May/June 2016 Issue 3 • Volume 10
international
Up, up and away Boeing prepares biofuels for take-off
Powered by UPM BioVerno
Wealth from the ground Designing ethanol dryers for success
Regional focus: biofuels in southeasxxxxxralasia Regional focus: Ethanol in North America
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Volume 10
May/June 2016 Woodcote Media Limited Marshall House 124 Middleton Road, Morden, Surrey SM4 6RW, UK www.biofuels-news.com 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
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c ntents 2 Comment 4 News 24 Green page 25 People on the move 26 Plant update 30 Market analysis In the midst of a shaking transportation business, trucking companies are increasingly embracing biodiesel
32 Ethanol in North America Within the US biofuels industry, Iowa is leading the way with its strong approach towards the bio-based market 34 ePure tackles UK legislation The UK is falling behind on its renewable fuel obligations and the country’s government is encouraged to step up its game 36 Flying the flag of aviation biofuels One of the most exciting developments in aviation is the introduction of sustainable biofuels. Boeing flies in the environmentally-friendly skies 38 Recycling carbon: Turning waste into clean fuels and chemicals Update on Enerkem’s waste-to-fuels plant in Canada 40 The emperor’s new clothes The changing role of biomass in the European renewable energy supply 42 Wealth from the ground: Planting seeds of growth Profile on ICM 46 Pre-dry and save! Ronning Engineering analyses the benefits of ethanol drying technology 48 Fractionation 50 1G Ethanol Production: Keeping Competitive and Seizing Opportunities
May/June 2016 Issue 3 • Volume 10
international
Up, up and away Boeing prepares biofuels for take-off
Powered by UPM BioVerno
Wealth from the ground Designing ethanol dryers for success
52 Moving to mobile Despite common complaints that people spend too much time on their phones, making use of a mobile app can help plant operators save time and money 56 Turning wood into bioethanol gold The sustainability agenda is moving forward and pioneering companies are leading the way
Regional focus: biofuels in southeasxxxxxralasia Regional focus: Ethanol in North America
Cover photo: Courtesy of UPM Biofuels. UPM BioVerno –diesel bus tests continue in Helsinki city bus traffic throughout 2016
may/june 2016 1
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High flyer
Liz Gyekye Editor
1
.2 billion gallons. That’s the amount of advanced hydrocarbon biofuels that could serve the global aviation biofuels market in the future. However, none of this can get into the aviation supply chain today because when the specification for biokerosene was written in 2011, it excluded that tranche of fuel. This is a shame because direct emissions from civil aviation account for about 3% of total greenhouse gas emissions in the EU alone, according to the European Commission. Biofuels can help lower a carbon footprint by providing a renewable alternative to jet fuel in airliners. They emit less CO2, contain no sulphur compounds, and are generally more efficient due to their higher energy density. Since 2011, a number of airlines have experimented with using biofuels on commercial flights. United
Airlines recently made history by becoming the first US airline to begin use of commercial-scale volumes of sustainable aviation biofuel for regularly scheduled flights with the departure of United Flight 708 from Los Angeles International Airport. The launch marks a significant milestone in the commercial aviation industry by moving beyond demonstration flights and test programmes to the use of advanced biofuels for United’s ongoing operations. In another boost for the biofuels industry, Dutch carrier KLM launched the first in a series of 80 flights from Oslo to Amsterdam using a biofuels blend to power an Embraer E190 jet. A fuel approval process is currently underway to get the 1.2 billion gallons of advanced biofuels into the aviation supply chain. In this issue, Boeing’s director of sustainable aviation fuels
strategy, Darrin Morgan, gives an insight into what the airplane manufacturer is doing to promote aviation biofuels. The use of renewable fuels in our transport system has increased in range and usage across the world. Ethanol has experienced an incredible surge in recent times. One of the process steps for ethanol production is the removal of water from the biofuel. Special techniques have therefore been developed to remove the water, known as drying. Ethanol dryer specialist ICM has recently celebrated its tenyear anniversary. In this issue, Biofuels International catches up with the company’s CEO Dave VanderGriend to find out the secret to the company’s success. It’s a great read.
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march/april 2016 3
bioethanol news India Glycols launches its first secondgeneration ethanol plant in Kashipur Green technology manufacturer India Glycols has officially launched India’s first second-generation ethanol plant in Kashipur. The demonstration-scale plant, based in Uttarakhand, is capable of producing 750,000 litres of cellulosic ethanol per year. It is to run on wood chips, cotton stalk, cane bagasse, corn stover, and bamboo. The facility has the capacity to consume 10 tonnes of biomass per day and is based on the “globally-competitive
indigenous technology of converting lingo-cellulosic biomass to ethanol”. The plant was opened by Harsh Vardhan, Minister for Science and Technology and Earth Science in late April. If the plant is successfully operated and scaled-up, it will establish India as a major global technology provider in the arena of renewables and reduction in carbon emissions, besides bringing considerable savings in imports of crude oil. The news comes amid a recent announcement that the Indian government has set a mandate of 5% blending of renewable biofuel in
Korean company enters joint venture to produce bioethanol in Laos South Korea’s TN Energy has entered into an agreement with Lao State Fuel to set up a joint venture (JV) to produce Power Gasolinebranded bioethanol fuel. The joint venture, to be called Lao K-tech, will be established later this year and it will be located at Dongphosy village in Hadxaifong district, Vientiane, Laos. In the first year, the companies will work together to survey areas for growing feedstock, namely cassava and sugarcane. The partners are planning to grow 40% of their feedstock, while the rest will be bought from local farmers at the current market price. Additionally, some other feedstocks – especially a substance called Rod, a multifunctional additive – will be imported from Korea during the first or second year of production. TN Energy has invested $34 million (€30.8m) in the project and expects to produce 1.2 million litres of Power Gasoline a month once
the project is up and running. In turn, Lao State Fuel will be responsible for allocating locations and storage space as well as finding markets to sell the product. Speaking at the JV agreement signing ceremony, Lao State Fuel technical staffer Phoukhong Keolakhone said the idea to establish the new company came after seeing the progress made in producing and using Power Gasoline during a pilot project carried out in 2013. During the pilot project, TN Energy imported ethanol, naphtha, and Rod to Laos and the companies were able to produce 500l of Power Gasoline to meet the national standard. Driving trials showed that the used car consumed 133l to cover a distance of 1,270km in Vientiane and used 46l to cover 663km from Vientiane to Pakxe. Phoukhong added that the cars were checked using a computer system at the Kolao Group centre after using Power Gasoline. “The results of the checks were satisfactory because the quality of the biogas matched the national standard,” he said. l
India’s biofuel production capacity increases
both petrol and diesel. While diesel biofuel blending is near zero, the petrol blending today stands at an overall of about 3% in the form of first generation (1G) or molasses-based ethanol. l
PetroVietnam mothballs ethanol plants due to unprofitable markets Vietnam’s state-owned oil company PetroVietnam has confirmed that its Dung Quat bioethanol plant has halted its operation due to high production costs making its products uncompetitive in the market. As petrol prices have been falling in the world market, E5 biofuel cannot compete with RON92, and as a result, the plant has stopped production after a long period of running at moderate level. PetroVietnam Central Biofuels (BSR-BF) was set up with three founding shareholders, all subsidiaries of PetroVietnam, consisting of Petrosetco, Binh Son Oil Refinery, and PetroVietnam Finance Co. (PVFC). Dung Quat Bio-Ethanol, with the designed capacity of 100 million litres of ethanol a year, has total investment capital of VND2.219 trillion (€87.7m). Besides Dung Quat, PetroVietnam has also invested in two other biofuel plants, with PV Oil, one of its subsidiaries, now holding the controlling stakes in Orient Bio Fuel Company (OBF) and PetroVietnam Biofuels (PVB). l
4 may/june 2016 biofuels international
bioethanol news News heading Body copy
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News heading Body copy
ZEELAND SEAPORTS - TRAINING CENTER The Bio Base Europe Training Center is an education, network and exhibition center promoting the development of a sustainable biobased economy. It offers general and company-specific training and connects closely with the market demand. The Bio Base Europe Training Center will address an industry-wide shortage of skilled process operators and technical staff for biobased and sustainable energy processes. It also encourages network activities, technological innovation and entrepreneurship and develops a public information and communication program for the biobased economy. The Bio Base Europe Training Center is situated in Terneuzen in The Netherlands and is accessible for companies and research institutions throughout the world.
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The Bio Base Europe Pilot Plant is a flexible and diversified pilot plant that operates at ton scale. It is there to close the critical gap between scientific feasibility and industrial application of new biotechnological processes. It enables companies from all over the world to assess actual operating costs, specific strengths and weaknesses of new biotechnological processes and this before costly, large-scale investments are made. In this way, the pilot plant bridges the gap between the laboratory and the industrial production process. This innovation and development is one example of cooperation between the port, private companies and Ghent University.
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may/june 2016 5
bioethanol news ADM sells sugarcane ethanol operations in Brazil Archer Daniels Midland (ADM), a US-based global food processing and commodities firm, has struck a deal to dispose of its sole Brazilian ethanol plant, citing a “challenging” environment for the biofuel. The Minas Gerais distillery and its sugarcane plantation, which has the capacity to process up to 1.5 million tonnes of cane a year and produce 37,000 gallons of ethanol, will be sold to JFLim Participacoes, subject to regulatory approval.
“We regularly review our asset portfolio to determine how best to maximise shareholder returns, and in this case, we have determined that our sugarcane ethanol operations in Brazil are unlikely to meet our long-term returns objectives,” said Chris Cuddy, president of ADM’s corn processing business unit. He added: “As our sole sugarcane ethanol operation in Brazil, this asset is too small for ADM to compete effectively in a challenging ethanol environment.” The transaction is expected to close in the second quarter of 2016. Financial details were not provided. l
US court approves bankruptcy finance package for Abengoa’s Nebraska operations Spanish renewable energy giant Abengoa Bioenergy said a US bankruptcy court has approved financing to help the firm restart its Nebraska production operations.
In April, the US Bankruptcy Court for the Eastern District of Missouri approved a $41 million bankruptcy finance package for six Abengoa Bioenergy companies that had recently filed for Chapter 11 bankruptcy protection. The six Abengoa ethanol plants that filed for bankruptcy protection are located in Nebraska, Kansas, New Mexico, Illinois and Indiana. In a press statement, Abengoa said: “The order [bankruptcy finance package] provides longer term ongoing financing for the payroll and other ordinary course operational expenses during the pendency of the case, and specifically contemplates funding to resume production operations at
A US court has issued an order approving financing for the restart of Abengoa Bioenergy’s Nebraska plants
Abengoa Bioenergy’s two Nebraska plants located in Ravenna and York.” “Resuming production operations at our Nebraska plants is an important step which we believe will help maximise the value of the assets for the best interests of all stakeholders,” said Abengoa president and CEO, Antonio Vallegspir.
Elsewhere, in Spain, a bankruptcy court has granted Abengoa until 28 October, 2016, to approve its restructuring plan through a process that protects the company from claims from creditors. In a statement, Abengoa said that these changes are expected to streamline operations and maximise resources. l
BRE to invest $95m in large-scale bioethanol plant in Jamaica Florida-based biofuel developer Benchmark Renewable Energy (BRE) is planning to develop a large-scale bioethanol operation in Jamaica. According to BRE, once completed the plant will have a production capacity of 10 million gpy of ethanol, with an additional 3MW of electricity produced for the local grid. The required investment for the plant is expected to be
approximately $95 million (€86.7m), with the prospect of ramping up production to 20 million gpy in the first few years of operation. In addition to ethanol and electricity, BRE aims to produce 500,000 gpy of drop-in aviation jet fuel and 60,000 gallons per day of desalinated water. Juan Briceno, chief financial officer at BRE, said Jamaica was chosen as the plant’s location due to its potential for large-scale sugarcane production. l
6 may/june 2016 biofuels international
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bioethanol news Summit breaks ground at Brazil’s first large-scale corn ethanol plant Summit Agricultural Group (SAG), a renewable energy, agribusiness development, and production agriculture company, has broken ground on the first large-scale corn ethanol production facility in Brazil. The $115 million (appr. €101m) plant is an international collaboration between Iowa-based SAG and the Brazilian agribusiness Fiagril. The production facility is being built in Lucas do Rio Verde in Mato Grosso, a pre-eminent agricultural state in west central Brazil and the country’s largest producer of corn and soyabeans. SAG CEO Bruce Rastetter estimated that the plant, which will be the only dedicated corn ethanol plant in Brazil, will be completed in mid-2017. The facility is expected to be the most modern and efficient ethanol plant in the world, and when fully operational it will employ nearly 90 people and produce 60 million gallons of ethanol annually
for domestic markets, SAG said. Rastetter said the landmark project will bring immediate value to Brazil by helping offset the country’s increasing demand for domestic ethanol, which cannot be met by the existing sugarcane ethanol production, and by introducing to the region valuable high fibre and high protein co-products, which will serve as high-value feed for the Brazilian livestock industry. SAG’s partner in the corn ethanol project is Fiagril – a diversified company whose operations throughout Mato Grosso and adjoining Brazilian states include biodiesel production, grain trading, crop production inputs, and infrastructure development. Fiagril’s commitment to sustainable agricultural development in Mato Grosso has served as a model for other regions of Brazil for more than 25 years. “Mato Grosso has set the standards for Brazilian agriculture and business development for years and thanks to this effort, the region will grow to new heights in the area of renewable fuels,” said Marino Franz, founder of Fiagril.
Summit Agricultural Group CEO Bruce Rastetter
The SAG/Fiagril production facility will utilise process technologies from Kansas, US-based ICM, which provides engineering, construction, and operational services for more than 100 ethanol plants in North America. l
Mexican students create bioethanol with newspaper
Growing demand for ethanol in Brazil
Mexican students from the Universidad del Valle de Mexico (UVM) Coyoacan Campus have created bioethanol using newspaper, according to media reports.
Brazil began sugarcane ethanol production in the mid-1970s and today produces 25% of the world’s ethanol.
