Date post: | 13-Jun-2015 |
Category: |
Business |
Upload: | forestresearchllc |
View: | 708 times |
Download: | 1 times |
March 19, 2009 Forest Research, LLC 1
Potential Markets for
Chemicals from Woody Biomass
NESAF, Portland, Maine
March 19, 2009
Don MacKay, Ph.D, CFAForest Research, LLC
March 19, 2009 Forest Research, LLC 2
Overview
History
Current situation– Markets, oil prices
Production processes
Potential products– More on biochemicals, less on
biofuels
Summary
History
Long history of using trees for chemicals and pharmaceuticals
Oaks for tanning and dyes
Naval stores (pine resins)
Hardwood distillation industry– Acetic acid
– Acetone
– Methanol
March 19, 2009 Forest Research, LLC 3
March 19, 2009 Forest Research, LLC 4
0
2
4
6
8
10
12
14
1924 1925 1926 1927 1928 1929 1930 1931
Millio
n g
allo
ns
Year
Wood Distillation Synthetic
US Methanol Production 1924-1931, By Source
Zeisberg 1933
March 19, 2009 Forest Research, LLC 5
0
10
20
30
40
50
60
70
80
90
100
1923 1925 1927 1929 1931
Millio
n p
ou
nd
s
Year
Wood Distillation Synthetic
US Acetic Acid Production 1923-1931, By Source
Zeisberg 1933
Current Situation
Key biochemical industry trends– Supporting growth
Long-term oil and natural gas prices
Limited supply of oil
Increasing concern around greenhouse gas emissions
Government funding (US, Europe, Asia)
– Inhibiting growth Financial Crisis of 2008
Shifts in supply and demand for chemicals
Technology is developing
Woody biomass supply challenges
March 19, 2009 Forest Research, LLC 6
March 19, 2009 Forest Research, LLC 7
$0
$20
$40
$60
$80
$100
$120
$140
$160
J-89 J-91 J-93 J-95 J-97 J-99 J-01 J-03 J-05 J-07 J-09
World Oil Price, US$ per Barrel
Source: Energy Information Administration
March 19, 2009 Forest Research, LLC 8
$0
$2
$4
$6
$8
$10
$12Ja
n-7
8
Ap
r-7
9
Jul-
80
Oct
-81
Jan
-83
Ap
r-8
4
Jul-
85
Oct
-86
Jan
-88
Ap
r-8
9
Jul-
90
Oct
-91
Jan
-93
Ap
r-9
4
Jul-
95
Oct
-96
Jan
-98
Ap
r-9
9
Jul-
00
Oct
-01
Jan
-03
Ap
r-0
4
Jul-
05
Oct
-06
Jan
-08
U.S. Natural Gas Wellhead Price
Natural GasUS$ per Thousand Cubic Feet
Source: Energy Information Administration
Current Situation
Key biochemical industry trends– Supporting growth
Long-term oil and natural gas prices
Limited supply of oil
Increasing concern around greenhouse gas emissions
Government funding (US, Europe, Asia)
– Inhibiting growth Financial Crisis of 2008
Shifts in supply and demand for chemicals
Technology is developing
Woody biomass supply challenges
March 19, 2009 Forest Research, LLC 9
Woody Biomass as a
Supply Source
Many biochemical technologies are untested, with unknown economics
Biomass is typically sourced over a wide area
Moisture content can be high, drying may be required
Supply less certain than other types of feedstocks, also seasonality
Transportation and storage can be more challenging than other feedstocks
March 19, 2009 Forest Research, LLC 10
Fuels and Chemicals
Worldwide investment in biofuels and biochemicals
– Industry
Old Town Fuel and Fiber
Weyerhaeuser/Chevron (Catchlight)
– US federal funding
– Other countries
China
US cellulosic ethanol investment estimated at $1.2 billion last fall
March 19, 2009 Forest Research, LLC 11
March 19, 2009 Forest Research, LLC 12
Liquid Biofuels and Chemicals
First generation– Biofuels, such as ethanol,
from food-related biomass
– Oilseed based biodiesel
Second generation– Non-food sources
Agricultural residues
Woody biomass
March 19, 2009 Forest Research, LLC 13
Roundwood Short rotation woody crops Wood residue from primary wood products mills, such as wood and bark Wood residue from secondary wood products mills Commercial and demolition debris Black liquor from pulpmills
Potential Sources
Source: Skog and Rosen 1997
Feedstock Processes
Lower energy (portion of wood)– Extraction (e.g., hot water)
Value prior to pulping
– Fermentation (via bacteria & fungi) Ethanol, sugars
Higher energy (whole wood)– Gasification
