Introducing MEKONG making a greener PET an economic reality

Transcription

1 14 March, 2018 Amsterdam, the Netherlands Introducing MEKONG making a greener PET an economic reality Eelco Blum PET Value Chain: Transitioning from Linear to Circular Conference: March 2018, Amsterdam

2 Safe Harbor Statement This document is being furnished to you solely for information purposes and may not be reproduced or redistributed to any other person. This document does not constitute an invitation to offer to sell, or to a solicitation of an offer to subscribe for or purchase, investment products or securities, including securities in Avantium N.V. (the Company ), and the information provided is not intended to provide a sufficient basis on which to make an investment decision. The information in this document is subject to change. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended or an exemption from registration. No representation or warranty, express or implied, is given as to the completeness or accuracy of the information or opinions contained in this document and neither the Company nor any of its directors, members, officers, employees, agents or advisers accepts any liability from any direct, indirect or consequential loss or damage arising from reliance on such information or opinions. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. This document may include statements that are, or may deemed to be, forward-looking statements. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms believes, estimates, plans, projects, anticipates, expects, intents, may, will or should or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events, intentions, beliefs or expectations. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements are based on and reflect the Company s current plans, estimates and projections as well as its current view with respect to external conditions and future events; any forward-looking statements are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company s business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. The Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this document whether as a result of new information, future developments or otherwise. 2

3 1 Avantium In a Nutshell Amsterdam & Brussels Ticker: AVTX Renewable Chemistries 2-Gen Sugars, Renewable Technologies, Electrocatalysis of CO 2 YXY Technology: FDCA to PEF Novel Bio-Based Plastic JV BASF/Avantium Catalysis 109 M Raised from IPO 15 March 2017 Foundational Technology and Expertise Leading Service and System provider Founded in 2000 Amsterdam 60+ patent families Future Hall of Fame CleanTech 160 employees >75% scientists 20+ nationalities 3

4 1 History of Avantium 17 Years of Innovation Founding Avantium: Spin-off from Royal Dutch Shell JDA s signed with TCCC and Danone Agreement with Mitsui to commercialise FDCA and PEF in Asia Pilot plant consortium for bio-refinery JV of Avantium and BASF established: Synvina Strategic Partners JDA signed with ALPLA 2000 Strategic partners: Financial partners: Innovative focus on chemicals st gen. Nanoflow 16 parallel reactors gas phase 3rd gen. Nanoflow 64 parallel reactors trickle flow Started with Proprietary R&D Start offering of R&D systems to customers 1st Flowrence installed at customer Proof-of-principle YXY achieved Introduction of Microfluidic chips YXY technology pilot plant 1 st PEF bottle made using YXY technology Market launch Flowrence XD Liquid Light assets Acquisition 60+ patent families filed 2003: Divestment of software platform for laboratory automation 2011: Divestment of pharma-services 2014: Divestment crystallisation systems BU University partners: Solid financial backing Funding round 2006: Funding round 2011: Strategic shareholders joining in 2014: Funding round 2016: 2017: Initial Public Offering

5 1 Why Renewable Chemistries Global Trends Drive Transition Towards a Bio-Based Economy Demographic Change Climate Change Shift in Consumer Preferences A growing Reduce dependency population, An emerging leads to industry a driven on by fossils global trends growing demand for materials and resource stress and CO 2 production: Shift to sustainable resources Consumers shift to sustainable products; Brands want to become sustainability champions Avantium: Pioneering Renewable Chemistries 5

6 1 Brand-owners realize a system wide approach is required to solve today s toughest sustainability challenges Plant PET Technology Collaborative (PTC) PEFerence... to build a standardized supply chain measurement tool for all industry participants to understand the environmental, social and labor impacts of making and selling their products and services. Encouraging the development of plant-based plastics Strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products Replace a significant share of fossil-based polyesters, such as PET and packaging materials like glass and metal with 100% bio-based furanics polyesters (such as PEF) 6

7 1 Creating a bio-based economy From renewable feedstock to biopolymers in a growing market Biomass as renewable feedstock Production of bio-based materials by polymerization of monomers A... in a growing bio-based materials market Second generation (2G) biomass Wood Corn stover Waste paper First generation (1G) biomass Corn Sugar cane Sugar beet Glucose (building block for many biomonomers) Glucaric Acid Adipic Acid HMDA 1,3 Propanediol Sorbitol Isorbide 1,4 Butanediol Succinate Teraphtalic acid MEG HMF FDCA MMF Ethanol Methyl Metacrylate Ethylene Vinyl Chloride Propylene Isobutanol Acrylic Acid Lactic acid A = Nova Institute (2012); B = 2016 applications of bioplastics, (2016) PHA PA PU PC PET-like PTT PBS PBT PET PEF Furanbased Pol. PMMA PE PVC PP SBR Superabsorbent Pol. PLA 4.2 Mil tonnes Bioplastics market B 8% Expected CAGR % packaging 6.1 Mil tonnes Most important applications of bioplastics 2 22% consumer goods 14% transport 13% building and and automotive construction 7

8 1 Avantium Renewable Chemistries Leadership in Innovative Renewable Technology Several Early Stage Projects VOLTA Electrocatalysis MEKONG Bio-based Ethylene Glycol (MEG) ZAMBEZI 2nd Generation Sugars YXY Bio-Based Plastic - PEF New products, processes & technologies CO2 capture Platform technology Novel conversions 1 step process 100% bio-based bottle In pilot plant phase High purity glucose and mixed sugar output In pilot plant phase 1st commercial plant planned in Antwerp 8

9 2 Plastics Growth driven by Demographics Population Growth Booming Middle Class +2.2b people between now & China and India continued growth. Increased life expectancy across the globe. 3.2b people in the middle class by end of m-170m are joining the middle class annually Overwhelming majority of new entrants live in Asia Global middle class spending was $35tr (2015 PPP terms) Global middle class is growing at 4% per year in real terms (outpaces global GDP) Sources: United Nations, Department of Economic and Social Affairs, Population Division (2017); World Population Prospects: The 2017 Revision ; Brookings Institute; Global Economy and Development report (2017) 9

10 2 Plastics Growth driven by Demographics Consumer Packaged Goods growth and correlation with PET demand Global CPG sector will nearly double to $14tr in 2025 from $8tr in Growing 4.4% CAGR CPG growth strongly correlated with increase in plastics demand, and PET in particular: Plastics market: rapid growth PET demand: correlated Mtonne 140 Global PET demand Sources: PlasticsEurope / Consultic; Nexant (2014) 10

11 2 Monoethylene Glycol is a key component of PET MEG demand driven by PET growth PTA/DMT PET 2017 CAGR = 3% 2035 MEG Industrial & Antifreeze MEG market growing from ~30mta now to ~50mta in 2035 FDCA PEF Most of market requires PET-grade MEG MEG is roughly 30% of PET and PEF composition Majority of MEG is used in PET/PEF Antifreeze & industrial applications are additional outlets Sources: Nexant (2016); Tecnon OrbiChem (2017); ICIS Chemicals Outlook (2016) PET grade Industrial Anti-freeze 11

12 2 MEG is globally traded; Naphtha-based is driving price. MEG trade-flow, 2020 forecast (2016 data) To China To U.S. Sources: IHS (2015), Nexant (2016) Green: production exceeds demand Red: demand exceeds production 12

13 3 Production Routes for MEG Cost-competitive bio-meg is significant opportunity in fragmented market 99% of existing MEG produced via petrochemical route. Only commercial bio-meg facility uses multi-step process (low atom efficiency) Avantium s Mekong process is efficient & competitive direct hydrogenolysis: 1-step process. Avantium s bio-meg is MEG from renewable source that can compete with existing petrochemical product on both cost and quality. 13

14 3 Mekong: Superior Carbon Efficiency Efficient conversion leads to cost-competitive bio-based product Fermentation OH OH OH Glucose: OH Incumbent Commercial Production of Bio-Based MEG OH O Fermentation, dehydration, oxidation, hydration 4 steps Max theoretical yield = 67% OH EG OH OH EG OH + 2CO 2 Avantium MEKONG Process Hydrogenolysis OH OH OH Glucose: OH OH O Catalysis 1 step Max theoretical yield = 100% OH OH OH OH EG EG OH EG OH 14

15 4 Mekong Timeline H Pilot scale trials Demonstration plant design Demonstration plant construction Basic engineering Mekong Investment decision Demo Plant: Q1 Start construction demo plant Start up demo plant Site selection Construction Flagship plant 15

16 4 Mekong Destination Transform the plastics industry with the introduction of a bio-meg product which is able to compete with the quality and economics of existing fossil-based offering. Lab scale Demonstration plant Flagship plant Commercial scale Joint Development Partnership and/or Licensing 16

17 Thank You! Questions? Avantium Eelco Blum VP, Business Development Renewable Chemistries Cell: eelco.blum@avantium.com twitter.com/avantium 17