1. CHEMICAL$ & Fuels from Biomass Norm Olson P.E. Program Director, BECON Facility Biomass Energy CONversion Iowa Energy Center www.energy.iastate.edu

2. The Iowa Energy Center’s Mission Broad Scope – complex connections to many issues – focusing on Iowa – energy efficiency – renewable energy – education all groups all ages all sectors of the economy Broad Scope – complex connections to many issues – focusing on Iowa – energy efficiency – renewable energy – education all groups all ages all sectors of the economy

3. History Created by the 1990 Iowa Energy Efficiency Act – Funded by surcharge on intrastate electric & gas sales – Conducts and sponsors demonstration, education, training and research through partnerships and competitive grants with Iowa’s colleges, universities & private non- profits Created by the 1990 Iowa Energy Efficiency Act – Funded by surcharge on intrastate electric & gas sales – Conducts and sponsors demonstration, education, training and research through partnerships and competitive grants with Iowa’s colleges, universities & private non- profits

4. Twin Pillars Energy Efficiency $7.5 billion – Res., Comm., Inds. 20% savings in all buildings $1.5 billion annual savings $9 billion construction activity 64,000 person-year new jobs Alternative Fuels NH3 fuel $5.8 billion locally produced fuels $3 billion fuel production facilities # New jobs? Biorefinery $120 billion new economic output $30 billion new jobs (25%) 425,000 new jobs (manufacturing)

5. –energy efficient building systems –Demonstration, training and research –tours –meeting/class space Demonstration/Training/Research Facilities Energy Resource Station (ERS)

6. Demonstration/Training/Research Facilities BECON (Biomass Energy CONversion)  renewable energy/ biomass to fuels and chemicals demonstration and research tours meeting/class space  renewable energy/ biomass to fuels and chemicals demonstration and research tours meeting/class space

7. World Energy Facts

8. Oil Experts See Supply Crisis in Five Years International Energy Agency July 10, 2007

9. April 27, 2007 172 Militants Planning Attack on Oil Fields Arrested in Saudi Arabia Friday, April 27, 2007

11. Crude Oil Reserves

12. Compiled from “Worldwide Look at Reserves and Production,” Oil & Gas Journal, Vol. 104, No. 47 (December 18, 2006), pp. 24-25. World Crude Oil Reserves Jan 2007 1,317.4 billion barrels 7,749 quads (Coal: 22,171 quads) (NG: 5.500 quads) OPEC Share (68%)

13. Natural Gas Reserves AP updated 9:26 a.m. CT, Wed., Jan. 7, 2009 KIEV, Ukraine - Russia shut off all gas supplies to Europe through Ukraine on Wednesday — leaving more than a dozen countries scrambling to cope during a winter cold snap. Prime Minister Vladimir Putin publicly endorsed the move and urged that international observers be brought into the energy dispute.

14. World Total: 5500 Tcf, 5500 quads (Petroleum: 7749 quads) (Coal: 22,171 quads) Source: PetroStrategies, Inc. (3.3%)

15. Coal Reserves

16. USDoE - EIA, unpublished data, Coal Reserves Database (April 2007). World Energy Council, 2004 Survey of Energy Resources, Eds. J. Trinnaman and A. Clarke (London, UK: Elsevier, December 2004). World Recoverable Coal Reserves, Jan 2003 997.7 billion short tons 22,171 quads Oil: 7,749 quads NG: 5.500 quads Organisation for Economic Co-operation and Development

17. World Coal

18. Zero Emission Coal

19. Enough Biomass? 2002 ConsumptionQuads Petroleum38.11 Natural Gas23.37 Coal22.18 Nuclear 8.15 Renewable 5.25 Corn potential (including stalk, 10 bil. bu.) 8.40

20. ~ 8 Quads @$50, 12 Quads possible in 20 years

21. The Ideal Alternative Fuel Can be produced from any raw energy source (i.e. wind, solar, biomass, coal, nuclear, hydro etc.) Is cost effective Has significant storage and delivery systems already in place Is environmentally friendly Can be used in any prime mover (i.e. diesel engines, fuel cells, SI engines, gas turbines, etc.) Has a proven, acceptable safety record Produced in the U.S.

