July 2011 Biorefining Magazine

INSIDE: IS BRAZIL’S ENERGY INDEPENDENCE GOOD FOR THE US? July 2011

Dialing in on Winning Pathways The National Advanced Biofuels Consortium will soon select the most promising biorefining technologies. Then what?

Page 22

Plus

A Bright Future for Biorefining in Netherlands

Page 30

And

The Road to Process Validation Can Take Many Turns

Page 38

www.biorefiningmagazine.com

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contents |

July issue 2011 VOL. 02 ISSUE 07

features

22

PROCESS The Down-select Debate A consortium picks technology pathway winners (and losers)

By Luke Geiver

30

international Creating a Biobased Economy Holland fast-tracks development of its biorefining sector

By Erin Voegele

38

INDUSTRY The Path to Validation What’s behind the development of a biorefining package?

By BRYAN SIMS AND LUKE GEIVER

Contents DEPARTMENTS 4

Editor’s Note

9

Legal Perspectives

Euro Trip

BY RON KOTRBA

Optimizing for Better Economics

BY JOHN EUSTERMANN

6

Advanced Advocacy

Is Independence Down South Good for the US?

BY MICHAEL McADAMS

10 Business Briefs

7

Industry Events

Upcoming Conferences & Trade Shows

8

Talking Point

Process, System and Technology Validation

BY ROMAN WOLFF

People, Partnerships & Deals

INSIDE: IS DEClARING INDEPENDENCE DOWN SOuTH GOOD FOR THE uS? July 2011

Dialing in on Winning Pathways The National Advanced Biofuels Consortium will soon select the most promising biorefining technologies. Then what?

Page 22

12 Startup

Biorefining News & Trends

Plus

A Bright Future for Biorefining in the Netherlands

Page 30

And

The Road to Process Validation Can Take Many Turns

Page 38

www.biorefiningmagazine.com

ON THE COVER: For the past year, research teams affiliated with the NABC have been testing and retesting six different process technologies for commercial viability.

JUly 2011 | Biorefining Magazine | 3

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editor’s note

In late May, the Netherlands Foreign Investment Agency hosted a tour of the region’s prolific biorefining and bioenergy sector. The agen-

EURO TRIP Ron Kotrba, Editor rkotrba@bbiinternational.com

cy also showcased some of the economic and logistic advantages Netherlands can offer new companies in the biobased industries. Fortunately, Biorefining Magazine Associate Editor Erin Voegele had the opportunity to travel to Europe and participate in the week-long event.

While there, Voegele met with representatives of the country’s Ministry of Economic Affairs, Agriculture and Innovation, and she also toured nearly a dozen biorefining projects ranging from commercial-scale operations to research and development initiatives. She says by the end of the week, one thing was clear: “The Dutch government has recognized the economic development opportunity the biorefining sector can offer and is taking the necessary steps to attract investment to its growing biobased industry.”

While the importance of sustainability is growing across the world, there is no region that emphasizes it more than Europe. Voegele says on the tours, representatives of nearly every company involved stressed how important sustainability targets are to their operations and growing business sectors. “In fact,” she says, “one project highlighted at Wageningen University, known as Biocomet, is working to directly produce chemicals as part of a photosynthesis process. Another project at the university currently aimed at increasing food production is working to increase the amount of solar energy plants can convert into carbohydrates.”

In addition to touring several bioplastic and algae operations, which you can read about in her feature article on page 30, Voegele also visited a biomass gasification and torrefaction project housed at the Energy Research Center of Netherlands, one of Europe’s leading renewable energy research institutions. She says the center is working to develop a torrefaction process that can convert a wide variety of biomass materials into a fuel powder or pellets that could be used on their own or cofired with coal to produce heat and power. A five to 10 ton-per-hour demo plant is currently under development. She also says the center has developed a gasification technology it refers to as a Milena gasifier, which features an indirect fluidized bed gasifier and an innovative tar removal system.

for more news, information and perspective, visit biorefiningmagazine.com/BLOG/READ/BIOREFINING

ASSOCIATE EDITORS Luke Geiver writes “The Down-select Debate” on page 22, which explores the National Advanced Biofuels Consortium’s technology pathway selection.

4 | Biorefining Magazine | JUly 2011

Erin Voegele details her week-long Netherlands tour put on by the country’s foreign investment agency in “Creating a Biobased Economy” on page 30.

Bryan Sims is on a leave of absence to continue the fight against rising Missouri River floodwaters in Bismarck, N.D., as a soldier in the National Guard.

EDITORIAL EDITOR Ron Kotrba rkotrba@bbiinternational.com ASSOCIATE EDITORS Erin Voegele evoegele@bbiinternational.com Luke Geiver lgeiver@bbiinternational.com Bryan Sims bsims@bbiinternational.com COPY EDITOR Jan Tellmann jtellmann@bbiinternational.com

ART ART DIRECTOR Jaci Satterlund jsatterlund@bbiinternational.com graphic designerS Erica Marquis emarquis@bbiinternational.com Lindsey Noble lnoble@bbiinternational.com

PUBLISHING CHAIRMAN Mike Bryan mbryan@bbiinternational.com CEO Joe Bryan jbryan@bbiinternational.com VICE PRESIDENT Tom Bryan tbryan@bbiinternational.com

SALES VICE PRESIDENT, SALES & MARKETING Matthew Spoor mspoor@bbiinternational.com EXECUTIVE ACCOUNT MANAGER Howard Brockhouse hbrockhouse@bbiinternational.com SENIOR ACCOUNT MANAGER Jeremy Hanson jhanson@bbiinternational.com ACCOUNT MANAGERS Chip Shereck cshereck@bbiinternational.com Marty Steen msteen@bbiinternational.com Bob Brown bbrown@bbiinternational.com Andrea Anderson aanderson@bbiinternational.com Dave Austin daustin@bbiinternational.com Nick Jensen njensen@bbiinternational.com CIRCULATION MANAGER Jessica Beaudry jbeaudry@bbiinternational.com ADVERTISING COORDINATOR Marla DeFoe mdefoe@bbiinternational.com Senior Marketing Manager John Nelson jnelson@bbiinternational.com

Customer Service Please call 1-866-746-8385 or email us at service@bbiinternational.com. Subscriptions to Biorefining Magazine are free of charge to everyone with the exception of a shipping and handling charge of $49.95 for any country outside the United States, Canada or Mexico. To subscribe, visit www.biorefiningmagazine.com or you can send your mailing address and payment (checks made out to BBI International) to: Biorefining Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You can also fax a subscription form to (701) 746-5367. Back Issues, Reprints and Permissions Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at (701) 746-8385 or service@bbiinternational.com. Advertising Biorefining Magazine provides a specific topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To find out more about Biorefining Magazine advertising opportunities, please contact us at (701) 746-8385 or service@bbiinternational.com. Letters to the Editor We welcome letters to the editor. Send to Biorefining Magazine Letters to the Editor, 308 2nd Ave. N., Suite 304, Grand Forks, ND 58203 or e-mail to rkotrba@bbiinternational.com. Please include your name, address and phone number. Letters may be edited for clarity and/or space.

Please recycle this magazine and remove inserts or samples before recycling TM

COPYRIGHT Š 2011 by BBI International

JUly 2011 | Biorefining Magazine | 5

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advanced advocacy

Is Independence Down South Good for the US? How Brazil’s milestone can reinvigorate America’s quest for energy freedom

BY Michael mcadams

E

very two years leaders from around the world in academia, governments, nonprofits, science, agriculture and industry gather in Sao Paulo, Brazil, for an engaging summit focused on every facet of the biofuels world, debating and discussing the value and significance to our collective futures. It is a truly global event that I am particularly proud to play a small part in as a representative of our domestic biofuels industry.

The significance of each event has grown each year it is held and this year’s summit is more important, with more attention, than any others before it. We know the U.S. isn’t alone in its endeavor to invest, develop and deploy renewable energy alternatives, but a quick glance at the stakeholders here in Brazil demonstrates that any hesitation by our elected leaders in Washington could very well jeopardize the leadership position we’ve worked hard to stake out.

In fact, Brazil is no rookie to this and continues to court world leaders and make headlines as it announced in May it no longer needs to import gasoline, essentially declaring its energy independence as it created the right balance between their hydrocarbon and renewable fuels.

As I write this from Sao Paulo in early June, however, drivers across the U.S. are pulling up to $4-plus prices at the pump, and as we head toward celebrating our own independence as Americans, I have to wonder whether the U.S. must reach a milestone similar to the Brazilians’ to retain our leadership in deploying advanced biofuels and in the greater renewable energy space.

Energy policy in the U.S. has to start with the realization that we work within a global framework. Our nation now finds itself at a point that we can, and must, leverage our diversity in supply within our shores, across

6 | Biorefining Magazine | JUly 2011

all renewable platforms, not just biofuels, but solar, wind, and geothermal and others so that we have a portfolio approach to energy, an approach which will position the U.S. economically relative to the rest of the world.

We can’t escape the fact that we will always be an integral part of a global market place.

Don’t get me wrong, I am not suggesting our industry take a back seat, because from my vantage point, the core of this diverse energy portfolio must be a robust, thriving advanced biofuels market. Over this past year I’ve shared, in bits and pieces, how we can get to that point and I thought as we have independence on our mind this month, what better time to put it all together.

Below are some guiding principles for consistent public policies to foster growth of the domestic biofuels industry in America.

Technology Neutrality: Don’t pick a winner! The government’s track record of picking winning technologies does not compare with the free market. Instead, government should support objectives that allow companies to compete unfettered by regulatory or tax preferences.

Subsidy Parity: Whatever role government chooses to take to support the development of biofuels, the terms of engagement should be at parity. Giving one fuel $1 and another 50 cents is not a successful strategy if the goal is to back out foreign oil with as many gallons as possible.

Feedstock Neutrality: Like it or not, we have already dedicated a significant number of available farm acreage to certain crops.

Any serious effort to replace foreign oil must recognize that all feedstocks have to be part of the equation moving forward.

Those principles could help guide the following legislative maneuvers to ensure the all-important consistency and smarter investments of taxpayer’s dollars.

