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    Biomass Gasification Facility for Clean

    February 2009

    Contact: [email protected]

    Copyright 2009 by ScottMadden. All rights reserved.Copyright 2009 by ScottMadden. All rights reserved.

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    Executive Summary

    Biomass Gasifiers and Synthetic Fuels Overview

    Key Economic Drivers

    Biomass Gasification Process and Technology

    Appendix

    Copyright 2009 by ScottMadden. All rights reserved.1

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    Synthetic diesel fuel is a syngas liquid made through biomass gasification

    A number of materials, including wood, garbage, and food scraps, can be used as biomass feedstock for production

    The result is a cleaner, more energy-efficient fuel than current alternatives

    Synthetic diesel reduces exhaust emissions, including CO2

    Recent events, including increased fuel prices, heightened environmental awareness, and legislation have renewed interest ins nthetic diesel and biomass asification around the world

    The Energy Policy Act of 2005 established a Renewable Fuel Standard (RFS) for transportation fuel in the United States

    The RFS required fuel suppliers to blend renewable fuel into gasoline by 2008

    It also mandated the use of advanced biofuels starting in 2009, creating a guaranteed market for the future

    Currently, forecasted availability of advanced biofuels falls short of legislative requirements in 2022

    While market potential appears strong, current development is limited

    Gasifier technology has been proven around the world, but commercial, industrial scale biomass gasifiers are still inthe development phase in the US

    Due to unproven technology, costs can vary wildly based on plant capacity and feedstock

    Conversion costs are the key driver for smaller plants

    Biomass feedstock becomes the key operating cost for larger plants

    Copyright 2009 by ScottMadden. All rights reserved.2

    Source: Production of Synthesis Gas by Biomass Gasification, Department of Chemical and Petroleum Engineering,University of Pittsburgh, November, 2007

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    Biomass Gasifiers and Synthetic Fuels Overview

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    Increased fuel prices and environmental concern have renewed interest in biomass gasification around the world.

    Numerous asifiers are currentl in o eration that exhibit a wide ran e of feed ca abilities asifier characteristics and roductgas cleanup systems

    Industrial-scale, biomass gasifiers in Europe for power production

    Industrial-scale, municipal solid waste (MSW) gasifiers in Japan for waste reduction

    Dispersed biomass gasifiers in the United States for agricultural and silvicultural waste wood utilization

    Of particular note are novel feed pretreatment techniques, such as torre faction, being developed in Europe to improvethe flow of feed to biomass gasifiers

    Though many gasifiers are already in operation, the commercial industrial-scale sector of biomass gasification in the U.S. isstill in the demonstration phase and is focused on marketing and further development, including:

    Expanding design and operating parameters (feed systems and gasifier characteristics) to utilize a wider variety of

    biomass feeds

    Developing and designing gas cleanup systems to remove tars that interfere with combustion turbines, membranesystems, and catalysts for the production of hydrogen, methanol, ethanol, and other chemicals

    In addition, the lead U.S. Department of Energy biomass gasification entity, the National Renewable Energy Laboratory(NREL), is working on a thermal platform for biomass conversion which includes:

    Developing new gasifiers (e.g., the BCT and Startech systems) for conversion of various waste biomass to cleansynthesis gas

    Providing engineering guidance studies of developed gasifiers (e.g., the SilvaGas and GTI systems) for various uses

    Copyright 2009 by ScottMadden. All rights reserved.4

    Source: Production of Synthesis Gas by Biomass Gasification, Department of Chemical and Petroleum Engineering,University of Pittsburgh, November, 2007

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    Highly Efficient Process Nearly double existing biopower industry options

    Low emissions due to turbine/fuel cell requirements

    ccess o e c ency economy o sca e v a co r ng co ue ng

    Increased environmental regulation favors gasification

    Decreased COE over todays biopower; potentially competitive with fossil, assuming tax credits

    Economic Benefits

    Rural economies

    Pulping sector an immediate beneficiary due to needed capital replacements

    Economic activity (investment of $15 billion resulted from Public Utility Regulatory Policies Act)

    Synergistic with Fossil Fuels

    Liquid fuels billions invested in syngas to fuels/chemicals

    Electricity turbines, fuel cells, combined heat, and power (cofiring with natural gas possible)

    Hydrogen production

    Potential for CO withdrawal via se uestration

    Wide range of feedstocks

    Wide range of productsVersatility

    Copyright 2009 by ScottMadden. All rights reserved.6

    Source: NREL

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    Biomass gasification is a prime competitor of natural gas and transportation fuels.

