Transcript Slide 1

Lignocellulose-based Ethanol & Chemicals, Vancouver, January 13, 2009
Challenges in a fully integrated biorefinery – Scaling up the Science
David Turner, Lignol Energy Corporation
Caution concerning forward looking statements
Certain statements contained in this presentation may constitute "forward-looking
statements". When used in this presentation, the words "may", "would", "could", "will",
"intend", "plan", “anticipate", "believe", "estimate", "expect", “investigate”, ”looking
at” as they relate to Lignol or its management, are intended to identify forwardlooking statements or information. Such statements or information reflect Lignol’s
current views with respect to future events and are subject to certain risks,
uncertainties and assumptions. Many factors could cause Lignol’s actual results,
performance or achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by such forwardlooking statements or information, including among other things, those which are
discussed under the headings "Risk Factors" and elsewhere in documents that Lignol
files from time to time with securities regulatory authorities. Should one or more of
these risks or uncertainties materialize, or should assumptions underlying the
forward-looking statements or information prove incorrect, actual results may vary
materially from those described herein as intended, planned, anticipated, believed,
estimated or expected. and does not assume any obligation, to update such forwardlooking statements or information.
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Presentation Overview
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Lignol Introduction
Technology description
Commercialization plans
Scale up considerations
Challenges & Opportunities
Lignol Introduction
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Emerging cellulosic ethanol company
BC, Canada based, public company
LEC:TSX-V
36 employees
Offices in Burnaby, BC and Berwyn, PA
$20 million in equity raised
Government funding to date >$13 million
$30 million of DOE funding pending for Colorado plant
Promising corporate relationships, including Suncor,
Weyerhaueser, Huntsman, HA International
Lignol’s Technology Position
• Lignol’s solvent-based pre-treatment technology originally developed
by General Electric (GE),subsequently commercialized by Repap for
pulp mill applications (Alcell)
– Approximately $100 million spent commercializing technology
• Lignol acquired and modified the pre-treatment process for
biorefinery production of cellulosic ethanol & biochemicals
– Integrated proprietary process capabilities to convert the cellulose to ethanol and
capture co-products e.g. Lignin
ADVANTAGES:
• Rapidly converts cellulosic biomass into fermentable sugars with
substantially lower enzyme costs
• Improved plant economics through valuable biochemical co-products
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Lignol’s Technology
High-yield ethanol production
and high-value biochemicals
(High Purity HP-L™ Lignin)
HP-LTM LIGNIN
Separation
Lignol
Extraction
Process
Extractives &
biochemicals
Enzymes
&
Yeast
Distillation
Saccharification
& Fermentation
Distillation
ETHANOL
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Process Features and Benefits
• Process is a true biorefinery with multiple products
such as CE, HP-LTM lignin and furfural +++
– Process economics enhanced by multiple revenue streams –
process can be economic at smaller scale
• Well-proven organosolv pre-treatment process
provides very clean cellulose substrate and natural,
high purity lignin (HP-LTM)
– Enzymatic saccharification enhanced by clean substrate – 50%
less enzyme loading, faster bioconversion
– High value HP-LTM, compared with other “lignins”
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Lignol’s “Clean” Pretreated Biomass
Lignol’s
Pretreated
Wood Substrate
~95% Fermentable
Components
Hydrolysis is many
times more effective
with same enzyme dose
Other leading pretreatment technologies:
Dilute-Acid-Pretreated
Corn Stover
Steam-Exploded Wood
Only ~60% Fermentable Components
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Process Features and Benefits
• Pretreatment proven on wood-based feeds and
agricultural materials
– Versatile process with few feed-related limitations
• Co-products displace petrochemicals
– Major GHG emissions reductions beyond just transportation
fuel benefits
• Extensive demonstration and piloting facilities
provide design data
– Technology is “demo-ready”
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Lignol’s Integrated Pilot Plant
• Capacity: 1 tonne per day (dry basis)
– Fully integrated mini-biorefinery
– 100,000 l/yr ethanol
• Feedstocks: Hardwood & softwood chips,
agricultural residues
• Products: Ethanol, HP-LTM lignin, furfural,
other chemicals
• Operation: 24/7 in campaigns
• Controls: Full Distributed Control Systems, 80
loops, data-logging, full lab support on-site
Lignol’s Integrated Pilot Plant
Lignol’s Demonstration Biorefinery
• Capacity: Nominally 100 tonnes per day (dry
basis)
– Fully integrated biorefinery to be built in
Colorado
– 10 million l/yr of ethanol
• Feedstocks: Local aspen and beetle-killed
lodgepole pine (agricultural residues in future)
• Products: Ethanol, HP-LTM lignin, furfural
• Operation: 24/7 , 300-350 days per year,
start-up 2010/11
• Total project cost: ~$80 million
Lignol’s Commercial Biorefinery
• Capacity: Nominally 1000 tonnes per day (dry
basis)
– 100 million l/yr of ethanol
• Feedstocks: Locally available wood and/or ag.
