Verdezyne DDDA Design Competition

Transcription

1 Verdezyne DDDA Design Competition Peter Cramer, AIA, NCARB, LEED AP M+W Group Vice President, Life Sciences Facility Design & Technology

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3 Green Chemistry by Design

4 Introducing Verdezyne Privately-held industrial biotech company Formed in 2008 to develop renewable fuels and chemicals Headquartered in Carlsbad, California More than 60 full-time employees Venture backed by strategic and financial investors

5 Fermentation-Based Technology Platform Bio-Sebacic Acid Feedstock Strategy Proprietary Technology Chemical Intermediates End Products Vegetable oils Soapstocks and distillates Other oil co-products (i.e. PKO, PFAD) Using fatty acids from any source to produce chemicals Organisms engineered for yield and selectivity Fermentation-based production Highest quality products Robust yeast platform using industrial fermentation methods Diacids used in fibers, polymers and coatings Other organic acids Acrylic intermediates Engineering Organisms & Processes for Cost-Effective Renewable Chemicals Total $70B+ Market Nylon and polyesters Fibers Polyurethanes Engineered plastics Lubricants Coatings & adhesives Corrosion inhibitors Transparent thermoplastics Total $1.5T+ Market

6 Expanding the Oleochemical Value Chain Crude Vegetable Oils Standard Conversions Edible Oils Oleochemicals Fatty acids Fatty alcohols Biodiesel Verdezyne Technology Crude Oil & Natural Gas Petrochemical Refining Petrochemical Intermediates Adipic Acid Sebacic Acid DDDA

7 Providing Markets with Bio-based Alternatives Paints/Coatings Thermoplastic Polyurethane Foams Elastic Parts Industrial commercial carpet paints coatings adhesives Adhesives Bio-Adipic Acid Plasticizers Resins Automotive seats + dashboards tire cord lubricants belts + hoses Bio-Sebacic Acid Bio-Dodecanedioic Acid Polyamide N6,6, N6,10 N6,12, Others Fibers Resins Parts Films Home carpets upholstery furniture Biodegradable Plastics Films Ag Covering Packaging Recreation footwear apparel camping gear Polyester Polyol Spray Coatings Thermo-Set Articles Personal packaging cosmetics fragrance flavorings

8 Yeast Production Platform Robust under industrial processing conditions Uses inexpensive feedstocks Produces multiple products Fermentation at acidic ph Phage resistant Unique biochemistry High carbon flux through desired biochemical pathways Tolerant to saturating product concentrations Host genome sequence and advanced genetic toolbox allows rapid development for new products

9 Multiple Conversion Technologies, Gen 1 Gen 1 Gen 1 Gen 1 Conversion Purified fatty acid feedstock Product length determined by feedstock DDDA produced by this technology Gen 1

10 Multiple Conversion Technologies, Gen 2 Gen 2 Gen 2 Conversion Mixed fatty acid feedstock Product length determined by pathway engineering Adipic Acid and Suberic Acid produced by this technology

11 Renewable Dodecanedioic Acid Lauric acid Cells and insoluble DDDA product DDDA Gen 1 Nylon 6,12 resin Uses Gen1 technology Aerobic fed batch process Includes a co-feed of dextrose Final titer over 120 g/l of DDDA Productivity over 1 g/l hr Market size, 40 metric tons per year Applications in engineered plastics, automotive parts, monofilament, and coatings Process demonstrated at 180,000 L scale Final product exceeds industry specifications

12 BIOLON DDDA: Scaling to Commercial Production Lab Pilot MBI/BEI Commercial Tolling Commercial Strain development Develop downstream unit operations Fermentation validation Equipment selected for downstream unit operations Further validate fermentation scale Generate small samples Upstream and downstream linked Validate commercially relevant fermentation and downstream Generate product for market development Commercial plant to be constructed in Malaysia Groundbreaking in

13 Tracking Performance Renewable DDDA Scale-up Consistent fermentation performance at all scales Product quality verified at scale in customer testing

