BioIndustrial Partnership of Minnesota

Transcription

1 BioIndustrial Partnership of Minnesota Northeast Minnesota CERTS Team August 15, 2011

2 Agenda Introductions BioIndustrial Partnership Background Information Roadmap Preview Focused on:»statewide perspective on the opportunity»roles of Eco-Industrial Parks Enriching Minnesota s Future through the Biosciences

3 The BioIndustrial Partnership of Minnesota Independent, industry led project to sustain and grow Minnesota s position as a global leader in the biofuels and biochemicals industry. Expected Outcomes»Education of business and community leaders.»identify assets and market MN to external partners.»policy development. Regulatory issues. Financial assistance. Enriching Minnesota s Future through the Biosciences

4 The BioBusiness Alliance of Minnesota Industry led, non-profit organization Partners with industry, academia and economic development groups to stimulate growth in Minnesota Supports growth in six targeted industries Medical Devices Biologics/Biopharma Animal Health Food Renewable Energy Renewable Materials Enriching Minnesota s Future through the Biosciences

5 BBAM Progress- Assess, Plan, Implement Today STATEWIDE INDUSTRY ASSESSMENT Phase One: Assess Phase Two: Plan Phase Three: Implement Enriching Minnesota s Future through the Biosciences

6 Project Partners Great Plains Institute Non-partisan, nonprofit corporation based in Minneapolis LifeScience Alley Largest state-based trade association focused on serving the life sciences industry. Mission: to accelerate the transition to a sustainable, prosperous, low-carbon economy. Enriching Minnesota s Future through the Biosciences

7 D2025 Recommendations Renewable Materials Support market development efforts for the renewable materials value chain»renewable Materials Summit: Emerging Markets in the Upper Midwest Position Minnesota as a world leader in biorefinery operations Farmers/Foresters Biorefinery Liquid Fuels Markets Chemical Industry- Formulators End Product Manufacturing Enriching Minnesota s Future through the Biosciences Retail, End Uses

8 Renewable Materials Value Chain Overview Farmers/Foresters Chemical Production Formulator/ Refinery End Product Manufacturing Enriching Minnesota s Future through the Biosciences Retail, End Uses

9 BioIndustrial Partnership of MN Overview

10 BioIndustrials Partnership of MN Sponsors Foundational Sponsors ($10,000+) BioIndustrial Leader ($5,000-$9,999) Premier Sponsor: $1,000-$4,999 Supporting Sponsor: $500-$999

11 Existing Biorefineries across Minnesota Strength in forestry and agriculture resources Leveraged to value added opportunities Source:

12 Minnesota Biobased Materials Family Tree BioAmber Est Plymouth Reluceo Est Golden Valley XL Terra Est Golden Valley Draths Est. 2005, 20 emp. Okemos, Michigan Segetis Est. 2006, 30 emp. Golden Valley Pine River Petrochemicals Est. ~2009. Gevo Est. 2009, 50 emp. Luverne, MN and CO Green Harvest Technologies Est. 2007, 1 emp. Bloomington Cargill BioH Est. 2003, 35 emp. Plymouth Natureworks est. 1997, ~100 emp. Minnetonka Elevance Est. 2004, 45 emp. Chicago, IL Cargill Industrial Oils Minnetonka 1980s s Cargill Resins Minnetonka Currently not located in Minnesota

13 Integrated Biorefinery Food/ Feed Forest Products Fuels Chemicals and Plastics

14 Example: C4 Platform (Bio Iso-butanol ) Drop-in Fuels Iso-butanol Jet Fuel Diesel Gasoline Chemicals and Plastics Solvents Butyl Rubber Adhesives Plastics Enriching Minnesota s Future through the Biosciences

15 Project Methodology Q2 2011: Project Definition» Assemble Core Team and develop clear understanding of industry. Status: Done Q3 2011: Community Dialogue» Share global trends and gather information. Status: In Process Q4 2011: Publication» Minnesota Roadmap for BioIndustrial Development: Status: Development started. To be published in Q : Education and Implementation» Act on strategic direction. Status: Commencing in 2012 lasting several years.

