versalis renewable footprint Ecomondo, Rimini - November 7, 2013

Transcription

1 versalis renewable footprint Ecomondo, Rimini - November 7,

2 versalis in numbers 5,700 employees 14 across Europe plants 335 patents 300 researchers 6.4 /bln turnover 6.1 m/ton production to sales 2.0 /bln investments 2

3 versalis industrial profile versalis industrial footprint has weak and strong areas Weak areas under transformation, retrofitting or reconversion: Old plants, small capacity, producing commodities with technologies common art or easily accessible in the license market. Strong areas where are planned relevant investments already defined in the business plan: Plants with adeguate capacity, producing specialties, with proprietary technologies not available in the licensing market, with leading technology for production costs and product quality / performances, where R&D is progressing with continuous development. New renewable chemistry development area 3

4 versalis chemistry from renewable business area versalis recently is entered in the renewable chemistry business because: Is based on innovative technologies producing performance products; Competition shall be based on know how and development capacities; Are not needed giant plants of million tons or key high competitive cost scenarios like Middle East or Far East, to manage the agro footprint; Products demand is growing in mature countries like Europe, where regulation environment is sensitive, where we have deep knowledge of the market; 4

5 versalis chemistry from renewable business area versalis recently is entered in the renewable chemistry business because: Raw materials are less sensitive to price volatility and even less if can be implemented an upstream integration (sugars of II gen, vegetable oils, etc.); We envisage technological, market and products sinergies between fossil and renewable chemistry; We have in house all key capabilities to play the game such as strong R&D, technology, engineering, investment managment, relevant industrial experience. Targeting a fast track growth we leverage on alliances from one side and internal growth of KH from the other side 5

6 Petrochemistry and Renewable Chemistry: leveraging on molecular complexity of the renewable feedstocks Methane Ethylene Polyethylene Specialty chemicals Alcohols Acids Sugars GAS OIL Fuel GPL Ethane Propane Naphta Hydrocarbons Propylene C4 Aromatics Polypropylene Cumene & Phenol Butadiene Elastomers Xylenes Fibers Fine chemicals Cosmetic/ detergents Adhesives Paints Solvents Furanics Phenols Aromatics Fatty acids Glycols Lignin Oils BIOMASSES Styrene & PS Others Gums Main raw-materials components: C H Resins Amino compounds Main raw-materials components: C H O The tree of the chemistry from renewable will have to rely on the differences in feedstocks Components of gas/oil raw-materials are molecules mainly composed by C (carbon) e H (Hydrogen) Renewable raw-materials are more complexes molecules, containing C (carbon), H (hydrogen) and O (oxygen) The transformation processes are based on cracking and "reconstruction to get end-products The optimal transformation processes should be based on "rearrangements to obtain end-products, avoiding cracking and "reconstruction", with the benefit of lower energy use and lower capex 6

7 versalis bio-based projects and current (fossil-based) businesses versalis strenghts versalis strategy for its biobased business Alternative plastics&additives Matrìca: a joint project with Novamont Conventional market Natural rubber: a joint project with Yulex Conventional intermediate Biobutadiene: a joint project with Genomatica New bioraw materials High Oleic Oil: a versalis project New bio-products By means of New process & raw material New industrial & agro platform to 7

8 Matrìca project: the drivers for the re-conversion of the old petrochemical site Porto Torres - Challenges Old and inefficient chemical complex (270 kta tonnes ethylene capacity) ~600 employees Average annual loss of 70 mln 800m of cash absorption European bio-plastics market (kton) Access to land for crop cultivation Growing bio-plastics market in Europe 20% CAGR 8

9 Matrìca project: a whole perspective Capex 230 Ml Construction of a biomass power plant Industrial conversion activities Conversion of a traditional chemical site into an innovative green industrial site including the largest bio-refinery in the world Total Exp. 500 Ml Remediation of polluted areas & versalis Investments Porto Torres - EBITDA Overall JV investments: 500m Equity capex > 100M 19/11/13 19/11/13 m Breakeven 7 plants over 3 time phases 350 kta of total bio-based production (monomers, downstream bio-plastics, lubricants, extensor oils, plasticizers) Up and running R&D Centre More than 300 employees Start up first 2 plants Q