The Renewable Fuel Standard 2 (RFS2) is currently being implemented and is

successfully driving commercial investment in advanced fuels. We must maintain the integrity of the RFS2 in the near term. Because it guarantees a market, the RFS2 is the single most important market driver in the advanced biofuels space. Congress should allow the capital markets more time to sort out the best technologies Tax Policy Certainty is critical to creating jobs and domestic infrastructure. The federal government should extend the length of biofuels tax credits. By providing long-term support such as a five-year time frame, the federal government would provide a stable platform, creating certainty for the investment community. This would play a significant role in enabling investors to build the next round of commercial advanced biofuels facilities.

Equal Participation in renewable energy tax credits and incentives is needed. Programs such as the renewable energy Investment Tax Credit have been instrumental in catalyzing more than $7 billion in development in the wind and solar industries. Expanding eligibility to include advanced and cellulosic biofuels producers would have a similar positive effect of spurring commercialization to accelerate the growth of new production capacity.

We should give all renewables an equal opportunity to participate under the law.

Long-term Contracting Authority allows the federal government to directly purchase fuels over a long period of time, helping to provide the necessary revenue flow to commercially build advanced biofuels plants. Congress should extend the length of purchasing time for up to 15 years for advanced biofuels.

Author: Michael McAdams President, Advanced Biofuels Association (202) 469-5140 Michael.McAdams@hklaw.com

events calendar |

International Biorefining Conference & Trade Show

September 14-16, 2011

Hilton Americas – Houston Houston, Texas The International Biorefining Conference & Trade Show brings together agricultural, forestry, waste, and petrochemical professionals to explore the value-added opportunities awaiting them and their organizations within the quickly maturing biorefining industry. Register by August 3 and save $200 on conference registration.

(866)746-8385 www.biorefiningconference.com

Northeast Biomass Conference & Trade Show

October 11-13, 2011

Biomass Event Hotspot: Atlanta in November 11/1

If you attend just one event in the Southeast this year, make it BBI International’s Southeast Biomass Conference & Trade Show, produced jointly by Biomass Power & Thermal and Biorefining magazines.

The Southeast Biomass Conference & Trade Show, which returns to Atlanta this year, will be held Nov. 1-3 at the Hyatt Regency Atlanta.

The conference, one of three distinct regional offshoots of BBI’s International Biomass Conference & Expo, will feature more than 60 speakers in four tracks: - - - -

Electricity generation Industrial heat and power Biomass project development and finance Biorefining

The Southeast Biomass Conference & Trade Show will connect the area’s current and future producers of biomass-derived electricity, industrial heat and power, and advanced biofuels, with: - Waste generators - Aggregators - Growers - Municipal leaders - Utility executives

- - - -

Technology providers Equipment manufacturers Investors Policy makers

The Southeast Biomass Conference & Trade Show is designed to help you, the biomass industry stakeholder, identify and evaluate solutions that fit your operation.

It’s time to improve your operational efficiencies and tap into the revenuegenerating potential of sustainable biomass resources in the region.

Register today at http://se.biomassconference.com.

Westin Place Hotel Pittsburgh, Pennsylvania With an exclusive focus on biomass utilization in the Northeast—from Maryland to Maine—the Northeast Biomass Conference & Trade Show will connect current and future producers of biomass-derived electricity, industrial heat and power, and advanced biofuels, with waste generators, aggregators, growers, municipal leaders, utilities, technology providers, equipment manufacturers, investors and policymakers.

(866)746-8385 www.biomassconference.com/northeast

Algae Biomass Summit

October 25-27, 2011

Hyatt Regency Minneapolis Minneapolis, Minnesota Organized by the Algae Biomass Organization and coproduced by BBI International, this event brings current and future producers of biobased products and energy together with algae crop growers, municipal leaders, technology providers, equipment manufacturers, project developers, investors and policy makers. It’s a true one-stop shop—the world’s premier educational and networking junction for all algae industries.

(866)746-8385 www.algaebiomasssummit.org

Southeast Biomass Conference & Trade Show

November 1-3, 2011

Hyatt Regency Atlanta Atlanta, Georgia With an exclusive focus on biomass utilization in the Southeast—from the Virginias to the Gulf Coast—the Southeast Biomass Conference & Trade Show will connect the area’s current and future producers of biomass-derived electricity, industrial heat and power, and advanced biofuels, with waste generators, aggregators, growers, municipal leaders, utility executives, technology providers, equipment manufacturers, investors and policy makers. Speaker abstracts are being accepted online through July 15th.

(866)746-8385 www.biomassconference.com/southeast JUly 2011 | Biorefining Magazine | 7

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talking point

Process, System and Technology Validation A roadmap to successful biorefining project development

By Roman Wolff

B

iofuels and biorefining are new industries, and many of the emergent processes, systems and technologies that support these promising industries have no plants in commercial operations. Those wanting to enter the biofuels or biorefining sector are left with the daunting task of identifying and validating these new technologies, the determining factor in the success or failure of the venture.

Technology identification and validation is, to a certain extent, a subjective process and it depends on the business requirements of a particular project. This process is time consuming and technically demanding and is best left to those with experience in the field. A technology partner with the technical expertise and practical business sense can bring together, in an effective manner, the technical and business needs of the project or venture. However, even if you hire an expert, you will still need a roadmap to understand the key decision mileposts in the technology identification and validation process.

Identification: Emergent technologies may be found in the trade literature (Biorefining Magazine, Biodiesel Magazine, etc.), web searches (universities, patent office, etc.), trade shows, or by using an experienced technology partner. Business goals must be clearly and quantifiably defined for each project. Compare each technology against the business goals and identify those that make the cut.

Economics: Preliminary economics of the technologies, which are provided by the technology supplier, will be compared to the economic requirements of the project.

Insist on having all basis and assumptions (capital cost and scope, feedstock, energy

8 | Biorefining Magazine | JUly 2011

and labor costs, catalyst, waste disposal cost, cost of capital, etc.) clearly defined to ensure an “apples to apples” economic analysis and comparison between technologies. A good technology partner will help put all economic data on the same basis, define which technology provider will be able to meet the economic requirements of the project, and determine how the technologies stack-up against each other.

Proof of concept: This step should answer the questions, “does it work?” Is the science sound? Up until this point, the technology identification and validation process is based primarily on the claims of the technology supplier. The proof of concept should include as much independent data as possible. This milestone may include a literature search to define if similar science has been tried at universities, peer reviewed articles, pilot data from the technology supplier, and witnessed pilot tests. During proof of concept, a good technology partner with the proper skill-set will confirm the validity of the claims and benefits of the technology with independent data/ information. He/she will also compare the proposed process with similar technology in other industries to confirm feasibility.

Scalability: Once a technology provider has been chosen, the next step is to make sure that the chosen technology can be implemented at commercial scale. While the most conservative approach would be to use a technology that has already been implemented in the field, most of biofuels or biorefining technologies that promise profitability are new and have no plants in commercial operations. To validate scalability, one may use a semi-commercial pilot unit together with an independent engineering review. A reputable engineering company may be recommended by the technology provider. A technical feasibility analysis can be performed at this stage to define how the technology will work with all other pieces of the plant.

Deployment: At this stage, the front runner technology has been solidified and one must ensure that the technology can be deployed in the field. Critical to deployment is equipment: most of the equipment should be available “off the shelf,” which is easier to acquire, install, replace and maintain; catalyst: there should be a secure and verifiable source of catalyst supply; and alliances with engineering companies and/or fabrication shops that ensure enough resources to deliver the technology.

A basic engineering review is generally used to complete this milestone. In addition to answering most of the above questions, the basic engineering review provides a more in-depth look at the technology, including equipment sizing, process drawings, updated economics, better defined operational issues and more. This is the last stage of the technology identification and validation process.

Following this a producer will have identified a technology that meets the business goals, confirmed preliminary project economics, ensured the technology is sound, scalable and can be deployed in the field; hence, the technology has been validated and the project can be kicked off. A good technology partner can manage this process and help reduce risks associated with the identification, validation and implementation of emergent technologies.

Other nontechnical aspects of the technology identification and validation process are funding and acquisition of the chosen technology. These critical business aspects must be addressed concurrently with, and require input from, the technical team, but include another group of specialists: finance, business and legal.

Author: Roman Wolff President, Enhanced Biofuels (713) 301-8660 rwolff@enhancedbiofuels.com

LEGAL PERSPECTIVE |

I

n light of the current economic state of affairs, owners of existing biorefineries are looking at ways to reduce costs and boost revenues. Upgrading and optimizing current facilities appears to be at the top of the list. Incorporating new technologies and equipment into existing facilities can optimize yields and even create new revenue streams. When considering upgrades to technology, management is wise to consider the impact such activities have on previously executed financing or development agreements, technology licenses, or permits.

The following is a list of some common project-related documents, the terms and conditions of which should be considered when exploring technological modifications to an existing biorefinery: Financing Documents: Existing lenders and capital providers to a facility will, in most instances, encourage optimizing activities that clearly show cost benefits to the plant’s operations, whether it improves efficiencies or adds new revenue streams. Discussions of any of the aforementioned modifications should include a dialogue with the company’s lenders and other strategic capital funding sources. For example, in the case of facilities that are still subject to construction, term and/or working capital loans, there are likely several loan document restrictions that require lender consent to any significant changes to the plant. Also, subdebt/ convertible debt providers and/or preferred equity holders likely have rights under their relevant agreements that warrant consideration in advance of any plant modifications. A review of all financial and operational covenants as well as any rights and preferences under preferred equity arrangements is warranted, as a number of provisions might be triggered by such proposed investments in optimizing a facility. Before approving new capital investment, lenders and other stakeholders will want to review all background materials about the proposed project, including revenue enhancing and payback projections to ensure such figures are based on sound assumptions. The last thing any lender will approve is a capital project that costs more than it should or won’t provide the projected financial enhancements to the plant because of flawed assumptions. If management is seeking to finance plant modifications and grant liens on the new improvements, it is important to recognize that its current secured lenders likely have blanket liens and security interests in all

Optimizing for Better Economics Incorporating new technologies into existing facilities can be a path to new revenue streams By john eustermann

existing and future acquired company assets.

