REDUCTION OF CO2 EMISSIONS FROM MOBILE SOURCES BY
                 ALTERNATIVE FUELS DERIVED FROM BIOMASS
                 Robert H. Borgwardt(1), Meyer Steinberg(2), Yuanji Dong(3)

        (1) U.S. Environmental Protection Agency, Research Triangle  Park, NC 27711
                  (2) Brookhaven National Laboratory, Upton, NY 11973
                    (3) Hydrocarb  Corporation, New York, NY 10018
ABSTRACT

       The Energy  Policy Act of 1992  seeks to displace 30 percent of the  U.S. petroleum

requirement by the year 2010 with an alternative that, among other things, has greatest impact

on reduction of greenhouse gas emissions.  An alternative fuel derived from biomass is probably

the most practicable method of achieving that objective.  This paper discusses  process options

for utilizing biomass to obtain greatest reduction of carbon dioxide (CO2) emissions from motor

vehicles at least cost.  Emphasis is on the Hydrocarb process, currently under evaluation  by the

EPA  for  production  of  methanol from  short-rotation  woody crops  using  natural  gas as

cofeedstock.  Comparison with other process options is made in terms  of feedstock availability,

cost of conversion to liquid fuel, amount of petroleum that can be displaced, and competitiveness

with gasoline price. The analysis indicates that for a given supply of biomass, more displacement

of petroleum  can be achieved through methanol production processes than those for ethanol. If

the performance projections can be achieved, the Hydrocarb process should displace 13 percent

more  gasoline and obtain 66 percent more CO2 reduction than the best alternative option for

producing alcohol  fuel from  the same feedstocks.   Assumed trends in  feedstock costs'are

expected to favor methanol relative to the equivalent price of gasoline.
Prepared for presentation at 1993 AIChE Summer National Meeting, Seattle, Washington

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INTRODUCTION




       Several recent events have begun to focus attention on alternative transportation fuels in




the U.S.  The Clean Air Act, as amended in 1990, provides an initial impetus for the production




of clean  fuels such as ethanol, methanol, and reformulated gasoline in order to reduce toxic




emissions in urban areas.  The National Energy Strategy (U.S. Department of Energy, 1991)




showed that an alternative fuel of some kind will be needed in large amounts by the year 2000




due to declining petroleum reserves.  Specific requirements for identifying the best alternative




fuel for broad use were outlined in the Energy Policy Act of 1992  (U.S. Congress, 1993) which




establishes goals of 10 percent displacement of petroleum by year the 2000 and  30 percent by




the year 2010. According to the Act, the desired alternative should  have maximum displacement




of oil imports and greatest benefit to the  national economy.  Most importantly  to the  present




discussion, the Act also specifies that  greatest reduction of greenhouse gas emissions should be




achieved.  Since CO2 is the  predominant greenhouse  gas  emission associated with  use of




automotive  fuels,  the focus  of  this paper  is  the reduction of  CO2  emissions from  the




transportation  sector.




       The principal criteria that must be taken into account when evaluating potential alternative




fuels  are therefore:  the extent to which  petroleum might be replaced,  the degree  to which




greenhouse gas emissions might be reduced, and-as always--the cost of production. ~ It would




also be  preferable,  if  possible,  that it  be  liquid, compatible  with  the  existing  refueling




infrastructure, and producible from domestic  resources,  and  that it reduce the toxic emissions




associated with petroleum fuels. In the near term, the most practicable approach for reduction




of greenhouse gas emissions from mobile  sources is a fuel derived from biomass, produced on

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a renewable and  sustainable basis.  As  summarized in Table 1, a number of processes  can




produce alcohol fuels from biomass, the most promising of which, from the standpoint of cost,




are the enzymatic hydrolysis process  for production of ethanol and the  Battelle  Columbus




Laboratory (BCL) process for production  of methanol by indirect gasification of biomass. Both




of those processes are intended to utilize as feedstocks woody biomass cultivated as short-rotation




woody crops (SRWC) to be harvested every 3-4 years for the specific purpose of conversion to




liquid fuels.
TABLE 1.  CURRENT OPTIONS FOR PRODUCING ALCOHOL FUELS FROM BIOMASS
Process Alcohol production Reference
cost, $/GJ (LHV)a
Ethanol by acid hydrolysis
Ethanol by enzymatic hydrolysis (cellulose)
Methanol by steam-oxygen gasification
Ethanol by fermentatiion of corn
Ethanol by enzymatic hydrolysis (cellulose + xylose)
Methanol by indirect gasification (BCL process)
24.4
22.3
13.4
13.3
11.1
9.6
Wright etal., 1985
Wright, 1988
Reed, 1981
Jones, 1989
Wyman et ai, 1992
Larson and Katofsky, 1992
'Lower heating value
       In 1990, the Brookhaven National Laboratory proposed another route to the Environmental




Protection Agency for production  of methanol from  woody biomass  using  natural  gas  as




cofeedstock.  The potential advantages of the process,  in addition to cost,  are higher yield of




alcohol fuel from a given biomass supply and therefore a greater displacement of petroleum. To




the present time, the EPA has been supporting theoretical and experimental studies of the process,

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called Hydrocarb, that are summarized in this paper and compared with the best alternatives of

Table 1 in terms of the principal criteria for evaluating  those alternatives, beginning with

production cost.


