Biofuels International September/October 2016 by Woodcote Media Ltd

September/October 2016 Issue 5 â&#x20AC;¢ Volume 10

international

Treasure under the sea All eyes on seaweed

The forgotten retrofit

Tips to minimise software problems

Regional Regional focus: biofuels southeasxxxxxralasia focus: in biofuels in Asia

Can the biofuels market be both profitable and sustainable?

2016

Ghent Marriott, Belgium 20-22 September 2016

9th Biofuels International Conference & Expo

Now with 4 tours included in your delegate ticket! Speakers

Paolo Corvo Head of Business Development Biofuels & Derivatives Group Biotechnology

Dr Sergio Ugarte Co-founder and Managing Director SQ Consult

Raf Verdonck Consultant TOTCO

Ortwin Costenoble Senior Consultant NEN

Richard Fish President Alter NRG

Raffaella Serra Business Development Manager Beta Renewables

Arno van de Kant Business Development Director Bioprocess Pilot Facility B.V.

Dr. Jan M. Henke Director Meo Carbon Solutions GmbH

Christian Schweitzer Tim Worledge Managing Director Global Associate Editorial bse Engineering Director, Agriculture Platts Leipzig GmbH

Victor Allemandou Broker, Greenea

Peter Geertse Commercial Manager Zeeland Seaports

Gudbrand Rødsrud Technology Director Business Development Borregaard AS

Dr. Spyros J. Kiartzis Director Alternative Energy Sources and New Technologies Hellenic Petroleum S.A.

Kevin McGeeney CEO SCB Group

Luis Rodrigo Poch General Manager UCO Trading

Bo Gleerup Co-founder Nordic Green

Prof. Martin Tangney President Celtic Renewables

Dr. Gunter Festel Co-founder Autodisplay Biotech GmbH

Sandra De Mey Commercial Manager Port of Ghent

Patrick Pitkänen Head of Business Development St1 Biofuels Oy

Madeleine Breguet Oilseed and Biofuel market analyst Tallage/Stratégie Grains

Jakob Lagercrantz Co-founder, 2030-Secretariat

Brecht Vanlerberghe Chief R&D Officer Bio Base Europe Pilot Plant

Ian Waller Independent Advisor FiveBarGate Consultants Ltd

Fabio Nehme Co-founder and CEO, Nehme Commodities

Csaba Zsótér Product & Renewables Trading Manager, MOL Group

Carl De Maré Vice-President, Head of Emerging Technology Developments. ArcelorMittal

Matthew Stone Managing Director PRIMA

Please contact Matthew Clifton now – matthew@biofuels-news.com +44 (0)203 551 5751 Key Sponsors

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Conference Agenda

Day 1: 21 September 2016

Prior to the conference on 20 September, join us at 4.00 for a pre-conference networking event – visit the Bio Base Europe Training Center in Terneuzen followed by a port tour & dinner aboard The Denick SESSION TWO: INTERNATIONAL BIOFUELS TRADING 1:55 Opening remarks from the chair Ian Waller, Lead auditor, 5Barg8 2:00 International Trends for Advanced Biofuels Fabio Nehme, CEO, Nehme Commodities

SESSION ONE: MARKET ANALYSIS 8:30 Registration and Coffee

2:30 Pricing and trading trends Matthew Stone, Managing Director, Prima Markets 3:00 Networking break

9:00 Chair's opening remarks Sergio Ugarte, Managing Director, SQ Consult 9:10 How Global Biofuels Market Have Coped with Falling Oil, Legislative Changes and Shifting Trade Flows Tim Worledge, Global Associate Editorial Director of Agriculture, Platts 09:40 Biofuel management from an oil company's perspective • How is the crude oil landscape impacting biofuels demand? • Exploring Europe's biodiesel trading landscape Csaba Zsoter, Head of Feedstock Supply, MOL 10:10 Fuels in transition – challenges for the oil and gas sector Spyros Kiartzis, Alternative Energy Sources and New Technologies Manager, Hellenic Petroleum 10:40 Networking break kindly sponsored by Platts 11:15 Swedish Government Target of a Fossil Fuel Independent Transport Sector by 2030 – How is the Swedish industry supporting this? Jakob Lagercrantz, Co-founder, 2030-Secretariat

3:30 Biofuel Trade across Europe Sandra De Mey, Commercial Manager, Port of Ghent & Peter Geertse, Commercial Manager, Zeeland Seaports 4:15 Role of pilot facilities within development of advanced fuels Brecht Vanlerberghe, R&D Manager, Bio Base Europe Pilot Plant

SESSION THREE: WHAT NEXT FOR FIRST GENERATION PRODUCERS 1:55 Opening remarks from the chair Professor Martin Tangney, Director Biofuel Research Centre, President, Celtic Renewables Ltd 2:00 Evolution of first generation plants Sergio Ugarte, Managing Director, SQ Consult 2:30 Scaling up Arno van de Kant, Business Development Director, Bioprocess Pilot Facility 3:00 Networking break 3:30 Synthesising strengths of first and third generation biorefineries Christian Schweitzer, Managing Director, BSE Engineering 4:00 Biofuel margin prospects for firstgeneration producers in 2016/17 Madeleine Breguet, Oilseed and Biofuel market analyst, Tallage

4.30 Networking reception Hosted by Port of Ghent aboard their port yacht 'Jacob van Artevelde' for a port tour On 21 September after day 1 of the conference, all delegates and speakers are invited to join us on a tour of the Bio Base Europe pilot Plant, followed by a tour aboard Port of Ghent's port yacht 'Jacob van Artevelde' for a port tour with finger food and Ghent specialities.

Agenda: 4.30 h: Pick-up at Marriott hotel 5.15 h: Visit Pilot Plant 6.30 h: Port tour aboard port yacht ‘Jacob van Artevelde’ – fingerfood and Ghent specialities 8.00 h à 8.30 h: Einde aan Rigakaai Transport back to Marriott hotel

11:45 Waste-based biodiesel market in 2016 Victor Allemandou, Broker, Greenea 12:15 The new Kajaani Cellunolix second generation plant Patrick Pitkänen, Head of Business Development and Sales, St1 Biofuels 12:45 Networking lunch

Conference Agenda

SESSION FOUR: LATEST DEVELOPMENTS IN BIOFUELS POLICY & SUSTAINABILITY

Day 2: 22 September 2016

SESSION SIX: ADVANCED BIOFUELS PROGRESS SO FAR

SESSION FIVE: FEEDSTOCKS

9:00 Registration and Coffee

2:15 Opening remarks from the chair

9:30 Chair's opening remarks Ian Waller, Lead Auditor, 5Barg8

2:30 Second generation feedstock quality and pre-treatment Paolo Corvo, Head of Business Development Biofuels & Derivatives, Clariant

2:30 Steelanol Syngas Fermentation Project Carl De Mare, Head of Emerging Technology Development, ArcelorMittal

09:45 RED/ FQD amendment – implications for certification systems and system users • GHG reduction targets vs. blending targets • New GHG requirements under amended RED/ FQD and impact on economic operators along the supply chain • GHG calculation for innovative renewable fuels • Innovative tools for sustainability certification Dr. Jan M. Henke, Director, Meo Carbon Solutions 10:15 Harmonising Biofuels Quality and Labelling in Europe Ortwin Costenoble, Senior Standardization Consultant and secretary of CEN/TC 19 and CEN/TC 441, NEN Energy 10:45 Networking break 11:15 Exploring the changes in regulation of the sustainable biodiesel market in Spain for 2017 • Exploring the waste-based feedstock and biodiesel market in Spain • Trading sustainable products including cooking oil, animal fats, glycerol and biodiesel Luis Rodrigo Poch, General Manager, UCO Trading 11:45 Regulatory Affairs & Biofuel Policies Raf Verdonck, Consultant, TOTCO

3:00 Developing Reliable Biomass Supply Chains for Successful second generation projects Raffaella Serra, Business Development Manager, Beta Renewables 3:30 Networking break 4:00 Experiences from the cooperation with a Malaysian palm oil producer • Lowering the cost of cellulases by the recycling and reuse of cellulases • Special cellulase mix for the conversion of empty fruit bunches to fermentable sugar • Importance of industrial investors from Asia for technology providers to Europe Gunter Festel, Co-Founder, Autodisplay Biotech

3:00 Bio-methanol and the biofuels market in the Baltics Bo Gleerup, Co-Founder, Nordic Green 3:30 Networking break 4:00 Case study: Running a Biorefinery • Explaining the pre-treatment and separation process for co-production of lignin based performance based chemicals & sugars • The world's first microfibrillated cellulose to be scaled up to industrial scale Gudbrand Rodsrud, Technology Director, Borregaard 4:30 The Next Generation of Waste-toEnergy Solutions Richard Fish, President, Westinghouse Plasma Gasification

4:30 Sustainability assurance for feedstocks • Interaction between different feedstocks and biofuels Ian Waller, Lead Auditor, 5barg8

12:15 Future outlook for supply and demand in Europe Kevin McGeeney, CEO, Starsupply 12:45 Networking lunch Kindly sponsored by Biofuels International Magazine including whisky tasting with Celtic Renewables

5:00 CLOSE OF CONFERENCE *Please note that speakers and topics may be subject to confirmation and alteration. All information was correct at time of going to press.

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Advisory board members and expert speakers include:

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Piero Ercoli, VP Biofuels Trading, Eni Trading & Shipping

Khurram Gaba, Policy Planning Executive, ExxonMobil

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MANAGING DIRECTOR Peter Patterson Tel: +44 (0)208 648 7082 peter@woodcotemedia.com EDITOR Liz Gyekye Tel: +44 (0)208 687 4183 liz@woodcotemedia.com DEPUTY EDITOR Ilari Kauppila Tel: +44 (0)208 687 4126 ilari@woodcotemedia.com INTERNATIONAL SALES MANAGER Matthew Clifton +44 (0)203 551 5751 matthew@biofuels-news.com US SALES MANAGER Matt Weidner +1 610 486 6525 mtw@weidcom.com PRODUCTION Alison Balmer Tel: +44 (0)1673 876143 alisonbalmer@btconnect.com SUBSCRIPTION RATES A one-year, 6-issue subscription costs £150/€210/$275 Contact: Lisa Lee Tel: +44 (0)208 687 4160 Fax: +44 (0)208 687 4130 marketing@woodcotemedia.com

No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Biofuels International are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this magazine should not be construed as those of the publisher. ISSN 1754-2170

biofuels international

20 Treasure under the sea Seaweed could be the perfect crop for biofuel production, but to make it happen, serious industrial investments are needed 22 Algae today Advances and perspectives into the algae biofuels industry 24 No harm intended The importance of ensuring the safety of biodiesel additives 26 Adding to the mix Chemical additives in the production of UCO-based biodiesel 28 Down with deposits Operational cost reductions through evaporator deposit control 30 Keep one’s cool Turning to experts when microbial control issues occur in cooling water can save ethanol producers money and time 32 Options for reuse Innovative water recycling and reuse systems do not only make ethanol plants more environmentally friendly, but they also cut operational costs 34 Legionella under the microscope Preventing contamination by the Legionella bacterium should garner greater attention from the biofuels industry to stop it adversely impacting ethanol plants 36 Control system software: The forgotten retrofit When using PC systems, clicking the wrong button can have expensive consequences 38 Staying ahead of the risk curve How ethanol plants can best mitigate the risks posed by the current market place and managerial complacency 40 Which are the most sustainable biofuels? Europe is pushing ahead with plans to adhere to RED rules and make its transport sector green 42 Re-recognition of sustainability certification schemes A certification body’s conclusions from five years of operations, core changes and outlook

September/October 2016 Issue 5 • Volume 10

international

Treasure under the sea All eyes on seaweed

The forgotten retrofit

Tips to minimise software problems

Regional Regional focus: biofuels southeasxxxxxralasia focus: in biofuels in Asia

Front cover image courtesy of Jon Funderud FC_Biofuels_Sept-Oct_2016.indd 1

05/09/2016 11:46

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biofuels comment

Liz Gyekye Editor

Around the world and under the sea in one day

pessimist would think of a glass half empty than a glass half full. There is much to be pessimistic about in the world. Many countries are suffering from financial turbulence, there is an economic slowdown in China and the political situation in Latin America seems to be topsy-turvy. Furthermore, the prices of many commodities have been affected, notably crude oil. Good then that the biofuels industry remains an assembly of optimists. In fact, there is a lot for the industry to be optimistic about. The US is currently seeing record demand for ethanol domestically and internationally. Across the pond, for the first time since the start of the UKâ&#x20AC;&#x2122;s Renewable Transport Fuel Obligation in 2008, no palm oil has been used in the renewable biodiesel that is blended into fossil diesel in the UK. In West Africa, Nigeria has implemented a successful ethanol micro distillery project. The Nigerian

city of Ogbomosho is producing up to 1,000 litres per day of bioethanol from locally-grown cassava. In Southeast Asia, the government in Thailand is continuing to progress its biofuels roadmap, for which it is seeking full implementation by 2020 (see page 18). The Indian government, meanwhile, has just announced bold growth plans, designed to deliver a seven-fold boost to biofuels output by 2020. Asia is one of the continents really pushing ahead with its biofuels development. In places like Vietnam, money is being invested in seaweed research to look at the material for the production of biofuels. In Asia as a whole, seaweed is a highly valued resource with more than 30 million tonnes farmed annually, making it one of the largest biomasses we harvest from our oceans. More than half of this volume goes directly to human consumption. The rest goes into various

industrial sectors, such as the animal feed industry. Although seaweed looks like the perfect crop on paper for biofuels production, Europe is still quite far away from farming it on a large scale. In this issue, Seaweed Energy Solutionsâ&#x20AC;&#x2122; CEO Jon Funderud, analyses the subject in-depth. The environmental impact of large-scale seaweed farming is being investigated but appears as likely to be positive as negative. Some phytoplankton (microscopic marine plant) may be outcompeted for nutrients, but the swathes of kelp (large seaweed) may provide hatcheries for fish and the compounds seaweed give off in summer could sink and trap climate-warming carbon on the seabed. We hope you enjoy reading another exciting issue of Biofuels International.

Best wishes, Liz

2 september/october 2016 biofuels international

bioethanol news ICM to purchase Abengoa Bioenergy’s Kansas plant ICM, a US ethanol dryer specialist, has announced that it has successfully bid to purchase Abengoa’s Kansas plant. The deal was conducted under the provisions of the US Bankruptcy Code. The company will purchase the shuttered Colwich ethanol facility and property for $3.1 million (€2.7m). “ICM values this location in Colwich and we are evaluating the best way to exercise that opportunity,” said Dave VanderGriend, founder and CEO of ICM. “We continue to focus our efforts on developing solutions that deliver value-added product streams to the renewable energy industry.” The company’s acquisition agreements

are subject to review and approval by the US Bankruptcy Court for the Eastern District of Missouri. The acquisitions are expected to be complete no later than 30 September, 2016, subject to regulatory approval and customary closing conditions, at which time the asset will be offered to ICM. This news is the latest in the line of Abengoa plant purchases. In August, US biofuels specialist Green Plains announced that it was the successful bidder on three ethanol plants for sale by Abengoa Bioenergy conducted under the provisions of the US Bankruptcy Code. The company will purchase three US-based plants located in Illinois, Indiana and Nebraska. The plants have a combined production capacity

of 236 million gpy, for approximately $237 million in cash, plus certain working capital adjustments. Over the past year Spanish renewable company Abengoa has been struggling with financial instability that has pushed it on the brink of bankruptcy. Abengoa has been negotiating with creditors since November 2015 to avoid becoming Spain’s largest bankruptcy. In August, the company said a group of investors including Centerbridge Partners LP, Elliott Management Corp. and Oaktree Capital Management had agreed to inject €1.17 billion into the debt-laden company. In exchange, the investors will receive up to a 50% stake in Abengoa’s equity. In August, Abengoa said it expected at least 75% of creditors to approve its restructuring plan by 30 September. l

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september/october 2016 3

bioethanol news St1 presses ahead with Norwegian bioethanol plant development Finland-based biofuels firm St1 has said that its Norwegian subsidiary, Smart Fuel, will build a bioethanol plant at the site of a former paper mill in Norway that will use local forest industry residues as feedstock. The company said it has signed a letter of intent (LoI) for the project with Viken Skog, the largest forest owners’ cooperative in Norway. The planned Cellunolix plant, to be located at Follum in Honefoss, Norway, will be

able to produce 50 million litres of advanced cellulosic bioethanol for transport fuel per year. The project is expected to reach investment decision in 2018 and become operational by 2021. St1 has a business that focuses on waste-based, advanced ethanol production and production technologies. It is co-owner and technology provider for North European Bio Tech (NEB), whose first Cellunolix plant, to be fuelled by sawdust, will go live in Finland this year. Mika Wiljanen, CEO of Smart Fuel, said: “St1 is seeking locations for new Cellunolix

plants in all of its operating countries, including Finland, Sweden and Norway. I am glad that our project in Norway has progressed well. This project reflects the great opportunity we see in Norway to produce and market advanced biofuels with an excellent CO2 footprint and to replace fossil fuels in order to meet transportation energy needs in a sustainable manner.” In Finland, St1 already has four Etanolix plants utilising food industry residues and one Bionolix plant producing ethanol from bio-waste collected from grocery retailers and households.