In such instances, each lender will likely need to agree to appropriate subordination and intercreditor arrangements. Finally, if financing the optimization activities, most lenders will ask for a collateral assignment of relevant project agreements and warranties, such as any technology license agreements, construction contracts, operational agreements, equipment warranties and off-take agreements.

Technology Licenses: In most instances, a technology license agreement is included in the overall construction or document package.

This document is typically executed between the process technology provider as the licensor and the entity developing the project as the licensee.

Technology licenses in this arena generally include language governing the scope of use of the initial process technology. Further, in most instances, such agreements include specific language regarding each party’s rights, duties and obligations related to subsequent technological modifications that the licensee may make or consider making to the initial licensed process.

Such language generally sets forth what modifications can or cannot be made to the process, how the final ownership of such modifications will look and what notice and disclosure activities are required in the face of such modifications. It is not unusual to see provisions in the license agreement where the licensor grants the licensee a limited license to use the technology solely in connection with the initial design, construction, operation, maintenance and repair of the facility. Such language seeks to limit the licensee’s ability to use the process technology to the initial plant design and configuration, and excludes such use for purposes of a plant or process that has been modified. Further, many licenses contain provisions stating that any and all modifications to the process technology are deemed the property of the licensor and that the licensee agrees to assign all rights, title and interest in such modifications to the licensor.

Such provisions not only create issues for the

licensee, but moreover will create issues for any third party whose optimization technology is being considered for installation by management. Thus, a close examination of the terms and conditions of the applicable technology license agreement and the respective parties’ intellectual property rights thereunder is warranted in the face of optimization strategies that involve technological modifications. A failure to make such and examination of the applicable technology license agreements may result in several unexpected technology ownership issues for both the plant owner and the follow on technology vendor.

Permits and Site Control Issues: The effect that any proposed optimization projects may have on a facility’s environmental controls likewise cannot be overlooked. Although permits are management’s main focus when initially developing and financing a biofuel refinery, they often become a nonissue as the-day-to-day operations of the facility take over. In the face of considering any plant modifications, much like when initially developing the facility, permitting should become top of mind. With regard to both air and water, plant upgrades and optimization activities can trigger management’s need to obtain new or revised permits. Regulatory review is often required when physical changes to the facility or changes in the method of the facility’s operation result in or may result in increased or modified air emissions or changes to water appropriation and/or water discharges at the plant. Such regulatory reviews will determine if additional permitting is required for operational compliance of the facility in its optimized state. Even if the resulting increased air emissions or changes to water appropriation and/or water discharges will meet existing permit limits, such regulatory review is likely required.

Author: John Eustermann Partner Attorney, Stoel Rives (208) 387-4218 jmeustermann@stoel.com

JUly 2011 | Biorefining Magazine | 9

business briefs People, Partnerships & Deals

Montreal-based Enerkem Inc. announced in June the closing of $60 million in financing.

Valero Energy Corp. became a new investor in the company as part of an equity round, joining existing investors Waste Management Inc., Rho Ventures, Braemar Energy Ventures and Cycle Capital. According to Bill Day, Valero’s executive director of media relations, the investment in Enerkem is one of a series of investments his company has made in renewable fuels and biofuels companies. “Valero itself does not do a lot of research or development into renewable fuels,” he says. “We prefer to do investments in companies that are doing that research, or in some cases, just buy the research itself.” He says Valero thinks Enerkem’s project is one of the more viable and practical of the emerging biofuel technologies. Day says Valero is very interested in integrating cellulosic technology into some of its 10 existing corn ethanol plants, and there are off-take possibilities for Valero and Enerkem as well. Credit Suisse acted as the agent for the financing round. The company also recently received $130 million in funding from the USDA and U.S. DOE to support the development of a plant in Pontotoc, Miss., expected to break ground in 2011. Construction is already underway on a 10 MMgy facility in Edmonton, Alberta.

Two Italian companies have formed a joint venture to build a biorefinery at a petr o ch e m i c a l plant in Italy.

Through the agreement, Eni, an oil and gas company, and Novamont, a bioplastics and biobased products developer, will work to build a “biorefinery integrated in the local area,” according to the companies.

The biorefinery will be refered to as a Green Centre and will be located at the Porto Torres petrochemcial plant owned by Eni. Eni will assist in the design, construction and manage10 | Biorefining Magazine | JUly 2011

ment of the facility that will eventually produce biomonomers, biolubricants, biofillers, biointermediates or additives, elastomers and finally bioplastics, all of which will be produced from renewable resources like agricultural or municipal solid wastes. The two companies hope to create “supply chain integration with the development of local crops” as well. The center will cost roughly $18 million to build and the intial plans will follow a three-step approach.

First, the joint venture will look to build facilities to produce biomonomers for bioplastics, biolubricants and additives. Second, a facility to build biofillers will be constructed, and third, greater capacity will be added.

Diamond Green Diesel LLC, a joint venture of Darling International Inc. and Valero Energy Corp., has secured financing for the construction of its renewable diesel plant in Norco, La. According to information released

by Darling, the financing will be provided internally by Valero. The proposed 137 MMgy facility will be located adjacent to an existing Valero oil refinery, says Bill Day, Valero’s executive director of media relations. Darling will provide the joint venture project with feedstock from its rendering process, while Valero will oversee construction of the plant, Day adds. Construction on the facility is expected to commence later this year and be complete by the beginning of 2013. The joint venture originally sought a loan guarantee from the U.S. DOE to support the project. “That [process] was so burdensome and so slow and it ended up being so costly that the joint venture—Darling and Valero—decided to withdraw the application for the DOE loan guarantee,” he says. Instead, Valero will provide funding for the project. “It’s just easier and quicker that way.”

Biorefinery developer ZeaChem Inc. announced in June a binding multiyear joint development agreement with Procter & Gamble to accelerate development of ZeaChem’s product platform beyond C2 through commercialization of drop-in biobased chemicals and other products. ZeaChem’s process uses renewable feedstocks such as poplar trees and agricultural

residues to produce the highest yield and lowest carbon emissions of any known biorefining technology, the company says. It has begun fermentation work on this new product platform using the same processes and equipment that the company used to prove and scale up its C2 product platform. The new platform also enables ZeaChem to ultimately deploy its technology for the production of other biobased chemicals as well as drop-in fuels. The two companies will utilize ZeaChem’s existing infrastructure at its lab in Menlo Park, Calif., pilot facility at Hazen Research in Golden, Colo., and demonstration-scale biorefinery in Boardman, Ore. Together, P&G and ZeaChem will research, develop and demonstrate, scale-up, and commercialize this new product platform.

Over the past few years, Novozymes has formed research partnerships to develop biomassto-plastics, biomassto-glycols and now, through early-stage collaboration, the company will be entering the biomass-to-food additives sector. Meihua Group, an agricultural processor based in China, has signed a framework agreement with Novozymes to develop an enzymatic process to turn ag residue such as corn stover and cotton stalks into sugar for use in food additives. The idea is to follow the enzymatic process created by Novozymes with a fermentation step that would allow Meihua to produce amino acids such as glutamic acid, lysine or threonine, all of which are used as food enhancers and nutritional supplements.

Novozymes says there are still many unanswered questions about the partnership, but notes that “as the sugar fermentation strains used for amino acid production and ethanol production will request different sugar quality, purity and concentration…we expect different innovation is needed for the sugar production process for amino acid from biomass.”

Novozymes says China is the world’s largest

business briefs |

An international collaboration of nine partners from seven countries has formed The BIOfuel Algae Technologies Project (BIOFAT) that focuses on the feasibility of producing ethanol, biodiesel and other bioproducts derived from microalgae on a commercial scale. Abengoa Bioenergia Nuevas Tecnologias, a subsidiary of Abengoa Bioenergy, will lead the transnational consortium drawn from the academic, industrial and public sectors for the project. ABNT centralizes its research and development activities and is focused on the production and development of biofuels for transport, including ethanol and biodiesel from biomass feedstock. Among others, the project includes the University of Florence (Italy), A4F-AlgaFuel (Portugal), Ben-Gurion University (Israel), Fotosintetica and Microbiologica (Italy), Evodos (Netherlands), AlgoSource Technologies (France), IN SRL (Italy) and Hart Energy. Specifically, BIOFAT aims to maximize the benefits from algae while minimizing environmental impacts. The development team will train on existing prototypes in Israel, Portugal and Italy, and then scale up the process to a 10-hectare (24.7 acres) demonstration plant—called an “algorefinery”—to be located in Spain. The process will begin with strain selection and proceed to biological optimization of the culture media, monitored algae cultivation, low energy harvesting and technology integration. The project, expected to last four years, will produce approximately 900 tons of algae annually. Funding was provided by the European Commission’s Seventh Framework Program, the EU’s primary instrument for funding research and demonstration activities from 2007 through 2013.

Australia-based mining company MBD

PHOTO: ORIGINOIL

consumer of monosodium glutamate (MSG), using roughly 1.8 million tons per year of the flavor enhancer. The Meihua group is worth $800 million, employs 13,000 and already accounts for one-fifth of the MSG market in China. The country is developing so fast, says Meng Qingshan, chairman of Meihua Group, that the demand for food has outpaced the increase in food supplies.

Algae Mover OriginOil CEO Riggs Eckelberry says its system on order from MBD is expected to process 300 gallons of algae culture a minute.

Energy Ltd. has placed a firm order for a largescale algae extraction system from Californiabased OriginOil Inc. to be installed at its coal power station in Tarong, Australia. The order

by MBD Energy follows recent collaborative trials of OriginOil’s equipment focused on optimizing capacity to handle large volumes of algae on a continuous basis. The system on order, OriginOil’s Single Step Extraction Technology, is expected to process up to 1,100 liters (300 gallons) per minute of algae culture continuously, which would be enough to process the daily harvest at MBD’s one-hectare site at Queensland’s Tarong power station, according to OriginOil CEO Riggs Eckelberry. Once the large-scale system is installed, the mobile unit will be deployed at future power station pilot sites. The 1 hectare facility will sequester the power station’s carbon dioxide-laden flue gas to feed a Bio-CCS (Biobased Carbon Capture and Storage) Algal Synthesizer. It will serve as proof of concept for a larger, second-stage facility of up to 80 hectares (197 acres) before being progressively scaled up to a larger thirdstage facility.