14 Summary Engineering industrial yeast strains with robust performance at commercial scale Feedstock flexibility allows the conversion of different fatty acid feedstocks to commercially important chemicals Polymer-grade biobased DDDA, adipic acid, and sebacic acid produced from renewable sources Other diacids being produced as part of technology development Kilogram quantity samples available for qualification testing Metric ton quantities of DDDA available in Q Construction of commercial facility to commence Q Verdezyne technology enables the conversion of vegetable oils into higher value products

15 DDDA Plant Design Competition

16 DDDA Project Why Design Competition? Initial FEL3 Was Not Rigorously Cost Trended FEL3 was $142 MM after optimization of FEL2 at $108 MM Action: must reduce scope to reduce cost to $ MM Simplify building and layout Minimize materials and complexity Reduce the size of the structures to reduce cost Option Continue with incumbent AE in value engineering Bid other firms to revise FEL3 and control estimate Design competition for EPCC to revise FEL3

17 Option 1: Revise Existing FEL3 EP & CC Bids Revise FEL3 by incumbent AE, Bid EP and CC separately 10 weeks to revise and estimate FEL3 6 weeks to solicit EP bids 2 weeks contractor selection and negotiation 4 months before start of EP firm selected 8 weeks Construction bids 4 weeks review and selection 2 weeks contractor selection and negotiation Add 2 months until start of construction contractor Total 6 months minimum until start of Construction contractor Cost: $ MM minimum

18 Option 2 FEL3 Revised by New Design Firm Revise FEL3 New Firm then bid EP and CC Separately 4 weeks to engage new design firm and tech transfer 10 weeks to revise and estimate FEL3 6 weeks to solicit EP bids 2 weeks EP contractor selection and negotiation About 5-6 months until start of EP Contractor 8 weeks construction bids (in parallel to EP contractor bidding) 4 weeks review and selection 2 weeks contractor selection and negotiation Add 2 months until start of CC Contractor Total 7-8 months until start of construction contractor Cost: $ MM plus added internal costs for bidding

19 Option 3 FEL3 EPCC Design Competition Design competition for EPCC bids on current FEL3 Package 4 weeks to prequalify firms and issue RFP uses current FEL3 8 weeks for design competition to revise FEL3 to budget Bidders paid $75k incentive to revise FEL3 scope and meet target price Review presentations and proposals and select best team and price (mid Sep 2015) 4 weeks negotiate EPCC contract Start building permit package upon EPCC selection and prior to contract 8 weeks to finish Approximately 4 months until start EPCC contractor Option 3 advantages: Saves 2+ months to start of EP Best Ideas from competing teams Assess capability and performance each team Advances EPCC selection

20 Impact of Different Options - Durations Activity/ Weeks Option 1 Option 2 Option 3 Select Alternate Design Firm N/A 4 N/A Prequaly & Design Competition N/A N/A 12 Contract EPCC Firm N/A N/A 4 Revise and Update FEL Prequalify & Bid EP Firm 6 6 N/A Award & Contract EP Firm 2 2 N/A Building Permit Package (Parallel Activity) Bid CC Firm (Parallel to EP Bid) 8 8 N/A Award & Contract CC Firm 6 6 N/A Total weeks to Construction Firm Selection To Building Permit Application Acceptance Options: 1. Incumbent AE revise FEL3 package EP + CC contracts 2. Different design firm revise FEL3 EP + CM contracts 3. Design competition for EPCC to revise FEL3 Note: Building permit accepted for processing 4 weeks after submission

21 Selection Criteria Design Competition Firms Identified 12 firms, short-listed 6 for evaluation, selected 4 bidders International EPCC contractor with global procurement expediting and materials management capability Office and experience in Malaysia and Singapore (local Johor experience preferred) Demonstrated experience in design and construction of industrial biotechnology and aerobic fermentation manufacturing facilities Local Malaysian office and field experienced personnel capacity to complete the project within the project timeline Financial capacity to execute project in Malaysia Knowledge of all project requirements in Malaysia Commitment in participating in a design competition Unsuccessful bidders receive US$75K for their added effort

