10 Bellwether Biofuels & Biobased Projects for 2014

April 14, 2014 |

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Advanced biofuels – are plans turning into reality? Are development plans realistic? When these 10 projects open for business (or not) in 2014, you’ll know for sure.

We wrote in 2012: “If, by this time next year, we have all of these projects completed and in operation, it will go a long way towards substantiating the claims that the bio-based industrials are making, about their ability to transform the way in which products are made, while being financially viable at the same time. Should a number of them fail to operate as advertised, or run into costly delays that challenge a project’s financial viability, that will go a long ways towards substantiating the POV of the Journal that the bio-based industry is, indeed, loaded with debacles.”

Well, the picture is incomplete.

Plants like the Valero Darling renewable diesel project are running fine; demonstrations like American Process AVAP plant came on line as expected; while others like the KiOR project in Columbus, NM foundered. The INEOS Bio project in Vero Beach, FL and the Gevo plant in Luverne, MN are open, but not producing at their intended run-rate, either.

Making 2014 very much a critical year.

What’s on the docket for this year? The largest waste-to-fuels plant, the first tailored oils plant from Solazyme, three major cellulosic ethanol projects in the US. Two major cellulosic ethanol projects in Brazil. A signature low-cost waste-to-gasoline (blendstock) project. A major renewable diesel project in Finland, and a key succinic acid first commercial in Ontario.

The 10 Bellwether Projects

1.

Cool Planet, first commercial, Port of Alexandria, Louisiana

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The Project: In 2013, Cool Planet Energy Systems CEO Howard Janzen said that the company will build three bio-refineries in Louisiana with a capital investment of $168 million. The project will consist of modular biomass-to-gasoline refineries in the Port of Alexandria, Natchitoches and a site to be determined. The first facility will be located at the Port of Alexandria, on the Red River Waterway in Central Louisiana. The site was chosen because of its excellent wood biomass availability, interstate and rail access, and direct barge access to more than nine refineries. The facility is expected to produce at least 24 direct jobs and bring at least $56 million in economic investment into the state. Estimates are that an additional 150 indirect jobs will result because of this facility, and 350 construction jobs will be utilized.

Cool Planet will use a portion of the equity raise to finalize engineering design for the company’s first commercial facility. The funding will also provide capital to construct Cool Planet’s first commercial plant, which will be located at the Port of Alexandria, Louisiana.

Status: In December 2013, Cool Planet broke ground on the company’s first commercial facility in Alexandria, Louisiana, dubbed Project Genesis. The facility is designed to produce 10 million gallons per year of high-octane, renewable gasoline blendstocks, as well as biochar, all made from sustainable wood residues.

The company expects the facility to be in operation before the end of 2014.

2.

Abengoa Biorefinery, first commercial cellulosic ethanol plant – Hugoton, KS

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The project: The 25 million-gallon/year biorefinery is expected to be in full production by early 2014. The refinery – which will be fueled 100% by biomass- will produce 25 million gallons of ethanol derived from nearly 350,000 tons of biomass annually. The plant will utilize approximately 1,100 dry tons of biomass per day in the ethanol production process. The residue of that process will be combusted along with 300 tons/day of fry, raw biomass material (feedstock) to produce 18 megawatts of electricity. This power will make the entire facility energy efficient and environmentally friendly.

Status: Construction is expected to be completed by the end of 2013 with some ethanol production starting the same year, though ramp up will be in 2014. In February, Abengoa EVP Chris Standle told delegates at the National Ethanol Conference that the biomass boiler has started up and the plant was delivering power to the grid as of December 2013.

In October, Abengoa CEO Manuel Sanchez Ortega, said; “Abengoa believes that the advanced biofuel industry offers positive opportunities for investment and we are now approximately 1 year into construction of a commercial scale cellulosic ethanol plant in Hugoton, Kansas. This commercial scale facility is on schedule to be completed and to begin commercial production near the end of 2013. Abengoa is committed to the advancement of renewable fuel as a path to securing a clean energy future for all.”

3.

GranBio commercial cellulosic ethanol plant, Alagoas, Brazil

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In January: Last spring, GranBio Investimentos announced plans to invest $724.5 million in five cellulosic ethanol plants during the next few years. The first 21.6 million gallon facility in Alagoas that will use sugarcane bagasse as feedstock is expected to come online in December 2013. The first plant will produce cellulosic ethanol from sugarcane bagasse and straw, and Novozymes will supply the necessary enzyme technology while Beta Renewables and Chemtex, both part of Italian chemical group Mossi & Ghisolfi (M&G), will provide other process technologies and engineering.

