Advancing cellulosic ethanol - IEA Bioenergy · 2020-05-13 · NOVOZYMES PRESENTATION NOVOZYMES A/S 1 06/11/2007 Advancing cellulosic ethanol Exco 60 Workshop (IEA) Alain Destexhe

NOVOZYMES PRESENTATION

NOVOZYMES A/S

1

06/11/2007

Advancing cellulosic ethanol

ExcoExco 60 Workshop (IEA)60 Workshop (IEA)

Alain DestexheAlain Destexhe

Customer Solution ManagerCustomer Solution Manager

Munich, October 30th, 2007Munich, October 30th, 2007

NOVOZYMES PRESENTATION06/11/20072

The fundamentals

The industrial revolution has been very successful in providing us with incredible amounts of goods

But it has in many places been at great costs to nature and our natural resource base

There is a need for accelerated economic growth to meet the needs of a growing world population

– but with less impact on nature

...so we need to find ways to produce more – with less


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Decoupling from economic growth

Time

Use of natural resources

Economic growth

Enzymaticsolutions

Used in production they can increase the efficiency and yield of a wide range of processes in our society

Enzymes are efficient biological catalysts found in all living organisms

With enzymes we can “produce more with less” and contribute to the decoupling of economic growth and the use of natural resources


Enzymes are used to produce many of the products we use in our daily lives

Enzymes normally:

- Reduce energy & water consumption- Reduce the need for harsh chemicals- Reduce the amount of by-products- Improve yields


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CO2 cost producing 1 kg enzyme:

plus 1–10 kg

We lead the way in finding sustainable solutions for forward-thinking companies- Environmental impact comparisons

CO2 reduction using 1 kg enzyme in different industries:

Minus

Paper

Up to-600 kg

Leather

-40 kg

Food

-200 kg

Oils & fats

-1,300 kgCereal

-3,800 kg

Textiles

-100 kg

Biocatalysis

-3,400 kg

Biofuel

-150 kg

Detergent

-150 kg

Animal feed

-30 kg

MINUS


Undisputed world leader in industrial enzymes

Turnover by region 2006

BASF4%

Danisco20%

Novozymes46%

Others24%

DSM6%

Total market value 2006: DKK 15 billion

Source: Novozymes’estimate 2006


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Novozymes - brief introduction

§ World leader in industrial enzymes & microorganisms

§ Enzymes account for 95% of turnover

§ Market leader in all main industries

§ More than 600 products sold in 130 countries in 40 different industries

§ ~13% of sales invested in R&D

§ More than 5,000 granted or pending patents

§ Main production in USA, China, and Denmark

§ Sales USD ~1.2bn (FY2006)

§ Strong profitability (19.7% FY2006) and solid generation of cash flow

§ More than 4,500 employees


Novozymes and the biofuels area

§ 20–25% growth over next 3–4 years

§ Largest supplier of enzymes to the fuel ethanol industry

§ Mainly a US business but Europe & Asia nicely growing from lower levels

§ RSH-process, reduces energy need, and improves yields from corn-based production

§ Collaborations in biomass with industry leaders:

§ POET (formerly Broin) in the US

§ COFCO in China

§ Abengoa in Europe and US

§ CTC in Brazil

§ Cellulosic ethanol still 4 years down the road


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Growth of Bioethanol: NZ ViewGrowth of Bioethanol: NZ View

Source:

Fuel Ethanol growth will be dominated by

sugarcane and starch through 2020.

Biomass takes over as starch and sugar become

expensive and scarce.

Unless a breakthrough happens…


Municipal wasteNewsprint, office paper

Agricultural residuescorn stover, bagasse, rice straw,

energy crops

Tree residuesmill discard, urban trimming

Industrial wastepaper sludge, spent grainsCellulosic

ethanol

Pre-treatmentPhysical/chemical disruption, size reduction,

hemicellulose, lignin depolymerization

Cellulose Hemicellulose Lignin

Enzyme hydrolysis Enzyme or acid hydrolysis

Glucose Pentose sugars

Ethanol, 1,4 diacids, PLA etc.

Ethanol, 1,4 diacids, etc.

