9Optimum Reactor Temperature Reactor Temperature is 480 °C
10Plant Location Build the plant in Iowa Centrally located in MidwestResearch currently being done in Iowa regarding switchgrass20 acres of land for biofuels plantCost of land in Iowa is $5140 per acreTotal cost of land for the plant is $102,800
11Transportation CostsTransportation is $0.10 per ton switchgrass per milePlant based on 100 tons/hr switchgrass feedTransportation cost is $860 per hr
13Hydrotreating Overview Reacts hydrogen with bio-oil to remove oxygen.Hydrogen is produced from steam reformer.Steam reformer uses NCG and additional methane as feed.
14Hydrotreating Economic Summary Equipment Cost(in millions)Pyrolysis unit$1.20Hydrotreater$5.00Steam Reformer$0.69Land (acres)$0.10Total Equipment Costs$6.99Direct CostsPurchased equipmentPurchased-equipment installation$3.29Instrumentation and controls$2.52Piping$4.76Electrical systems$0.77Buildings$1.26Yard improvements$0.70Service facilities$4.89Total Direct Costs$25.17Indirect CostsEngineering and supervision$2.31Construction expenses$2.87Legal expenses$0.28Contractor's fee$1.54Contingency$3.08Total Indirect Costs$10.07Fixed Capital Investment$35.24Working Capital$6.22Total Capital Investment$41.47TCI = $41.5 millionManufacturing Cost = $157.7 million/yrNet Profit first year = -$13.73 millionROI = -0.33
15Break Even Points Analysis Break even Oil Price: $119/bblBreak even Feed Rate: 165 ton/hr
16Hydrotreating: Optimized Process Raise product price to $119/bblIncrease scale to 500 tons/hr feedOptimized Net Profit: $200 millionOptimized ROI: 4.8Conclusion: Not significant ROI
17Conclusion from Hydrotreating Method Not likely to be profitable.Need to operate at a large scale because of high capital investment.No significant factor that can be manipulated.Efficiency of process is not likely to be improved.
19Catalyst Chosen: HZSM-5 Zeolite Produces mostly aromatic products.Produces an organic and aqueous layer which is easily separable.Stable at high temperatures.wireframe representation of the structure of zeolite ZSM-5, where the tetrahedral (silicon or aluminum) atoms sit at the vertices and the red wires represent Si-O-Si or Si-O-Al linkages. The dotted blue lines show the boundaries of the unit cells.
20Octane Numbers of Upgraded Oil Chemical% wt. fractionOctane #Benzene1.2101Toluene3.1114Ethylbenzene2.6115.51,3-dimethylbenzene9.4145Propylbenzene0.21271,2,4-trimethylbenzene11.8136Butylbenzene0.397.52-methylphenol3.3---1-Methyl-4-benzene2.41,2,3,5-tetramethylbenzene0.5100Naphthalene6.2Not a component in today’s liquid fuel.Methylnaphthalene9.21-ethylnaphthalene3.42,3-dimethylnaphthalene6.3MethylanthraceneDimethylanthraceneComponents found in today’s fuel.High octane numbers.Components NOT found in today’s fuel.Niche market for Naphthalene.
21Boiling Points of Upgraded Oil Chemical% wt. fractionBoiling Point (oF)Benzene1.2176.18Toluene3.1231.1Ethylbenzene2.6277.11,3-dimethylbenzene9.4358Propylbenzene0.2318.61,2,4-trimethylbenzene11.8336.9Butylbenzene0.3361.92-methylphenol3.3359.31-Methyl-4-benzene2.43941,2,3,5-tetramethylbenzene0.5388.4Naphthalene6.2424.3Methylnaphthalene9.2472.31-ethylnaphthalene3.4496.92,3-dimethylnaphthalene6.3511.3Methylanthracene646.1DimethylanthraceneExpected to be above the methylantracene.Can separate components based on boiling points.Can remove Benzene and Toluene if desired.
22Catalytic Deoxygenation Process Units = Metric Tons/hrTotal Energy Produced – Total Energy Required = Energy Remaining – = MJ
23Catalytic Deoxygenation Economics Equipment Costs(in millions)Pyrolysis unit$1.20Cat Reactor$0.67regenerator$1.63storage tank$0.04separator$0.07land (acres)$0.10Total Equipment Cost$3.72Direct CostsPurchased equipmentPurchased-equipment installation$1.75Instrumentation and controls$1.34Piping$2.53Electrical systems$0.41BuildingsYard improvements$0.37Service facilities$2.60Total Direct Costs$13.39Indirect CostsEngineering and supervision$1.23Construction expenses$1.52Legal expenses$0.15Contractor's fee$0.82Contingency$1.64Total Indirect Costs$5.36Fixed Capital Investment$18.75Working Capital$3.31Total Capital Investment$22.06TCI = $22.91 millionManufacturing Cost = $121 million/yrNet Profit first year = -$3.24 millionROI = -0.15
24Break Even Points Analysis Break even Oil Price: $110/bblBreak even Feed Rate: 66 tons/hr
25Upgrade Bio-Oil using Cat. Deox. Break even Catalyst Price: $996/tonCurrent Price: $1320/tonWe believe that the catalyst price will decrease when produced in bulk.
26Alternate Scenarios Scenario 0: original scenario Scenario 1: Decrease amount of catalyst used from 17 g cat/g oil/min to 8.5 g cat/g oil/minScenario 2: Regenerate catalyst 10 times instead of 2; run on 30 minute cycles instead of hour cycles.Scenario 3: Increase Yield of Product Oil to 23 wt %.Scenario 4: Process is separate from refinery; add separation process and transportation costs
27Comparing Alternate Scenarios: Oil Price Want to sell oil for cheapest price.Scenarios 1 and 2 are best.
28Comparing Alternate Scenarios: Plant Size Plant size is similar across all scenarios except 4.
29Comparing Alternate Scenarios: Catalyst Price Want to breakeven with highest catalyst price.Scenario 2 is best.
30Catalytic Deoxygenation: Optimized Process Use Scenario 1 as basisIncrease oil price to $110/bblIncrease scale to 500 ton/hrOptimized Net Profit: $170 millionOptimized ROI: 7.8Conclusion: Significant ROI
31Conclusions from Scenarios Scenarios 1 & 2 are most economical.Scenario 1: Use less catalyst.Scenario 2: Use catalyst for more cycles.Optimized scenario gives reasonable ROIShould combine process with refinery.Want to increase selectivity of catalyst.
32Components of Upgraded Bio-Oil Chemical% wt. fractionOctane #Benzene1.2101Toluene3.1114Ethylbenzene2.6115.51,3-dimethylbenzene9.4145Propylbenzene0.21271,2,4-trimethylbenzene11.8136Butylbenzene0.397.52-methylphenol3.3---1-Methyl-4-benzene2.41,2,3,5-tetramethylbenzene0.5100Naphthalene6.2Not a component in today’s liquid fuel.Methylnaphthalene9.21-ethylnaphthalene3.42,3-dimethylnaphthalene6.3MethylanthraceneDimethylanthraceneWant to increase selectivity for blue and purple components because they are found in today’s fuel.
33Proposed ExperimentsDetermine how many times can you regenerate the catalyst for a set run time.Determine minimum amount of catalyst that can give a desirable product.Increase selectivity of catalyst for liquid product.