Slide1: Business Opportunities in Mitigating Climate Change 2004-2008


ClimBus - Business Opportunities inMitigating Climate Change: ClimBus - Business Opportunities in Mitigating Climate Change Programme duration: 2004-2008 Programme volume: approx. 70 million euros Tekes provides approximately 50 % of the funding. Further information: DM 107092 02-2005 Copyright © Tekes www.tekes.fi/climbus Creating new business in the global market of climate technologies and services


Objectives of the ClimBus Programme: Objectives of the ClimBus Programme Developing cost-effective, climate friendly technologies Finding ideas for future businesses, including services, and technologies Creating networks and co-operation between different parties in value chains Finding new business opportunities in the global market created by the climate change mitigation efforts


Programme vision: Programme vision By 2010 Finnish companies are internationally important suppliers of technology and services related to climate change mitigation. The net sales in the sector have grown from the present 4.5 billion euros to 7 billion euros.


Main activities: Funding for R&D-projects for Finnish companies and research institutes Creating networks and co-operation between different actors in value chains Offering channels for internationalisation for companies and research institutes Main activities DM 107092 10-2004 Copyright © Tekes


Slide6: Energy-efficient technologies Clean energy production and biofuels Overall picture of the business opportunities Focus areas of the programme Tekes’ programmes Programmes of other financers Creating new business in the global market Future technologies N2O CO2 CO2 CO2 CO2 CH4 F-gases Capture and utilisation of greenhouse gases Business services and service concepts


Ongoing projects 10/2006: Ongoing projects 10/2006 Public research projects 35 projects Tekes-funding 9.7 M€ Industrial partners in every project International co-operation in over 70 % of the projects Industrial R&D projects 57 projects Tekes-funding 13.7 M€ Involved in projects ca 130 companies 92 projects, total volume 48.6 M€ of which 23.4 M€ Tekes-funding


ClimBus Projects on Biorefining: ClimBus Projects on Biorefining Research Projects: Greenhouse gas balances and new business opportunities for biomass-based transportation fuels and agro biomass in Finland (BIOGHG), VTT and MTT Production of synthesis gas and ultraclean fuel gas from biomass, peat and wastes (UCG), VTT and HUT Liquid biofuels from waste and biomass II, VTT Production of bioethanol from Finnish lignocellulosic agricultural residues (AGROETA), VTT and MTT Industrial Projects: New business concepts of forest and energy clusters, UPM-Kymmene, VTT, Pöyry and ten forest cluster companies A new concept for producing fuel ethanol, St1 Biofuels Oy BioComp - Biomass based traffic fuel Components, Neste Oil NExBTL - Further development of biodiesel technology, Neste Oil


Greenhouse gas balances and new business opportunities for biomass-based transportation fuels and agro biomass in Finland (BIOGHG): Greenhouse gas balances and new business opportunities for biomass-based transportation fuels and agro biomass in Finland (BIOGHG)


Project Facts in Brief: Project Facts in Brief The aim was to assess energy and greenhouse gas balances and greenhouse gas reduction costs for biomass-based fuels used in transportation and combined heat and power production (CHP) New business opportunities were identified based on the results. Both the commercial technologies and the technologies under development were assessed by focusing on the most suitable large-scale technologies for the Finnish conditions. ethanol from barley, RME from turnip rape synthetic fuels from logging residues and reed canary grass heat and power from logging residues and reed canary grass The project was carried out in co-operation between VTT and MTT in 2005 and 2006. Project manager: Tuula Mäkinen, VTT, tuula.makinen@vtt.fi


Primary energy input/output of certain biofuel and fossil reference fuel chains: Primary energy input/output of certain biofuel and fossil reference fuel chains


Greenhouse gas emissions from certain biofuel and fossil reference fuel chains: Greenhouse gas emissions from certain biofuel and fossil reference fuel chains


Production of Synthesis Gas and UltraClean Fuel Gas from Biomass, Peat and Wastes (UCG): Production of Synthesis Gas and UltraClean Fuel Gas from Biomass, Peat and Wastes (UCG)


Slide14: UCG-PROJECT at VTT in 2004-2006 Production of Synthesis Gas and UltraClean Fuel Gas from biomass, peat and wastes (2004 – 06) optimised fluidised-bed gasification process optimised gas reforming, dirty shift and ultra cleanup liquid biofuel concepts integrated to pulp and paper industries resources: total budget 4 M€ process development at 500 kW scale design basis for industrial demonstration plant partners: VTT and TKK: gasification and gas cleaning R&D Foster Wheeler Energia Oy: CFB gasifier know-how NESTE Oil: flash-pyrolysis and liquid fuel know-how Andritz Oy: equipment supplier for pulp and paper industries Vapo Oy: biomass company Tekes/Climbus: main financier


UCG-process development unit at VTT, 0.5-1 MW: UCG-process development unit at VTT, 0.5-1 MW Fuel-Flexible Fluidised-Bed Gasification - steam/oxygen (indirect heating) Gas Cleaning - tar & hydrocarbon reforming - chlorine & metal removal & filtration - dirty shift Ultra Cleanup sulphur, NH3, HCN, halides, etc. conventional processes available, optimisation needed FT-diesel CH3OH Hydrogen SNG clean fuel gas to fuel cells Gas cleaning targets: - complete tar and benzene decomposition - over 95 % methane reforming H2/CO ratio suitable to FT-synthesis reliable operation - minimum overall gas cleanup train costs new innovative technolgy