BIOMASS COST

       For most biomass conversion processes, the cost of feedstock is  the dominant factor

affecting the production cost of alcohol fuels.  The cost  of biomass is the sum of its production

and transport costs.  Data published by Strauss et al. (1989) for least-cost SRWC production in

the Pennsylvania area are given as $65.71/(dry)Mg*. The  cost of cultivating the biomass was

given by Strauss in 1989 as $35.41/(dry)Mg;  more recent data (Strauss et al., 1990) show a

reduction in  cultivation cost to  $32.40/(dry)Mg for an  optimized, 3-year  rotation period  with

fertilization.   Assuming a chipping cost of $6.80/(dry)Mg as reviewed by Kenney (1991),  the

breakdown of current production costs is shown in Table 2.


     TABLE 2.  BREAKDOWN OF PRODUCTION COSTS FOR WOODY BIOMASS


                                         $/(dry)Mg
                Cultivation                  32.40
                Harvest/baling                8.00
                Loading/unloading            4.20
                Chipping                    6.80
                Other                       3.00
                Wet storage                 10.20
               Total production cost       $64.60
    *(dry)Mg = dry metric tonne

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The Table 2 estimate can be compared with other published values obtained from different test




sites such as those of Perlack and Ranney (1987) which averaged $62.87/(dry)Mg for six regions




of the U.S.  and Ismail  and Quick (1991) for poplar tree plantations in Canada.  A  value of




$63.70/(dry)Mg is therefore assumed here as representative of the current SRWC production cost.




       An examination of biomass transport costs in the U.S. was recently published by Bhat el




al. (1992) which  are given as:




          U.S. dollars/(wet)Mg = (3.65 + 0.62^/18.14                   (1)




for woody crops, and




          U.S. dollars/(wet)Mg = (34.08 + 0.62rf)/15.42                   (2)




for herbaceous crops, where




               d =  the round-trip distance (km) between  farm  and  processing plant




                   (or  twice the mean farm-to-plant radial distance).




The moisture content of fresh cut biomass is generally about 50 percent.  If, as  is true in many




cases, the biomass yield per hectare and the production cost of herbaceous crops are similar to




those of woody  crops,  it is  clear from  the  above equations  that  woody  crops will  provide




feedstock at the least cost for biomass delivered to large energy conversion plants.




Delivered Cost of Biomass




       The delivered cost increases with transport distance which is a function of the size of the




biomass supply region from which the feedstock is obtained. Since the size of that supply region




is a function of the plant size, one must begin with a choice of plant size in order to calculate




a methanol production cost. The delivered costs of biomass for plant sizes corresponding to 9090




and 5300 (dry)Mg/day at a 90 percent operating factor are presented in Table 3.   Selection of

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these plant  sizes is based on available data to be  used  for estimating Hydrocarb costs and

comparing those costs with other published data, to be discussed later.

       Given a biomass production cost of $63.70/(dry)Mg, we  assume that the biomass supply

region consists of three concentric sectors surrounding the  plant site (Figure  1):   the nearest

sector contains 18 percent of its total area dedicated to plantations producing SRWC; that sector

is  surrounded  by a  second sector containing 9 percent of  its area dedicated to SRWC, and the

third, outermost, sector of the supply region has 3 percent  of  its  area  planted in  SRWC.  In

accordance with the current range of SRWC yields obtained in research field trials (Wright ct a!,,

1992), the productivity is assumed to  be II (dry)Mg/ha-yr in each  sector  with  90 percent

recovery of the biomass produced. These assumptions yield the results shown in Table 3 which

indicate that  transport cost will  add 10-13 percent to the cost  of biomass production.  These

delivered  costs of feedstock will be used  to compare alcohol production costs for  the process

options.
                                                     Biomass        % of total area
                                                      supply       dedicated lo biomass
                                                      region           production
                                                        A
                                                        B
                                                        C
18
9
3
         Figure 1.  Assumed layout of biomass supply region for 9090 (dry)Mg/day
                   energy conversion plant.

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                TABLE 3.  DELIVERED COST OF WOODY BIOMASS,
                    INCLUDING PRODUCTION AND TRANSPORT
                                                         Size of energy conversion plant,
                                                                   (dry)Mg/day
                                                               5300           9090
Maximum radius of biomass supply region, km                     91.7            120
Production cost, $/(dry)Mg                                      63.70           63.70
Average transport cost (eq. 1), $/(dry)Mg                          7.39             9.56
Total delivered cost, $/(dry)Mg                                  71.26           73.43
THE HYDROCARB PROCESS

       The Hydrocarb process, conceived at the Brookhaven National Laboratory, has  been

under evaluation by the EPA (Steinberg et al., 1991; 1993) as a new source of transportation fuel

that could reduce CO2 emissions from  mobile sources and meet future needs for a clean

alternative fuel on a large scale. The optimum flow sheet, developed by computer simulations

to maximize methanol yield and minimize cost, is illustrated in Figure 2. Biomass and natural

gas are fed to a gasifier operating at 800°C to produce methane in an exothermic reaction with

recycled hydrogen.  The gasifier effluent is pyrolyzed to hydrogen and carbon monoxide in a

second reactor at  1100°C, and methanol, the desired product, is synthesized in a third reactor by

conventional catalytic technology. The entire system operates at 50 atm pressure. The principal

differences between  this and other biomass/methanol processes, from the equipment standpoint,

is the  recycle of excess hydrogen to the gasifier, the recovery of thermal energy from the high-

temperature step,  elimination of a shift converter, and elimination of cold gas cleanup to remove

CO2, sulfur, and volatile alkalies.  From the process standpoint, the main difference is

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incorporation of natural gas as cofeedstock to enhance the production of methanol synthesis gas.