Waste Management Inc. has forged a strategic investment in Delaware-based Agnion Energy Inc. to advance Agnion’s thermochemical gasification technology. Kleiner Perkins Caufield Byers, Munich Venture Partners and Wellington Partners joined Waste Management in the investment. Agnion employs an indirect (or allothermal) gasification process that can convert solid biomass feedstock into rich hydrogen and carbon monoxide syngas ideally

suited for combined heat and power applications. It can further be converted into liquids, hydrogen and methanol dimethyl ether and/or a substitute natural gas. With a pilot plant already demonstrating the viability of its process, Agnion is currently building a commercial facility in Grassau, Germany, to further validate its technology platform. Tim Cesarek, managing director of Organic Growth for Waste Management, says the investment in Agnion presents an opportunity for Waste Management to evolve with Agnion’s novel technology as it matures and identify North American sites where Agnion’s gasification units could be deployed.

Toronto-based GreenField Ethanol Inc. has announced the launch of G2 BioChem, a collaborative partnership that will acquire, validate and commercialize GreenField’s cellulosic ethanol production technology. According to information released by GreenField, G2 BioChem is backed by a group of partners and collaborators that includes Andritz AG and Novozymes. GreenField Vice President of Business Development Barry Wortzman adds that the new company has a limited partnership structure, with one general partner and several limited partners. The technology developed by GreenField involves enzymatic hydrolysis and fermentation. “The core of our technology is our conditioning and pretreatment,” Wortzman says. “We have designed a very flexible process technology that can process at the front end a variety of different feedstocks, and has the capability to generate what I call very clean, discrete strains of C5 and C6 sugars from the hemicelluloses and cellulose material, respectively. What that means in simple terms is you have a very good environment for your enzymes and your fermenting yeasts to operate.”

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JUly 2011 | Biorefining Magazine | 11

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Biorefining News & Trends

Grim Reaper The House of Representatives Agricultural Appropriations Subcommittee moved to eliminate FY 2012 funding for the USDA’s Biomass Crop Assistance Program, which, by all accounts, will hurt development of advanced biofuels.

Untimely Death for BCAP?

House subcommittee moves to eliminate funding for the Biomass Crop Assistance Program The Biomass Crop Assistance Program, commonly known as BCAP, was originally authorized by the 2008 Farm Bill. Although the program experienced a rocky start, those who advocate for the biorefining industry agree that the program is integral to overcoming the chicken-and-egg scenario associated with biomass production for second-generation biofuel and biochemical refineries.

Michael McAdams, president of the Advanced Biofuels Association, stresses that the if we want to bring new energy crops into commercial production, it is important that programs like BCAP are funded by Congress.

Although initial implementation of the program did not go as smoothly as most hoped, it’s certainly possible to improve the program.

“I’d rather see us fix the problems than jettison the whole program,” McAdams says. “Quite frankly, I think this is part of the overall trend line to try to reduce government spending, and we need to be very thoughtful and surgical about it. If there were concerns about the way the existing program was being run, let’s address those concerns. The fundamental premise of the program is very important, and it’s very sound.”

McAdams stresses he is hopeful that lawmakers will find a way to restructure the pro12 | Biorefining Magazine | JUly 2011

gram so that it delivers its original intent. “I don’t think anybody argues that we want our government to economically and efficiently administer programs that … are in the best interests of our nation,” he says. “If there are fundamental issues that are part of this past program, let’s revisit those issues and figure out how to fix them.”

According to Matt Carr, policy director for the Industrial & Environmental Section of the Biotechnology Industry Organization, the biomass industry has made great strides in developing purpose-grown energy crops. “The challenge is to provide farmers with the structure that will give them confidence to adopt these new and tested feedstocks, and that’s what [BCAP] does,” he says.

Most of the new bioenergy feedstocks that are being developed are perennial crops, Carr says. “They take a number of years to establish, and during that time a farmer will not have the benefit of revenue from sale of the biomass,” he adds. “What the BCAP program does is help the farmers with payments for crop establishment, to help prepare the fields for planting and then also to cover the period before the first sale of biomass.”

Andy Olsen, senior policy advocate at the Environmental Law & Policy Center,

notes that a primary problem with the BCAP program revolves around how its two parts were implemented. Rather than implementing the portion of the program that helps farmers establish biomass crops first, Olsen says that the USDA Forest Service first moved to implement the portion of the program that provides matching payments to biomass producers. “It’s very important to get the establishment program going,” he says. “That’s the priority. By just funding the existing buyers of the biomass, all they really did was to make a large subsidy to those industries,” which led to complaints from industry sectors that were negatively impacted.

That said, Olsen says it’s important to remember this is the first version of the BCAP program and that the knowledge and experiences that have been gained should be used to improve upon the program in the next Farm Bill. In order for that to happen, those in the biomass and biorefining industries need to speak up and stress to their congressional representatives how important the program is.

McAdams agrees. “I think it’s incumbent upon the industry to redouble our efforts and make the case on how important this program is to the future of cellulosic and advance biofuels,” he says. —Erin Voegele

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A Successful Startup Agrivida may be the frontrunner for a new enzymatic approach to breaking down cellulose, but its story is more of a reminder that, in the biorefining industry, not all good ideas go to waste. Formed by a couple of chemical engineers at Massachusetts Institute of Technology nearly six years ago, the company has developed an innovative approach to genetically modify plants such as corn to house the same enzymes that will eventually be used to break down the biomass during cellulosic ethanol production.

While innovative ideas and approaches to push the advanced biofuels industry to real commercialization are plentiful in this space, in most instances those same ideas are eventually lost or forgotten. This is not the case with Agrivida.

The USDA’s Secretary Tom Vilsack can attest to that. Vilsack toured the Boston-based facility and listened to Mark Wong, CEO of Agrivida, who says the visit was “very exciting.”

But even the high of Vilsack’s visit shouldn’t cloud the true potential of this young company, Wong says. “At some point we’ll have to form a partnership with one of the big corn seed companies who have most the market share.”

Distinguished Guest USDA Secretary Tom Vilsack, right, And, that idea—along with the toured Agrivida’s facility in Boston and was welcomed by CEO theory that Agrivida could work with Mark Wong. the major enzyme players to develop a process involving biomass grown with an Novozymes—will also, according to Wong, inserted enzyme system followed by the in- not go to waste. “We are in discussions with clusion of an enzyme cocktail like that of those companies,” he says. —Luke Geiver

Proving Lignin’s Potential

duce up to 100 kilograms (220 A pilot plant in Canada extracts lignin from pounds) of black liquor lignin per day. The reLignin can be produced as a byproduct sulting byproduct will be supplied to research of the chemical pulping process. According to and development labs for evaluation.

According to Tom Browne, FPInnovanonprofit research institution FPInnovations, the potential market for lignin-based prod- tions’ program manager for the biorefinery, ucts is massive. The material can be used as the basic process employed by the demonstraa renewable replacement for many substances tion plant was actually employed commercially traditionally derived from petroleum, includ- in the 1940s. A revamped and improved teching fuels, resins, rubber additives and thermo- nology is now being employed in the demonstration plant. Browne notes that he cannot plastic blends.

In order to provide potential buyers of discuss the details of the technology improvelignin with samples, FPInnovations has part- ments due to pending patents, but does say the nered with the Centre for Research and Inno- process essentially precipitates lignin out of vation in the Bio Economy, Natural Resources black liquor, which is the spent cooking liquors Canada (RCAN) and AbitibiBowater to devel- that result from the kraft pulping process that op a black liquor and lignin evaluation center is used commonly in the pulp and paper inin Thunder Bay, Ontario, Canada. The core dustry.

Although the process employed by the of the center is a lignin demonstration plant that ties directly into the black liquor stream demonstration plant is specifically designed to of AbitibiBowater’s kraft pulp mill. When fully extract lignin from black liquor, other lignin operation, the demonstration plant will pro- extraction processes will likely be employed at

cellulosic biorefineries in the future. The work being done by FPInnovations and its partners is designed to help build markets and demand for lignin, which will also benefit other lignin producers.

Browne also notes that lignin extracted from different processes and different feedstocks will have different qualities. For example, the molecular weight distribution will differ and each lignin product will have its own type and level of impurities. “The idea is to match the lignin product to the end users’ needs,” Browne says. “There will be places where a cellulosic ethanol plant makes more sense and other places where you would prefer lignin from a chemical pulping mill.”

“The lignin evaluation plant provides us an opportunity to move wood-based products beyond traditional markets,” says Doug Murray, general manager of AbitibiBowater’s Thunder Bay Operations. “We feel very fortunate to be part of this initiative.” Frank Dottori, chair of CRIBE, adds that whenever you create alternatives to fossil fuels, you create opportunities that will span generations.

—Erin Voegele JUly 2011 | Biorefining Magazine | 13

PHOTO: AGRIVIDA

Agrivida’s enzyme approach could forever change cellulosic ethanol

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Jumpstarting a Biojet Industry in the Northwest A new study outlines an approach for success Sustainable Aviation Fuels Northwest released the results of a 10-month study on the potential for biobased aviation fuel production in the Northwest in May. The study, which explores the feasibility, challenges and opportunities for creating a biojet industry in the Pacific Northwest, was completed in partnership with Boeing, Alaska Airlines, Portland International Airport, Seattle-Tacoma International Airport, Spokane International Airport and Washington State University.

According to the study, in order to make a sustainable biofuels industry a reality in the region, an integrated approach is needed. This includes the use of a variety of diverse feedstocks and technology pathways, including oilseeds, forest residues, solid waste and algae. The study also examined all phases of aviation biofuel development, from biomass production and harvesting to refining, transport, infrastructure and actual use by airlines.

Results of the study highlight the importance of developing renewable alternatives for the aviation industry. While other energy sectors, such as ground transportation, heat and power, have various fuel options they can pursue, the study points out that the aviation industry has the clearest need for liquid, energy-dense fuels.

According to the authors, the aviation industry is a critical sector of our economy and should take priority for biofuel development. The SAFN stakeholders point out that our nation needs a strong aviation industry for economic, cultural and security reasons.

