Fully integrated agricultural forest products biorefinery in southeast arkansas l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 21

Fully Integrated Agricultural & Forest Products Biorefinery in Southeast Arkansas PowerPoint PPT Presentation

Fully Integrated Agricultural & Forest Products Biorefinery in Southeast Arkansas ARKANSAS GENERAL ASSEMBLY JOINT INTERIM COMMITTEES Tommy Smith, Cypress Bend Mill Manager Potlatch Corporation February 27, 2006 Fully Integrated Agricultural & Forest Products Biorefinery in Arkansas

Download Presentation

Fully Integrated Agricultural & Forest Products Biorefinery in Southeast Arkansas

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Fully integrated agricultural forest products biorefinery in southeast arkansas l.jpg

Fully Integrated Agricultural & Forest Products Biorefinery in Southeast Arkansas

  • ARKANSAS GENERAL ASSEMBLY

    JOINT INTERIM COMMITTEES

  • Tommy Smith, Cypress Bend Mill Manager

  • Potlatch Corporation

  • February 27, 2006


Fully integrated agricultural forest products biorefinery in arkansas l.jpg

Fully Integrated Agricultural & Forest Products Biorefineryin Arkansas

Meeting Objectives

  • Enhance attendees understanding of

    • The fully integrated agricultural and forest products biorefinery

    • Potential opportunities and benefits for Arkansas

  • Next Steps

  • Partners and Supporters


Background l.jpg

Background

The Energy Policy Act of 2005 has provisions to encourage the annual production of 1 billion GPY of biofuels from cellulosic sources by 2015.

  • Primary feedstocks - forest and agricultural residues and energy crops

  • Thermochemical (gasification) technology can effectively process biomass feedstocks, be built on a large scale, achieve high conversion efficiencies, and be rapidly replicated nationwide.

  • Working together, the agricultural, petrochemical, and forest products industries have the resources, infrastructure, and technical skills needed to produce, collect, and convert the target biomass at commercial scale.


Background continued l.jpg

Background(Continued)

  • Technologies currently exist to build a fully integrated biorefinery capable of producing transportation grade fuels from untapped sources of biomass.

  • Using thermochemical (gasification) technologies, virtually any biomass feedstock can be converted to higher value products.

  • Sufficient low cost biomass exists (agricultural residues, forest residues, pre-commercial thinnings, woody debris, and black liquor) to support numerous biorefineries in Arkansas and the U.S.

  • In addition, many more could be deployed in areas such as the Delta region using dedicated energy crops.


Agenda 2020 integrated forest products biorefinery ifbp concept l.jpg

Agenda 2020: Integrated Forest Products Biorefinery (IFBP) Concept

Recovery/ Power Plant

Building Products Mill

Paper, Board, Other Mills

Pulp Mill

Forest

Pulp

Energy

Energy

Chips

Black Liquor

Optimized Plantations

Fuels/ Chemicals

Fuels/ Chemicals

Hemi Extraction and Conversion

Gasifier

Biomass

Boards, Paneling,

Etc.

Ethanol,

Polymers,

Etc.

Ethanol,

DME,

Others

Paper, Boxes/Cartons, Tissue/Diapers, Specialties


National perspective integrated forest products biorefineries l.jpg

National PerspectiveIntegrated Forest Products Biorefineries

  • Fully developed and commercialized, IFPB technologies have potential for significant national benefits:

    • Diversified, more secure national energy supply

    • Significant rural economic development

    • Geographically distributed supply source

    • Reduced environmental impacts

    • Improved energy efficiencies


National perspective continued l.jpg

National Perspective(Continued)

  • Quantified Potential Benefits

    • $9 billion/year new revenues throughout industry

    • 175 MM bbl/year in energy savings

    • 150 MM tons/year positive impact on carbon balance

    • 165,000 new jobs in primarily rural communities


Arkansas perspective fully integrated agricultural forest products biorefineries iafpb l.jpg

Arkansas PerspectiveFully Integrated Agricultural & Forest Products Biorefineries (IAFPB)

  • Fully developed and commercialized, IAFPB technologies have potential for significant statewide benefits:

    • New markets for existing industries

    • Additional revenues for business and state

    • Improved economics for existing agricultural & forest industry

    • Significant rural economic development


A fully integrated agricultural and forest products biorefinery iafpb at cypress bend l.jpg

A Fully Integrated Agricultural and Forest Products Biorefinery (IAFPB) at Cypress Bend

  • The thermochemical (gasification and gas-to- liquids technologies) and bioconversion (fermentation) pathways would be used to process biomass and black liquor.

  • The eventual biorefinery would be sized to convert up to 8,000 dry TPD of forest and agricultural residuals and 1,300 dry TPD of black liquor solids into higher value biofuels.

  • It is anticipated that the biorefinery would eventually include the equipment needed to extract hemicellulose from the wood chips prior to pulping and convert it to ethanol.


Flow diag l.jpg

Flow Diag.