Status: GranBio is guiding now that “the 2G ethanol plant being built in Alagoas should begin operating in early 2014 with a nominal production capacity of 82 million liters per year.” Meanwhile, Sugaronline News is reporting that “the Bioflex unit, a division of GranBio in Alagoas state, confirmed it would inaugurate next week its first experimental planting of energy cane production in Alagoas. The crop will be in the city of Barra de Sao Miguel, and be ready for harvest in the first quarter of 2014.”

4.

POET-DSM Project Liberty, Emmetsburg, IA

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The Project: In October, POET-DSM Advanced Biofuels said that Project LIBERTY construction is scheduled to be complete in late 2013, and this fall farmers are increasing the amount of biomass delivered to the site in an effort to fine-tune storage efforts and get farmers used to the biomass collection process.  POET-DSM officials confirmed that the plant will hit its goal of collecting about 85,000 tons of corn cobs and light stover in this harvest season. Project LIBERTY is expected to produce 20 million gallons per year of cellulosic bio-ethanol, growing to about 25 million gallons per year.

Status: “Cellulosic ethanol plant remains on schedule for Q2 startup,” said Poet-DSM GM Steve Hartig in February. Commissioning for select parts of the process was scheduled to begin in January. Construction progress to date includes a completed biomass receiving and grinding building, completed saccharification, fermentation tanks, and processing areas, as well as the completed cooling tower and underground utilities. Project LIBERTY will produce up to 20 million gallons.

5.

DuPont Industrial Biosciences, first commercial, Nevada, Iowa

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The Project: DuPont Industrial Biosciences currently operates a demonstration facility in Vonore, Tenn., which is producing cellulosic ethanol from stover and is generating data for commercial production.

The next step was the construction and operation of its commercial-scale cellulosic ethanol biorefinery in Nevada, Iowa. DuPont has broken ground on the facility, which has a 12-18 month build out and is expected to be mechanically complete in 2014. Once completed, this will be one of the first commercial scale cellulosic biorefineries in the world and will generate 28 million gallons of cellulosic biofuels from corn stover (corn residues, including cobs, stalks, leaves).

DuPont Cellulosic Ethanol is also currently working with local farmers to build and scale up the supply chain for this biorefinery. DuPont’s Stover Harvest Collection Project involves collaboration with farmers, DuPont Pioneer biomass supply chain experts and Iowa State University, as well as custom harvesters and equipment manufacturers. It is focused on standardizing equipment and techniques for collection, transport, storage and pre-processing of stover, while ensuring stewardship of farms and achieving economics of the biorefinery.

Status: In February, DuPont Cellulosic Ethanol’s Kenneth Hill told delegates at the National Ethanol Conference “We expect to start commissioning some of our utility components in the second quarter of this year with full start up expected after substantial completion in late 2014.”

6.

Raizen / Iogen, first commercial, Brazil

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The Project: Iogen says it has has “one of the world’s largest and most experienced teams in developing, designing, de-bugging, scaling-up and deploying cellulosic biofuel technology. We’re using innovative thinking and disciplined engineering to transform cellulosic biofuels into real, reliable and cost-effective fuels for today’s cars and trucks. The first commercial cellulosic ethanol facility based on our technology is being built in Brazil by Raízen, a $30 billion Brazilian energy company. It is scheduled to be ready for start-up in 2014.”

Status: In December 2013, Raizen broke ground on a commercial cellulosic ethanol plant using Iogen Energy technology, which represents more than a year of cooperation between Raizen and Iogen. The $100m plant, to be located adjacent to a sugar cane mill in Sao Paulo, will produce 10 mmgy per year. The plant is expected to start production by the 4th quarter of 2014.

7.

Solazyme-Bunge, first commercial, Moema, Brazil

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The Project: Solazyme and Bunge have broken ground on a their 100,000 metric ton renewable oil production facility adjacent to Bunge’s Moema sugarcane mill in Brazil. Construction started on schedule and the plant is targeted to be operational in the fourth quarter of 2013. It will service the renewable chemical and fuel industries within the Brazilian marketplace and will initially target 100,000 metric tons per year of renewable oil production.

