1. Biogasoline: Biofuel 2.0 for the Bioeconomy 2.0
Sorab R. Vatcha, PhD Consultant Mountain View, CA, USA vatcha[at]gmail.com Bioeconomy in Transition: New Players and New Tools University of California, Berkeley May 31 – June 2, 2017 Copyright © 2017 by Sorab R. Vatcha. All rights reserved.
Title: Biogasoline: Biofuel 2.0 for the Bioeconomy 2.0

2. Outline
Biofuels in the bioeconomy Biogasoline and its advantages Biogasoline production processes Economics Challenges Conclusions
Outline
Biofuels in the bioeconomy. Biogasoline, advantages, production. Economics. Challenges. Conclusions.

3. Biofuels in the Bioeconomy
Biofuels make up a major, important part of the bioeconomy Biofuel 1.0: Ethanol from corn Ethanol has been the main biofuel in USA, mostly up to 10 vol% in gasoline (E10) Cellulosic ethanol is in limited supply, costly, and requires government subsidies Many issues and limitations, controversial, and opposed by the oil industry Biofuel 2.0: Biogasoline Biogasoline has all the advantages of ethanol and more, with none of the disadvantages Biogasoline should replace ethanol in gasoline gradually and seamlessly over time
Biofuels in the Bioeconomy
Biofuel 1.0: Ethanol from corn or cellulosic ethanol, up to E10, many issues and limitations, controversial, and opposed by the oil industry.
Biofuel 2.0: Biogasoline, which has all the advantages and more, and none of the disadvantages of ethanol.
Biogasoline should replace ethanol gradually and seamlessly over time.

4. Biogasoline
Second-generation (2G) “drop-in” gasoline-compatible biofuel Made from abundant, low-cost biomass or waste outside the human food supply chain Consists of hydrocarbons chemically like gasoline (unlike ethanol) Miscible with gasoline in any proportion without limit (unlike ethanol) Meets gasoline specifications and regulations in all major countries Meets U.S. Renewable Fuel Standard (RFS) and California Low-Carbon Fuel Standard (LCFS) Fully compatible with existing gasoline infrastructure, vehicles, and engines
Biogasoline
2G “drop-in” gasoline-compatible biofuel, chemically like gasoline, miscible without limit (unlike ethanol). Meets gasoline specifications and regulations, RFS, and LCFS. Fully compatible with existing gasoline infrastructure, vehicles, and engines.

5. Biogasoline Advantages
Biogasoline has all the advantages of ethanol and more, with none of the disadvantages Obviates separate fuel infrastructure, “flex-fuel” vehicles, and vehicle modifications Does not void engine and vehicle warranties More carbon-neutral with less greenhouse gas (GHG) emissions than gasoline Commercially proven production processes are available for license Cost-competitive with both gasoline and ethanol without subsidies Oil & gas industry is participating (e.g., ExxonMobil, Tesoro) Can and should be phased into the gasoline pool gradually and seamlessly over time
Biogasoline Advantages
All the advantages of ethanol and more, with none of the disadvantages. Does not void engine and vehicle warranties. More carbon-neutral than gasoline. Cost-competitive. Oil & gas industry is participating (e.g., ExxonMobil, Tesoro). Can and should be phased in to the gasoline pool gradually and seamlessly over time.

6. Biogasoline Production Processes
Various chemical and biological processes, and synergistic combinations thereof, are available Multistep processes usually with liquid or gaseous intermediate streams Pyrolysis or hydropyrolysis of biomass makes bio-oil or biocrude Biocrude is refined into biogasoline or coprocessed with crude oil in a refinery Gasification of biomass or biocrude makes synthesis gas (syngas) Syngas is converted into biogasoline by commercial processes available for license Fischer-Tropsch synthesis is more suitable for paraffinic, distillate-type fuels than gasoline Other processes use sugar or organic chemicals
Biogasoline Production Processes
Chemical and biological processes, and synergistic combinations are available. Multistep processes with liquid or gaseous intermediates. (Hydro)pyrolysis makes bio-oil/biocrude, which is refined or coprocessed with crude oil in a refinery. Syngas from gasification is converted by commercial processes available for license. FTS is unsuitable for gasoline. Other processes use sugar or organic chemicals.