    Transportation FuelsTransportation Fuels

    AlternativeConventional Synthetic

    GasolineGasoline GasGas--toto--LiquidLiquid(GTL)(GTL)

    HydrogenHydrogen

    DieselDiesel

    BiomassBiomass--toto--LiquidLiquid

    -- --

    (CTL)(CTL)Natural GasNatural Gas

    EthanolEthanol

    BiodieselBiodiesel22ndnd Generation FuelsGeneration Fuels

    1st Generation Fuels1st Generation Fuels

    Copyright 2009 by ScottMadden. All rights reserved.7

    Source: http://velocys-files.gripmanager.com/conferences/18/2007_Military_Fuels_-_Velocys._web.pdf

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    nd

    Key benefits of 2nd generation fuels include:

    High CO2 reduction potential

    No conflict with food chain

    High land productivity

    Copyright 2009 by ScottMadden. All rights reserved.8

    Source: WTW-Report 2006

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    FuelFuel SourceSource BenefitsBenefits MaturityMaturity

    Grain/SugarEthanol

    Corn, sorghum, andsugarcane

    Produces a high-octane fuel for gasoline blends

    Made from a widely available renewable resource

    Commercially proven fueltechnology

    Biodiesel

    Vegetable oils, fats, and

    greases

    Reduces emissions

    Increases diesel fuel lubricity

    Commercially proven fuel

    technologyre

    Mature

    Green DieselOils and fats, blended withcrude oil

    Offers a superior feedstock for refineries

    A low sulfur fuel

    Commercial trials underway inEurope

    Cellulosic EthanolGrasses, wood chips, and

    Produces a high-octane fuel for gasoline blends

    The onl viable scenario to re lace 30% of U.S.

    DOE program is focused on acommercial demonstration by

    Mo

    petroleum use 2017

    ButanolCorn, sorghum, wheat,and sugarcane

    Offers a low volatility, high energy density, watertolerant alternate fuel

    BP and DuPont in the process ofproducing Butanol

    Pyrolysis

    biomass , ,

    of aromatics or phenols

    produce energy and chemicals

    Syngas Liquids Various biomass as wellas fossil fuel sources Can integrate biomass sources with fossil fuel sources Produces high-quality diesel or gasoline

    Demonstrated on a large scale

    with fossil feedstocks, commercialbiomass projects underconsiderationr

    e

    Diesel/Jet FuelFrom Algae

    Microalgae grown inaquaculture systems

    Offers a high yield per acre and an aquaculturesource of biofuels

    Could be employed for CO2 capture and reuse

    Demonstrated at a pilot plant inthe 1990s

    Hydrocarbons Biomass carbohydrates Could generate synthetic gasoline, diesel fuel, and

    other etroleum roductsLaboratory scale research inacademic laboratories

    LessMatu

    Copyright 2009 by ScottMadden. All rights reserved.9

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    Synthetic diesel fuel is a syngas liquid, and is not the same as biodiesel

    To produce synthetic diesel, wood, hemp, straw, corn, garbage, food scraps, and sewage-sludge can be dried andgas e n o syn es ze gas

    After purification, the Fischer-Tropsch process is used to produce synthetic diesel

    Such processes are often called biomass-to-liquids (BTL)

    Synthetic diesel may also be produced out of natural gas in the gas-to-liquid (GTL) process or out of coal in the coal-to-li uid CTL rocess

    BTL technology is much less mature than gas-to-liquids or coal-to-liquids technologies

    The BTL process is expected to become marketable, but it has not yet reached market maturity

    At present, no large-scale BTL plant is under operation

    Thou h the rocess is less mature BTL rovides some ke advanta es over GTL and CTL

    High biomass yield (up to 4,000 liters per hectare) High potential to reduce CO2 emissions by over 90%

    High quality that is not subject to any limitations of use in either todays engine or foreseeable next-generation engines

    Due to the hi h fuel ualit and the fact that its ro erties can be o timized s stematicall durin s nthesis BTL fuel can beconsidered one of the few fuel options available for aviation besides fossil kerosene

    The economy of BTL fuel production is strongly dependent on production scale, and large facilities are required to benefit fromeconomies of scale

    Copyright 2009 by ScottMadden. All rights reserved.10

    Source: Biomass to Liquid BTL Implementation Report," Deutsche Energie-Angentur GmbH, December, 2006

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    Synthetic diesel may play a significant role as renewable fuel in the United States and around the world.