Fuel-Flexible Fluidised-Bed gasification: Fuel-Flexible Fluidised-Bed gasification Required feedstock basis - different wood residues - straw, other agricultural residues - energy crops and short rotation wood - MSW and other solid waste streams Industrial-scale experiences - pressurised gasification and filtration for IGCC; two processes were developed in 1990’s - wood & waste gasification in Lahti since 1998 - gasification of aluminium containing plastics in Varkaus since 2001 - pilot-scale R&D with different waste-derived feedstocks


LIQUID BIOFUELS FROM WASTE AND BIOMASS II: LIQUID BIOFUELS FROM WASTE AND BIOMASS II Yrjö Solantausta, Anja Oasmaa, Vesa Arpiainen


Summary: Summary Co-funded project – VTT, Tekes, Lassila & Tikanoja, Jyväskylä Energy, Carbona, UPM Kymmene The aim of the project is to further develop the business concepts which where compiled during 2005: The production of liquid bio-fuel from industrial waste and liquid utilisation in industrial ovens Production of liquid bio-fuel as integrated with a CHP-plant and liquid used to replace heavy fuel oil Production of liquid bio-fuel as integrated with a pulp mill and liquid utilisation in lime kiln and/or long-distance transport The final aim of the project is to plan a demonstration project with the industrial partners


Slide19: Integrated Thermal Processing - ITP Lower investment and maintenance costs High efficiency Flexibility – by-products used as process energy Patented IPR Pyrolysis oil Fuel 1 Fuel 2 Heat Fluidised bed boiler Sand, char Hot sand


Production of bioethanol from Finnish lignocellulosic agricultural residues (AGROETA): Production of bioethanol from Finnish lignocellulosic agricultural residues (AGROETA)


AGROETA Facts: AGROETA Facts Aim To study local lignocellulosic, agricultural-originating residues as raw material for bioethanol production To develop biotechnological and process engineering solutions for the utilization of said residues To study the economic feasibility of the developed production process Schedule 2-year project running from mid 2005 to mid 2007 Financing Tekes (ClimBus Technology Program), VTT, MTT and the industry partners


AGROETA Participants: AGROETA Participants Research-conducting partners MTT AgriFood Research Finland, Jokioinen Barley straw and reed canary grass field cultivations and structure research VTT Technical Research Centre of Finland, Espoo Pre-treatment, enzymatic hydrolysis and fermentation of lignocellulosic residues Factory planning and feasibility studies Industrial partners on the Project Steering Board Neste Oil, Lännen Tehtaat, Suomen bioetanoli, Rintekno and Panimolaboratorio Pre-treatment in collaboration with University of Lund, Sweden


Slide23: New business concepts of forest and energy clusters Led by: UPM-Kymmene Oyj, contact person Markku Karlsson UPM carries out the project together with VTT, Pöyry and ten forest cluster companies. Abstract: In the ClusterTech project, a group of Finnish companies representing forest, energy, machinery and chemical industries are developing new business models and technology concepts for the future. By considering effects of the long-term global changes in the business environment on the competitiveness, the objective of the project is to construct 1) company- and cluster-specific business scenarios, 2) roadmaps to reach the goals and 3) concrete R&D plans. The work will have a significant role in assessing the position and competitiveness of the Finnish actors in the future energy and wood raw material markets linked e.g. to the climate change. The project offers tools for the machinery producers to search for new product concepts in the changing business environment. The energy companies can search for synergy models with the forest industry companies to utilise Finnish biomass potential as new bioenergy products. A ClusterTech-scenario and a roadmap will be constructed in the project which helps to find synergies within the participating companies, R&D focuses, a group of business models for the Finnish, European and global markets, as well as concrete R&D plans. ClimBus Industrial Project


A New Concept for Producing Fuel Ethanol : A New Concept for Producing Fuel Ethanol  The energy enterprise St1 has decided to begin producing ethanol in Finland. The production will be based on a process developed by the Technical Research Centre of Finland, where ethanol will be produced from waste generated by the food processing industry in the place of origin of the waste. The new method makes ethanol production profitable even on a small scale. St1 Biofuels Oy, a joint venture of St1 and the Technical Research Centre of Finland, is currently preparing to launch its ethanol production.  ClimBus Industrial Project


BioComp - Biomass based traffic fuel Components: BioComp - Biomass based traffic fuel Components A study by Neste Oil to produce traffic fuel components from vegetable oils and animal fats utilising existing and new technologies. Upgrading units Upgrading units ClimBus Industrial Project


NExBTL - Further development of biodiesel technology : NExBTL - Further development of biodiesel technology ClimBus Industrial Project


NExBTL® Renewable Diesel: NExBTL® Renewable Diesel


Get involved with ClimBus!: Get involved with ClimBus! Programme Manager Jatta Jussila jatta.jussila@technopolis.fi Tel. +358 9 2517 8167 Technology Adviser Marjatta Aarniala marjatta.aarniala@tekes.fi Tel. +358 10 605 5736 More information about the projects and programme: www.tekes.fi/climbus