“This project marks a milestone towards delivering on our vision to be the leading seller and producer of CO2aware energy in Norway,” said Thomas Hansen, director of Renewable Energy at Smart Fuel. He added: “We are very excited about the opportunity to cooperate with Treklyngen and Viken Skog in producing renewable fuel from renewable forest residue. “We also plan to use side streams from our own biofuel production process to produce renewable energy in order to power the plant, in line with the closed-loop approach.” l

ADM Q2 results hurt by weak ethanol margins

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US agribusiness conglomerate Archer Daniels Midland (ADM) has reported a dip in its second-quarter earnings and revenues. Chicago-based ADM said its results were hurt by poor ethanol margins and lower earnings from its agricultural services unit, which includes exporting and trading operations. The company recorded second-quarter net income of $284 million (€253m), or 48 cents per share, down from $386 million, or 62 cents per share, in the same period of 2015. Revenues from continuing operations dipped to $15.6 billion in the quarter that ended on 30 June from $17.2 billion in the second quarter of 2015. “After a challenging start

to the year, general market conditions began to turn at the end of the second quarter, providing us with improved opportunities for the second half of the year,” ADM chairman and CEO Juan Luciano said in a statement. He added: “Weak grain handling margins and merchandising results continued for Ag Services. Results for corn processing included strong performance in sweeteners and starches offset by lower ethanol results.” ADM’s oilseeds processing operations were able to leverage flexible capacity to crush record volumes of soybeans in the second quarter as global protein demand continues to grow. Luciano also said that ADM continued to make progress in the strategic review of its ethanol dry mills. l

4 september/october 2016 biofuels international

bioethanol news UPS to expand alternative fuel fleet with $750m investment

It also announced that it has successfully completed one billion miles in its “rolling laboratory” fleet of electric, hybrid, natural gas, and biofuel-powered delivery vehicles. The company announced these measures in its 14th annual Sustainability Report, which it released in August. “We had a big sustainability goal as we set out to make the

most of our rolling laboratory by driving one billion clean miles in alternative fuel vehicles – that’s the equivalent of well over 4,000 trips to the moon,” said David Abney, chairman and CEO at UPS. He added: “While attaining this goal is new, our commitment to seeking out alternative fuels actually dates back to the 1930s when UPS tested electric vehicles. “With more than 100,000 drivers logging more than three billion miles per year, our future depends on our ability to meet the growing demand for global trade while reducing our impact on the environment.” UPS is also planning to increase the amount of biofuels used in its avation crafts. l

Gevo reports Q2 revenue dip Gevo has reported a 10% decrease in revenue to $8.1 million (€ 7.2m) for the second quarter of 2016, compared to $8.9 million the year before. The company’s net loss for the quarter was $21.5 million, compared with $14.4 million during the same period in 2015. Although the company did not expand on the reasons why its net loss increased, in a conference call Gevo’s chief financial officer Mike Willis said: “The decrease in revenue during 2016 is primarily result the production and sale of approximately $7.2 million of ethanol, isobutanol

biofuels international

and distillers grains at the Luverne plant (isobutanol plant based in Minnesota) as compared to $8 million in the second quarter of 2015. “This change was principally a result of lower ethanol production, ethanol prices, and the distiller’s grains prices in the second quarter of 2016 versus the same period in 2015,” said Patrick Gruber, Gevo’s CEO. Nevertheless, he said the company had reached a number of key milestones in the first half of the year. This includes restarting production at its Luverne plant. Gruber also said that two commercial flights had used Gevo’s “renewable alcohol to jet fuel”, which had been a success. l

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UPS, a package delivery giant, has announced that it will invest more than $750 million (€670m) for its alternative fuel and advanced technology vehicles by the end of 2016.

september/october 2016 0

bioethanol news Novozymes half-year profit jumps 6% Denmark-based biotechnology firm Novozymes has reported that its half-year pre-tax profit increased by 6% to DKK1,906 million (€256m), compared to DKK1,792 million a year earlier, helped by strong sales growth. The firm’s net profit was DKK1,496 million, an increase of 8% from DKK1,389 million in the first half of 2015, primarily driven by the gain from net finance. Earnings before interest and taxes (EBIT) was on par with the first half of 2015, Novozymes reported. The EBIT margin was 27.2%, also on par with the first half of 2015. Adjusting for the restructuring costs in Q1, the EBIT margin would have expanded

to above 28% and EBIT growth to around 4% compared with the first half of 2015, the company said. In its statement, Novozymes said its outlook for full-year organic sales growth is adjusted to 2-4%, down from previously 3-5%. The adjustment reflects uncertainty in most of the industries in which Novozymes operates. Sales to the bioenergy industry decreased by 6% organically and by 7% in DKK compared with the first half of 2015. US ethanol production in the first half of 2016 is estimated to have been up by around 3% compared with the first half of 2015. The margins for ethanol producers remained low in the first half of 2016. Novozymes’ customers continued to focus on low-cost solutions, resulting in further negative product mix

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changes, and price competition in enzymes is tough, the company said. The recently launched enzyme products for ethanol production Avantec Amp and Liquozyme LpH contributed positively to the product mix, but not enough to offset the overall negative impacts from product mix and pricing. Bioenergy sales are now expected to contract organically more than previously expected in 2016, as the competitive market for enzymes is expected to continue, driving prices down and offering lower in-use cost for ethanol producers. US ethanol production in 2016 is expected to increase by around 2% compared with 2015. Novozymes expects to launch more innovation in the US conventional ethanol market in the second half of the year. l

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6 september/october 2016 biofuels international

biodiesel news No palm oil used to make biodiesel in UK For the first time since the start of the UK’s Renewable Transport Fuel Obligation in 2008, no palm oil has been used in the renewable biodiesel that is blended into fossil diesel, according to official figures. The Renewable Energy Association (REA) reported that volumes have dropped sharply since 2012 and UK biodiesel is now largely made from waste feedstocks, in particular used cooking oil.

UK feedstocks are also the major contributor to renewable bioethanol that is blended into fossil petrol. In 2008 UK feedstocks accounted for 8% of UK’s renewable fuels and this has now risen to 26%. In the same period greenhouse gas savings have risen from 46% to 74% when compared to fossil fuels. Commenting on the release of UK Department of Transport data on Year 8 of the Renewable Transport Fuel Obligation, Clare Wenner, the REA’s head of renewable transport, said: “These figures show how seriously the UK fuels industry has taken the

potential damage to global carbon emissions posed by the use of palm oil. It has been many years since the UK biofuels industry stopped using palm oil to make biodiesel, but this example has now been followed by all UK fuel suppliers. “UK-sourced feedstocks now make up over a quarter of the material for our renewable fuel use and deliver a stunning 74% reduction

in carbon emissions. “The total absence of palm oil and these excellent carbon-emission savings show that there is no need for the government to introduce excessive curbs on the use of crop-based biofuels. Our home-grown bioethanol produces low-carbon fuel and animal feed and our biodiesel industry uses our waste cooking oil – wins all round for UK PLC.” l

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biofuels international

september/october 2016 7

biodiesel news US Army breaks ground on new plant The US Army and Hawaiian Electric Co. have broken ground on a partially biodieselpowered 50MW power plant on the Hawaiian island of Oahu.

The plant, located at the Schofield Barracks on the island, will burn both biodiesel and fossil fuels. Being developed, owned, and operated by Hawaiian Electric, the plant is expected to come online in early 2018. The plant will feature modern, flexible and efficient generators that will complement increasing levels of solar and wind power on the Oahu grid. The generators will be capable of quickly starting up, shutting down, or changing their output in response to sudden changes in solar and wind energy resources, which provide varying levels of energy depending on weather, time of day, cloud cover and other factors.

Hawaiian Electric said its new plant will provide green energy to the Hawaiian island of Oahu

The plant will utilise six Wärtsilä 34DF engines capable of running on diesel, biodiesel, or liquefied natural gas. Hawaiian Electric said as the only power plant on the island – located inland, away

from any coastal impacts from storms or tsunamis and well protected on a secure Army base – the Schofield plant will strengthen the Oahu grid and make it better prepared for emergencies. l

World Energy acquires Missouri biodiesel plant US biodiesel producer World Energy has acquired a 72 million gpy biorefinery from chemicals manufacturer Elevance Natchez (ENI) located on the Mississippi River in Natchez, Missouri, US. World Energy has been supplying BQ9000certified biodiesel from the currently fully staffed and operational plant under a production contract with ENI since January 2013. Customers, employees, suppliers, and the Natchez community can expect little change in the transition to new ownership. In June, World Energy and its joint venture partner Biox Corp. announced the acquisition of a 90 million gpy

production plant known as World Energy Biox Biofuels (WEBB) located at the Kinder Morgan Liquid Fuels Terminal on the ship channel in Galena Park, Texas. WEBB is now in its final stages of preparation for production start-up. Also in June, the companies announced the establishment of a 315,000 barrel multimodal biofuels distribution centre known as Houston Hub, which is co-located and co-operated with WEBB at Kinder Morgan’s Galena Park Terminal. Houston Hub is fully integrated into Houston’s petroleum distribution network by truck, rail, barge, ship, and pipeline. “Today’s acquisition of ENI’s Mississippi River plant expands on the initiatives we took earlier this summer with Biox,” said Gene Gebolys, World Energy’s CEO. l

8 september/october 2016 biofuels international

2016

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Sustainably sailing the seven seas By Ilari Kauppila The University of California has performed successful tests in running its research vessels on 100% biodiesel The University of California (UC) has made a pledge to become a carbon neutral institution by 2025 in an effort to combat global climate change. The project has so far seen the US-based university improve its energy efficiency, develop new sources of renewable energy, and enact a range of strategies to cut carbon emissions. Against this backdrop, it is no wonder that Bruce Appelgate, associate director of the Scripps Institution of Oceanography located at the UC San Diago campus, began thinking of a way to cut emissions also from the university’s fleet of oceanic research vessels. Scripps has one of the most expansive research fleets in the world, including three research vessels and one floating platform. The ships and boats take researchers, scientists, and students around the world in their neverending quest to understand our oceans and our planet better. But there’s one nasty feature about the vessels: they run on fossil diesel, thus contributing to the destruction of the environments they are supposed to protect. This paradox brought an idea to Appelgate’s mind. What if Scripps began using biodiesel to propel its fleet forward across the waves? “Part of the Scripps mission is to protect the environment, and one of the most significant changes that we could make in our ship operations involved

moving toward the use of cleaner, renewable fuels,” said Appelgate, head of Scripps ship operations and marine technical support. “As scientists, we know we need to develop sustainable means of powering our ships to address pollution concerns, as well as to mitigate future increases in fossil fuel costs.” The test begins Scripps received a grant from the US Department of Transportation in 2014 to test biodiesel for the duration of one year on the research vessel Robert Gordon Sproul. The test was not in vain. During this year, the ship became the greenest vessel in all of Scripps’ fleet. The Scripps researchers originally wanted to test renewable biodiesel produced from algae, but no manufacturers made algal biodiesel in the volume needed. Appelgate was able to take advantage of a newly-established reliable supply chain for another type of biodiesel, a hydrogenationderived renewable diesel (HDRD) called NexBTL renewable diesel purchased from Neste Oil Corp. Over the course of the biofuel experiment, which began in September 2014 and ran through December 2015, Robert Gordon Sproul conducted 39 regular oceanographic research and education missions, spanning 89 operational days at sea, covering more than 14,400 nautical miles, and involving 527 scientists and students. In the process, the vessel used a total of 52,500 gallons of 100% renewable diesel. All the while, atmospheric scientist Lynn Russell,

Research vessels worldwide may benefit from UC trials with 100% biofuel

who co-led the biodiesel project, and her team used instruments installed on board to continuously measure pollutants such as carbon monoxide (CO) and nitrogen oxides (NOx), organic and black carbon aerosols, and engine performance to characterise differences between conventional and renewable fuels. Roses and thorns During two separate five-day research cruises aboard the ship, Scripps postdoctoral scholars Raghu Betha and Derek Price – both with the Climate, Atmospheric Science and Physical Oceanography (CASPO) division at Scripps – collected data for studies that focused on the air quality-related emissions from biofuel in comparison to the emissions from ultra-low sulphur diesel. Two separate tanks on Robert Gordon Sproul held biofuel and diesel, and the researchers could run the ship’s engine from either source, switching back and forth as needed to collect different emission samples. Betha’s research focused mainly on the direct emissions coming from the ship’s stack (the exhaust piping at the top of the ship) and the criteria of pollutants for air quality. An inlet from the ship stack led directly to an airsampling trailer, which housed instruments to measure the emitted particles and gases such as CO2 and NOx. He found that the amount of NOx emissions were

about 13% lower for biofuel, especially when the ship was running at lower speeds. The particle emissions, however, were 35% higher for biofuel, especially when the engine was running at higher speeds. Black carbon or soot counts were also slightly higher for biofuel. Betha believes that the benefit of having a decrease in CO2 emissions could outweigh the negative of higher particle emissions, since CO2 is a bigger problem for climate. Further, the decrease in NOx was a welcome surprise, since many other types of biofuel have shown increased NOx emissions, said Betha. Price, on the other hand, concentrated on the organic chemistry of the particles from the two different fuel emissions. He found that the emissions from both biofuel and diesel plumes were actually quite similar and mostly composed of hydrocarbon compounds. The entire research team is hopeful that the proven success of biofuel to run an academic research ship will facilitate future use of renewable fuels on Scripps and other research vessels. “We were able to show that our existing ship ran as well if not better on biofuel,” said Russell. “The hope is that the price of biofuel will come down as the manufacturing process gets better understood, and as people test it and start adopting it. Now that there’s proof of concept, it should be easy to keep doing it.” l

10 september/october 2016 biofuels international

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A summary of the recent explosions, fires and leaks in the biofuels industry Date

Location

Company

Incident information

17/8/2016

Iowa, US

DuPont

A stover bale at Dupont’s Nevada, Iowa, cellulosic ethanol plant was set on fire by a suspected lightning strike. The fire took some time to put out and added to the damages of another lightning strike on 4 August, when 10,000 bales of corn stover were lost. DuPont said it would review how to reduce the risk of the incident happening again.

10/8/2016

Kentucky, US

CSX

A train carrying biodiesel among other cargo derailed near Falmouth, Kentucky, leading to more than 20 cars being damaged and the fuel leaking out to the ground. Hazmat crews were alerted to the site after fears of sulphuric acid spill surfaced, but the acid tankers were found to be intact. The leaked material was deemed to be a mix of biodiesel, animal fat, and other non-dangerous substances. Authorities suspect the derailment could have been caused by a wheel failure.

18/7/2016

Wollongong, Australia

N/A

A truck carrying 50,000 litres of ethanol got caught in flames in Australia’s New South Wales after climbing a steep hill in hot weather, leading to the M1 motorway being closed. The cabin fire was put out quickly, but the tank was cooled with large amounts of water for 30 minutes to keep the highly flammable cargo from catching fire. The driver was fortunately not injured, and the road reopened after the truck was removed.

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Plant update: Asia Beta Renewables Location Punjab, India End product Bioethanol Feedstock Inedible wheat and paddy straw Construction / expansion / The government of the state of Punjab acquisition has entered into a memorandum of understanding with a consortium to set up a bioethanol refinery in the state Designer/builder Novozymes, CVC India Infrastructure Project start date November 2015 Completion date Projected for 2017 Investment INR9.5 billion (€131 million)

Fujian Zhongyuan New Energy Co. Location End product Feedstock Construction / expansion / acquisition

Southern China Algae-based ethanol Industrial CO2 emissions Fujian Zhongyuan New Energy Company plans to develop projects throughout Southern China, utilising carbon emissions to create renewable fuels Designer/builder Algenol Project start date September 2015

Biokhim

Godavari Biorefineries

Location Tayinsha, Kazakhstan End product Bioethanol Feedstock Wheat Capacity 57,000tpy Construction / expansion / The Investment Fund of Kazakhstan acquisition is working to bring the mothballed Biokhim plant back online Project start date January 2016 Completion date Scheduled for December 2016 Investment $82.2 million (€75.6m) Comment Biokhim was previously planned for restart in the first half of 2015

Location End product Feedstock Capacity Construction / expansion / acquisition Completion date

Sameerwadi, Karnataka, India Dehydrated ethanol Sugar industry residues 50 million l/y Godavari Biorefineries, an Indian ethanol producer, has commissioned its Sameerwadi facility with expanded capacity from 15 to 50 million litres March 2016

India Glycols Denso Location End product Feedstock Construction / expansion / acquisition Project start date Completion date

Amakusa, Japan Algal biofuel Pseudochoricystis ellipsoidea algae Denso has built a large 20,000m2 test facility for the culture of Pseudochoricystis ellipsoidea August 2015 April 2016

Euglena Location Japan End product Renewable jet fuel Feedstock Euglena algae Capacity 125,000 litres Construction / expansion / Euglena, a Japanese microalgae acquisition developer and producer, has partnered with Japan’s largest airline ANA Holdings to develop an algaebased jet fuel facility Project start date December 2015 Completion date Projected for early 2018 Investment 3 billion yen (appr. €23m)

Location End product Feedstock

Kashipur, India Cellulosic ethanol Wood chips, cotton stalk, cane bagasse, corn stover, and bamboo Capacity 750,000l/y Construction / expansion / Green technology manufacturer India acquisition Glycols has officially launched a demonstration-scale cellulosic ethanol plant at one of its sites in Kashipur Completion date April 2016

Japanese government Location Davao City, Philippines End product Biodiesel Feedstock Used cooking oil Construction / expansion / The government of Japan has acquisition launched a project in the Philippines to produce biodiesel from used cooking oil Project start date November 2015 Comment The government of Japan is currently conducting a feasibility study in the Philippines

12 september/october 2016 biofuels international

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Numaligarh Refinery Location Assam, India End product Bioethanol Feedstock Bamboo Construction / expansion / A joint venture project between acquisition Numaligarh Refinery and Chempolis moves on after getting approval from NRL’s board Designer/builder Chempolis Completion date Projected for 2022 Investment €110 million