The group of students, based in Mexico City, are called Alexys Stephanya Nájera, Ariel de Jesús González, Roberto Carlos Muñoz and Delia Calderón Crespo, according to news website Mexico News Network. The students had used an “acid digestion” process on the newspaper, the website stated. The product is then
fermented and distilled to be turned into bioethanol. The creation of bioethanol with wastes that no longer have commercial value and can be reused (like in the case of newspaper) will support the goals of Mexico’s National Development Plan, which stipulates that Mexico should reduce its dependence on fossil fuels by 2024. The creators of the project say it is still in development and they need more financial support in order to build a plant to produce the bioethanol at “industrial level”. The bioethanol can also be used in vehicles, according to the website. l
Bank of America has estimated that annual ethanol sales in Brazil could reach 13.5 billion US gallons in 2022, two-thirds greater than the 8.1 billion gallons estimated in sugarcane ethanol production in 2016. The Mato Grosso region’s substantial corn production – both proven and potential – makes corn-derived ethanol the most viable option to complement existing sugarcane ethanol production and fulfil an annual multi-billion gallon shortfall. Additionally, the introduction of corn ethanol production to Brazil will generate dividends beyond the fuel pump and highway, according to Justin Kirchhoff, investment development manager for SAG. l
8 may/june 2016 biofuels international
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bioethanol news Trade body criticises Argentina’s 2017 ethanol production target Argentina’s ethanol sector needs more time and investment in order to meet potential significant increases in the country’s gasoline ethanol blend, according to Claudio Molina, executive director of the Argentine Biofuels and Hydrogen Association. The government is considering increasing the blend from the current 12% to 26% in 2017, but to make this happen the industry would have to ramp up ethanol production and invest in logistics. According to a report by market analysts Platts, Molina said: “It is impossible to generate supplies for 2017 to cater to this need in full.” Even so, he said the government has shown that it is committed to increasing the blend. Argentina’s government recently raised the requirement for ethanol blend in gasoline from 10% to 12%. The government has also decided to implement a plan for introducing flexfuel vehicles, or those with engines that can run on higher ethanol blends
More investment is needed for the Argentianian biofuel sector, expert says
in gasoline. This would boost demand for ethanol and make it possible to replicate the 27% mix in Brazil. However, putting into effect the legislation and logistics for a higher blend will “require much more time,” Molina said. Argentina has a large farming industry with ample acreage to expand corn and sugarcane acreage. While it is a
small cane producer on a global scale, for corn it is the world’s fourth-biggest producer and second-biggest exporter. Ethanol production rose 21.5% to 815,407 tonnes in 2015 from 671,121 tonnes in 2014, while consumption increased 21.2% to 803,640 tonnes from 663,102 tonnes over the same period, according to the latest energy ministry data. l
New report examines the transport of oil and ethanol in Iowa Iowa Department of Transportation and Iowa Department of Homeland Security and Emergency Management have unveiled a study that reveals insights into the transportation of biofuels and crude oil by rail around and through the state. The research used a series of interviews and meetings with government agencies, railroads, emergency response personnel, emergency managers, rail shippers, and biofuels producers to cover four main topic areas: prevention of spills, preparedness in the event of a spill, response to an incident,
and recovery from an incident. The group met several times over the past year to assess potential risks and propose measures to minimise those risks. Together, government and industry developed recommendations and actions to enhance the safety of this transportation supply chain. Iowa DOT’s Office of Rail Transportation director, Tamara Nicholson, said: “Rather than working to impose additional rules or regulations on the transportation of these materials, as is being done in other states, we decided to work with the railroads, producers, and the emergency management community to see what procedures and resources are already in place and how those
can be strengthened in Iowa.” In relation to biofuels, the study notes approximately 4 billion gallons of ethanol were produced in Iowa last year, with the majority of that volume shipped by rail. Iowa has 3,851 miles of railroadowned track, and eight railroads haul crude or biofuels within the state. The study outlines actions that can be taken within the state to improve prevention, preparedness, response and recovery. For example, under the category of prevention, the study suggests the state consider ranking at-grade crossings based on their exposure to crude oil, ethanol and other hazardous commodities and increase funding for at-grade crossing improvement projects. l
10 may/june 2016 biofuels international
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may/june 2016 11
biodiesel news Biodiesel worse for environment than fossil fuels, new study suggests Biodiesel used in transport is set to help increase Europe’s overall transport emissions by around 4%, according to a new study by environmental group Transport & Environment (T&E). These extra emissions are equivalent to putting around 12 million additional cars on Europe’s roads in 2020, according to T&E. This analysis takes into account the 7% cap on the contribution of biofuels produced from food crops. The European Council implemented the much-awaited Indirect Land Use Change Directive last year. The Directive limits the share of biofuels from crops grown on agricultural land to 7%. The long-delayed EU study found palm, rapeseed, and soya-based biodiesel to have land-use change emissions – which occur when new or existing cropland is used for biofuel feedstock production – that alone exceed the full lifecycle emissions of fossil diesel. In a statement, T&E said its “analysis adds to these figures the direct emissions of biofuels e.g. from tractors, fertilisers, and the installations, and subtracts emissions from the fossil alternative”. Food vs. fuel It finds that on average, biodiesel from virgin vegetable oil leads to around 80% higher emissions than the fossil diesel it replaces. For instance, soya and palm-based biodiesel are even two
Using biofuels for transport is helping to increase greenhouse gas emissions, according to green group T&E
and three times worse respectively. This biodiesel is the most popular biofuel in the European market and has been forecasted to have an almost 70% share in 2020, according to T&E. In total, more than three-quarters of biofuels, which includes bioethanol as well as biodiesel, are forecast to have lifecycle greenhouse gas emissions similar or higher than fossil petrol and diesel in 2020, according to the green group. T&E executive director Jon Dings said: “The cure is plainly worse than the disease. The 7% cap on foodbased biofuels has helped though, and should be lowered to zero after 2020. These fuels should also not count as zero-emission fuels. If we do not end incentives for bad biofuels, the better
ones will not stand a chance.” Last year’s reform of EU biofuels policy established a limit on the growing consumption of land-based biofuels, which, because of ILUC emissions, often increase carbon emissions rather than reducing them. But the reform failed to include ILUC emissions in the carbon accounting of biofuels under the Renewable Energy Directive (RED) and Fuel Quality Directive, meaning harmful biofuels can still be counted toward the EU targets and receive public financial support. The European Commission (EC) is currently reviewing the RED and sustainability criteria for all bioenergy including biofuels, and it will publish a proposal in the final quarter of this year. l
Southern Oil Refining to build advanced biofuel pilot plant in Australia Southern Oil Refining, an Australian oil recycling company, has secured a contract to build a AUS$16 million (€10.7m) biofuel pilot plant in Australia. The facility, titled Northern Oil Advanced Biofuels Pilot Plant, will be built in Gladstone, Queensland, and will produce biodiesel from sugarcane bagasse.
The pilot plant is expected to be operational later in 2016 and will aim to produce one million litres of fuel within three years for use in field trials by the US and Australian navies. Airlines Virgin and Qantas have also expressed interest in using the produced fuel to power their aircrafts. There are eventual plans to expand the plant into a AUS$150 million commercial-scale refinery that would produce 200 million
litres of advanced biofuel a year. The facility was originally planned to be situated in Wagga Wagga, New South Wales, where Southern Oil is headquartered, but the Queensland state government offered the company a monetary grant to cover the costs of building the plant in Gladstone instead. Queensland Premier Annastacia Palaszczuk said the “small amount of money” was worth it to bring the plant to Queensland. l
12 may/june 2016 biofuels international
biodiesel news KLM uses camelina-produced biofuel for Olso to Amsterdam flights KLM Royal Dutch Airlines, a Dutch airliner, is launching around 80 flights from Oslo to Amsterdam using only biofuel on its Embraer 190 aircraft. The flights will be operated over the coming five to six weeks, the Dutch airliner said. During these flights Embraer SA will be measuring the efficiency of biofuel in comparison with kerosene. This means that around 80 commercial biofuel flights will supplement those flights operated previously by
KLM on routes to Paris, Rio de Janeiro and the Dutch Antilles, and from New York. The biofuel is produced from 100% Roundtable on Sustainable Biofuels (RSB) certified camelina, according to KLM. Camelina is an oilseed crop suitable for northern climates. It can be cultivated in relatively dry areas of thin soil as a rotation crop. KLM has used camelina previously as a raw material for sustainable biofuel and chooses to use raw materials that do not have an impact on biodiversity and/or food supply. l
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KLM launches new series of biofuel flights from Oslo to Amsterdam
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may/june 2016 13
biodiesel news Low palm oil output in Indonesia and Malaysia drags down global prices Crude palm oil (CPO) production in Indonesia and Malaysia is expected to decline due to the impact of the El Nino weather phenomenon that has brought a prolonged dry season to Southeast Asia. Malaysia may only produce 19 million tonnes this year, while Indonesia’s output is estimated at 31 million tonnes. CPO production in Malaysia could fall between 1.5 and 2 million tonnes this year, according to Dorab Mistry, director at Godrej International, an Indian business conglomerate. Declining output in the world’s two leading palm oil producers and exporters implies that palm oil prices should be able to rise further. At the start of this week palm oil futures traded in Kuala Lumpur (June delivery) rose to 2,779 ringgit (approx.
€614.5) per tonne, the highest level since March 2014, and they may rise further to 3,000 ringgit (approx. USD $751) before the year-end. Another factor that supports higher palm oil prices is Indonesia’s biodiesel programme, which produces about 200,000 tonnes of palm oil-derived biodiesel each month. This implies that palm oil demand is relatively strong due to higher demand from Indonesia, while demand from key export markets such as India and China remains sluggish, and also gives rise to estimates that Indonesia’s palm oil export has plunged to about 1.95 million tonnes in February. The latest data from the Indonesian Palm Oil Producers Association (Gapki) shows that Indonesia exported 2.1 million tonnes of crude palm oil in January 2016, down 16% from the export volume one month earlier. Expectations of lower soyabean output in the US
Indonesia exported 2.1 million tonnes of crude palm oil in January 2016
also encourage higher palm oil prices, as soyabean oil and palm oil dominate the global edible oil market, accounting for about 60% of the world’s total edible oils production. As both commodities can substitute each other, food processors tend to switch between both commodities depending on prices. A big soyabean harvest causes the soyabean price to fall and therefore food processors would prefer to purchase soyabean oil, implying weakening demand for palm oil and
weakening palm oil prices. In the current context, however, palm oil faces little competition from soyabean oil. In line with expectations, Indonesia’s Trade Ministry announced at the start of the week that the nation keeps its export tax for crude palm oil at 0% in April. Together, Indonesia and Malaysia produce about 86% of the total palm oil supply worldwide. Palm oil is an edible oil used in various sectors such as biodiesel, cosmetics, and food. l
Diamond Green Diesel expands production at Louisiana renewable diesel facility US-based Darling Ingredients, a speciality ingredients producer, has announced that it is ramping up production at its joint venture Diamond Green Diesel facility in Norco, Louisiana. Diamond Green Diesel will now produce 275 million renewable diesel gpy instead
of 160 million gpy. Diamond Green Diesel is a joint venture between Darling and Valero Energy Corp. According to Darling, the incremental cost per gallon of renewable diesel production for the expansion is estimated to be half the greenfield construction costs due to significant logistics and processing facilities already in place. “Our Diamond Green Diesel
joint venture continues to be a shining star in our portfolio of ingredients and our team has successfully proven the technology works, producing the highest quality product to meet the expectations of our customers,” said Randall C. Stuewe, chairman and CEO of Darling Ingredients. The project will be funded by Diamond Green Diesel cash flow, subject to final engineering and cost analysis.
Completion is projected for late 2017, with production to ramp-up in early 2018. The plant plans to operate at full capacity throughout the expansion phase, excluding up to 30 days of downtime for final tie-ins. The planned expansion will also include expanded outbound logistics for servicing the many developing low-carbon fuel markets in North America and globally. l
14 may/june 2016 biofuels international
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may/june 2016 15
biodiesel news Biofuel trade groups call for multi-year tax credit extensions
Six biofuel trade associations are urging the Senate to extend biofuel tax credits
Six biofuel trade associations have sent a letter to leaders of the US House of Representatives and US Senate to ask for a multi-year extension of advanced biofuel tax credits.
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In December, the US Congress granted a two-year extension to the second generation biofuel producer tax credit, the special depreciation allowance for second generation biofuel plant property, the biodiesel and renewable diesel fuel credit, the alternative fuel and alternative fuel mixture excise tax credit, and the alternative fuel vehicle refueling property tax credit. Those credits are currently scheduled to expire at the end of the current year. Within the letter, the trade associations stress the “shortterm expiration of tax incentives is jeopardizing the long-term investment necessary for advanced biofuels. This creates uncertainty for investors and industry about the availability of these credits in the future”. The letter goes on to state: “As leaders in a critical innovation sector in the US, we are well aware of the financial constraints facing this country. However, as Congress works on developing energy tax extenders legislation, we urge you to ensure that advanced biofuels are part of the package. “Extending some 2016 expiring energy tax provisions and not others creates a piecemeal approach and investment uncertainty across the energy sector and distorts the playing field for biofuel producers.” The groups also urge Congress to move quickly, extending the biofuel tax credits ahead of the expiration date to avoid creating any uncertainty for investors and companies trying to raise capital. The letter is signed by the Advanced Biofuels Business Council, the Algae Biomass Association, the Biotechnology Innovation Organization, Growth Energy, the National Biodiesel Board, and the Renewable Fuels Association. l
16 may/june 2016 biofuels international
biodiesel news WTO sides with Argentina in EU biodiesel anti-dumping tax row The World Trade Organization (WTO) has ruled in favour of Argentina in its row concerning the anti-dumping duties imposed by the EU since 2013 on the biodiesel imported from the country. According to a panel report published in April, the WTO upheld Argentina’s claim that the reason stated by the EU authorities during their antidumping investigation for disregarding Argentine producers’ costs of production of biodiesel does not constitute a “legally sufficient basis.” The WTO found the EU had replaced the costs reported by the Argentinian producers for their soyabean feedstock, substituting them with reference prices published by the country’s Ministry of Agriculture. According to the EU, the Ministry’s price estimates reflected international prices, but the WTO stated in its findings that the EU had included costs not associated with the production and sale of biodiesel in the calculation of the cost of production. The WTO panel also supported Argentina’s claim that the EU had imposed anti-dumping duties in excess of the margin of dumping that should have been established under the Anti-Dumping Agreement. However, it considered that the profit margin selected by the EU authorities was the result of a reasoned analysis. Argentina filed a formal complaint in November 2013 at the WTO against the EU’s anti-dumping measures on its biodiesel exports. Argentina’s Foreign Ministry said the anti-dumping measure imposed by the EU covers a cost range of between €216.64 to €45.67 per tonne, leading to “the direct and immediate closing” of the European market to Argentinian biodiesel. l
biofuels international
Biodex-SA receives RSB certification as the first UCO biodiesel producer in Africa Biodex-SA, a Tunisia-based biofuels company, has been awarded the Roundtable on Sustainable Biomaterials (RSB) certification for the production of biodiesel. According to Biodex-SA, it is the first company to collect waste oils and transform them into biodiesel in Africa and the first firm in Tunisia to earn RSB certification. The company’s biodiesel plant converts used cooking oil to biodiesel, which is then sold to the European market. RSB’s executive director, Rolf Hogan, said: “We are delighted to add Biodex to the RSB-certified companies already producing biofuel in Africa.”
“We welcome their commitment to using waste materials and to processing them with the highest environmental and social standards, as required by the RSB Standard,” Hogan continued. RSB is recognised by NGOs as the “most comprehensive and ambitious” biomaterials sustainability certification programme in the world. A global coalition that brings together farmers, companies, non-governmental organisations, experts, governments, and inter-governmental agencies concerned with ensuring the sustainability of biomaterials production and processing, RSB provides a holistic approach towards sustainability assurance, covering social, environmental, and operational aspects. l
may/june 2016 17
technology news MIT researchers convert waste gas into liquid fuel Researchers from the Massachusetts Institute of Technology (MIT) have discovered a form of bioconversion that could be used to convert waste gases to biodiesel for transportation. The bioconversion involves two main steps, the first of which processes syngas, a synthetic gas that predominantly includes a mixture of hydrogen, carbon monoxide and carbon dioxide, into acetic acid (concentrated vinegar) in an anaerobic bioreactor using bacteria. The acetic acid is then used as a substrate for an oil-producing yeast, which aerobically converts it into lipids. Transportation was responsible for 27% of global gas emissions in 2013, according to the US Environmental Protection Agency (EPA), and biofuels have been seen as a possible replacement to fossil fuels. The discovery of this bioconversion has the potential to turn waste gases from power stations into low-carbon liquid fuels.
Using waste gases from power stations to create biofuels would be a major advance in the battle against global warming
The bioprocess for the conversion of gaseous substances to liquids has been successfully trialled at a pilot plant in China. MIT said that a larger semicommercial demonstration plant, 20 times the size of the pilot plant, is now planned for construction. MIT owns the patent for the process. Professor Gregory Stephanopoulos, of the Chemical Engineering
Department at MIT, told the Guardian: “This will test if the process can be scaled up and evaluate its costs and carbon footprint. It is one thing to do it on a scale of 1-2 litres in the lab, but a different story to move up 1,000 litres and then 20,000 litres in the demonstration plant.” Fuels from renewable resources need to be from “low-cost feedstocks”, Stephanopoulos added.
Manure and farm waste, along with other waste, is a “promising source of the syngas required”, he explained. Stephanopoulos argues that the current practice of burning the biogas that is already produced across Europe to produce electricity is “wasteful”, and that converting it into a liquid biofuel that could be used for transport would be better. l
Aemetis acquires rights to LanzaTech’s ethanol technology in California Californian biofuel company Aemetis has acquired exclusive rights to LanzaTech’s patented technology for the conversion of agricultural, forest, dairy, and construction and demolition waste (CDW) to ethanol. The LanzaTech gas-to-ethanol technology enables Aemetis to convert these local Californian biomass wastes to advanced ethanol. The 12-year agreement makes Aemetis the first licensee of the
LanzaTech technology in North America. “The 60 million gpy ethanol plant in California owned and operated by Aemetis currently uses approximately 20 million bushels per year of feedstock, consisting primarily of corn and milo supplied from the Midwest,” said Eric McAfee, chairman and CEO of Aemetis. “By utilising wastes from forest, dairy, orchard, vineyard, corn, rice, wheat, and CDW sources that are local to our plant, we plan to reduce feedstock costs from more than $150 (€132.5) a tonne to receiving tipping fees for waste feedstocks.
