Algal and Terrestrial Second-Generation Biofuels – Chevron and the New Energy Equation

Paul Bryan VP – Technology Chevron Biofuels & Steve Miller Chevron Fellow Chevron ETC

March 26, 2008 – Scripps Institution of Oceanography
© Chevron 2008

Global Energy Perspectives
Drivers:

• • • •

Global growth in energy demand, fastest in China, India and Latin America; limits on light crude oil Increasing expectations surrounding climate change Concerns about national energy security in the USA & elsewhere (China, India, Australia) Economic development and jobs – local, regional, national, industry sectors

© 2008 Chevron

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As Demand Increases Diversification of Feedstocks will Occur 20 - MMB/D ls fue B io i Li q u oas-t G ds Shale Oil Coal-toLiquids 0- Extra-Heavy Oil and Bitumen 2010 2015 2020 2025 2030 Crude Oil (~100 MMBPD) 2005 © 2008 Chevron Source Data: Consultant Consensus 3 .

Biofuels Energy Balance Btu Spent for One Btu Available at Fuel Pump Btu Spent for One Btu Available at Fuel Pump Fossil Energy Added (NG + Coal + Petroleum) 2 Petroleum Energy Added 2 Fossil Energy Added (NG + Coal + Petroleum) Petroleum Energy Added 1.5 Gasoline Diesel 1 1 Corn Ethanol Cellulosic Ethanol Soy FAME Biodiesel Soy FAME Biodiesel Cellulosic Ethanol Biomass FT Diesel Gasoline 0.5 0.5 0 0 © 2008 Chevron Source Data: Consultant Consensus Biomass FT Diesel Corn Ethanol Diesel 4 .5 1.

CO2 Benefits from Biofuels Wells to Wheels Greenhouse Gas Emissions 30 25 20 15 10 50- Lb CO2 Equivalent Per Gallon Gasoline Corn Ethanol Cellulosic Ethanol Diesel Soy FAME Biodiesel Biomass FT Biodiesel Per Gallon Gasoline Equivalent © 2008 Chevron Per Gallon Diesel Equivalent Source Data: Consultant Consensus 5 .

Second Generation Technology Clusters Feedstock Technology Product : Weak Cost $ / gal Scattered Strengths Strong • Need to capture the entire value chain • Technology / business weakness in key areas • Seek technology & business ALLIANCES © 2008 Chevron 6 Price $/gal $ / dry ton .

land. etc. pests No Competition with food / feed crops Minimal impact on water resources Minimal impact on environment. straw.Biofuels Feedstocks Scale & seasonality issues Collection costs Crop threats . lumber) Forest slash Pulp & paper waste Ag waste (stover.) Jatropha & other new oil crops Switchgrass & other grasses / woods Micro-algae (in ponds or reactors) “Energy” crops (corn. etc. including biodiversity Minimize Direct / Indirect LUC Impact Future: wastes and “on-purpose” energy crops: • • • • • • • • © 2008 Chevron Urban wastes (incl.weather. cane. paper.) 7 .

800*(2) (1) Energy-balanced production plant (2) With external heat / power supply © 2008 Chevron Source Data: Consultant Consensus 8 .000* ~1.Bioethanol Crop Yields (typical / speculative*) Crop Corn (Yellow #2) Sugar Beets Sugar Cane (juice) Switchgrass Miscanthus Sugar Cane (total) Sugar Cane (total) US gal / acre-yr 420 700 870 ~1.500* ~1.900*(1) ~2.

A Preferred Feed for Biofuel Production Long carbon chains are in jet/diesel boiling range • • • • • • © 2008 Chevron Can process (or crack to gasoline) in a refinery Lower oxygen / higher Btu than lignocellulosics Fully compatible with existing fleet & infrastructure Superior properties vs. FAME biodiesel Most compete with food Need to develop a major new source 9 Vegetable oils in limited supply .