As demand for sustainable alternative energy grows, the study notes that we will have to make strategic choices regarding the most effective use for biomass feedstocks. According to the study, the aviation industry enjoys many structural advantages that make it an attractive option for biobased fuels. This includes a relatively small number of locations that distribute

Will Cheap Talk on Big Oil Ever Change?

attempt might signal a trend that appears to be unbreakable, A case against two oil speculators for driving the oil and gas industry’s ability up fuel prices to avoid nearly every economic For the major U.S. oil and gas companies, hurdle thrown its way. While there might be sevthe elimination of $4 billion in tax deductions eral lessons to learn from the failed attempt to is nothing. Given the record profits many of end those tax subsidies, including the apparent the large companies have reported in 2011, fact that oil lobbies continue to be powerful, one and, depending on how one does the math, the has to remember that the cost of oil isn’t always elimination of tax provisions or subsidies that caused solely by those companies making record allow the companies to pay nothing on drilling profits on the commodity. expenses incurred on federal land, which also The Commodity Futures Trading Commisallows companies to claim deductions for sion is currently suing two crude oil traders for drilling in foreign countries, would only make manipulating oil prices. The CFTC alleges that less than a 1 percent impact on their bottom James Dyer of Oklahoma’s Parnon Energy and lines. But as President Obama said, this is $4 Nick Wildgoose of Europe-based Arcadia Enbillion of taxpayer money that is being given to ergy, manipulated oil prices in 2008 to earn $50 these companies when they are making record million for themselves. “First,” the CFTC exprofits, and those same taxpayers are paying plains in its statement on the lawsuit, “they purnearly record prices at the pump as consumers. chased large quantities of physical WTI crude The obvious answer would be to end those oil…even though they did not have a commertax subsidies and provisions, and some mem- cial need for crude oil.” The CFTC says they bers of Congress tried—with an emphasis on purchased the oil “pursuant to dominate and tried. A bill voted on in the Senate to end those control the already tight supply… to manipulate subsidies failed. The implications of the failed the price of WTI upward and to profit from the 14 | Biorefining Magazine | JUly 2011

the fuel, which creates concentrated demand and an existing fuel delivery structure. The authors of the study point out that this facilitates the development of economically viable, advanced biofuel supply chains.

The study also points out that supportive government policies will be critical to jumpstarting the industry and attracting investment.

While the SAFN does not advocate for permanent government financing, the authors note that focused public investments and policy support will be needed to create an economically competitive basis for the industry.

“The course is clear that aviation biofuels are key to the future of sustainable air travel,” says Lawrence J. Krauter, CEO, Spokane International Airport. “We can no longer base our future on imported petroleum, especially if the United States wants to remain an aviation leader.

The SAFN study proves domestic biofuels are feasible and offers an economic opportunity for us to remain competitive as an industry and move toward a sustainable, domestic fuel supply.” —Erin Voegele corresponding increase in value of their WTI futures and options contracts.”

Next, after the WTI reached artificial highs, the CFTC says, the accused sold short on their derivatives, and sold their physical holdings, all in one day to drive the price of their short position derivates back down. While the case is still pending and history shows that manipulation cases are tough to prove, this might only be the first of many similar cases brought against fraudulent oil speculators who unlawfully drive up the price we pay at the pump. Obama has already set up a task force with one job, “rooting cases of manipulation or fraud in the oil markets that might affect gas prices,” including, the president notes, “any illegal activity by traders or speculators.”

Already, Sen. Bill Nelson, D-Fla., has voiced his concern about the presence of big oil subsidies, calling attention back to the original “Close Big Oil Tax Loopholes Act.” Unfortunately, in the case of Big Oil, talk is always cheap, but more is expected of words uttered from Obama’s lips. “Instead of subsidizing yesterday’s energy sources, we need to invest in tomorrow’s,” said the president during the same speech in which he called for an end to Big Oil’s tax subsidies. —Luke Geiver

PHOTO: QUARTZY

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Lab Partners Adam Regelmann, left, and Jayant Kulkami co-founded Quartzy to help labs with all their inventory needs.

A Tool Every Lab Should Have

Labs can be disorganized and slow to progress, so Quartzy may be the answer Adam Regelmann has been in the lab since he was in high school and now, with a doctorate in immunology and a completed residency in internal medicine, he can confidently say that labs can be a “pretty disorganized” place to work. To organize those labs and help with the productivity of the researchers, he says he decided to create a comprehensive tool to alleviate issues of knowing where certain inventory was, how to use it, or how to order equipment if it wasn’t around. He created Quartzy, an online platform that acts as

database, an ordering system and just about anything else a lab manager or scientist would want.

To date, Quartzy has had hundreds of thousands of inventory supplies uploaded by participating scientists (currently near 5,000), has won Innovator of the Year awards and has been covered by the New York Times. “What we’ve found is actually quite interesting,” he says. “People in completely different spaces are using this site.” The site he says is intended for the life sciences labs all over the country,

Why Good Technology Needs Great Relationships

BP, Davy use others to commercialize their FT process Having the intellectual property, or in some cases even a living, breathing piece of innovative and proven process technology, is great, but having the kinds of relationships that will allow others to learn, test or trust that technology is even better.

As an example, imagine for a moment that an unnamed company came out with a new, proven Fischer Tropsch process that has been tested for the past two years at a

facility in Alaska. To commercialize that process, to license out that technology to other users, that company might have to hit the phones and the technology showcase circuit to spread the word. Or, if that company had the clout, and the means to create the right relationships, it could just have other companies spread the word for them. That’s exactly what BP and Davy Process Technologies just did with their FT process, proving that

but even places like the Metropolitan Museum of Art use it to keep track of inventory of chemicals used for conservation. The software is free to scientists and always will be, he says, and already people in the biotechnology sector are using it. He hopes others working on the next great bug or advanced catalysis system will check it out, Regelmann says. Why not, considering Quartzy can “make things faster for scientists” and “put a method to the madness.” —Luke Geiver

good technology gets better with the right partners.

BP signed on with three engineering, procurement and construction contractors, CB&I Lummus UK Ltd., Jacobs Engineering Group Inc. and the Shaw Group, to “seek deployment opportunities” for the process, BP says of the collaborations. Mark Howard, BP’s vice president for conversion technology, says “their involvement will help with the early identification and evaluation of opportunities…to support potential licensees.”

This arrangement serves as a reminder that a great technology is largely about the people behind it. —Luke Geiver JUly 2011 | Biorefining Magazine | 15

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PHOTO: JOINT BIOENERGY INSTITUTE

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Pump up the Jam Andrila Mukhopadhyay, a researcher at UC-Berkeley’s Joint BioEnergy Institute, says efflux pumps can allow higher yields in advanced biofuels production.

Production vs. Survival Problem

Joint BioEnergy Institute researchers make designer bugs even better What can common household cleaners like Pinesol tell us about wonder bugs and microbes used to produce advanced biofuels? Andrila Mukhopadhyay knows, and with help from her team at the University of California Berkeley’s Joint BioEnergy Institute, she has an entire library of data to tell us how. For the past two and a half years she has been studying the effects of antimicrobial-like compounds and their effect on biofuel-producing microbes that are, in most cases, hindered by the same compounds they produce. “There are two things that act as impediments when you are trying to make biofuels,” she says.

The first hurdle for the microbes stems from the compounds (which are actually used in both biojet fuel and Pinesol) and the level of toxicity in the compounds that can actually kill the microbes. The second, she says, is that even in the cases where a microbe produces nontoxic compounds suitable for advanced biofuels, those microbes are usually inhibited by the amount of compounds produced that cannot escape the microbial cells.

“With these [two impediments] in mind, a lot of people have started to study and find 16 | Biorefining Magazine | JUly 2011

tolerant bugs.” Instead of searching for the right bug, Mukhopadhyay decided to “cut to the chase” and simply search for the direct mechanism that makes a bug more tolerant and capable of reaching industrial-strength production levels. The answer, she found, was efflux pumps.

Efflux pumps are proteins in the cytoplasmic membrane whose main function is to transport, or pump, toxic substances out of the cell. “They are basically natural mechanisms that provide tolerance to antimicrobial compounds,” she says. To find the best available pumps, her team screened for a few good candidates and then searched for every similar sequenced species that might have similar qualities. “We put each pump against each other and created a culture competition to see which pump would win,” she says. Even though her team found the winning pumps they were looking for, she says they still were unsure of one thing: would a winning pump actually help to produce more molecules from the microbes?

“To our surprise,” she says, “our hypothesis was correct. Strains that can export these compounds actually make more.” So

what does this mean for advanced biofuel production? Mukhopadhyay says it means a lot, but the work isn’t done yet. Although the team now has a library of pumps that will provide a microbe with more tolerance to both toxic compounds and help to stop product inhibition by exporting more of the compounds out the cell, she says they still need to find a way to turn the pumps on or off in an industrial setting. At this point, the team simply supplied an additive to the mix of sugar that would start the pumps, but this she says is unfeasible in an industrial setting.

Overall, however, she says the discovery of the winning pumps will play a huge role in future strain development of designer bugs.

“Think about how industrial strength strains are tested,” she points out. The strains will be subjected to the rigors of the industrial setting over and over until the researchers know what the strain will do. If any of those conditions change, however, such as feedstock, temperature or anything else, the results can change. But by understanding the pump’s role, strain developers will have a better understanding of the microbe to begin with.

—Luke Geiver

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Another Reason to Root for Louisiana A cleantech grant could advance algae oil extraction The Louisiana Board of Regents believes in algae. The board has given a research clean technology grant to Louisiana State University’s Agricultural Center and Aquatic Energy, a Louisiana-based algae developer, based on its plans “to address one of the biggest bottlenecks in microalgae biofuels,” says Chandra Theegala, an associate professor at LSU’s AgCenter. The bottleneck she refers to is created by effective cell harvesting.

While the news is great for the AgCenter and Aquatic Energy, the grant highlights the popularity and belief in algae development.

This is because the winning proposals chosen by the Board of Regents went through a multistep process that included expert analysis from in- and out-of-state participants.

Algae didn’t win in this case because of a good feeling or a subjective thought; algae won because it matched the specifications for the winners well. Those specifications in-

clude scientific and technical merit, potential contribution to the state’s economic development, evidence of private sector involvement, and more.