10 Matrìca project: bio-lubricants Matrìca bio-based lubricants: APPLICATIONS excellent technical properties, good biodegradability and low toxicity make them suitable in different sectors as environmentally sensitive applications which can also imply a direct contact with the user (metal working) Metalworking Agricolture Eolic Matrica Bio-based lubricants Automotive engine oils, automatic transmission fluid, gearbox fluids, brake fluids, hydraulic fluids Aviation gas turbine engine oils Industrial refrigerator compressor oils, steam and gas turbine oils, air compressor oils Marine Forestry Automotive area: improved fuel economy (reduced fuel consumption); cleaner exhaust emissions; extended drain intervals (reduced maintenance times); longer engine life; improved cold starting. Metalworking fluids: biodegradability; no toxicity; good surface wetting ability (lets esters penetrate between the work tool and work piece). Aviation: reduced volatility; thermal stability. Two-Stroke Engine: improved engine cleanliness; reduced smoke levels; ignition performance; reduced oil emissions; no need for solvents (added to conventional two-stroke engine oil to help miscibility with the fuel). Compressors oils: reduced wear; longer periods between replacements of mechanical parts (piston rings, seals, bearings); minimal buildup of deposits on hot pistons and discharge valves; good miscibility with Hydrofluorocarbon (HFC) refrigerants (unlike mineral oils that are immiscible with HFC). 10

11 Matrìca project: bio-lubricants engine tests Diesel engines Biolube Reference Gasoline engines Biolube Reference 11

12 Matrìca project: drivers for bio-extensor oil in rubber tyre compound European directive 2005/69/EC Restrictions on the marketing and use of certain dangerous substances and preparations (PAHs in extender oils and tyres) Extender Oil Sum of EU-8 PAHs <10ppm and BaP <1 ppm (as per method ISO 21461) Regulation (EC) No 1222/

13 Matrìca project: advantages of tyre compound containing vegetable extensor oil Improved mechanical strength Vegetable oil Conventional oil SBR/Carbon Black Proprietary data 13

14 versalis bio-based projects and current (fossil-based) businesses versalis strenghts versalis strategy for its biobased business Alternative plastics&additives Matrìca: a joint project with Novamont Conventional market Natural rubber: a joint project with Yulex Conventional intermediate Biobutadiene: a joint project with Genomatica New bioraw materials High Oleic Oil: a versalis project New bio-products By means of New process & raw material New industrial & agro platform to 14

15 Guayule project: Natural Rubber (NR) from Hevea Brasiliensis and future alternatives Tropical climate 500 to 3000 kg/ha/y Semi-arid/mediterranean (Spain) 500 to 1000 kg/ha/y (open source data) Temperate/cold (Germany) 150 to 500 kg/ha/y (open source data) Hevea br. Tropical tree: rubber totally imported in EU Agro competition with palm oil plantations driven by biofuels market Threat Microcyclus ulei (SALB) (South America), risk to spread in Asia/Africa Labour intensive, social problems (NGO) rising Latex contains allergenic proteins (induce Type 1 latex allergy ). Guayule and TSK Suitable for European climate No competition with established crops New opportunity for farming Mechanized harvesting Ipo-allergenic latex: not induce Type 1 latex allergy Hevea br. is currently the only commercial source of NR (93% in Asia and rest in Africa) Cost will increase and availability will decrease, due to reduced growth of new plantation and growing NR demand of emerging countries (China, India): 5 M.T.(1990) up to 16 M.T. (2025). 15

16 Guayule project: versalis Guayule demo fields in south Europe Assessment of a customized cultivation protocol: climate condition, geographic location, seeds selection, water needs, etc.. 16

17 Guayule project: versalis technology platform for a Guayule-based bio-refinery Stems GUAYULE whole plant Leaves Water/solvent-based extraction Omogenate Bagasse Wax, essential oils Centrifugation/was hing Solvent extraction Waste liquor LATEX Engineering Phase Ready for industrialization exhausted Bagasse Deconstruction, saccharification Sugars C6, C5 Resin Rubber Pharmaceuticals and fragrances Insecticides, pesticides, etc. Paints, coatings, adhesives, etc. Energy Soil amendant Construction related materials Bio-based Chemicals, (EtOH, BuOH, BDO etc.) biomass intemediates products 17

18 versalis bio-based projects and current (fossil-based) businesses versalis strenghts versalis strategy for its biobased business Alternative plastics&additives Matrìca: a joint project with Novamont Conventional market Natural rubber: a joint project with Yulex Conventional intermediate Biobutadiene: a joint project with Genomatica New bioraw materials High Oleic Oil: a versalis project New bio-products By means of New process & raw material New industrial & agro platform to 18

19 Biobutadiene project, the rational: availability of C4 feedstock in the future Ethane vs. Naptha Spread Continues to Widen Shift from Naptha to NGLs ($ / lb) (mm tons of ethylene production) Shift to C2 Results in Supply- Constraint for C3, C4 Favorable Pricing Dynamics for Butadiene and Propylene (Indexed Production Capacity) 10,6 8,6 6,6 4,6 2,6 0,6 ($ / lb) , , , , , ,

20 Biobutadiene project: versalis/genomatica tech platform for biobutadiene Fermentation by E. coli CH CH 2 OH 2 OH O H H O H H OH H H OH H OH HO OH H OH H OH C5 and C6 sugars mixture destructuration saccharification biomass Fermentation by Escherichia coli Bio 1,3-butadiene Catalytic Dehydration Purification OH OH 1,3-butanediol 20

