134Abengoa overview Sector Eléctrico Abengoa is a technological company that applies innovative solutions for sustainable development in infrastructures, environment and energy sectors. It is present in over 70 countries where it operates through its five Business Units: Solar, Bioenergy, Environmental Services, Information Technology, and Industrial Engineering and Construction.
135CO2 – Industrial applications Sector EléctricoAbengoa Bioenergy BusinessAbengoaBioenergyEthanol production from vegetal raw materials (cereal and biomass)Renewable BiofuelNull CO2 emissionsDGS – Animal feedCerealCO2 – Industrial applicationsETBEEthanolDirect blendingBiomassHydrogenBioproducts
136Technology based in fermentation of sugars Sector EléctricoProduction ProcessTechnology based in fermentation of sugarsSugar (glucose)+ Air CO2 + EthanolC6H12O6 + O2 3 CO2 + 3 C2OH6YeastUsed feedstock is transformed into sugars, the process would change depending on the chemical composition:Sugar beet or sugar cane: direct fermentationCereal: starch, previous saccharification (enzymes)Lignocellulosic biomass: cellulose and hemicellulose. Hydrolysis to break long chains and produce C6 and C5 sugarsLevel ofComplicationFeedstock priceEach feedstock yields different co-products
137Production Processes Feedstock Preparation Transformation into sugars Sector EléctricoProduction ProcessesFeedstock PreparationTransformation into sugarsFermentationDistillationCollectionSugar caseMilling and filteringC6Cereal caseCookingSaccharificationLiquefactionMillingFeedstock cleaningLignocellulosic Biomass caseConditioningSeparation L/STermochemical hydrolysis2nd Enzymatic HydrolysisC5
138Feedstocks Abengoa Bioenergy Goals Sector EléctricoFeedstocksAbengoa Bioenergy GoalsPromote development of seeds with improved characteristics to establish win-win contracts with farmers, link certified seeds to the contracts.Abengoa Bioenergy is establishing strategic alliances with seedscompanies to develop/improve specifics cropsPromote better agronomic practices under long term contracts toincrease farm incomePromote energy crops for ethanol productionAbengoa Bioenergy is working closely with research centers to promote the development of crops for ethanol production.Abengoa Bioenergy is helping governments define policies and R&D programs to promote energy crops.
139Sector EléctricoFeedstocksObjectiveTaylor made energy crops for the different conversion pathways and for particular regions ensuring sustainability and environmental quality. Main crops characteristics:Domestic crops, high starch and biomass yields per hectare,stress tolerances (abiotic, disease…)Minimum inputs maintaining sustainabilityComposition to maximize the ethanolEnsure sustainability and environmental quality(from…analysis of microbial communities underlying soils…to formulation of management guidelines for biomassremoval)
140Technology Cereal technology – current situation Sector EléctricoTechnologyCereal technology – current situationAll Abengoa Bioenergy plants are currently running on cerealsYields varying depending on cereal usedDDGs produced containing 30% protein and 10% humidityCereal technology – Future situationObjectiveIncrease competitiveness of the production facilities. Abengoa Fuel and Feed (AFF) process to be patented by Abengoa BioenergyStepsDecrease amount of residual starch (minimum facility modifications)Increasing protein content (>40%)Increase digestabilityIncrease the quality of the co-product (DDGs)
141Technology Enzymatic hydrolysis technology – current situation Sector EléctricoTechnologyEnzymatic hydrolysis technology – current situationAbengoa Bioenergy has develop a proprietary fractionation technology for biomass processing.Pilot scale plant in York, (Nebraska, US) to validate our biomass fractionation process and integrate downstream systemsDemonstration plant in Babilafuente (Salamanca, Spain) to validate biomass to ethanol enzymatic technology at a commercial scale.Enzymatic technology – Future situationObjectiveCompetitive production of ethanol from biomass.StepsComplete the process engineering development demonstrations phases.Build first of a kind commercial facility after thedemonstration of the technology in Salamanca andNebraskaValorization of all biomass fractions
142Technology Steps (continue) Sector EléctricoTechnologySteps (continue)Research in the biological deconstruction of the biomass to produce tailor made enzyme mixes for each specific case:Determine fundamental physical and chemical factors in the recalcitrante of lignocellulosic biomass to processingUnderstand cellulase and cellulosomeDevelop new enzymatic systems to soften termochemical pretreatment conditionsAdvance in the sugar fermentation to ethanol through the engineering of microbial systems to achieve:high yield with complete sugar utilisation, minimal by- product formation, and minimal loss of carbon into cell mass.high final ethanol concentrationtolerance to inhibitors present in hydrolysateshigher overall volumetric productivity, especially under high solids conditions
143Sector EléctricoTechnologyBiomass gasification and synthesis (BtL) technology –current situationAvailable catalysts are not productive enough to make theprocess economically feasible.Low conversion per passMixed alcohols product with low ethanol selectivitySeveral existing technologists licensing gasification processesfor syngas production for further chemical synthesis.Catalysts development programs in European research centers,combined with process design and analysis.Recently granted by the US-DOE a program (3 MM$) forsynthesis catalysts development
144YTD Production Capacity Sector EléctricoYTD Production CapacityProduction Facilities in EUProduction Facilities in U.S.EU (Mgal)ProductionConstruction *US (Mgal)ProductionConstruction•Cartagena (40 Mgal)•La Coruña (50 Mgal)•York, NE (55 Mgal)•Portales, NM (30 Mgal)•Salamanca (52 Mgal)•AB France (65 Mgal)•Colwich, KS (25 Mgal)•Ravenna, NE (88 Mgal)Abengoa Bioenergy is the only international producer of ethanol
145Build first commercial scale cellulose facility by 2011 Sector EléctricoAbengoa Bioenergy plans to be a leader in commercialization of cellulosic ethanol productionObjectiveBuild first commercial scale cellulose facility by 201115 million gpy from biomass, 85 million gpy from starch (hybrid facility)CornerstonesTwo biomass facilities now underconstructionYork, NE pilot plant (operational 2006) will demonstrate biomass fractionation and fermentation technologySalamanca, Spain facility (2 mgpy - operational 2007) will demonstrate enzymatic hydrolysis technology
146DOE integrated biorefinery solicitation Sector EléctricoDOE integrated biorefinery solicitationOverviewDOE will award of up to 40% of the cost of a biorefinery facility ($76.8 million)Award criteria:Facility must be able to utilize 700 bone dry metric tons of biomass per dayFacility must be replicable and proposal to include appropriate deployment plan of the proposed technologyAfter construction costs are paid, the facility must be profitable without subsidiesAdditional merit points given for:Significant showing of state supportEnergy generation from multiple sources feedstocksBarrels of oil displaced
147Risk mitigation for biomass availability and site selection Sector EléctricoDOE integrated biorefinery proposalRisk mitigation for biomass availability and site selectionRisk factorsInclimate weather during biomass harvest periodDue to this risk factor, Eastern US corn-belt was not considered as a viable location for plant location until one-pass harvest technology is available (potential for one in seven years for biomass harvest to be limited)Biomass crop residue abundanceAs the DOE is focused on cereal crop residues, areas such as California and South East US (wood residue) were not considered as viable locations for proposalMultiple sources of biomassMultiple biomass sources demonstrate plant replicability over a wider geographic areaMultiple biomass sources with harvest periods during different times of the year reduce risk of biomass harvest being compromised by bad weatherMultiple biomass sources and harvest times spread harvest machinery investment and will reduce feedstock costs
153Biomass available in Kansas 38 million tons per year Sector EléctricoDOE integrated biorefinery proposal, con’tBiomass available in Kansas 38 million tons per year
154Abengoa’s hybrid plant concept Sector EléctricoDOE integrated biorefinery proposal, con’tAbengoa’s hybrid plant concept35 million bushels grain facility88 million gallons ethanol290,000 tons feed co-product245,000 BD metric tons biomass (315,000 short tons-as is)400 BD metric tons/day15 million gallons ethanol300 BD metric tons/daySyngas production1,597,200 MMBTU (syngas+flue gas)100% steam needs of biomass processing~30% steam needs of grain to ethanol processingSyngas can be utilized for production of chemical intermediatesOpportunity to leverage infrastructure and many plant operations
155Sector EléctricoDOE integrated biorefinery proposal, con’tTechnical processEnzymatic Hydrolysis (EH) will convert biomass to ethanol, lignin and biomass animal feed.- The EH technology is being developed in house and will be tested and improved at the facilities in York, NE (pilot plant) and Salamanca (demo plant).- Coproduct development (lignin and biomass animal feed) is being performed and will contribute to the overall profitability of the facility.Gasification will convert biomass to syngas, which will be combusted for steam generation.
156Oil Displacement From 245,000 BD metric tons biomass Sector EléctricoDOE integrated biorefinery proposal, con’tOil Displacement From 245,000 BD metric tons biomass386,721 barrels of oil displaced
157Strong showing of state support Sector EléctricoDOE integrated biorefinery proposal, con’tStrong showing of state supportState governmentAttractive incentive packageStrong governmental supportProducer organization supportKansas Farm BureauKansas Wheat Growers associationKansas Milo Growers associationKansas Corn Growers associationKansas BioAuthorityKansas Association of Ethanol Processors
158Biomass logistics – P&L cornerstone Sector EléctricoDOE integrated biorefinery proposal, con’tBiomass logistics – P&L cornerstoneBiomass inputs50 mile radius of plant site65% wheat straw, 20% milo residue, 15% corn stalksOpportunistically use other residues such as gin trash, wood chips, etc.Areas evaluated = ~5% of total available80 to 85% of input needsProducer harvests and stores material field sideAbengoa collects material as needed15 to 20% of input needsProducer delivered material to plant site
159Contracted at least one year in advance Sector EléctricoDOE integrated biorefinery proposal, con’tBiomass economics80 to 85% of materialContracted at least one year in advanceCrop residue is valued at $10/short ton in the fieldAdded to the $10/tonCustom rates for harvestingCustom rates for transporting/stacking at field sideStorage fee dependant on amount of time between harvest and Abengoa collection – to include competitive insurance rate and weather protection$10 plus rates above = price paid for biomass at field side15 to 20% of materialSpot market pricing
160Biomass economics What $10/ton means to biomass producers Sector EléctricoDOE integrated biorefinery proposal, con’tBiomass economics What $10/ton means to biomass producersOf the $10/ton, between $3 to $4 needs to be returned to the soil for nutrient lossProducer net will be $6 to $7 per ton1 ton/acre net = $6 to $7 per acre2.4 ton/acre net = $14.4 to $16.8 per acre5 ton/acre net = $30 to $42 per acreMany Kansas producers live on $25 per acre profit
161Wheat versus corn/milo residue and switchgrass Sector EléctricoWheat versus corn/milo residue and switchgrass
162Cost effective enzymes Pentose to ethanol organism (s) Sector EléctricoNeeds to make cellulosic ethanol cost effective/ competitive with grain ethanolProcessCost effective enzymesPentose to ethanol organism (s)Fractionation processPlant design and operational learning curveFeedstockHigh density balersOne-pass harvesting systemsStorage infrastructure and systems to maintain qualityImproved genetics of feedstock varietiesEnergy efficient harvesting systemsTransportation infra- structure and biomass friendly regulations
163Abengoa Bioenergy Thank you Question? www.abengoabioenergy.com Sector EléctricoAbengoa BioenergyThank youQuestion?