Table 4 summarizes performance estimates resulting from the process  simulations.


      TABLE 4.  PERFORMANCE ESTIMATES FOR THE HYDROCARB PROCESS
    Mols methanol/mol biomass fed                                    1.36
    Mols methanol/mol CH4 fed                                        1.30
    Gasifier throughput, kg-mol/liter of methanol product                 0.139
    Net CO2 emission, mol/mol methanol produced and utilized           0.631
    Thermal efficiency (HHV), %                                       67
Development Status

       The performance  estimates of Table 4 assume chemical  equilibrium in each process

stream, as given in Figure 2.  The degree to which the performance  estimates can be attained will

be determined in  bench scale tests of the reactor hardware soon to be undertaken by the EPA

with funds from the Strategic Environmental R&D Program of the Department of Defense, and

cosponsorship  with the California South  Coast Air Quality Management District.  The 50-atm

methanol synthesis step and the biomass gasification step, including control of alkali vqlatiles and

entrained  particulates, are within current state of the art.  The other principal step, methane

pyrolysis, is  not.   The  pyrolysis reactor  requires indirect  heat transfer  with inert solids

recirculated at high volume between the  fluidized bed reactor and an external combustor/riser.

Although many aspects of the required pyrolysis system have been operated successfully in the

Cogas process  (Hebden and Stroud, 1981) and the Universal Oil Products catalytic hydrocarbon

cracking  process  (Pohlenz and  Scott,  1966), none has  been operated  at  the  pressure and

temperatures required by Hydrocarb. Substantial engineering challenges must therefore be met,

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beginning with choice of materials and extending to control of heat carrier attrition, refractory

erosion, high temperature gas/solid separation, high pressure combustion of carbon black, and

isolation of combustion gases from the process stream.


Economic Assessment


       Our estimate of the  capital cost of a Hydrocarb plant is obtained from a comparative


analysis based on the  detailed evaluation  of the Texaco coal gasification, dedicated  methanol


plant that was prepared by Fluor Engineers and Constructors (Buckingham et al., 1981).  That


plant, operating at a gasifier pressure of 59 atm, produces  1.25xl07 liters/day of methanol with


a gasifier throughput of 0.158 kg-mol per liter of methanol product.  We take credit for the


absence of an air separation unit in Hydrocarb and take partial credit for the shift converter and


Selexol gas scrubbing units.  The Texaco system,  which is equivalent to a Hydrocarb  plant


processing 5300 (dry)Mg/day of biomass, was estimated by Fluor to require a plant facilities


investment (PFI) of $1.076xl09 in 1979 dollars.   With the appropriate credits, adjusting for


differences in throughput, and accounting for inflation (by a factor of 1.55), we estimate the PFI


for Hydrocarb at  $1.057xl09 in current dollars.


       Our economic evaluation assumes operating and maintenance (O&M) costs to be slightly


lower than Texaco's 6  percent of PFI which included a significant cost for disposal of coal ash.

                                                                                     I
With the reduced ash disposal cost for Hydrocarb, O&M is calculated to be 5 percent of PFI, or


$1.609 x lOVday for a 5300 (dry)Mg/day plant.


       Total capital investment (TCI) is normally  about 125 percent of PFI (and is the case for


Fluor's Texaco evaluation).  Therefore, it is assumed here that the TCI (which includes allowance


for funds during construction, working capital, land, royalties, etc.) for a 5300 (dry)Mg/day
                                           10

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Hydrocarb plant will be $10.57 x  108 x 1.25 = $13.21 x 108 in current dollars.



Alcohol Production Cost Estimate

       The cost of producing methanol in a 5300 (dry)Mg/day Hydrocarb plant with a delivered

cost of biomass assumed to be $71.26/(dry)Mg is calculated as follows, assuming a 6 percent

capital charge rate and 15  percent return on investment:

       From the material and energy balances of the process simulation, 63.6 Mg of CH4 feed

is required per  88.3 (dry)Mg of biomass  feed. At a cost of $2.50 per  1000 ft3 (28.3 m3), the

daily cost of natural gas feed for this Hydrocarb plant will be


                  63.6 x  22400 x 2.5 x 5300
                 	       =      $470,500/day
                    88.3 x  16.043 x 28.32

The daily operating costs are then:

             Biomass  5300x71.26 =                     $377,680
             Natural gas   =                                $470,500
             O&M 0.05(10.57 x 108)/365(0.9)  =            $160,880
             Capital charge 0.06(13.21  x 108)/365(0.9)  =    $241,300
                Total daily operating cost                  $1,250,400


From the material and energy balances, 165.8 kg of methanol is obtained from 88.3 kg of

biomass and 63.6 kg of CH4; therefore, the cost of production  (Cp) for  15 percent return on

investment (ROI) is:

           165.8 x 5300  x  1000 x 2.205                    0.15 x 13.21  x 108
     Cpx   	  -  1,250,400  =     	
              88.3 x 8.34  x 0.796                             365  x 0.9

Giving Cp = $0.561/gallon  or $9.36/GJ (LHV).