Biodiesel Crop Yields (typical / speculative*) Crop Corn (Yellow #2) Soybeans Mustard seed Corn (Mavera™ Hybrid) Sunflowers Peanuts Rapeseed (canola) Jatropha Oil palm Micro-algae © 2008 Chevron US gal / acre-yr 18 48 61* 66* 102 113 127 202* 635 >7.000***** Source Data: Consultant Consensus 10 .

Microalgae © 2008 Chevron 11 .

Algae for Biofuels Non-Competitive with food: • • Can use otherwise non-productive land Needs no fresh water – use saline aquifers or seawater Up to 60 wt% yield is triglycerides. near refinery. fermentor. Some species yield hydrocarbons directly Up to 150x greater productivity per acre than soybeans • 100 sq. rest is mostly glucose polysaccharides. or oil / gas field • © 2008 Chevron Also can consume some other combustion byproducts 12 . power plant. miles could yield up to 500 MM gal/yr diesel Consumes CO2 – could site near CO2 source. e. Not lignocellulosic.g.

enclosed photobioreactors vs.Some Issues with Commercialization • Strain development • Recovery of algae from water • Recovery of oil from algae • Process control: “Food vs. too! Managing Heat balance (+/–) • Production facility Open ponds vs. fuel” applies to algae. novel concepts © 2008 Chevron 13 .

Interesting / unproven 14 • • • • • • • © 2008 Chevron Evaporation Invasive species Containment of GMO’s CO2 utilization Temperature control Nutrient control Pond depth tradeoffs . pipes.” etc.Production Facilities • Open ponds: Low CAPEX ☺ Other Issues: • Enclosed photobioreactors: High CAPEX Solves most open-pond problems ☺ Temperature control can still be an issue • Novel concepts: Plastic bags. “trees.

Algal Cultivation Inexpensive culture systems using shallow (~10 cm deep) ponds stirred with paddle wheels – use otherwise unproductive land © 2008 Chevron 15 .

Saline Water – Plentiful even in many arid regions of the USA Saline aquifers in USA Water with few competing uses Production opportunities from abandoned oil & gas wells Water resources show many intersections with cheap land & CO2 sources © 2008 Chevron 16 .

Algae Oil Yield Advantage Chart illustrates value add of algae to fuels process • Significantly reduced footprint for producing same amount of fuel The amount of land required to replace 50% of the current petroleum diesel usage using corn. © 2008 Chevron 17 . and algae. corn soybean.

National Renewable Energy Laboratory – Chevron Algae CRADA Project Multi-year collaboration Focus on liquid transportation fuels Opportunity to combine NREL’s expertise in algae strain development and processing with Chevron’s catalyst and refining technology and capabilities © 2008 Chevron 18 .

Biofuels Conversion Technology Create technologies to bring biofuels to an industrial scale: • • • • • • © 2008 Chevron Hydrolysis & fermentation Pyrolysis Gasification Emerging technology Catalytic conversion to transportation fuels Supporting technology 19 .

Biotech. pretreatment. Alliance / Biofuels Vertical Integration Only large. Sciences Program. logistics. Process). vast expertise in feedstock production.. Sciences. Georgia Tech . and processing. harvest and process into transportation fuels Texas A&M – Ag. biomass-conversion technology. Colorado State (Ag.. C2B2 – Colorado Center for Biofuels & Biorefining Univ. Energy Technology. biomass identification and development of technologies to grow. NREL – Only U. Top Ag. Crops & Fuels Policy California-based. long experience with conventional fossil-based energy sources. close connection with NREL UC Davis – Ag. fermentation of enzyme hydrolyzed biomass to bioethanol © 2008 Chevron 20 . of Colorado (Biotech.g.Current Research Alliances Weyerhaeuser – Broad Corp. integrated forest product company remaining in USA. Crop Dev.Advanced Manufacturing Technologies Chemical characterization of feedstock. National Lab devoted to renewable energy Second generation biofuels production from biologic pathways (e. Sciences. algae).) & Colorado School of Mines (Thermochemical Conversion). Sci.S.

Strategic Alliances Across the Value Chain * Cr op s/ Se ed s Fe ed st oc © 2008 Chevron Pr et re at k m Su en pp t ly Co nv er si on Pr od uc t 21 .