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Cellulosic Technology— Pulp and Paper Style
By Chris Hanson | June 26, 2013 API’s demonstration plant in Thomaston, Ga., uses its stand-alone AVAP technology. PHOTO: AMERICAN PROCESS INC Though a relative newcomer to the ethanol world, Georgia-based American Process Inc. is no stranger in the forest products industry. The company has demonstrated its consulting expertise in 500-some projects, logging more than 2 million work hours of project experience in nearly two decades. Founded in 1995 by Theodora Retsina as an engineering consulting firm, API has been increasing its presence in the cellulosic ethanol market with its bolt-on and stand-alone technologies utilizing woody biomass and crop residues to produce cellulosic sugars. In 2006, API began investing its own funds into developing two technologies for cellulosic sugar production. Kim Nelson, vice president of governmental affairs at API, says the move was spearheaded by the need to keep the forest products industry thriving and viable. “We were consultants to the pulp and paper industry,” Nelson says, adding that it’s fairly unusual for consulting firms to develop their own processes. “Most of our employees at the time had advanced degrees in pulp and paper science engineering, biomass chemistry, wood chemistry, etc. If they did not have those advanced degrees, they had worked in the industry for many years. So we had this great understanding of the existing processes, and in handling, treating and extracting biomass. So it was kind of a unique resource that we had and took advantage of.” Bolt-on Conversion API’s GreenPower Plus and AVAP (which was originally developed as American value-added pulping) technologies are utilized to extract sugars that may be used to produce biofuels and biobased chemicals from a variety of feedstocks. The GreenPower Plus technology first treats biomass, including hardwood, softwood or bagasse, through a hot water extraction process. The hemicelluloses are removed from the wood in this process and then treated with acid to form sugars. Last, the sugars are concentrated until it can be converted into biochemicals or fermented into cellulosic ethanol by organisms able to process C5 and C6 sugars. Any residual solid material containing lignin and cellulose is then processed to create pellets, combusted in a boiler or used for pulp and paper applications. Retsina, CEO of API, describes GreenPower Plus as a bolt-on technology for plants that are already aggregating biomass, such as a first-generation sugar-to-ethanol plant. Basil Karampelas, president of API, says one of the main benefits of using GreenPower Plus is it upgrades a portion of the biomass to a higher value product at a capital cost of less than $10 per annual gallon of capacity. “We are only taking the hemicellulose fraction of the biomass, which is typically 20 to 25 percent,” Karampelas adds. “Whatever we’re not using goes back to the original user. You have the possibility to generate cash flow from that 25 percent that could be approximately equal to the cash flow from the burning of the other 75 percent of the biomass in the boiler or pelletizer.” Currently, API’s GreenPower Plus technology is being demonstrated at the Alpena Biorefinery in Alpena, Mich. Co-located at the Decorative Panels International hardboard facility, the refinery began operating in the second quarter last year utilizing a DPI waste stream of woody biomass extract. It has a nameplate capacity of 894,000 gallons of cellulosic ethanol and 696,000 gallons of potassium acetate per year. The project was named a Center of Energy Excellence and a Renewable Energy Renaissance Zone by the state, and awarded $22 million in 2010. Stand-alone Technology AVAP is API’s stand-alone technology that converts biomass into sugars for cellulosic ethanol or biochemical production. It uses sulfur dioxide and ethanol pretreatment chemistry to extract hemicelluloses and lignin, Nelson explains. The lignin and hemicelluloses are processed by autohydrolysis. The hemicellulose is used to produce sugars while the lignin is transported to a boiler to generate energy for the facility. Meanwhile, the separated cellulose is either sold as a coproduct or is processed through enzymatic hydrolysis to produce cellulosic sugars, which can be converted along with the hemicellulose sugars into biochemicals or biofuels such as cellulosic ethanol. On the AVAP technology, Retsina says it “takes any biomass, it is completely feedstock agnostic, and converts all the biomass to fungible intermediate feedstock, which is sugars. Those cellulosic sugars can be converted to chemicals and fuel on site or shipped to another site and dropped into another operation.” API set up an affiliate in 2011, AVAP Co. LLC, to commercialize the AVAP technology it uses at its demonstration plant in Thomaston, Ga., which came online in May. “With any first-of-its-kind facility,” Karampelas says, “we’re anticipating there will be different things we’ll be doing to tweak and optimize as we start up, which is what we did with Alpena.” The plant can handle a variety of feedstocks at rates up to 10 tons per day, with an annual capacity of about 300,000 gallons per year. He mentions one way API is optimizing the site in Thomaston is by relocating API’s corporate R&D capabilities onsite. “AVAP is a technology that will fractionate the entire biomass and in doing so it gives us a lot of optionality around what we can ultimately produce,” Karampelas says. He then clarifies that since the technology is fractionating the feedstock into