Gas products
– Pyrolysis (absence of oxygen) Liquids
March 19, 2009 Forest Research, LLC 14
Wood Composition Varies
Hardwoods preferred for certain types of chemicals–Hemicellulose
generally more hemicellulose
contains more xylan, which is a starting point for biochemicals
Softwoods–Generally small amounts of xylan
–Naval stores - resins
March 19, 2009 Forest Research, LLC 15
Potential Chemicals
Acetic acid– Important industrial, intermediate chemical
– Historically produced from wood
– Large market (roughly US$10 billion)
– Can be obtained via low and high energy processes
– Uses Raw material for VAM, used in paints and coating
Other uses adhesives, paper coatings, textile finishing agents, production of aspirin
– Roughly two-thirds of production comes from methanol
– Price has declined – correlated with construction
– Demand growth in China
March 19, 2009 Forest Research, LLC 16
Potential Chemicals
Furfural– Intermediate commodity chemical
– Moderate market (roughly US$250 million)
– Produced from hemicellulose in biomass (no synthetic route)
– Quaker Oats (oat hulls, rice hulls, sugar cane residual)
– Produced in China, Dominican Republic, and South Africa
– Uses Used in a range of specialty chemicals
Used in resin production, to produce lubricants, nylons
– Can compete with hydrocarbons without subsidies (RIRDC 2006)
March 19, 2009 Forest Research, LLC 17
Potential Chemicals
Itaconic acid– Specialty monomer. Could be used in
manufacture of acrylic fibers, detergents, adhesives
– Expensive to produce from oil, now corn
Succinic acid– Platform chemical (naturally occurs)
– DOE licensed fermentation technology
Lactic acid– Range of uses – biodegradable polymers
– Currently mostly from corn
March 19, 2009 Forest Research, LLC 18
Potential Chemicals
Methanol – less appealing– Important industrial chemical (40+ million tons yr)
35-40% used to create formaldehyde, which is used in plywood
20% used in gasoline
Remaining used for a variety of purposes, including creating acetic acid
– Once exclusively produced from wood, now primarily natural gas
– Potentially produced from high energy processes
– Correlated with housing – weak demand
– High cost shutting down -- production shifting to
Middle East, Asia
March 19, 2009 Forest Research, LLC 19
Potential Chemicals
Hydrogen – far to market– Extensively studied,
promising product
– Does not release CO2 when consumed at its end use
– Potentially produced through many processes, primarily from high energy processes
– Most likely consumed where produced
March 19, 2009 Forest Research, LLC 20
Some Key Drivers
Successful Investments Must Be Market Driven– Changes in price relationships between
current uses and new uses (pulp, energy, chemicals)
– Price and demand for chemicals
– Availability and prices of new and existing raw materials (woody biomass, oil)
– Relative environmental impacts of new and old feedstocks (woody biomass, fossil fuels)
March 19, 2009 Forest Research, LLC 21
Source: Skog and Rosen 1997
Summary Wood has a long history of use for chemicals
Substantial investment, industry growth– Seeking lower cost, nonfood, renewable feedstocks
– Biomass is the only large, renewable source of chemicals
Technological challenges remain. Incremental changes likely to be superior investments
Chemicals & pharms compete in the global arena– China, Middle East
– Specialty products/patented processes likely superior investments
Chemical prices may be correlated with lumber/pulp/paper prices
Certain tree species will be superior for certain chemicals
March 19, 2009 Forest Research, LLC 22
March 19, 2009 Forest Research, LLC 23
Acknowledgements
This activity is supported byNational Science Foundation award
#EPS-0554545to Maine EPSCoR at the
University of Maine
Barbara Cole and Ray Fort at the University of Maine
Amy Mares, student at Orono High School
Complete report available at www.forestresearchllc.com