22. Ammonia Basics 1 Ammonia (NH3) can be produced from any raw energy source, including all fossil, renewable and nuclear sources. Ammonia is cost competitive with gasoline as a transportation fuel Ammonia has extensive, worldwide transportation and storage infrastructure already in place Ammonia is very environmentally friendly when used as a transportation fuel and produces only N2 and H20 at the tailpipe with low-cost emissions controls. Ammonia has been successfully demonstrated in SI engines, CI engines, and fuel cells.

23. Ammonia Basics 2 High U.S. cost is due to high cost of U.S. natural gas The U.S. imported over 50% of it’s nitrogen fertilizer for the first time in 2004 Ammonia high cost partially due to highly seasonal nature of use (inefficient use of infrastructure) Ammonia has been produced from coal in Beulah, North Dakota for decades. China has huge coal to ammonia capacity.

24. Dakota Gasification Over 20 years of producing natural gas, ammonia and other valuable chemicals from US coal. Al Lukes - $4.50 Nat. Gas from new coal gasification plants.

25. Fuel Costs June 2003 Chemical Market Reporter* $/MMBtu Ammonia - $200/metric ton* $10.01 Gasoline - $1.20/gallon $10.52 Methanol - $0.79/gallon* $13.68 Ammonia - $270/short ton $14.86 Ethanol - $1.25/gallon* ($2.70, 9/05) $16.44 Gasoline - $2.00/gallon $17.54 Wind - $0.035/kwh x 2 (electrolyzer) $20.51 Gasoline - $2.50/gallon $21.92 Ethanol - $2.70/gallon (9/05) $35.51

26. Future Compatibility Hydrogen + Nitrogen Ammonia Storage & Delivery – Pipeline, Barge, Truck, Rail Stationary PowerFertilizerTransportation

27. Ammonia Pipeline

28. Ammonia Storage & Transport

29. Freedom Car Targets w/ 2005 NH3 Comparison 2005 Parameter Units 2007 2010 2015 NH3 Spec. Energy kWh/kg 1.5 2 3 3.0 Energy Density kWh/L 1.2 1.5 2.7 2.7 Storage Cost $/kWh 6 4 2 3.1 Fuel Cost $/gal. Gas equiv 3 1.5 1.5 1.7* *$280/ton ammonia

30. High “energy density” in ammonia and ammonia solutions

31. Economic Impacts Petroleum Imports (2003): ~ 13 million bpd = $118 b/year @ $25/bbl, $236 @ $50, $354 b@$75, $472 b @$100 2006 U.S. Trade Deficit - $763 billion 2003 Gasoline Consumption – 8,756,000 bbl/day 15.3 x 10 15 Btu/year = 850 million ton/year ammonia 1250 new plants @ 650,000 ton/year each $562 billion investment @ $450 million/plant 375,000 new jobs $5 billion new tax revenue/year (employees only)

32. Back to BECON

33. BECON

34. BECON Location Airport Road U.S. 30 Elwood Drive I-35 To Des Moines, I- 80 Lincoln Highway Ames, Iowa Nevada, Iowa I-35 To Minneapolis, I-90 BECON Iowa Energy Center

35. BECON

36. The Ideal Biomass System Soil tilth improved – no erosion loss, increased soil organic carbon content Nutrients and micronutrients returned to soil Fertilizer made from plant residue in same field Use of currently available planting, harvesting storage techniques No fossil fuel use Cost effective Local economic development Biorefinery concept – multiple products (food, chemicals, fuel additives) energy efficient, low air/water emissions, low water use

37. Ideal Annual Crop System – Silage Harvest

38. Ideal Annual Crop System – Silage Storage

39. Wisconsin Ideal Annual Crop System – Cover Crop www.leopold.iastate.edu/.../cover.htm

40. Local Processing – All nutrients (PKN, micronutrients) returned to soil. Closed loop. Ideal Annual Crop System – Processing