                                           11

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  Comparison with other alcohol processes   Cost estimates for the production of ethanol and

  methanol from biomass by other routes have recently been published.  In the case of ethanol, the

  estimates are given for the enzymatic hydrolysis  process for two plant sizes, 1745 (dry)Mg/day

  and 9090 (dry)Mg/day (Wyman et al., 1992).  Methanol costs were recently reviewed by Larson

  and Katofsky (1992) for four biomass gasification  processes rated at 1650 (dry)Mg/day plant size;

  of those methanol processes, the BCL indirectly heated gasifier was shown to yield significantly

  lower production cost  than the others.  The result of Larson and Katofsky's evaluation of the

  BCL process is summarized in Table 5 together with the above data for Hydrocarb and the data

  for the  two enzymatic  ethanol systems evaluated  by Wyman et al.


TABLE 5.  COST ESTIMATES FOR PRODUCTION OF ALCOHOL FUELS FROM BIOMASS
Hydrocarb
methanol
Plant size, (dry)Mg/day
Plant facilities investment (PFI), millions of US$
Total capital investment (TCI), % of PFI
O&M, % of PFT
Total operating costb, millions of US$/yr
Capital charge rate, %
Return on investment, %
Alcohol production, millions of liters/yr
Biomass cost, US$/(dry)Mg
Plant operating factor, %
Alcohol production cost, $/GJ (LHV)
5300
1057
125
5.0
53
6
15
4100d
71.26
90
9.36
Enz. Hydrol.
ethanol
1745
128
123
4.5
17. 8C
6
7
219e
46
90
13.12
9090
432.75
124
4.5
66°
6
7
1096£
46
90
11.06
BCL
methanol
1650
152
146
7.0
13.5
6
16
333d
37.6
90
9.62
       "Excluding catalysts (enzymes)
       Excluding feedstock
       Including credit for exported electricity
       "99+% CH3OH; less than 0.75% H2O
       •90.3% QH5OH; 4.7% H2O; denatured with 5% gasoline
                                           12

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       It  is  clear  from Table 5  that a  comparison  of  alcohol  production costs requires

normalization of their implicit assumptions  regarding  plant size,  return on  investment, and

biomass cost.  The data were therefore recalculated for a common plant size of 9090 (dry)Mg/day

and 7 percent ROI using scaling factors that duplicate the  results of the ethanol scaleup from

1745 to 9090 (dry)Mg/day according to the following procedure:
    (

       Total capital investment for 9090 (dry)Mg/day plant =  TCI  x (9090/plant size)0744

and:    O&M cost for 9090 (dry)Mg/day plant = O&M x  (9090/plant size)08


       Figure 3 shows the resulting relationship between alcohol production cost at the plant gate

and the delivered cost of biomass when  the data of Table 5 are normalized  to the  same

assumptions.  At the expected cost of biomass delivered to a plant  of this size, $73.4/(dry)Mg

(Table 3), the comparison suggests that Hydrocarb may produce alcohol fuel at  a cost about half

that of the best  ethanol process and about 25 percent less than the best alternative methanol

process.  It is also significant that Hydrocarb is less sensitive to the cost of biomass than the

other processes,  due mainly to  the fact that natural gas is a lower cost feedstock than biomass,

and also because a higher yield of alcohol is obtained per unit of biomass fed.

       Ethanol forms an azeotrope containing  10.7 mol percent  water which is difficult to

separate, and further refinement is not attempted for the enzymatic process.  Fuel grade ethanol

consequently contains 4.7 wt percent water after gasoline  is  added as a necessary denaturant.

Methanol does not form an azeotrope with water and does not require a denaturant.  Fuel grade

methanol will therefore be essentially pure  CH3OH.
                                           13

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                      2  12
                      O
                          10
                                          _L
                                                    J_
                                 50        60        '0        BO

                                       DELIVERED BIOMASS COST, $/(dry)Mg
Figure 3.  Comparison of alcohol production costs for a 9090 (dry)Mg/day energy conversion
         plant with 7 percent return on investment.
Eguivalent Gasoline Price

        Following the calculation procedure outlined above, but assuming a 9090 (dry)Mg/day

plant size and 15 percent ROI, the cost of methanol production by Hydrocarb is calculated to be

$0,526/gal  (3.79 liter). The equivalent gasoline price can be obtained by adding the marketing

costs as specified by the Office of Technology Assessment (U.S. Congress, 1990): $0.08 for

markup, $0.06 for  distribution, and $0.12 for taxes per gallon (3.79 liter) of  methanol  and
                                           14

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multiplying by the volumetric equivalence ratio of methanol/gasoline. Assuming an equivalence




ratio of 1.57 for vehicles optimized for neat methanol, the equivalent gasoline price is:




                 ($0.526 + 0.08 + 0.06 + 0.12)1.57  = $1.23/gal           (3)




In 1992, the average price of gasoline  in the  U.S., weighted according to the amount of each




grade sold, was $1.19/gal.  One can therefore conclude that Hydrocarb methanol would cost




about $0.04/gal more than the current gasoline price. With or without the energy tax considered




by the Congress, if methanol can be produced at the projected costs, it should be competitive




with current gasoline prices.




