1. 2011 DOE Biomass Program Review IBR & Infrastructure Feasibility Studies on Process Coupling of Transesterification and Methanol Synthesis Using Cellulose Biomass and Bio-oil Feb 1-3, 2011 Bio-thermal Conversion Wei-Ping, Pan and Yan Cao Institute for Combustion Science and Environmental Technology, Western Kentucky University Bowling Green, KY 42101 This presentation does not contain any proprietary, confidential, or otherwise restricted information

2. 2 Quad Chart Overview Project start date –BP-1(July1, 2010) –BP-2 (November 1, 2010) Project end date –Mechanical Turnover Planned on June 30, 2011 –Start-up Planned on July 1, 2011 –Commissioning Planned on June 30, 2012 20% complete Project is in its initial stage We are on track with cost and schedule No major change of the project scope. As project proceed, we continue refine economic aspect of the proposed process The project would be accomplished in Sept, 2012. Total project funding –DOE share $500,000 –Contractor shares: 1) KY Department of Energy Development and Independence $6,2500 2) WKU Research Foundation, $62500 Funding received by Fiscal Year 2010 ARRA Funding Timeline Budget Project Development Interactions/ collaborations: no Intellectual property licenses: expected Project management: in fine track Construction management: in Process Start-up and commissioning: Yes Operations: Yes Project Participants

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4. Project Overview Using a Gantt Chart, show and describe the history, progress or performance against the approved baseline, including: –Cost variances: no; Schedule variances: no; Milestones or critical decision points: strictly followed Biggest technical (engineering) hurdle is process coupling or integration, which is being investigated as the current project is in its initial stage; No major change of the project scope. As project proceed, we continue refine economic aspect of the proposed process; The anticipated commercial cost of production would be comparable to that using the current commercial bio- diesel production, but has significant advantage in its environmental performance if future carbon credit could be accounted. 4

5. 5 Approach Project timeline is phased into three approaches: Approach I, identification major issues and setup all necessary supporting works, such as setup test procedures to test quality index of bio-diesel products, setup critical parameters, capacity and capability of test facility, and identification and characterization of targeted opportunity bio-oil resources which will be used in this test. Approach II, Technical development of coupling concept and investigation of thermodynamics, kinetics and energy balance, product selectivity, productivity. Approach III. Process integration and demonstration, including Setup of fully-functioned lab-scale facility assembles, demonstration of coupling concept in this facility, build-up necessary parameters for system scale-up; Conclusion on feasibility of concept on process coupling and integration, and suggestion on alternative routines to overcome technical hurdles during process coupling; Build-up economical factors of coupling process, compared to the conventional bio-diesel production, in view of process economics and efficiency. Two methanol catalysts and two transesterifcation catalysts will be prepared, and two bench reactors will be build-up in the intial stage. This will be followed up by the finalization of catalyst formula and the scale-up of the selected reactor mode.

6. 6 Technical Accomplishments/ Progress/Results This project is currently in its initial stage Task number 1.0 Planned Activities: Prepare the PMP document which is the guideline of activity throughout the project duration as appropriate Actual Accomplishments: Task 1.0 has been partially completed. ● The Project Management Plan (PMP) was revised on October 1, 2010. The DOE contract for this project was received in August. This project will be conducted between July 1, 2010 and June 30, 2012 for 24 months instead of 18 months as was described in the original proposal. There is no change on the Tasks. The project timeline in the project management plan has been revised to cover the project period between July, 2010 and June, 2012. The contract (matching fund) from Commonwealth of Kentucky in the amount of $62,500 was received in September. This KY contract have been effective on November 1, 2010. The WKU matching fund ($62,500) has also been established. ● An Research Associate, William Orndorff, has satarted to conduct this project.