16 Core Team- Industry Dominated

17 Outline: Roadmap for BioIndustrial Development Biorefinery Development Trends Opportunities Strategic Direction Biorefinery Downstream Market Development» Chemicals» Fuels Trends Opportunities Strategic Direction Liquid Fuels Markets Chemical Industry- Formulators End Product Manufacturing Retail, End Uses Agricultural-based Supply Chain Partnerships Trends Opportunities Strategic Direction Forest-based Supply Chain Partnerships Trends Opportunities Strategic Direction Farmers/Foresters Farmers/Foresters Biorefinery Biorefinery Policy Analysis and Recommendations

18 Downstream Market Development Farmers/Foresters Biorefinery Liquid Fuels Markets Chemical Industry- Formulators End Product Manufacturing Enriching Minnesota s Future through the Biosciences Retail, End Uses

19 Fuels Market Development Policy Driven- RFS2»Specific attention must be paid for the types of biomass that qualify High performance fuels emerging»jet fuels»hydrocarbon fuels Diesel Fuels Gasoline Military Driving Demand»Several letters of intent to purchase fuel Enriching Minnesota s Future through the Biosciences

20 Downstream Market - Materials AURI study released in August 2011»Details the trends and barriers to economic opportunities with bioplastics. Increasing consumer interest»enhanced Properties: Less toxic products for consumer health and the environment GHG Reduction Biodegradability»Marketing Advantages Green Profile Support for American Made»Risk: GMO and Food v. Fuel Concerns

21 Renewable Materials: Target Markets The Renewable Materials Summit: Emerging Markets for the Upper Midwest. Moorhead, MN. April 27, 2011 Packaging Building Products Health Care Products Consumer Products Automotive Parts Agriculture Foam Products Cleaning Products Enriching Minnesota s Future through the Biosciences

22 Biorefinery Development Fuels End Market Farmers/Foresters Bio-refinery Chemical Industry- Foru End Product Manufacturing Retail, End Uses Enriching Minnesota s Future through the Biosciences

23 New targets for bio-based chemicals Innovation is enabling new commodity chemicals»new to the world chemicals Segetis Javelin Technology Reluceo s XLK Polymer»Improved access and pricing to existing chemicals Succinic Acid Glucaric Acid These products can depend on other innovations in the final products»risk for slower growth»without significant improvement in functionality, they may not have the critical mass to survive

24 Biofuels becoming biochemicals companies. Replace the entire barrel of oil to maximize value Source: Peter Keeling. Center For Biorenewable Chemicals

25 Volatile and increasing fossil fuel prices : Oil alone:»5.5% Sugar alone:»5.3% Combined:»4.6% Source: ICIS;

26 Agriculture Opportunities Farmers/Foresters Biorefinery Liquid Fuels Markets Chemical Industry- Formulators End Product Manufacturing Enriching Minnesota s Future through the Biosciences Retail, End Uses

27 Trends for Agriculture Biorefineries Transition from traditional to next generation fuels/chemicals» De-commoditization and diversification»tight margins because of volatility»cellulosic Feedstock Developments Corn Prices: August 2008-July 2011 Source:

28 Industry Development 101 Leverage local and regional assets. Work from a strategy. Develop specific projects to define a common goal.»this is where Eco-Industrial Parks play a critical role!

29 Next Steps and Deliverables Publication of The Roadmap for BioIndustrial Development by Q Begin implementation plan to be defined in roadmap:»continuing education to influence policy.»channel energy from core team to support specific projects.»market MN assets to external partners. Enriching Minnesota s Future through the Biosciences

30 Ongoing Participation How to participate:»talk to others about the opportunity»lend your expertise to develop the strategy»attend other BioIndustrial Partnership of MN events»stay in touch! Sponsorships are available! Enriching Minnesota s Future through the Biosciences

31 Thank You! Tim Welle

32 Additional Information

33 Drop-in Petrochemical Opportunities The majority of chemical products come from a few platform supercommodities: Methane C1 Ethylene C2 Propylene C3 Butylene C4 Benzene, Toluene, Xylene - BTX Volume too large and margins too low for effective renewable play Best space for renewable play Source: Luca Zullo, VerdeNero Very fragmented, low fungibility and channel difficulties