       The volumetric ratio of 1.57 used in eq. 3  assumes a 27 percent improvement in fuel




economy for methanol  vehicles, due to its higher thermal efficiency in  internal combustion




engines.  This ratio is obtained from tests performed by the EPA Office of Mobile Sources (U.S.




EPA, 1989) on conventional vehicles powered with neat methanol.  Those vehicles employed




some,  but  not  all, of  the characteristics that  take  advantage of methanol's chemical  and




combustion properties which make it an inherently more efficient fuel than gasoline. The most




important of those properties are its higher octane  rating, which allows a higher compression




ratio, its wide flammability limits, which permit good combustion at high air-to-fuel ratios, and




its higher power output, which allows the use of a smaller, more efficient engine.  Two converted




gasoline engines  (U.S. EPA,  1989) and two modified diesel engines (Bruetsch and Hellman,




1992) have been tested with an overall average improvement of 27 percent in thermal efficiency.




Most other performance comparisons reported  in  the literature were obtained with vehicles




designed for gasoline or M85,  which give poorer performance than can be expected when both




the engine and vehicle are designed specifically for use with neat methanol.  Although no vehicle
                                           15

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has yet been designed to take advantage of all properties of neat methanol as its intended fuel,




the best data available to date indicate that such vehicles can achieve 30 percent improvement




in thermal efficiency  relative to gasoline.




Effect of Future Cost Escalations




       We have assumed the current price of natural gas to be $2.50/106 Btu  (1.06 GJ) in the




above cost comparisons. This is representative of the current price, but it has  recently been as




low as $1.10/106 Btu (1.06 GJ) in some areas  of the U.S..  The sensitivity of the Hydrocarb




methanol production cost to the price of natural gas is shown in Figure 4 for a 9090 (dry)Mg/day




plant  and  15 percent ROI.  The price of natural gas is expected to increase in the future with the




price  of other energy sources, particularly crude oil.  The Gas Research Institute (GRI)(Dreyfus




and Koklauner,  1992) project a 38 percent escalation of the crude oil price in  constant 1992




dollars by the year 2010.   It may be assumed that the price of natural gas will escalate by the




same  amount, from $2.50 to $3.45/106 Btu (1.06 GJ) by the year 2010.  If we use this value for




the price of natural gas and assume that the real cost of biomass does not escalate  (it may in fact




decrease in constant dollars if projected improvements of yield, genetics, and cultivation practices




are realized), then the cost of Hydrocarb  methanol in the year 2010 would increase from the




current value of $0.526 to $0.580/gal (3.79  liter) which is equivalent  to a gasoline price  of




$1.32/gal  (3.79 liter).  '




       The GRI projection of the average retail gasoline price for the year 2010  is $1.58/gal




(3.79  liter).  Assuming no energy tax on gasoline in the year 2010, the cost of methanol would




be $0.26/gal (3.79  liter) less than the equivalent price of gasoline.  The projected trends therefore




favor  methanol as  a cheaper fuel than gasoline.
                                           16

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                      0.7
                  ro
                 CO
                 O
                 o

                 z
                 o
                 Q
                 O
                 cc
                 Q.


                 d

                 <
                      °6
                     0.5
                     04
                     0.3
                                       Current equivalent gasoline price


                                          With energy lax - - - -

                                          Without tax   ....
                                         j_
                        012345



                               NATURAL GAS PRICE, $/mi!lion Btu




Figure 4.  Estimated methanol production cost as a function of the price of natural gas;

          plant size = 9090 (dry)Mg/day, biomass = $73/(dry)Mg, return on investment = 15%.





IMPACT ON PETROLEUM  DISPLACEMENT AND GREENHOUSE GAS EMISSIONS



      The Energy  Policy Act of 1992  (U.S. Congress, 1993) is intended to  promote  the



replacement of petroleum motor fuels with alternative fuels to the maximum extent practicable



and to ensure the availability of the alternative that will have  greatest impact on reducing oil



imports, improving the national economy, and reducing greenhouse gas emissions.  It establishes



numerical  replacement goals of 10 percent by the year 2000 and 30 percent by the year 2010.
                                         17

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       Alcohol  fuels derived from domestically  produced  biomass and  competitive  with




petroleum fuels would significantly benefit the national economy if 30 percent of the petroleum




requirement could be displaced.  Not only would oil imports be reduced, but many jobs would




be created within the U.S. industrial and farming sectors.  As  indicated by Figure 3, methanol




is likely to be the least costly alcohol option and, if produced by Hydrocarb, the most competitive




with gasoline.   If successfully  developed, Hydrocarb methanol  should be  less costly  than




petroleum fuels by the year 2010.