41. Nutrients University of Nebraska - Nitrogen is one of sixteen chemical elements essential for plant growth (1). Green plants must be able to assimilate all sixteen nutrients to carry on cell growth and metabolic activities. Plants get oxygen (O), carbon (C), and hydrogen (H) from the air and water, the other nutrients are taken from the soil. Nitrogen (N), phosphorus (P), potassium (K), are sometimes referred to as the primary nutrients while calcium (Ca), magnesium (Mg), and sulfur (S) are referred to as secondary nutrients. Another seven essential nutrients are taken up in much smaller quantities and are collectively referred to as micro-nutrients. These are: boron (B), chlorine (Cl), copper (Cu), iron (Fe), manganese (Mn), molybdenum (Mo), and zinc (Z). Table 1 lists the total crop removal of soil nutrients to produce a 150 bushel corn crop. (1) Cobalt has not been proven essential for higher plant growth but nodulating bacteria need it for fixing atmospheric nitrogen in legumes. It therefore sometimes will appear in a listing of essential nutrients. Table 1.TotalCrop Removal, lb/acre of EssentialSoilNutrients by a 150 bushelcorn crop. Nitrogen 200Phosphorous (P2O5) 85Potassium (K2O) 200 Calcium 42 Magnesium 44 Sulfur 25 Zinc 0.15 Iron 0.10 Manganese 0.08Boron 0.06 Copper 0.05 Molybdenum 0.03 Chlorine unknown Table 1.TotalCrop Removal, lb/acre of EssentialSoilNutrients by a 150 bushelcorn crop. Nitrogen 200Phosphorous (P2O5) 85Potassium (K2O) 200 Calcium 42 Magnesium 44 Sulfur 25 Zinc 0.15 Iron 0.10 Manganese 0.08Boron 0.06 Copper 0.05 Molybdenum 0.03 Chlorine unknown

42. Outreach A cooperative education/training agreement, led by DMACC, has been developed with all 15 Iowa Community Colleges Nearly 8000 people have either toured BECON or heard the BECON presentation since 1999. Visitors from most states and over 30 foreign countries BECON is a National Biodiesel Training Center Numerous state and Federal legislators, Presidential candidates and former U.S. President George Bush have visited BECON

43. Conversion Systems Biomass Conversion Systems Feedstock Processing Thermochemical Conversion Biological Conversion

44. Anaerobic Digestion/Composting Feedstock Processing High Solids Unit (Composting ) Low Solids Unit Scrubber Methane to Engine Generator Or Ammonia

45. Anaerobic Digestion Anaerobic Digester Nutrients Corn Stover Leachate Covered Digester Dewatering Scrubber Methane to Engine Generator Solids

46. Alcohol Production I Feedstock Processing Distillation Storage Fermentation Ethanol “Ethanol” Residue Saleable By-product C 6 H 12 0 6 yeast enzymes 2C 2 H 5 0H + 2CO 2

47. Distillation Ethanol Residue Saleable By-product Drying/Vapor Recovery Multi-farm Storage & Fermentation Harvest, acidification, & inoculation High-sugar energy crop Local Processing Center Alcohol Production II C 6 H 12 0 6 yeast enzymes 2C 2 H 5 0H + 2CO 2

48. Gasification Feedstock Processing To Engine Generator To Ash Disposal Gasifier Scrubber Syn-gas

49. Pyrolysis Feedstock Processing Waste Disposal PyrolysisRefining Syn-oil Bio-Chemicals

50. Biodiesel Production Chemical Reactor Vegetable Oils Alcohol Glycerin Biodiesel Vegetable Oils + Alcohol Biodiesel + Glycerin catalyst