Potential biorefinery products l.jpg

Potential Biorefinery Products

  • The fully developed biorefinery could produce up to 10,000 barrels/day of transportation grade biofuels (eg. FT diesel, ethanol, others).

  • Most of Cypress Bend’s energy needs would be met from biorefinery waste heat.

  • Some of the syngas would be used in the plant’s existing lime kiln.

  • This project would also indirectly reduce green house gas emissions by an estimated 2MM TPY.

  • The ash may be recovered and converted to higher value chemicals.


Cypress bend as the first site l.jpg

Cypress Bend as the First Site

  • Single line Pulp & Paper Mill

  • Produces 300,000 TPY of bleached coated food board

  • Consumes 550,000 dry TPY of wood chips

  • 350 employees

  • Two boilers

  • One gas-fired lime kiln

  • Technical skills exist to operate complex chemical processes

  • Potlatch has been developing and implementing energy conservation strategies to reduce costs.


Cypress bend as the first site continued l.jpg

 Cypress Bend as the First Site (Continued)

  • The mill could utilize the waste heat from the biorefinery to reduce natural gas use.

  • There is adequate agricultural and forest based biomass available within 100 miles to support a refinery at Cypress Bend.

  • Cypress Bend is located on the Mississippi River in the Southeast corner of Arkansas, making fuel shipment and feedstock deliveries by barge possible.

  • The mill is also located in a sparsely populated, economically depressed area where local and state governments are eager for industrial development.

  • Cost models indicate ROI would be acceptable


Slide14 l.jpg

Risk

  • Partners are needed to minimize financial and technical risk.

    • This would be a first-of-a-kind plant. No one has attempted to marry biomass gasifiers to a gas-to-liquid plant and integrate both units with a pulp mill.

    • Potlatch has limited expertise in operating gas-to-liquid technologies.

    • Potlatch has limited experience marketing liquid biofuels.

    • The project would be large and technically complicated.


Path forward l.jpg

 Path Forward

  • Validate the preliminary system design and assumptions (a detailed assessment is in process)

  • Break the project into three major phases

    • Phase I is focused on producing biofuel from biomass

    • Phase 2 would focus on producing fuels from black liquor

    • Phase 3 would focus on extracting the hemicellulose from wood chips prior to pulping and converting it to ethanol

  • Target support / partnerships:

    • A company that has gas-to-liquids expertise (in process)

    • A company that has liquid fuelsmarketing expertise

  • Government support needed to off-set first-generation risks

    • Grant to offset biorefinery capital cost

    • Loan guarantee(s) for other debt


First commercial biorefinery phase i scope l.jpg

First Commercial Biorefinery Phase I Scope

  • Gasification and gas-to-liquids technologies would be used to process the biomass.

  • The gasifiers and GTL plant would be sized to significantly reduce the mill’s current consumption of natural gas.

  • Up to 1,500 dry TPD of forest and agricultural residuals will be converted into higher value biofuels.

  • Feedstocks analyses show agricultural residues could supply 40% to 50% of the feedstock.

  • The phase 1 plant could produce up to 2,000 barrels/day of transportation grade bio-fuels (e.g., FT diesel, ethanol).


Potlatch s intention l.jpg

Potlatch’s Intention

  • Potlatch’s full commitment to this initiative is subject to:

    • Positive outcome of the feasibility assessment

    • Engaging an experienced GTL partner

    • Identifying markets for biorefinery products

    • Securing funding to move forward

      • Including government support to off-set

        first-generation risks

    • Management approval


Public policy considerations l.jpg

Public Policy Considerations

  • Incentives for landowners and farmers

    • energy crop production

    • field residue harvesting

  • Renewable fuel standard (state/federal)

  • Green power purchase incentives

  • Biomass transportation considerations

  • Strengthen SE Arkansas infrastructure

    • I-530, I-69, Great River Bridge, Yellow Bend Port, Wilmar Intermodal, Rail Options/Upgrades


Feasibility assessment partners l.jpg

FeasibilityAssessmentPartners

  • Potlatch

  • Arkansas Department of Economic Development

  • American Forest and Paper Association

    • Agenda 2020 Technology Alliance

  • Winrock International

  • University of Arkansas at Monticello

  • Price Industries


Supporters l.jpg

Supporters

  • Crossett Economic Development Foundation

  • Riceland Foods Foundation

  • McGehee/Dermott Industrial Corporation

  • Dumas Chamber of Commerce

  • Merchants and Farmers Bank of Dumas

  • McGehee Industrial Foundation

  • McGehee Bank

  • First National Bank of McGehee


Letters of support l.jpg

Letters of Support

  • AR Congressional Delegation

  • Governor Huckabee

  • Delta Regional Authority

  • AR Farm Bureau Federation

  • Murphy Oil

  • Georgia Pacific, Crossett Operations

  • Chicot-Desha Metropolitan Port Authority

  • Pulp and Paperworkers’ Resource Council

  • Arkansas Association of Conservation Districts

  • Industrial Development Organizations

    • Bradley County

    • Monticello

    • Southeast Arkansas Cornerstone Coalition


  • Login