Sunlight Fuels Location India End product Renewable fuel Feedstock Sugarcane bagasse Capacity 150 tonnes/day Construction / expansion / Sunlight Fuels has entered into a Front acquisition End Loading FEL-2 license agreement for IH2 technology with a Singaporebased affiliate of CRI Catalyst Co. to build a commercial-scale plant Designer/builder CRI Catalyst Co. Project start date May 2016

Oasis Group Location Punjab, India End product Ethanol Feedstock Non-edible wheat Construction / expansion / Technology, engineering and acquisition construction company Oasis Group will build a wheat-based ethanol plant in Punjab Project start date January 2016 Investment £51 million (€60.8m)

TN Energy/Lao State Fuel Location

Dongphosy, Hadxaifong, Viantiane, Laos End product Bioethanol Feedstock Cassava and sugarcane Capacity 1.2 million l/month Construction / expansion / South Korea’s TN Energy has entered acquisition into an agreement with Lao State Fuel to set up a joint venture to produce Power Gasoline-branded bioethanol fuel Project start date March 2016 Investment $34 million (€30.8m)

PetroVietnam Location Quang Ngai, Vietnam End product Bioethanol Capacity 100 million l/y Construction / expansion / PetroVietnam has confirmed that acquisition its Dung Quat bioethanol plant has halted its operation due to high production costs making its products uncompetitive in the market Completion date April 2016 Investment VND2.219 trillion (€87.7m)

University of Kentucky Center for Applied Energy Research Location End product Construction / expansion / acquisition

Designer/builder Project start date

Zhengzhou, China Algae investment The University of Kentucky is constructing a five-acre algae production facility to test new photobioreactor and provide feedstock for biofuels Lianhenghui Investment February 2016

Shell India Markets Location End product Feedstock

Bangalore, India Renewable fuel Forestry/agri residues, municipal waste Capacity 5 tonnes/day Construction / expansion / Shell India Markets plans to build a acquisition biofuel demonstration plant using IH2 technology on the site of its new technology centre Designer/builder CRI Catalyst Co. and Zeton Project start date January 2016

biofuels international

*This list is based on information made available to Biofuels International at the time of printing. If you would like to update the list with any additional plant information for future issues, please email liz@woodcotemedia.com

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market analysis SCB commodity brokers global biofuels prices Prices quoted: 31/08/2016 Product

Mid price

URL: www.starcb.com

Product

Mid price

EU biodiesel RED ($/mt)

US biodiesel B100 ($/gal)

FOB ARA RME

904.50

Houston SME

3.130

FOB ARA SME

899.50

Houston TME

3.090

FOB ARA PME

889.50

NY Harbour SME

3.130

FOB ARA FAME 0

899.50

NY Harbour TME

3.070

FOB ARA FAME -10

904.50

Mid West SME

3.120

EU biodiesel Non RED ($/mt)

US ethanol ($/gal)

FOB ARA RME

889.50

NY Harbour Barges

1.500

FOB ARA SME

884.50

Argo ITT Illinois

1.430

FOB ARA PME

874.50

FOB USGC

1.475

FOB ARA FAME 0

884.50

Rule 11 TWS (Railcar)

1.415

FOB ARA FAME -10

889.50

Rule 11 NWS (Railcar)

1.415

EU ethanol (€/m3)

RINs ($/RIN)

T2 FOB Rotterdam

456.00

2016 Ethanol (D6)

0.885

CIF Duisburg 60% GHG

451.00

2016 Biodiesel (D4)

0.983

US ethanol ($/m3) 2016 Advanced (D5) FOB US ANP

406.98

Emission credits ($/mt)

FOB Santos

575.00

LCFS Credits

0.925

95.50

Current price index

AME 0c continues to be the most actively traded grade on a FOB ARA basis as oil companies continue to maximise their summer blending programmes. As a result of this, the premium for RME over FAME 0c remains negligibly thin. In part this is due to North West European buyers focusing on 0c CFPP, but also as there remains a lack of blend stock availability. Traditionally, palm oil has been used as a summer feedstock for FAME, but

most of the PME production in Europe and imports into the EU are being shipped directly to the Mediterranean. With PME struggling to offer any meaningful discount to RME or FAME, the CFPP “premium” we have seen in years past has disappeared during the summer months. Looking at the forward curve, this trend reverses during the winter months, when many European countries will revert to winter specifications. One disappointment continues to be Germany,

where summer demand has been regrettably slow. This is in part due to the legislation (a move from a volumetric mandate to a GHG reduction) but also import arbitrages are limited, meaning inland domestic production is now able to compete with the traditional import hubs of ARA and Hamburg, leaving local demand now largely fulfilled with local production. Waste grade demand continues to strengthen in Europe as more countries incentivise the blending of

second-generation biofuels. The UK has been the most aggressive buyer of UCOME this summer and UK buyers have been able to outcompete German buyers for volumes, whilst Italy has been buying both double counting waste-grade palm oil and TME. With the recent down trend in gasoil, feedstock availability, and impending winter blending season, waste grades have slowed down and we will have to see where UCOME and TME will flow during the winter months. l

14 september/october 2016 biofuels international

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market analysis US biodiesel market is slowing amidst demand uncertainty

Trouble on the horizon by Brian Milne

Brian Milne, product manager, Schneider Electric

ollowing progressively higher output of biomass-based diesel in the US during the first six months of 2016, producers dialled back their yield in July to a three-month low and shrunk the year-on-year increase in monthly output to 5.9% from a double-digit growth rate realised each month during the first half of the year. Biomass-based diesel production meeting the US Environmental Protection Agency’s (EPA) requirements in satisfying the Renewable Fuel Standard (RFS) in July totalled 204 million gallons, 11.3 million gallons more than in July 2015, with output for the first seven months of 2016 reaching 1.27 billion gallons, 280.6 million gallons or 28.4% above the production rate for the comparable yearago period. An expanding demand mandate under the RFS, which requires an increasing volume of renewable fuels to be used instead of petroleum-based

fuel, continues to underpin the biodiesel market and drove the sharp production gains seen so far this year. Biomass-based diesel is one of several renewable categories to satisfy the RFS alongside ethanol and cellulosic and advanced biofuels, with 1.9 billion gallons of biomass-based diesel required this year under the mandate and 2 billion gallons in 2017. The National Biodiesel Board, the trade organisation for the US biodiesel industry, indicates the US used 2.1 billion gallons of biodiesel in 2015. However, trading activity is stuck in a low drive, with extended term agreements not getting done while only a smattering of deals in the spot market are transacted. The majority of business continues at the rack level, much of which is already blended with ultra-low sulphur diesel fuel at the wholesale distribution point. Dropping distillate demand

Market analysis industrial production

NYMEX ULSD futures spot continuous chart

EPA qualified biomass-based diesel production

Market analysis spot prices

Two issues cloud the nearterm horizon for US biofuel traders, marketers, and producers, which include a lack of demand growth for distillate fuels – Ultra-lowsulphur diesel (ULSD) and heating oil – and the endyear expiration of a tax credit paid to blenders of biodiesel. Data from the US Energy Information Administration (EIA) shows implied demand for distillate fuel cumulatively

16 september/october 2016 biofuels international

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in 1 January, 2016, through 19 August was at 196,000bpd or 5.0% lower than during the corresponding timeline in 2015, although distillate supplied to market pulled to parity with year ago during the most recent four weeks of available data. Of that demand, 31.9% were generated by exports, eroding the benefit for US biodiesel blenders. Distillate demand in the US continues to emanate from industrial and commercial activity for diesel and winter cold for heating oil grades. A warm 2015-16 winter sharply reduced demand for heating oil early in the year and remains an unknown for the fourth quarter, while US economic growth has not been above a 2.0% annualised growth rate since the second quarter 2015 when it reached 2.6%. The most recent reading from the US Commerce Department’s Bureau of Economic Analysis shows a 1.1% annualised growth rate for the US economy in the most recent second quarter and a 0.8% expansion in the first quarter. That followed a 0.9% year-on-year expansion in the US economy during the final three months of 2015. Troubles with trucking There is growth in freight movements by truck this year compared with 2015, but it has been slow and inconsistent. The American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index fell 2.1% to 134.3 in July, and the index has declined for the fourth month out of the past five, with July’s reading the lowest since October 2015. In February, the index reached an all-time high of 144 since ATA, the largest national trade association for the trucking industry, started the index in the 1970s. “This prolonged softness is consistent with a supply chain

biofuels international

that is clearing out elevated inventories,” said ATA chief economist Bob Costello. “Looking ahead, expect a softer and uneven truck freight environment until the inventory correction is complete. With moderate economic growth expected, truck freight will improve the further along the inventory cycle we progress.” Trucking, which serves

There continues to be a legislative push to move the credit recipient from the blender’s level to the producer, with proponents including US Senator Chuck Grassley, R-Iowa, and US Senator Marian D. Cantwell, D-Washington, arguing the credit at the blender’s level invites biodiesel imports. The two senators introduced

The market for Renewable Identification Numbers is heating up as a barometer of the US economy, represents nearly 70% of tonnage carried by all modes of domestic freight transportation in the US. Concerning credits US industrial production rose for the second consecutive month in July, reaching its highest point since October 2015, according to the Federal Reserve Bank of St. Louis in their FRED economic data series. In March, output dropped to a better-than two-year low. The biodiesel industry is again confronted with an upcoming 31 December expiration of a $1.00/gal credit paid to blenders of biomassbased diesel into petroleumbased diesel. The credit was approved for this year in December 2015 when it was also made retroactive for all of 2015. The approaching expiration of the credit recreates a familiar scenario for the biodiesel industry. The credit has either expired and been reinstated or extended within weeks of an expiry several times in recent years, creating uncertainty for the market. The credit is critical in bridging the price gap between biodiesel and ULSD, and not knowing whether it will be extended into 2017 freezes out long-term deal activity.

legislation in July that extends the tax subsidy through 2019, and converts it from a blender’s tax incentive to a domestic production credit. The proposal would “appropriately reform this incentive by applying it only to domestic biodiesel production, ending a growing practice where foreign producers are taking advantage of our tax system. Our tax law should not be incentivising foreign fuel, and this bill fixes that loophole so that we’re stimulating jobs and economic development here at home”. According to the NBB, biodiesel and renewable diesel imports into the US totalled 670 million gallons in 2015, accounting for nearly a third of the US biodiesel market.

their production in an effort to stabilise the global oil market. The market for Renewable Identification Numbers (RINs) – the credits used by obligated parties that include oil refiners, blenders and importers to show compliance with the RFS – is also heating up, with biomass-based D4 RINs holding above $1.00 for much of July and August. D4 RINs are lent upside price support from concern over a RIN shortage in the coming years, with obligated parties allowed to carry over as much as 20% of their current year Renewable Volume Obligation (RVO) into a new year. This RIN banking is exacerbated by the ethanol blend wall, which refers to the 10% maximum concentration point for ethanol in petrol allowed in all vehicles on US roads. Ethanol has reached this blending point limit, and the RFS demand mandate is set to increase in 2017 and beyond, and is seen pushing RIN values sharply higher in the months ahead. l

Propped-up prices Soy methyl ester B100 spot biodiesel prices rallied in early August off summer lows registered in early July, pushed higher by climbing ULSD futures traded on the New York Mercantile Exchange (NYMEX). Spot prices trade in an index to the ULSD contract, with NYMEX oil futures rallying in August on speculation members of the Organization of the Petroleum Exporting Countries would reach an agreement in late September that regulates

For more information: This article was written by Brian Milne, who manages the refined fuel’s editorial content, spot price discovery activity and cast market analysis for Schneider Electric. Milne has nearly 20 years’ experience in the energy industry as an analyst, journalist and editor. Tel: +1 952 851 7216

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regional focus The Asian biofuels industry has massive potential that currently goes unrealised

Exciting future, tame present

he prospect for biofuel developments across Asia is always interesting and exciting but not always as achievable in terms of real progress as the individual governments might like to believe. The enormous size of the marketplace and the universal desire to replace imported fossil fuels by domestically-produced alternatives ensures the unveiling of a steady stream of projects, trials, and initiatives, with 2016 certainly proving to be no exception to this rule. At the same time, the drive to convert the region’s biofuels vision into reality is often harder to maintain, especially in the face of current crude oil prices. “We’re expecting the biofuels market in Asia to be rather tame this year, with not that much demand coming through from the market because of the lower crude oil prices we now have,” says Kelvin Chow, analyst with Rabobank Food and Agri Research, based in Singapore. “While oil at $100 (€88) a barrel has been a driver behind the growth of biofuels in Asia in the past, crude prices of around $40 a barrel certainly aren’t. As a result, we’re not seeing businesses pushing for a switch of focus from fossil fuels to biofuels, despite the various government initiatives and mandates which are either already in place or under discussion.” Current efforts, at governmentlevel in the various countries, to raise biofuel production and consumption are proving a challenge and are faced with slowing demand from consumers and rising opposition from the auto industry. In Indonesia, for example, where the government wants to implement an E20 blending mandate, latest estimates suggest the country is going to fall short of its 2016 biofuels production target of 2.5 million litres. Similarly, in Malaysia, attempts to increase the country’s biofuels mandate from B7 to B10 has hit opposition from the auto industry, whose leaders maintain that even B7 is already causing them

performance problems. As a result, the planned move to B10 is best described as having reached a position of “stalemate” for the time being. Kelvin Chow of Not that any of Rabobank this is preventing biofuels initiatives from continuing to flow, across the region. The government in Thailand, for example, is continuing to progress its biofuels roadmap, for which it is seeking full implementation by 2020. The Indian government, meanwhile, has just announced bold growth plans, designed to deliver a seven-fold boost to biofuels output by 2020. The way forward Sourcing initiatives across the region are also plentiful. Trials are currently underway in Thailand concerning the potential for increasing the use of domestically-grown cassava, while the government in Singapore is experimenting with food waste processes, backing the collection of unsold food from retail outlets and restaurants to assess its

conversion value into biofuels. While each country inevitably has its own approach to meeting its future fuel and energy demands, a commitment to finding domestic rather than imported solutions is pretty universal. That is a sales and marketing challenge which the US Grains Council (USGC) is currently addressing in the midst of selling 715 million litres of ethanol to Chinese buyers in the first 10 months of its 2015/16 marketing year, while continuing to pursue trading links with Japan, India, and South Korea. The council is also battling to overcome the negative image which many across Asia currently have towards ethanol production and its influence on food prices. “So much disinformation has been spread about ethanol that we have to start all sessions by undoing the negative impressions that many people have in Asia in order to move the different countries forward in their thinking,” USGC’s chief economist, Mike Dwyer, tells Biofuels International. Dwyer said that the USGC recently hosted an ethanol fact-finding tour and the staging of a major workshop in Seoul for Japanese journalists. This focused on the outlook for global ethanol supply and demand, offered information about

18 september/october 2016 biofuels international

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past US experience with ethanol policy and provided a forum for discussion about the merits of using ethanol versus petrol. As for the domestic-imports challenge, Dwyer adds: “Our focus is on whole market development, rather than being just about increasing US exports. We believe in trying to grow the ethanol pie, in global terms, encouraging other countries to use ethanol for air quality benefits and the like. If, in the midst of pursuing domestic supplies for their production, they can’t hit their mandates at any point, our message is to resist the temptation to relax the mandate and take imports to fill the gap temporarily.

China, Japan, India and South Korea have a chance to move forward in their own supply/ demand balance “That way, the total global market keeps growing, and countries like China, Japan, India and South Korea have a chance to move forward in their own supply/demand balance. It’s all really about bringing predictability to the marketplace. If a refiner knows that he will have E10 levels of ethanol available then he can produce an 84 octane petrol for blending to produce an 87 octane fuel. Unfortunately, turning the production switch on and off all the time means that, in too many countries, the consumer isn’t getting the ethanol blend he wants, simply because the blender doesn’t know how much ethanol will be available for him to work with.” Asked if he remained optimistic that Asia will get there in terms of achieving its biofuels future, Dwyer’s short response is “definitely”. “In the US today, we produce 50 billion litres a year, a total we’ve built up to in roughly 10 years,” he adds, qualifying his positivity on Asia. “No other country needs as much as 50 billion, while many of the countries we’ve been discussing could get to E10 on a fraction of that amount. “What they need, however, and don’t have at present, is an enforced biofuels policy that sends a very clear signal about how serious they are about the future. If that means using imports at times to fill the gaps, then so be it. The US, after all, imported a lot of ethanol from Brazil in the early days, so why not Asia?” l

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Positive signs for biofuels investors in India The future is starting to look increasingly positive for the biofuels industry in India with the country’s government revealing plans for a seven-fold increase in output over the next six years, backed by a strong declaration of practical and financial support for those who respond to the challenge of helping cut the country’s crude oil imports by 10% by 2022. India’s Oil Minister, Dharmendra Pradhan, told biofuels Bas Melssen of leaders in Delhi in early August that the country will need of Novozymes 6.75 billion litres of biodiesel and 4.5 billion litres of ethanol for blending, six years from now, creating an industry worth 500 billion rupees (€6.6 billion) in the process. He also announced blending goals of 5% for biodiesel into regular diesel and 10% for ethanol into petrol, while promising to provide investors with a “conducive policy environment” designed to support the development of biofuels. The Indian government also wants its green revolution to be substantially based on domestic supplies of raw materials, rather than being driven by imported products. With this message being delivered from a major conference platform in Delhi, the obvious question to be asked is whether or not the government’s ambitions, and promise of support, can be translated into action in the cold light of commercial reality, when delegates report back to their executive boards and financial backers. “The Indian government has been driving hard towards this position over the past year and a bit and has, as a result, really triggered the biofuels industry into action,” Biofuels International was told by Bas Melssen, Asia Pacific Biomass Conversion director for Novozymes, whose enzymes are currently being used by the majority of the world’s existing commercial-scale first generation and second generation ethanol production units. “Since Prime Minister Narendra Modi’s government took over, in fact, renewable fuels have been given increased government focus and support.” While adding that such government commitment towards biofuels was definitely needed when PM Modi took office in May 2014, Melssen says that this is “exactly what has happened”. “There are still challenges to be faced concerning biomass mobilisation and the necessary industry infrastructure, of course, but the passion and commitment needed to resolve such issues is certainly there,” he says. According to Minister Pradhan, India’s biofuels programme has the capacity to provide “better remuneration for farmers, address environmental concerns, reduce dependence on imports and help in foreign exchange savings”. India’s Minister of State for Power, Coal, New & Renewable Energy and Mines, Piyush Goyal, followed up with a call for the further enhancement of the country’s Viability Gap Funding Scheme for biofuels to be “evolved” in consultation with stakeholders. He also urged global players to get involved in advancing India’s biofuels sector, inviting stakeholders from around the world to “brainstorm and devise innovative technologies and novel ideas” to integrate the use of biofuels in the lives of the common man. “The government in India seems extremely determined with both the oil and renewables ministers saying all the right things about the opportunities relating to biofuels development in the future,” says Melssen. One global player, already signed up as impressed and ready to do business, is the UK, fresh from its referendum commitment to leave the EU. “The UK has a long-standing trade relationship with India and we want this to grow and prosper,” says UK business and energy secretary Greg Clark, whose first overseas trip since Theresa May became Prime Minister was to India for meetings with Minister Pradhan and Minister Goyal. “The UK is already the largest G20 investor in India and I want to nurture these trade links further, deepening our co-operation on areas such as energy and infrastructure.”