This technology enables Aemetis to produce advanced ethanol that is valued up to approximately $3 per gallon more than traditional ethanol.” The first phase of the adoption of the LanzaTech technology by Aemetis will be an eight million gpy processing unit related to the Keyes plant, which under the agreement is planned to be built by the end of 2017. The agreement provides for an expansion to 32 million gpy process unit, as well as licenses for units that would be installed at other existing ethanol plants. l
18 may/june 2016 biofuels international
technology news
www.dsengineers.com
Danish researchers use power of sunlight to produce biofuels Researchers from the University of Copenhagen in Denmark have developed a natural process, reverse photosynthesis, to produce biofuels and energy from sunlight. The process involves breaking down plant biomass using the energy in solar rays combined with monooxygenases enzyme. The resulting product can then be used as chemicals, biofuels or other products. According to the researchers, the monooxygenases, a natural enzyme also used in industrial biofuel production, has potential to multiply their effectiveness when exposed to sunlight. University of Copenhagen professor Claus Felby said: “This is a game changer, one that could transform the industrial production of fuels and chemicals, thus serving to
reduce pollution significantly. “The immense energy in solar light can be used so that processes can take place without additional energy inputs.” The researchers expect the method could revolutionise industrial production by increasing production speed and reducing pollution. “The discovery means that by using the sun, we can produce biofuels and biochemicals for things like plastics – faster, at lower temperatures and with enhanced energyefficiency,” said study lead author Dr. David Cannella, from the University of Copenhagen’s Department of Geoscience and Natural Resource Management. “Some of the reactions, which currently take 24 hours, can be achieved in just ten minutes by using the sun.” Felby said that further research and development needed to be carried out before the process “benefited society”. l
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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 Danish researchers have discovered a process called reverse photosynthesis, which uses sunlight to convert biomass into fuel
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technology news Comet Biorefining inks deal with bio-succinic acid maker BioAmber Comet Biorefining, a Canadian cellulosic dextrose technology provider, has signed an off-take agreement with bio-succinic acid producer BioAmber for cellulosic dextrose from Comet’s upcoming first commercial plant in Sarnia, Ontario. The dextrose will be produced from agricultural residues using Comet’s innovative technology. The off-take agreement also includes provisions for Comet to supply dextrose to future BioAmber manufacturing facilities and provides BioAmber with
certain exclusive rights in the fields of succinic acid, 1, 4-butanediol (BDO) and tetrahydrofuran (THF). BioAmber provided an equity investment in Comet in 2015 and its CEO Jean-Francois Huc is now joining Comet’s board of directors. Comet’s technology enables sugars to be produced competitively from biomass versus corn or cane-derived sugars, the benchmark raw materials for today’s biochemical production. Comet’s facilities can also be built on a smaller scale enabling greater flexibility to locate production closer to biomass supplies and lower a region’s greenhouse gas footprint. The off-take agreement is the
culmination of development work performed by Comet and BioAmber as part of BioIndustrial Innovation Canada’s recently completed cellulosic sugar study. Andrew Richard, chairman and founder of Comet Biorefining, said: “Having off-take agreements in place with bioeconomy leaders like BioAmber demonstrates the market’s confidence in our technology and products. “As a trusted feedstock partner, Comet is helping to build a successful bioeconomy hub in Sarnia, Ontario, close to plentiful biomass. We are extremely pleased to welcome Jean-Francois Huc as a member of our board.” l
WestJet teams up with CETC to boost aviation biofuels in Canada Canadian airline WestJet has teamed up with Clean Energy Technology Centre (CETC), an Alberta-based research and development organisation, to accelerate the advancement of sustainable aviation biofuel in Western Canada. “WestJet’s collaboration with the CETC is an exciting first step in supporting the development and deployment of a sustainable fuel alternative in Western Canada,” said Geoffrey Tauvette, WestJet’s Environment and Fuel director. He added: “WestJet has already made significant, demonstrable progress in our environmental commitment. As an example, our fleet investment over the last 15 years has improved our fuel efficiency by almost 50%. The natural next step for us was getting actively involved in tapping Western Canada’s innovation potential in developing scalable, affordable and sustainable aviation biofuels.” According to WestJet, aviation biofuels represent the biggest and best opportunity for aviation to significantly reduce greenhouse gas emissions. The CETC is located in Alberta’s Drayton Valley, home also to the “Bio
Mile”, an integrated bio-industrial park with close proximity to forestry and oil and gas industries whose infrastructure and human resources could eventually support the development of the alternative fuel source. “We are excited to work with WestJet in these early stages and looking forward to what the future holds for aviation biofuels in Canada,” said Manny Deol, CETC chief operating officer. The news comes as Air New Zealand
and Virgin Australia recently announced a partnership to investigate options for locally-produced aviation biofuel. Commenting on the news, Air New Zealand chief flight operations and safety officer, Captain David Morgan, said: “By working in partnership with our alliance partner Virgin Australia we hope we can stimulate the local market, drive innovation and investment and potentially uncover a sustainable biofuel supply suitable for our respective operations.” l
WestJet Boeing Next‑Generation 737
20 may/june 2016 biofuels international
technology news Alliance Bioenergy Plus launches new corn ethanol technology Alliance BioEnergy Plus, a US-based cellulose conversion technology specialist, has developed a technology that the company said will allow corn ethanol plants to process their own distillers grains and corn kernel fibre into cellulosic ethanol, adding millions of gallons to their annual output.
Alliance BioEnergy Plus tested its bolt-on cellulosic ethanol solution and its Harvest Technology CoPro Max separation unit at Alliance’s laboratories and its pilot plant, Ex Laboratories. Steady State testing has shown that the corn kernel is one of the most ideal feedstocks when used in the CTS process and converts almost all of the available sugars in as few as 12 minutes, Alliance Bio-Energy Plus said. When combined with the CoPro Max system, the CTS process adds nearly 12 million gallons of cellulosic ethanol to a typical 100 million gpy corn ethanol plant and recovers most of the corn oil and proteins from the distillers grains. The sale of the additional ethanol, corn oil, proteins and cellulosic credits can result in a yearly increase of nearly $48 million to a typical 100 million gpy corn plant, Alliance BioEnergy Plus said. Elsewhere, because there is no need for other feedstock, expensive material handling or pre-treatment processes are required. The logistical challenges and costs typically associated with daily transporting thousands of tonnes of sourced feedstock also is eliminated. The combined CTS/ CoPro Max system allows corn ethanol plants to enter
biofuels international
into the mandated cellulosic ethanol market with a low capital expense and the ability to expand and add outside feedstocks if the company chooses to do that.
More importantly, it transports distillers grains, a typically low yielding revenue source, into a high-value profit center, Alliance BioEnergy Plus said. Alliance BioEnergy Plus
plans to build and install the technology in an existing plant this year and begin marketing the first unit to more than 200 US ethanol pants by the fourth quarter. l
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may/june 2016 21
technology news US to use drones to breed strong sorghum plants for biofuels The US is funding research to breed better sorghum plants using sensor-laden drones and data mining, according to media reports. As Biofuels International went to press, a team of researchers was due to load a small aerial drone and two ground drones with sensors and release them on a field planted with hundreds of varieties of sorghum. According to MIT Technology Review, in just one trip, the three drones, along with several stationary sensors, are expected to gather enough intel to construct a 3D model of the field that will help researchers pinpoint when
US researchers will use drones to find the best varieties of sorghum for use
a single plant in the field of sorghum varieties is thriving beyond expectation. Compared to corn, its leading biofuel competitor, sorghum requires less water and can thrive in drought
and heat conditions where other crops die. However, according to the report, the best varieties of sorghum for biofuel production are not well known. The research team’s
objective is to use drones and automated sensors to measure as many physical characteristics of each individual plant as possible. This includes everything ranging from height and thickness to the angle the leaves are growing at and photosynthetic activity. Quoted in the MIT Technology Review, Paul Bartlett, senior robotics engineer with Near Earth Autonomy, the company that is building the aerial drone sensor system for the project, said: “The big picture goal is to get a big increase in the yield for this bioenergy sorghum.” He said if the sorghum yield is substantially increased “it could really make [sorghum] a sustainable bioenergy source”. l
US environmental agencies team up to launch biofuel data website The US Department of Agriculture Economic Research Service (USDA ERS) has unveiled a website which sources biofuels data from several US government agencies and puts them on one page. The Biofuels Data Sources matrix is a collaborative effort of the ERS and the US Department of Energy covering both ethanol and biodiesel. Data sources include the USDA, the US DOE, EPA, the Census Bureau and the International Trade Commission. The matrix provides 66 links to relevant agency reports, broken out in categories. The matrix also contains a compendium of market data on supply, use, price, and other data related to biofuels, biofuel feedstocks, and petroleum products. In addition to links to the well-known
The Biofuels Data Sources matrix provides access to selected sources of economic data on biofuels from the US government
USDA corn databases and the more recent Grain Crushings and Co-Products Production monthly reports, there are links to survey-based state-level ethanol
and biodiesel reports that provide weekly yield and price data for the fuels and coproducts compiled by the USDA Agricultural Marketing Service. l
22 may/june 2016 biofuels international
WHEN WE SEE A DISCOVERY, WE SHARE IT. Sure, we’re investing in the jobs of tomorrow. We just want them today. That’s why we’ve been working so closely with dynamic technology companies to bring them to Iowa. Our research institutions share discoveries with local bioscience companies, filling their pipelines with breakthrough products. Iowa brings together business leaders to boost innovation and position us for success in the global economy. Visit iowaeconomicdevelopment.com. And find out why innovation sees Iowa as the land of opportunity.
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biofuels green page
Biofuels getting high (or not) Hemp is hailed by some as the miracle plant that could provide us with everything from food to clothes. Now the biofuels industry is also looking to get into the green When talking about hemp going up into the air as smoke, biofuels will probably not be the mental image that most of us get at first. Yet hemp is not only for stoners to puff on. Varieties of the plant either low on the psychoactive substance (tetrahydrocannabinol, or THC) or not containing it at all have been used for ages and ages to produce anything from cloth and rope to medicines and food. Now biofuels may be next on the line. US-based real estate, agriculture, and natural materials company Alexander & Baldwin is probing the legal possibilities of planting hemp in Hawaii for “transitioning” its Maui plantation “out of farming sugar”. The company states that hemp could be used to diversify Hawaii’s agricultural output. Among the uses planned for the planted hemp are biofuels. According to the
company, it is still unclear what federal and state laws could possibly prevent the cultivation of industrial hemp in Hawaii. Yet the company is determined to try. Yet hemp’s potential as a biofuel feedstock is not a new invention. A 2010 study by researchers from the University of Connecticut in the US found that fibres of a low-THC industrial variant of cannabis sativa (yes, the stoners’ favourite) has features that make it viable, if not even attractive, possible biodiesel feedstock. Among one of the reasons for hemp’s possible biofuel future is the fact that it can grow on relatively poor soil. This would help reserve more fertile land for food production, according to the study’s lead researcher Richard Parnas, professor of chemical, materials, and biomolecular engineering. “For sustainable fuels, often it comes down to a question of food versus fuel. It’s equally important to make fuel from plants that are not food, but also won’t need the highquality land,” Parnas says. Many parts of the world today still rely on hemp as their main source of fibre, mostly around where hemp grows wild
Hemp could bring the biofuels industry to a new high
like, well, a weed. However, while the plant fibres are used for many purposes, some of them already mentioned, the seeds, which contain the plant’s natural oils, are often thrown away. It is these seeds that could be used to make biodiesel. Selling them could also bring extra income to the hemp-growing areas, many of which are relatively poor. “If someone is already growing hemp, they might be able to produce enough fuel to power their whole farm with the oil from the seeds they produce,” Parnas says. The University of Connecticut study revealed that hemp seed oils have a high degree of conversion potential. The research showed that 97% of the oil could be converted into biodiesel. Not only that, laboratory tests indicate that hemp-based biodiesel could remain usable in lower temperatures than any other type of biodiesel. Unfortunately, at least in the US, further industrial potential of hemp is restricted by legislature. Large-scale hemp cultivation is either illegal or restricted in many parts of the US, apart from certain small-scale cases. In 2014, the Obama Government
signed the Agricultural Act, which includes Section 7606, allowing for “universities and state departments of agriculture to begin cultivating industrial hemp for limited purposes”. More specifically, the section gives two conditions for hemp growing: 1) The industrial hemp is grown or cultivated for purposes of research conducted under an agricultural pilot programme or other agricultural or academic research 2) The growing or cultivating of industrial hemp is allowed under the laws of the State in which such institution of higher education or State department of agriculture is located and such research occurs. Further, in 2015, a bipartisan group of US Senators introduced the Industrial Hemp Farming Act, which would allow American farmers to produce and cultivate industrial hemp. The bill would remove hemp from the controlled substances list as long as it contained no more than 0.3% THC. Individual states, at least some of them, seem to also be in the process of relaxing their legislature on hemp. Oregon, for example, is exploring the possibility of rolling industrial hemp growing into its Oregon Medical Marijuana Program. While this programme is more concerned with its namesake uses for hemp, it could also pave way for biofuel producers to look further into its possibilities. The door is ajar to a future where we can drive hemppowered cars. The precedent exists, all the industry and decision makers need to do is act on it. However, unless the regulatory environments becomes friendlier, it may just as well be that hemp-driven traffic will become nothing more than a hazy dream. Can we let this possibility to go up in smoke? l
24 may/june 2016 biofuels international
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People on the move Neste appoints Ari Palmroos as safety director Ari Palmroos has been appointed the HSE director at Neste. The main task of the HSE organisation is to develop Neste’s safety culture as well as to promote safe behaviour and awareness. Palmroos will start working at Neste in the beginning of September 2016 at the latest. “Safe operations are the number one concern of Neste not only for the well-being of our personnel but also due to the nature of our operations. According to our safety vision, all accidents can be prevented. Our target is to take safety to a new level within the company,” says Hannele Jakosuo-Jansson, senior VP of human resources and safety. Prior to his move to Neste, Palmroos worked as the OHS director at UPM-Kymmene. He also has many years of experience in safety and line management duties at Fortum, Borealis, and Neste.
Ari Palmroos will lead Neste’s HSE department
Rebecca Liebert named president and CEO of Honeywell UOP Honeywell has named Rebecca Liebert as the new president and CEO of Honeywell UOP, a supplier of process technology, catalysts, engineered systems, and technical and engineering services.
biofuels international
She succeeds Rajeev Gautam, who had served in the role since 2009, and who now serves as president and CEO of the Performance Materials and Technologies division of Honeywell, of which UOP is a part. Liebert previously served as VP and general manager of UOP’s Catalysts, Adsorbents, and Specialties business, where she achieved strong financial performance in a difficult industry environment. Prior to that, she was VP and general manager of the company’s Gas Processing and Hydrogen business. She joined Honeywell UOP in 2012 from Honeywell’s Electronic Materials business, where she led the business into new markets, diversified the product portfolio, and drove new product development, steering the business through an industry downturn and positioning it for a strong recovery. Liebert joined Honeywell in 2006 from Alcoa, where she was president of Reynolds Food Packaging. Prior to this, she served as business director for the Solid Polystyrene and High Performance Polystyrene business of Nova Chemicals. She holds a bachelor’s degree in chemical engineering from the University of Kentucky, a doctorate in chemical engineering from Carnegie Mellon University, and an MBA from the Kellogg School of Management at Northwestern University.
directors in July 2015. Skor most recently served as the VP for communications of the Consumer Healthcare Products Association (CHPA) and the executive director of the CHPA Educational Foundation. At CHPA Skor oversaw public affairs campaigns, integrating strategic communications into legislative campaigns, and coordinating ally development. Before joining CHPA, Skor served as senior VP at Dezenhall Resources, a crisis communications and issues management firm. For more than a decade, she helped Fortune 500 companies and industry associations manage issues affecting brand confidence and
Emily Score has been named Growth Energy’s new CEO
corporate reputation through media, advocacy, coalition building, and consumer education campaigns. Skor is a Minnesota native and graduate of Wellesley College and she lives in Washington, D.C., with her husband and two children. l
Growth Energy appoints Emily Skor as CEO Growth Energy, a US ethanol producers’ representative, has named Emily Skor as its next CEO. She succeeds Tom Buis, who assumed a new role as co-chairman of Growth Energy’s board of
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biofuels plant update heading
Plant update: Ethanol in the US Abengoa
Location
Nebraska, Kansas, New Mexico, Illinois, Indiana End product Bioethanol Construction / expansion / Abengoa’s US biofuel unit has filed acquisition for bankruptcy. The company has received $41 million in from the US Bankruptcy Court to restart production at the Nebraska facility as per bankruptcy protection arrangements Project start date Abengoa’s US biofuels arms filed for bankruptcy in February 2016 Investment $41 million (€36.4m)
Archer Daniels Midland Co. Location Nebraska and Iowa End product Ethanol Feedstock Corn Construction / expansion / ADM has started a strategic review of acquisition its Nebraska and Iowa ethanol mills amidst low oil prices Project start date Review started in February 2016 Investment $1.3 million (€1.15m) between the two plants
Aventine Location Aurora, Nebraska End product Bioethanol Feedstock Corn oil Construction / expansion / Aventine has expanded its Nebraska acquisition plant through the installation of a Valicor corn oil separation system Designer/builder Valicor Completion date May 2015 Investment $4.4 million (€4m) Comment Aventine’s Nebraska plant has since been purchased by Pacific Ethanol
CHS Location Annawan, Illinois End product Bioethanol Construction / expansion / CHS, North American farmer-owned acquisition cooperative and a global energy, grains and foods company, has acquired the Patriot Renewable Fuels ethanol plant from Patriot Holdings Designer/builder Patriot Renewable Fuels Completion date June 2015 Investment The sale price has not been revealed
Croda Location New Castle, Delaware End product Non-ionic surfactants Feedstock Bioethanol Construction / expansion / Croda has begun construction of a acquisition plant to produce surfactants from bioethanol for the chemicals industry Project start date April 2015 Comment With the use of bioethanol, Croda hopes to reduce its emissions impact
DuPont
Location End product Feedstock Capacity Construction / expansion / acquisition Completion date Comment
Nevada, Iowa Cellulosic ethanol Corn stover 30 million gpy DuPont has opened the world’s largest cellulosic ethanol plant in Iowa October 2015 Most of the plant’s feedstock will be sourced from within a 30-mile radius from the facility
Ensyn Location End product Feedstock Capacity Construction / expansion / acquisition Project start date Completion date Investment
Dooly County, Georgia Cellulosic ethanol Forestry waste 20 million gpy Ensyn is planning to start production at its Georgia facility in 2017 January 2016 Projected for January 2017 $100 million (€88.8m)
Ergon Biofuels Location Vicksburg, Mississippi End product Bioethanol Feedstock Corn Construction / expansion / Ergon Biofuels’ ethanol plant in acquisition Vicksburg is back to full operation following a brief suspension in services to facilitate renovations and upgrades Completion date June 2015
Green Plains Location Hereford, Texas End product Bioethanol Feedstock Corn oil Capacity 100 million gpy Construction / expansion / Green Plains has signed a definitive acquisition agreement to purchase Murphy USA’s ethanol production facility located in Hereford Designer/builder Lurgi Completion date November 2015 Investment $93.8 million (€85m)
Green Plains Location Hopewell, Virginia End product Bioethanol Capacity 1.1 billion gpy after capacity increase Construction / expansion / Green Plains has acquired an ethanol acquisition production facility located in Hopewell from FutureFuels Project start date October 2015 Completion date Beginning of production is projected for Q2 2016
26 may/june 2016 biofuels international
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biofuels incident report A summary of the recent major explosions, fires and leaks in the biofuels industry Date
Location
Company
Incident information
26/04/2016
Visakhapatnam, India
Biomax Fuels
A gigantic fire broke out at Biomax Fuels’ biodiesel plant in India, where 12 of the facility’s 18 fuel tanks caught ablaze. Some of the tanks are suspected to have exploded, but the plant’s 15 employees have all reportedly escaped with only minor injuries. At the time of writing the fire is still raging despite 14 hours of extinguishing attempts, and the cause of the incident is unknown.