The main goal of the work will be to utilize Aquatic Energy’s R&D facility and further advance its dewatering and extraction techniques, all in the hope (at least for the Board of Regents) that the work will have a positive economic impact on the state.

—Luke Geiver

Evidence of Indirect Land Use Change Lacking MSU study results testify to efficient agricultural practices According to the theory of indirect land use change, any acre of land used to produce biofuel feedstocks in the U.S. causes additional land in other parts of the world to be brought into agricultural production for food and feed.

A study undertaken by Michigan State University scientists Seungdo Kim and Bruce Dale has failed to find evidence to support this theory.

To complete the study, Dale says his team looked back at agricultural data to see if there was any evidence of indirect land use changes resulting from the buildup of the biofuels industry through 2007. “We found that there was not,” he says.

“What we did was look back in the patterns of trading corn and soybeans between the United States and our various grain trading partners, and their use of their own land,” Dale says. The team attempted to find statistical evidence that the U.S. biofuel industry actually caused indirect land use change. “We determined there was no such evidence,” Dale says. “If indirect land use change has actually occurred through 2007, you can’t tell it from the data.”

According to Dale, the results of the study can be seen as a commentary on how efficient U.S. agriculture has become. “The idea for indirect land use change is that new

Doesn’t Hold Water The theory of indirect land use change asserts that feedstock production for the U.S. biofuels industry pushes new agricultural land into production abroad, but a Michigan State University study has found no empirical evidence to support the theory.

acreage will get cleared to replace acreage that is devoted to biofuels production,” he says.

“That might happen, but the fact that you can’t observe it [in the data] means that agriculture is actually quite remarkably productive and it keeps increasing the output on the same amount of acreage.” In other words, it appears that demand for biofuels feedstock has been soaked by existing acreage and doesn’t require new acreage at current production levels. “I think that is kind of remarkable,” Dale says.

Dale’s study focused on first-generation biofuels. However, as second-generation bio-

fuel and biochemical production ramps up, it’s possible the same claims will be made about dedicated energy crops. “The data we used [in the study] is empirical data,” Dale says. “It’s evidence from the literature. Because secondgeneration biofuel volumes are so small, we wouldn’t expect them to have any indirect land use change impact yet.” In order to make comparable measurements for second-generation biofuels, the researchers would need to wait until production ramps up significantly and the relevant data is available. —Erin Voegele

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The

Down-select Debate Three years, six technologies, one consortium to pick the best—will it work?

By Luke Geiver

The down-select process means a lot to Tom Faust and John Holladay. They’ve spent many sleepless

nights over the past eight months thinking about it. They’ve felt extreme enthusiasm over the opportunity such a process could bring to the advanced biofuel industry, and they’ve been plagued with anxiety wondering about unintended consequences it might breed. And why not? Faust, the principal investigator and consortium director for the National Advanced Biofuels Consortium, and Holladay, the chief

Wheel of Fortune The down-select process is an evaluation of technology pathways to validate promising, commercially viable biorefining processes.

PHOTO: DENNIS SCHROEDER, NREL

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the guidelines of the program reveal, they attempt to select the best process strategies that can reach true commercialization and create a real impact in the shortest amount The Decider of time.

John Holladay, chief “I think that this technology officer for the National Advanced is a bold adventure,” Biofuels Consortium, says Bruce Gates, says the whole point of the down-select chair of the NABC’s process is to rapidly technology advisory move to piloting. council. Just look at the number of parties involved in the consortium, 17, and the companies that have agreed to work on the project: BP, Amyris Biotechnologies, Virent, UOP, NREL and several others. For Gates, the ability of the consortium members to work together and not “trip over each other’s feet” is quite a remarkable event. “If you look at the history about how advancements have been made in the area of fuels,” he says, “what you come up with is the word antitrust.”

Oil companies have been restrained from working together, he says, “so you don’t find a history of consortium.” For Gates, that is the storyline of the NABC, the act of several companies, institutions and national labs working together without competing. The NABC is certainly a testament to strong leadership and lofty goals, but the real impact of the program may still be too difficult to quantify.

The Chosen Six

The six process strategies the NABC has been working with are: fermentation of lignocellulosic sugars; catalytic conversion of lignocellulosic sugars; catalytic fast pyrolysis; hydropyrolysis; hydrothermal liquefaction; and syngas to distillates. To even be chosen as one of the six, Faust and Holladay say, speaks to the real promise of those approaches to make an impact in the next few years, but choosing the partners who will help the NABC answer the questions linked to each approach was not easy. “We got a lot of frequent flier miles in putting this together,” Faust says.

PHOTO: DENNIS SCHROEDER, NREL

technology officer for the NABC, have been given one of the most unprecedented tasks the industry has ever seen. Along with a team of experts compiled from nearly every major lab in the U.S., on Aug. 12 the NABC will do what it set out to do nearly eight months ago and pick from six of the most promising, innovative, and in some cases, the most commercially backed, and at least partially proven, technologies in existence.

The down-select process involves narrowing the field of choices, and Faust’s and Holladay’s duty of “picking” has nothing to do with favorites or any other form of subjectivity, Faust points out. Instead, it’s based on an intricate system and complex set of criteria that range from fuel quality to life-cycle analysis to economic viability, which Faust and his team worked on for nearly five months before the objectives of the NABC were ever even announced.

Their objective is to down-select, based on the research efforts that will answer the questions posed by that complex system and criteria, which of the six advanced biofuel process strategies is the best. At least, as

Two Sides While the down-select process is about methodically identifying the most promising biorefining pathways, there is a concern that companies employing nonselected technologies may be hit hard financially as a result.

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PHOTO: DENNIS SCHROEDER, NREL

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In addition to several face-to-face meetings with the potential partners on the project, meetings meant to feel out the willingness of the partners and their ability to contribute to the program, Faust and his team also performed a thorough assessment of a lot of factors. “People make some pretty ridiculous claims, and if there isn’t anything substantiated, then it calls into question the validity of those claims,” he says. So, one of those factors that helped the team to decipher which process strategies would make the initial six was based on the amount of available, yet credible, information on those particular processes.

In addition to the available information, the team would also identify the lead entities working on a given process strategy and gauge their willingness to share their intellectual property and other information for the benefit of the program. “We looked at environmental impact as well,” Faust adds, noting that every strategy will achieve at least a 50 percent greenhouse gas reduction when compared to petroleum-based gasoline. And on top of all those factors, they also tried to determine the scalability of each process, particularly in the refinery

industry. “We wanted to leverage the existing time spent speaking with each possible refinery infrastructure,” he explains. “That partner in the project, Faust spent five full is one of the challenges to rapid scale-up. months creating an operations strategy and In the freeze up of the capital markets… research approach that each project team we wanted to look at technologies that could potentially maximize that leverage.”

Not everyone who Faust visited with, however, made the cut.

Some of the candidates or companies that wanted to participate in the consortium were not chosen. “A lot of people ask us to give a prioritization of the factors,” he says, “but we really intentionally didn’t do so. We didn’t want to artificially weight one factor,” adding that, “we thought it was really the tandem of all those considerTaking Control If a nonprofit consortium such as NABC didn’t down-select these viable biorefining pathways, who else would—the oil companies? The ations.”

NABC says no, the oil companies would not do a technology shake-down as Along with all the thoroughly as is needed.

JUly 2011 | Biorefining Magazine | 25

PHOTO: DENNIS SCHROEDER, NREL

Commercially Ready The selection process aims to identify commercial breakthroughs—those technologies ready for validation and scale-up—rather than identifying scientific breakthroughs.

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PROCESS

would follow in the quest to learn everything there is to know about pyrolysis or syngas to distillates. “You’re never 100 percent sure about the decisions that you made,” he says about the early stages of the project, but he adds that, so far, “the data coming in shows we did.”

It should come as no surprise that Faust and his team want more time and more money to fully alleviate all of their scientific concerns related to the six process strategies. But, because the original proposal to the U.S. DOE stated that after one year, the team would announce from one to four process strategies that would be pursued further (and the others would be left behind), the plan is to make the tough decision on Aug. 12. And to say it is a tough decision might be an understatement. John Holladay says they have followed a very aggressive schedule up to this point, but, the down-select “will set the scope and focus of our work for the next two years.”

PHOTO: DENNIS SCHROEDER, NREL

The Importance of Aug. 12

Deadline The NABC has an Aug. 12 deadline to decide which of the six processes are ready to move into the commercial space, and by extension, which are not.

For the past few months, Holladay hasn’t been doing any real research on the processes, but instead, he’s been hammering out the criteria, along with help from

the other members of the leadership team, that will be used to go from six to four or three, or whatever number of processes they settle on. And that, along with those

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PROCESS |

unintended consequences Holladay and Faust mention might happen from the down-select process, is what keeps them up at night—and what makes the real impact of this whole project nearly impossible to predict. “I’d like to make a point on the down-select,” Holladay says. “This is not so much a grade of the process strategy as being promising or less promising. It is really to get some technology to move rapidly towards piloting.

It’s really,” he says, “for a blend of both. What is the opportunity that each of these strategies have for a short-term piloting basis.”

That is the goal, as Faust puts it, to take one or more advanced biofuels or drop-in hydrocarbons and build a pilotready program in three years, and after those three years send out a “son or daughter” of the NABC in a semicomplete design package that can give companies like ICM a high level of confidence that the numbers in the lab can be duplicated on a large scale. Of course, they say, that is the great part of this consortium, but those that don’t make the down-select are what they worry about. “I’m really concerned that given this one year, we are going to down-select some technologies and risk putting a bad label on them.” A label, Faust believes, could wrongly make it to the investment community and significantly impede any financial progress a company based upon a nonselected technology company may have been making.

The whole consortium might be different if it were similar to other consortiums based on “scientific breakthroughs,” but in this case the NABC is about “commercial breakthroughs.”

Because of the commercial nature of the work, Faust says each process team could have spent much more time tweaking and fine-tuning each strategy, but he adds this was not the point of the work. In August, the NABC team, the U.S. DOE and the rest of the country will be two years closer to having an exhaustively researched process strategy to produce a replacement for fossil-based fuel. While the three years might fly by for Faust, Holladay and the rest of the team, there is a lot to look forward to in August, and even beyond that. For one, to have the efforts in this area is a big win for the industry, as Gates explains.