       Lowest cost is of little importance, however, if the available biomass cannot be converted




into sufficient amounts of fuel to substantially offset the needs of the transportation sector. Table




6 compares the amount of alternative fuel that could be produced from 1  tonne of biomass, the




corresponding gasoline displacement, and the CO2 reduction from a vehicle fleet, if that biomass




were converted  to alcohol by one  of  three process options.   On this  basis  of comparison,




Hydrocarb would more than triple the amount of gasoline displaced by conversion of the biomass




to  liquid fuel.  The  last  column of Table 6 indicates the amount of methanol  that could  be




produced from the natural gas (720 kg/tonne of biomass) that is required for Hydrocarb if that




gas were used in a separate plant to produce methanol by the conventional steam reforming




process. Thus, if one considers the BCL process supplemented by a conventional methanol plant,




the comparison indicates  that the two processes would displace 12 percent less gasoline than a




single Hydrocarb plant and obtain  49 percent less  CO2 reduction.  The  improved technology




option for ethanol production assumes that a large increase in biomass conversion efficiency can




be  achieved, together  with a major reduction  of capital cost for  the enzymatic  process.




Comparison with that option in Table 6 indicates a Hydrocarb advantage of 20 percent more
                                          18

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gasoline displacement and 135 percent greater CO2 reduction.


      TABLE 6. CO2 REDUCTION POTENTIALS FROM 1 TONNE OF BIOMASS


                                          Alcohol production technology

                              Ethanol           Methanol   Methanol    Methanol from
                      by enzymatic hydrolysis    by BCL        by      natural gas" by
                        (current)  (improved)     gasification  Hydrocarb  steam reforming
Alcohol produced, kg-mol   5.7       8.8            18          59             34
Gasoline displaced, gal      70       108           125          405            230
Net CO2 eliminated, kg     630       970          1130         2490             87
     "Assuming that the natural gas used for Hydrocarb were convened to methanol in a
       separate plant
       As suggested by Table 5,  earlier estimates of alcohol production costs from biomass

generally assumed plant sizes ranging from 1500 to 2000 (dry)Mg/day. In order to displace 30

percent of the petroleum requirement in the year 2010 (about 7.9 EJ)  with biomass conversion

plants of that size, the number of plants necessary would be unrealistically large as indicated by

Table 7.  Biomass conversion  plants as large as 9090 (dry)Mg/day may still be of questionable

practicality for processes other than Hydrocarb because of the large number of plants required.

       One must also consider the amount of land in the U.S. that is suitable for the production

of woody biomass as short rotation crops in dedicated energy farms. That area, not essential for

food crops,  has been conservatively estimated (Graham el al., 1992) to  be 14 x 106 ha which

could yield about  3 EJ of wood  energy. An optimistic estimate of the U.S. maximum SRWC
                                          19

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TABLE 7.  NUMBER OF ENERGY CONVERSION PLANTS REQUIRED TO PRODUCE 30
       PERCENT OF U.S. HIGHWAY FUEL REQUIREMENTS IN THE YEAR 2010
                                        Number of plants producing fuel by:

         Plant size,                Enzymatic        BCL biomass
    (dry)Mg/day of biomass         hydrolysis         gasification         Hydrocarb
           1,700                      1705             1110                235

           9,090                      340              208                 44



 energy yield is 12 EJ (Lee et al.,  1991). Given the projected alcohol yields from the leading

 process options, Table 8 shows the percent  of highway fuel consumption in the year 2010 that

 could be replaced.  Should  the  lower  estimate of biomass availability prove correct, the

 comparison indicates that no more than 7 percent displacement of petroleum could be obtained

 as ethanol, whereas Hydrocarb could displace the full 30 percent with that minimum amount of

 biomass.  Should the 12 EJ estimate actually represent the total biomass potential, much of that

 land will nevertheless be too far from an energy conversion plant  to permit its use for biomass

 farming. In any case, it is clear that only methanol could meet the projected goal of 30 percent

 displacement and, if it were produced by Hydrocarb, could in theory displace all of  the

 transportation fuel requirement in the year 2010.  As a practical matter, it is unlikely that either

 the biomass supply or alcohol production capacity for 100 percent displacement could  be in place

 by  the year 2010.
                                         20

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 TABLE 8. PERCENT OF HIGHWAY FUEL CONSUMPTION IN THE YEAR 2010 THAT
                COULD BE DISPLACED BY BIOMASS DERIVED FUEL

Available
biomass supply,
EJ
3
6
12


Biomass

Enzymatic hydrolysis
(current)
5
10
18
(improved)
7
14
28
conversion technology

BCL biomass
gasification
11
21
42



Hydrocarb
36
71

CONCLUSION                                     '

       The Energy Policy Act provides a strong incentive for identification of an alternative fuel

that  can  best  meet future demands for  displacement of petroleum, improving the national

economy, improving urban air quality, and reducing greenhouse gas  emissions.  Based on the

assumptions made, this analysis suggests that methanol has greater potential  than ethanol for

meeting national goals for alternative fuel production, in terms of both the amount of petroleum

that could be displaced and the cost of production.  Among methanol production options, the

Hydrocarb process presents a prospect for maximum displacement of petroleum and greatest

reduction of greenhouse gas emission from mobile sources.    The large potential effect of

alternative fuel production on the national economy implies the use  of domestic resources as

feedstock to the maximum possible extent and therefore favors biomass produced in a renewable

and sustainable manner such  as SRWC. Because of the limitation of biomass  supply it will be

essential  to leverage that feedstock with another domestically available feedstock to meet the

projected alternative fuel requirements.  Since natural gas is a cofeedstock for the Hydrocarb
                                         21

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process, the amount of liquid fuel that can be produced from the limiting resource is increased




substantially. This analysis projects that Hydrocarb has the potential to yield methanol at a cost




lower than the  future cost  of gasoline. Although development of the Hydrocarb process will




challenge the state-of-the-art in several respects, the projected advantages form the basis for the




EPA program to fully evaluate its potential in a systematic development effort.