10/04/2016
Wisconsin, US
N/A
A US railroads authority has determined that a human error caused the rail accident last November, which saw more than 20,000 gallons of ethanol leak into the Mississippi river. According to a recent accident report, the train operator engaged the train’s breaks too early, causing 25 carriages to jump off the tracks. The November accident caused $2.1 million (€1.85m) in damages to rail equipment and tracks. No immediate environmental effects from the spilled ethanol have been observed, but testing is due to continue until July.
BioEnergy Development Group
A massive blaze at BioEnergy Development Group’s biodiesel plant forced the evacuation of employees and nearby residential homes. Methanol leaking from a tank caught fire and it took the fire crews 1.5 hours to get it under control. No injuries were reported and an investigation is undergoing to find out the cause of the methanol leak, which has not been revealed at the time of the writing.
18/3/2016 Tennessee, US
6/3/2016
Louisiana, US
Renewable Energy Group
The US Occupational Safety and Health Administration has fined a Geismar biodiesel plant $70,000 (€63,920) over a hydrogen gas explosion and fire that injured four workers last September. The Renewable Energy Group, a biofuels producer headquartered in Iowa, was also cited with three “willful” safety violations.
2/3/2016
New York, US
Norfolk Southern
A 16-car freight train derailed and two tankers containing ethanol ruptured near Ripley, New York. No fire or injuries were reported, but homes were nonetheless evacuated due to a potential risk of explosion from ethanol and propane. The cause of the accident was unknown at the time of writing and a state of emergency was ongoing in Ripley.
28 may/june 2016 biofuels international
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SCB Commodity Brokers Global Biofuels Prices Prices quoted: 01/04/2016 Product
Mid Price
URL: www.starcb.com
Product
Mid Price
EU Biodiesel RED ($/mt)
US Biodiesel B100 ($/gal)
FOB ARA RME
875.75
Houston SME
2.984
FOB ARA SME
855.75
Houston TME
2.904
FOB ARA PME
825.75
NY Harbour SME
2.984
FOB ARA FAME 0
840.75
NY Harbour TME
2.894
FOB ARA FAME -10
875.75
Mid West SME
2.994
EU Biodiesel Non RED ($/mt)
US Ethanol ($/gal)
FOB ARA RME
860.75
NY Harbour Barges
1.523
FOB ARA SME
840.75
Argo ITT Illinois
1.435
FOB ARA PME
810.75
FOB USGC
1.530
FOB ARA FAME 0
825.75
Rule 11 TWS (Railcar)
1.430
FOB ARA FAME -10
860.75
Rule 11 NWS (Railcar)
1.430
EU Ethanol (€/cbm)
RINs ($/RIN)
T2 FOB Rotterdam
2016 Ethanol (D6)
0.723
US Ethanol ($/cbm)
2016 Biodiesel (D4)
0.805
FOB US ANP
424.00
2016 Advanced (D5)
0.798
FOB Santos
467.50
Emission Credits ($/mt)
434.00
LCFS Credits
121.00
Current price index
T
he rally in diesel markets from January’s lows has accentuated the typical seasonal upswing in biodiesel activity, which the start of spring brings. UK refineries have been buying Ucome cargoes since February. At first, this was to fulfil their shortfall in year 8 (April 2015 to April 2016) RTFO offset requirements, with their attention subsequently switching into fulfilling their year 9 requirements. UK specification Ucome continues to trade at a small discount to German specification product. French oil companies are
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also tendering for second quarter volumes, but Germany remains the big demand disappointment in the run up to the Easter break. Sellers remain hopeful that German buyers will return to the fray at the start of April. Regulatory uncertainty in the Mediterranean region meanwhile continues to interrupt trade flows. Italian authorities recently reviewed the legislation surrounding double counting biodiesel imports, and although no amendments were made it, has led to buyers, traders, and producers focusing on domestic product at the expense of imports.
The European ethanol market saw its values drop at accelerating pace in Q1 2016, under weight of ample supplies from the US and South America, along with reported shortages of spare storage space in Rotterdam. While producers continued to enjoy €600 and higher levels at the end of 2015, T2 ethanol saw a more than €150/m3 cut in prices towards the end of March, with the latest levels sitting somewhere around €450. That, subsequently, was reflected in production margins, which narrowed down rapidly but still allowed hedgers to lock in some
decent numbers along the curve. Spreads to gasoline also diminished, seeing April Ebob/T2 drop below $200/t, bringing more favourable conditions for blenders. The length of physical material at the prompt also saw the front of the T2 curve plunge into a deeper carry, as April/ May reached -€10 in recent days, but starting from Q3 we see a small inverse, which is widening towards Q4 months. Demand for high GHG and double counting material remained as strong as ever for the rest of this year, with the latter seeing buyers ready to pay above €200/m3 premiums to Platts in certain markets. l
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biofuels market analysis In the midst of a shaking transportation business, trucking companies are increasingly embracing biodiesel
Keep on truckin’
Brian Milne, product manager, Schneider Electric
S
pot values for soya methyl ester B100 biodiesel arced higher early in the second quarter, with the advance running contrary to the petroleum-based diesel market that faded from March highs amid weak demand and as crude prices dropped back from more than $40 (appr. €35) bbl in the face of stiff technical resistance and global oversupply. In the US, distillate fuel supplied to market was down nearly 25% in the first quarter compared with the five-year average, and 49% below the first quarter 2015 data from the Energy Information Administration (EIA), due in large part to limited heating demand. Industrial output has been weak too, with the majority of diesel in the US consumed in the industrial and commercial sectors. Freight tonnage did jump in February from January and from February 2015. “While it is nice to see a strong February, I caution everyone not to read too much into it,” said Bob
Costello, chief economist with the American Trucking Association, the largest US association for the trucking industry. “The strength was mainly due to a weaker than average January, including bad winter storms, thus there was some catch-up going on in February.” Costello said he remained concerned over “elevated inventories” throughout the supply chain. “We need those inventories reduced before trucking can count on more consistent, better freight volumes.” Diesel fuel consumption is also under pressure from reduced rail movements amid a steep decline in coal
in the US, able to do so in large part through clarity in a federal demand mandate and a tax incentive. In November 2015, the US Environmental Protection Agency (EPA) finalised the annual demand mandates under the Renewable Fuel Standard (RFS) for 2016, with the RFS requiring progressively higher use of renewable fuels through 2022. The renewables are set in five nested categories, with one of those categories being biomass-based diesel fuel. Obligated parties under the RFS, which include oil refiners, importers, and blenders, must blend a certain amount of renewables
The market for biodiesel has expanded in the US, able to do so in large part though clarity in a federal demand mandate and a tax incentive shipments, and with the dramatic drop in drilling for oil and natural gas. Coal consumption in the US was down 52% in 2015 from 2010, statistics from the EIA show, while oil services provider Baker Hughes reports a 77% decline in the US rig count from peak activity in October 2014 to the start of the second quarter. Biodiesel going strong In contrast, the market for biodiesel has expanded
within their pool of petroleum products that is based on their production or amount of imports, or purchase an offsetting Renewable Identification Number (RIN). The EPA was well behind in finalising these targets, with the November 2015 rule including the mandates for 2014 and 2015. EPA also finalised the 2017 mandate for biomassbased diesel fuel, providing greater forward visibility for the US biodiesel industry, which has encountered a
great deal of uncertainty on federal incentives over the past few years. EPA was also generous in their carve-out for biomassbased diesel fuel, finalising demand above the RFS outlined in the Energy Independence and Security Act passed in 2007. This year, the mandate calls for 1.9 billion gallons of biomassbased diesel to be blended with petroleum-based oil products, which can include biodiesel and renewable diesel. The mandate increases to 2.0 billion gallons in 2017. Producers have responded, with biomass-based diesel production in January and February running well above the year-ago period, up 37% and 48% respectively, data from the EPA shows. The industry produced 257 million gallons of the renewable in those two months. The industry also benefits from a tax credit, which was retroactively renewed by the US Congress in December for 2015 and extended through the end of 2016. The US Treasury pays $1 gallon for blending biodiesel or renewable diesel into diesel fuel or heating oil. The Californian example Another driver of demand for biodiesel is California’s Global Warming Solutions Act of 2006, usually referred to as AB32, which required a Low Carbon Fuel Standard (LCFS) to be developed. AB32 mandates that California reduces the state’s greenhouse gas (GHG) emissions to 1990
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Industrial production
Distillate fuels supplied to US market
levels by 2020, which is roughly 15% below emissions without such a standard. Under the LCFS, a carbon intensity rating of a fuel or blendstock is assessed, with biodiesel and renewable diesel satisfying the standard and able to generate carbon offsets. The LCFS was seen as a driver for biodiesel demand, but litigation tied up enforcement of the standard. In 2015, legal challenges were resolved, and California readopted the measure. Demand for biodiesel and renewable diesel is expected to grow sharply now that the
last year. That puts biodiesel consumption at 1.463 billion gallons in 2015. The US trucking industry is increasingly embracing biodiesel. A survey conducted by NTEA, the association for the work truck industry, shows 18% of work truck fleets now use biodiesel. This number is up from 15% in 2015, according to the National Biodiesel Board (NBB), which added that more fleets plan on adopting biodiesel. Doyle Sumrall, managing director of NTEA, said although “general interest has dropped in recent years due to
Demand for biodiesel and renewable diesel is expected to grow sharply now that the LCFS is again in force EPA qualified biomass-based diesel production
Spot prices
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LCFS is again in force, with California consuming roughly 3.6 billion gpy of diesel fuel, according to the California Energy Commission (CEC). The commission previously said: “For the long-haul trucking sector, biodiesel and renewable diesel are widely expected to play a key role in displacing diesel fuel.” California has 170,000 miles of highways and major roadways, more than 26 million passenger vehicles and light trucks, and more than one million medium- and heavy-duty vehicles. While accounting for 3.7% of the total vehicle population, medium- and heavy-duty trucks consume more than 20% of total transportation fuel and generate roughly 25% of GHGs, according to CEC. Nationally, biodiesel accounted for 2.4% of the distillate pool consumption in 2015 according to the EIA, which reported 60.9 billion gallons of distillate fuel supplied to the market
persistently low oil costs and will likely remain muted until prices rebound,” fleet interest in biodiesel remains strong. According to NBB, the US trade association for biodiesel, Gross Vehicle Weight Class 5-8 vehicles account for 92% of on-road diesel/biodiesel fuel use, and nearly 90% of the medium- and heavy-duty truck OEMs support the use of B20 biodiesel blends. l
For more information: This article was written by Brian Milne, who manages the refined fuel’s editorial content, spot price discovery activity and cask 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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biofuels ethanol in North America Within the US biofuels industry, Iowa is leading the way with its strong approach towards the bio-based market
The trailblazer By Colin Ley
T
he signing in April of a new tax credit by the US state of Iowa, relating to the production of renewable chemicals, could have a significant impact on local businesses across the state’s bio-based crops and some impact on the fuels industry. It could also have an impact on how other US states approach the task of ensuring that their own biofuels and related industries are given enhanced development incentives, far beyond anything currently delivered on a federal level. Although the new credit is designed to encourage businesses to embrace innovative product opportunities in the biochemical sector, with the aim of utilising Iowa’s vast corn and soya resources, there could also be a knock-on effect on the state’s established ethanol and biodiesel industries. In simple terms, the core details of the new Iowa tax credit are as follows. On 7 April, 2016, Iowa Governor Terry Branstad signed legislation to offer new tax incentives for renewable chemical production, making Iowa the first state to offer such credits to companies that produce biochemicals. Designed to provide a total of $10 million (€8.88m) a year to be shared by businesses that use bio-based feedstock to produce chemicals, the new credit will open to applicants on 1 January, 2017, and stay open until 31 December, 2026. Individually, businesses that have been operating for less
than five years can apply for up to $1 million, while longer established enterprises can apply for $500,000. What for biofuels? The new legislation ticks several biofuels boxes in Iowa, standing as a beacon of state commitment to the bio-based use of corn and soya and a renewed statement of local support for the continuing move away from a fossil fuel-based environment. It also contrasts with the on/off nature of federal government backing for biofuels in that the new credit will run until 2026, totally free from the need for industry leaders to spend time on the almost annual renegotiation process they face in relation to biofuels blending support and similar incentives. It also potentially expands the profitability base for Iowa’s corn and soya growers and the ethanol and biodiesel processors who buy their crops. Given that current biodiesel and ethanol consumption is running below the state’s soya and corn output potential, the creation of an incentivised route into new biochemical products adds a fresh income stream for established businesses and possibly for new enterprises as well. “The new credit is designed to give companies fresh opportunities to add value to soya and corn residues, some of which are currently being viewed as waste items,” says Grant Kimberley, executive director of the
Grant Kimberley, executive director, Iowa Biodiesel Board (IBB)
Iowa Biodiesel Board (IBB), which represents the state’s entire biodiesel industry, from production through distribution to end users. But when asked by Biofuels International if there was a danger that the new credit might draw research and development (R&D) attention away from biodiesel and towards biochemicals, Kimberley says that he does not see that as a major risk. “The key point is that it provides another market for our sector’s by-products and will, we hope, leave businesses with more value as a result. I don’t think it’s
a major game-changer as such but it’s certainly a useful step forward,” he says. Comprehensive state policy There’s a hope, of course, that the new incentive will attract additional bio-based companies to locate in Iowa, adding further strength to the state’s already dominant biofuels focus. If that happens, then Iowa’s approach to biofuels will become increasingly difficult for other states to ignore, irrespective of their current biofuels’/ fossil fuels’ bias. According
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Iowa tax credit a “strong” bio-based business signal, says DuPont The Iowa Legislature, Governor Terry Branstad, and Iowa itself are to be commended for their extraordinary leadership and vision in passing the 7 April biochemical tax credit, says DuPont’s William F Feehery. “The move sends a strong signal that Iowa recognises the potential for bio-based business and the economic growth it represents,” he says, commenting as president of DuPont Industrial Biosciences. “Each year, bio-based products contribute $369 billion to the US economy and support 4 million jobs, many of them in small towns in Iowa. As bio-based products increasingly compete favourably to the IBB, Iowa is already the leading biodiesel-producing state in the US, with 12 operating biodiesel plants that put out a record 242 million gallons of biodiesel in 2015. Positive economic impacts from this sector are also impressive, including the creation of 3,000 full-time equivalent jobs in 2015 and an almost $345 million contribution to Iowa’s GDP. IBB also claims that for every penny increase in the value of a pound of soybean oil, the state gets back almost $3 million in taxes. As such, the board calculates that a 5% rise in soybean oil prices, due to biodiesel demand, would be worth about $15 million in additional direct tax income. These figures help to explain why Governor Branstad drove the new tax credit through the necessary state system, and why Iowa – in general – is willing to do its own thing in terms of creating better biobased sector support than is available at a federal level. “Biofuels support at a federal level continues to be a bit chaotic,” says Kimberley. “Biodiesel and ethanol blending mandates, for example, have been on one year and off the next, then allowed to lapse before being reinstated. As a result there is considerable uncertainty
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against conventional products on both price and performance, they offer the additional advantages of being renewable and more sustainable than traditional products. “We have no doubt that Iowa’s biobased sector will only grow stronger as a result of the biochemical tax credit, positioning the state as a global hub of innovation and discovery,” he says. These comments, coming from DuPont, carry significant commercial weight, given that the company’s cellulosic ethanol facility in Nevada, Iowa, is acknowledged as the largest in the world and operates under the same Iowa legislature which has now produced the new tax credit.
surrounding biodiesel policies. “There’s also a running debate over whether or not we should have a blenders credit system to promote biodiesel use or a producers credit, with most of us arguing that the blenders route results
“DuPont is proud of its deep roots in Iowa, as well as our tradition of innovation and collaboration, most recently exemplified by the Nevada development,” adds Feehery. “Iowa, therefore, with its own deep roots in agriculture and innovation and complemented by this tax credit, is a state that is well-positioned to attract new businesses that want to capitalise on the fast-growing bio-based sector. “Everyone from the farmers who grow corn and other feedstocks, equipment manufacturers and truck drivers, to biobased businesses like ours, will be better poised to succeed within the innovationfriendly ecosystem which is now taking shape in Iowa,” he concludes.