cellulose, lignin and hemicelluloses, the plant can decide to skip the cellulose-to-glucose conversion stage and use the separated cellulose to produce coproducts, such as fluff pulp, while using the hemicellulose sugars for biochemical or biofuel production. “Our plan for both Thomaston and Alpena for the remainder of 2013 is to really perfect and optimize the two technologies at the demo facilities,” Karampelas says. API was not prepared to share any specific yield estimates, since yield values are dependent on the feedstock and configuration, which can vary from site to site, he adds. In addition to API’s sugar extracting technologies, it has developed two energy management software tools for the pulp and paper industry. Energy Targetter is used to identify energy consumption problems, track performance of projects and improve energy efficiency. The Performance Indicator Benchmarking program is a Web-based tool that utilizes data from mills in the pulp and paper industry to help users benchmark their steam, water, electricity and thermal energy consumption. API’s newest software, apiMax, is a biorefinery simulator developed in 2009 for industries such as cellulosic biofuel and biochemical, pulp and paper and pellet production. API’s website notes 30 companies and 13 institutions are using or evaluating the program that can simulate biorefining and energy equipment. Brazilian Boost API recently got a boost when the Brazil-based biotech company, GranBio acquired a 25 percent equity stake in API, giving the company access to API’s cellulosic sugar technologies. “The association with a demonstrated cleantech leader such as GranBio strengthens American Process and makes it possible to aggressively grow our business,” Retsina said in a press release about the agreement. “We believe that the production of low-cost clean sugars is key to unlocking the potential of biomass as a versatile feedstock for fuels, chemicals and products. We are actively partnering with ‘sugar converters’ to complete the supply chain and convert the sugars to high-value-added products. We are excited and very optimistic about the prospects of building the first commercial-scale plant with API technology in Brazil followed by one in the United States.” Karampelas views the deal as mutually beneficial for both API and GranBio. “The way it benefits API is we’ve got a partnership with a world-class company based in South America, specifically Brazil, where we see tremendous potential for both of our technologies,” he says. He adds that by working with GranBio, API may gain insight in attracting international customers interested in using cellulosic sugars to produce their products. He says the relationship will help GranBio gain more exposure and a better understanding of API’s home market of North America. Author: Chris Hanson Staff Writer, Ethanol Producer Magazine 701-738-4970 chanson@bbiinternational.com Continue reading
IEA: Renewable Power To Exceed Gas By 2016 And Double Nuclear
Silvio Marcacci CleanTechnica Natural gas is widely considered the bridge to take us from fossil fuel dependence to a clean energy future – but that bridge may be a lot shorter than anyone could have predicted. Global renewable electricity production by region image via IEA The International Energy Agency predicts power generation from renewable sources will exceed natural gas and be twice the contribution from nuclear energy globally by 2016 – just three short years from now. IEA’s second-annual Medium-Term Renewable Energy Market Report (MTRMR) forecasts renewable generation will grow 40 per cent in the next five years despite difficult economic conditions. Wind and solar lead renewables charge Renewable energy is now the fastest-growing sector of the global power market, and will represent 25 per cent of all energy generation worldwide by 2018, up from 20 per cent in 2011. In addition, renewable electricity generation is expected to reach 6,850 terawatt-hours (TWh) and total installed renewable capacity should hit 2,350 gigawatts (GW), both by 2018. Wind and solar photovoltaic generation is powering this jump, and non-hydro renewable power will double from 4 per cent of gross generation in 2011 to 8 per cent in 2018. IEA cites two main drivers for their incredible outlook: accelerating investment and deployment, and growing cost competitiveness versus fossil fuels. Strongest growth in developing countries Even though government funding has been inconsistent, private investment has remained strong, especially in developing economies. Rural electrification, energy poverty, and rising demand have been major challenges for policymakers in these countries, and renewables have become an increasingly attractive option for diverse and non-polluting power. Countries with non-hydro renewable capacity above 100MW image via IEA Non-developed countries, led by China , are expected to contribute two-thirds of all renewable market growth between now and 2018, compensating for slower growth and market volatility acorss Europe and the US. Indeed, non-hydro renewable power will make up 11 per cent of gross generation in these countries by 2018, up from 7 per cent in 2012. By itself, China will account for 310GW, or 40 per cent of all global renewable power capacity increases over this time period. Falling costs, rising capacity Solving energy poverty issues without harmful emissions is key to renewables growth , but the larger reason for IEA’s outlook is more likely falling costs. The report finds renewables now cost-competitive with fossil fuels across many countries and a wide set of circumstances. Solar