Biobased opportunities

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1 In the current economy

2 2 This presentation Drivers on the biobased economy Structure of the biobased economy: a hypothesis Examples of opportunities and pitfalls

3 3 Drivers of the biobased economy Main driver is still price, with a slight bias from sustainability A few opportunities are created by agricultural policy in the EU Driver Origin Direction Biofuels directive Gov. - / + Oil price fluctuations and uncertainty Ind. + Green lobby, circular economy NGO + / - Climate debate and CO 2 reduction protocols Gov. + New chemical product development Ind. + Shale gas exploration Ind. / Gov. Food crises Gov. / Ind. Agricultural waste management Gov / +

4 4 What is the biobased economy? A. A complete replacement of all fossil hydrocabons by biobased ones B. Coverage of a large part of our energy needs out of biomass C. A switch of feedstock for the chemical industry D. A way to utilize agricultural waste and improve farmers income E. All of the above, partially Total Photosynthesis: 90 TW Total Hydrocarbon use: 17 TW (70% fossil) 19% of photosynthesis capacity booked

5 5 Hydrocarbon processing in Europe Production in million ton/a Fuels Chemicals Agricultural production

6 6 Opportunities for manufacturing industry Biogas Proteins Agro-chemicals Lignocellulose Sugar Crude Building Blocks New small factories Cellulosics Lignins New unit operations Revamping installed base

7 7 Business opportunity 1: lignin Current industrial state-of-the-art Lignin is the largest biomass resource beyond cellulose. Existing annual lignin production by paper & pulp industry 50 Mton. Lignin based products are in the market place. 95 % to heat and energy production, 5 % to materials Lignosulphonates from sulphite pulping (50 % of materials) Kraft lignin and sulphur-free lignin < 1 % Commercial LignoBoost process to obtain lignin from kraft pulping process

8 8 Possible value chains based on sulphur free lignin Lignin producer Auxiliary supplier Lignin producer Lignin modification Lignin modification Lignin modification Bitumen Dispersion coatings Radical scavenger Flocculation Flame retardent

9 9 Business pitfall: second generation bio-ethanol TMO Renewables, UK Borregaard, Weyland, Norway BioGasol, Inbicon, Denmark Sekab, Sweden Chempolis, Finland Süd Chemie, Germany Abengoa, Spain Beta Renewables, Italy

10 10 Percentage of funding of total construction costs for the pilot plant Abengoa Energy TMO Inbicon Weyland grants loans EU venture capitalist Company funds Borregaard Percentage of funding of total construction costs

11 11 Production costs /l Abengoa Beta Renewables Biogasol Sekab Inbicon TMO Biosulfurol Kazi et al. NREL Stage Comm. Comm. Comm. Dem. Pilot Dem. Dem. Report Report Input (ton/day) Output (million l/year) ,4? Mg/day of corn stover?? ,16? 31,2 230

12 12 Business opportunity 2: Biobased Aromatics Chemicals Materials Performance Topic with huge impact (>MMton/year) Coatings Business (demand) driven, green materials Ambition: Belong to global top-5 innovation clusters for development of biobased aromatics within 5 years (requires >50 researchers) Cooperation: agro meets chemistry & several RTO s

13 13 Roadmap biobased aromatics Application Programs: windows on application areas (chains), guiding choices in the TPs Technology Programs: Development of key enabling technologies Specialty Aromatics Derived Products Bulk Aromatics Alternative Molecules Chain (unit operations) Feedstock pretreatment Cost-effective production of sugar crude Liberation of S-free lignin Biotechnology Efficient utilization of C1-C5 substrates Optimal production of aromatic intermediates Chemistry Selective conversion of intermediates into aromatics (Mild) cracking of lignin into phenolics Process technology (Bio-)Chemical process, separation, purification Time (delivery of viable technology)

14 14 Concluding Main driver is still price Main opportunities now in niche applications Growth opportunities on long term toward bulk and commodity