22 Advantages of Design Competitions Before Starting a Design Competition: Know the technical requirements of the project Clearly outline the goals and objectives If possible, develop clear measurements of success (rubric) Benefits of Design Competition: Demonstrates level of engagement/ commitment of bidder Focus on project not boilerplate proposals Bidder project team has to know project detail and cost drivers to succeed cost control becomes built-in Tests interaction between Owner and bidder teams Project understanding assures a rapid project start

23 DDDA Plant Optimization Site and Utility Optimization Fermentation Building Optimization Fermentation Support Building Optimization Warehouse (CFF) Building Optimization Structural System Optimization Purification Building Optimization

24 Design Competition Overview GOAL: Generate design and project execution solutions to optimize new Verdezyne DDDA Facility planned for BioXcell Industrial Park Approach: Assembled Diverse Team of SMEs to generate value engineering (VE) options Conducted VE technical workshop with client Nothing sacred in original design Reviewed VE items list developed Presented revised layout based on the suggested modification items Result: Client agreed to 67% of VE proposed items Proposed layout accepted

25 Design Competition Overview Big idea Reason for completion Why it fit this project Structure of competition Selection criteria Outcome

26 Consolidation of Structures Optimized DDDA Plant FEL-3 DDDA Plant BO1 BO2 Stretch goal: Remove $48M from project total BO4 BO3 BO2 BO3 BO4 Consolidation of structures Shorten utility runs BO1

27 Plant Optimization Items Linear Process Flow Linear Process Flow: Use a continuous process strategy and linear process flow wherever possible Raw materials come in at one end and finished goods leave from the other Minimize space for raw materials, work-in-progress and finished product Use flow through racking and double deep pallet racking wherever possible to reduce warehouse footprint

28 Plant Optimization Items Site & Utility Yard 1st Pass Shorten pipe racks where possible Major utilities compress and MCC buildings next to fermentation Substation building next to production building Central corridor scheme linear overall building flows Administration function built into warehouse second floor design Improved truck circulation and access to warehouse

29 Optimization Items Fermentation & Fermentation Support Buildings Reduced central bay by 2 meters Utilize 2.75:1 fermenter ratio to reduce height Relocated stair and elevator inside fermentation to fermentation support building Pipe rack entry point in line with fermenters Moved dextrose storage tanks to outside of the building Moved media tank to warehouse for improved material handling Reduce length of pipe rack with narrower building

30 Architectural Optimization Item Purification Building Reduced central bay by 2 meters Eliminate one bay of building Reduce length of pipe rack Provide central hallway access Relocate super-sack loader Improve flows to finished goods Create central corridor on second floor linking 2nd floor support functions with labs and process areas Flaker located directly adjacent to finished good section of warehouse Central corridor provides link between warehouse, office, and production

31 Use pre-engineered steel structure to reduce steel by 30%. Erect steel frame in days using modular roof panel techniques. Building Optimization Massing and Structural System

32 Structural System Design Equipment access platforms around fermenters and process skids Portal frame structure for Fermentation building, flexible, fast & low cost, no fireproofing for single story building Bar joist roof trusses with venting clerestory on purification and warehouse / central functions building

33 Facility Cost Reduction Items Modular Building and Systems Standardized the design on preengineered and off-the-shelf component for building shell and MEP components. Design for easy fabrication and on-site installation.

34 Create a baseline should cost model to define the project costs and determine where additional cost reduction strategies should be targeted. Determine where higher pre-engineered system cost is offset by schedule savings cost. New Plant Study Facility Cost Reduction Items

35 Design Study Cost Savings Approach & Results Cost savings from: Building design optimization Equipment price reductions including installation Hybrid structural systems Modular support facilities Sea-container utility yard concept

36 Video

37 Current Design In Detailed Engineering Phase