RE: Green Energy Businesses

To: Ollie

From: Tom

July 31, 2008

RE: Green Energy Businesses

I’d thought I’d summarize my research and thought processes before describing a preliminary work schedule. I’m looking at three overlapping business models related to green energy: Wood to electricity, wood to fuel and sludge to fuel. For wood to electricity, we were envisioning a consumer product of reasonable size and cost, similar to a diesel generator. To convert treatment plant sludge to fuel we want to specifically investigate the possibility of using a subcritical water process (liquefaction). We did not go into specifics about wood to fuel but there are a number of companies and organizations already doing this that provide a good starting point.

Although there is renewed interest in bio-fuels several technologies for conversion of various feedstocks have been available for some time and are already in commercial use. In addition to reviewing the research you forwarded, I’ve focused on finding companies who’ve been at this for a while and evaluating the state of their technology.

Wood to Electricity

As I’ve indicated there is a pre-commercial product (www.gocpc.com) that utilizes gasification and combustion of the syngas in either an internal combustion engine, sterling engine, microturbine or fuel cell. The most recent installation listed on the website occurred in late 2007, at a cost of $300,000 to $400,000 per unit. That’s quite a bit more than you would pay for a residential, natural gas fuel cell and they’ve been at it since 1995. Moreover, the unit is fairly large (16m x 16m footprint) and frankly seems quite far from commercial viability.

A number of companies are using (fast) pyrolysis to convert wood to bio-crude for downstream processing into biodiesel. This raises the possibility of integrating both processes into a single unit combined with a diesel generator. Large scale plants (www.dynamotive.com) employing pyrolysis for bio-crude use fluidized beds exclusively. This might be impractical for a residential size unit, however other methods exist. Ablation processes have been successful on a small scale. In ablation, wood particles are accelerated against a hot metal surface (such as a rapidly rotating plate) resulting in pyrolysis of the particle.

Next Steps:

·  Determine if ablation pyrolysis by-products (coal/char/syngas) can provide sufficient energy to fuel the process (only about 75% in fluidized bed).

·  Find lab doing ablation pyrolysis - contact/visit

·  Model sub-processes and determine feasibility

·  Develop a continuous/synchronous process for wood to fuel to electricity.

Sludge to Fuel

I’ve spent some time examining the hydrothermal liquefaction thesis by Midgett at LSU. He’s had some good success converting animal waste to biofuels with minimal energy input and has detailed every step of the methodology so that it could be used as a blue print for a lab scale process. His experimentation methodology was weak however and somewhat random so there is a potential for much more information to be gained.

I forwarded you a paper from the HVC Group who convert biomass (including organic municipal waste) to energy using hydrothermal liquefaction. Additionally, I found an Israeli company claiming to convert sludge to bio-crude using liquefaction –www.bio-petrol.com. The web site is not clear but it looks like they’ve built a lab scale process and are seeking $400K to complete the pilot scale.

Next Steps:

·  Develop specifications for lab scale process (site requirements, equipment, etc)

·  Compare liquefaction with pyrolysis and gasification in terms of energy conversion, efficiency and fuel costs at intermediate stages.

Wood/Biomass to Fuel

Companies such as Dynamotive and Agritherm are using pyrolysis and appear to be on their way to profitability. In its’ Guelph plant, Dynamotive claims that it can process 66,000 tons/yr into 130,000 equivalent barrels of oil. Very roughly biomass costs between $25 and $50 per ton. With oil at $122 a barrel the difference is a revenue of $12.5 million.

Next Steps:

·  Conduct plant/lab visits to ascertain real problems

·  Develop cost/energy conversion models to compare with gasification and liquifaction

·  Determine specifications for lab scale process

My planed activities over the next few months are designed around the primary of characterizing the state of biomass/sludge processing as quickly as possible to assure that we don’t repeat mistakes, direct our efforts towards key technology roadblocks and ultimately design the most efficient and cost effective processes possible. Internet research is fruitful but generally hides the subtle issues that keep corporations from commercial viability. Over the next several weeks I’d like to begin a program of site visits to a variety of locations listed below. In parallel I’d like to start the process of creating a bio-process development lab and continue researching to develop improved energy/cost models.