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Treasure under the sea Seaweed could be the perfect crop for biofuel production, but to make it happen, serious industrial investments are needed

t has been claimed that seaweed – or macro-algae – is the largest unexploited resource on our planet. Our oceans harbour more than 10,000 species, but we have just barely begun to harvest and cultivate them for our benefit. This is puzzling, considering that seaweed may just be the perfect biomass crop: no fertilisers, no freshwater, no pesticides, no land use, no food-for-fuel debates,

up to 70% fermentable carbohydrates, and growth rates comparable to our most productive agriculture crops. Being large, marine plants with holdfasts, seaweeds can grow attached to simple floating structures in the open ocean. With no need for land-based ponds or advanced photobioreactor systems, large-scale lowcost farms, which utilise the virtually unlimited ocean space, are easy to envisage.

Using just 1-2% of the ocean surface for seaweed farming could equal the world’s total agriculture output. The current status In Asia, seaweed is a highly valued resource with more than 30 million tonnes farmed annually, making it one of the largest biomasses we harvest from our oceans. More than half of this volume goes directly to human consumption as

China Sangou Bay seaweed farm

healthy “sea vegetables”, while the remainder has various industrial uses (biopolymers, animal feed, and fertilisers). In Europe, seaweeds are virtually unexploited, but have in recent years received a surge in interest both as a new “super food” endorsed by celebrity chefs like Jamie Oliver and for their potential as a bioenergy crop. There is a growing number of seaweed research projects and scientific publications, largely driven by bioenergy research programmes. The last time seaweed was seriously considered as a bioenergy feedstock was in the US during the last great energy crisis in the 1970s. At the time, large government-funded research programmes on offshore farming and conversion to biogas were initiated, but quickly abandoned as the oil price went down. The current efforts to establish large-scale seaweed farming appears much more sustained, partially due to the ongoing transition to a renewable energy society, but also due to the growing interest in non-energy uses such as food. However, despite the

20 september/october 2016 biofuels international

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Seaweed Energy Solutions’ carrier Harvest in Norway

Seaweed Energy Solutions’ carrier patent illustration

high media visibility and the considerable research funding available, no serious industrial efforts on large-scale seaweed farming have been attempted and the first industrial scale seaweed energy farm seems to be far away. Why is that?

is based on small-scale, commercial farming for food, with a parallel public grant-driven development of more advanced farming and processing technologies performed by academic institutions and applied research institutes. The first industrial-scale commercialisation is expected to be achieved by biorefinerytype processing, targeting high-value compounds for biomedicals, functional foods, and cosmetics – markets which have the needed price levels to bridge the gap between small-scale food production and large-scale energy. Only once the farming technology has matured through years of gradual improvements in scale and sophistication can large open-

Challenges One of the main reasons is that no “off the shelf” seaweed farming technology is available. The vast majority of seaweed farms in Asia are based on very labourintensive, low-tech means, with no real potential for technology transfer to highcost countries. All farming structures, vessels, and deck equipment must therefore be developed from scratch, which in turn requires significant investments in marine engineering and technology transfer from fish farming, fisheries, and other offshore industries. Another major challenge is the biology. While agriculture crops have undergone 10,000 years of strain selection with gradual improvements in production yield, stress tolerance, and product quality, seaweeds are still in their primordial state. Large investments in controlled breeding programmes are therefore needed to optimise the genetic material for mass production. The good news is that the biotechnology

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revolution has made some fantastic tools available, which will enable a much more rapid progress in seaweed breeding than we have seen with land plants – but large efforts are still needed. The seaweed farming industry in Europe is still at a pilot scale where the production cost is still really expensive and is above the target cost for biofuels feedstock production. In order to trim the costs to break-even levels, proper investments and transfer of technology from other industries, as well as reductions in cost due to benefits of scale, are required. Future outlook The current development path of seaweed in Europe

Seaweed Energy Solutions’ pilot farm

ocean farming for energy be expected to be economical. This development path could in fact work and may bring us to a stage where sustainable seaweed biomass becomes a competitive biofuel feedstock. The question to ask is how long will it take. A highly research grantdriven development strategy like this reduces financial risk for private companies, but is unlikely to make seaweed bioenergy viable in the next 20-30 years. The alternative could be a strategy based on a much bolder industrial effort, with large private investments in high risk, high reward seaweed projects. If big industrial players engage at an early phase and contribute with a commercial drive and industrial competence from the beginning, the technological development could accelerate and get us quicker to the realisation of this emerging and very exciting industry. What are needed are big industrial companies with both financial strength and a bold future vision. The timing for seaweed has never been better. So what are we waiting for? l For more information: This article was written by Jon Funderud, CEO at Seaweed Energy Solutions. Visit: www. seaweedenergysolutions.com

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algae feedstock Advances and perspectives into the algae biofuels industry

Algae today

ustainable production of high volumes of biofuels and bioproducts requires expanding beyond using solely traditional sugar and starch-based crops. The role microalgae can play in biofuels production has been known since the mid-20th Century. Algae, because of their high energy density and high lipid production rates from a relatively small cultivation footprint compared to terrestrial feedstocks (estimated to be up to 38,000 gallons per acre per year), make a very attractive substitute for petroleum. Yet, despite the advances in technology, full-scale commercial production has not yet come to fruition. In 1978, the US Department of Energy (DOE) created the Aquatic Species Program (ASP), a very large, comprehensive research effort to advance microalgae research. Early on, algae were studied as a feedstock to produce hydrogen, but the focus of fuel production then changed to biodiesel, and there it remained until 1996, when the programme was halted. It was successful in demonstrating the feasibility of algal cultures as a source of oil and resulted in important advances in metabolic engineering, especially in optimisation of strains with high oil content. However, during the course of the programme’s 18 years of existence, it also became clear that there were significant barriers to achieve an economically feasible process. In particular, the research underscored the need to understand and boost the biological mechanisms of algal lipid accumulation and to find creative, cost-effective solutions for both culture optimisation and process engineering challenges. Some of these challenges have been solved and some are still existing today, and as with all large-scale research, more challenges have cropped up.

the private sector, major players are oil companies Exxon Mobil, Shell, and Chevron. Former Microsoft chairman Bill Gates and several other technology billionaires have also invested in algae biofuels companies. There are more than a hundred companies all over the world who produce algae feedstocks and use them for a variety of applications. A search of companies currently utilising algae strains shows that the more “seasoned” companies (Solazyme/ TerraVia, Sapphire Energy, Algenol) have adopted a strategy that employs both short-term and long-term production goals. In the short term, high-value specialty products such as nutraceuticals are produced in order to offset the

The situation now

Due to the existing varieties of technologies and systems in algae production, in order to move the industry forward, it is of primary importance to understand the entire algae-to-biofuels supply chain through robust technoeconomic analyses (TEAs). The TEAs pathways being developed now by state agencies and research laboratories aim

Research and development has continued, post-ASP, to be funded by several agencies and private companies. In the US, the DOE and the Department of Defence have committed to supporting continued development of algae-based products and fuels. In

Former Microsoft chairman Bill Gates and several other technology billionaires have also invested in algae biofuels companies costs of fuel production, so that in the long term, once the cost of production is reduced, algae production can be increased to meet targets for commodity yields and to provide an abundant fuel supply. This approach suggests that there is still a need for de-risking the commercialisation of the algae-to-biofuels process through thoughtful analysis of strain selection and viable coproducts. Care for some TEA?

to identify pathways for algae production that offer the most opportunity to enable a practical and sustainable algae-based biofuels and co-products industry. Although much growth has occurred in the understanding of both the development of algal strains as well as the importance of factoring in the variability of regional and environmental conditions, the downstream processes (harvesting, dewatering, extraction, and separation) still require further improvements. Often, the lab-scale success is not matched by the ability of a successful bench strain to grow at a larger scale or under production conditions, so more efforts need to be devoted to advancing scalability. According to the DOE 2016 National Algal Biofuels Technology Review, there is another important point that needs addressing: “Near-term actions critical to progress in the field include collection and dissemination of quality and standardised data. Technology solutions are dispersed among many companies and research laboratories. The protection of intellectual property is a concern, but open-access data, information, and tools, such as those provided through the DOE-funded testbed programmes and the Los Alamos National Laboratory Omics Database, are critical to prevent duplication of mistakes and to advance the field. Defining standards, metrics, and best practices for analysis and quality controls for data will facilitate data management and dissemination programmes. Collaborative sharing of raw biomass and feedstock for downstream processing and conversion researchers to test would also benefit the entire field.” Given the sheer amount of research and innovation accumulated in the past 40 years, algae remain one of the most promising feedstocks to help a sustainable biofuels and bioproducts industry. How soon algae biofuels will be ready to occupy a prominent place in the energy portfolio will depend on how robust the R&D global effort can be, as well as on more investments in nontraditional (disruptive) technologies. l For more information: This article was written by Sabrina Trupia, research director at National Corn-to-Ethanol Research Center at Southern Illinois University – Edwardsville. Visit: www.ethanolresearch.com

22 september/october 2016 biofuels international

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FUELS OF THE FUTURE 14th International Conference on renewable mobility 23.–24. January 2017, Berlin • More than 500 delegates • 14 different panels • More than 60 speakers • Networking and exhibition opportunities

More than 500 participants from around the world are again expected in January 2017, among them representatives from raw material production and logistics, biofuel producers, representatives from the oil industry, from vehicle technology and the automotive industry, from politics, auditors and environmental verifiers, from the certification systems along with scientists and researchers. 14 panels and more than 60 speakers offer an extensive range of presented topics. ACCOMPANYING EXHIBITION In addition, the conference provides you with an opportunity to introduce your company or your institution to an international industry audience with an information booth in the entrance hall of the congress centre or to be represented as a sponsor. Furthermore, scientific institutions are given an opportunity to present scientific results in a separate poster exhibition. The German Bioenergy Association will gladly provide further details.

www.fuels-of-the-future.com

Gold-Partner:

Silver-Partner:

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Our logotype, the ® mark and our clover in purple on a white background.

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additives The importance of ensuring the safety of biodiesel additives

No harm intended

o make diesel fuel and biodiesel (FAME) safe to use, a variety of additives can be used. Among these, middle distillate flow improvers (MDFI) or biodiesel flow improvers (BDFI) and wax anti-settling additives (WASA) are added to improve the fuels’ low temperature performance. Cetane number enhancers are added for better combustion and oxidation stabilisers are used for higher stability. For biodiesel, oxidation stability is a very important parameter. With the revision of EN 14214 in 2010, the minimum value for oxidation stability was increased, hence an oxidation stability of eight hours instead of six hours has to be guaranteed. The use of additives is common practice to meet the high product stability demands. France even has enacted regulation requiring the addition of 1,000mg/kg BHT (butylhydroxytoluene) in biodiesel. BHT is a sterically hindered phenol, which suppresses autoxidation by acting as radical scavenger. Apart from BHT – the first oxidation stabiliser used in biodiesel – a great variety of over 50 oxidation stabilisers from different producers are available on the market. Oxidation stabilisers are not only applied to biodiesel used as pure fuel (B100) but also to biodiesel used as blend component in diesel fuel. However, within Europe biodiesel is primarily used as blend component as the European diesel standard EN 590 allows up to 7% (v/v) FAME in diesel fuel (B7). In 2015, most European countries introduced the EN 16709 standard, which allows up to 20 or 30% (v/v) FAME as blend component in diesel

fuel (B20/B30). Due to the lower oil prices, B100 is only available in a few countries. Because there are so many different oxidation stabilisers with different structures, unwanted interactions of the additives between each other are possible, as well as with diesel fuel, its additives, or the engine oil. To ensure a safe application of additives with no negative interactions (e.g. incomplete combustion, corrosion, increased emissions, or plugging of filters and nozzles), different so-called no-harm tests have been developed. The test procedure In cooperation with the mineral oil industry, the German Association Quality Management (AGQM) has drafted a catalogue of test methods to test biodiesel oxidation stabilisers for possible unwanted side effects. This no-harm test comprises minimum requirements, such as the unchanged safety-related properties of biodiesel (e.g. flash point, water hazard class), no alteration of the standard parameters beyond the limits set according to EN 14214 (especially ash content and flash point), and the submission of an explicit application description for the additive. The new product must not show any interaction with already approved products regarding turbidity, precipitate, and colour. Furthermore, the induction period of biodiesel must be increased by at least two hours in comparison to biodiesel without oxidation stabiliser. Despite the minimum requirements, the tested product has to pass a DGMK

filtration test 663, an engine oil compatibility check derived from DGMK 531-1, and an XUD-9 test according to CDC F 23 1-01 (engine test – nozzle fouling). Moreover, the relative efficiency of the tested oxidation stabilisers corresponding to BHT is determined according to a defined method in four scenarios: • FAME from standard production • FAME from standard production, aged • Distilled FAME • Distilled FAME, aged The aim of this procedure is to take into account the different production characteristics and variations in fuel properties without over- or underestimation of the individual cases. Relative efficiency is especially interesting for additive producers to see whether their product is more or less effective than BHT. This no-harm test is not only used for oxidation stabilisers added to biodiesel fuel but also for

those added to biodiesel used as heating oil component. At the moment, AGQM together with the mineral oil and additive industry is developing an additional no-harm test for biodiesel flow improvers. Some of the current tested additives could not pass the no-harm test, but their issues could be verified, solved, and improved in a following test round. This shows that no-harm tests are essential to ensure the safety of additives. Products that pass the no-harm test and fulfil the above criteria are published on AGQM’s no-harm list on their homepage. In 10 test rounds, 47 products could be added to the no-harm list. Interested additive producers can apply for AGQM’s 11th test round, which will start in October 2016. l

For more information: This article was written by Maren Dietrich, quality manager at AGQM. Visit: www.agqm-biodiesel.de/en

24 september/october 2016 biofuels international

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choose wisely. Don’t get stuck at the starting line with a first-generation renewable fuel. The revolutionary IH2 technology converts virtually any type of non-food biomass feedstock – such as wood, agricultural residues, municipal solid waste, and algae – directly into fully fungible transportation fuels such as agricultural residues, municipal solid waste, and algae – directly into fully fungible transportation fuels such as gasoline, diesel, or jet fuel. Developed by GTI and exclusively licensed by CRI Catalyst, this process can now take organic material and common everyday waste and turn them into fuel and export steam to help keep our world running smoothly. Let CRI help you find a first-place solution to help fuel your business.

It is all part of our commitment to delivering innovation. CRI Catalyst refers to certain of the companies of the Royal Dutch/Shell Group which are engaged in the catalyst business. Each of the companies which make up the Royal Dutch/Shell Group of companies is an independent entity and has its own identity.

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Oxidation stability

additives

Oxidation stability of UCO biodiesel is more variable than its properties at low temperature. Samples analysed by Chimec have showed the stability varies between 0.8 and 6 hours (specification EN14214:2012: at least 8 hours). This parameter may be influenced not only by the raw materials themselves, but also by the temperatures used in the frying process, as well as the "age" of the sample.