    Biomass to li uids BTL renewable s nthetic diesel combines the ro erties and emissions benefits of s nthetic as to li uids(GTL) diesel fuel with the greenhouse gas and reduced fossil fuel dependence benefits of biodiesel:

    Premium fuel properties like GTL

    Reduced exhaust emissions like GTL (or even lower)

    Fit with existin infrastructure and en ines

    CO2 savings like ester based biodiesel (or even more)

    Renewable/reduces oil dependence

    No storage stability problems

    Very high cetane number (8499)

    Free of aromatics, sulfur, and oxygen

    High yield per hectare

    High energy density (40 MJ per liter)

    In addition to these benefits, BTL synthetic diesel provides consistent quality from diverse feedstock

    Waste animal fat Soy, corn, canola, rapeseed, and other vegetable oils

    Cellulosic wastes such as wood chips, etc.

    BTL synthetic diesel provides a cleaner, more energy efficient future

    Copyright 2009 by ScottMadden. All rights reserved.11

    Sources: California Energy Commission, Neste Oil Comments concerning scope of State Plan to Increase theUse of Alternative Transportation Fuels," May, 2006; Choren, July, 2008

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    Synthetic diesel has the highest blending cetane number and the best cold weather (cloud point) properties ofcomparable fuels. Its volumetric energy content (heating value (MJ/l) is similar to that of other alternatives.

    Synthetic DieselSynthetic Diesel GTL DieselGTL Diesel BiodieselBiodieselSulfurSulfur--free Dieselfree Diesel

    (summer)(summer)

    ens y a g m ~ ~

    Viscosity at +40C (mm^2/s) 2.93.5 3.24.5 ~ 4.5 ~ 3.5

    Cetane number ~8.499* ~ 7381 ~ 51 ~ 53**

    Cloud point (F) ~ 23-22 ~32-13 ~ 23 ~ 23

    Heating value (lower) (MJ/kg) ~ 44 ~43 ~ 38 ~ 43

    Heating value (MJ/I) ~ 34 ~ 34 ~ 34 ~ 36

    Polyaromatic content (wt-%) 0 0 0 ~ 4

    xygen con en w - ~

    Sulfur content (mg/kg)

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    - -

    StrengthsStrengths WeaknessesWeaknesses

    ro uce rom near y a ypes o ee s oc , nc u ng non- oocrops

    Feedstock costs are very low

    Inputs of fertilizer and pesticide are not required for feedstockproduction

    New cultivation techniques, such as mixed cropping, benefit

    BTL fuels can only be produced at industrial, large-scalefacilities

    Current investment costs for BTL plants and fuel production aretoo high to be competitive with other fuels

    o vers y

    Cultivation of perennial plants prevents soil erosion and isadvantageous to ground water protection

    Chemical properties of the hydrocarbons in BTL fuels permitefficient and complete combustion with low exhaust gasemission

    BTL properties can be influenced by changes in specific

    parameters such as pressure, temperature, and catalysts duringsynthesis and the subsequent treatment

    Engines can use BTL fuel without technical modifications

    OpportunitiesOpportunities ThreatsThreats

    Pilot plants for BTL fuel production have already been set up

    Synthetic fuels can be ideally adapted to current engineconcepts

    Large-scale production is expected within the next 20 years

    BTL production is still in the pilot stage

    BTL fuels are not broadly available at the current time

    Other technologies could be introduced as competitors beforeBTL is proven commercially viable

    Copyright 2009 by ScottMadden. All rights reserved.13

    Source: WIP Renewable Energies Biofuel SWOT Analysis (2007)

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    Key Economic Drivers

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    Fossil fuels will dominate the market for decades, but biofuels are the only short-term viable alternative.

