Converting Domestic Hydrocarbons into Transportation Fuels: Opportunities Abound Pasco-Kennewick Rotary

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Converting Domestic Hydrocarbons into
Transportation Fuels Opportunities Abound
Pasco-Kennewick Rotary

• Mike Davis
• Associate Laboratory Director
• Energy Science Technology
• Pacific Northwest National Laboratory
• May 24, 2006

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Our time together

• A little bit about PNNL
• The need to reduce the nations dependence on
  imported oil
• Two opportunities
• Coal to liquid transportation fuels
• Biobased products and fuels

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DOE Multi-program National Laboratories
Pacific Northwest
Brookhaven
Idaho
Lawrence Berkeley
Argonne
Los Alamos
Lawrence Livermore
Oak Ridge
Sandia
Office of Science National Nuclear Security
Administration Office of Nuclear Energy, Science
Technology
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PNNL performs research for the Department for
Energy, other agencies, and industry
Business Volume (M)
FY05 FY06 Est. Dept. of Energy
423 488 DHS
133 113 Other Agencies
93 109 Battelle Private
77 90
Total 726 800
Private 11
National Security
Other Agencies 13
Homeland Security 18
Science
Environ-ment
Energy
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Energy Sector Business81 million in FY05

• Science-based solutions for
• Reducing dependence on foreign oil
• Minimizing the energy systems effect on the
  environment
• Improving energy efficiency, security and
  reliability

Pursuing conversion of coal/hydrocarbons to boost
clean supply of electricity, gas and liquid
fuels
Ensuring the efficiency, reliability and security
of the nations power grid
Developing low-cost, high-efficiency solid oxide
fuel cells
Addressing hydrogen storage and hydrogen safety
Increasing efficiency and reducing emissions in
vehicles
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Energy policy can be distilledinto four broad
goals

• Diversify our energy mix and reduce dependence on
  foreign petroleum, thereby reducing vulnerability
  to disruption and increasing the flexibility of
  the marketto meet U.S. needs
• Reduce greenhouse gas emissionsand other
  environmental impacts(water use, land use,
  criteria pollutants) from our energy production
  and use
• Create a more flexible, more reliableand higher
  capacity U.S. energy infrastructure, thereby
  improving energy services throughout the economy,
  enabling use of diverse sources, and improving
  robustness against disruption
• Improve the energy productivity(or energy
  efficiency) of the U.S. economy

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A snapshot of todays reality
If we do not aggressively pursue domestic
solutions now for both expanded conversion
capacity and carbon management, we risk
substantial and increasing economic and
environmental damage.

• Oil production in the lower 48 states peaked
  1970 at 9.6 million barrels/day
• Natural gas production in the lower 48 states may
  be peaking now
• Global oil production is expected to peak early
  this century predictions range from 2010 to 2025
  
• Hydrocarbons provide 85 of the worlds energy
• Demand for hydrocarbons will continue to increase
  to support economic growth
• Oil market economics are not driven by the
  strategic interests of our nation

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U.S. consumes 20.5 million barrels of petroleum
per day
Resource
End Use
In 2003, total U.S. demand for petroleum was
20.044 million barrels per day, 56 of which was
from net imports. By 2020, import reliance is
expected to increase to 65 (source EIA)
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PNNLs Energy Conversion InitiativeConvert
domestic coal into liquid transportation fuels
Goal Develop energy conversion and carbon
capture and sequestration process capabilities
that can be deployed at plants with a production
capacity of 100k barrels/day.

• Enable domestic hydrocarbon resources to be used
  in an environmentally acceptable and economically
  competitive way within the existing energy
  infrastructure
• Address nations and worlds growing energy
  demand by utilizing a broad base of hydrocarbons
• Develop business case to support necessary
  privateinvestment in plant capacity
• Define value proposition for private financing
• Identify potential partners/collaborators/investor
  s

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Near-term solutionGasification and Carbon
Capture

Globally, theres no shortage of hydrocarbons,
only a shortage of high-quality hydrocarbons

• Conversion via gasification enables
• Near-term solution, scalable and applicable for
  all hydrocarbons, to address economic and
  environmental needs
• Expanded use of domestic hydrocarbons
• Carbon capture sufficient to lower emissions
  output to that of natural gas and, over time, to
  zero (the goal of FutureGen)
• Conversion via gasification produces economic
  efficiencies
• Same front end approach for electricity
  generation and transportation fuels production
• Transportation fuels could use existing
  infrastructure

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Biomass Another opportunity
DOE study identified 1.3 billion tons of dry
biomass available in U.S. annually

• Potentially could produce 130 billion gallons of
  liquid transportation fuels
• Significant new technology developments needed
  to maximize production
• Same resource could supply virtually all raw
  materials for the chemical industry

Oil-based crops could produce enough biodiesel to
supply 2-5 of our current diesel consumption,
but alternative crops and agricultural practices
are required

• U.S. consumes 150 billion gallons of gasoline
  annually, plus another 55 billion gallons of
  diesel)

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Economic drivers

• Liquid transportation fuels derived from biomass
  must compete economically with petroleum to
  ensure a viable industry
• Significant improvement in conversion
  technologies needed to reduce production costs of
  transportation fuels and chemicals from biomass
• Current petroleum refinery produces about 90
  fuel and 10 chemicals
• To be economically competitive, biorefineries
  must consider converting biomass to liquid
  transportation fuels as well as chemicals and
  materials

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Biomassa state resource

• Northwest has diverse biomass resource base
• Crops, crop residues, trees, and pulp and paper
  processing residues
• Mostly harder-to-process woody waste
  (lignocellulosic) vs. Midwest starches and oil.
  While harder to process, some are residues
  requiring collection and disposal
• Maximizing utilization requires understanding
  total resource base available and infrastructure

Washington state has 17 million tons of biomass
residue, which potentially equates to 1.5 billion
gallons of ethanol. The technology to make the
conversion is there. The challenge is making it
economically viable.
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Bioproducts, Sciences, and Engineering
LaboratoryJointly developing research agenda
with WSU

• Maximize use of Washingtons existing crops
• Converting Washingtons diverse biomass residues
  to bioproducts and biofuels and determining how
  to maximize economic benefit
• Optimize feedstocks
• Bringing together WSU plant capabilities and PNNL
  bioproducts capabilities to create better crops
  specifically for bioproducts and biofuels
  feedstocks
• Explore biobased engineered materials
• Exploring value-added materials, not just
  chemicals, that can be made from biomass
• Provide relevant analysis
• Addressing technological and economical questions
  to enable the development of a strategic
  bioenergy roadmap for Washington

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A science to solutions approach

• PNNL performs research and development to address
  critical energy challenges for the nation and
  globally. In addition to what you heard today
• Fuel cells
• Nuclear energy
• Building technologies, including next-generation
  lighting
• Lightweight materials and emissions reduction
  technologies for vehicles
• Carbon sequestration
• An honor to share our work with you