In November 2012, Solazyme and Bunge announced in a framework agreement that they intend to expand production capacity from 100,000 metric tons to 300,000 metric tons globally by 2016, and that the portfolio of oils will broaden to include a range of healthy and nutritious edible food oils for sale in Brazil.

Status: The Moema plant in Brazil is currently being commissioned, with fermentation set to start in March and product recovery in April. At that point, Solazyme will be the first player in the algae bioindustrial arena to have achieved commercial-scale production in both North and South America.” CEO Jonathan Wolfson adds: ““In the first half of 2014, we are focused on successfully executing Solazyme’s entry into broad commercial operations. We have begun shipping multiple products from the Clinton/Galva, Iowa facilities and are deep into commissioning in Brazil as we complete the first-of-its-kind 100,000 MT Solazyme Bunge Renewable Oils (SB Oils) facility at Moema.”

8.

Enerkem, first commercial, Edmonton, Alberta

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The Project: Enerkem Alberta Biofuels is among the world’s first commercial facilities to be built for the production of advanced biofuels. During construction, more than 600 direct and indirect jobs were created across North America for the modular manufacturing of its parts and systems and on-site assembly. The facility is a collaboration between Enerkem, the City of Edmonton and Alberta Innovates – Energy and Environment Solutions. When fully operational, it will have a production capacity of up to 38 million litres per year and will help the City of Edmonton divert 90% of the residential waste stream from landfill.

Status: Enerkem announced that commissioning is underway at its commercial-scale municipal waste-to-biofuels and chemicals facility in Edmonton. Construction of the facility is nearing completion and Enerkem will complete the commissioning during the next few months. Production of biomethanol will start gradually during this period. An ethanol module will be added in 2014.

This facility is a collaboration between Enerkem, the City of Edmonton and Alberta Innovates – Energy and Environment Solutions. When fully operational, it will have a production capacity of up to 38 million litres per year and will help the City of Edmonton divert 90% of the residential waste stream from landfill.

The City of Edmonton and Enerkem Alberta Biofuels have signed a 25-year agreement to convert 100,000 tonnes of the City’s municipal solid waste into biofuels annually. The garbage to be used cannot be recycled or composted.

9.

UPM, first commercial, Lappeenranta, Finland

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The Project: “The EUR 150 million investment to Lappeenranta is UPM’s spearhead project and the first step on our way to becoming a significant producer of advanced second generation biofuels. The Biorefinery is also a focal part in the realisation of our Biofore strategy, combining the bio and forest industries,” says UPM President and CEO Jussi Pesonen. The UPM Lappeenranta Biorefinery is the first significant investment in a new and innovative production facility in Finland during the ongoing transformation of forest industry. It will be realised without public investment grants.

Status: In November 2012, UPM laid the foundation stone at its Lappeenranta Biorefinery. Construction began in summer 2013 and the biorefinery will start producing renewable diesel made from tall oil in 2014.

10.

BioAmber, first commercial, Sarnia, Ontario

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The Project: As BioAmber related in the S-1A, “We have incorporated numerous lessons learned and improvements gained from operating the facility in France into our engineering design for our planned manufacturing facility in Sarnia, Ontario. We expect to produce bio-succinic acid [without subsidy] cost-competitive with succinic acid produced from oil priced as low as $35 per barrel.”

“We have begun early works on the site in Sarnia including hooking up to the water and sewer system under Vidal Street,” says the company’s Executive Vice-President Mike Hartmann. “The $80 million project is being constructed at the LANXESS Bio-Industrial Park in Sarnia. The site is located in a large petrochemical hub with existing infrastructure that facilitates access to utilities and certain raw materials and finished product shipment, including steam, electricity, hydrogen, water treatment and carbon dioxide,” the Sustainable Chemistry Alliance newsletter reported.

Status: The plant is expected to open in 2014.

The Bottom Line

Timing. We have four projects — Solazyme, POET-DSM, Abengoa and GranBio expected in the first half. Generally, projects in this space have been beset by delays — usually amounting to a few months — in some cases, up to two years from the first original completion date.

Slowdowns? Commissioning periods have been generally slower than seen in typical chemical plants – though there have been exceptions of late such as Myriant and Elevance.

But overall, by mid-year we should start to have a strong idea of how the year looks.

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