Chemical additives in the production of UCO-based biodiesel Unlike cold flow properties, oxidation stability can always be improved through the use of specific

Adding to the mix

additives. Treatment with antioxidants is necessary not only to meet the specification, but also to avoid physical-chemical degradation phenomena, such as the formation of sludge and organic fouling, increase in total sediments, increase in acidity, etc. It should be noted that the mixing unstable biodiesel with diesel could significantly decrease the stability of the B7 blend.

sed cooking oils any reduction in CFPP. (UCO) are becoming Table 1 illustrates a more and more laboratory study conducted interesting for the by Chimec on the response production of biodiesel, of a biodiesel flow improver especially after the restriction if injected into a biodiesel of the European Directive produced from different 2015/1513, which limits the ratio of rapeseed and use of biofuels deriving from UCO methyl ester. food crops. UCOs are listed in the part B of the Annex Oxidation stability IX among the raw materials which are not considered Oxidation stability of UCO Graph 1 – Improvement in oxidation stability of B100 from “advanced” but can count Graph 1 – Improvement in oxidation stability of B100 from pure or blended UCO biodiesel is more variable pure or blended UCO twice their energetic content, than its properties at low except for different internalFilter blocking tendency temperature. Samples rules by the member states of produced biodiesel. which means a composition analysed by Chimec have Diesel fuels’ filterability and their filter blocking tendency (FBT) are among the most discussed topics by (for instance in Germany and UCO is characterised intermediate between palm showed the stability varies producers and/or suppliers of biodiesel, as well as by technical committees and research institutes, due to Italy they are single-counting). by high variability in its (high palmitic acid), soybean, between 0.8 and 6 hours The increasing interest in quality, depending on the and rapeseed oil. Generally (specification EN14214:2012: such raw materials is also due composition of the base oil speaking, the higher the at least 8 hours). This to the significant reduction and the frying conditions palmitic acid content, the parameter may be influenced in greenhouse gas (GHG) (temperatures, frying cycles, more difficult it will be to not only by the raw materials emissions, especially after type of food fried, etc). reduce the cold filter plugging themselves, but also by the the amendment of the GHG point with flow improvers. temperatures used in the emission saving thresholds for Cold filter plugging point If a flow improver treatment frying process, as well as biofuels by the EU 2015/1513. is normally effective on the “age” of the sample. Biodiesel produced from Biodiesel’s behaviour at low biodiesel consisting of a Unlike cold flow properties, UCO can guarantee GHG temperatures is determined mixture of rapeseed methyl oxidation stability can always emission savings higher than quite exclusively by its fatty ester and 20-50% of used be improved through the 80%, fully complying with the acid distribution, which is cooking oils, the treatment use of specific additives. new European requirements highly variable if produced on 100% UCO is much more Treatment with antioxidants even for new installations. from UCO as it depends critical. Some cases have is necessary not only to meet The critical issues of mainly on the factors proved that it is possible to the specification, but also UCO-based biodiesel are, mentioned earlier (raw reduce the CFPP of about to avoid physical-chemical firstly, the available quantity. materials, type of food, 5°C below the blank value degradation phenomena, such UCO collection has to be etc.). Commonly biodiesel typically comprised between as the formation of sludge strongly improved to make the possesses a high palmitic acid -5 and +3°C. But, on the other and organic fouling, increase feedstock more established C16:0 (10-14%), oleic acid hand, there are often cases in total sediments, increase in the market. The second C18:1 (40-58%), and linoleic where even high dosages of in acidity, etc. It should be issue are the final properties C18:2 (15-35%) content, flow improvers do not produce noted that mixing unstable ble 1 – Responsivity of a biodiesel flow improver on UCO/RME based biodiesel biodiesel with diesel could significantly decrease the stability of the B7 blend. UCO (%) 0 10 20 30 40 50 60 70 100 RME (%)

100

Blank

-13

-10

-9

-8

-7

-6

-4

-11

-10

-7

-9

-5

1000 ppm 2000 ppm 2500 ppm 4000 ppm

-11 -23

-19

-18

-21 -20

-16

-10

Filter blocking tendency Diesel fuels’ filterability and their filter blocking tendency (FBT) are widely discussed topics debated by producers and/or suppliers of biodiesel, as well as by technical committees and research institutes. This is because they see many

idation stability 26 september/october 2016 biofuels international

blocking tendency improvers significantly improve the filterability of the BX fuels even at low dosage rates. Values of FBT below 1.5 are commonly considered appropriate.

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Graph 2 – Improvement in filter blocking tendency of B100 from pure or blended UCO

Graph 2 – Improvement in filter blocking tendency of B100 from pure or blended UCO serious drawbacks on these In the case of UCO issues. These phenomena biodiesel mixed with mineral Microbiological contamination seem to stem from a wide gasoil, microbiological diffusion of biodiesel used elements should be even UCOs may contain concentrations of elements definable atypical for this type of fuel (for instance, as such or blended with more accurately controlled. mineral gasoil for fuelling It is, unfortunately, a wellnitrogen), which have ended up in the oil from substances that have been fried in the product. For this type vehicles. Most frequent known fact that B7 blends of biodiesel, processors should check the microbiological contamination in order to avoid issues during issues range from filter are considered to be a near storage. Microbiological contaminations grow exponentially and even during a short storage period it is clogging at service stations or ideal breeding ground for fungi possible for critical conditions to arise. These include the formation of substantial amounts of sludge on the depots to the blockage and and bacteria. Moreover, even bottom of the tanks. rupture of vehicles’ filters. a small amount of nitrogen The issues are getting and sulphur is needed for In the case of UCO biodiesel mixed with mineral gasoil, microbiological elements should be even more worse due to the significant bacterial reproduction, both accurately controlled. It is, unfortunately, a well-known fact that B7 blends are considered to be a near increase in the use of secondanaerobic (so called sulphateideal breeding ground for fungi and bacteria. Moreover, even a small amount of nitrogen and sulphur is generation biodiesel obtained reducers) and aerobic. If the needed for bacterial reproduction, both anaerobic (so called sulphate-reducers) and aerobic. If the used from waste raw materials, used biodiesel is already biodiesel is already contaminated, the bacterial issues will get much worse. In case of such contamination, a like waste vegetable oils contaminated, the bacterial suitable biocide treatment should be considered. and animal fats. Additives issues will get much worse. In From Basic Engineering called filter blocking tendency case of such contamination, to For more information: (FBT) improvers significantly a suitable biocide treatment improve the filterability of should be considered. l This article was written by Stefano Cacciatori, technical engineer at Chimec. Visit: www.chimec.com Full Turnkey Project the BX fuels even at low dosage rates. Values of FBT Single Point Responsibility through below 1.5 are commonly considered appropriate. EPC or EPCM+© with guaranteed:

Biomass Biodiesel Bioethanol Cogeneration

✔ Process Performances ✔ Time Schedule ✔ Budget

Microbiological contamination UCOs may contain concentrations of elements definable atypical for this type of fuel (for instance, nitrogen), which have ended up in the oil from substances that have been fried in the product. For this type of biodiesel, processors should check the microbiological contamination in order to avoid issues during storage. Microbiological contaminations grow exponentially and even during a short storage period it is possible for critical conditions to arise. These include the formation of substantial amounts of sludge on the bottom of the tanks.

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Engineers & Contractors Brussels • Belgium Tel.: +32 (0)2 634 25 00 Fax: +32 (0)2 634 25 25 E-mail: info@dsengineers.com For more information: This article was written by Stefano Cacciatori, technical engineer at Chimec. Visit: www.chimec.com

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Down with deposits Operational cost reductions through evaporator deposit control

ith operational costs rising in many areas of an ethanol production facility, profit margins continue to get tighter and tighter. Enhancements made to the production process itself are one way that plant operations can help to increase yield and efficiency, improving the overall profitability of the facility. One area that ethanol producers can look to for process improvements that lead to cost reduction is the evaporators. Stillage from the bottom of the beer column (usually containing 15% solids) is sent to centrifuges, which separate the coarse grains of the stillage from the more soluble factions. The remaining soluble factions, called thin stillage, exit the centrifuge and are sent through the evaporators. It is here that water is further removed from the thin stillage, resulting in a 35-50% solids mixture called syrup. Evaporators are typically multiple-effect trains that utilise steam to provide the heat needed to concentrate the syrup. In the process of evaporating water from the syrup, if the evaporators are not functioning efficiently they will consume excessive amounts of energy, lengthen

the evaporative process, and negatively impact yield. Solutions to the problem One of the causative reasons evaporators do not operate efficiently is linked to the quality of the water in the syrup being evaporated and the impurities contained within that water. Over time, mineral scales and organic deposits will precipitate out of solution and accumulate on the surfaces of the evaporators. The effect of these deposits can be insulating on the evaporator, requiring the units to work harder and longer, consuming more energy along the way. In an effort to compensate for the presence of these deposits on evaporator surfaces, ethanol producers have several options: 1. Increasing steam use â&#x20AC;&#x201C; by applying additional energy (BTUs) to the evaporators, even with deposits covering their heat exchange (evaporative) surfaces, ethanol producers can overcome the insulating impact they create. However, this option is expensive and can impact the syrup quality as it fluctuates when conditions continue to worsen.

2. Increasing downtime â&#x20AC;&#x201C; by taking the evaporators offline and subjecting them to both mechanical and chemical (acid) cleaning, the deposits can be removed and efficiency can be restored. Obviously, this will hamper production yield and can have a detrimental impact on the integrity of the evaporators themselves. To enhance process uptime and protect the integrity of the evaporators themselves, Veolia Water Technologies has developed an enhanced portfolio of deposit control and clean-in-place (CIP) additives specifically for ethanol evaporators. The premier product in this line is Hydrex 2338, a proprietary blend of inhibitors and dispersants that effectively prevents mineral scaling and reduces organic fouling in all stages of the evaporation process. When properly applied within dosages that meet all regulatory requirements, ethanol producers can use Hydrex 2338 to reduce sulfuric acid use, CIP costs, cleaning frequency (downtime), and other related costs. Case study The scenario above was evident in a 100mgy Midwest

US ethanol plant that was experiencing heavy mineral deposition in its evaporators. The build-up resulted in elevated steam pressures that inhibited the plant from increasing production rates. To compensate, the plant was continuously feeding sulphuric acid to maintain the pH low enough to minimise these fouling tendencies. Costs associated with the acid feed itself, the downtime for bi-annual hydro-blasting and chemical cleanings, as well as the inherent employee exposure risks to a dangerous chemical were increased to keep the plant operating at less than desired production rates. Through its on-site service staff, Veolia analysed the operating data and performed a thorough analysis of the incoming process stream to the evaporators. The evaporator deposits were analysed and the primary constituents were found to be magnesium phosphate and calcium oxalate. Combining the on-site analyses with process modelling capabilities, Veolia initiated a deposit control programme involving the use of Hydrex 2338, while significantly lowering acid feed to control pH. Product was fed into the first effect evaporator

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control through the system. The accompanying photographs taken during boroscope inspections from inside the evaporator tubes depict the tubes before (fig 1) and six months after (fig 2) the initiation of Hydrex 2338 feed to the thin stillage. As shown in figure 2, after only six months the feed of Hydrex 2338 proved effective in removing mineral and organic deposits from the surfaces of the evaporator tubes, restoring lost efficiency and reducing operational costs. The addition of Hydrex

Figure 1

Figure 2

via a standard metering pump and injection quill. A drawdown assembly was used to ensure product feed rate was consistent with the flow of thin stillage. Chemical tests were conducted on the inlet and outlet streams of each evaporator stage, to measure the transport levels of the deposit forming impurities and ensure effective

2338 into the evaporator feed provided an additional benefit by having an immediate downstream impact on the operation of the centrifuges used to separate corn oil from the evaporated thin stillage, or “syrup”. The same impurities that were sequestered in the evaporators were creating deposits in the centrifuges as well, requiring an increase in the condensate sparges (cleanings) to operate effectively. The economic impact of effective deposit control in evaporators operating in a plant of this

size can be quantified as presented in the table below. Due to the impact that evaporator deposits can have on ethanol production, the permanent implementation of a Hydrex 2338 programme can provide a plethora of benefits and allow plants to reduce costs, readjust operational budgets, and improve production safety, reliability and yield. l For more information: This article was written by Tim Clark, technical director and Ted Lawson, marketing director at Veolia Water Technologies Industrial Solutions. Visit: www.veolia.com

Expense area

Annual savings Cost factors

Sulphuric acid

$202,800

Avoidance - 39 trucks at $260/tonne

Hydroblasting services

$78,400

Avoidance – Clean eight evaporators every two years

Evaporator steam

$188,500

Reduction – Using 3,000lb/hr less steam

Safety

N/A

Avoidance – Acid truck unloading, feed and handling

Maintenance costs

$8,000

Avoidance – Replacement of one CIP pump, labour and piping

Production increases

Variable

Vary per plant, based on design and operation

CIP

N/A

Vary per plant, based on system requirements

Total

$477,700

Annual cost savings

WATER TECHNOLOGIES

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biofuels water services Turning to experts when microbial control issues occur in cooling water can save ethanol producers money and time

Keep one’s cool

icrobial control in the cooling water systems of ethanol plants can be as challenging as it is important. That was the recent case with a 190 million lpy ethanol production facility in the US. As part of an ongoing maintenance programme, the plant’s operators were using a chlorine oxidant programme to control bacteria and algae in the cooling system. The results, however, were unsatisfactory. Algae was visible in the cooling towers, an obvious indication of poor microbial control. This was a significant issue for the plant. Algae in the towers likely meant microbiological fouling in other parts of the system as well. Water flow through the cooling tower and heat exchangers was being impeded, resulting in reduced cooling capacity, an inefficient manufacturing process, and greatly reduced productivity. The plant managers were also facing an additional problem, which they thought could be connected to poor microbial control. They were being forced to frequently replace the stainless steel plates in their heat exchangers due to excessive corrosion. Evaluating the problem To address these problems, chemical manufacturer Solenis’ applications experts were called in to evaluate the plant’s overall cooling water programme. They found that the plant was maintaining a cooling water operating pH between 8 and 9. Unfortunately, chlorine is not very effective at pH values above 8 and adding

additional amounts has little or no impact on controlling algae and bacteria. Simply put, the return on the plant’s investment in the additional chlorine to control fouling in the cooling tower was zero. Making matters worse, the excessive chlorides in the plant’s cooling water were accelerating corrosion of the mild steel piping, as well as promoting crevice corrosion of the stainless steel plate and frame heat exchangers. Most likely three corrosion mechanisms – microbiologically induced, under deposit, and chloride stress – were occurring separately or simultaneously. Recommending a solution The Solenis team recommended that a chemistry change, combined with the use of a unique diagnostic technology to monitor the programme’s key performance indicators (KPIs), would immediately resolve both the microbiological control and corrosion problems. The chlorine was replaced with Biosperse XD3899 microbiocide, a Solenis oxidising chemical that is effective at higher pH levels and substantially less corrosive to mild or stainless steel. The unique diagnostic technology was the OnGuard 2-plus control system. While seeing inside an operating plate and frame heat exchanger is not possible, this technology duplicates critical heat exchanger operating conditions and measures real time KPIs, including metrics for pH, oxidation reduction potential (ORP),

surface temperatures, and flow velocities, as well as fouling, corrosion, and pitting of various metallurgies. This allows the chemistry being applied to be evaluated in terms of delivering the desired results in real time. In this US ethanol plant, monitoring with the OnGuard 2-plus control system quickly indicated the improved control of microbiological fouling in the system. The reduction of algae in the cooling towers was further confirmed. In addition, the control system showed that the corrosion and pitting rates were in a much more acceptable range using the Biosperse XD3899 microbiocide. This remedy will prolong the life of the plant’s piping and heat exchangers and reduce downtime and repair costs. This case history is just one example of an emerging problem in many ethanol plants around the world. Years of rapid growth in the industry, followed by some economic rough patches, have kept ethanol producers keenly focused on the process side of their operations. As a result, the maintenance of important operational areas has often been overlooked with significant economic consequences. For example, another US ethanol plant worked with a vendor who did not apply the latest monitoring and control technologies and was recently forced to replace its cooling towers five years earlier than is generally necessary. l

For more information: This article was written by Andrew Ledlie, biorefining marketing manager at Solenis. Visit: www.solenis.com

Measurement: the first step to water treatment improvement “If you can’t measure something, you can’t understand it,” says organisational performance expert H.James Harrington. “If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” With respect to water treatment programmes in ethanol plants, there are two critical measurements of performance. Key performance indicators (KPIs) show whether a plant is on track to meet the goals of its overall strategic water treatment programme. These goals could include reductions in scale build-up on critical heat exchangers, corrosion of cooling system components, or biofilm formation. All of these negatively affect the heat transfer process, reducing productivity and directly impacting a plant’s bottom line. Key operating indicators (KOIs), in contrast, measure how well the tactics employed to treat the water are working. For example, measuring KOIs such as pH levels, total dissolved solids, or residuals of water treatment chemistry could indicate whether or not the programme is heading in the right direction. However, KOIs can be very misleading if they are not interpreted correctly, which is why working with a knowledgeable partner using the latest technology can help avoid serious missteps.