residues
• Products: Ethanol, HP-LTM lignin, furfural,
biochemicals
• Operation: 24/7 , 350 days per year
• Total project cost: ~$300 million
• Location: TBA
Scaling up the Science
• Pilot plant critical to data generation
• Success of pilot plant critical to establishing magnitude
of scale up to demonstration or commercial plant
• Process risk versus equipment scale up risk
• Step-wise process is slow and requires multiple rounds of
financing
• Management of technology risk
– Proceeding cautiously vs. urgency to get to the finish
• Scale up factoring 10X risk? Or 100X risk?
• Financial risk - $10MM, $80MM, $300MM
Get the basics right
Ooops!
Scaling up the science
• Knowledge creation has to shift from science to
engineering through appropriate stages of scale-up
– Feed handling – Substantial volumes of material
need to be handled
– Batch versus Continuous Process
– Connections between process stages, buffer storage,
transportation of solids, fluids and slurries, recycle
of streams, control of the process
– In situ enzyme production
– Separate or simultaneous hydrolysis & fermentation
– VOC (Volatile Organic Compound) assessment
– Proof of plant economics
Design considerations
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Feed characteristics
Process optimization considerations
Lignin recovery and quality
Co-products
Process Optimization
Feedstock
Process/equipment
design
Enzymology
Ethanol & Biochemical
yields, functionality &
value
Plant Location/ Variable Feed characteristics –
= plant design needs to be robust and flexible
• Plant locations are feedstock unique: multiple species with
regional variations
• Management of feedstock availability, seasonality, logistics
• Age of trees impacts relative amounts of heartwood and
sapwood; sawmill chips vs. whole tree chips
• Biochemical output is feedstock dependent – lignin
functionality is species and process condition dependent =
application and value differences
Biochemicals – need to be accepted as value added
specialty chemicals and not waste products
• Represent significant revenue opportunity
• Can substantially increase GHG reductions – to
the extent that outputs can replace petroleum
derivatives
• Quality and quantity dependent on feedstock
and process conditions
• Additional process steps need to be developed
for each bioproduct
• Market acceptance hurdles
Lignin Macro-molecule:
Native lignin is a matrix polymer which the Lignol process
cleaves into smaller fragments with minimal condensation
preserving functionality
Representation of a theoretical lignin macro-molecule
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Value proposition for HP-LTM:
• A unique green, renewable, sustainable GHG positive
family of specialty chemicals tailored to meet specific
chemical/functional application requirements
• Proven functional benefits in a number of polymeric
systems incl PF resins
• Material is within generally accepted tolerances of
composition and purity for industrial products =
reproducibility
Lignol HP-LTM - color variations:
HP-LTM Lignin vs. other commercial lignins:
Properties
HP-LTM
Kraft lignin
Sulphite lignin
Ash
<0.5%
3%
~2.5%
Carbohydrates
<1%
Low
Up to 50%
Sulphur
<0.5 ppm
~ 1.6%
>6%
H2O Solubility
Hydrophobic
Low
~ 100%
Polar Solvent Solubility
Very high
Medium
Medium
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Applications identified for Alcell Lignin provided
basis for initial application screening
PF resin partial & total substitute:
• Oriented Strand Board (OSB) binder
• Molding compound
• Friction material green strength binder
• Rubber tackifiers
• Foundry mold binders
• Plywood adhesive
• Saturating resins - decorative laminates
Other:
• Raw material for production of industrial grade
carbon fiber
• Activated carbon source
• Feed and fuel pellet binder
• Soil enhancer
• Slow release matrix
• Raw material for production of aromatics
Antioxidants:
• Rubber compounding
• Lubricants additives
• Metal working fluids, wire and tube drawing
Sulphonated (water soluble) lignins:
• Concrete admixtures, set retardants, superplasticizers
• Emulsifying agents in asphalt coating materials
• Dye dispersants
• Agricultural dispersants, surfactants
Resins, Plastics & Coatings:
• Epoxy packaging resins -integrated circuit boards
• Isocyanate resin binders
• Photo-degradable polyethylene sheeting
(agricultural mulch)
• Recyclable moisture-barrier paper sacks
• Recyclable roll wrap in printing papers
Research into physiologically-active and
functional additives:
• Poultry feed
• Swine feed
• Calf feed
Challenges & Opportunities
• Continuity of financing from lab to pilot to
demonstration to commercial plants – particularly in
current economic climate
• Opportunity to be an expert in new sustainable,
renewable biochemicals
– Availability of financing for development and
commercialization of biochemicals
– Identification of biochemical application development
partners and research centers of excellence
• Alternatives for C5 sugar utilization