Department of Energy Funds First Commercial Cellulosic Ethanol Plants
$385 million to support six innovative renewable fuel projects
By Harriet Foster, BCS Incorporated
U.S. Department of Energy (DOE) Secretary Samuel W. Bodman announced February 28, 2007 that DOE will potentially invest up to $385 million over the next four years in six cellulosic ethanol biorefinery projects. Though it requires a more complex refining process, cellulosic ethanol is characterized by a greater net energy balance and lower greenhouse gas emissions than traditional starch-based ethanol. The proposed plants are expected to produce over 130 million gallons of cellulosic ethanol annually, making a major contribution to President Bush’s goal for increased production of low-cost renewable transportation fuels. The President’s Advanced Energy Initiative (AEI) is pursuing reduced-cost cellulosic ethanol by 2012, while the “20 in 10” Initiative seeks to increase alternative fuels consumption to 35 billion gallons per year by 2017. The selected biorefinery projects were announced as a significant step to advance the nation’s capabilities for efficient and effective conversion of cellulosic biomass into ethanol, synthesis gas, heat, and co-products.
Section 932 of the Energy Policy Act of 2005 (EPAct) authorized DOE to solicit and fund proposals for the commercial demonstration of advanced biorefineries that use cellulosic feedstocks to co-produce ethanol, bioproducts, heat and power. The initial solicitation issued in February 2006 announced $160 million in financial assistance for three projects. Secretary Bodman requested that funding be doubled as part of the effort to expedite achievement of President Bush’s goals. “We had a number of excellent proposals, but these six were considered ‘meritorious’ by the reviewers at the National Renewable Energy Laboratory in Colorado. So I thought it would be best to front-end some more funding now, so that we could all reap the benefits of the President’s vision sooner,” stated Secretary Bodman.
Of the 24 companies that applied for assistance, 15 complied with requirements, and underwent a full technical review. Through a competitive solicitation and technical review process, six private companies were selected, to negotiate awards of no more than $80 million each. The final selected companies, located in six different states, are to provide 60 percent or more of their respective projects’ costs. DOE will in turn be an equity partner, providing up to the remaining 40 percent cost-share. Agreements for actual cost-share levels will be negotiated between DOE and each project partner. Combined industry and government investment is expected to top $1.2 billion. DOE will monitor the projects’ technical progress with regular reviews.
The projects selected include maximum diversity of technology, feedstock variety, geographic dispersion, and participant type. Applied technologies include both biochemical (enzyme and organism fermentation) and thermochemical (application of heat and pressure) conversion processes, as well as a hybrid thermochemical-biochemical option. Cellulosic biomass feedstocks come from various non-food sources: agricultural residues like corn stover and cereal straws, industrial plant waste including saw dust and paper pulp, and perennial grasses specifically grown for energy uses, such as switchgrass. These first cellulosic plants will be located across the country in the Great Plains, Southeast, Midwest, and the Pacific Coast. Establishment of cellulosic biorefineries in California, Florida, Georgia, Idaho, Iowa, and Kansas ensures practical utilization of a wide variety of regional feedstocks. Project participants range from venture capitalists and start-ups to conventional ethanol suppliers and global corporations, as well as conventional energy suppliers, chemical companies, waste management, and forestry. Some are farmers, entrepreneurs, and industry leaders. Those selected all presented unique business cases demonstrating their ability to produce ethanol from cellulose which can compete in starch-based ethanol markets. All six project timelines anticipate achieving competitive parity by 2012.
The following six projects were selected to negotiate awards:
Abengoa Bioenergy Biomass of Kansas, LLC, Chesterfield, Missouri
Integrated Biorefinery for Conversion of Biomass to Ethanol, Synthesis Gas and Heat
Site of Proposed Facility: Colwich, Sedgwick County, Kansas
Participants: Abengoa Bioenergy R&D, Abengoa Engineering, Novozymes & Others
Feedstocks: 700 tons per day (tpd), consisting of corn stover, wheat straw, milo stubble, switchgrass, and other opportunity feedstocks
Annual production: 11. 4 million gallons per year (gpy) ethanol, sufficient energy to power the operation and sell excess to starch plant
Technology: Co-processing of agricultural residue at a corn dry grind facility via biochemical and thermochemical routes. 400 tpd into ethanol via biochemical routes, 300 tpd syngas for energy via thermochemical routes with the long term strategy of using the syngas for ethanol and chemicals production.