Continued research and Energy/Cost Model Development

·  In reviewing the sludge economics spreadsheet you forwarded it occurred to me that we need a more detailed energy cost model for all of the conversion processes we’re interested in (liquefaction, pyrolysis, gasification, biocrude to biodiesel) and a standardized method for comparing them. This will involve additional research to collect data on conversion efficiencies, heating values and fuel pricing as well making the correct calculations.

Plant Contacts/Visits

The following is list of plants/organizations I’d like to contact and possibly visit:

·  Prof. George Huber at UMass-Amherst; lab-scale pyrolysis process http://www.ecs.umass.edu/index.pl?id=4555

·  Dynamotive, Guelph, Ontario; production scale pyrolysis process http://www.dynamotive.com/en/technology/index.html

·  Changing World Technologies Inc, West Hempstead, Long Island; Thermochemical Conversion http://www.changingworldtech.com/what/index.asp

·  Bio-Petrol, Israel; Subcritical liquefaction of treatment plant sludge, http://www.bio-petrol.com/main.html

·  HVC Group, Netherlands, SubCritical Liquification of biomass; http://babelfish.yahoo.com/ with the website www.hvcgroep.nl

·  PNNL

·  NREL

Bio-Process Lab Development

Working with a friend I’ve put together an initial equipment list (see attached) for a process development lab. Note that initially we would probably work with a contract lab for analysis rather than purchase GC’s and bomb calorimeters at the outset. The Reactor Assembly unit listed from Autoclave Engineers is multifunctional and could be used for both pyrolysis and liquefaction studies.

Work Schedule

I envision many of these activities occurring simultaneously and changing as new information becomes available. The following is very rough estimate of my monthly activities over the next three months:

Month 1

·  Conduct at least two site visits to bio fuel labs/manufacturers

·  Model/analyze pyrolysis based wood/diesel generator for feasibility assessment. Investigate other methodologies (patent search)

·  Contact vendors and get formal quotes for Bio Process Lab. Research possible locations, formalize plan, contact/visit vendors

Month 2

·  Conduct at least two additional site visits to bio-fuel labs/manufacturers

·  Decide on location for bio-process lab. Start to procure equipment.

·  Down select process concept for wood-to-electricity

·  Start installation of bio-process equipment

Month 3

·  Conduct at least two additional site visits to bio-fuel labs/manufacturers

·  Continue installation and testing of bio-process equipment.

Additional Topics for discussion:

-  To what extent are we interested in purchasing small companies or licensing technology?

-  Are we interested in government funding (DOE, NYSERDA, etc)?

-  In arranging visits can I drop the name ‘Tiandi Growth’?

-  When we reach the point of testing in the bio-process lab, we’ll need to add someone (safety).

Attachment

Bio-Process Development Lab Equipment List:

Estimated Cost

Reactor Assembly (http://www.autoclaveengineers.com) $35,000.00

Reactor Vessel plus all connections,

sensors, data acquisition, pressure

regulators etc

Apparatus for measuring heating value of product oils

Bomb Calorimeter $2,500.00

Oxygen tank $150.00

Regulators $250.00

Lines etc. $250.00

Apparatus for characterizing output

Various lab supplies $1,000.00

Beakers, Flasks, Filter Funnels

Graduated Cylinders, Sample Containers

Solvents, Acetone, Ether $100.00

GC/mass spec or $25,000.00

HPLC $25,000.00

Drying oven

Safety

Carbon monoxide detectors $25.00

Eye Wash

Chemical Cabinets $150.00

Gloves $25.00

Waste disposal

Safety Glasses $15.00

Blast Shield $100.00

Facility Requirements

Power (120V 60Hz, Possibly 230V 1Ph ?), Water ( tap for cooling, misc), Water Deionizer, or purchased DI, Drain, Ventilation, Sink

Misc.

Containers for feedstocks

Work Bench $300.00

Misc Tools $200.00

Lab notebooks $100.00

$90,165.00