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We invite you on a Shared Journey Forward

We are on a journey towards providing the best services experience for you. To keep your processes running smoothly and to optimize your production, explore our reliability and performance services. Our new technologies and industrial internet solutions upgrade your processes to the next level. On our Shared Journey Forward, we are committed to putting safety first, working close to you, earning your trust and providing the right solutions to your needs. Step on board at valmet.com/sharedjourney

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biofuels water services Innovative water recycling and reuse systems do not only make ethanol plants more environmentally friendly, but they also cut operational costs

Options for reuse

Jared Galligan, capital projects manager at US Water

very day in the US, more than 355 billion gallons of water are withdrawn from surface and ground water sources to serve industry and the public, according to a 2010 report from the US Geological Survey. As the strain on water sources steadily increases, it is critical for all water users to work towards water conservation. While nearly half of the water withdrawn serves thermoelectric power generating stations, ethanol production facilities are also under scrutiny to decrease their water usage. The production of ethanol takes on average 2.5-4.5 gallons of water to produce one gallon of ethanol, and as the industry continues to grow, many existing ethanol facilities are implementing water recycling and reuse practices. The primary drivers towards water recycling and reuse are environmental compliance and water availability. Every five years, a facility that discharges to a public body of water must apply for and renew its National Pollutant Discharge Elimination System (NPDES)

permit. During the renewal process, the local regulating authority may choose to impose tighter discharge restrictions on specific constituents. In states like Iowa, iron and sulphate are targeted, while in Minnesota and Wisconsin, phosphorus is under greater scrutiny. The ongoing permitting costs, costs to comply with new discharge restrictions, or the threat of not being granted a permit are driving more facilities toward minimal or zero liquid discharge (ZLD) operations. For those facilities that receive municipal water or discharge to a publically owned treatment works (POTW), water availability may become an issue. As infrastructure continues to age and the costs to replace approach the hundreds of billions of dollars nationwide (according to a 2012 Washington Post article) communities may not be able to supply facilities and may be forced to choose between supplying residents or supplying industry. Those plants that are still served from municipal water sources may face double digit increases in water or sewer costs to maintain their services. It is these costs that have companies looking at alternative water sources, installing their own intake systems (surface or well), or evaluating reuse options within the facility.

often require a combination of chemical and mechanical solutions to be successful. They must also be designed by someone familiar with ethanol plant water quality requirements, air and water permitting, and the nature of ethanol plant operational cycles. While it is easiest to design a green field plant to operate with a water reuse or ZLD system, any plant in operation today must look to retrofit existing equipment. Generally speaking, the simplest and lowest cost option is to install equipment at the front end (raw water intake) of the plant to minimise waste water generation at the back end of the plant (i.e. cooling tower blowdown). Because there is no single design that works for all applications, it is important to find the right integrated solution for each individual plant. In order to create a successful water treatment system design, it is necessary to have a thorough understanding

of the chemistry and equipment aspects and plant conditions, such as plant design, operating conditions, available water quality and quantity, available personnel and training, capital and operating budgets, and environmental restrictions. Most water reuse and ZLD systems use one or multiple of the following water treatment technologies, in order of capital costs: chemical feed systems, membrane filtration, reverse osmosis, evaporation ponds (if the climate allows), cold lime softening, and evaporation/crystallisation. While evaporation/ crystallisation may seem like the simplest solution, its initial capital investment and ongoing energy costs greatly exceed all other technologies combined. Fortunately ZLD is a treatment method that not only helps reduce water usage, but also focuses on eliminating water discharge completely. ZLD systems have become more prevalent as regulations and environmental

A matter of cost Water reuse and recycling can be one of the most difficult water treatment processes to design and implement. These treatment processes

Cold Lime Softening Clarifier. Change to Cold line softening clarifier

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Graywater reuse solutions have used a combination of: filtration, microfiltration, ultrafiltration (shown above), and reverse osmosis

compliance is tightened, public perception of industrial manufacturing’s impact on the environment is heightened, and concerns are mounting over the quality and quantity of water supply. These technologies can deliver valuable financial returns where water conservation and strict permitting regulations have significantly increased the cost of industrial use of freshwater, and in some cases, continued operation. Dry grind ethanol production facilities are particularly well suited candidates for ZLD systems as the ethanol process is unique in that it is a net water consumer. Water is required for fermentation that is later removed via the corn drying process. A carefully designed ZLD water treatment system replaces this process water makeup with waste streams from other processes. So long as the process water quality requirements are studied throughout the design and careful consideration is given to the operating conditions of the plant, a facility’s discharge stream can be completely eliminated. The first ZLD Water Treatment System in a dry grind ethanol facility in the US was commissioned at a Western ethanol plant. After analysing local water quality and discharge restrictions, a cold lime softening (CLS)

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based system was selected. This decades-old technology that is making a big comeback today allows dissolved minerals, like calcium, magnesium, silica, iron, and others to precipitate into a solid form using commodity, low-cost lime. The collected solids are dewatered and disposed of either in a landfill or applied as a soil amendment to local farmers. The CLS process is one of the only known technologies that removes dissolved minerals from water without creating a more concentrated waste solution. The facility’s water treatment system produces excellent treated water quality low in hardness, silica, and suspended solids. A further benefit of the CLS process is that it is well suited to handle recycling of waste streams to allow continual removal of certain ions. When a Midwestern US ethanol plant voluntarily implemented a ZLD system in the interest of conserving water (as opposed to regulatory mandate), their first step was to conduct a careful review of their water source and its variability to create a facility water balance that allowed for ZLD operation. Fortunately, the facility was already operating a CLS system that allowed further waste stream recycling and freshwater use reduction.

The implementation of the ZLD process consisted of several key design changes: • The replacement of sulfuric acid for cooling tower pH adjustment with fermentation generated CO2 gas. This change removed additional sulphates from the plant wastewater. • The recycling of cooling tower blowdown and reverse osmosis reject to the front end of the water treatment CLS plant. The CLS process allowed removal of hardness, silica, and other problematic ions that limited cooling tower cycles of concentration and RO recovery rate. • The blending of wastewater into the process water makeup stream. With careful ion modelling and balancing, fermentation was unaffected. With the successful implementation of these water system changes, water usage dropped from 2.9 gallons of water per gallon of ethanol produced, to 2.0 gallons of water per gallon of ethanol produced, nearly a third reduction. Shades of grey As ground water sources become more limited, facilities old and new are looking at alternative water sources to supply their plant. One of the most common sources today is municipally treated wastewater, called grey water. This low cost, or sometimes free, water source is abundant and does not strain local water sources. While at first attractive from a financial perspective, grey water carries many concerns in designing a water treatment system. The most common concerns in using greywater centre around its variability from hour to hour and day to day, and its nutrient content. Constituents like phosphorus and ammonia, which are common and abundant in grey water, can be costly to remove

and if left untreated can lead to scale formation on heat exchange surfaces, corrosion, and other biology-based concerns. The suspended solids content is usually much higher than most groundwater sources and requires its own method of treatment. A Midwestern US ethanol facility implemented a grey water reuse system that eliminated their need for freshwater. While first designed to operate on potable water completely, during construction the facility learned the municipality could not supply the quantity of water required by the ethanol producer. Forced to find another water source, the municipality offered to supplement their potable water with grey water to meet their demands. The alternative water source changed the facility’s planned water treatment system to include microfiltration, a membrane-based filtration system excellent at removing suspended solids and other organics common to grey water, and additional reverse osmosis capacity. The plant has been operating successfully since system integration almost ten years ago. This facility was the first of its kind to use the technologies of microfiltration and reverse osmosis together for grey water reuse. As water reuse and recycling projects continue to take centre stage in a facility’s long-term environmental plan, water-related projects will become even more common. Creative engineering and treatment technologies will continue to drive their advancement and further water conservation. l

For more information: This article was written by Jared Galligan, capital projects manager at US Water. Visit: www.uswaterservices.com

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biofuels water services Preventing contamination by the Legionella bacterium should garner greater attention from the biofuels industry to stop it adversely impacting ethanol plants

Legionella under the microscope

ny water treatment professional can rapidly cite the benefits of controlling scale, corrosion, fouling, and microbial contamination prevention in cooling water systems. These issues have long been the foundation of cooling water treatment, and much of the focus with microbiological control has revolved around bacteria, fungi, and algae. Bacteria control was generally linked to the prevention of slime due to the relationship with increased potential for scale, corrosion, and fouling and the negative impact on heat transfer. While it is true that Legionella is a bacterium, its control deserves more attention. Why? Legionella bacteria can cause Legionnaires’ disease and Pontiac fever, collectively known as Legionellosis. An aerosol of Legionella originating from an environmental reservoir, such as a cooling tower, must be inhaled for the disease to occur. Persons that are over 50 years of age, smokers, or have underlying medical conditions, such as chronic lung disease or immunosuppression, are more susceptible to contracting Legionnaires’ disease. Legionnaires’ disease is an especially virulent form of pneumonia and has a fatality rate between 15-80%. Patients with Legionnaires’ disease generally require hospitalisation. Patients with

Pontiac fever will demonstrate flu-like symptoms but are not at risk of death. Healthcare professionals report cases of Legionellosis directly to the US Centers for Disease Control and Prevention (CDC) through the National Notifiable Disease Surveillance System and Supplemental Legionnaires Disease Surveillance System. According to the CDC, from 2000 to 2014 the rate of reported Legionellosis cases increased from 0.42 to 1.62 per 100,000 persons, corresponding to a 286% increase. The development and use of urine antigen tests are the most likely cause for the

Legionella bacteria can cause Legionnaires’ disease and Pontiac fever, collectively known as Legionellosis

The presence of Legionella in a building’s water system, such as a cooling tower, can lead to one or more undesirable consequences increased incident reporting. The presence of Legionella in a building’s water system, such as a cooling tower, can lead to one or more undesirable consequences. First and foremost, people can get sick and/or die. The plant could be mentioned in the media. Resources could be consumed to clean and sanitise contaminated water systems. In response to contaminated systems, cooling tower fans might need

to be turned off, resulting in a loss of cooling. The plant may lose production due to unplanned shutdown. Lawsuits could be filed, like the one in February 2016 for $100 million (€89.9m) against a Michigan hospital following a Legionellosis outbreak. Call to action Industrial facilities that possess a cooling tower should conduct hazard

assessment and risk mitigation on their system in order to establish minimum Legionellosis risk management requirements. They should then regularly ensure the effectiveness of their efforts through validation. There are several resources available to aid in this process, such as the ANSI/ASHRAE Standard 188-2015, the CDC Legionella WMP Toolkit, or World Health Organization (WHO) “Legionella and the prevention of Legionellosis”. During the hazard assessment, operators should look at their cooling tower system for three principle hazards. The first hazard is Legionella. If any Legionella is present, then a hazard exists. This hazard can be present in a biofilm or dispersed in the water. The second hazard is Legionella growth conditions.

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Suspended solids, iron, ideal temperature, and stagnation may be present and all contribute to hazardous growth conditions. The third hazard is Legionella dissemination. If drift eliminators are not working properly, then a hazard exists as cooling water aerosols could potentially spread Legionella even beyond the plant property. However, even if they are working properly, some volume of water is lost through drift. Consider a high-efficiency mist eliminator that is designed for 0.001% of recirculation rate drift loss. At 65,000gpm recirculation, this equates to 0.65gpm water loss. If the water system contains only one colony forming unit/ millilitre (cfu/ml), the system can spread 2,460cfu/min.

During risk mitigation, operators should determine the control strategies for each risk. They should include procedures for system start-up, shutdown, and maintenance. The test frequency for all mitigation procedures should be included, as well as remediation procedures when/if the plan does not yield the desired results. Procedures should include an emergency protocol when actual cases of Legionellosis are reported, and nonemergency protocols, when in the absence of the disease. Validation of a prevention programme can be achieved through disease prevention or actual Legionella testing. One could argue that if no person has been diagnosed with Legionellosis linked

to the cooling tower, the risk mitigation strategies employed are working. This validation method is fraught with legal risk and could lead to the potential death of an individual that contracts Legionellosis. Directly testing for Legionella through an accredited lab is another validation option. It was once believed that controlling the total bacteria levels in the cooling tower would result in control of Legionella. This is a myth. Legionella can be found in water with either high or low levels of total bacteria present and in clean or dirty systems. Direct testing is the only way to confirm the presence or absence of these bacteria. Keeping Legionella out of the water is the key to preventing infection.

Summary Diligent attention to the hazard assessment and risk mitigation programmes, coupled with regular Legionella tests revealing the absence of the bacteria, is necessary to reduce the risk of Legionellosis. Unfortunately, there is no consensus on what are considered dangerous levels of Legionella detected in a water system and the risk of infection. Therefore, whenever Legionella is found, steps should be taken to destroy it. The extra attention paid to eradicate Legionella from the system is worth the effort. l

For more information: This article was written by Randy McDaniel, strategic accounts manager at Weas Engineering. Visit: www.weasengineering.com

At PRIMA we gather, analyse and deliver deeper insights into commodities markets prima-markets.com

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biofuels retrofit comment When using PC systems, clicking the wrong button can have expensive consequences

Control system software: The forgotten retrofit

ometime in the summer of 2015 a new icon appeared on Windows desktops worldwide. It announced the arrival of Windows 10, urging PC users to upgrade immediately, and thereby reap numerous performance benefits at zero cost. This icon caused many system integrators and automation programmers to cringe. Why? Because they knew that the real cost of upgrading isn’t limited to the price of a Windows license. When it comes to retrofitting biofuel plants, this cost is too often forgotten. The launch of Windows 10 raised an unwelcome but recurring issue. Biofuel plants spend tens of thousands of dollars purchasing software and hiring system integrators to create and fine-tune their automation. The plant runs smoothly for a few years and then the control PCs begin to experience problems. Hard drives fail, users download malware, or bloatware slows the PCs to a crawl. Eventually, operating systems go out of date. Plant managers have recently had to contend with the Windows 10 upgrade, which seems to bully itself onto every computer running Windows 7 or 8. Untold numbers of operators have clicked that Windows 10 icon in a frustrated and futile attempt to make it go away! The unfortunate ones proceeded with the upgrade, and soon found their control

Biofuel plants spend tens of thousands of dollars purchasing software and hiring system integrators to create and fine-tune their automation

system altogether inoperable. The resulting downtime costs biofuel processors thousands of dollars in lost revenue. Naturally, system integrators are called in to fix these issues. But too often, a simple fix is not possible. Integrators can’t always buy a new PC, or wipe the hard drive and start over. Plant software is usually designed to work with a specific operating system, which may no longer be supported or even available (legally). The same is true for the supporting software, such as device drivers and virus protection, which are critically important. Most managers want to retain virus-free networking, after all! No matter how gifted or experienced an integrator

may be, sometimes there is no choice but to upgrade everything. And once again, plant managers are faced with a difficult financial burden. A lack of preparation for these issues only results in more cost, time, and stress in the software upgrade and restoration process. So what is the solution? Biofuel processors can take several steps to avoid downtime and minimise their costs in software “retrofits.” The first steps limit risk: 1. Save all installation disks in a safe place. This includes operating system and automation software disks (Rockwell, Siemens, Wonderware, etc). At best, it’s difficult to re-install software

when the installation disks are missing. At worst, it’s impossible. If your original integrator didn’t give you these (or at least copies), go find another integrator! 2. Save all software license information and make sure all licenses are in your company’s name. This is really important! Automation software is expensive. If you have to re-purchase legacy (that is, old) software, in particular, expect to pay a princely sum. Question your integrators if they claim that your automation software need not be licensed in your name. You paid for the license. But how will you prove that to the original vendor if your integrator disappears? Vendors will work with you

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to recover old software, but only if it’s licensed to you.

by means of an ongoing support contract or by new purchases, plan to update your automation software. This will ensure that your controls are safe, reliable, and compatible with your new operating system. Your software vendor or integrator should be able to provide advice on the most cost effective strategy to stay up to date.

new automation software isn’t often backward-compatible. This means a system integrator must re-program the plant’s controls (HMI, PLC, etc.) in the new software. The good news is that if this is done regularly, the amount of work is usually minimised. Every job is different, so it’s worthwhile to consult your integrator about the costs involved well ahead of time. In some cases, an 4. Budget for system ongoing service contract may integration costs. Unfortunately, be the15:59 smartest approach. Biofuels.pdf 1 31/08/16

3. Backup everything, regularly. Your integrator will have written a lot of custom code to work with your automation software. This code cannot be found on your installation disks. Make sure somebody has a recent image of your system or can restore everything back to its original form. A new hard drive or PC won’t fix anything unless someone can put the original software back onto it.

Above all, realise that software is very similar to hardware. With age it becomes obsolete, unreliable, and in our internetconnected world, even dangerous. It may sting to pay for all new software, again, but it will be necessary, and planning ahead takes much of the sting out of this often forgotten retrofit. l For more information: This article was written by John O’Hara, president of Wavetech. Visit: www.wavetechllc.com

4. Keep your control PCs dedicated to controls. Forbid operators from installing new software or browsing the Internet on these PCs. This prevents viruses and malware and also preserves system settings critical to your automation. 5. Be vigilant of automatic operating system upgrades. Don’t click the ‘OK’ button until you call your IT specialist or integrator and make sure this “upgrade” won’t render your control system completely unusable. Next, plan for the inevitable: 1. Budget for new PCs. PC hardware is not designed to operate flawlessly 24/7, for a decade. Plan to replace it at about five-year intervals to avoid disruptions from hardware failures.

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2. Budget for operating system upgrades. The lifetime of most operating systems is about two to three years, with mainstream support ending after five to six years. With care, it’s possible to operate for longer durations, but it gets increasingly difficult and costly. It’s convenient to upgrade the operating system when you replace the PCs, since it’s easy to find new PCs with the latest operating systems pre-installed. 3. Budget for automation software upgrades. Whether

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biofuels risk reduction How ethanol plants can best mitigate the risks posed by the current market place and managerial complacency

Staying ahead of the risk curve

ike any commodity-driven industry, ethanol production involves risk. Eroding profit margins, mismanaged buying and selling decisions, and shifts in global supply and demand are all risks that threaten the ability of business leaders to make balanced decisions. For ethanol producers, these risks are compounded by the challenge of navigating a complex regulatory landscape. A coordinated approach to risk management is needed to ensure that the best-laid plans are executed smoothly and continually adjusted, with involvement from the board of directors, the executive team, partner organisations, and production staff. The best risk management strategy is a comprehensive one, which effectively brings risks to acceptable levels across three major areas. Plant leaders should first consider ways to improve the implementation of risk management policies for commodity markets. They should also make use of approaches to make regulatory risk less daunting. Finally, they should explore how strategic planning can reduce the risk of complacency and the consequent loss of their competitive edge. The overarching theme for all aspects of managing risk is clear: plan and prepare, then monitor and modify. Above all, communication is king. Managing commodity risk Risk management policies feature agreed-upon strategies and documented guidelines designed not only to optimise profitability when trading commodities, but also to minimise the business risk of doing so. Generally, an ethanol plant’s risk management committee is tasked with creating the trading policy and monitoring their in-house commodity managers’ or external trading partners’ adherence to that policy.

