Lapol Disposable Food Service Packaging From the Earth Back to Earth SEPTEMBER

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1 Lapol Disposable Food Service Packaging From the Earth Back to Earth SEPTEMBER

2 Food Service Disposables in China Environmental Food Service Packaging is Growing In 2016, China consumed about 12 billion disposable food containers. The growing green consciousness will drive a huge demand for environment friendly products in the future. Only 3 billion met environmental protection standards. 2

3 Food Service Disposables Competitive Factors Low cost Biodegradable and Bio-Based Thermal stability Mechanical strength Water/grease resistance 3

4 Plastic Types Bio-based or Oil-Based? Biodegradable or non-biodegradable? 4

5 Traditional Disposable Food Service Packaging Options POLYPROPYLENE EXPANDED POLYSTYRENE Non-biodegradable Oil-based (Not bio-based) Non-renewable resources Large carbon footprint 5

6 What are Bio-based Plastics? Biobased plastics are made from renewable materials like corn, sugarcane and cassava and are converted to resins like poly lactic acid (PLA). Some biodegradable plastics are not biobased. Biobased plastics can be injection molded or thermoformed from sheets. They have a reduced carbon footprint compared to oil-based plastics. 6

7 Food Service Disposables in China Biodegradable and Non-Biodegradable NON-BIODEGRADABLE CONTAINERS Polystyrene containers Polypropylene containers Polyethylene containers BIODEGRADABLE CONTAINERS Poly lactic acid containers Plant fiber containers PARTIALLY BIODEGRADABLE CONTAINERS PP/PE Starch containers 7

8 Understanding Bio-Terminologies Degradable Able to be broken down into smaller pieces by grinding, with sunlight to be photodegradable or by oxidation or oxo-degradable. These methods make the bulk of the plastic smaller, but the container is still there; it just gets smaller. Biodegradable Able be broken down by micro-organisms and digested so the carbon chains are broken apart and processed by, and become part of organic living things. They become part of the carbon cycle of the ecology of the earth. Compostable Able to biodegrade within specific conditions. The European EN and American ASTM D6400 standards require 90% CO 2 evolution within 180 days, less than 10% retained on a 2 mm sieve and no negative impact on plants and animals. Compostable is the Highest Standard! 8

9 Biodegradable Resin After 80 Days According to ASTM D6400 and EN internationally recognized standards 9

10 Comparative Carbon Footprint Among Disposable Food Service Plastics PC 5 PS PET PP LDPE PLA TODAY 2.2 * LAPOL PLA TARGET Source: Int. Journal Life Cycle Assessment, LCA of the manufacture of lactide and PLA 3 AUG PLA target is under development at Lapol R&D. Emissions from the production of common polymers (kg/co 2 equivalent per kg of polymer cradle to gate) 10

11 What Are Your Food Service Disposable Packaging Priorities? Product Performance Recyclability Affordability Carbon Footprint Biodegradability Oil or Bio-based Renewability & Sustainability 11

12 Lapol Bioplastics Designed to meet the priorities of its end users: The Lapol Triangle of Bioplastic Design Priorities 1. Environmental a) Biobased b) Biodegradable 2. Fully functional a) Heat resistance b) Grease resistance c) Sturdy 3. Cost effective a) Engineered for lower costs High Performing Designed with the Environment in Mind Cost Effective 12

13 Lapol PLA Containers The Next Generation of Disposable Food Service Packaging Biodegradable Thermal Resistant Renewable and Sustainable Grease Resistant Sturdy Cost Competitive High Quality 13

14 The Lapol HDT-P High Heat Resistance Bioplastics Designed for strength at higher temperatures 14

15 Lapol HDT-P Heat Resistant Bioplastics % LAPOL HDT-P Dimension Change (µm) Standard PLA 10% LAPOL HDT-P Temperature ( o C)

16 Lapol s Superior Strength and Toughness Properties Enable Thinner Walls WALL THICKNESS COMPARISON LAPOL FORMULATED RESINS 40% Thinner Container Stronger Resin Thinner Walls Lower Costs Wall Thickness Traditional Polypropylene Lapol Formulated Resin 16

17 Flex Modulus MPa Mechanical Properties Comparison of Lapol and Common Plastics 1000 Heat Distortion Temp (oc) Tensile Modulus MPa 1 PP LDPE Lapol Starch LDPE Bagasse Fiber EPS Foam Elongation % Tensile Strength MPa Property PP LDPE Lapol Starch LDPE Bagasse Fiber EPS Foam Flex Modulus MPa Tensile Modulus MPa Tensile Strength MPa Elongation % Heat Distortion Temp ( o C) Cost per tonne $1,800 $2,000 $2,650 $2,700 $2,400 $2,300 Cost per Unit $0.07 $0.08 $0.09 $0.05 $0.07 $

18 Lapol: The Future of Sustainable Packaging Bio-based Biodegradable & Compostable ASTM D6400 & EN Compliant Thermal & Grease resistant Sturdy Cost Competitive with Standard Plastics 18

19 Lapol, LLC 3757 State Street Suite 2A Santa Barbara, CA USA

20 Appendix Competitive Product Comparison Intellectual Property 20

21 Food Service Disposable Packaging Options Compared POSITIVE FEATURES EXPANDED POLYSTYRENE FOAM o Good thermal performance o Good grease resistance o Low cost NEGATIVE FEATURES o Not Biodegradable o Not biobased (not renewable or sustainable) o Not sturdy, but functional o High carbon footprint 21

22 Food Service Disposable Packaging Options Compared POSITIVE FEATURES POLYPROPYLENE o Good thermal performance o Good grease resistance o Moderate cost o Sturdy NEGATIVE FEATURES o Not Biodegradable o Not biobased (not renewable or sustainable) o High carbon footprint 22

23 Food Service Disposable Packaging Options Compared POSITIVE FEATURES PLANT FIBER PACKAGING o Biodegradable o Bio-based (renewable and sustainable) o Low cost o Recyclable NEGATIVE FEATURES o Low quality o Poor performance, not sturdy o Poor grease resistance 23

24 Food Service Disposable Packaging Options Compared POSITIVE FEATURES STARCH POLYPROPYLENE o Partially Biodegradable o Partially Bio-based (renewable and sustainable) o Low cost o Good quality NEGATIVE FEATURES o Diverts a food source o Not fully biodegradable o Not fully bio-based o High carbon footprint 24

25 Lapol s Patented Bioplastics Technology Intellectual Property POLYMER TOUGHNESS HIGH TEMPERATURE RESISTANCE 25