“The impression I have,” he says, “is that if you just left it up to the large, established fuel companies, they might not be putting the resources in to really shake it out and realistically assess in a short time what we can do.” It might be hard to argue that considering the five Big Oil companies posted all-time record profits in the first quarter of this year.

And although not every process strategy backer will be happy about the down-select process, as Holladay infers, it doesn’t mean an end. “Some really promising and important information is being gleaned” from all the process strategies, “and it will give people a chance to build off that.”

Author: Luke Geiver Associate Editor, Biorefining Magazine (701) 738-4944 lgeiver@bbiinternational.com

JUly 2011 | Biorefining Magazine | 27

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international

Renewable Ready Holland’s chemical industry represents nearly $70 billion a year in revenue, and the established refining infrastructure is an open, ready gateway to biobased fuels and chemicals production.

30 | Biorefining Magazine | JUly 2011

international |

Creating a

Biobased Economy Fast-tracking bioenergy development in Holland Story and Photos by Erin Voegele

Due in part to its strong chemical industry and logistical advantages, Holland is uniquely suited to become a central biorefining hub in Europe. Ac-

cording to Renee Bergkamp, director general of innovation at the country’s Ministry of Economic Affairs-Agriculture and Innovation, Holland’s chemistry sector created €48 billion ($69 billion) in revenue during 2010. “The chemical industry represents nearly 20 percent of our exports,” she says. When coupled with the logisti-

JUly 2011 | Biorefining Magazine | 31

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Transportation Hub Holland is home to the Port of Rotterdam, Europe’s largest port.

cal advantages of being home to Europe’s first and fourth largest ports and the fact that both public and private entities within the region are diligently working to create a biobased economy, it is clear that the Netherlands offers an attractive opportunity for biorefining companies looking to develop projects in Europe.

Building Bio-opportunities Renee Bergkamp, director general of innovation at Holland’s Ministry of Economic Affairs, Agriculture and Innovation, speaks about the opportunities her country’s biobased economy presents.

32 | Biorefining Magazine | JUly 2011

According to Bergkamp, the chemical and biobased industries are already an important driver of research and development activities within Netherlands. “This is important because we want to be a knowledge economy,” she says. “It’s a sector that is the core of Holland and we know it is a knowledge power. It’s working on a sustainable

future and ...[and putting] that into successful business…Knowledge is nice, but you have to make business of it.”

Bas Pulles, commissioner of the Netherlands Foreign Investment Agency, adds that his country already boasts the 16th largest economy in the world, which is particularly notable considering the relatively

Service Economy Despite the chemical sector creating nearly $70 billion in Netherlands, the economy is largely service-based compared to the rest of Europe.

international |

Controlling Traffic Employees at the Port of Rotterdam, Europe’s largest port, guide traffic.

small geographic area it occupies. Furthermore, Pulles stresses that a significant portion of Holland’s economic base has been built on trade and investment. This existing economic base should help drive development of the region’s biobased economy.

According to Pulles, there are several reasons Netherlands represents an attractive opportunity for foreign investors, including the regions, strategic location and infrastructure. The country’s ports, airports and IT infrastructure allow companies that establish operations in Holland to service all areas of Europe, he says. In fact, 60 percent of all European distribution centers are located in Holland, he adds. Regarding logistics, Holland is home to the Port of Rotterdam, which is the largest in Europe, and the Port of Amsterdam, Europe’s fourth largest port.

While those logistical attributes may seem to imply that Holland has an economic base that is predominantly manufacturing oriented, Pulles says that is not the case.

Rather, he notes that Holland’s economy has a strong service base rather than the strong manufacturing base that is found in many

other parts of Europe. This means that the country features many highly skilled and educated workers. The existing chemical industry alone employs approximately 65,000 highly educated workers, Bergkamp says.

There are also relatively few hurdles that foreign investors must overcome in order to establish operations in Netherlands, Pulles says, adding tax incentives have been specifically developed to benefit foreign investors that set up operations in Holland.

Tax incentives have also been developed to make the region attractive to skilled workers from other countries. “We felt there was a shortage of highly-skilled labor in the region,” Pulles says. To help attract more skilled workers to the country, there is a policy that allows these workers to negotiate income tax incentives.

According to Cornelis Mijnders, manager of Holland’s National Program for the Bio-Based Economy, the main drivers of his country’s biobased economy are currently innovation, economic development and environmental policy. One way the government is working to support innovation in the sector is through the develop-

ment of open-source pilot plants, which are being made available to a wide range of companies and projects within the country.

Mijnders estimates that those pilot plants will be in use by June.

In addition to countrywide programs to support development of Holland’s biobased economy, regional initiatives are also underway. According to Eisse Luitjens, manager of Ontwikkeling & Innovatie, a development agency that works in the northern region of Netherlands, his organization supports its local biobased economy through both venture capital investments and manpower. He notes that his organization has developed a three-part roadmap to guide future investments in the biobased economy. One portion of the roadmap focuses specifically on the development of sustainable feedstocks for the chemical industry, and another focuses on the development of biopolymers.

Fuels, Plastics and Chemicals

The northern region of Netherlands already boasts the world’s first commercial-scale biomethanol refinery, which has JUly 2011 | Biorefining Magazine | 33

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international

Building Bioplastics Avantium Chief Technology Officer Frank Roerink speaks about his company’s catalysis technology to produce polyethylene-furanoate, or PEF, bioplastics.

been developed by BioMCN. The facility currently produces 200,000 metric tons of biomethanol annually using waste glycerin from biodiesel plants as feedstock. BioMCN is also developing a new plant that

would produce the same biobased chemical from woody biomass.

BioMCN’s existing production capacity has been retrofitted into an existing fossilbased methanol plant. The company purchased two methanol plants four years ago.

The previously idle plants originally produced methanol from natural gas. To date, a portion of one plant has been retrofitted to convert glycerin into biobased methanol.

According to BioMCN CEO Rob Voncken, the facility is being retrofitted in two phases.

Once phase two is complete in 2013, the plant will be capable of producing 400,000 metric tons of biomethanol annually. The second plant will likely remain idle, he says.

As completion of phase two of the retrofit continues, BioMCN is working with a consortium of companies and sponsor organizations to develop Woodspirit, a proposed 900,000 metric-ton-per-year woodto-methanol plant. The new facility, which would be located adjacent to the company’s existing operations, would take in 1.5 million tons of wet wood feedstock per year.

The feedstock would be dried and converted into a syngas, which would be further catalyzed into biomethanol.

According to Voncken, BioMCN has

Technological Improvement Purac CEO Rop Zoetemeyer speaks about his company’s work to develop a gypsumfree lactic acid manufacturing process.

34 | Biorefining Magazine | JUly 2011

Algae Extraction An Ingrepro Renewables employee holds algae separated from the solution using an existing wastewater treatment process.

applied for a subsidy from the European Union that would help support development of the plant. He explains that the EU has committed to subsidize two renewable energy projects in each of its member countries. A total of three projects have been nominated for the subsidy in Holland.

Voncken says a final decision is expected to be handed down in May 2012. He also notes that seven companies have already approached BioMCN to express interest in supplying feedstock to the proposed plant.

BioMCN aims to have the project operation by 2015.

While BioMCN continues development its newest project, Amsterdam-based Avantium is developing a solution to produce biobased plastics using existing infrastructure. The catalyst technology developer spun off from Shell Oil Co. in 2000 and began transitioning into biobased material development in 2005. According to Frank Roerink, Avantium chief technology officer the company now focuses nearly 50 percent of its efforts on the biobased industry.

Avantium is currently developing a biobased plastic material called polyethylene-furanoate (PEF), which is an analog

international |

to traditional fossil-based polyethyleneterephthalate (PET). The 100 percent biobased and recyclable PEF material is designed to be produced in existing infrastructure. “You have to have a production process that can compete with today’s supply chain,” Roerink says, noting that today’s supply chain is built on using chemical catalysis to produce fuels and chemical building blocks. According to Roerink, Avantium has developed a method to economically convert biomass into plastic using existing industrial assets.

“We’ve always worked [under] three simple concepts,” Roerink explains. “Our process has to compete on price, it has to compete on performance and it has to have a better environmental footprint.”

Avantium is continuing to optimize its process to further enhance certain characteristics of its biobased plastic, including color, molecular weight and bottle design. A pilot plant is currently under development and is expected to become operational later

The EU has committed to subsidize two renew­able energy projects in each of its member countries. this year. The facility will focus on further product optimization as well as the development of product applications, Roerink says, noting that commercial production could begin as soon as 2015.

Another Holland-based company, Purac, is working to develop biobased plastics.

The company’s technology converts biomass into lactic acid via a fermentation and purification process. The resulting plastic material, polylactic acid (PLA), can be used in a variety of application processes. According to Purac CEO Rop Zoetemeyer, his company is working improve its process by developing a gypsum-free lactic acid manufacturing process. The new process will not

only be simplified, Zoetemeyer notes it will also feature a lower environmental impact.

Algae Research

While most algae projects seem to be associated with warm, sunny locations, such as the American Southwest, several companies in the Netherlands are working to develop regionally adaptable algae production and processing technologies.

A pilot-scale project in Olgeren, Holland, is investigating the use of algae cultivation as a method to remove nutrients for wastewater. The project, under development by Ingrepro Renewables, is housed at Waterstromen bv, a water treatment facility.

The pilot-scale facility currently consists of three 300-square-meter open ponds.

According to Marcel Oogink, Ingrepro’s managing director of renewables, the three ponds allow his company to evaluate the impact of production variables, such as pH level and nutrients, on algae yields.

“The algae is a development project,

Advancing Algae Ingrepro Renewables operates a pilot-scale algae project in Olgeren, Holland, at the Waterstromen bv water treatment plant.

JUly 2011 | Biorefining Magazine | 35

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international

Commercial Success BioMCN currently has the capacity to produce 200,000 metric tons of biobased methanol annually from glycerin feedstock.

and we are testing several effluents from [the water treatment process]… we can also mix several streams with each other and then send it to the ponds,” Oogink says. The plant produces 5 to 10 tons of algae per year, he says.