together, means Iowa has the most comprehensive biodiesel policies in the country. “We believe the Iowa approach makes sense, creating jobs and economic opportunities, boosting demand for our
“Biofuels support at a federal level continues to be a bit chaotic” Grant Kimberley, executive director, Iowa Biodiesel Board (IBB)
in US taxpayers helping to fund biodiesel production in Argentina, via imports, rather than giving their support to domestic US producers as the law intended. “What we need is more support predictability so that the market doesn’t have to keep guessing about what might happen next. That’s partly why Iowa has started to take matters into its own hands, putting new policies in place at a state level, such as the 7 April tax credit. “We also have a small production credit in the state, a small retailer credit, and a partial road tax exemption for some biodiesel blends. All of which, when working
agricultural outlets, and generally delivering a lot of benefits for the state,” Kimberley concludes. The situation elsewhere Iowa isn’t alone in trying to counter federal level uncertainty by acting independently, of course. New York City, for example, has a bioheat mandate in place with plans in development to increase its value to users. California operates its own low-carbon fuel standard and Illinois supports retailer credits, while Minnesota and Missouri are also running progressive biofuels policies. The question now is how
many more US Governors will look at what Terry Branstad has done and follow his lead. The indications to date are that plenty are certainly watching. IBB, meanwhile, has an extensive list of 2016 legislative priorities, all designed to keep moving Iowa’s biodiesel businesses forward. The list includes: • To extend a biodiesel production credit through 2024, originally set to expire at the end of next year. The credit is 2 cents per gallon on the first 25 million gallons of production per biodiesel plant. • To extend and expand a biodiesel promotion retail tax credit. The incentive would continue to provide petroleum retailers 4.5 cents a gallon on blends of at least 5% biodiesel (B5) through 2017. From 2018 – 2024, the B5 incentive would drop to 3.5 cents per gallon, but an additional incentive of 5.5 cents per gallon will take effect for gallons of B11 and higher. • To continue the successful Renewable Fuels Infrastructure Program by supporting the Governor’s recommendation of $2.4 million appropriation • To support the biochemical tax credit legislation (already successfully completed). l
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biofuels regulations The UK is falling behind on its renewable fuel obligations and the country’s government is encourages to step up its game
Act, and act now
2
016 is a crucial year for decarbonising UK transport with the government preparing to consult on legislative changes to the Renewable Transport Fuel Obligation (RFTO), a policy whose aim is to increase the share of renewable energy use and reduce greenhouse gas emissions from road transport. From a European perspective, it is crucial that any change to the UK policy will raise the ambition of the RFTO rules to enable higher biofuel use, otherwise the UK risks not meeting its EU climate and energy obligations. The RFTO is a crucial component of the UK’s government policy to enable it to reach the objective of at least 10% renewable energy use in transport (RES-T), set in the EU Renewable Energy Directive (RED). Introduced in 2008, the RFTO requires that 4.75% by volume of suppliers’ fuel is from renewable sources, mostly biofuels. Additionally, the UK government must comply with the terms of the EU Fuel Quality Directive (FQD), which obligates the UK to reduce its transport fuel emissions by at least 6%. The UK must meet these obligations by 2020, but progress has been slow and time is running out. The national report Under the reporting requirements of the RED, each member state was obligated to submit a National Renewable Energy Action Plan (NREAP) to the European Commission in 2010, with the purpose of outlining how
the member state planned to meet the targets of the RED. After this, every two years, member states are expected to submit a Renewable Energy Progress report, outlining progress towards meeting the RED target. In the UK case, its latest Renewable Energy Progress report to the Commission clearly shows that the UK is absolutely not on track to meet its own NREAP forecasts and progress to meet the RED target has been much too slow. The UK government must urgently
widen considerably over the course of the next years, unless corrective action is now urgently taken. A possible solution The reason for this stiffled progress is because, since 2013, the UK has not raised the level of the RFTO minimum obligation for renewables in transport, which has – at 4.75% – effectively capped the use of renewables in the UK transport fuels mix. The UK government was unwilling to increase its biofuel
‘The UK should introduce a minimum obligation for the use of biofuel in petrol’ address this situation by raising the level of renewables use in transport. One crucial way to do this is to increase the levels of renewable ethanol fuel blended into the UK petrol pool. Specifically for renewable ethanol, consumption in the UK has slowly increased since 2010, but as of 2014 ethanol consumption is now falling 61,000ktoe (kilotonnes of oil equivalent) short of the UK’s own expectations. Given that the UK’s own forecast for ethanol consumption was expected to increase significantly after 2014, the gap between the UK’s actual consumption and its previous forecast will
obligations until the Indirect Land Use Change (ILUC) dossier was finalised at EUlevel. With the revision of the RED and FQD to take ILUC into account now adopted, in addition to the adoption of the FQD methodology Directive (Directive 2015/652), it is imperative that the UK now raises the level of the RFTO to help it meet the EU targets. To support its progress to meet the EU targets, the UK should also introduce a minimum obligation for the use of biofuel in petrol, like has been done in many other EU member states, such as Austria, Czech Republic, France, and Portugal. Raising the minimum levels of biofuels
to be mixed in fuel and in petrol will require higher biofuel blends. To achieve this, the roll-out of E10, an ethanol-petrol blend with up to 10% ethanol in volume, is a crucial step. E10 has already been successfully introduced in several member states, such as France, Finland, Germany, Netherlands, and Lithuania. Last year, a Transport Energy Taskforce set up by the UK Department of Transport concluded that “displacing petrol with higher bioethanol levels”, such as E10, will “probably be required” to meet the EU targets. The UK Government must head this Taskforce conclusion and increase the use of ethanol by introducing E10. Ethanol is a solution widely available in Europe today and is the lowest cost carbon abatement tool to decarbonise UK transport1. E10 can be used in existing engines and infrastructure and, with 92% of UK cars already compatible, it requires no major changes to the UK car fleet. E10 is now the logical and necessary next step for the UK. l
Reference: The Role of Biofuels Beyond 2020, Element Energy, 2013 For more information: This article was written by Robert Wright, Secretary General at ePure. Visit: www.epure.org
34 may/june 2016 biofuels international
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Since day one, Lallemand Biofuels & Distilled Spirits has been the driver behind many modern ethanol fermentation advancements. No other company has delivered more technological breakthroughs to help make ethanol production efficient and profitable. Our customer partners fuel our pursuit of innovation. We reward these partnerships by offering the industry’s highest quality products, service and educational resources. As writers of The Alcohol Textbook and organizers of The Alcohol School, we have established new industry standards. Through our innovation we’ve changed the game to your advantage. Contact us today at +1-866-342-7026 or www.lbds.com.
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biofuels aviation biofuels One of the most exciting developments in aviation is the introduction of sustainable biofuels. Boeing flies in the environmentally-friendly skies
Flying the flag of aviation biofuels
Darrin Morgan, Boeing’s sustainable aviation fuels strategy director
U
S aircraft manufacturing giant Boeing is working with strategic partners to generate sustainable aviation biofuels capable of reducing carbon emissions and providing energy diversification. Liz Gyekye caught up with Darrin Morgan, the company’s director of sustainable aviation fuels strategy. Where do you expect demand to come from? Demand is not the issue. Supply is the issue. We and many other airlines have created the Sustainable Aviation Fuel Users Group (SAFUG), which was formed in 2008 to promote sustainable aviation biofuels. We created SAFUG to intensify our efforts around ensuring that fuels used in airplanes ended up with a sustainable outcome. We have followed the Roundtable on Sustainable Biomaterials (RSB) standard
as much as possible and we have participated in its development. SAFUG members demand up to a third of global aviation fuel, around 20 billion plus gallons. There is around 100 billion litres of biofuels produced in the world today. The issue is not about demand but about supply, because most of this earlier technology biofuel is not compatible with aviation. It is not that the biofuels industry does not want to support aviation, rather we need to help lower the barriers of entry into our industry and help improve the drop-in nature of the product. Following a series of test flights from 2008 to 2011, the aviation industry was given approval to use biofuels in passenger flights. However, when the supply chain was implemented, decades before these proof-of-concept flights and subsequent fuel approvals, no one knew more advanced versions of biofuels could be used because the technology was not developed yet. Nevertheless, time has marched on, and so what essentially needs to happen from our perspective is that aviation should be at the front line for biofuels because we cannot substitute it away for electric-powered airplanes and other things. We are going to have liquid fuels for a long time. Over the past decade, we have worked actively to get the technology ready and supply chains ready, so that we can repurpose and augment those supply chains. This is now underway and it is going well.
Essentially, the issue is not demand or supply, the issue is technology and timing. The good news is the technology continues to break our way in order to enable the supply chain to be affordable. How close is the technology to commercial maturity? It already is. If you add the amount of jet-fuel-range hydrocarbon biofuel, which is currently working its way through the approval process, it works out to around 1.2 billion gallons of advanced hydrocarbon biofuel that could serve the aviation market. It is produced for ground transportation currently. None of it can get into the aviation supply chain today. This is because when the specification for biokerosene was written in 2011, it excluded that tranche of fuel. We took a look at this specification and realised that with some slight changes, we could essentially include those 1.2 billion gallons of advanced hydrocarbon biofuel as aviation fuel. That approval process is underway now and Boeing is helping to lead the approval process. Much of this fuel is costcompetitive even in a low oil price environment. We are waiting on the fuel approval to occur very eagerly. If this comes on board, this could make up close to 2% of all aviation fuel demand. That is just one pathway. This technology does not include other routes that are at other stages of development. This gives you a feel for
the trajectory of things. What is the next biggest challenge for biofuels within aviation industry? The big trend is that it cannot just be about fuel. The petroleum industry does not operate that way and neither will be bio-economy stemming from sustainable biomass. Much of profitability of a barrel of oil comes from the high-value speciality chemicals and commodities that are in petroleum. Fuels are the lower profit leftovers. The bioeconomy is going to work in a similar way. It is going to be the high-value products that are profitable. The higher the value of the entire commodity, the better off the fuels are going to be as a whole. Do you think aviation’s sustainability agenda is moving forward? Yes. We have been leading the charge as an industry. We launched this when there started to be a backlash against biofuels. We needed to take the high road on sustainability, not just because it was the right thing to do, but because it was possible. By taking that high road, we actually drove technology in a cost-effective and highly sustainable manner. Ultimately, economic viability and sustainability are not at odds with each other. If that technology is the right technology, those things are symbiotic. We realised this by working through a comprehensive global standard. The process of
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Boeing is focused on developing sustainable aviation biofuel to reduce aviation’s carbon emissions
A halophyte plant is showing great promise in sustainable aviation biofuel research
doing that mitigates risk as part of getting RSB-certified. We also have cooperated well with environmental organisations. We worked together with them through the RSB process to come up with a comprehensive standard. That standard is helping to drive better technologies. As opposed to being a barrier, it is actually an enabler. To our industry’s credit, we had that insight earlier on, so we were not afraid of setting a sustainability agenda. What do you think will represent the biggest challenge to Boeing in the future? I think getting the technological
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confidence and the strategic insight necessary internally within the industry, to enable the industry to progress, will be a challenge. We are an aircraft manufacturer, not a fuel company. However, as an airplane company we wanted these supply chains to exist. It is a bit of an unusal thing for an airplane manufacturer to get so active in developing a supply chain for fuels. We made a strategic decision, many years ago, to do exactly that, and that has been successful. It has been challenging to get technologies to line up against the enthusiasm around the topic, and sometimes the enthusiasm gets ahead of
the technology. We seek to make sure expectations are realistic when a particular technology is ready. That is a good problem to have – more enthusiasm than not. The fuel approval process is also a challenge. This means we have to advocate that the aviation fuel approval system needs to work in way that supports the supply chain and not act as a barrier. This process is new. For the vast majority of the jet age, fuel was just fuel. There was not a lot going on with jet fuel. Suddenly, fuel became the forefront of a technological development effort. It required much effort to be put into the fuels approval system itself. We invested heavily internally and have a strong pool of talent. We need all the original equipment manufacturers (OEMs) to step up and fully support fuel approval. Our first project was in 2007 with Virgin Atlantic to test biofuel on a 747 to prove that this was technically feasible. Yes, it is more than
technically feasible. The issue is more about getting the supply chain in place and asking the fundamental question of “Can it be done?” More than 2,000 commercial flights have happened on biokerosene. There are more flying on this product every day. That number will exponentially increase once this new fuel approval process occurs. Those 2,000 flights have occurred on the existing biokerosene, which is relatively difficult to make because of the way the specification is written. Once the specification is rewritten to include those 1.2 billion worth of kerosene I talked about earlier, the number of biofuel flights will grow. However, we really need to get that fuel approved. That is why we need the other manufacturers to step in as much as possible to help with that approval process. What one thing do you think industry should be doing more of? Treat biofuels approval as an important aspect of the aviation business. Invest in it properly and support with technically competent people. What next? More of the same. For example, green diesel is a hydrocarbon renewable diesel. It is also a kerosene product in terms of its performance. That is what we are annexing into the aviation kerosene specification with the help of our fellow OEMs. In the coming years, there are many more pathways that relate to other types of biofuels that will all be compliant with aviation’s needs but have to be approved as well. Ongoing continual investment by OEMs is happening to make sure the approval process does not become a barrier to entry for these supply chains. OEMs need to do their part in supporting the fuel approval process. Investing in it and resourcing it properly. l
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second generation ethanol biofuels heading
Recycling carbon: Turning waste into clean fuels and chemicals
Enerkem’ s waste-to-fuel facility in Edmonton, Canada
up with Enerkem’s Business Development senior vice president Timothy J. Cesarek.
Timothy J. Cesarek, Enerkem’s business development senior vice president
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anadian Enerkem’s commercial-scale waste-to-biofuels and chemicals facility in Edmonton, Alberta, Canada, was inaugurated in 2014. The project is considered the world’s first major collaboration between a large city and waste-tobiofuels producer to turn municipal solid waste (MSW) into biofuels and renewable chemicals. Liz Gyekye caught
Tell me what Enerkem are up to now? We are currently resuming commercial production after we installed equipment to double our methanol production capacity. A module converting our biomethanol into advanced ethanol will be added during 2016, which will give us the flexibility to sell both products. We expect that the switch to ethanol will occur in 2017. The Edmonton facility can convert 100,000 dry tonnes of municipal waste into fuel each year. We pre-treat that into refuse derived fuel (RDF) and that 100,000 tonnes of RDF can produce 45 kilo tonnes of methanol. This methanol then can make 38 litres of ethanol. For our future projects, we intend to put two to three gasifiers side by side to increase the
scale of our production. We also have another project for which we are in the permitting phase – in Varennes (Quebec), a city outside of Montreal. This will be our second full-scale facility. What interesting project developments do you have? There are a number of other projects that we are developing in Europe, one with chemical giant AkzoNobel and a consortium including Air Liquide, EEW, Van Gansewinkel and nine other groups. The project partnership will development a waste-to-chemicals facilities in the Netherlands. This is a project to take municipal solid waste and produce methanol – molecular recycling. You have carbon in the waste stream and our object is to make synthesis gas from waste and build useful chemical molecules from urban waste. The
methanol will be utilised by AkzoNobel in its value chain, as they are in the coatings and solvents business. We are also in discussions with interested parties in China in respect to gasification and municipal solid waste to make ethanol or methanol, depending on the region. What is driving progress? In Europe, there is a genuine interest in the circular economy. Our process is seen as a means by which to repurpose non-recyclable waste streams and turn them into chemicals, which are turned into other products. So, the genuine interest in Europe has been around the circular economy. In North America, the interest is around a means of responsibly embarking on a series of waste diversion goals. There are a number of cities who are looking to export waste to other locations because urban
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The Edmonton facility can convert 100,000 dry tonnes of municipal waste into fuel each year
landfills are becoming the thing of the past. As a result of not having urban landfills, the municipalities have to ship waste at a much longer distance. This increases their overall disposal cost of waste. As these waste diversion goals continue, there will be the need for other appropriate means to convert waste to other products as opposed to putting it in a landfill. The landfills are getting full. The driver in North America is cost efficient means of waste diversion. In China, the driver is around the infrastructure need. They desire to do something environmentally responsible. Urbanisation is increasing and this is putting demand on infrastructure. So, the demand for our type of system is needed as it is seen as a means to manage waste and to do it in an environmentallyresponsible way. On top of that, China is a big user of methanol and ethanol. China not only in chemicals but in the fuel supply of things. This is an opportunity for us. How is China going at the moment? We are optimistic that there will be several Enerkem plants in China in the
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future. I think there will still be strong demand for waste infrastructure in the future. Given the increased urbanisation in China, you can imagine the stress on wastewater treatment and waste management
in a higher carbon yield. That higher carbon yield results in more methanol. Methanol is an excellent chemical building block. You can make many things from methanol. You can make ethanol, acetic acid
The Edmonton facility can convert 100,000 dry tonnes of municipal waste into fuel each year infrastructure. These are all things the Chinese are addressing well at the moment. They are very entrepreneurial and very forward thinking. It is rare to convert waste into methanol. Why did Enerkem go down this route? Enerkem has the ability to take a heterogeneous solid material and convert it to a pure and homogenous synthesis gas at low severity. This translates into lower cost, lower capital investment and higher profitability. Converting that gas into methanol results
and formaldehyde, which in turn are used in products like adhesives, foams, plywood subfloors, solvents and windshield washer fluids. You can also make diesel fuels from methanol. Methanol is fungible, it can be easily transported and made into many different things. Where will you get the waste from? Each individual produces around one tonne of waste per year. That’s about 1.3 billion tonnes of garbage produced globally every year. There is plenty of waste out there.
