News and Announcements
3rd Party Report Confirms Economic Advantages of Leaf Resources Glycell Process
- Published May 06, 2015 4:06PM UTC
- Publisher Wholesale Investor
- Categories Company Updates
ASX Announcement, 6th May 2015
Highlights:
- Report confirms an almost 30% cost advantage of GlycellTMprocess over NREL dilute acid (full costing basis before co-products allowance)
- Advantage increases to almost 60% when co-products are included
- Full cost of production for GlycellTM $151/t compared to dilute Acid $363/t
- Report predicts GlycellTM process to have a 25% capital advantage over dilute acid
- At $151 per tonne Leaf Resources’ GlycellTM sugars could economically replace corn starch as a feedstock for ethanol production
Leaf Resources recently commissioned a report from ResourceInvest Pty Ltd to independently compare Leaf Resources’ GlycellTM process with a dilute acid pretreatment process as described by National Renewable Energy Laboratory (NREL). The executive summary of that report stated:
Leaf Resources ’ GlycellTM pretreatment process offers compelling cost advantages over current practice dilute acid pretreatment.
Our modelling takes dilute acid process economic data from the US Government’s National Renewable Energy Laboratory (NREL) and compares it with the GlycellTM process to determine a minimum sugar selling price (MSSP). Sugars are an intermediate product in the formation of biofuels or biochemical products, and the MSSP represents one of the major costs in this production stream.
The NREL process uses a corn stover biomass feedstock. We have assumed a comparable bagasse biomass feedstock for the GlycellTM process.
The conversion efficiencies achieved by the GlycellTM process offer almost a 30% cost advantage in sugar production compared with our normalised NREL sugar production model.
The GlycellTM sugar price is US$219 per tonne compared with US$301 per tonne for the normalised NREL model, or a 27.3% cost advantage, on a pre return on investment and capital allowance basis. On a post return on investment and capital allowance basis the cost advantage is $269 to $384 per tonne, or 29.9%. This cost differential is also before any allowance is made for co-product credits, which in the GlycellTM case may be substantial.
A viable lignin co-product stream from the GlycellTM process, where lignin is sold at US$450 per tonne, reduces the overall cost of sugar production (including a 10% return on investment and capital allowance) to US$151 per tonne compared with US$363 per tonne for the NREL model where the waste product is burnt for steam and electricity generation. This is an almost 60% cost advantage.
To read the full document, please click on the link below.
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