Chemical feedstockor energy


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oo SelectionSelection--collectioncollection--storagestorage

oo Broad spectrum of Broad spectrum of viable optionsviable optionsoo Infrastructure Infrastructure requiredrequiredoo Ease of preEase of pre--treatmenttreatment

Critical cost factors:Critical cost factors:àà Collection costCollection cost

àà (Density)(Density)

Feedstock Pre-treatment Enzymehydrolysis

Productsco-products

Fermentation

oo Physical disruptionPhysical disruption

oo ThermoThermo--chemical chemical

oo Many candidatesMany candidates--no clear winnerno clear winner

oo Toxicity of byToxicity of by--products to products to hydrolysis hydrolysis /fermentation/fermentation

Critical cost factors:Critical cost factors:

àà Capital costCapital cost

àà DigestibilityDigestibility

àà Yield of C5 sugarsYield of C5 sugars

àà FermentabilityFermentability

~ USD 0.13~ USD 0.13–0.18/Gal (NREL 0.18/Gal (NREL process economic process economic model/metric) model/metric) **

oo CoCo--location location requirement? requirement?

oo Major capital Major capital investment investment requiredrequired

oo Hydrolysate Hydrolysate tolerancetolerance

Critical cost Critical cost factors:factors:

àà Enzyme loadingEnzyme loading

àà Enzyme priceEnzyme price

oo C6 & C5 C6 & C5 conversionconversion

oo Hydrolysate Hydrolysate tolerancetolerance

Critical cost factors:Critical cost factors:

àà Ethanol yieldEthanol yield

Critical cost factors:Critical cost factors:àà ConcentrationConcentrationàà PurityPurityàà ValueValue

Many challenges remain to be solved Many challenges remain to be solved –– integration!integration!

* NZ estimates = $0.47-0.93/gal


-$1.00

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

Starch* Cellulose 1999 Cellulose 2005

EnzymeFeedstockVariable Operating CostsLabor, Supplies and OverheadDepreciationCo-productsTotal

Enzyme cost no longer dominates the picture

- Cost comparison after the BioEnergy Project: grain versus biomass in USD/gallon ethanol, April, 2005*

*Modified from “Determining the Cost of Producing Ethanol from Corn Starch and Lignocellulosic Feedstocks”, NREL/TP-580-28893 joint USDA, NREL study released in October 2000.

Major cost reduction in enzyme cost

Estimate for Nth-plant production, current cost based on lab-scale is USD 3–4/gal


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Novozymes’ R&D in cellulosic ethanol

DOE/NREL/Novozymes 2001–2004

§ Enzyme cost reduction on NREL acid pre-treated stover

§ USD 17.8 million grant

§ Announced 30-fold cost reduction based on enzyme improvements and process development


Ethanol Production:Ethanol Production:Technology EvolutionTechnology Evolution

Raw material Production process

Sugarcane Extraction Fermentation

Corn, wheat,rice, rye Milling FermentationCooking

Corn1-step(RSH)

Milling Fermentation

Residues= Feed

Residues= Feed

BIO

ETH

AN

OL

Waste/cellulosicBiomass

Collection FermentationPretreatment

Residues= steam gen.

1. generation

1. generation

1. generation

2. generation

Residues= steam gen.

Enzymes

Enzymes

Enzymes


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1st generation bioethanol versus 2nd generation bioethanol1st generation bioethanol versus 2nd generation bioethanol

§ 2nd generation bioethanol will prove to be a very attractive replacement for gasoline for both economic and environmental reasons*

§ The 1st generation bioethanol market must be established in order to facilitate (logistics, filling stations, etc.) the transition towards 2nd generation bioethanol

§ Novozymes is committed to be the innovation engine in both 1st and 2nd generation bioethanol production with selected partners

*JRC/Concave/Eucar ”Well-to-Wheel”( 2005)


Enzyme improvement

Hydrolysis 50g Lot 3 NREL PCS hydrolysis ~168 hr

0

10

20

30

40

50

60

70

80

90

100

110

0.0 0.2 0.4 0.6 0.8 1.0

Relative Enzyme loading

Co

nve

rsio

n (

per

cen

t)