While many plant boards go to great lengths to ensure that their policy allows them to take advantage of market conditions with a minimum of risk exposure, two critical components of risk policy are often overlooked, even in the most carefully crafted policies. The executive team of an ethanol plant is often small and its members may wear a number of hats. This not only creates a high level of trust between members, but also means it can be difficult to determine how to keep responsibilities separate when only a few people have to divide all the tasks. It is rare a trusted employee or trading partner would violate the risk policy on his or her own initiative. Most often, violations are either

Keeping apace of legislation can be, and often is, a full-time job in itself inadvertent or well-intentioned efforts to benefit the company by correcting for a minor mistake or oversight. Despite this, a strict separation of duties for everyone, from the company to the individual employees responsible for commodity purchasing, is a cornerstone of effective risk management policy. Segregation of duties can be accomplished very simply, but when staff is limited and trust is high, its importance can be overlooked. The plant’s general manager or CEO should work with the board’s risk management committee to place each task related to the trading policy into one of four groups of duties: committing (the actual trade activity), recording the trade, reconciling the records, and reporting on the activity. They then make sure that no

single person is responsible for all these activities in any given commodity area. Understanding is key Once duties are segregated, it bears remembering that reports must be understood to be effective. Strong organisations always ask themselves whether they view trade activity reporting as a burden or whether it provides valuable information to the team. While a risk management committee usually understands most of the policy they put in place, some members may have limited understanding of some of the more complex trading instruments that can be employed in today’s hedging strategies. In fact, many organisations receive daily or weekly activity reports, but few are formally trained to read and truly interpret them. Even if a plant is lucky enough to have a committee well versed in commodity strategy, at least a few seasoned board members outside the risk management team should be trained on the risk policy and truly understand it. This ensures that they can effectively monitor adherence to the policy, and help steer decisions about revising the policy when and if market conditions change significantly. Training need not be lengthy, but it should be ethanol-focused. It can be conducted in-house or by a consultant who specialises in biofuels commodity trading. Trade organisations often can help plants locate short one- or twoday training seminars for interested board members or executive staff. Such seminars are sometimes offered at a minimal cost by universities or agricultural extension services. Making compliance less daunting Staying ahead of the constantly changing regulations that govern the production and sale of biofuels is no small task, but

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or environmental standards can have a negative impact on public perception, which in turn can jeopardise the market for sustainable fuels products. • Access to resources Banks and lenders can take a dim view of plants with compliance violations, resulting in reluctance or higher rates when the time comes to finance an expansion or major equipment upgrade. The risk of complacency

The best risk management strategy is a comprehensive one to stop a domino risk effect

the risk of failing to do so can have large costs. Plants must know local, state, and national environmental standards, tax regulations, and occupational safety requirements. Additionally, they must also monitor and ensure compliance with evolving food safety requirements for animal feed products. Keeping apace of legislation can be, and often is, a full-time job in itself. Here too, however, a few key points bear repeating to help make the task a bit less daunting. First, it pays to get organised. Compliance does not mean much without proof, and that means being able to lay hands on proper documentation at a moment’s notice. Plant leadership may focus on having state-of-the-art monitoring equipment in the plant, yet fail to ensure that their basic back-office document and record storage systems take advantage of current capabilities for integrated systems. Consulting with an expert in software or IT solutions may seem low on the priority list for a manufacturing facility, but it may be the step that makes or breaks an inspection. As with commodity risk management,

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comprehensive training is a critical component of regulatory compliance. Production staff needs to understand why procedures are in place, and the leadership team needs to understand the impact compliance problems can have. The cost of (non) compliance Naturally, the primary purpose of a compliance strategy is to avoid the financial impact of fines, but there are other risks and costs associated with lack of compliance. • Public perception One risk is the danger of a facility being perceived by the public as hazardous or unhealthy. This is even more critical in an industry that strives to deliver the message that their product is more sustainable and environmentally sound than conventional choices. • Industry credibility The market for ethanol in most countries is still at least somewhat dependent on regulatory props, such as the US Renewable Fuels Standard, so any failures to comply with safety

Inertia is deadly. The greatest risk a plant runs, of course, is that of failing to remain profitable. In the narrowprofit environment that is likely to persist globally for at least the next year or two, scrupulous attention to efficiencies and vigorous investigation of opportunities are mandatory components of continued success. Initially, ethanol plant boards may start out with a proactive, “offense” approach, driving the business forward and capitalising on new “wins” and opportunities. Over time, they tend to shift focus to a more “defensive” stance, monitoring and controlling risks to the business. In fact, many current facilities have been producing ethanol for a decade or more, and often have many long-time board members and executives. While their experience can be a valuable asset, it can also sometimes lead to an “if it is not broken, do not fix it” mindset. This can put a plant at risk of falling behind in technology and efficiency standards. Successful boards counter this mentality by regular strategic planning sessions. Organised outside the scope of normal board meetings, these sessions allow the board to consider not only their options for one year, five years, or ten years down the road, but also to find the balance between risk taking and risk mitigation. Key components of a strategic planning session include a high-level analysis of a plant’s strengths, weaknesses, opportunities, and threats (SWOT analysis), a review of the organisation’s mission and priorities, and the creation of a game plan to fulfil that mission. l

For more information: This article was written by Connie Lindstrom, biofuels consultant, at Christianson & Associates. Visit: www.christiansoncpa.com

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biofuels sustainability Europe is pushing ahead with plans to adhere to RED rules and make its transport sector green

Which are the most sustainable biofuels?

dvanced biofuels are in the news as the EU considers the role of biofuels in transport post-2020. The European Commission (EC) recently published a report titled European Strategy for Low-Emission Mobility, which confirmed the need for biofuels for decarbonising transport, particularly aviation and heavy-duty transport into the future.1 The phase-out of food-based biofuels was confirmed, although it will be “gradual” with the aim that advanced biofuels take their place. They also acknowledged that the development of advanced biofuels would need to be incentivised, as without support they cannot compete with other biofuels. A blending mandate for advanced biofuels has been suggested. The EC’s thinking about food and advanced biofuels has been set out in the indirect land use change (ILUC) amendment to the Renewable Energy Directive (RED).2 Advanced biofuels are perceived as more sustainable. So, as Europe aspires to replace foodbased biofuels with advanced biofuels, let us look closer at their sustainability credentials. Defining advanced biofuels The ILUC Directive loosely

defines advanced biofuels as those with low ILUC impacts and high greenhouse gas (GHG) emissions savings. A positive list of feedstocks and fuels is included in Annex IX of the Directive, clarifying what advanced biofuels can be made from. These are mainly industrial and agricultural wastes and residues, but also included are algae, bacteria, and energy crops plus “renewable” fuels made from, among others, hydrogen or waste carbon dioxide, providing the energy input is renewable.

economic incentive of biofuel production has encouraged farmers to increase yields and bring unused land into production. These biofuels can also have high GHG savings. Sustainability is key The attributes of advanced biofuels and the best foodbased biofuels can be similar as discussed earlier. We should therefore focus more on sustainability criteria. It would be logical to promote and incentivise biofuels according to their sustainability, rather than using

Some food-based biofuels do not produce ILUC and have high GHG savings Interestingly, there is also a declaration in the ILUC Directive that not all foodbased biofuels actually cause ILUC. This note acknowledges that the situation is not black and white. Better farming practices, such as yield increases and intercropping, can produce food-based biofuels with no ILUC. Neither does the cultivation of under-used land for foodbased biofuels cause ILUC. In these cases, the extra

an imperfect categorisation between “advanced biofuels” and the rest. The most important sustainability criteria of biomass and biofuels are: • No deforestation or destruction of highly biodiverse or highcarbon stock areas • High GHG emissions savings • Protection of the wider environment • Respect for people’s land and labour rights

• Does not cause ILUC No deforestation or destruction of highly biodiverse or high carbon stock areas is a key concern. Direct land use change like this is already covered in the original RED, which prohibits conversion of these types of land after 1 January, 2008. The rule applies both to crop-based biofuels, e.g. food and energy crops, and agricultural and forestry wastes. It is a key pass/fail criterion for sustainability certification. Increasing availability of satellite tracking technology means that direct land use change can be verified more easily. Conversion of biodiverse and high-carbon stock land is a high risk in countries which have large areas of primary forest or highly biodiverse grassland. As the rule against conversion of this type of land rightly applies equally to both crops and agricultural wastes/residues, it is a key sustainability risk for some advanced biofuels. Feedstocks such as waste fats and oils or municipal waste are not directly associated with land-based production, and so are free from this risk. However, intermediate-type of wastes, e.g. palm fatty acid distillate (PFAD) produced from palm oil processing,

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is arguably providing economic returns to the palm industry and could be associated with deforestation. Some feedstocks for advanced biofuels carry a risk of deforestation, which is a key pass/fail for sustainability certification. High GHG emissions savings are the raison d’être for biofuels. Germany is already incentivising biofuels based on their GHG savings and it would make sense for other European countries to do the same. Incentives in the US and California also encourage biofuels with high GHG savings. Surprisingly there is no figure in the ILUC Directive for the GHG emissions savings that advanced biofuels should achieve. They just need to achieve the same savings as other biofuels, which will be 60% for new facilities and 35% rising to 50% for existing ones. The reason for this omission is not clear. Perhaps it is because some advanced biofuel processing routes are multi-step and can be relatively GHG intensive. Also, advanced biofuel processes are just being commercialised and yields have not yet been optimised. Low yields are bad for GHG savings. Conversely, food-based biofuels can have high GHG savings where cultivation and processing are optimised. The best sugarcane ethanol can achieve 80%-90% savings or higher (or 65% -75% after subtraction of ILUC factors). Waste and residue based biofuels processed using established technology have very high GHG savings (greater than 80%-90%) as, unlike crops, they are assumed to have a zero

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GHG intensity at the point they are generated. GHG intensity due to transport and processing are the key inputs to their overall GHG intensity. However, some processing and agricultural residues may have to carry a proportion of the GHG intensity of the upstream processes into the future as policy evolves, leading to a reduction of their GHG savings. Protection of the wider environment, people’s land, and labour rights are aspirations in the RED, which are not reflected in concrete requirements. Although these aspects are largely covered by other European legislation, they may not be protected in other parts of the world. A recent appraisal of the EC’s oversight of biofuel sustainability by the European Court of Auditors criticised the omission of these sustainability criteria.3 They are equally important for energy crops and agricultural wastes. Preservation of soil quality and carbon content is also a key sustainability consideration for agricultural and forestry residues. Leaving some residues in the soil can improve soil quality and increase the soil carbon stock. Excessive removal should be avoided. There is currently no requirement for this to be monitored. Not causing ILUC is at the heart of EC’s push towards using wastes and residues for biofuels. However, some biowastes and residues already have uses in other industries, e.g. for animal feed or for chemicals. Something that is waste in one region of the world may not be elsewhere. So, if the existing use has to be replaced from another source, this could

generate ILUC or be satisfied by a fossil-based source of carbon. On the other hand, the ILUC Directive describes foodbased biofuels from increased production and intercropping that are ILUC free.

a cereal, for example? This places even more emphasis on tracing waste materials up the supply chain and ensuring that all sustainability schemes have the highest auditing standards.

Sustainability verification

Conclusions

Sustainability verification of biofuels is carried out by voluntary sustainability schemes (VSS), together with EU countries’ own systems. The biofuels with the highest risk of falling short on sustainability are from countries where EU Standards of human and worker rights, environmental, forest and biodiversity protection are not necessarily upheld. Focusing on advanced biofuels made from processing residues, municipal waste, and agricultural and forestry residues may reduce these risks, but it will not eliminate them. If agricultural straw or energy grasses take the place of cereals or sugars for bioethanol, then should we not also examine the conditions on the farms where they are produced? The best VSS, typically those that are multi-stakeholder and NGOapproved, robustly audit all of these aspects. Unfortunately, these schemes currently certify a minority of biofuels. As the focus shifts to wastes and residues, and these have the advantage of designated zero GHG intensity and extra incentivisation, then it will become even more important to ensure that biofuels are verified and labelled correctly. At the bottom of the supply chain, how easy will it be able to distinguish between ethanol from straw and ethanol from

There is an acknowledged role for biofuels to decarbonise transport post-2020, particularly for aviation and heavy-duty road transport. Europe is looking to “advanced” biofuels to fulfill this role. Europe should promote and incentivise biofuels according to their sustainability. Limiting ILUC is important and low ILUC food-based biofuels should also be able to play their part in decarbonising transport. Those food-based, low ILUC biofuels that achieve high GHG savings should be incentivised, as high GHG savings are the ultimate goal. The protection of the wider environment, people’s land, and labour rights should be included as required sustainability criteria for all biofuels, including those from energy crops and agricultural wastes. l

For more information: This article was written by Melanie Williams, biofuels consultant at Melanie Williams Consulting. Visit: www. melaniewilliamsconsulting.com References: 1 http://ec.europa.eu/transport/themes/ strategies/news/doc/2016-07-20 decarbonisation/com(2016)501_en.pdf 2 DIRECTIVE (EU) 2015/1513 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 9 September 2015 3 http://www.eca.europa.eu/en/ Pages/NewsItem.aspx?nid=7172

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biofuels sustainability A certification body’s conclusions from five years of operations, core changes and outlook

Re-recognition of sustainability certification schemes

• Credibility with system participants and all other stakeholde

n 9 August, International Sustainability and Carbon Certification (ISCC) was re-recognised by the European Commission (EC).1 This occasion provides a good opportunity to draw conclusions from five years of operations, introduce some core changes, and take a look into the future. After the initial recognition of ISCC in 2011 (together with six other schemes), for the first time sustainability certification became a prerequisite to enter a certain market segment, namely biofuels for transport. There were reservations regarding certification of entire supply chains of agricultural commodities and processed materials around the globe. However, after five years of operations one can conclude that the EU policy has been successful. Today certification is implemented for global supply. Sustainability improvements have been achieved. With ISCC, zero deforestation supply chains are implemented. Highly biodiverse and high carbon stock areas are protected. ISCC is going beyond the Renewable Energy and Fuel Quality Directive (RED/ FQD) requirements. Thus, agricultural production has also been improved with respect to good agricultural management practices, including social and environmental aspects. In addition, investments into

High market share and high sustainability requirements are not Centre (ITC) Standards Map provides transparency on the level and RSB achieving highest levels amongst the EC-recognised sc tell the whole story when it comes to governance and integrity good on paper, ISCC is one of the few schemes that have imple with independent auditors controlling the work of the certifica root of certified users being checked annually.

reductions in greenhouse gas (GHG) emissions along supply chains took place. A constant multi-stakeholder dialogue on sustainability, its practical implementation and verification has been initiated. This helps to improve, increase acceptance, and implement sustainability requirements. From an ISCC perspective, there are some core success factors of implementation: • Strong multi-stakeholder dialogue with regional stakeholder groups in Southeast Asia, North America, Latin America, and Europe • High-level standard going beyond the RED/FQD sustainability requirements, also implementing strong environmental and social requirements on a mandatory basis • Practical approach with initial pilots for new supply chains, feedstock and technologies • Robust assurance system, own integrity, and comprehensive training programme2 • Continuous improvement process based on feedback from stakeholders, system participants, certification bodies, auditors, and authorities Thanks to the mandatory sustainability and GHG requirements from the RED/ FQD, certification in the biofuels market has developed towards a role model for other

Figure 1: Comparison of certification schemes3

Figure 1: Comparison of certification schemes

markets, e.g. fossil fuels, schemes inter alia depends food, feed, or biochemicals. on the following: Higher transparency levels Biofuels critics should also • Level of the standard. A The amended RED/FQD does not include additional mandatory recognise this. Furthermore, level that is not achievable spillovers to other markets will not attract any system requirements that all schemes would need to implement. This have already been achieved. users and will thus be a political process. However, the amended RED/FQD requires m Today, more material than without any impact. A submitted to the EC, e.g. on audits, non-compliances, transpare required is certified around too low level will not be stakeholder involvement, certified volumes, fraud prevention a the world for the European accepted by companies and Although these aspects cover the basics of sustainability certific biofuels market. ISCC, stakeholders, thus also not improvements on them. among other certificates, attracting system users. is also used for food, feed, • Practicability, understanding Technical changes lie in the adaptation of the GHG calculation m and chemical markets. of supply chain, production factors of overall GHG emissions will need to be forwarded alon processes and market important that all schemes, also those not due for re-recognitio The dynamics of requirements, e.g. the sustainability to develop practical requirements directly. In addition, schemes need to make sure certification market verification guidance to and system participants are aware of the new requirements an support implementation a level-playing field and to prevent market distortions. Market penetration of of the requirements. sustainability certification • Responsiveness to New tools and flexibility

For future positive impact with certification on sustainability, a processes, and technologies is required. A high-level standard a

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Figure 2: Easy identification of land use change over time using remote sensing data

stakeholders. This includes availability for members, system participants, potential participants, authorities and all stakeholders regarding questions. This requires an active information exchange, regular updates to all stakeholders and a training programme. â&#x20AC;˘ Credibility with system participants and all other stakeholders. High market share and high sustainability requirements are not a contradiction. The International Trade Centre (ITC) Standards Map provides transparency on the level of sustainability requirements, with ISCC and RSB achieving highest levels amongst the EC-recognised schemes. However, benchmarkings do not tell the whole story when it comes to governance and integrity of a system. While some schemes are good on paper, ISCC is one of the few schemes that has implemented its own integrity management with independent auditors controlling the work of the certification bodies with more than the square root

