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.
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Outline
Biofuels in the bioeconomy
Biogasoline and its advantages
Biogasoline production processes
Economics
Challenges
Conclusions
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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
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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
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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
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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
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Commercially Available Processes
Processes that make mainly biogasoline from syngas or methanol
ExxonMobil MTG
Haldor Topsoe TIGAS
Primus Green Energy STG+
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ExxonMobil MTG Process
MTG (Methanol to Gasoline) converts methanol into ultra-low-sulfur, lowbenzene 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
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ExxonMobil MTG Commercial Plants
New Zealand
China
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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
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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
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Primus Green Energy
STG+ Commercial Demonstration Plant
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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
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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)
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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
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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
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