Press Releases

German Federal Chancellor and Prime Minister of Saxony visit CHOREN.

Building phase of World’s First Commercial Synthetic Biofuel Production Plant successfully completed.

Building stage of synthetic biofuel (BTL) manufacturing plant completed. Over 130 guests from industry and politics visit Freiberg. Future full-scale commercial BTL production is the hot topic.

Freiberg, 17 April 2008

• Merkel: "Progress can be achieved in climate protection when government, industry and science work hand in hand."
• Milbradt: “Today marks an important step on the road to a sustainable and secure energy supply
• BTL is a key technology for achieving the climate objectives for road traffic
• CO2 emissions up to 90% lower than from conventional diesel
• BTL production does not compete with food production
• Shell, Daimler and Volkswagen emphasise their commitment to synthetic biofuel made by CHOREN

CHOREN is marking an important milestone with completion of the building phase of the world’s first commercial synthetic BTL biofuel production plant. This was acknowledged today by Chancellor Angela Merkel and the Prime Minister of Saxony, Georg Milbradt during a visit to the ‘Beta plant’ in Freiberg, Saxony.

Mildbradt, Merkel, Blades An important phase now follows – the commissioning of the plant, which will result in production of up to 18 million litres of BTL. The commissioning will take place in stages over several months. 113 sub-systems in 26 main operating units will be put into operation individually and then consequetively. Forest residue and waste wood will be used as raw materials. The biomass will not compete with food production. Synthetic biofuel can be used in all diesel engines, without modification.

Chancellor Merkel emphasised the significance of Germany’s commitment to combating climate change in front of more than 130 guests. “The Freiberg project demonstrates what progress can be achieved in the development of climate protection technology when government, industry and science work hand in hand.”

Saxony’s Prime Minister, Georg Milbradt, said "At CHOREN the innovative tradition of Freiberg’s fuel research is being continued. A process for producing petrol from coal was developed here previously; now the same feat has been achieved with wood. The result is a more sustainable, cleaner and more economical biofuel without the social and environmental side effects as in the case of bio ethanol.” He went on to add “Today marks an important date for Germany and the world on our journey towards secure and sustainable mobility. Freiberg is already Germany’s solar capital and perhaps soon also Europe’s. Bioenergie could well become a similar success story.

Construction of the BTL production plant

The completion of the building phase of the Beta plant is a milestone on a longer journey.
The vision of the company founder, Dr. Bodo Wolf, was to produce energy from renewable raw materials in a sustainable and environmentally-friendly way. That led to the development of the high-technology Carbo-V® process, successfully tested in the 1-MWth–Carbo-V® pilot unit (22,500 operating hours).
The pilot unit was extended in 2002 with the addition of fuel synthesis. The BTL diesel fuel manufactured was then subjected to comprehensive fleet tests at Daimler and Volkswagen. Its performance and emission qualities during combustion were outstanding, proving that the CHOREN technology had now evolved beyond the laboratory stage.
The next step became possible through the financial involvement of private individuals around Hamburg’s LichtBlick group, still today CHOREN’s largest shareholder
The building of the world’s first commercial BTL production plant (Beta plant) in Freiberg was completed in two stages. Firstly, the Carbo-V® gasifier was set up with its main process equipment, the low temperature gasifier (NTV) and high-temperature gasifier (HTV). Then, the expansion incorporating the FT (Fischer-Tropsch) synthesis through partnership with Shell, integrating the most advanced FT technology:- the SMDS process.
Over 150 suppliers and around 50 assembly companies, including many from the region, were involved in the building of the Beta plant. CHOREN designed and manufactured 180 main components itself. Over 600 companies had been involved in the development of the Carbo-V® technology. By April 2008 around 800,000 man-hours have been utilized in development and assembly, and the overall number of employees almost doubled.

Commissioning of the Beta plant

In the coming months 113 sub-systems in 26 main operating units will be started up individually then in sequence. Around 1,200 steps will be needed for the commissioning of these systems, which in themselves consist of several sub-steps. A highly-complex process, which, not unusually for plants of this complexity, will take 8 to 12 months. CHOREN will receive valuable support for this from Shell.