7. Commercially Available Processes
Processes that make mainly biogasoline from syngas or methanol ExxonMobil MTG Haldor Topsoe TIGAS Primus Green Energy STG+
Commercially Available Processes
Three processes that make mainly biogasoline from syngas or methanol: ExxonMobil MTG, Haldor Topsoe TIGAS, and Primus Green Energy STG+.

8. ExxonMobil MTG Process
MTG (Methanol to Gasoline) converts methanol into ultra-low-sulfur, low-benzene gasoline Invented by Mobil during energy crisis in 1970s World’s first commercial MTG plant in New Zealand was built in 1985, operated until 1995 ExxonMobil developed second-generation MTG process Licensed it to Jincheng Anthracite Mining Group (JAMG) in China First coal-to-gasoline plant began operation in 2009 Proven at full commercial scale over three decades and available for license Backed by a large, financially strong, experienced, competent company Lowest commercial and technical risks among MTG processes
ExxonMobil MTG Process
World’s first commercial MTG plant in New Zealand, G MTG licensed to JAMG in China; first CTG plant started in Proven at full commercial scale over three decades and available for license. Lowest commercial and technical risks among MTG processes.

9. ExxonMobil MTG Commercial Plants
New Zealand
China
ExxonMobil MTG Commercial Plants in New Zealand and China
Both plants are full-size and operated at full commercial scale, thus MTG is commercially proven.

10. Haldor Topsoe TIGAS Process
Haldor Topsoe is a private Danish company founded in 1940 TIGAS™ (Topsoe Improved Gasoline Synthesis) produces gasoline from syngas or methanol STG (Syngas to Gasoline), MTG (Methanol to Gasoline) Wood-to-gasoline project at Gas Technology Institute (GTI) in Des Plaines, Illinois 25 tons/day of waste wood converted into biogasoline in integrated process Produced >10,000 gallons of 92-octane biogasoline during 2013–2014 Biogasoline production cost from waste wood chips ~$2.60/gallon First full-scale commercial TIGAS plant is under construction in Turkmenistan Design capacity 15,500 bbl/day of synthetic gasoline from natural gas TIGAS will be commercially proven when this plant is completed and operated
Haldor Topsoe TIGAS Process
Integrated wood-to-gasoline project at GTI; wood chips in, biogasoline out. Demonstrated the TIGAS process and provided data for economic analysis (~$2.60/gallon). First full-scale commercial plant is under construction in Turkmenistan, making 15,500 bbl/day of synthetic gasoline from natural gas. TIGAS will be commercially proven when this plant is completed and operated ( ).

11. Primus Green Energy STG+ Process
Primus Green Energy (Hillsborough, NJ) 91% owned and funded by Kenon Holdings Ltd. (Singapore) STG+ (Syngas-to-Gasoline-Plus) process is integrated, modular, and scalable STG+ technology in development since 2007, pilot plant built in 2011 Commercial demonstration plant completed in October 2013 Capacity 100,000 gallons/year or 6.5 bbl/day Operated >9,000 process hours (as of January 2017) Produced 100-octane gasoline in 2016, suitable for aviation gasoline Collaboration with Princeton University resulted in technical publications STG+ is at an earlier stage of development by a smaller company Hence riskier than some other companies and technologies
Primus Green Energy STG+ Process
STG+ (Syngas-to-Gasoline-Plus) process is integrated, modular, and scalable over a wide range. Commercial demonstration plant, 100,000 gallons/year (=6.5 bbl/day), actually a pilot plant, operated >9,000 process hours since octane gasoline is suitable for aviation gasoline, unlike ethanol. STG+ is at an earlier stage of development by a smaller company, hence riskier than other companies and technologies.