ALICO, Inc., LaBelle, Hendry County, Florida
Production Facility that will Co-Produce Ethanol, Electricity and Other Commercially
Valuable By-Products from Carbon-Based Feedstocks
Site of Proposed Facility: LaBelle, Hendry County, Florida
Participants: Bioengineering Resources, Inc. of Fayetteville, Arkansas; Washington Group International of Boise, Idaho; GeoSyntec Consultants of Boca Raton, Florida; and BG Katz Companies/JAKS,LLC of Parkland, Florida
Feedstock: 770 tpd , consisting of yard, wood and vegetative wastes (citrus peel) and eventually energycane
Annual production: 13.9 million gpy ethanol, 6,255 KW power, 50 tpd ammonia and 8.8 tpd hydrogen.
Technology: To produce fuel in the Bioengineering Resources Incorporated process, raw material is first gasified in a two-stage process that reaches temperatures as high as 2350o F, producing a mixture of CO, H2 and CO2. The hot gases are scrubbed, cooled to 100o F, put through activated carbon filtration and introduced into a bioreactor where ethanol is produced.
BlueFire Ethanol, Inc, Irvine, Orange County, California
El Sobrante Ethanol Biorefinery
Site of Proposed Facility: Corona, Riverside County, California
Participants: Waste Management, Inc., JGC Corporation (who successfully demonstrated the project at smaller scales), MECS Corporation, NAES, and PetroDiamond, a Mitsubishi Corporation company
Feedstock: 700 tpd of sorted green waste and wood waste from landfills
Annual production: 24 million gpy ethanol
Broin & Associates Inc, Sioux Falls, South Dakota
Launch of an Integrated Bio-refinery with Eco-sustainable and Renewable Technologies in Year 2009 (LIBERTY)
Site of Proposed Facility: Emmetsburg, Palo Alto County, Iowa
Participants: - Lignocellulose fermentation technology - E. I. du Pont de Nemours and Company (Wilmington, DE); Commercial enzymes for biomass conversion - Novozymes North America, Inc. (Franklinton, NC); Analytical services - National Renewable Energy Laboratory (Golden, CO)
Feedstocks: 842 tpd, consisting of corn fiber, corn stover (cobs and stalks)
Annual production: 26.4 MM gal
Technology: Broin will transform an existing conventional corn dry mill ethanol facility into a commercial scale bio-refinery that utilizes advanced corn fractionation and lignocellulosic conversion technologies.
Iogen Biorefinery Partners, LLC, Arlington, Virginia
Launching America’s Cellulosic Ethanol Industry
Site of Proposed Facility: Idaho Falls, Bonneville County, Idaho
Participants: Iogen Energy Corporation, Iogen Corporation, Goldman Sachs, and Royal Dutch Shell Oil Company
Feedstock: 700 tpd consisting of the following Ag residues: wheat straw, barley straw, corn stover, switchgrass and rice straw.
Annual production: 18 million gallons ethanol, first plant, 250 million gpy in future plants.
Technology: To be located just south of Idaho Falls, ID, this 700 tpd integrated biorefinery will commercially demonstrate, using enzymatic hydrolysis, stand-alone cellulosic ethanol and associated co-product production from five major feedstocks - wheat straw, barley straw, corn stover, switchgrass, and rice straw.
Kergy, Inc (now Range Fuels, Inc.) Broomfield, CO
Commercial Demonstration of a Thermochemical Process to Produce Fuels and Chemicals from Lignocellulosic Biomass
Site of Proposed Facility: Near Soperton, Treutlen County, Georgia
Participants: Merrick and Company, Praj Industries Ltd., Western Research Institute, Georgia Forestry Commission, Yeomans Wood and Timber
Feedstocks: 1,200 tpd of wood residues and woody energy crops
Annual Production: ~40 million gpy ethanol and 26,000 gpd methanol
Technology: The purpose of the plant is to demonstrate commercial viability of a novel thermochemical process for producing ethanol. A patented gasification technology will be used to convert the feed in to a mixture of CO and H2 (syngas). After appropriate gas cleanup, syngas will be compressed to about 1,500 psi and converted into ethanol in a catalytic synthesis step at temperatures up to 650° F.