Bio Oil

Bio Oil is the final result of the flash pyrolysis process of organic material. Depending on the type of biomass, Bio Oil has a calorific value approximately half of diesel fuel. Since bio oil is a co product formed along with biochar during pyrolysis process, the feedstocks for bio char listed in section applies to bio oil as well.

Value Chain

Biomass can be converted to bio-oil via the process of fast pyrolysis, which is the same process used for biochar production. This process breaks down the structure of the biomass and yields three products: condensable gases (bio-oil) (70% by weight), solid char (20% by weight), and non-condensable gases (10% by weight). Bio-oil obtained is catalytically converted into hydrocarbon fuel (green diesel) by the process of hydro cracking. The bio oil, along with bio char is slurried together and catalytically processed into green diesel by the Fischer Tropsch process.  The pyrolysis oil or bio oil is stablised with less than 2% oxygen and is then hydrocracked to obtain stable hydrocarbon oil which is subjected to distillation to yield gasoline and diesel fuel blendstocks. 

 

Business Opportunities from the Value Chain

Since the value chain, process and feedstock for bio oil is same as bio char, the business opportunities needs no further discussion here. Refer section for more information. 

Global Scenario and Market potential

Introducing bio-oil, into the markets, will not be easy as it has many differences in its properties as compared to conventional liquid fuels and many challenges remain. In view of such difficulties, a stepwise market introduction is proposed: bio-oil would first replace fuel oil in boilers, where its properties would not prove prohibitive. The traditional problem with bio oil is that it's unstable and acidic, becoming thicker during storage. This causes it to char when burned. Also, bio oil cannot be manufactured in existing refineries with current technology. Only in recent days, it has been possible to produce stable bio oil with complete control over its unstable ingredients. In the short-term, the bio-oil market lies in fuel oil and natural gas replacement in lime kilns and boilers. The challenge is to develop and demonstrate a technical and economic concept for these applications.

Pyrolysis Oil Supply to EU  *(x 10-3 million ton)

Year

2007

2008

2009

2010

2011

2012

Supply*

99

240

940

2222

3644

5600

European Market Study for Biooil (2006) stated that the supply of pyrolysis oil will probably grow slowly for 1-3 years as investors vie for opportunities to build, biomass supply is arranged, and markets and prices become more apparent. Supply is estimated at less than 1 million tons in 2009, but can reach 5 million tons by 2012 if the large plants currently under construction prove successful and if sufficient capital investment is available.  

References: 

Related Links: