W2B: An innovative approach to the treatment of municipal solid waste Abudhabi, January 2014 Our Business Our business is composed of three key areas 1 2 3 Engineering and construction (E&C)  70 years of experience in energy infrastructures   Proprietary know-how Develops these key activities in two high-growth sectors 1st international contractor in T&D Concession-type infrastructures  Solar, power transmission, desalination, cogeneration and others   Very low market risk Energy Environment 25 years off-take contracts ahead Industrial production    Biofuels, industrial waste recycling High growth markets Market leading positions 2 Our Business We have been growing with 18% CAGR for the last 10 years 3 Our Business …and markets. 26% of our revenues now come from the US and 26% from Latam 4 …becoming the only global ethanol company York, NE 208 ML since 2001 Colwich, KS 95 ML since 2001 Biofuel capacity = 1,440 ML Feed capacity = 980 KTY Portales, NM 114 ML since 2001 Ravenna, NE 341 ML since 2007 Evansville, IN 341 ML since 2011 Granite City, IL 341 ML since 2011 Biofuel capacity = 1,500 ML Feed capacity = 885 KTY Cartagena, Sp 150 ML since 1999 La Coruńa, Sp 195 ML since 2001 Salamanca, Sp 200 ML since 2006 Lacq, FR 250 ML since 2007 Cadiz, Sp 225 ML since 2009 Rotterdam, NE 480 ML since 2010 Biofuel capacity = 235 ML Feed capacity = 980 KTY Global production Sao Luis, SP 91 ML since 2007 San Antonio de Posse (SAP), SP 0.3MT since 2011 Sao Joao, SP 144 ML since 2007 Camilo Ferrari, SP 0.3MT since 2011 2011 Ethanol (ML): 2,950 Sugar (KTPY): 570 Feed (KTPY): 1,865 Electricity (MW): 259 Biodiesel (ML): 225 2G Assets Commerical biomass plant Hugoton (KS, US) 95 ML 2013e Biomass demonstration plant in BCyL (Salamanca, Spain) 5ML since 2009 Biomass pilot plant in York (NE, US) 0.1 ML since 2007 5 W2B 6 The Fact We generate 1.3 billion tons of solid waste across the globe. This can be converted in 70 B gal of fuel, enough to power a fourth of the world’s 750 million cars1. 1Source: 7 Prepared by the authors based on IEA data of a world annual fuel consumption of 1000 Mtoe for the PLDV transportation segment in 2010. The Context: Waste Generation The average person generates 4.5 lbs of waste every day 80% of all that waste is recyclable. But 70% is landfilled. 8 Our Track Record 15 years of R&D We have the capacity to scale up our process Demo Plant Salamanca Commercial scale Hugoton Pilot Plant York Lab Pilot Industrial Butanol/Catalytic process Catalytic synthesis laboratory 9 Our Track Record Demonstration plant in Salamanca (Spain), which can process 25.000 t of MSW and produce up to a capacity of 400,000 gal of bioethanol. 10 Our Track Record First commercial 2G plan in Hugoton (Kansas, USA). It will produce 25 MGal of bioethanol in H1 2014 out of agricultural waste. 11 The Concept To increase recycling by converting food waste and other organic waste into transportation-grade fuel. Each ton of trash contains over 53 gals. The Concept Why Waste to Biofuel? Problem MSW management is one of the challenges that society must deal with because…  Population increase     High demographic concentration in big cities Consumption habits  more than 500 kg/inh/year MSW No optimized solutions: landfill or incineration Very heterogeneus material Wastes are an important carbon source with a high potential for chemical or biochemical transformation on high value products Oportunity    Almost 60% of the MSW is biodegradable More than 15% is plastic material MSW has a negative cost in front of other biomass and other currently-used raw material costs * Spanish MSW typical Characterization 13 The Context: Waste Management Today MSW process scheme Population MSW classiffied Landfills Transfer Station Biogas Final disposal Waste-to-energy Electricity/ Heat Composting Compost MSW classiffied MSW not classified Recycling Taxes Paper Metals Plastics $ Flow of money Flow of MSW Tipping fee 14 Our Technology Pretreatment Pretreatment is one of the keys for the technological success of W2B industrial solution Key points:  To produce a high quality raw material (low ash content and accesible to enzymes) for the fermentation Biowaste  To recover and classify as much recyclable materials as possible: Plastics, metals Organic fiber  To maximize the quantity of recovered fermentable material Plastics MSW Metals (Ferrous and non-ferrous) 15 $ Our Technology MSW Sorting (Foucolt, size, magnetic, optical) Groups together and achieves homogeneous streams using sorting and hygienization Inert compound removal Refines organic stream with X rays, biowaste, pulper Pretreatment Accesibility increase Acid and steam treatments to increase accesibility, digestibility and sterilize PH adaptation After acid treatment, pH needs to be adjusted for basicity before EH phase $ Recyclables Organic Fraction L HC C E. Hydrolysis – Fermentation Distillation $ 61.5 gal/dry ton Ethanol Stillage concentration Energy Recovery Inert Rejection 16 Our Technology Abengoa’s leadership in 2G bioethanol production Hydrolysis and 2G enzymes Cellulose. Polysaccharide  The key to the success of this process lies in the use of second-generation enzymes that are able to turn cellulose into sugars such as glucose and xylose.  Abengoa is the only company to have developed a complete package that includes technological process development and enzyme development. These enzymes, optimized for our process, are able to turn cellulose into hexoses such as glucose. This lends an advantage over other technologies that utilize commercial enzymes.  Abengoa has the capability to transform hemicellulose using organisms that are able to ferment pentoses such as xylose.  These advantages put Abengoa in a position of leadership in the production of 2G ethanol. 17 The Benefits Green jobs creation for a plant with a capacity if 300,000 tons  Permanent operations jobs: 110 direct and 115 indirect  Construction jobs (2.5 years):100 direct and 600 indirect High social acceptance  Less odor  Reduced particle and GHG Emissions  Higher recycling rates  Low environmental footprint  Low occupancy rate of landfill  Positive visual impact (unlike landfilling) Production of biofuels  Reduction of fuel costs at the pump  Energy security with cellulosic bioethanol  Compliance with international standards for use of biofuels Best technology available  Proven (Enzymatic Hydrolysis) and multiproduct  Lower CAPEX and OPEX  Ultra low emissions (unlike incineration)  Stable output production with diverse input sources (unlike gasification and biomethanization)  Conversion of >75% of potential ethanol 18 The Wrap-Up W2B: A modular & global cutting-edge solution producing cellulosic ethanol  Avoids landfilling of up to 80% of waste Good for municipalities Good for federal governments Good for the people  Allows for single-stream processing, avoiding separation at point of origin  Increases recycling yields reducing the need for new landfills due to increased lifetime  Creates smarter cities through the promotion of clean energy and reduced environmental footrprint of waste  Cellulosic ethanol produced from waste helps meet national biofuels targets for energy security and energy diversification with a clean renewable fuel.  Reduces GHG emissions of over 85% vs regular gasoline  Avoids import of fossil fuels improving the balance of trade and payments.  Creates green local jobs  Well managed waste allows for cleaner air and helps fight against climate change while preserving the environment and producing domestic fuels 19 19 Innovative Technology Solutions for Sustainability Thank You www.abengoa.com