What is the future outlook for waste-tochemical industry? I continue to see the waste and chemical industry continue to embrace the utilisation of thermochemical approach to converting waste into chemicals as a positive. Firstly, this is the right thing to do from a sustainability perspective. You are protecting the environment, using a low-cost resource that would have otherwise been disposed of and doing this waste conversion on a cost-effective basis. This resonates well with chemical companies that are looking for a low-cost feedstock to then put in place a chemical that is the same molecule but from a renewable resource. Is the sustainability agenda moving forward? The sustainability agenda is moving forward. A tonne of garbage has around 55% carbon in it by weight. You have an option. You can bury it and there it stays/burn it and get electricity but you put carbon dioxide in the air or you can repurpose it and turn it into chemicals. That carbon can be repurposed into other products. Recycle carbon from municipal solid waste. l
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Biofuel made from coffee grounds could power vehicles on our roads
The emperor’s new clothes The changing role of biomass in the European renewable energy supply
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n March 2016, Scotland burned its last lump of coal for electricity as Longannet Power Station – once the largest energy plant in Europe – was decommissioned. In England, Eggborough in Yorkshire and Fiddlers Ferry in Cheshire, two more coalfired facilities are also due to close in the coming months. All of this is, of course, intended to bring about a more sustainable future, as Europe tries to reduce its dependence on coal. However, the demand for energy is still on the rise and the closure of the latter two plants alone will mean the loss of 8GW of electricity generating capacity. Bioenergy has been widely touted as a long-term replacement for fossil fuel, so how is the sector developing to fill the growing void? Biofuels are now the single largest green energy source in Europe and, according to the latest figures from the European Biomass Association, account for more than 60% of all renewable power generated in the EU. The European biofuel industry has shown steady growth rates over the last few years and in 2016 the European Commission launched a review of its
Germany receives around 50% of its green power from its agricultural sector bioenergy policy as part of its Renewable Energy Package set to be released later in the year. As part of the review, the Commission is holding an open consultation with stakeholders and EU citizens in its effort to meet a requirement for 27% of the EU’s energy to come from renewable sources by 2020. In with the new As the date for the launch of the Renewable Energy Package draws closer, wood pellets remain the primary source of biomass feedstock in Europe by a significant margin. However, there are a growing number of new innovative biofuels that continue to be released into the EU market from other sectors. As more of these are developed, it seems that the lines separating our waste, energy, and agricultural sectors are blurring. For example, we’re seeing an increase on a large scale in the amount of energy crops, such as miscanthus, being
grown in Europe specifically for energy generation. As well as this, farmers and food producers are also developing by-products, which were once regarded as waste materials, into a valuable commodity. There are several new secondary biofuels being produced from within EU borders, which include husks from oats, corn stalks, peanut shells, and coffee grounds. These by-products are all being pelletised across Europe and turned into a low-carbon fuel stock to sit alongside wood pellets as a valuable solid fuel. In addition to these, sewage sludge and animal waste are also being collected and broken down to generate biogas. Sugar beet is another crop with a lot of potential for secondary biofuel development. Once the sugar is extracted, the residue from the process, known as bagasse, which has a relatively high calorific value, can be used to create solid biofuels in loose and pellet form.
Considering Europe’s position as the third largest sugar producer in the world, there is no shortage of supply if it were to become a key energy crop. It is not just the biofuels themselves that are improving. The methodologies of turning waste into energy are also becoming more advanced. One of the most interesting developments in the bioenergy sector is the growing use of gasification, a highly robust and efficient method of producing biogas. Gasification involves converting solid or liquefied fuel sources, such as slurry or animal waste, into a synthetic gaseous fuel, commonly known as syngas, through a process of high temperature reactions and oxygen reduction. Gasification offers a number of advantages, especially
Sarah Gazzola, commercial manager, ESG
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ESG’s energy and waste services business manager, George Bradley, is the UK principal expert on the ISO Solid Biofuel Working Committee, responsible for establishing and updating standards for new fuel types. His involvement has allowed the industry to continue to keep abreast of the changing needs of the energy market, especially in regards to the challenges faced when making use of diverse fuel sources. Powering forward
Wood pellets may soon be accompanied by wastebased pellets in the renewable energy market
in regards to emissions control. As gasification produces syngas at a higher temperature than typical methods, this makes it easier to remove contaminants, such as sulphur and nitrous oxides. Carbon capture is also made simpler via the gasification process, which – in a world where companies are held accountable to strict emissions standards – can lessen the issue of noncompliance for generators. Solving the multi-fuel challenge Despite the obvious advantages of developing new energy sources in the European market, making use of a diverse feedstock can raise problems for generators. As biofuels have different organic properties and calorific values, they will react differently when burnt. This means that certain types of boilers are only suited to specific fuels. Furthermore, boilers need to be calibrated
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If Europe is to meet its 2020 energy targets, nearly a third of its power will have to be generated from renewable sources. However, in the agricultural sector in particular, the production of renewable energy is very unevenly distributed among countries. Germany, for example,
receives around 50% of its green power from its agricultural sector. Compared to this, France has an equivalent figure of just 13%. Considering these numbers in the months prior to the launch of the new Renewable Energy package, it is clear that there is still room for improvement. Governments in all member states must support and encourage their waste, energy, and agricultural industries to work together to be as resource efficient as they can be. By doing this, they will be able to play their part in the creation of a truly circular economy in Europe as well as fill the energy vacuum left by coal and other fossil fuels. l For more information: This article was written by Sarah Gazzola, commercial manager of energy & waste services at ESG. Visit: www.esg.co.uk
or adjusted for each fuel type to reach optimal levels of efficiency. This is an issue currently being addressed with the development of multi-fuel power stations. These facilities use advanced boilers to generate energy from a variety of materials. One such proposed plant is the Ferrybridge Multifuel 2 (MF2) facility, which, once complete, will be able to process up to 675,000 tonnes of waste derived fuels from various sources. While multi-fuel boilers are an interesting development, it is vital that operators of renewable power generating stations ensure that the biofuels they are burning meet the operational and environmental requirements of each site. These requirements are being examined on a global scale and the International Standards Organisation (ISO) is currently in the process of rolling out a set of international regulations which all new biofuels can be measured against.
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Wealth from the ground: planting seeds of growth
Dave VanderGriend, CEO of ICM
I
CM celebrated its twentieth anniversary last year. Liz Gyekye spoke to chief executive officer Dave VanderGriend to find out how the company has evolved. How did you get into the ethanol industry? I got started in the ethanol industry in the late 1970s when my brother, Dennis VanderGriend, was an engineering student at South Dakota State University. The microbiology department came over to the engineering department and asked for someone to build a still for their research. My brother raised his hand and said he could do that. I am welder by trade and I had been in the fabrication design business. Dennis enlisted my help to build his first distillation column design. The US Department of Energy actually funded the still for the university and we built the first licensed fuel-alcohol still for the university in 1978. The Appropriate Community
Technology Fair (ACT ’79) was held in Washington, D.C., and we were among the exhibitors. We actually did a demonstration and were able to distil alcohol and run it through the still over and over during the three day exhibit. That was the start of our involvement in fuel ethanol. After that event, the still went to Colby, Kansas energy fair and Springfield, Illinois and eventually ended up at South Dakota University where it was used for testing different feedstocks. They
gallon per year (gpy) ethanol plant that didn’t work properly. They hired me in the summer of 1985 to fix the plant and get it running. We spent the next six months rebuilding the plant based on what I had learned over the last five years. We started it up in 1986. I refer to these ten years with High Plains as my college education. I learned a lot about fuel ethanol and all of the different processes involved. We expanded that plant over the next ten years from 10 million gpy to 20 million gpy.
2015 was a tough year for the industry. 2016 looks to be a bit better would distil ethanol from potatoes, wheat, corn and even barley fermentation. During 1980, I started a technology firm called Arlon Industries, where we manufactured farm-scale distillation columns for this emerging new industry. Most of the plants built in the early 1980s did not survive because they were too small. The knowledge around the cooking and fermentation process was still not well understood and so most of the plants built during that time failed. We closed Arlon Industries down in 1985. I went to work for a company called High Plains Corporation in Colwich, Kansas. During that time, the company had built a 10 million
We went through all the highs and lows of running a plant. In early 1995, I resigned from High Plains and started ICM. What made you start ICM? I founded ICM with 20 employees (including my brother Dennis) with a goal to engineer and build the industry’s safest and most efficient distillers grain dryers. We asked ourselves “what is the biggest challenge in the fuel ethanol industry today?” We determined that there was not a good dryer design for drying distillers grain. Distillers grains are a co-product of the ethanol production process used as a feed ingredient for livestock and poultry diets.
There were multiple dryers out there at the time, but none of them worked very well. And so, we focused on designing a robust dryer that would work well for this project. ICM has more than 400 of them in the industry today and it is by far the most dominant dryer installed since 1995. After designing the dryers we moved to another challenge – tackling wastewater. Essentially, this involved cleaning up the water in an ethanol plant in order for it to be reused within the plant and also eliminate the need for conventional waste treatment. We did that in the late 1990s. The next logical step was to take everything we had learned and design our own plant. In 2001, ICM designed and constructed a 25 million gpy ethanol plant for the US Energy Partners (USEP) in Russell, Kansas. This state-ofthe-art plant was constructed in eight months, reaching capacity within two weeks. The plant has since utilised ICM’s services to expand the plant to a 50 million gpy capacity, and is producing well above the name plate capacity. ICM collaborated with Fagen, a leading ethanolplant builder, to construct the Russell plant which is now owned and operated by White Energy. After that project, the design-build team of ICM-Fagen developed a partnership. Out of the more than 102 ethanol plants designed by ICM, Fagen built about 75 of them and the remainder were built by ICM.
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How did the housing crash of 2009 impact on the ethanol industry? In 2009, when there was the housing market crash the economy slowed down and the ethanol industry just stopped. We have not built an ethanol plant in the US since 2009. We had more supply with the amount of existing plants than we had demand. Due to this a number of plants went out of business. A number of large companies went into bankruptcy. It was a pretty significant shake up in the industry. Since that time, ICM has focused on adding value to existing plants. The first thing we introduced was corn oil removal. This technology enables you to remove the corn oil out of the distiller solubles to provide another revenue stream to the plants. Then we looked at liquid grinding of the corn mash to expose more starch. We have been focused on the distillers grain portion of ethanol plant. We know a lot of value can be extracted from that product for the benefit of the facility. We are now working on fibre separation, giving our plants another level of efficiency. With a focus on excellence and innovation, ICM has provided technological innovation that has made our plants the most efficient and reliable in the industry. Most of the 100 million gpy plants are running at 130 million gpy range on average. Some are running as high as 150 million gpy. The 50 million gpy are in the 65 million gpy range. All the plants are running well above nameplate design. What are the opportunities for you abroad? ICM is committed to expanding our international footprint. We have built plants in Canada, Hungary and Argentina. We recently announced our contract to design the first fuel grade dry-mill corn ethanol plant in Brazil. This facility is
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currently under construction in Brazil. In looking at Europe you find significant excess of corn along with abandoned/ unfarmed land because there is no market for corn. If you can’t produce corn at a profit then you just don’t grow corn. We expected to see a resurgence of ethanol production in Eastern Europe based on the amount of available land and the amount of excess corn. We have not seen that yet because these countries have put limitations on the
their economy from the inside out. The same opportunity exists in Brazil when you get into the row-crop areas. They also have significant amounts of excess corn. They can use distillers grain to feed livestock and cattle and use ethanol to run their fleet. What is the biggest challenge you face as an industry? The biggest challenge the industry faces today is the government. The United States
ICM has been producing dryers, like the one above, since 1995
amount of ethanol that can be blended with gasoline. I think the EU is planning to increase the amount of ethanol in gasoline. However, it has not made firm plans. In looking at South America, Brazil for example has 27.5% of ethanol
Environmental Protection Agency (US EPA) has erected roadblocks to higher blends of ethanol and gasoline. Brazil blends 27.5% ethanol. Guess what – they have the same cars as we do. They have the same lawnmowers and motorbikes
I find it hard to understand why the EPA is so against higher blends of ethanol in all of their gasoline and Argentina is looking to do the same. Both of those countries have excess corn that they export and would like to use more of it domestically. In the case of Argentina, they are exporting corn at wholesale and buying gasoline at retail. There is a great opportunity to keep some of their resources in the country and to grow
as we do and they all run on 27.5% ethanol blends. But our government doesn’t think we can run on anything more than 10%. They have put significant limitations. Our only market for the ethanol is to export ethanol at wholesale, so we can buy gasoline at retail from countries that may be unfriendly to the US. We have the ability
to compete with the oil companies in this country because we have a product that is an excellent additive. It is clean burning, high octane and the octane value that we are replacing is a carcinogen. You have a benign, clean product. If I was to put 30% ethanol into a gallon of gasoline I would reduce tail pipe emissions by 50%. That is a huge reduction. I find it hard to understand why the EPA is so against higher blends of ethanol and has limited the market access. Brazil has been challenged with problems in the oil industry, struggling to fund their social programs, and currency devalued by significant margins. However, the agricultural sector is a bright spot in their economy. When the housing bubble burst, a significant attribute to the US economy was its strong agriculture base. When you take oil out of the ground, it takes a long time to replace it. When you take corn out of the ground, you can replace it the following year. Agriculture can make renewable fuels quicker. We have seen the US agriculture go from growing 8 million bushels of corn per year to 12 billion bushels of corn a year. We also saw that the US went from 8 billion bushels of food to 10 billion bushels of food because of what the ethanol industry was able to accomplish. We created an export product and more sustainable agriculture and improved our land. How is the ethanol market doing? Today, it is steady. Could it be better? Yes. Could it be more stable? Yes. Right now it is marginally profitable. 2015 was a tough year for the industry. 2016 looks to be a bit better. At the end of the day this industry is cyclical. We believe that the most effective way to increase ethanol use is to grow consumer demand for high-performance biofuel. For example, if we can add more
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biofuels profile ethanol to gasoline we could improve the performance of a car. The auto industry needs more octane. Ethanol improves the air that people breathe, especially in urban areas where you have high-rises. Europe, North America, South America, and Asia all benefit by increasing the use of ethanol. How are low oil prices impacting the industry? Wealth comes from the ground. When it is not profitable to continue drilling and pumping oil it slows down the entire economy. A lot of wells are being shut off. The oil industry cannot afford exploration at $30-$40 per barrel oil. Jobs then start dropping off. It’s not good to have oil below the cost of production. Outlook? I think the future is bright for renewables. The cellulosic
L-R: Dave VanderGriend, CEO of ICM and Chris Mitchell, president of ICM, celebrate the firm’s 20th anniversary
side of things are a little slower. Just because cellulosic is not profitable today, it doesn’t make it unprofitable in the future and ICM is dedicated to discovering the key to efficient cellulosic ethanol production. We’re
also taking our vision to sustain agriculture through innovation to other countries. The cheapest thing to make is starch-based fuel ethanol products and sugar-based products. As long as oil stays low, the cellulosic industry
is going to be stagnant. But it will come back. We’re excited about our future as a company and an industry. One thing you can always be sure about is things change and different opportunities will occur. l
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Pre-dry and save!
O
ne of the process steps for ethanol production is the removal of water from the biofuel. Special techniques have therefore been developed to remove the water, known as drying. The Ronning rotary waste heat evaporator pre-dries the wet cake using dryer heat that is normally wasted in today’s ethanol production systems. Wet cake is the distillers grain after it has had the liquid separated from the solids in the centrifuge. The wet cake goes to the dryer and the liquid goes to a steamdriven multiple effect waste heat evaporator, where the liquid is thickened to a syrup, which is then mixed back into the wet cake for drying to become dried distillers grains for the commodities market. Ethanol plants that integrate a rotary waste heat evaporator with an indirect-fired dryer can save more than 30% of their grain drying energy costs and increase their system evaporation rate by the same percentage.
This pre-dryer system also reduces particulate matter and the load on other thermal oxidiser components. A further benefit is that the system generates condensate for reuse in the ethanol process. It also provides flexibility because the recovered heat can be distributed to thin stillage or wet feed at the required or optimum ratio (see process flow diagram). More than 70% of the usable original heat required to dry the product is discharged to the atmosphere in existing systems. Passing these stack gases through an indirect heat exchange rotary kiln will heat and pre-dry the air and wet product flowing through the secondary chambers of the drum. This is most effectively applied in series with an indirect-fired dryer having a high saturation temperature. A typical 45 million gpy ethanol plant with a dryer evaporating 66,523lbs of water per hour from 68% moisture raw material normally requires about 1,245Btu (British thermal unit) per pound
Flow diagram related to the application of Ronning’s rotary waste heat evaporator
biofuels international
Air Input
Dryer Off Gas
To Thermal Oxidzer Product Input
Air to Tempering Chamber
Condensation Product output to Dryer
THIS DRAWING AND THE DESIGN SHOWN THEREIN ARE THE PROPERTY OF RONNING ENGINEEING COMPANY, INC. ANY DUPLICATION OR USE OF THIS PRINT OR THE INTELLECTUAL PROPERTIES CONTAINED THEREIN FOR PURPOSES OTHER THAN THAT FOR WHICH IT WAS FURNISHED IS HEREBY PROHIBITED.