    Copyright 2009 by ScottMadden. All rights reserved.15

    Source: WEC & Shell

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    to

    fTo

    talSa

    les

    Perce

    Increasing sales of alternative light duty vehicles will create a growing market for b iofuels over the next

    few decades

    Copyright 2009 by ScottMadden. All rights reserved.16

    Source: EIA Annual Energy Outlook 2009 Reference Case Presentation, December 17, 2008

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    Based on current projections, biofuels will fall short of RFS requirements in 2022, creating an opportunity for new

    producers. By 2030, production is forecast to exceed the mandate.

    Copyright 2009 by ScottMadden. All rights reserved.18

    Source: EIA Annual Energy Outlook 2009 Reference Case Presentation, December 17, 2008

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    Copyright 2009 by ScottMadden. All rights reserved.19

    Source: Choren

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    TechnologyTechnology AdvantagesAdvantages DisadvantagesDisadvantages

    Electric Vehicles (EVs) Zero emissions

    Can reclaim energy when brakingand coasting

    More efficient energy transfer: EVs

    High cost

    Low power

    Short driving range before refueling

    Long recharging time (up to 8 hours)hydrogen or methanol

    Fuel Cells Energy conversion is twice asefficient as combustion

    Low emissions when hydrogen is

    Extremely expensive to build and tofuel with hydrogen

    No infrastructure yet in place forused as a fuel refueling

    Hydrogen production relies on fossilfuels

    -

    (gasoline, diesel)

    Provide high speeds and longdistances

    Fast refueling

    other greenhouse-gas and pollutantemissions

    Fossil-fuel reserves are declining

    Often need to be imported frompolitically unstable regions

    Copyright 2009 by ScottMadden. All rights reserved.20

    Source: Biofuels," Luxresearch

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    Biomass Gasification Process and Technology Overview

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    The schematic line-up of an integrated biomass gasification and Fischer-Tropsch synthesis (BTL) plant is shown in

    the figure below .

    Copyright 2009 by ScottMadden. All rights reserved.22

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    Copyright 2009 by ScottMadden. All rights reserved.23

    Source: Economy of BTL plants," H. Boerrigter; Energy Research Center of the Netherland

    Efficient Biomass Gasifiers Exploit the Unique

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    Efficient Biomass Gasifiers Exploit the Unique

    Biomass Characteristics Im lications

    Fibrous materialFibrous material

    Feeding systems:Feeding systems:

    Particle size limitations,Particle size limitations,

    pressurized operation morepressurized operation more

    High reactivityHigh reactivity

    High volatiles contentHigh volatiles contentGasifier designGasifier design

    Allows gasification withoutAllows gasification without

    difficultdifficult

    g c ar react v tyg c ar react v ty

    Raw syngas compositionRaw syngas composition

    TarsTars

    pure oxygenpure oxygen

    Gas cleanupGas cleanup

    More tar, water solubleMore tar, water soluble SulfurSulfur Alkali, ammonia, othersAlkali, ammonia, others

    Low sulfur (except BL)Low sulfur (except BL) Must be consideredMust be considered

    Scale of operationScale of operation Limited economies of scaleLimited economies of scale

    Copyright 2009 by ScottMadden. All rights reserved.24

    Source: Thermochemical Technologies for Conversion of Biomass to Fuels and Chemicals," BiorefineryAnalysis and Exploratory Research Group, Rice University

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    Gasifier T es: Advanta es and Disadvanta es

    GasifierGasifier AdvantagesAdvantages DisadvantagesDisadvantages

    Updraft Mature for heat

    Small scale applications

    Can handle high moisture

    No carbon in ash

    Feed size limits

    High tar yields

    Scale limitations

    Producer gas Slagging potential

    Downdraft Small scale applications

    Low particulates

    Low tar

    Feed size limits

    Scale limitations

    Producer gas

    Moisture sensitive

    Fluid Bed Large scale applications

    Feed characteristics

    Direct/indirect heating

    Medium tar yield

    Higher particle loading

    Can produce syngas

    Circulating Fluid Bed Large scale applications

    Feed characteristics

    Can produce syngas

    Medium tar yield

    Higher particle loading

    Entrained Flow Can be scaled

    Potential for low tar

    Can produce syngas

    Large amount of carrier gas

    Higher particle loading

    Potentially high steam to carbon

    Particle size limits

    Copyright 2009 by ScottMadden. All rights reserved.25

    Source: Thermochemical Technologies for Conversion of Biomass to Fuels and Chemicals," BiorefineryAnalysis and Exploratory Research Group, Rice University

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    Capital and operating costs for biomass gasification vary wildly.