PV annual capacity additions by region image via IEA IEA notes wind is competitive with new fossil fuel in multiple markets, including Brazil, South Africa, Mexico, and New Zealand, and solar is competitive both in markets with high peak prices and decentralized power needs. “As their costs continue to fall, renewable power sources are increasingly standing on their own merits versus new fossil-fuel generation,” said Maria van der Hoeven of IEA. IEA – policy uncertainty is public enemy #1 However, the IEA warns renewables still face a challenging future. Global investment fell in 2012, and policy uncertainties loom over clean energy technology in several important markets. In addition, grid integration challenges have materialized in some regions as renewables penetration has hit new levels. “Policy uncertainty is public enemy number one,” said Van der Hoeven . “Many renewables no longer require high economic incentives, but they do still need long-term policies that provide a predictable and reliable market and regulatory framework.” Read more: http://www.businesss…r#ixzz2XPwhHSpo Continue reading
Look Beyond Short-Term Turbulence In Emerging Markets
http://www.ft.com/cms/s/0/efa289c2-d995-11e2-98fa-00144feab7de.html#ixzz2X2DFzLUx By Mark Mobius The long-term emerging markets picture is bright, says Mark Mobius Emerging stock markets ended May in decline, with concerns that the US Federal Reserve could taper quantitative easing (QE) measures earlier than expected accompanied by a sharp correction in Japanese bonds and profit-taking in Japanese equities. June has been even worse – QE worries are still with us, there have been riots in Brazil and Turkey and softer economic data out of China. Not surprisingly, this has hit emerging market bonds, stocks and currencies hard. This week, the Indian rupee hit an all-time low against the dollar. It is not a pretty picture. But the longer-term case for emerging markets is much more persuasive. Looking back, for example, in 10 of the past 12 calendar years, emerging markets have outperformed developed markets. One major reason I remain positive on emerging markets is growth. Although short-term global GDP forecasts have tended to drift lower as quarterly releases have missed expectations in a number of markets, I think 2012 will mark the low point in overall growth, with acceleration anticipated in 2013 and in subsequent years. I expect emerging market growth in 2013 and beyond to continue to be much stronger than growth in developed markets. As well as feeding into corporate profitability and valuations over time, this economic growth is likely to drive rising demand for commodities. Augmenting overall growth patterns, industrialisation and urbanisation in emerging markets are likely to increase commodity demand further, which over the longer term will drive commodity prices ahead. While commodities, exports and infrastructure development continue to be leading growth drivers in many emerging market economies, overall growth is likely to come increasingly from domestic sources. Expanding consumer wealth is creating an increasingly large and discriminating body of middle class consumers across emerging markets, and their demand – for cars, electronics and other consumer goods and services – is in turn creating increasingly significant domestic economic activity. Consumer indebtedness in emerging markets is far lower than in developed markets, so emerging market consumers have commensurately greater capacity to gear up their demand. In addition, demographic factors are far more favourable in many emerging markets than in many developed markets. With a relatively high proportion of the population in emerging markets moving into the workforce and a relatively low proportion of dependants, demographics are helping to reinforce consumer demand. Even in markets such as China, where demographics are less clearly favourable, productivity gains from moves out of agriculture and into manufacturing and service industries still provide a positive influence on growth and domestic demand. As emerging markets become more mature and investors in the asset class more varied and sophisticated, niche product offerings are becoming increasingly significant. For example, smaller companies represent a distinct opportunity within the emerging markets universe, providing exposure to businesses at an early and fast-growing stage of their life cycle. Private equity and private investment in public equity vehicles also help address these young, dynamic businesses. Within emerging markets. “frontier markets” enjoy strong growth arising from their low starting base, abundant natural and human resources and the availability of easy gains from market reforms and injections of technology into relatively low-wage economies. They are relatively under-researched, so undervaluation and pricing anomalies abound. Nowhere is this more the case than Africa, which I feel represents an investment destination on its own account. There are those who say the link between GDP growth and market returns is tenuous. Maybe. But investors don’t buy markets, they buy companies. For all the attractive trends outlined above, investors should always be looking for those stocks that are most underpriced relative to their long-term potential. In frontier markets, that potential is largely about capital growth. But increasing numbers of emerging market companies now trade on attractive dividend yields, and income is becoming a bigger component of total returns. Mark Mobius is executive chairman of the Templeton Emerging Markets Group Continue reading