21 versalis bio-based projects and current (fossil-based) businesses versalis strenghts versalis strategy for its biobased business Alternative plastics&additives Matrìca: a joint project with Novamont Conventional market Natural rubber: a joint project with Yulex Conventional intermediate Biobutadiene: a joint project with Genomatica New bioraw materials High Oleic Oil: a versalis project New bio-products By means of New process & raw material New industrial & agro platform to 21

22 High Oleic Oil project: oleaginous yeasts Oleaginous yeasts are able to use C5 and C6 sugars obtained by saccharification of lignocellulosic biomasses (2G-Sugars) to produce triglycerides. Selected strains are able to produce predominantly oleic acid esters Oleaginous yeasts can produce lipids up to the 60% of the total cell dry weight synthesize fatty acid triacylglicerols (TAG) similar to vegetable oils are able to grow both on C5 and C6 sugars and on lignocellulosic hydrolisates Lipid droplets Yeast oil can integrate vegetable oil in several green chemistry processes 22

23 High Oleic Oil project: comparison of different sources average % composition (*) palmitic 3,5 stearic 3,5 oleic 83 linoleic 8 average % composition (*) palmitic 11 stearic 4 oleic 25 linoleic 60 High Oleic Sunflower Oil (HOSO) Oil yield 2-3 ton/ha Data from open literatures Cynaria cardunculus Oil yield ton/ha Current status of R&D project with selected oleaginous yeast strains Fermentation substrate (*) Average composition % C6 sugars C5 sugars low value C6 sugars high value C6 sugars mixtures C5/C6 palmitic stearic oleic linoleic Proprietary data Yeast fermentation Oil yield ton/ha assuming biomass yield ton/ha (*) main components 23

24 Conclusions: Chemistry from renewables implies a change in the current business philosophy To be successful and competitive in bio-chemistry we must change the consolidated approach used in traditional chemistry from fossils: NOT product driven BUT feedstock driven Because of: B io m a s s V e g oi ls Solar Steam EL. Power Feedstock availability and complexity Need for massive valorization of selected biomass Need to maximize integration also with utilities Need for reduction of agronomic footprint Chemistry taylored for the selected biomasses LIGNINE Sugars Alchools Acids Intermediates WASTE Energy Bio Plastics Specialties Fibers Solvents Detergents Bio rubbers Photovoltaic Biomass power station Biogas generation 24

25 Conclusions: Chemistry from renewables implies a change in the current business philosophy To be successful and competitive in bio-chemistry we must change the consolidated approach used in traditional chemistry from fossils: focus much more on bio products development Because of: In most of the cases the access to the market will not be achieved simply by replacing the same molecule Performances of the molecule or the blend will be the KEYS Legislation and consumers appreciation are and will be more and more in favor of products from renewable sources, but the final products will still have to meet technological requirements and performances comparable to traditional products This will require a creation of a "chain" to support the R&D, covering both scientific-technological areas and marketing strategies Scientific-technological Marketing strategies Testing Product concept Performance & Quality Control Consumer insight 25

26 Conclusions: Chemistry from renewables implies a change in the current business philosophy To be successful and competitive in bio-chemistry, such a wide an almost still unexplored land, can be considered as growth accelerator the instrument of: Alliances Bioplastics (PA) Bioplastics (PHA) Bioplastics (PA) Bio-chemicals Biolubricants Most JV are between companies with different background in agro, chemical and bio tech; a fast way to merge knowledge 26

27 Thank you 27

28 Back up slides 28

29 European Frame and ground for establishment of a bio-based economy bio-fuels: bio-chemicals: EU legislation imposes a percentage of forced substitution ( targets) EU legislation aims to encourage uses highlighting their more favorable life cycle cost and their benefits for community and environment COM ( ) Europe 2020, a strategy for smart, sustainable and inclusive growth COM ( ) Europe 2020 flagship initiative: Innovation Union COM ( ) 21 - A resource-efficient Europe : Flagship initiative under the Europe 2020 strategy COM ( ) Horizon 2020 The Framework Programme for Research and Innovation COM ( ) 60 - Innovating for sustainable growth: a Bioeconomy for Europe. PPP (Public Private Partnership) BRIDGE - Biobased and Renewable Industries for Development and Growth in Europe The target is not the subsidy, but the certification of the product, to identify biodegradability/compostability (already operational) the amount of renewability of the product (next to be introduced) the renewable energy used in the transformations the low environmental impact of the process And consequently, the Life Cycle Assessment to evaluate all interactions with the environment (already operational) and that will define a 'Identity Card' of the product, that defines the life cycle of the product for application affects the commercial success emphasizing the advantage for the users and the community guides the choices of consumers 29