NS50052

NS50031

Celluclast:NZ188

Celluclast:NZ188, 38ºC~ 6X


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The total process view-- Developments in one area can impact other areas --

Enzyme dose

Enzyme cost

Sugar cost

Solids level

EtOH level

Viscosity Recovery cost

Biocompatibility

Xylan hydrolysis

Novel organisms

plant capital cost

subsidies

Feedstock Pretreatment EnzymeHydrolysis

ProductsCo-Products

Fermentation


Fungal Cellulase: A complex, interacting enzyme mix

CBH I ~60%

CBH II ~15%

EG III

EG I, II ~20%

RNR

BG

?

CBH I ~60%

CBH II ~15%

EG III

EG I, II ~20%

RNR

BG

?

CBH I ~60%

CBH II ~15%

EG III

EG I, II ~20%

RNR

BG

?

CBH I ~60%

CBH II ~15%

EG III

EG I, II ~20%

RNR

BG

?

CBH I ~60%

CBH II ~15%

EG III

EG I, II ~20%

RNR

BG

?


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0

10

20

30

40

50

60

70

80

0 5 10 15 20 25

Time (hr)

Cel

lulo

se C

on

vers

ion

(%

)

T. reesei, 1XZ broth, 1X

T. reesei + Z broth mixed 1:1, 0.5X

Fungal proteins that work synergistically with T. reesei cellulase

~2X reduction in enzyme loading

PCS hydrolysis to glucose


Cellulase enzyme loading reduced ~2X by addition of Ta 61A


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GH61 effect on various substrates

0.90

1.00

1.10

1.20

1.30

1.40

PCS SERS SEWS SEP OSLPP FP

Substrate

Deg

ree

of

Syn

erg

yTa61A

Tt61B

Tr61B


General Challenges for enzyme supply

Technical Challenges of Diversity!

§ Variable Feedstocks

§ Variable Process scenarios

§ Pretreatments

§ Fermentation organisms

One example:

A lower capital cost pretreatment that does not solubilizehemicellulose


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Good progress has been made, but…

§Many pretreatments do not fully solubilize the hemicellulose fraction in biomass

§ These pretreatments are attractive as they generally have lower capital cost and are friendlier to fermentations

§Hemicellulose deconstruction requires many more enzyme activities!

§Hemicellulases are generally poorly expressed relative to cellulases, so they cost more!

§Our goal is to devise a hemicellulase mixture that is cost effective


Arabinoxylan degrading enzyme activitiesArabinoxylan degrading enzyme activities


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Novozymes and cellulosic ethanol

§ Extensive R&D, market, and technical expertise

§ Extensive leverage from our manufacturing, R&D, and marketing capabilities in Europe, North America, Latin America, India, and China

§ Development of novel cellulases through an unprecedented R&D effort

§ Development of several novel hemicellulases as well

§ Putting enzymes to work through partnerships


The next steps in cellulosic ethanol

§ Four years before commercially viable production process

§ Enzymes:

§ Scale-up is to take place

§ Evaluation of enzyme production set-ups

§ Further improvements in enzyme performance

§ Business model clarity to be established

§ Integration of process steps

§ Reduction in capital costs

§ More flexible pilot plants using a wide feedstock range

§ Continued governmental support


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Wrap up

§ Enzymes are key to a cost-effective and sustainable development of the fuel ethanol industry and Novozymes is well positioned:

§ Strong track-record

§ Strong R&D platform

§ Strong collaboration partners

§ Strong and unprecedented commitment

§ Novozymes is committed to being the innovation engine in both 1st and 2nd generation bioethanol production

§ Commercialization of cellulosic ethanol is expected within 4 years from now

§ A lot has been achieved already – a lot more still has to happen - and work accelerates

§ Learn more at: www.biomass.novozymes.com


Thank you

Documents

Advancing cellulosic ethanol - IEA Bioenergy · 2020-05-13 · NOVOZYMES PRESENTATION NOVOZYMES A/S 1 06/11/2007 Advancing cellulosic ethanol Exco 60 Workshop (IEA) Alain Destexhe