Asia Biomass Community

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Asia Biomass Community
Nov. 21, 2007

• Issei Sawa

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What is the Biomass Energy??
Sustainable energy utilizing renewable natural
resources originating from biomass (other than
fossil resources like mineral oil, coal, and
natural gas).
Methane fermentation power generation
for Electric Power
Biomass Energy
Biomass Pellet ? Coal Alternative
Bio Diesel Fuel (BDF) ? Diesel Alternative
Bio Ethanol Fuel (BEF) ? Gasoline Alternative
for Vehicle(Liquid Fuel)
Biomass to Liquid (BTL)
Biomass origin Dimethyl Ether (DME) / Methanol
Direct Biomass Combustion Power Generation
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Advantages of Biomass Energy

• Contribution to GHG Emission ReductionZero
  count on CO2 emission treated as Carbon Neutral?
  as stipulated by United Nations Framework
  Convention on Climate Change (UNFCCC)? Eligible
  for CDM Projects, if it is used as substitutes
  for fossil fuel.
• (2) Anti Air-PollutionReduction of SOX (Sulfur
  Free), SPM (Oxygen), etc.
• (3) Energy portfolioLess dependency on the
  Middle East fossil fuel sources
• (4) New Environmental IndustryCatch up with EU
  and US who are considered as the biomass energy
  advanced countries, in accordance with the
  Biomass Nippon Integrated Strategy
• ?Carbon NeutralCO2 occurred from burning of
  biomass doesn't influence on CO2 growth in LCA
  base, because CO2 is fixed by the photosynthesis
  of the plant which is the feedstock of biomass
  energy.

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Industrial Revolution in Biomass
Energy (BEF/BDF)
Background
Now
Future
Requirement for Sustainable Environmentally
Friendly Energy
Establishment of Global Biomass Energy Industry
Biomass Energy (BEF / BDF) market being created
throughout the world
Substantial Rise in Mineral Oil Market Price
Policy and Technology
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BEF - Future demand forecast
300
Million kl
280

• Technology development in utilization of
  cellulose biomass

250
200
170
150
Base case
80
100
50
40
2005
2010
2015
2020
2025
2030
Base case is calculated based on Alternative
Policy Scenario in IEA World Energy Outlook 2006
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BDF - Future Demand Forecast
100
Million kl
80
80

• Wide utilization of other non-edible feedstock

60
50
40
Base case
20
20
5
2005
2010
2015
2020
2025
2030
Base case is calculated based on Alternative
Policy Scenario in IEA World Energy Outlook 2006
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Value Chain of Biomass Energy
Industry
Market Usage / Application as Alternative
Fuel (Engine Optimization Technology)
Feedstock Biomass Plantation
/Collection Technology (60-70 of production
cost)
2 priority
Processing Conversion Technology (30-40
of production cost)
1 priority
3 priority
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BEF - Value Chain of Biomass Energy
Industry
Feedstock
Processing
Market

• Gasoline Blend
• (1) Usage Passenger cars
• (2) Application
• ? Anhydrous
• ETBE, E3, E10, E25,E85
• ? Hydrous
• E100 (FFV in Brazil)

Sugar ? Fermentation ? DD? Starch ?
Saccharification ? Sugar ? Fermentation ? DD
Sugar (sugarcane, sugar beet) Starch (corn,
cassava, wheat)
Conventional Feedstock
Cellulose ? Pre-treatment / Saccharification
? Sugar ? Conversion ? DD
Cellulose (soft cellulose, wooden cellulose,
waste)
Diversification of Feedstock
? DD Distillation Dehydration
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BDF - Value Chain of Biomass Energy
Industry
Feedstock
Processing
Market
Diesel Blend (1) Usage Trucks, Passenger
cars, Gene-Set, Agri machinery,
Mining/Construction Equipment, Boat, Gas-Turbine
(2) Application B5, B10, B20 Higher Blend
or B100
Methyl Ester Oil(100) Methanol(10) Alkalic
Catalyst?Chemical Reaction ? Purification ?
Distillation ? BDF(90-98) Glycerine(10)
Vegetable Oils Animal Fats Laurin Oil
(Coconut / PKO) Olein Oil (rape / soy /
sunflower) Palmitin / Stearin Oil
(palm, tallow ) Used Frying
Oil (UFO) -- waste
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BEF - Technology Development