12. Primus Green Energy STG+ Commercial Demonstration Plant
Primus Green Energy STG+ Commercial Demonstration Plant (photo)
This “Commercial Demonstration Plant” is actually a pilot plant (6.5 bbl/day). It is fed with natural gas.

13. Economics
Project economics and biogasoline production cost depend on many factors, e.g.:
Location, production capacity and rate, economic life, technology
Raw material cost, consumables, byproduct credits, utilities, waste treatment
License fees, financing (debt and equity), subsidies, taxes
Strong economies of scale; larger plants are more economical, up to optimal size
Main operating cost is the raw material cost
Biogasoline production cost from waste wood chips ~$2.60/gallon (GTI and Haldor Topsoe)
Competitive with U.S. gasoline: ~$2.20–$3.00/gallon retail, including taxes
Cost is likely to decrease over time, due to:
Learning/experience curve effect as biogasoline production expands
Technological advances
Biomass cost increasing less than oil cost over the long term
Economics
Depends on many factors. Economies of scale, so larger plants have lower costs. Cost estimate by GTI and Haldor Topsoe of ~$2.60/gallon is competitive with U.S. gasoline: ~$2.20–$3.00/gallon retail, including taxes. Cost is likely to decrease over time, due to the learning/experience curve effect, technological advances, and biomass cost increasing less than oil cost over the long term.

14. Challenges
Technical Complex multistep production processes Market Low gasoline prices: ~$2.20–$3.00/gallon retail, including taxes Competition from fossil fuels (e.g., natural gas) Competition from other renewable fuels (e.g., ethanol and higher alcohols) Electric vehicles, which reduce demand for gasoline Legal Uncertainty about the laws, regulations, standards, and subsidies for biofuels Patent litigation (e.g., Gevo v. Butamax)
Challenges: Technical, market, and legal
Complex multistep production processes; simplification and consolidation are needed. Low gasoline prices: ~$2.20–$3.00/gallon retail, including taxes. Competition from fossil fuels (e.g., natural gas) and other renewable fuels (e.g., ethanol and higher alcohols). Electric vehicles, which reduce demand for gasoline. Uncertainty about the laws, regulations, standards, and subsidies for biofuels. Patent litigation (e.g., Gevo v. Butamax, which went all the way to the U.S. Supreme Court).

15. Conclusions
Biogasoline is the key biofuel for the bioeconomy Is fully compatible with existing gasoline, engines, vehicles, and infrastructure Has all the advantages of ethanol and more, with none of the disadvantages Commercially proven production technologies are available for license Cost is competitive with gasoline now and likely to decline over time Should replace ethanol in gasoline gradually and seamlessly over time Biogasoline should be the focus of R&D, policy, and investment
Conclusions
Biogasoline is the key biofuel for the bioeconomy and should be the focus of R&D, policy, and investment. Fully gasoline-compatible. Has all the advantages of ethanol and more, with none of the disadvantages. Commercially proven production technologies are available for license. The cost of biogasoline is competitive with gasoline now and likely to decline over time. It should replace ethanol in gasoline gradually and seamlessly over time. Thank you, and Go Bears!

16. Recommendations and Success Strategies
Select and license the best process from a reputable source for each project Locate the plant near both raw material source and product market Execute long-term raw material supply and product purchase contracts on favorable terms Build plants with flexibility and adaptability to raw materials, products, and market conditions Build modular plants that can be easily scaled up or down to the optimal size Fabricate equipment in a machine shop rather than in the field if possible Obtain strong patent protection and avoid patent litigation
Recommendations and Success Strategies

17. Commercial Integrated Biorefinery
GTI integrated wood-to-gasoline process flow diagram. Source: TCBiomass 2015.

18. Economics and Sustainability
GTI integrated wood-to-gasoline process economics and sustainability. Source: TCBiomass 2015.

19. Annual Average Gasoline Prices (1918-2016)
The nominal price of gasoline increased ~10-fold , from 25 cents to $2.36/gallon. The real (inflation-adjusted) price decreased from $3.92 to $2.36/gallon. The long-term average real price of $2.64/gallon is near the current average price.