51. Supercritical Fluids High Pressure Reactor Biomass High Pressure Fluid Product

52. Supercritical Fluid Chart

53. ReformerFuel Cell Power Conditioner Fuel Electricity High Temperature Heat Fuel Cell

54. FuelAir Electricity Medium Temperature Heat Internal Combustion Engine-Generator

55. Generator TurbineCompressor Electricity Fuel Air High Temperature Heat Micro-Turbine

56. Electricity Medium Temperature Heat Fuel Air Steam Turbine Generator Boiler Steam Turbine-Generator

57. Combined Systems Greenhouse Anaerobic Digestion Unit Fermentation Unit Fuel Cell Unit Electricity Heat CO 2 Dairy Facility

58. Biorefinery Source: NREL

59. Iowa Biorefinery

60. Biorefinery

61. Bio-Refinery Model

62. MGP - Lakota

63. Biomass Feedstocks Agricultural Residues Food Processing Wastes Livestock Production Wastes Municipal Solid Waste Obsolete Seed Corn Wood Waste

64. Feedstock Costs Cost of corn stover ~3 cents/lb. ($60/ton) Corn @ $3.50/bushel ~7 cents/lb Consists mainly of C, H and O Cost of petroleum ~ 8 cents/lb ($25/barrel) 16 cents/lb ($50/barrel) 24 cents/lb ($75/barrel) 32 cents/lb ($100/barrel) 40 cents/lb ($125/barrel) 48 cents/lb ($150/barrel) Consists mainly of C and H Organic chemicals are mainly C, H

66. Feedstock Availability 20-30 million tons of corn stover annually in Iowa Iowa Annual Fossil Fuel Use (EIA, 1999) 23.4 million tons of coal 5.1 million tons of natural gas 4.7 million tons of gasoline 3.0 million tons of diesel fuel 45 million tons of “Big Three” organic chemicals (ethylene, propylene, benzene) used in US annually.

67. Soil Tilth No till – the key to healthy soil? Partial stover removal Nutrients can be returned Streaker

68. Biomass Components Cellulose Hemicellulose Lignin Starch Sugar Oil Extractives Ash

69. Crude Oil Components Sulfur Napthalene Alkyl benzenes Paraffins Benzene Toluene Xylene 1,2,3,4 – Tetramethylbenzene Heavy metals Etc., etc., etc.

70. November, 2004 Delaware Oil Spill Worse Than Thought

71. A Little History Oil came in at $1.50/barrel in the mid- 1940’s ($0.0045/pound) Corn was approximately $1.50/bushel in 1950 (approx. $0.03/pound)

72. Historical Corn Prices Source: National Corn Growers Association

73. Forward to the Past Prior to the 1940’s most chemicals were plant derived Celluloid, Cellophane, Bakelite, rayon, paints, adhesives Henry Ford Vegetable Mobile Fermentations to ethanol, butanol, propanol and other alcohols was common prior to the 1940’s.

74. Organic Chemicals vs Fuels $/Pound 20002008 Chemical Ethylene(1) 0.250.64 Propylene (2) 0.21 Acetic Acid (20) 0.480.68 Citric Acid (74) 0.85 Ethanol ($1.20 - 2.50/gal) 0.190.40 Paper (printer) 0.80 Ammonia ($200 – 600/ton) 0.100.30 Fuel Natural Gas ($0.50 – 1.00/ccf) 0.120.24 Gasoline ($1.00 - 3.00/gal) 0.160.48 Coal ($1 - 2/million Btu) 0.010.02

75. Mass Balance SugarProductFormulaPercent C 6 H 12 O 6 Acetic AcidC 2 H 4 O 2 100 C 6 H 12 O 6 Lactic AcidC 3 H 6 O 3 100 C 6 H 12 O 6 GlycerolC 3 H 8 O 3 100 C 6 H 12 O 6 EthanolC 2 H 6 O 51 C 6 H 12 O 6 MethaneCH 4 27