• Market
• Problems as blend stock for Gasoline vapour
  pressure, water, corrosion
• ? Engine optimization technology to achieve
  higher blending ratio.
• Feedstock
• (1) Conventional Feedstock High yield to
  increase availability
  cost competitiveness.
• (2) Diversification Soft cellulose, wood,
  wastes, etc.
• Processing
• (1) Conventional Feedstock Zeolite Membranes
  Dehydration System
• (2) Diversification Pre-treatment/Saccharifica
  tion
• i) Pre-treatment Enzyme
• ii) Hydrothermal
• iii) Acid (thicken),

1
2
3
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BDF - Technology Development

• Market
• Problems as blend stock for diesel oil
  storage stability, CFPP, contamination ? High
  Quality BDF Diesel Blending Technology to
  achieve wide variety of application
  Higher Blending Ratio.
• Feedstock
• (1) Diversification (Rapeseed, Soy ? Palm,
  Jatropha, etc)
• (2) Higher Yield to increase availability Cost
  Competitiveness
• Processing
• High Quality / Purity BDF, High Yield,
  Multi-Feedstock (even from CPO)
• By-Product (Glycerin etc.) Treatment
• Future Possibility
• 1) BHD (hydrocracking / isomerization)
• 2) BTL (FT Diesel)

1
2
3
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Feedstock Selection

• Nature of Feedstock
• Available Enough ?
• Stable Supply
• Co-Existence with Food
• Economic Viable?
• High yield low cost
• LCA Viable?
• Contribution to GHG reduction

• Conversion Technology
• Technologically mature ?
• Commercially viable ?

OK!
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Prospective Direction to Create Biomass Energy
Industry

• Political Issue
• Technical Issue
• Regional Alliance in Asia (Supply/Demand)

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Creation of Biomass Energy Industry Political
Issue

• Incentives
• Tax incentives
• Exemption of Petroleum Tax
• Import Duty
• Subsidies
• Subsidies on Agricultural Product
• Subsidies on Production Plants
• Subsidies on Distribution Facilities
• Mandatory Introduction
• RFS (Renewable Fuel Standard)

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Creation of Biomass Energy Industry Technical
Issue

• Engine Optimization Technology to achieve Higher
  Blending Ratio
• Feedstock Availability / Cost Down
• Improvement of Plantation Technology (High yield
  etc.)
• Processing (Conversion) Technology
• Quality improvement of the product
• Cost down
• Diversification of variety of Feedstock
• Environmental Countermeasure

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Creation of Asia Biomass Community

• Background
• Need to Encourage Sustainable Environmental
  Friendly Energy Industry in Asia.
• Existence of Necessary Resources to create value
  chain of Biomass Energy Industry in Asia.

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Creation of Asia Biomass Community

• Japan and South East Asia Sharing their strengths

Japan South East Asia
Background Need to reduce CO2 emission Need to promote Biomass Energy Industry. Abundant resources 1) Agricultural 2) Land 3) Labor force
Possible Contribution Technology development Financing (Investment) Import (as Consumer) Production Local Consumption Export
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Creation of Asia Biomass Community

• Enhance the Multilateral partnership
• Governmental level
• Private level

Finance
Technology
Market
Feedstock
JPN-SE Asia Joint Projects
European Market
Production
North American Market
Market
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Establish the Sustainable System Asian Model
1) Energy Plantation (Dedicate to Feed Stock for
Biofuel) 2) Bio-refinery 3) Distribution
Usage
Energy Plantation
Bio-refinery
Distribution Usage

• Contract Farming System
• Improvement of Yield
• Mechanized Farming
• - Fertilizer Management

-Quality Improvement -Environmental
Friendly (Less Energy, Low Emission) -Cascade
Biomass Usage
-Policy (mandate, subsidy) -Quality
Control -Storage Blending
Unaffected by Food Market
Industrialization
Market Creation
Improvement of Value Chain LCA