                                 LITERATURE CITED






Bhat, M.G., English, B., and Ojo, M.  "Regional Costs of Transporting Biomass Feedstocks," in




  Liquid Fuels from Renewable Resources, J.C. Cundiff (ed.) Am. Soc. of Agr. Engineers, St.




  Joseph, MI, pp. 50-57 (1992).




Bruetsch, R.J., and Hellman, K.H. "Evaluation of a Passenger Car Equipped  with a Direct




   Injection Neat Methanol Engine," Alternative Fuels for CI and Sf Engines, SAE technical




   paper No. 920196 (1992).




Buckingham, P.A., Cobb, D.D., Leavitt, A.A., and Snyder, W.G. "Coal-to-Methanol:  An




  Engineering Evaluation of Texaco Gasification  and ICI Methanol-Synthesis Route," Fluor




  Constructors  and Engineers, Inc., prepared for the  Electric Power Research Institute, EPRI




  Report No. AP-1962 (1981).




Dreyfus, D.A., and Koklauner, A.B. "Description of the Global Petroleum Supply and Demand




  Outlook,"  Strategic Planning and Analysis Division, Gas Research Institute, Chicago, IL, p.




  5 (1992).




Graham, R.L., Wright, L.L., and Tufhollow, A.F. "The Potential for Short-Rotation Woody Crops




  to Reduce U.S. CO2 Emissions," Climate Change, pp. 223-238 (1992).





                                          22

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Hebden, D., and Stroud, H.J.F. "Coal Gasification Processes," in Chemistry of Coal Utilization,

  Second Supplementary Volume, M.A. Elliott (ed.), John Wiley & Sons, Inc., New York, NY,

  pp. 1701-1706 (1981).

Ismail, A.,  and Quick, R.  "Advances in Biomass Fuel Preparation,  Combustion, and Pollution

  Abatement Technology," Energy from Biomass and Wastes XV, pp.  1063-1100  (1991).

Jones, K.W. "Operational Case Histories of the  South Port Ethanol and Kentucky Agricultural

  Energy Corporation Fuel Ethanol Plants," Energy from Biomass  and Wastes XII, p.  1365
                               6
  (1989).

Kenney, W.A., Gambles, R.L., and Zsuffa, L. "Energy Plantation Yields and Economics," Energy

  from Biomass and Wastes XV (1991).

Larson, E.,  and Katofsky, R. "Production of Hydrogen and Methanol via Biomass Gasification,"

  in Advances in Thermochemical Biomass Conversion, A.V. Bridgwater (ed.), Elsevier, New

  York, NY (1992).

Lee, K.H., Johnston, S.A., Stancil, W.D., andByrd, D.C. "Biomass State-of-the-Art Assessment,"

  Research report GS-7471, Volume 1, Electric  Power Research Institute, p.  3-7 (1991).

Perlack, R.D., and Ranney, J.W. "Economics of Short-Rotation Intensive Culture for Production

  of Wood Energy Feedstocks," Energy, pp.  1217-1226 (1987).

Pohlenz, J.B., and Scott, N.H. "Method for Hydrogen Production by Catalytic Decomposition of

  Gaseous  Hydrocarbon Stream," Universal Oil  Products, U.S. patent No. 3,284,161 (1966).

Reed, T.B.  (ed.) "Biomass Gasification, Principles  and Technology," Noyes Data Corp., Park

  Ridge, NJ, p. 360(1981).
                                         23

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Steinberg, M, Grohse, E.W., and Tung, Y. "A Feasibility Study for the Coprocessing of Fossil




  Fuels with Biomass by the Hydrocarb Process," Research report EPA-600/7-91-007 (NTIS




  DE91 -011971), U.S. EPA, Air and Energy Engineering Research Laboratory, Research Triangle




  Park, NC  (1991).




Steinberg, M., Kobayashi, A., and Dong, Y. "Rates of Reaction and Process Design Data for the




  Hydrocarb Process," Research report EPA-600/R-93-020 (NTIS PB93-155976), U.S. EPA, Air




  and Energy Engineering Research Laboratory, Research Triangle Park, NC (1993).




Strauss, C.H., Grade, S.C., Blankenhorn, P.R., and Bowersox, T.W. "First and Second Rotation




  Cost Evaluation of Biomass from SRIC Populus Plantations," Energy from Biomass and




  Wastes XII, pp. 211-225 (1989).




Strauss, C.H., Grado, S.C., Blankenhorn, P.R., and Bowersox, T.W. "Economic Evaluation of




  Optmum Rotation Age for SRIC Plantations," Energy from Biomass and Wastes XIII, pp. 295-




  307 (1990).




U.S. Congress, Energy Policy Act of 1992, Public Law 102-486, Washington, DC, U.S. Govt




  Printing Office, Title V, Sec. 502 (1993).




U.S. Congress, Office of Technology Assessment "Replacing Gasoline:  Alternative  Fuels for




  Light-Duty Vehicles," OTA-E-364, Washington, DC, U.S. Govt Printing Office, p. 76 (1990).