76. Petrochemicals - Biochemicals PetrochemicalBiochemical (1) Ethylene C 2 H 4 Ethanol C 2 H 6 O (2) Propylene C 3 H 6 Isopropanol C 3 H 8 O (3) MTBEMTBE - plants (4) Ethylene Dichloride C 2 H 4 Cl 2 Ethylene + Chlorine (5) Benzene C 6 H 6 Benzene (6) Urea CH 4 ON 2 CO 2 + NH 3 (12)Ethanol (15) Ethylene Oxide C 2 H 4 OEthylene (20) Acetic Acid(methanol)Acetic Acid C 2 H 4 O 2

77. Plant Based Chemicals ChemicalProduction Cost/LbPlant M. TonsPetro.Plant % Furfural 0.3 0.750.7897.0 Adhesives 5.0 1.651.4040.0 Fatty Acids 2.5 0.460.3340.0 Surfactants 3.5 0.450.4535.0 Acetic Acid 2.3 0.330.3517.5 Plasticizers 0.8 1.502.5015.0 Plastics 30.0 0.502.00 1.8 Source: ILSR

78. More Plant Based Chemicals Polylactic acid Plastarch Poly-3-hydroxybutyrate (PHB) Sorona: 1,3 propanediol (PDO), (Dupont) Mirel: PHA, (Metbolix, ADM) Ethyl lactate (low VOC solvent) Ethylene, propylene Butanol Acetone 100’s of new pharmaceuticals

79. Getting There from Here Corn stalks - C,H,O Sugars - C,H,O Ethanol - C 2 H 6 O Ethylene - C 2 H 4 Ethylene Dichloride - C 2 H 4 Cl 2 Vinyl Chloride - C 2 H 3 Cl PVC

80. Getting There from Here Corn stalks - C,H,O Sugars Propanol Propylene Acrylonitrile Polyacrylonitrile Carbon Fiber

81. Getting There from Here Corn stalks - C,H,O Sugars Acetone Chlorine Gas + CO Bisphenol APhosgene Polycarbonate

82. Biofuels 2007 42 Ethanol Plants in Iowa – 1 st Nationally 3.3 Billion Gallon 14 Biodiesel Plants in Iowa – 1 st Nationally 0.3 Billion Gallon

83. Some Big-time Players Dow/Cargill – polylactic acid – Blair, NE Dupont/Pioneer Monsanto/Dekalb Shell

84. Follow the Money 1990 1910 Source: ILSR Inputs T,P & M Farmer Inputs T,P & M Farmer

85. Rural Economic Potential 1999 2004 Iowa Ag. And Food Exports $3.5 Billion$4.7 Billion 24 MT Stover @ $0.02/lb.$1.0 Billion Iowa Gross State Product $86 Billion$111 Billion 24 MT Stover @ $2.50/lb.$120 Billion

86. Breakfast Cereal $1-$3/Pound

87. Clothing - $10-$100’s/Pound

88. Plastic Tanks - $2.00/pound

89. RMI Hypercar $5-$10/ pound Auto-making and associated businesses employ one- seventh of U.S. workers (approaching two-fifths in some European countries) and represent one-tenth of America's consumer spending.

90. W. Washington U.

91. GM’s Autonomy

92. GM’s Effort

93. Henry Ford’s soybean plastic

94. Key Benefits Developing systems to economically produce chemicals and fuels from biomass will spur rural economic development Adding value to agricultural products will enhance the profitability of many Iowa industries Demonstrating full-scale biomass conversion systems promotes increased adoption of these technologies Developing new products and technologies with export potential will strengthen Iowa’s economy (consulting) Producing and using biochemicals is more environmentally sound than producing and using petrochemicals Combining biomass research, demonstration, education and training at one facility helps focus this work and enhances exposure

95. What’s it Going to Take? Yankee Ingenuity Research and Demonstration Pioneer Spirit Fortitude Foresight Wisdom Integrated Systems Political Support

96. Wake-up Call WTO: China Overtakes U.S. in Exports Asian nation set to become world’s biggest exporter by 2008 The Associated Press Updated: 9:50 a.m. CT April 12, 2007

97. Agriculture Looks Good

101. Just Do It