To harvest the algae, Ingrepro Renewables uses a system that has traditionally been used in other wastewater treatment applications. A company representative explains that the system creates tiny air bubbles in the algae solution that rise to the surface, carrying the algae cells with them. The algae is then skimmed off the surface.

According to Oogink, Ingrepro Renewables is also developing an algae encapsulation technology.

Information supplied by the company shows that wastewater would flow around the encapsulated algae beads, allowing for the efficient absorption of nutrients. Since the algae is encapsulated in beads, Ingrepro says the process to dewater the algae would be simplified.

FeyeCon, another company located in Holland, has developed several spin-off operations that are active in the algae sector. One of

FeyeCon’s areas of specialty is using high-pressure, supercritical carbon dioxide to separate valuable components from biomass materials. For example, the technology can be used to extract valuable oils from algae.

According to FeyeCon’s CEO Maaike van Roosmalen, there are several reasons why carbon dioxide is an attractive option for this separation process. It is nontoxic, odor free, colorless, nonflammable and cheap, she says.

Algae Biotech SL, one of FeyeCon’s various spin-offs, is focused on creating products and processes in the algae sector. According to the company, it aims to improve all aspects of downstream algae processing, including harvesting and extraction. CleanAlage SL, another operation established by FeyeCon, is specializing in developing affordable cultivation technologies for algae.

The company works closely with Algae Biotech and currently maintains algae cultivation facilities in Spain.

Author: Erin Voegele Associate Editor, Biorefining Magazine (701) 540-6986 evoegele@bbiinternational.com

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36 | Biorefining Magazine | JUly 2011

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industry

Driving Innovation Darwin Ortiz, a research scientist for Lignol Energy Corp., examines lignocellulosic biomass feedstock for conversion to cellulosic ethanol and ligninbased bioproducts at its 100,000-liter per year pilot-scale facility on the British Columbia Institute of Technology campus in Burnaby, British Columbia, Canada.

PHOTO: LIGNOL ENERGY CORP.

38 | Biorefining Magazine | JUly 2011

industry |

The Path to

Validation What it takes to prove the feasibility of a process technology By bryan sims & Luke geiver

Biorefining technology does not grow on trees but there is no shortage of innovative ways to turn biomass into an advanced biofuel or a biobased chemical. Some of those

technologies, like the mechanical pretreatment “cellunator� approach developed by EdeniQ Inc. or the delignification pretreatment process created by GE and now refined by

JUly 2011 | Biorefining Magazine | 39

industry

Lignol Energy Corp., have even sprouted into process technologies on the threshold of commercialization. We wanted to know what it took for those similar, but very different companies and process approaches to make it to where they are today. EdeniQ recently broke ground on a corn-to-cellulosic migration pilot plant, and Lignol has a pilot plant up and running already. So how did both companies turn their respective concepts into process approaches that not only pump out product, but pay off investors?

The short answer: research, testing and enough due diligence—the kind that runs into millions of dollars, so that in the end, as Ross MacLachlan, president and CEO of Lignol tells Biorefining Magazine, “you can be confident that your estimates are in the ballpark.” If you want the long answer from MacLachlan, however, you’d better clear your schedule because the journey to a feasible and validated process is a long one.

As he asked us, “Do you have a month and a half to talk about it?”

EdeniQ’s Version

EdeniQ’s California-based pilot facility cost roughly $25.5 million. Because the project was partially funded by the U.S. DOE’s Integrated Biorefinery Program for $20.5 million, Peter Kilner, vice president of business development for the company, says the project was split into two parts. The first phase ran a little over $3 million and allowed EdeniQ the ability to focus solely on the design of the project. The second stage was just over $22 million and will be all about the construction and operation of the facility.

The EdeniQ version of process validation represents what a biorefining company that has received some kind of loan guarantee or grant might look like. But regardless of whether a company does actually have that financial backing from the government, Kilner says there are several things a benchscale or pilot-scale ready technology user can learn from EdeniQ. “From my years of experience,” he says, “the important thing is to have a scale-up plant that is appropriate for your technology.” Make sure, he says,

40 | Biorefining Magazine | JUly 2011

that you can get representative information that can inform a proper scale-up to commercialization.

While that scaling process is taking place, however, he explained the importance of risk, of not being too small but not being too big.

“It is a trade-off,” he says. A technology needs to be big enough so that it can be representative, but it can’t get too big at the risk of unexpected problems that will be too costly to deal with and fix.

To make the leap from the phase one design stage to the build-out of the pilot facility, EdeniQ went through a process Kilner says is important for every company.

In addition to constant process checks from the in-house engineering team, Poised For Expansion EdeniQ is expanding its existing pilot plant to an integrated 2-ton-per-day cellulosic ethanol biorefinery in Visalia, Calif. the company brought in and partnered with an outside firm, Logos ment on a similar process, then a company Technologies Inc. “There was an extra ef- like EdeniQ can negotiate a deal that can fort to have an outside engineering firm,” accelerate commercialization. Partnering he says, adding that it is “always good to isn’t the only strategy EdeniQ used, though. have a double-check of your internal engi- Kilner says they developed a “sophisticated neering. It’s an expensive process and you risk management program,” where all the major process risks were identified and givwant to get it right the first time.”

Although it may seem obvious, bring- en mitigation plans so for all the key areas ing in the outside “eyes” is a must, but of risk, there is a plan B and a plan C. Logos Technologies helped form the in the case of EdeniQ, they didn’t have a choice. “Before proceeding with the con- risk assessment program, but Logos also struction phase of the project,” Kilner ex- helped in another way, proposal writing. plained, “we had to satisfy the DOE which “We brought in Logos to write the prorelied on an independent engineering firm.” posal to the government because we didn’t So for EdeniQ, it wasn’t one set of eyes or have experience working with government even two, three different engineering teams contracting.” Now, there is a team of five permenant members from Logos working looked over the process.

The work with the other teams taught at the EdeniQ pilot location.

Kilner one very important piece of strategy to use in the scale-up process, and even the Lignol’s Version Lignol is no different from most other technology validation process. Partnering is a plus. Why? Because he says a partner companies for one reason: its concern with might already have invested in similar infra- making a profit. And, its version of process technology validation has benefited from structure.

If an outside company has an improve- recognizing that. Because their process

photo: EdeniQ

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One of the greatest advantages of an engineering firm is access to that outside firm’s outside ideas, solutions and equipment packages that may not have otherwise been considered, MacLachlan says. That doesn’t de-emphasize the importance of the inhouse engineers understanding the process, however, because if the scientists and engineers understand the entire process and can even create an early design package, the outside engineers can move more quickly.

“I think it is a mistake that a lot of people make,” he says. Companies will go to a firm with an idea or concept instead of a wellresearched plan, expecting that engineering firm to help that idea in a capacity that in most cases, they can’t.

For the companies that have performed months or even years of research, who understand their process technology and simply want to check their perceived notion of their cost benefit analysis, there are companies such as Burns and McDonnell Engineering. Ron Jones is the business development manager at the St.Louis-based firm, and like both Kilner and MacLachlan, he believes the best path a biorefining firm looking to validate the feasibility of their process is to bring in or work with partners.

“One of the really cool things about this industry is that it is evolving around that basis, even the big guys, the BPs, the Valeros, are taking a partnering approach, and for a culture like ours that is pretty exciting,” Jones says, “because we prefer to be part of a team, rather than a second tier supplier that is feeding a commodity into the system.”

Jones says his team will Paired Up By Design In May, Lignol Energy Corp. teamed with Vancouverbased engineering contractor Poyry Inc. to amass an engineering design look at heat mass balances, package for a commercial-scale biorefinery that could potentially produce run simulations and have up to 80 MMly (21 MMgy) of cellulosic ethanol and 55,000 metric tons of lignin, trademarked HP-L, derivatives annually. Lignol is currently proving his team look over all of the out the feasibility of its process technology at a pilot plant in Burnaby, documentation regarding British Columbia.

CREDIT: Lignol Energy Corp.

deals with lignin, MacLachlan says all of the primary process considerations “revolve around extracting the maximum value out of the lignin.” To do that, Lignol has adopted an approach they call “open innovation.”

What that means, Kilner says, “is that we recognize in the biorefining industry there will be areas of expertise that will be fundamental to us and us alone, but,” he says, “we do recognize that there will be touchpoints in certain parts of the equipment we use,” and because of that, they are looking for partners. Sound familiar to EdeniQ’s approach?

MacLachlan believes Lignol has adopted a viral approach of working across different sectors in the biorefining space, as well as different industries to really provide his company with a robust set of inputs to help in the overall design of a commercial facility. And, like EdeniQ, one of those sectors is certainly an outside engineering firm.

the performance of a given process when they work with a biorefining company looking to validate their technology before taking the scale-up steps. Jones and his team are currently working with ZeaChem on the construction of a plant in Boardman, Oregon.

Some of the common hurdles his teams run into start when a technology developer comes in with an inadequate amount of research. “People come in sometimes with an idea and want to get a price on that, and that is difficult to do,” he says. Because of that, his job changes from company to company.

Typically he says, the more baseline work and the more experience the owner of the project has, the closer the results are between the internal and external engineering teams, but they are never the same. In most cases, the process will go from baseline work research by the engineers, followed by a face-to-face visit with the internal engineers and scientists before the actual testing begins.

From his time working on projects like ZeaChem’s, Jones says he has learned several things, but two variables seem to show through in every project. The first he says, is that every process technology developer out there is looking to find readily available commercial-scale equipment that they can piece together to make their process work.

The second common theme he sees is the “look” of most new advanced biofuels technologies, which he says look basically like chemical and refining processes already used today in the petroleum industry, a point he says helps his team to find answers to both performance issues as well as equipment possibilities.

EdeniQ and Lignol, even ZeaChem, are all taking different approaches to scaleup, using different technologies. By understanding their technology, by validating their costs, and, as each company we spoke to has shown, by finding the specific partner to work with, each may have a shorter, smoother ride to commercialization.

Authors: Bryan Sims, Luke Geiver Associate Editors, Biorefining Magazine (701) 746-8385 bsims@bbiinternational.com lgeiver@bbiinternational.com

JUly 2011 | Biorefining Magazine | 41

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