DRAWN BY
M. Pollock
DATE
02/06/08
SCALE
1:50
APPROVED BY REV
00 Rotary Waste Heat Evaporator
DWG. NO.
WHE 012
Ronning’s rotary waste heat evaporator
of water evaporated. Such a system would consume 81.9 million Btu/hr of natural gas energy, costing $369/ hr (€328/hr) at $4.50/Btu/hr. By adding a four-pass predryer to this same system with production remaining the same, the natural gas consumption would only be 58.0Btu/hr, costing $261/hr. This reduces the fuel bill by $907,000 per year. The pre-dryer can also be applied to a direct-fired dryer with reduced gain in evaporation rate and heat recovery, where more of the heat provided is sensible heat. Additional benefits of a typical pre-dryer with indirectfired system include: • Increasing the system’s evaporation rate by up to 37.5%. Thus a system that evaporates 66,523lb/hr could evaporate 91,523lb/ hr with a pre-dryer added. • Controlling air pollution by wet-scrubbing the particulate matter contained in the dryer exhaust gas and reducing the load on the thermal oxidiser component included in the indirect-fired dryer system. • Eliminating the potential for fires in a dryer by the elimination of oxygen in the system. Options for further cost and
environmental benefit include: • Reusing condensate in the ethanol process – approximately 24,000lb/hr of condensate can be reused in the 45 million gpy ethanol process after waste water treatment where necessary. • Maximising heat recovery by adding a multi-effect thin stillage waste heat evaporator in series with the pre-dryer. The most common machinery configuration prescribed is a drum approximately 70% of the size of the primary drum and internally structured as a rotary waste heat evaporator parallel to the existing rotary dryer. The product flows from the feed source or mixer to the pre-dryer with its inlet and discharge on the same end, thereby passing directly into the conventional rotary dryer. This arrangement allows bypass of the waste heat evaporator for cleaning operations. This also provides short piping for the stack gases, since they enter and discharge at the back end of the waste heat evaporator. l For more information: This article was written by Richard Ronning, CEO at Ronning Engineering Company. Visit: www.ronningengineering.com
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biofuels corn oil
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Extracting more corn oil has been a good business decision for US plants and there is strong demand for the product
Optimising corn oil yields in the US
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t is not hard to see why most US ethanol producers have added corn oil production to their operations over the past five years. Corn oil broadens the co-product mix and enhances plant operating income. This is true even when corn oil prices are depressed. It is particularly important for plants’ profitability at times like these, when margins on ethanol are pressed. In the US, the industry has been steadily adding oil extraction since 2006. In the past few years, the added profitability of having oil extraction in the plant has become a “must have” with virtually all ethanol plants running or now installing oil extraction. What is surprising is that, so far, it has been a North American phenomenon. “We see Europe as an area ripe for future growth in corn oil production,” says Jack Rogers, global marketing manager at Novozymes Bioenergy. Corn oil prices have been fairly stable over the last few years, ranging from 24 to 36 cents (€0.21-0.32) per pound, despite the fact that production has expanded. Meanwhile, demand remains strong. “Producing corn oil adds 5 to 6 cents per gallon of ethanol produced. That’s enough to make the difference between being profitable or not,” Rogers says. One result of extracting corn oil is, of course, that the dried distillers grains (DDGS) contain less oil. To adapt, many US plants
Oil is located within the germ layer of a corn kernel. Most corn oil is stored in oil bodies called oleosomes. On average, one-third of this oil is accessible with conventional recovery methods. Novozymes proteases break through the olesin protein layer to release more oil for extraction.
A corn oil sample is taken during a routine visit from a Novozymes Technical Services representative
have renegotiated the fat specifications for their feed. Where levels of 9-10% were common a few years ago, today they might be 8% or lower. This freedom in the pro/fat spec, a measure of protein to fat content in the DDGS, provides an economic
has responded to this need over the past three years by introducing two products, Olexa and Avantec Amp, that both contain components whose function is to break through the oleosin protein layer in the corn kernel and release significantly
Like all other variables of ethanol production, optimisation is important advantage for feed producers. They can now control for a specific level of fats in the feeds they produce, optimise the nutritional content for different animal nutrition needs, and price accordingly. Extracting more Like all other variables of ethanol production, optimisation is important. Plants are making a continuous effort to extract more corn oil, and Novozymes
more oil for extraction. While the mode of action for both products is similar, the operational use and results are quite different. Olexa is added to fermentation, whereas Avantec Amp is added to liquefaction at a higher temperature. Multiple benefits are seen on top of corn oil extraction. When a plant switches to Avantec Amp, advantages include optimisation of ethanol yields, reduction of urea inputs, simplification of operational
processes, as well as increased corn oil extraction. Recent field trials with Avantec Amp show that a clear majority of plants experience a positive increase in corn oil yield compared to baseline. Due to differences in plant processes, the trials show wide variation in results. For example, a sampling of recent trials showed increases of 12%, 10%, 30%, 16%, 7%, 18%, 20%, and 21%. The most radical increases are seen by plants not using protease previously. Conclusion Extracting more corn oil has been a good business decision for US plants. While there have been a few innovator plants adopting corn oil extraction in Europe, the opportunity for further expansion is great. Maximum corn oil extraction is easy to achieve with an enzymatic solution like Avantec Amp, which offers multiple advantages, including boosted ethanol yield, reduction in urea usage, and simplification of operational processes, thus making the decision to utilise this enzymatic solution a clear financial win. l
For more information: This article was written by Veronica Hidding, launch manager at Novozymes. Visit: www.novozymes.com
46 may/june 2016 biofuels international
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biofuels fractionation The examples of the paper and pulp industry can open new doors for chemical processes in biofuels production
What can we learn from pulp?
T
he pulp and paper sector is unique in that it has already developed the technology, infrastructure, and the supply chain that is able to process large amounts of biomass at high throughputs. However, for a variety of reasons, the sector is undergoing a substantial change, such as the increased use of electronic rather than paper-based communications and the opportunity to shift towards more of a “biorefinery” modus operandi where biomaterial, biofuels, and biochemicals can be produced from biomass in an analogous fashion to an oil refinery. One the reasons for the sectors past success has been its ability to fractionate the various biomass components such as cellulose, hemicellulose, lignin, and extractives into more valueadded forms while minimising the cost of producing these various components. As well as minimising costs, environmental considerations
have encouraged other efficiencies such as reduced water usage, recycling of pulp/bleaching chemicals, and decreased use of potentially problematic chemicals such as chlorine. Although reduced water utilisation concentrates the material flow through a mill, improving process ability to recover fractionated hemicellulose and lignin as well as recycle chemicals during pulping processes, higher concentrations of non-process elements are simultaneously increased, which can result in challenges such as scale and corrosion. Different approaches The main commercial pulping processes that are used around the world include the Kraft, sulphite, and mechanical processes. Historically, the acid sulphite pulping process was predominantly used, as it was able to separate the lignin and a portion of the hemicellulose components into a water-soluble fraction, while producing a strong,
Demand for mechanical pulps are waning due to a lack of appetite for newsprint
Pulp mechanical refiner. Copyright UBC.
white pulp that could be used as a feedstock for papermaking. However, the sulphite processes limitations of poor chemical recycling, weaker fibres, and a limited ability to process extractive rich wood species – such as pine – were the main reasons it was eventually superseded by the Kraft process. The Kraft process (Kraft means strong in German) is the dominant chemical pulping process in the world today, primarily because of its robustness and the process’ ability to recycle the chemicals used in it via a “recovery boiler”. One of the goals of the Kraft process is to selectively separate the lignin from the cellulose and hemicellulose. However, the high chemical and energy loads that are typically required for effective lignin removal also result in the removal/degradation of the labile (easily broken down) hemicellulose component through alkaline peeling and chain cleavage reactions.
Therefore, although to a lesser degree than in the acid sulphite process, the Kraft process does not provide a clean separation of the lignin, hemicellulose, and cellulose components. Rather than making a pulp which is a feedstock for paper or packaging, dissolving pulp is more of a “chemical feedstock” as it results in purified cellulose containing <4% hemicellulose and virtually no lignin. The pulp is used to produce textiles and thermoplastics such as cellulose xanthate (rayon) and acetate. Dissolving pulp is still predominantly produced via the acid sulphite process as the acid readily facilitates the hydrolysis of the hemicellulose component, while the sulphonation solubilises the lignin component. Lignosulphonates are a relatively high value coproduct that have a variety of applications, such as uses as concrete additives, binders, or as feedstock for other chemicals. The Norwegian sulphite-
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based company, Borregaard, is often cited as one of the world’s most effective wood-based biorefineries by its ability to transform more than 90% of the biomass feedstock to saleable products, including specialty cellulose dissolving pulp. However, due to environmental and chemical recovery challenges, it is unlikely that any new acid-sulphite mills will be built. Instead, dissolving pulp is now produced via a modified Kraft process that utilises hot water to selectively remove hemicellulose in a “pre-hydrolysis” step, with subsequent lignin removal via the Kraft process. This pre-hydrolysis-kraft approach is appealing, as it allows for a stepwise fractionation of hemicellulose and lignin. However, the selective hemicellulose removal is highly dependent on the acidifying effect of the acetyl groups that are associated with hemicellulose component of hardwood feedstock. When softwoods are used as the feedstock, the hemicellulose component contains far less acetyl groups, requiring the addition of an acid that can “condense” the lignin component. However, this can compromise its fractionation during subsequent Kraft pulping. Rising opportunity Due to the waning demand for newsprint, which is the main application for mechanical pulp, a significant amount of the world’s mechanical pulping capacity has shut down, thus increasing the availability of this infrastructure for potential conversion to a “front-end” for a biorefinery process. Although it does not suffer from the pollution and chemical recovery issues of the Kraft/sulphite processes, as mechanical pulping is a mostly physical process, it does not provide effective fractionation of cellulose, hemicellulose, and lignin. However, there is a significant opportunity to “revamp”
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mechanical processes to improve their ability to fractionate biomass and use these considerable onsite capital investments to develop an effective biorefinery. For example, processes such as SPORL (sulphite pre-treatment to overcome the recalcitrance of lignocellulose) have combined acid sulphite and mechanical pulping to separate hemicellulose and lignin. The “hybridisation” of chemical and mechanical
processes that have been successfully pioneered by the pulp and paper sector to process and fractionated the various biomass components is an area that should receive increased attention by the rapidly evolving biorefinery sector. Several “chemi-mechanical” pulping approaches have already been developed by companies who have used steam, alkali, neutral sulphonation, oxidation, and the incorporation of organic
solvents to fractionate the hemicellulose and lignin, leaving a much more enzymeaccessible cellulose rich pulp. The pulp and paper sector can provide invaluable lessons to the biorefinery sector when it comes to pre-treatment and fractionation. l For more information: This article was written by Richard Chandra and Jack Saddler from Forest Products Biotechnology/ Bioenergy Group, University of British Columbia. Visit: www.ubc.ca
Beyond FEED AND FUEL MORE ETHANOL… MORE OIL… MORE VALUE Maximize value through enhanced product diversity, increased plant efficiency and more profitable co-products. CPT’s patented Corn Dry-Fractionation technology produces three higher value corn fractions that deliver savings before, during and after the ethanol process. • Access more oil-edible grade • High protein DDG • Lower energy costs • Reduced operating costs • Higher value co-products • Infinite turn-down capability & process flexibility
It’s time to diversify
To learn more, call CPT at 1-913-957-7525 or visit www.CerealProcess.com today
CPT Cereal Process Technologies, LLC
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biofuels fermentation First generation ethanol plants must employ new technologies and innovations to keep abreast in the changing market
Keeping competitive and seizing opportunities
T
he production of bioethanol has been around for a number of years and efficiencies have grown leaps and bounds. But what can the industry do in order to stay ahead of the curve and not fall behind? One of the best ways to make sure of that is consistent operations. This may sound like an easy thing to do, but in fact may be one of the most difficult to control. Of course there will be day to day fluctuations in plant operations, but in order to stay competitive in the marketplace, the goal should be to minimise the up and down swings of operation. Things such as preventative maintenance, implementing troubleshooting techniques, updated SOPs, operator training, etc. are keys to maintaining a consistent operation. One of the easiest ways to lose efficiency and yield is through fermentation. Why is that? If a good handle over yeast health is not kept, there could be potentially big financial losses due to lack of ethanol production, contamination, etc. Fermentation is the only place within the system where you can potentially make money (through yield increases, etc.). One of the main aspects of maintaining consistency as described above is to make sure the given plant is as hygienically clean as possible. This means performing various
hygiene audits throughout the year to make sure there are no potential places for contamination to occur, and if there are, corrective actions to fix them are applied as soon as possible. Bacterial growth For various financial and engineering reasons, fuel ethanol plants are not designed to operate aseptically like pharmaceutical plants. Therefore, there will always be the risk of bacterial contamination from numerous sources, including the feedstock and other ingredients, the plant environment, as well as the microflora harboured within the plant equipment itself. This situation creates the opportunity for organisms competing for the same food, glucose. Yeast and bacteria will feed on the glucose, both to grow while producing their by-products â&#x20AC;&#x201C; ethanol from yeast or lactic/acetic acid from bacteria. Since bacteria grow faster than yeast, antibiotics are used in order to control growth and to ensure that bacterial infection does not take over the fermentation. Contamination happens when the population of bacteria reaches a critical mass, producing more and more of the undesirable lactic and acetic acid. When these levels get too high, the yeast will go into preservation mode and try to protect itself
instead of producing alcohol or more yeast cells. Due to this, the fermentation can get stuck or slow down. This results in yield loss due to direct bacterial consumption of the glucose combined with poor fermentation performance. Also there will be unfermented sugars that negatively affect yield. There are many ways to try and combat bacterial growth. One is by having a hygienically designed plant, like breweries and pharma, but 98% of ethanol production facilities are not designed in this manner. The second way is to use some sort of microbial agent to control the growth of these bacteria. One of the most effective methods to eliminate bacteria is through the use of antibiotics. However, there can be many issues with the use of these control agents. One of the main drawbacks is that not all regions of the world can or will use antibiotics. Ethanol producers will have to and are running more Viable bacteria in mash at fermentor fill (CFU/ml)
Ethanol loss (%/v)
efficiently than before. The increased attention that is paid to hygiene is taking place. Through the use of hygiene audits, there is more emphasis on determining sources of contamination and its prevention, such as removal of dead legs, proper cleaning techniques, etc. The result is a definite improvement in the productivity of ethanol plants. There is no â&#x20AC;&#x153;silver bulletâ&#x20AC;? when it comes to the use on antimicrobial agents. The best antimicrobial is a clean plant and healthy yeast population. Antibiotics are generally used less if these issues are addressed. As seen in figure 1, the resulting contamination event can cause severe financial losses and in these times of tight margins, any loss of yield can spell disaster for operations. Mechanical and chemical innovation Another area where operators can look at to increase operational efficiency is in Ethanol loss* (US gal)
Revenue loss ($2US/gal)
100,000
0.1-0.2%
1,387
$2,774
1000,000
0.2-0.4%
2,774
$5,548
10,000,000
0.6-1.0%
6,935
$13,870
100,000,000
0.9-1.2%
8,760
$17,520
1,000,000,000
1.0-1.5%
10,950
$21,900
Figure 1: Financial impact of contamination
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the mechanical equipment they are using in the plant. Equipment such as mills and centrifuges are vital for separating components and getting the most starch or available substrate obtainable in order for the rest of the process to work. Without properly getting the substrate into a state where it can be broken down further, yield improvement will never take place. Enhancements and newer generations of these types of equipment can be expensive, but generally will pay for themselves in better yield and efficiency over time compared to older equipment. Furthermore, advances in enzyme technology allow for better breakdown of the substrates in liquefaction and saccharification/ fermentation. These advances include increased enzyme activity, specific activities for specific substrates, and increased rates of reaction. Enzymes have become more concentrated and specific than they ever have before. Modern enzyme plants are becoming more efficient and able to produce lower cost enzymes. Techniques in modern biotechnology have allowed them to target certain types of enzymes and activities to introduce better enzymes for yield improvement and consistency in operations. Innovation present and future For those supplying “fermentation ingredients” to ethanol production facilities, new technology and innovation is necessary in order to stay ahead of the curve. There are varying technologies in the marketplace and in order to ensure that this technology is current and relevant, we must have strong partnerships not only with the production facilities themselves, but technology (research) providers as well. Having
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a relationship as partners instead of just vendors (suppliers) goes a long way in securing critical evaluation and introduction of new technology, which will not only make the process faster but also more streamlined. Having an expert in various parts of the operations gives operators a resource they can tap into in order to solve existing and prevent future problems that could negatively affect operations from occurring. The next likely change in ethanol production will come in various forms ranging from biotech yeasts to the so called second generation type of production or cellulosic processes. In the past few years, there have been many advances in biotech yeast. The economics of the production of ethanol from biomass feedstocks like corn and sugarcane are dramatically influenced by the yield of fuel ethanol that can be produced from the feedstock. This is because the input costs to the process (feedstock purchase, energy, fermentation inputs, labour…) are divided by the amount of product produced from those inputs. Although there is variation among them, traditional yeast strains used to carry out these fermentation processes have a ceiling to the ethanol yield they can achieve (mass of ethanol produced per mass of sugar fermented). However, the tools of genetic engineering can fundamentally alter the height of this ceiling. The development of new genetically modified yeast strains for fuel ethanol production has also been pursued extensively. In particular, methods of increasing the yield of ethanol by reducing by-product glycerol formation, enzyme expression, and accessing new types of sugars not normally fermented by yeast (e.g. xylose) have all been demonstrated. Until recently, however, none of these technologies
