of Increasing the Production of Biomass Feedstocks to Meet

Biopower, Biofuels and Bioproduct Demands.

• Dry tons of switchgrass

• Assuming $40/dt at the farm gate

• Assuming yields around 6 dt/acre

• Without disrupting sector balance

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


The Gap: Arm‐Chair Farming


Farming looks mighty

easy when your plow

is a pencil, and you are

a thousand miles from

the corn field.


Dwight Eisenhower

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Adapted from Ceres, Inc., 2009

Biomass Energy Supply Chain

Biomass Feedstocks

Biomass Logistics

Biomass Pre-Processing

Processing

Biomass Conversion

Product Logistics

End Use

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Next Steps:

Tennessee Biomass Innovation Park

• World‐class research, development and demonstration campus

• Focused on purpose‐grown energy crops such as perennial grasses, annuals, and short

rotation woody crops

• Integrates entire biomass

supply chain

• Agronomics, plant genetics,

production

• Harvest, handling, storage,

densification,

transportation

• High throughput screening

and analysis

• Pre‐processing

• Intermediate processing

and conversion

• Co‐located with

biorefinery in Vonore

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Biomass Innovation Park

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Switchgrass Utilization Demonstration

• High‐density bulk

handling

• Pre‐processing & milling

• Storage

• Pelleting

• Torrefaction

• Gasification

• Fast pyrolysis

• Multi‐feedstock systems

• Scale‐up

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Integrated Feedstock Supply Solution

Aggregation

•Contract

production

• Marketing

Storage

• Centralized storage

•Densification

Seed Production

• Cleaning, processing

• Marketing

Tennessee

Biomass Supply

Cooperative

Transportation

•Farm gate

• Intermediates

•Final products

Pre‐Processing

• Chop, grind, hammermill

•Drying

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Intermediate Processing

•• Pelletization

•Pre‐treatment, • Pretreatment, separations


Depot Products for Biorefinery Input

• Thermochemical Biofuels and Heat/Power Market:

– Achieving ash, moisture and rheological property specifications

– Blending to produce a commodity market like corn or coal

• Biochemical Biofuels and Products Market:

– Achieving carbohydrate structure for specific conversion processes

– Blending, if at all, within species for a commodity market like wheat

• Petroleum Refinery Market:

– Achieving energy density and feedstock stability

– Blending to produce a stabilized liquid “bio‐crude” for a commodity

market like petroleum crude

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION

Summary

Biomass:

– Flexible feedstock

– A $200+ billion market

– Concentrated in the Southeast

Biomass supply and demand must move in lock‐step

• Collaborating across the supply chain to provide simple

solutions for bioenergy producers and biomass producers

• Well positioned to benefit from developing intellectual

property

– Unique structure to leverage IP and investment

Copyright 2010, Genera Energy LLC, NOT FOR DISTRIBUTION


Tennessee Leading by Example

www.GeneraEnergy.net

www.UTbioenergy.org

Institute of Agriculture • Office of Bioenergy Programs

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