Competitive production of second generation transport biofuels

31 October 2006

VTT Technical Research Centre of Finland introduced the most advanced gasification test equipment in Europe designed for the development of second generation transport biofuels. The equipment is used for refining of synthesis gas from biomass for the production of diesel fuels.

R&D with new gasification test equipment provides
Competitive production of second generation biofuels

VTT has launched gasification equipment designed for the development of second generation transport biofuels. In the process, synthesis gas will be refined from biomass for the production of diesel fuels. The extensive test operation and development work produces basic information for the ongoing design of an industrial demonstration plant. The work involves also the development of new solutions for gas turbine and fuel cell power plants, as well as for the application of hydrogen for transport purposes.

In Finland, the main focus at the moment is on exploiting forest industry residues and by-products without risking the supply of raw-materials to the forest industry.

Synthesis gasification is specifically being developed to be realized in connection with forest industry plants. It is able to exploit any carbon-based raw-materials, e.g. forest industry residues, bark, biomass from fields, refuse-derived fuels and peat.

The production of liquid fuel in the forest industry or district heating power plants will be remarkably competitive because of its high efficiency and practical raw-material logistics which results in good net energy balance.

Advanced biofuel concept introduced

Based on the long and unique experience, VTT has since the beginning of 2004 developed new innovative biomass gasification and gas cleaning technologies for the production of synthesis gas and ultra clean fuel gas.

The experimental work is focused on fluidized-bed gasification, followed by catalytic reforming and optimized gas conditioning processes

The project will end in spring 2007. It is co-financed by Tekes, VTT and nine industrial companies; Andritz, Foster Wheeler Energia, Neste Oil, Vapo, MetsäBotnia, M-Real, Rintekno, StoraEnso, UPM and PVO. The total budget is EUR 4 million.

According to Mr Esa Kurkela, Development Manager at VTT, so far different liquid biofuel production concepts have been assessed.

“We have introduced a promising method for producing transportation fuels with about 50 euro-cents per liter and it will be tested with new development unit. The concept is based on biomass gasification at 200-300 MW scale with efficient energy integration to a pulp and paper mill,” Kurkela says.

Furthermore, product gas reforming has been developed and tested in laboratory scale and scale reformer has been constructed

The industrial partners are considering a parallel industrial demonstration project to be started in early 2007.

Step by step towards commercial plants

The second phase plant, estimated to be launched in 2008-2009, will have the output capacity of 50 MW. This phase involves verifying the risk-free operation of the process.

The third phase, from 2010 onwards, encompasses the construction of a demonstration plant which will be able to cover about three per cent of the transport biofuel demand. The total cost of the development and demonstration phase will amount to approximately EUR 300 million.

First commercial plants are targeted for 2012-14. “In the commercial plant, the estimated production costs of synthetic biodiesel will be 0.45-0.60â‚¬/litre,” Kurkela estimates.

Benefits for Finland and rest of Europe

“When the ambitious objectives are fully reached, we will have the most economic and technically promising concept in Europe for the production of liquid biofuels from a wide biomass basis,” Kurkela says.

This will make it possible to fulfill Finland's national targets of at least 5.75 % share of renewable transportation fuels in Finland and will create considerable potential for both equipment and biofuel export.

“New production technologies will enable the reduction by half of the additional costs incurred for the national economy from the use of biofuels. Additionally, with the domestic supply of raw-materials, the share of bio-energy could amount to as much as 20 per cent by 2020,” Kurkela points out.

In Europe, the estimated market for transport biofuels will be approximately 20 million tons after 2010, which corresponds to an annual turnover of EUR 15 billion.

The results will be utilized first of all by the industrial partners of the project. The new gasification and gas cleaning know-how and test plant can also be utilized in other gasification applications, such as new high-efficiency power plants and future hydrogen economics.

Networking internationally

At VTT, the project is carried out as a co-operation of three research teams. The gasification and gas cleaning team, led by Kurkela, is responsible for the development of gasification and gas cleaning technologies.

VTT is working in this task together with the Laboratory of Technical Chemistry, led by Prof. Outi Krause, of the Helsinki University of Technology. The Liquid biofuels team, Pat Mckeough as principal researcher, is carrying out the feasibility studies and overall process development work.

Furthermore, the project is networking and co-operates with IEA Thermal gasification group, European projects and US/DOE programs.

VTT - Gasification and gas cleaning excellence

Since late 1980s VTT Technical Research Centre of Finland has been working for gasification techniques and implementing gasification facilities which include includes fixed-bed gasification and catalytic cleaning, fluidized bed gasification, fluidized bed gasifier and fluidized bed combustion pilot plants.

The unique features of the pilot plants make it possible to create extremely stable combustion conditions. Combustion parameters can be varied almost independently. For this work, the unique test environment forms a solid basement.

The newt gasification test equipment of 500 kW, located in Otaniemi, Espoo, represents the most advanced technology in Europe. It makes possible for VTT and the industry to conduct joint research on completely new production technology. This will enable new business models for enhancing the competitiveness of Finnish industrial clusters.

The gasification test equipment was inaugurated for the three-year development program by Mr. Mauri Pekkarinen, the Minister of Trade and Industry.

VTT's Director General Erkki KM Leppävuori points out the importance of Finnish pioneering know-how in the fields of energy and environment.

“Especially in environmental technology, Finland has been and, in all likelihood, will be the trend-setter in Europe. The gasification test equipment recently introduced represents another Finnish competitive asset both nationally and internationally,“ Leppävuori points out.

Finland promotes the biofuel issue

Finland is committed to increasing its share of biofuels by 2010 in accordance with EU requirements. The Finnish government has therefore drafted a bill for parliament to consider that will see 5.75 per cent of all fuels are bio-based by 2010.

The group for transport biofuels established by the Ministry of Trade and Industry proposed the launching of a national development program in order to develop new Finnish production technologies for second generation biofuels, and to introduce new biofuels onto the markets by 2015.

The working group report estimated an additional cost of EUR 100 million to be incurred from the 2010 commitment, with a 0.03â‚¬ effect on fuel prices per liter. The estimate is based on the first generation field-originated bio-components.