Biomass to Liquid (BTL)

Tom Blades, CEO of CHOREN, stressed: “BTL is a key technology for achieving the climate protection objectives of road transport.” A reduction of up to 90% in greenhouse gases, no competition with food production and better performance than fossil fuels are the most important features of the synthetic biofuel. It is an inestimable advantage to CHOREN to have experienced companies such as Shell, Daimler and Volkswagen as partners and shareholders – on our side developing, producing and marketing BTL.”
Rob Routs, Executive Director of Royal Dutch Shell plc, said: “Shell is committed to a secure, affordable and sustainable energy supply in the future. We are working both on making fossil fuels more efficient and on development of alternative fuels. With next generation biofuels such as the BTL fuel from CHOREN, we are leading innovation in low-carbon fuels for sustainable mobility.”
“We want to move away from oil and towards renewable energy sources with positive side effects. Second generation biofuels can help us in that respect,” said Prof. Dr. Martin Winterkorn, chairman of the supervisory board of Volkswagen Aktiengesellschaft. “Volkswagen has been calling for and promoting second generation biofuels for a long time, which have an excellent environmental balance, help the engine attain optimum combustion, and do not compete with food production,” continued Winterkorn.
"The second generation biofuel stands out because of its high quality, excellent CO2 balance and also because it does not compete with food production,” says Dr. Dieter Zetsche, chairman of Daimler Aktiengesellschaft and head of Mercedes-Benz Cars. “That makes SunDiesel® the most promising option among the synthetic biofuels. It can be used in any blending ratio in current and future engine generations making a major contribution towards sustainable mobility.”

Major advantages of synthetic biofuel – Compared to fossil diesel, BTL reduces life cycle CO2 emissions by up to 90%. – BTL is virtually free of aromatics and sulphur, with significantly lower emission of carbon monoxide and hydrocarbons, as well as nitrogen oxides and particulates. – BTL is a designer fuel that can be used in any current or future diesel engine, without the need for modifications. – Forest residues, waste wood, fast-growing timber and agricultural resiude (eg straw) can be used as biomass for production purposes. This means that the BTL manufacturing process does not compete with food production. – BTL has a high acreage yield in its production. This is three times greater than for example biodiesel from rapeseed.

Pressure for an investment decision in favour of a larger Sigma plant in 2009
Looking ahead, Tom Blades said: "We have finished one successful phase today, but we still have a long way to go. In the coming months the Beta plant will be commissioned. In parallel we are working on a concept for the first BTL plant on an industrial scale, with an annual output of 270 million litres of biosynthetic fuel, to be built in Schwedt, in Brandenburg. Once the Beta plant has proven its viability, and provided the final decision on investment for Schwedt is made in 2009, production could commence in 2012/2013. But the medium-term legislative industrial policy has to be right for that."

The statutory framework created for first-generation biofuels has only been defined until 2015, which is not long enough for investors to plan for the first Sigma plant with any certainty. Blades continued: "Nevertheless, we are very confident that the politicians will shortly introduce economic policy framework enabling second-generation biofuels, and thus the synthetic biofuel made by CHOREN, to be a key contributor towards achieving the ambitious climate targets of the future."

Background

CHOREN
CHOREN is a world leader in gasification systems for solid materials containing carbon. It has developed into the leading manufacturer of synthetic biofuels (BTL) with its internationally-patented Carbo-V® process and has registered offices in Freiberg and Hamburg. The company cooperates closely with Shell, Volkswagen and Daimler, who are not only committed shareholders, but also important strategic partners, involved in the further development of the biofuel manufacturer.
CHOREN currently has 230 employees, of whom 70 work at the Beta plant in Freiberg.

The Beta plant in Freiberg
Maximum production: 18 million litres of BTL p.a (= the annual requirement of about 15,000 cars)
Biomass requirement: About 65,000 tonnes of wood (dry matter) p.a.
Raw materials:Forest residue and waste timber
Supply is secure for several years
Investment:About €100 million
Technical details:31.5 km pipelines, 57 km electrical cables,
5,000 fittings, 5,000 measuring signals,
60 pumps, 181 containers and reactors
45 MWth output
Partners:Engineering Partner: EDL
Synthesis/hydrocracking partner: Shell

The Carbo-V® process
The Carbo-V® process developed by Choren has three stages.
During the first stage of the process, the biomass is continually carbonized through partial oxidisation (low temperature pyrolysis) using air or oxygen at temperatures between 400 and 500°C, i.e. it is broken down into a gas containing tar (volatile constituents) and solid carbon (char).
During the second stage of the process, the gas containing tar is post-oxidised using air and/or oxygen in a combustion chamber operating above the melting point of the fuels.
During the third stage of the process, the char is ground down into pulverised fuel and is blown into the hot gasification medium. The pulverised fuel and the gasification medium react endothermically in the gasification reactor and are converted into a raw synthesis gas. Once this has been treated in the appropriate manner, it can be used as a combustible gas for generating electricity, steam and heat or as a synthesis gas for producing SunDiesel®.