    Plant typePlant type MWMW Capital costCapital cost

    Biomass gasification combined cycle(current)

    75 $1,800 - $2,000 per kWe

    Biomass gasification combined cycle 75 $1,400 per kWe

    Assuming a base feed cost of $2/Mbtu, the cost of production from gasification has been recently estimated at 6.7/kWh for

    Biomass gasification for thermal energyor cofire

    16 $312 per kW thermal

    electricity for a 75 MW plant. Steam costs were estimated at $6.70 per 1,000 lb steam

    Assuming a base feed cost of zero, the cost of production from gasification has been recently estimated at about 5/kWh forelectricity for a 75 MW plant. Steam costs were estimated at $5.00 per 1,000 lb steam

    Energy Efficiency

    A series of case studies have been performed on the three conversion routes for combined heat and power applications ofbiomass - direct combustion, gasification, and cofiring

    For a 75 MW electric generating plant without combined heat and power, the study reports:

    Gasification is 36% efficient.

    For a 75 MW electric generating plant with combined heat and power, the study reports:

    Direct biomass combustion is 62% efficient

    Copyright 2009 by ScottMadden. All rights reserved.26

    as ca on s e c enSources: http://www.wisbiorefine.org/proc/biomassgas.pdf; NREL; http://www.gasifiers.org

    Scale Dependency of Fischer-Tropsch Diesel Fuel

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    p y p

    Conversion costs are the dominant cost factor at plant capacities below 2,000 MW th biomass input. The transport,

    shipment, and storage costs are only a small cost item, independent of scale and related transport distances.

    ,

    costs is completely outweighed by the increasing investment costs.

    Copyright 2009 by ScottMadden. All rights reserved.27

    Source: Economy of BTL Plants," Energy Research Center of the Netherlands, May, 2006

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    Conversion costs are a large expense in smaller plants but decrease considerably as plant capacity increases. Once

    capacity reaches 1,800 MW, biomass feed becomes the key cost driver.

    Copyright 2009 by ScottMadden. All rights reserved.28

    Source: Economy of BTL Plants," Energy Research Center of the Netherlands, May, 2006

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    BarrierBarrier PriorityPriority Potential Cost Reduction, %Potential Cost Reduction, %

    u

    Syngas Utilization (Products) High 1015

    Process Integration Medium 510

    Thermal Processing Medium 510

    Feed Processing & Handling Medium 510

    Sensors & Controls Low 15

    Copyright 2009 by ScottMadden. All rights reserved.29

    Sources: DOE; http://www.egr.msu.edu/bio/srdc/presentations/11_03talks/Thermochem_overview.pdf

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    Commercialization Status

    Biomass gasification is an emerging commercial technology

    It evolved from intensive R&D in the 1970s and 1980s

    Developmental roots in small-scale biomass gasifiers and coal gasification date back to the early 20th century

    Biomass gasification systems from small to large are commercially available, but many technology developers are in theprototype and first commercial demonstration stage

    Thirteen biomass asifiers currentl have the otential to be considered seriousl b investors for lar e centralized commercialprojects [>100 feed tons/day (~ 7 MWe)], according to research on biomass gasifiers by University of Pittsburgh

    Each of these gasifiers is limited in the feeds it can utilize and the products it can generate

    Financial parameters need to be developed for these gasifiers to further assist investors in process selection

    A similar anal sis needs to be erformed for biomass asifiers that have the otential to be considered b investors for smallerdistributed commercial projects

    Copyright 2009 by ScottMadden. All rights reserved.30

    Sources: Survey of Commercial Biomass Gasifiers," Department of Chemical and Petroleum Engineering, University of Pittsburgh;http://www.wisbiorefine.org/proc/biomassgas.pdf

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    Com anCom an SizeSize Site LocationSite Location Year Year FeedFeed Ultimate ProductsUltimate ProductsGasifierGasifier

    ParametersParameters

    British Gas LurgiGasifier

    840 Tons/Day(T/D) commercialplant

    Spreetal, Germany 2003 MSW,coal/biomassbriquettes

    Methanol &electricity

    Downward movingbed, slaging bottom,steam/oxygen-blown, 1450C, 25bar

    Choren Carbo-VProcess Gasifier*

    200 T/D betaplant (U.C.)

    Freiberg, Germany N/A 50% waste wood,50% clean woodchips

    Syngas convertedto 16.5 M L/Y ofSunFuel via FTsynthesis andhydrocracking

    Sequential (1)pyrolyzer (horizontal,stirred bed; 500oC; 4bar), (2) gasifier ofpyrolysis gas1400oC; 4 bar , and

    (3) chemicalquencher ofpyrolysis char andgasified pyrolysisgas (entrained bed;900oC; 4 bar; O2-blown)

    EnerkemBIOSYN Gasifier

    7 MWedemonstrationplant

    Ribesalbas, Spain 2003 MSW, wastebiomass, refusederived fuel (RDF)and plastic

    Synthesis gas,electricity

    Bubbling fluid bed;air- or oxygen-blown;1832oF; 16 atm

    Foster WheelerACFB Gasifier

    42 MWecommercial plant

    Lahti, Finland 1998 Biofuels, RDF,wood waste

    Electricity Circulating fluid bed(CFB); air-blown;1000oC; 1 atm

    Copyright 2009 by ScottMadden. All rights reserved.31

    Source: Survey of Commercial Biomass Gasifiers," Department of Chemical and Petroleum Engineering, University of Pittsburgh,November, 2007

    o e: xamp e o as cs or oren ro uc on ac y are e ow

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    GasifierGasifier

    FosterWheelerPCFB Gasifier

    6MWe & 9 MWt(55 T/D)demonstrationplant

    Vrnamo, Sweden 1999 Wood, RDF andstraw

    Electricity CFB; air-blown;950oC; 18 bar

    Lurgi CFBGasifier

    29 MWecommercial plant

    Lahden,Netherlands

    2000 Demolition wood,RDF

    Electricity CFB; air-blown;900oC; 1 atm

    Lurgi Dry AshGasifier 340 T/Dcommercial plant Spreetal, Germany 1964 Plastics, MSWpellets, tar-sludgepellets,contaminatedwood, other wastes

    Fuel gas, synthesisgas Grate-type fixed-bed down-flow dry-ash reactor;oxygen/steam-blown; 1472-

    Primenergy

    Gasifier

    290 T/D CHP (1

    MWe) commercialplant

    Little Falls,

    Minnesota , USA

    2006 Waste wood Electricity, steam Updraft gasifier;

    air-blown; 1 atm

    RepotecGasifier

    8 MWtdemonstrationplant

    Gssing, Austria 2001 Wood chips 2.0 MWe and 4.5MWt for districtheating

    Coupled CFBs(biomass pyrolyzer,char combustor);steam-blown 850oC (pyrolyzer);air-blown

    Copyright 2009 by ScottMadden. All rights reserved.32

    (combustor)

    Source: Survey of Commercial Biomass Gasifiers," Department of Chemical and Petroleum Engineering, University of PittsburghNovember, 2007

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    SilvaGasGasifier

    400 T/D T/Ddemonstrationplant (U.C.)

    Forsythe, Georgia N/A Clean Biomass Synthetic gas Coupled CFBs(biomass pyrolyzer,char combustor);steam-blown 1500oF (pyrolyzer);

    air-blown 1800oF(combustor); 1 atm

    ThermoselectGasifier

    600 T/Dcommercial plant

    Kurashiki, Japan 2005 MSW plugs Synthetic gas Sequential biomasspyrolyzer andoxygen-blown,en ra ne c argasifier; 570oF

    (pyrolyzer) and2,200oF (combustor)

    TPS Gasifier Two 110 ton/hrunits in

    Grve-in-Chianti,Italy

    1992 RDF pellets Electricity CFB; air-blown; 850-900oC; 1 atm

    emons ra onplant

    Plasma Gasifier

    commercial plant

    , ,bed; plasma bottom;air-blown; 4500oF(plasma torch) and2282oF (gas exit); 1atm

    Copyright 2009 by ScottMadden. All rights reserved.33

    Source: Survey of Commercial Biomass Gasifiers," Department of Chemical and Petroleum Engineering, University of Pittsburgh,November, 2007

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    Appendix

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    Biofuels Alcohol Grains & Ethanol

    sugar crops Dry mill Wet mill

    Butanol

    Ethanol

    Dry mill Wet mill

    plant-based waste)

