Commercial Status of Direct Thermochemical Liquefaction Technologies

(EIA Bioenergy) Direct thermochemical liquefaction (DTL) of biomass is an important pathway to bioenergy and biochemical production in the circular economy. The aim of this report is to highlight how DTL technologies currently have a role to play in mobilising biomass into the energy sectors (heat, power and transport), and to highlight the
key features of commercially successful DTL operations.

The IEA Bioenergy’s Task 34 commissioned Scion to compile this report in consultation with its National Leaders.
The report covers current commercial activity, near-to market activities (e.g. demonstration plants) and some recently decommissioned near-to market plants. A database of DTL activities that includes pilot-scale operations is also attached to the report to capture some research activities that may move into commercial-scale production in the future.

Brief details of 10 commercial and 10 demonstration scale DTL plants that are either operational or late stage development, spread across 11 countries, are provided. The commercial-scale plants are mostly (9) pyrolysis technologies while the demo operations are a mixture of fast pyrolysis (6) and hydrothermal liquefaction (4). Wood and forest residues are the feedstock of choice for all the commercial plants. The bio oils produced are sold as fuel
for heating or for co-processing in petroleum refineries. In most cases, co-products such as electricity, syngas and chemicals are also produced that improve the plant economics. For example, the Red Arrow facilities in USA produce speciality chemicals from fast pyrolysis of wood residues. The largest plants produce around 80 million litres of bio oil per annum.

Commonly, the feedstock producers such as pulp mills and end-product producing petroleum refineries partner with technology developers in joint ventures. Commercial-scale DTL plants require significant investments of the order of USD 80 million for an 80 million litre plant and are financed through mechanisms such as equity, debt financing, shareholding and government grants.

The demonstration-scale activities show growing interest in hydrothermal liquefaction technologies. More diversified feedstocks such as agricultural and urban waste and sewage sludge are targeted with recent interest in non-bio feedstocks such as waste plastics and used tyres.

Some operations have been discontinued during the past years for various reasons. Notable among them are the Kapolei plant in Hawaii, United States that never became operational and the Muradel plant in Australia that has gone into voluntary administration.

The information presented shows that DTL technologies have matured to become a key vehicle for bioenergy commercialisation. Increasing number of pilots have succeeded bridging the technology valley of death by advancing the technology readiness level beyond 6 at reasonable costs to demonstrate scalability and financial viability. Favourable policy initiatives will further increase the number of commercial DTL plants contributing to increasing bioenergy production.

It is recommended that the data base is frequently updated by keeping a watching brief on the developing commercial space. READ MORE