1. 1.6.1.2 Feedstock Supply Chain Analysis Jacob J. Jacobson Idaho National Laboratory April 7 - 9, 2011 This presentation does not contain any proprietary, confidential, or otherwise restricted information

2. Project Goal Statement 2 Develop the tools and methodology to be able to design and analyze feedstock supply systems in order to determine the best path forward to generate biofuels that are cost competitive with conventional liquid fuels. This requires: Understanding current supply systems Identifying barriers Mapping out solutions to address those barriers Tracking progress Designing new supply systems that will meet the cost, volume, and quality targets.

3. 3 Quad Chart Overview Project start 2005 Project end 2012 Percent complete 70% Ft-M Overall Integration Total project funding – $800,000 Funding received in FY09 – $150,000 Funding for FY10 – $475,000 ARRA Funding – $0 Timeline Budget Barriers Oak Ridge National Laboratory National Renewable Energy Laboratory Pacific Northwest National Laboratory Argonne National Laboratory Enersol Resources US Forest Service Mississippi State University University of Wisconsin UC Davis Partners

4. Project Overview Support the development of MYPP goals and updates Support program to meet annual DOE Joule Milestones Develop annual State of Technology assessments that capture yearly improvements and document progress of lab, industry, and university research towards achievement of annual Multi-Year Program Plan (MYPP) targets Develop Design Reports for Herbaceous and Woody Supply Systems Identify Barriers to economic and efficient supply of on- spec feedstocks Provide Logistics Support other national laboratories in meeting DOE goals. 4

5. 1 - Approach 5 Collaborate closely with the engineering and science tasks at INL, universities, industry, and other national laboratories Develop tools and methodologies to analyze the cost and performance of supply systems with an understanding of the data and research being performed Collaborate closely with other platforms within the DOE OBP to understand their requirements and ensure the sharing of data between platforms Provide support to other DOE OBP programs and projects requiring feedstock logistic analyses Integrate design improvements achieved over years of integrated research and analysis and necessary to meet DOE goals.

6. 6 2 - Technical Accomplishments Established the Feedstock Platform MYPP Targets for Biochemical, Gasification, and Pyrolysis Conversions for 2010 thru 2012 Verified through our analysis that the 2010 Joule Milestones for Feedstock Logistics were met Developed the State of Technology supply system designs and cost estimates for Herbaceous and Woody biomass supply systems for 2009 and 2010 that provide an on-spec material to conversion platforms Developed Design Reports for Herbaceous and Woody Supply System and they are available for review Provided logistics data and analyses to laboratory partners for the Biomass Scenario Model, Life Cycle Analysis, and other biofuel analyses.

7. 7 2 - Technical Accomplishments 2010 Update of MYPP Cost Projections Goal: Establish updated design and cost targets for 2009 through 2012 for Biochemical, Thermochemical, and Pyrolysis Conversion Platforms based on annual research objectives across the feedstock supply system.

8. 8 2 - Technical Accomplishments 2010 Joule Milestone Demonstrate a modeled dry herbaceous feedstock logistics cost of $37.80 per dry matter (DM) ton in 2007 $U.S. Goals by Quarter: Qtr 1: Update the modeled supply system equipment economic cost, performance parameters, efficiencies, and capacities. Mapped out research tasks needed to deliver a revised modeled cost for 2009 ($46.15/ton) Qtr 2: Achieve a grinder capacity improvement of 8.8 ton/hr (17.2 to 26) using 470 kilowatts of power Qtr 3: Achieve a biomass bulk density improvement of 3 lb/ft 3 (9 to12) Qtr 4: Achieve a storage dry matter loss of 8% or less (10 to 8). Achieve a modeled dry herbaceous feedstock logistics cost of $37.80 per DM ton (excluding grower payment, in 2007$).

9. 9 2 - Technical Accomplishments 2010 Joule Milestone – Q1 Goal: Develop the biomass supply system model to simulate the entire supply logistics system with baseline machine cost and performance attributes. Using the model help identify process efficiencies necessary to achieve cost milestones. Baseline: Conventional Bale Corn Stover Feedstock Supply System.

10. 10 2 - Technical Accomplishments 2010 Joule Milestone – Q2-4 Goal: Using data generated from research in grinder improvements, densification, and moisture management, determine the improvements in supply system logistics cost. Results: Grinder capacity improvement of 8.8 ton/hr (17.2 to 26) Bulk density improvement of 3 lb/ft 3 (9 to 12) Reduced dry matter loss to 8% or less (10 to 8). Cost Summary Table ($/DM ton) 2009 SOT2010 SOT (Joule) Total Harvest & Collection14.2113.79 Total Transportation10.599.02 Total Preprocessing14.0111.47 Total Storage & Queuing7.353.52 Total46.1537.80

11. 11 2 – Technical Accomplishments Annual State of Technology Report Develop the annual State of Technology supply system designs and cost estimates for Herbaceous and Woody biomass supply systems for 2009 and 2010 Conventional Woody Feedstock Supply System Cost Summary Table Cost Summary Table($/DM ton) 2009 SOT2010 SOT Total Harvest & Collection22.3021.30 Total Transportation12.5012.00 Total Preprocessing13.6013.50 Total Storage & Queuing22.6520.60 Total71.0567.50 Conventional Woody Feedstock Supply System Design

12. 2 - Technical Accomplishments- Design Reports Develop feedstock supply system design reports Herbaceous Design Report Woody Biomass Design Report Design reports provide a design basis that provides sufficient attributes and data to evaluate the efficacy of the designs The design reports established that we can meet the 2012 objectives with conventional supply systems but need the uniform format to meet future targets.