7. 7 Technical Accomplishments/ Progress/Results (cont’d) Task number 2.0 Preparation of Coupling System for innovative biodiesel production: Actual Accomplishments: Task 2.0 has been cpartially ompleted. Several catalyst candidates have been located as our starting point to promote reaction kinetics in both methanol synthesis and bio-oil transesterification. Because of the originality of the reaction interface between solid and liquid, a lab-scale ambient pressure gas-solid simulator will be setup for the evaluation of catalyst candidates. A graduate student has started a simplified ambient pressure bio-diesel production system. The major goal of this setup would be the preparation of self-made bio-diesel products to setup the quality analysis and control platform of bio-diesel products. Design continuous flow reactor and autoclave (fixed bed) reactor for this project has been accomplished Manufacturers has started to build-up our desired reactor system, including continuous flow type and antoclave type reactors. Standards and analysis method on major quality of biodiesel product have been setup. One methanol and one transesterfication cata;ysts have been prepared for evaluation coupling reaction

8. 8 Technical Accomplishments/ Progress/Results (cont’d)

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10. 10 Technical Accomplishments/ Progress/Results (cont’d)

11. 11 Relevance Task 1.0 are essential for the success of the whole project, PMP provide a good guideline for project risk management and strategies for process development in view of minimization of water usage and accomplishment of high energy efficiency; Accomplishment of Task 2.0 provides an essential test platform for optimization of development of catalyst, co-solvent and process integration; Moving part of Task 4.3 (Characterization of Bio-diesel samples) before starting Task 3.0 and Task 4.0 provides another essential platform for quality control of biodiesel product

12. 12 Success Factors and Challenges Coupling effects in the process integration of methanol synthesis and transesterification of bio-oil are major focus and technical challenges of innovating bio-diesel production process and overcoming relative technical issues. Strategies on risk management including: 1) initialization of project executive with direct investigation of coupling reaction; 2) uncovering all necessary factors dominating thermal dynamics (product and phase equilibrium, and mass and energy transfers) and process kinetics during process coupling; 3) disintegrating segments of the whole process into technologies which are classified as those based on well-proof knowledge and those involving innovation-to-solution. Based on this risk management strategy, the whole project period will be roughly categorized with three approaches within 15 months of project approaches. 1) Dr. Pan will lead a team (Team 1) to integrate available resources in ICSET to uncover major issues on coupling reactions and preparation of system scale-up for commercialization purposes in Approach I; 2) Correspondingly, Dr. Cao will lead a team (Team 2) to specify technical hurdles and identify innovative solutions to overcome them in Approach II. Communication between two teams will be the identification and transfer of job tasks based on task classification aforementioned. 3) In Approach III, two teams will be re-united and pursue the system integration wrapping in all major issues during reaction coupling and demonstration of process concept in lab-scale facility. Two teams will address all aspects of defined tasks in Milestone Log during three approaches, but Team 2 will more focus on make breakthrough of identified major issues in coupling process. This strategy will secure timing achievement.

13. Benefits and Expected Outcomes This project will reasonably integrate currently available thermal conversion refinery technology, thus promote the viability of proposed technology into commercial market. Other significant benefits include: — the proposed process produces flexible renewable alternative transportation liquid fuels, which is either bio-diesel or a mixture of bio-diesel and methanol, thus, it’s convenient to use of these alternative liquid fuels through the existing infrastructure, which makes return on investment within one year; — the process feedstocks are 100% “green” and also flexible, including both various cellulose and hemicelluloses fractions of biomass and various bio-boils. Water usage could be largely reduced by using water from the self-sustainable drying of biomass; — the proposed process is economic and cost-competitive by optimally coupling and balancing heat transfer and promoting the thermodynamic shift, which decrease energy demands; — coupling properties of proposed process makes it possible to operate it at a small scale under competitive cost, which is technically available for utilization in rural area. 13

14. 14 Summary Summarize the key points you wish the audience and reviewers to take away from your presentation in the categories of: –Project management is effective and efficient, thoroughly and timely following PMP guideline; –Actual technical approaches could better control project risk, make sure the proposed process economic and environmental-sound; –Current accomplishments include setup of two test platforms (reactor and analysis procedures on biodiesel quality control); –Strategies of two parallel teams working separately and together –One of test platform on analysis procedure of biodiesel quality control has been setup; the second test platform is being built-up