had been implemented during commercial production of ethanol. There have been two new enhanced biotech yeasts introduced to the North American fuel ethanol market. One was a strain of industrial yeast that produced an important enzyme for breaking down starch into simple sugars that is added to the corn to ethanol process, called glucoamylase (GA). This product allows the yeast to produce it inherently instead of relying on exogenous addition of expensive enzyme. The second one, called TransFerm Yield+, takes that same GA-producing technology and combines it with an introduction of an alternative glycerol reduction pathway. Instead of making glycerol, the yeast will take it down the alternative pathway to produce ethanol instead. These two technologies have resulted in major financial savings and yield benefits. Yield increases anywhere from 1-5% have resulted in increased revenue and more consistent operations from the same amount of substrate. Advances in cellulosic yeast technology have made it possible for second generation bioethanol to become a reality instead of a dream or being always five years away. The introduction of two types of yeast (C5 FUEL and XyloFerm) has allowed producers to choose which product works better under their conditions. Each one of these products has been engineered with a different pathway for xylose consumption. Newer and alternative pathway versions are becoming more and more commonplace. These types of yeast could also be used in first generation systems to get some of the C5/C6 sugars that are released through the conventional process or with some slight mechanical or enzymatic breakdown as well. This will result in even further increased yields for the “conventional”
process operations that are used today. In processes that use pre-treatment technology, it will be even more critical to monitor yeast health. In biotech yeasts, these will call upon certain pathways to be changed to increase yield and decrease variability within fermentation. The industry will have to ensure that these yeasts are properly maintained within fermentation and provide enough nutrients to maximise their intended benefits, in second generation. Pre-treatment processes have to rely upon large amounts of high heat or acid to break apart the structure of the substrate in order to get to the fermentable sugars. They can also form somewhat toxic substances to the yeast, which can affect fermentation performance. New nutrient packages will have to be introduced to compliment the new yeast that will ferment C5 sugars in a much harsher environment than in starch or sugar-based fermentation. Also, these lignocellulosic hydrolysates (unlike corn or starch based substrates) are often devoid of essential nutrients, so nutrition will again be essential and play a key role in this type of fermentation. In these times of tough margins, any type of advantage to help maintain consistency in operations and potentially increase yield is essential. There are numerous factors plants can monitor and improve upon in order to gain an advantage over their competition and increase revenue. Working closely together with various partners and suppliers is key. Keeping abreast of technology and implementing when and where necessary will also help to keep one ahead of the curve. l
For more information: This article was written by Craig Pilgrim, vice president of Marketing and Product Development at Lallemand Biofuels & Distilled Spirits. Visit: www.lallemand.com
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biofuels plant automation Despite common complaints that people spend too much time on their phones, making use of a mobile app can help plant operators save time and money
Moving to mobile
T
hese days, just about everything has gone mobile, and computerised maintenance management systems (CMMS) are no exception. A good mobile CMMS can make a plant run more efficiently by making it possible to create work requests, add attachments, run reports, and approve purchase orders right from the floor. When a piece of equipment needs repairs, normally a worker would make note of it and then trek back to their desktop PC to put the request in their CMMS. However, when a mobile app is used, the worker can create the request right from the floor, which can be a huge time saver. The worker is not forced to remember the details of the needed repair whilst going back to their desk, potentially forgetting something. Being able to create the request from the floor helps eliminate human error, while saving precious time. If a critical machine were to go down suddenly, downtime could halt ethanol production and cost plants thousands. These risks make saving time very important. Ordering a part is a lot easier with a mobile CMMS as well. In the vendor screen, a user can simply click on the phone number or email address to contact that supplier right away. Being able to contact them right from the floor can help eliminate errors, since the employee can stand directly in front of the machine while ordering parts, instead of going back to their PC to complete the order. When necessary, managers will get a mobile alert when
Absolute Energy runs a 115 million gpy in St. Ansgar, Iowa
a purchase order needs their approval. Knowing when a PO needs to be approved right away can speed up the part ordering process and help keep things running smoothly. Add some media A mobile app does not just help create the work request, it helps employees make sure things are accurate, by the use of attachments. As they say, a picture is worth a thousand words, and with a mobile CMMS, this is really true. A good mobile CMMS app will allow users to add attachments to work requests, which can really help avoid confusion. Instead of taking the time to write a detailed description of the problem, users can simply snap a picture and attach it. Not only will this help avoid confusion on what the actual issue is, but it can help decrease downtime as technicians can look at the picture and usually determine right then and there what tools and parts they will need to fix it. Without a picture, the technician would have to go to the actual piece of equipment to assess the
problem, and then gather the necessary items after that. Along with images, a good app should also allow documents to be added to equipment or work requests. Attaching a manual or warranty information to a piece of equipment can be helpful as when repairs are being done, the technician can read the manual directly on their mobile device, instead of wasting time trying to find it around the plant, or worse, not using it at all. Having warranty information on hand can be helpful during repairs as well, especially if a worker needs to contact a vendor about the issue. The ability to attach a web-based video in the attachments tab on a piece of equipment can also come in handy. This can be beneficial if the plant has how-to videos on repairs or preventive maintenance tasks. Instead of spending time reading a manual or directions, workers can simply click a link and watch the video while actually making the repairs. This can help workers complete the task in a more timely fashion. After creating the work order and adding any
necessary attachments, the order must then be dispatched to a technician. Another saying that rings true in ethanol production is “time is money”. When a work order is dispatched, it is imperative for the worker to know right away that they have repairs that need to be made. A successful CMMS app will send an alert right to a person’s mobile device when they have a work order or preventive maintenance task that needs to get done. Solution at hand Mapcon Technologies released the mobile version of its CMMS, which features all the mentioned capabilities, a few years ago. The app has helped many ethanol plants around the US optimise their maintenance schedules. One ethanol plant that has seen the benefits of using a mobile CMMS is Absolute Energy, located in St. Ansgar, Iowa. Prior to having a mobile CMMS, inventory and cycle counts would take a lot of time and manpower. The plant would have to assign several employees to spend entire shifts counting inventory by hand, which was then entered into their CMMS via their desktop computer. Generally it would take several employees two to three full days to get the counts done. Mapcon’s mobile app has streamlined this process and made it easier. Instead of having several employees go aisle by aisle counting parts, the plant now uses the barcode scanner on their mobile devices to scan parts directly into their CMMS. This has helped not only reduce the risk for human error caused
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by miscounting, but it has also saved Absolute Energy money. As opposed to having several employees spend countless hours on inventory, now they have just one or two people scan items over a few hours. A mobile CMMS can be used for daily tasks also. Conestoga Energy, located in Liberal, Kansas, uses Mapcon’s mobile CMMS to their advantage on a daily basis. Along with cycle counts, Conestoga has also found the app to be advantageous in other ways. According to maintenance manager Allen Bryant, one of the best parts of the app is the ability to do things on-the-fly, instead of relying exclusively on a desktop computer. Along with work order creation and completion, reporting has also proved to be a useful capability in the mobile app. According to Bryant, the reporting tool
Absolute Energy was formed in early 2006 and began operating from its St. Ansgar plant in 2008
in Mapcon Mobile is one of the features he uses most frequently. When he is at a meeting, or even out of town for a trade show, he is still able to complete tasks such as approving purchase orders and work requests simply by pressing a few buttons on his phone or tablet. He also enjoys being able to run reports from anywhere.
This ability is especially helpful during meetings where certain reports are beneficial to have ready. “If I need a report during a meeting that I didn’t print off beforehand,” he explains, “I can just simply bring it up on my iPad instead of having to run back to my desk to get it. This has saved me lots of time in the past.”
Bryant is also able to run reports from his mobile device when he is out of the office that let him know how many work orders have been completed, and how many are still outstanding. This gives him the ability to still manage his team and make sure things are getting done, even when he is not actually at the plant. Many people view being attached at the hip to a mobile device as a bad thing. But when it comes to maintenance management, that mobile device can be a life saver. Whether it is receiving a critical work order right away or being able to run reports on-the-fly, a mobile CMMS can prove to be a critical addition to a plants’ maintenance plan. l For more information: This article was written by Heather Wilkerson, marketing coordinator at Mapcon Technologies. Visit: www.mapcon.com
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biofuels plant automation At a time when skilled personnel are retiring and their experience is being lost, easy-touse fully automated tank monitoring systems are helping to improve biodiesel plant and worker safety and efficiency
The modern way
A
demographic shift is taking place that is creating challenges for the biodiesel industry. As a generation of skilled workers embark on their retirement, a wealth of experience and expertise is being lost. This comes at a time when there is increasingly fierce global competition that leaves no margin for inefficiencies. Younger and less experienced colleagues are therefore being asked to not only perform those jobs to the same high standard, but also to look for ways of making efficiency improvements whilst always ensuring that the plant has the highest safety standards in place. One area of the plant that offers particular opportunities for improvement is small tank farms (small numbers of tanks used for liquid storage purposes within a processing plant). Enhanced measurement and inventory management technology offers the chance to operate this part of a plant much closer to capacity, which can lead to significant process efficiency improvements. Traditional tank monitoring methods have involved mechanical equipment as well as manual measuring and recording techniques. Typically this is based upon measuring systems such as the float and tape method for liquid storage tanks, or weight and cable devices for vessels containing bulk solids. Some of these methods can be a cause of operational and maintenance problems, as mechanical devices have
An overview of Emerson’s complete tank monitoring solution
moving parts that are prone to failure, with pulleys or cables sometimes getting stuck. In addition, to perform manual measurements workers are required to go into the field, where they are more vulnerable to a safety incident. Climbing large
more complex than the very simple mechanical devices. Operators may feel that going down the automated route would leave them with a complicated system that’s difficult for their workers to both install and operate. However, modern fully
One prohibitive factor in implementing automated systems can be the remote location of the tanks storage tanks in icy conditions puts workers at risk. A manual measurements system also creates the possibility of human error, which can have serious consequences. Benefits of automation Most plant operators understand the value of updating technology and replacing these old methods with a modern, fully automated continuous tank monitoring system. But one reason why there may be a reluctance to change is that automated systems are perceived to be
automated systems are overcoming this perception as they are designed to be as straightforward as possible to both install and use. That means that even those technicians with less experience are able to quickly and easily install the technology and then operate it effectively. Modern monitoring solutions use well proven non-contact or guided wave radar technology to provide accurate and reliable level measurements, including interface levels. This almost eliminates maintenance
requirements caused by wear and tear, leads to increased reliability, and reduces the risk of false readings that may cause an overfill. It also reduces maintenance costs and extends the operational life of the system. Radars have the added benefit of being virtually unaffected by any process conditions, such as temperature, pressure, density, and turbulence, meaning that their accuracy and reliability is further enhanced. Using radar technology to provide accurate and reliable measurements is one thing, but that data also needs to be presented in a way that’s easy to understand and act upon. Fully automated systems solve this challenge using a software interface that enables technicians to observe and check the measurements easily, efficiently and safely from the comfort of their control room. To improve the operator’s level of control over inventory data, their interface to the tank monitoring system allows them to read level measurements from all their facility’s tanks on one screen, and can also provide inventory calculations, alarm handling and automatic report handling.
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This means they can respond more quickly to changing tank farm conditions, thereby maximising plant effectiveness, increasing productivity and reducing costs. As well as having operator overview, inventory, and custody transfer functions, software packages can also provide full support for configuration, diagnostics, and service, helping to make the technician’s job as straightforward as possible.
cables at facilities that store hazardous liquid chemicals, for example. Wireless also reduces complexity and
components including guided wave and non-contact radars. Emerson Process Management’s complete
Traditional tank monitoring methods have involved mechanical equipment
Going further away One prohibitive factor in implementing automated systems can be the remote location of the tanks. Many plants have small tank farms situated towards the edge of the facility, where there may be limited cable infrastructure available. Wiring and integrating these devices adds cost and complexity. To help overcome this, a tank hub can be deployed to connect the radars on each tank. The hub also collects the various measurement values, such as level, temperature, and pressure when temperature and pressure transmitters are added to the system, and calculates average temperature, observed density, and strapping table-based volume. By using the hub, total wiring can be reduced by half, simplifying installation and reducing cost. There is no need for racks, barriers, power conditioners, or bus terminations. Also, the tank hub supports communication with other vendors’ systems via protocol emulation. Where there is no existing cable infrastructure available, the latest monitoring systems can be connected to a WirelessHART (wireless technology) network via a wireless gateway. Wireless devices deliver data to the control room without any unnecessary excavation work and cable installation. This means that it eliminates the element of risk that would be involved in installing new
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provides savings in terms of costs and time by allowing operators to connect with tanks that were previously isolated, or divided by roads, water, or other obstacles. Further helping the implementation of an automated system, vendors are now providing complete systems for small tank farms, with mix and match
tank monitoring solution, for example, incorporates its Rosemount guided wave and non-contacting radars, a tank hub, and the Tank Master software package that makes it easy for a technician to be in control of tank inventory. This scalable system, which also has the option of wireless capability, is wellsuited for small tank farms.
Given all the benefits that a fully automated tank monitoring system can offer, it is little surprise that more operators with small tank farms are now being convinced of the rewards of investing in this technology. Previous fears about complexity are now being overcome as operators discover that modern automated systems are easy to install, configure, use, and maintain. And at a time when experienced workers are heading into retirement, that user-friendliness, combined with enhanced reliability and safety, is more important than ever. l
For more information: This article was written by Thomas Rundqvist, marketing manager at Emerson Process Management. Visit: www. EmersonProcess.com/Rosemount.
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biofuels sustainability The sustainability agenda is moving forward and pioneering companies are leading the way
Turning wood into bioethanol gold
T
he world faces numerous different challenges associated with population growth and urbanisation in the years ahead. As a result of this, countries across the globe are increasingly using alternatives to petrochemical-based products in order to become more resource efficient. Borregaard operates one of the world’s most advanced biorefineries in Sarpsborg, Norway. By using wood (Norwegian spruce) as a raw material the company produces specialty cellulose, lignin, vanillin and bioethanol. The production process focus on an optimum use of resources, which helps limit the need for raw materials. The company purchases more than one million solid cubic metres of wood for its Sarpsborg plant. The group attaches great importance to purchasing wood from forests that are managed in a properly sustainable and eco-friendly manner. In 2015, 85% of the wood came from Norwegian forests while the remaining 15% came from Swedish forests. All the wood that is purchased is cut according to the country of origin’s laws on felling. The Norwegian
suppliers supply wood in accordance with the PEFC standard for silviculture (forest management) and biodiversity. Borregaard’s ethanol is second generation. It is produced through fermentation of the sugars from the wood and is used for products such as environmentally-friendly fuels, paints, varnishes and car care products. Process The production of chemical products based on wood is carried out in many steps. The bark is removed, and
fermentation. The lignin then goes on to processing at the lignin and vanillin factories. Small CO2 footprints Borregaard, in partnership with Norway-based research firm Østfold Research, has carried out a life cycle analysis (LCA) of the products specialty cellulose, ethanol, lignin and vanillin. The life cycle analysis is a “cradle to grave” analysis which provides an overview of the impact on the climate connected with the products, and is based on a precise mapping of processes and internal flows.
The company’s bioethanol has emissions 80% lower than those of diesel the log is cut into chips. Through a boiling process the cellulose fibres are released from the lignin and sugars. The cellulose goes through a range of bleaching and purifying stages before drying and packing, while the first step for the lignin and sugar compounds is the ethanol factory where the sugar is converted into ethanol through
This analysis confirms that Borregaard’s bio-based products do well from a climate perspective when compared with petrochemical alternatives. To give an example, the CO2 emissions connected with Borregaard’s vanillin made from wood (EuroVanillin Supreme) are 90% lower than those associated with vanillin based on guaiacol (petrochemical raw material). The company’s bioethanol has emissions 80% lower than those of diesel. If emissions from the use phase are also included, the results are even more impressive. Borregaard’s wood-based bio products release no emissions since the raw materials are renewable, whereas the fossil alternatives release CO2 emissions in the use phase.
The company has also made efforts to reduce greenhouse gas emissions in its own processes, including elimination of heavy oil consumption and increasing the amount of energy supplied from more eco-friendly energy sources. In line with the Borregaard strategy of specialisation and enhanced value creation, the company invests substantial resources in research, development and innovation. Borregaard has close to 100 employees in R&D of which 34 of our scientists hold a PhD degree. Borregaard’s research efforts are important for the company’s future. More than 15% of the group’s sales comes from new products that they did not have five years ago. The ambition is to increase further the rate of innovation spending around 5% of revenues annually on research and development. This is an effort that has gained recognition and support from the European Union, Innovation Norway and the Norwegian Research Council. International company Besides its advanced biorefinery, Borregaard also holds strong positions within ingredients and fine chemicals. The group has 1080 employees in plants and sales offices in 16 countries throughout Europe, Americas, Asia and Africa. l For more information: This article was written by Tone Horvei Bredal, communication manager of Borregaard Group Visit: http://www.borregaard.com
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