U.S. Department of  Energy  "National Energy  Strategy," First Edition 1991/1992, Washington,




  DC,  U.S. Govt Printing Office (1991).




U.S. Environmental Protection Agency "Analysis of the Economic and Environmental Effects of




  Methanol  as an Automotive Fuel," Research report  0730 (NTIS  PB90-225806), Office of




  Mobile Sources, Ann Arbor, MI  (1989).
                                         24

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Wright, J.D., Power, A.J., and Bergeron, P.W, "Evaluation of Concentrated Halogen Acid




  Hydrolysis Processes for Alcohol Fuel Production," Research report SERI/TR-232-2386, Solar




  Energy Research Institute, p. 56 (1985).




Wright, J.D. "Ethanol from Biomass by Enzymatic Hydrolysis," Chemical Engineering Progress,




  p. 69 (August 1988).




Wright, L.L., Graham, R.L,, Turhollow, A.F., and English, B.C. "Opportunities to Mitigate




  Carbon Dioxide Buildup using Short-Rotation Woody Crops," in Sampson, R.N. and Hair, D.




  (eds.), Forests and Global Change, Vol. 1, American Forestry Assoc., Washington, DC, pp.




  123-156  (1992).




Wyman, C.E.,  Bain, R.L., Hinman, N.D., and Stevens, DJ. "Ethanol and Methanol from




  Cellulosic Biomass," in Renewable Energy: Sources of Fuels and Electricity, T.B. Johansson,




  H. Kelly, A.K.N. Ruddy, R.H. Williams (eds.). Island Press,  Washington, DC, pp. 865-923




  (1992).
                                         25

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 AEERL-P-1084
                                TECHNICAL REPORT DATA
                          (Please read Instructions on the reverse before compi
1. REPORT NO.
   EPA/600/A-93/298
                           2.
4. TITLE AND SUBTITLE
Reduction of CO2 Emissions from Mobile Sources by
 Alternative Fuels Derived from Biomass
                                                       5. REPORT DATE
                                                       6. PERFORMING ORGANIZATION CODE
7-AUTHORls)R.H. Borgwardt (EPA),  M.Steinberg (BNL),
and Y. Dong (Hydrocarb)
                                                       8. PERFORMING ORGANIZATION REPORT NO.
9. PERFORMING ORGANIZATION NAME AND ADDRESS
 Brookhaven National Laboratory,  Upton, NY 11973.
 Hydrocarb Corporation,  New  York, NY 10018.
                                                       10. PROGRAM ELEMENT NO.
                                                       11. CONTRACT/GRANT NO.
                                                       IAG DW-89934598  (BNL)
                                                       68-D1-0146WA/9 (Hydrocarb)
12. SPONSORING AGENCY NAME AND ADDRESS
 EPA, Office of Research and Development
 Air and Energy Engineering Research Laboratory
 Research Triangle Park, NC 27711
                                                       13. TYPE OF REPORT AND PERIOD COVERED
                                                       Published paper: 4/9Q-1/93
                                                       14. SPONSORING AGENCY CODE
                                                        EPA/600/13
15. SUPPLEMENTARY NOTES AEERL project officer is Robert H.
919/541r2336.  Presented at AIChE, Seattle,  WA, 8/15-
                                                       Borgwardt,  Mail Drop 63,
                                                      18/93.
16. ABSTRACT,
       \\The paper discusses process options forjutilizing biomass to obtain great-
est reduction of carbon dioxide  (CO2)  emissions from motor vehicles at least cost. -
(NOTE:  The Energy Policy Act  of 1992 seeks to displace 30% of the U. S.  petr'oleum
requirement by the year 2010 with an alternative that, among other things, has great-
est impact on reduction of greenhouse gas emissions. An alternative fuel derived
from biomass is probably the most practicable method of achieving, that objective.)
The paper emphasizes the Hydrocarb  process,  currently under evaluation by EPA for
production of methanol from short-rotation woody crops using natural'gas as cofeed-
stock. It"is compared with other process options in terms of feedstock availability,
cost of conversion to liquid fuel, amount of petroleum that can be displaced,. and com-
petitiveness with gasoline price.- The  analysis indicates  that, for a given  supply of
biomas-s,  more petroleum can be displaced through methanol production  processes
than through those for ethanol^If performance projections can be achieved,  the Hy-
drocarb process should displace, more than three times as much gasoline as the
other options. Assumed trends  invfeedstock costs are expected to favor methanol,
relative to the equivalent price  of)gasoline.
17.
                             KEY WORDS AND DOCUMENT ANALYSIS
                DESCRIPTORS
                                          b.IDENTIFIERS/OPEN ENDED TERMS
                                                                   c.  COSATI Field/Group
Pollution
Motor Vehicles
Biomass
Carbon Dioxide
Greenhouse Effect
Carbinols
                   Natural Gas
                   Ethanols
                   Gasoline
Pollution Control
Stationary Sources
Hydrocarb Process
Methanols
13 B
13 F
08Ar06C
07B
04A
07C
21D
13. DISTRIBUTION STATEMENT
 Release to Public
                                           19. SECURITY CLASS (This Report)'
                                           Unclassified
                                                                    21. NO. OF PAGES
                                                                         25
                                          20. SECURITY CLASS (This page)
                                           Unclassified
                                                                   22. PRICE
EPA Form 2220-1 (9-73)

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