    Methanol

    Acid h drol sis

    Acid hydrolysis

    Enzymatic hydrolysis

    BiodieselVegetable

    oils or animals fats Transesterification

    Enzymatic hydrolysis

    Bio-oil

    Biomass (plants,

    plant-based waste,

    animal waste)

    P rol sis and

    Copyright 2009 by ScottMadden. All rights reserved.35

    high-pressure liquefactionSource: Biofuels," Luxresearch

    G f

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    Biomass Gasification Process

    A primary advantage of biomass gasification over biomass combustion is that the power generation efficiency of a

    gas turbine combined cycle system can be as much as twice the efficiency of biomass combustion processes,

    .

    Note: F-T = Fischer-Tropsch

    Copyright 2009 by ScottMadden. All rights reserved.36

    Sources: Thermochemical Technologies for Conversion of Biomass to Fuels and Chemicals," BiorefineryAnalysis and Exploratory Research Group, Rice University.http://www.wisbiorefine.org/proc/biomassgas.pdf

    = me y er

    Input Parameters for the Economic Assessment of

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    Copyright 2009 by ScottMadden. All rights reserved.37

    Source: Economy of BTL Plants," Energy Research Center of the Netherlands, May, 2006

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    Copyright 2009 by ScottMadden. All rights reserved.38

    Source: Congressional Research Service (CRS) Report for Congress Biofuels Incentives:A Summary of Federal Programs (1/30/2008)

    Summary of Federal Incentives Promoting Biofuels

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    Copyright 2009 by ScottMadden. All rights reserved.39

    Source: Congressional Research Service (CRS) Report for Congress Biofuels Incentives:A Summary of Federal Programs (1/30/2008)

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    VolumeVolumeConventionalConventional AdvancedAdvanced CellulosicCellulosic

    BiomassBiomass--BasedBased

    DieselDiesel

    UndifferentiatedUndifferentiated

    AdvancedAdvancedTotal BiodieselTotal Biodiesel

    PotentialPotential

    of gallonsof gallonsBiofuelsBiofuels BiofuelsBiofuels BiofuelsBiofuels (Biodiesel)(Biodiesel)

    (Biodiesel)(Biodiesel)(Biodiesel)(Biodiesel)

    2006 4.000 4.000

    2007 4.700 4.700

    2008 9.000 9.000

    2009 11.100 10.500 0.600 0.500 0.100 0.600

    2010 12.950 12.000 0.950 0.100 0.650 0.200 0.850

    2011 13.950 12.600 1.350 0.250 0.800 0.300 1.100

    2012 15.200 13.200 2.000 0.500 1.000 0.500 1.500

    2013 16.550 13.800 2.750 1.000 1.000* 0.750 1.750

    2014 18.150 14.400 3.750 1.750 1.000* 1.000 2.000

    2015 20.500 15.000 5.500 3.000 1.000* 1.500 2.500

    2016 22.250 15.000 7.250 4.250 1.000* 2.000 3.000

    2017 24.000 15.000 9.000 5.500 1.000* 2.500 3.500

    2018 26.000 15.000 11.000 7.000 1.000* 3.000 4.000

    2019 28.000 15.000 13.000 8.500 1.000* 3.500 4.500

    2020 30.000 15.000 15.000 10.500 1.000* 3.500 4.500

    2021 33.000 15.000 18.000 13.500 1.000* 3.500 4.500

    2022 36.000 15.000 21.000 16.000 1.000* 4.000 5.000

    Copyright 2009 by ScottMadden. All rights reserved.40

    * Administrator determines minimum use allocation for "biomass-based diesel"

    Source: Overview of House (H.R. 6) Renewable Fuels Program as it relates to BiodieselIncluding an overview of the Agri-biodiesel and Biodiesel Tax Credits, December 6, 2007

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    For more information on biomass gasification facility for clean synthetic diesel fuels, please contact us.

    Jere Jake JacobiPartner andSustainability Practice Leader

    ScottMadden, Inc.

    Ten Piedmont Center

    Suite 805

    Atlanta GA 30305

    Phone: 404-814-0020Mobile: 262-337-1352

    acobi scottmadden.com

    Copyright 2009 by ScottMadden. All rights reserved.

    Prepared by : Dina Chanysheva, Michael Anckner, & Jere Jacobi