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of certified users being checked annually. Higher transparency levels The amended RED/FQD does not include additional mandatory environmental and social sustainability requirements that all schemes would need to implement. This might be regretful, but is the outcome of a political process. However, the amended RED/ FQD requires mandatory reports from all schemes to be submitted to the EC, e.g. on audits, non-compliances, transparency, publishing of all certificates, stakeholder involvement, certified volumes, fraud prevention, and cooperation with certification bodies. Although these aspects cover the basics of sustainability certification, some schemes will need to enact improvements on them. Technical changes lie in the adaptation of the GHG calculation methodology. In addition, in the future all factors of overall GHG emissions will need to be forwarded along the supply chain separately. It will be

important that all schemes, also those not due for rerecognition yet, will implement these requirements directly. In addition, schemes need to make sure that their certification bodies, auditors, and system participants are aware of the new requirements and trained accordingly. This is required for a level playing field and to prevent market distortions.

need to be opened up. ISCC will also in the future work on these aspects. The aim is to continue to deliver a credible, practical, and highlevel sustainability certification scheme for all feedstocks with the flexibility to deliver to all markets (food, feed, chemicals, and bioenergy). ISCC will further invest in the development and use of new tools that improve fact-based certification. One such tool is GRAS, which is being used for the ISCC Integrity Program.4 Auditors and companies can also access GRAS to detect land use change, verify the protection of no-go areas, and implement no-deforestation commitments. GRAS uses latest technologies to process satellite images and remote sensing-based vegetation indices displayed within GRAS to detect land use change over time (see Figure 2). l

New tools and flexibility For future positive impact with certification on sustainability, a continuous improvement of standards, processes, and technologies is required. A high-level standard and a well-established multistakeholder process are essential. Schemes need to remain credible. Changes in cut-off dates and compensation mechanisms for deforestation harm credibility of certification in general. Reaching out to players on the ground, the involvement of smallholders, and improved qualification measures will be crucial to stop deforestation among other issues. New markets for certified material

For more information: This article was written by Jan M. Henke, senior consultant with Meo Carbon Solutions, an independent management consulting company which has developed and operates the International Sustainability and Carbon Certification (ISCC) system. Visit: www.iscc-system.org References: 1 http://eur-lex.europa.eu/eli/ dec_impl/2016/1361/oj 2 See for example ISCC Regional Stakeholder Dialogue, ISCC Training Program and Integrity Program 3 International Trade Centre: Standards Map. www.standardsmap.org 4 Global Risk Assessment Services: www.gras-system.org

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biofuels transport heading

Renewable drop-in fuels – the key to decarbonising transport

On the fast lane

he EU targets a 40% reduction in greenhouse gas (GHG) emissions by 2030 and strategies, including reducing the carbon intensity of transport, are being shaped during this year. In July 2016, the European Commission (EC) released a communication paper for low-emission transport and set binding GHG emission targets for member states for the period 2021–2030.The decisions’ goal is clear - by mid-century GHG emissions from transport will need to be firmly on the path towards zero and harmful air pollutants, such as nitrogen oxide, must be drastically reduced. Decarbonising European transport requires effective use of all energy and technology options, efficiency of the transport system, low-emission alternative energy sources, and low- and zero-emission vehicles that support and reinforce each other. Low carbon, sustainable liquid fuels and electrification will have significant roles. It is also an opportunity for Europe to develop leadership in new products, such as advanced biofuels. However, as innovation is advancing rapidly especially in low-carbon fuels,

any 2030 policy framework should have flexibility to allow novel feedstocks and fuel technologies to arrive on the market, provided that sustainability requirements are met. Ready to invest According to a recent evaluation of fuel and vehicle technologies by Roland Berger and a coalition of fuel suppliers and automotive companies, the road transport sector in the EU could significantly reduce well-to-wheel GHG emissions from today’s 1,100Mton to 862Mton by 2030, and reduce emissions to levels targeted by the EC if the current regulations were extended to 2030. The study suggests that increasing the penetration of optimised internal combustion engines (ICE) in the fleet could be a major contributor to this reduction. Based on modelling scenarios, efficiency technologies, such as improved diesel combustion employed in commercial vehicles including light commercials, buses, and trucks, as well as use of LNG, will likely overcompensate the effect of significant increases

in transport volumes on GHG emissions. Biofuels also contribute significantly to the reductions in GHG emissions of both passenger cars and commercial vehicles. Advanced drop-in biofuels made from nonfood feedstocks represent one of the major industrial opportunities in the sustainable energy technology field. Provided the right longterm policy framework is in place, Leaders of Sustainable Biofuels (LSB), a consortium of leading European companies already investing in advanced biofuels, has stated that the companies stand ready to further deploy the most innovative technologies to produce advanced biofuels. The industry can contribute to the reduction of transport emissions, but also bring important additional benefits in terms of European investment, jobs, and energy security. A cost-effective solution The Roland Berger study concludes that to significantly reduce GHG emissions in road transport by 2030, biofuels and hybrid powertrains for passenger cars as well as biofuels and new truck concepts for commercial

vehicles are the most costeffective way of delivering GHG savings in transport. With supportive policies these means could deliver an extra 34Mton CO2e by 2030. However, the study also calculated that bringing optimised engines as well as alternative fuel and vehicle technologies to the market could account for €380390 billion powertrain costs from 2010 to 2030, and is a significant challenge for the oil and car industry. In addition, despite the expected reduction in cost of alternative technologies, their share of new car sales will remain relatively small and their influence on overall emissions currently remains marginal. A recent study by the VTT Technical Research Centre of Finland and the VATT Governmental Institute for Economic Research concluded that the most cost-efficient way to reduce emissions is to invest in the production – and uptake – of domestic, advanced dropin biofuels when the cost impact of the EU’s 2030 climate objectives on Finland’s energy system and national economy was assessed. The main benefit of these drop-in biofuels is that they are already compatible with the existing distribution system and vehicle base. The high price of electric cars at present would mean a delay in large scale uptake until technology advancements bring down their price significantly. Also due to the slow pace of renewal in the car fleet, advanced liquid biofuels offer the most viable and fastest decarbonisation business opportunity up to 2030 and even beyond, though highly impacted by political decisions. Alternative powertrain scenarios in the study resulted in negative GDP development. When driven, an electric car does not generate any emissions, but the CO2 emissions of electricity

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production may be high. When comparing total CO2 emissions from well-towheel, advanced biofuels can achieve lower emissions than electric cars whose batteries are recharged with electricity produced by the average production methods in the EU. However, development of both low-carbon fuels and electric cars is needed to decarbonise transport. A frontrunner Finland has set ambitious 2020 renewable energy targets that have already been met. In road transport, the 20% target was surpassed by reaching a 22.3% share, and in general, a 39% share of renewable energy out of total energy end-use was achieved already in 2014. What is more, Finland´s 2030 renewable energy target in transport is among the highest in the EU – a 40% share of renewable energy by 2030 in transport and reduction of fossil oilbased energy by 50%. In 2008, Finland set a long-term quota obligation for renewable energy in transport, increasing from 2% up to an ambitious 20% by 2020. Thus, Finland has seen the rise of a sizeable biofuel cluster and been a pioneer in sustainable advanced biofuels using residues, waste, and lignocellulose as raw material. The results of research and development (R&D) work in both privately held companies and in long-term collaboration projects with the government have proven successful. One good example of UPM’s own R&D work is the company’s commercialscale biofuels plant in Lappeenranta, Finland. Commercial production began in January 2015 with an annual production capacity of 120 million litres a year of wood-based renewable diesel for transport. The biorefinery uses crude tall oil, a residue of UPM´s pulp production, as its feedstock and is

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UPM invested €179 million in its advanced wood-based biorefinery in Lappeenranta, Finland

integrated into the existing UPM pulp and paper mill in Lappeenranta. The investment of €179 million was completed without public funding. To further drive domestic investments and reach the new 2030 target, the Finnish government has assigned €100 million to investment grants for the demonstration of renewable energy technologies and projects. Grants will be awarded through a competitive tender in 2016-2018. New innovations in biomaterials There is also a growing need for certified renewable fuels in the biochemical and bioplastics industries, which are seeking replacements for fossil usage in their processes and end use. The alternative use for advanced drop-in biofuels and other output streams from modern biorefineries is within the new bio-based market segments, for example in bioplastics production as certified feedstock. Wood-based biorefineries therefore offer a possibility to expand the use of renewable materials. Reflecting an innovative use of wood and biomaterials in the automobile industry is UPM’s Biofore concept car. In the car the majority of parts that were traditionally made from plastic have been replaced with UPM’s new biomaterials, such as

thermoformable wood and biocomposites for injection moulding, and the vehicle runs on UPM’s renewable wood-based diesel, UPM BioVerno. The wood-based materials can significantly improve the overall environmental performance of car manufacturing. The Biofore concept car demonstrates that we already have biomaterials and biofuels that are real alternatives to traditional oil-based materials. No holds barred In addition to changing the means and methods of transport and general improvements in the transport system, CO2 emissions in transport can be reduced by improved energy efficiency and increased uptake of biofuels or electric vehicles. However, even with the most ambitious outlook from Bloomberg, which estimates

that by 2040 electric vehicles will represent 35% of global new car sales, there will be liquid fuel demand in all transport modes, with heavy-duty road transport and shipping also likely to remain heavily reliant on liquid hydrocarbons. The development of dieselsubstitute fuels is therefore a long-term priority, to be used alongside other solutions such as efficiency and electrification. In road transport, the ICE will still be the dominant powertrain until 2030 and beyond. Even with more efficient combustion engines, successful deployment of electric drive technologies, and transfer of goods and passengers to more efficient modes, Europe will remain a consumer of liquid fossil fuels in 2050. There is a need to increase the use of renewable fuels, and use natural resources more efficiently. An integrated approach of technologies and fuel types will allow for low-carbon emissions in the road transport sector. A rapid increase in the demand for sustainable drop-in biofuels can be foreseen as they can be applied without changes in infrastructure. In fact, sustainable renewable drop-in fuels are a fast-lane solution for decarbonising transport. l For more information: This article was written by Sari Mannonen, VP at UPM Biofuels. Visit: www.upmbiofuels.com

The Biofore concept car represents a change in perspective and in the global approach to using renewable wood-based materials

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Straw into fuels An innovative pilot plant in Denmark is using the latest technology to turn straw into ethanol

nbicon is a technology company, owned by Danish Dong Energy, specialising in technology and knowhow for converting non-food biomass to second-generation

bioethanol and valuable products for renewable power. Eight years ago, a demonstration plant was built in its refinery in Kalundborg, Denmark, to test and proof

Inbiconâ&#x20AC;&#x2122;s technology. The company has patented this process and even developed special machines for processing the biomass. Siemens was the most

important technology partner during the planning, construction and commissioning of the pilot plant in Kalundborg. During project implementation, especially for the selection of the optimum measurement method and design of the instruments, Vogelbusch played an important role in addition to Inbicon. The main reason for selecting Siemens was its comprehensive range of solutions and the tremendous experience in automation and electrotechnical fitting of plants for the production of biofuels. Siemens has been involved right from the beginning. Immediately after being awarded the contract for an integrated solution in July 2008, the German engineering giant began with detailed planning of the power distribution and control systems and all instruments required to control and manage the plant. How it works

Inbicon Biomass Refinery is the patented process that turns straw into bioethanol About 4,300 tonnes of fuels are produced from around 30,000 tonnes of straw in the second-generation bioethanol plant in Kalundborg, Denmark

Inbiconâ&#x20AC;&#x2122;s strength lies in its treatment of the raw materials and the efficient handling of all resources. Unlike many other companies that use

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The system setup follows the three main areas of a bioethanol plant: first, raw material and fermentation; second, distillation and drying; and third, auxiliary plants

substances like ammonia in their production process, Inbicon only works with water, enzymes, and yeast. This process is much more efficient because it eliminates the cleaning process and prevents waste materials. Straw is cut for the production process and then heated under pressure and broken down by enzymes. The molecular lignin melts during the heat treatment. This step lets enzymes from Danisco Genencor and Novozymes transform the cellulose fibres of the straw into sugar. The next process step takes place after cooling. Ethanol is produced by adding yeast and the ethyl alcohol produced is isolated by distillation. The last process step is dehydration. Water is removed from the alcohol for use as fuel. The entire process results in bioethanol with a purity level of more than 99%. This process turns four tonnes of straw into 17,000 litres of bioethanol per hour in the Kalundborg

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plant every day. All residual materials created in the production further increase profitability of the plant. More than 11,000 tonnes of cattle

for switchgear units and the use of plug-in modules proved to be a good choice as changes could be made at any time and within the agreed

This process turns four tonnes of straw into 17,000 litres of bioethanol per hour in the Kalundborg plant every day feed are produced from the C5 molasses and about 13,000 tonnes of pellets, which are used as combustible fuel, are produced from the lignin. The equipment choices Geafol transformers were installed during the construction phase in January 2009 and integrated with appropriate fire protection. The modular design concept

budget. Other adjustments to the switchgear became necessary, mainly due to changes in the performance characteristics resulting from newly added or larger equipment, such as frequency converters and direct and reversible drives. Pump drives for flow control, for example, are governed with Siemens frequency converters. In distillation, motors with explosion protection are used.

The challenge during the engineering phase was to match the field devices with their specific properties to the constantly refined process design, and finally, 697 measuring instruments were required. The production processes are complex, but Inbicon was able to program the core processes independently due to the close coordination with and support from Siemens. All programmers underwent training at the start of the project and were constantly coached. The factory acceptance test (FAT) for the Simatic PCS 7 process control system took place as scheduled in June 2009. Installation and commissioning has been successfully completed within the given time schedule without any delay and therefore the plant could be inaugurated during the Copenhagen Climate Change conference in December 2009. Conclusion Up to now, the system has been in continuous production.Since the pilot plant was started up, different feedstocks have been tested and the technology optimised. Inbicon benefitted from the flexibility of the delivered Siemens automation solution. In the meantime, Inbicon developed commercial models to process 200,000 to 400,000 tonnes of biomass per year from wheat straw, corn stover, sugar bagasse and other nonfood biomass. Inbicon offers licenses for its technology to build commercialscale biomass refineries worldwide and Siemens will be a reliable partner for these projects as well. l

For more information: This article was written by Ute Forstner marketing manager of Chemical Industries at Siemens. Visit: www.siemens.com/biofuels

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biofuels biodiesel A centrifugal screener is helping to convert cooking waste into biofuel

Screening for biofuels

Green Group sees a future in converting restaurant waste oil, fat, and grease into biofuels. According to the National Renewable Energy Laboratory (NREL), 1.81 billion kg of trap grease available in the US each year could yield about 1.9 billion litres of biodiesel instead of ending up in municipal waste streams. The figures for oils and fats are similar. US-based B Green Group is capturing part of that potential by converting more than 380 million litres of restaurant waste fats, cooking oil, and trap grease annually into high purity feedstock, which is refined by other firms into biodiesel, home heating oil, paint, animal feed, and a variety of other products. With customised equipment and a proprietary process developed by founder and CEO Andre Bernard, the company converts the cooking waste at 17 regional plants it either owns or operates as joint ventures. Process extracts oils, separates water and solids B Green’s process extracts oils from the cooking waste while separating water and solids in steps that remove progressively smaller solids as the waste is converted to a liquid. The company originally removed material in the 600 to 1550 micron range using a specially-built centrifugal sifter, which proved inefficient at dewatering thick slurries. In addition, screen baskets were difficult to change and replacement parts were costly. The company replaced

it with a Kason model MO Centri-Sifter centrifugal dewatering screener, which can be inclined up to 40° to increase the dwell time of material within the chamber, and accordingly, the drainage rate of free liquid. Bernard specified a 75kw motor – double that of his original unit – to avoid overloading when dewatering slurries comprised of fats, oils and greases. A woven wire material was selected for the screen baskets to handle heavy loads. Cylindrical replacement screens that cost less than previously, together with the unit’s quick-clean capability, further improved the economics of the process. Screens by centrifugal force Cooking waste is gravity-fed through a feed inlet and then metered into the cylindrical sifting chamber by a feed screw. With centrifugal force, rotating helical paddles that never contact the screen propel the waste against the screen. Liquids and particles less than 600 micron pass through screen apertures before gravity discharging through the central housing outlet. Solids equal to or greater than 600 micron are ejected through the discharge spout at the downstream end of the cylinder. To minimise downtime, the MO Quick-Clean model has a hinged door and cantilevered shaft at the discharge end, from which an operator can quickly remove the screen cylinder and paddle assembly for cleaning and inspection. Following the centrifugal sifter,

Above: A CentriSifter centrifugal dewatering screener removes particles from restaurant waste slurry RIght: Liquids and particles less than 600 micron flow from the outlet of the centrifugal dewatering screener into a circular vibratory screener

a 102cm diameter, four-deck Vibroscreen circular vibratory classifying screener, also from Kason, removes progressively smaller suspended solids that remain in the liquid. Effluent from the process is treated and cleaned prior to disposal. Waste solids, also treated, are discarded or burned for energy. B Green installed seven MO centrifugal screeners at five of its newest plants. Bernard’s plans call for opening 20 plants in the next few years, each of which will have two Centri-

Sifter centrifugal screeners. He says he can easily sell ten times the amount of his current output of 7.5 million litres weekly. He concludes that biofuels decrease dependence on foreign oil, contribute to the US economy and reduce carbon footprint. The feedstock is non-toxic, and if an accidental spill occurs, it biodegrades. l For more information: This article was written by Bob Seeley, communications officer for B Green Group. Visit: www.bgreengroup.com

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MAXIMIZING PROFITABILITY & ENSURING FUTURE STABILITY This year’s Biofuels Financial Conference is focused on the best ways to explore new options in today’s changing ethanol and biodiesel industries. By understanding risks associated with various technology and marketing initiatives, and by exploring various options for making the best use of capital and resources, we’ll learn how to create a well-managed plan for growth and change—a plan which maximizes profitability while ensuring future stability and meeting the expectations of all stakeholders.

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biofuels Contact us todayinternational to learn more. 866-746-8385 | service@bbiinternational.com

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