13. 13 2 - Technical Accomplishments 5-20 miles 50-150 miles 150-300 miles Addressing Feedstock Logistics Barriers and Costs via a Depot Supply System Commodity Attributes National/Global Markets Sustainable Standardized Quality Stable

14. 14 2 - Technical Accomplishments Logistics Analysis Support to Lab Partners Supplying the feedstock logistics costs to the Biomass Scenario Model being developed at NREL Supplying the supply system designs and equipment data to ANL and NREL for Life Cycle Analysis Provided analysis support to DOE OBP on the Biorefinery Sizing white paper Collaborating with NREL and PNNL on establishing feedstock specifications for conversion technologies.

15. 15 3 - Relevance The Biomass Logistics Supply System is a critical component of the overall biofuel production system. This work helps determine how we can deliver biomass to the conversion facilities at a cost that can make biofuel competitive with conventional liquid fuels. SOTs: Annually assess supply system costs associated with using current state of technology (SOT) equipment to collect and deliver biomass feedstocks to the conversion facility. MYPP: Develop designs and cost targets for the different conversion platforms based on projected advancements from research in feedstock logistic equipment and processes. Collaborate with the engineering and science tasks, provide systems analysis that identifies barriers and quantifies improvements in the supply system cost and quality targets. Analytical Services on supply system logistics to other national laboratories, universities, and industry partners.

16. 16 4 - Critical Success Factors The success of the analysis work has centered around the daily collaboration with the engineering and science research at INL Ensures that the data being developed from the research is rapidly available for the systems analysis Ensures the analysis work identifies what barriers and elements in the supply system that are significantly impacting the cost and performance. We have begun to develop joint milestones with the other national laboratory programs. It is important to move to more milestones that involve multiple programs. Widely disseminate data and analysis results as it becomes available.

17. 17 Future Work Analysis is limited by the data available. Future work will be centered around continuing to develop the necessary data, functional relationships, and algorithms through INL research as well as collaboration with universities, industry partners, and other national laboratories. Continue the collaboration with the feedstock production and conversion platforms to improve our understanding of impacts of feedstock characteristics on the conversion platforms and then determine where in the supply chain we can help improve or mitigate those effects through improved design. Improve the systems analysis by moving from a generic set of system average estimates to regional based parameters such as sustainable removal yield, transportation, cropping patterns, and weather.

18. 18 Summary Approach The feedstock supply systems analysis work is a vital cog in the overall research program at INL and for OBP. It uses the data and research from the laboratory, universities, industry partners, and other national laboratories to identify barriers, establish current cost targets, and determine future research areas. Accomplishments The supply system logistics analysis has assessed the current SOT designs and cost targets, developed MYPP cost targets for 2010 through 2010, has identified barriers and paths forward, and is supporting analysis tasks at other national laboratories.

19. 19 Additional Slides

20. 20 Publications and Presentations Inman, D., N. Nagle, J. Jacobson, E. Searcy, A.E. Ray, “Feedstock Handling and Processing Effects on Biochemical Conversion to Biofuels,” Biofuels, Bioproducts and Biorefining, Volume 4, Issue 5, September 2010. Grosshans, R.R., K.M. Kostelnik, J.J. Jacobson, “Sustainable Harvest for Food and Fuel,” Journal of the Idaho Academy of Science, April, 2008. Webb, Erin, Shahab Sokansanj, Sam Tagore, Jacob J. Jacobson, “Programmatic Requirements for Modeling and Analysis of Feedstock Logistics.” American Society of Agricultural and Biological Engineers, Summer Meetings, Pittsburg, June 2010. Jacobson, Jacob J., Erin Searcy, “Uniform-Format Feedstock Supply System Design for Woody Biomass,” 2010 AICHE Spring Meeting and 6 th Global Congress on Process Safety, American Society of Chemical Engineers, March 2010. Jacobson, Jacob J., Erin Searcy, “Comparison of supply system costs of forest residues when comminution is performed a landing vs. at biorefinery,” Society of Industrial Microbiology Annual Conference, April 2010.

21. 21 Biomass Logistics Model Interface

22. 22 Biomass Logistics Model Output

23. 23 Biomass Logistics Model Output The logistics model can run sensitivity runs that can be output to Excel for plotting and comparative analysis

24. 24 Biomass Logistics Data Sets State Road Data Labor Data Equipment Data