Why Do We Do What We Do?

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1 Why Do We Do What We Do? Sergey A. Selifonov Minnesota Green Chemistry Conference 2012: Strategies for Growth January 26, 2012

2 The Status Quo Is No Longer Acceptable 2

3 Planet : People : Profit NASA 3

4 Following Clues from Nature What do you see? 4

5 ur Green Chemistry Startups in Minnesota XLTerra

6 XLTerra PXLK Bioplastic Based on C5 Carbohydrates from Cellulosic Biomass PXLK 6

7 XLTerra Bioplastic Enables High Value Use for Hemicelluloses Representative Plant Biomass Components C6 C5, C6 Hemicellulose 20-35% XLTerra Bioplastic: An utstanding Value Proposition for the Utilization of C5 Carbohydrates from Hemicellulose of Biomass Hardwood Corn Cobs Wheat Straw Bagasse ther *** C5 sugars are poorly suitable for fermentation to biofuels or biochemicals XLTerra 7

8 Renewable Bioplastics at a Glance PXLK PLA PHB(A) n n n ~ 2009 ~ 1932 ~ 1926 The chemical structure defines properties... XLTerra 8

9 Exceptional PXLK Properties PXLK PLA PHB(A) Process Thermochemical Monomer by fermentation Fermentation Structure Amorphous Semi-crystalline Semi-crystalline ptical Transparent paque /Transparent Tensile (yield) strength (MPa) paque /Transparent Ductility (TE, %) Ductile (>30) Brittle (2.5) Brittle (4) Heat Deflection > 100 C C <80 C Thermostability >240 C <230 C (w/additives) <190 C Feedstock (primary) Non-food C5 Dextrose/starch Dextrose/starch Co-Monomers Many Limited Limited XLTerra 9

10 Biomass-Integrated C5 Approach to PXLK Process Xylitol (industrial grade) Anhydro Xylitol XLTerra Patent pending W 2010/ A1 Xylose molasses XLK monomer PXLK BioPlastic Corn Cobs Wheat Straw Bagasse Hardwood ther Furfural to FA* LAE** * FA Furfuryl Alcohol ** LAE Levulinic Acid Ester XLTerra 10

11 PXLK Plastic: Truly MN Born First bioplastic with exceptional properties that can play in the premium league of fossil carbon plastic markets U.S. Corn Belt cob harvest potential is a great foundation for creating major industry of new high performance plastics from non-food biomass Upstream and downstream integration presents options for economically fair value chain XLTerra 11

12 another major challenge

13 Beyond Acrylics: Alternative Diaper-Grade Superabsorbent Polymers (SAP)

14 Superabsorbents (SAP) pportunity Incumbent Industry Acrylic SAP Non-degradable Non-renewable Reluceo Alternative Non-Acrylic SAP Degradable Clear renewable path tens of millions of tons of swollen diapers 14

15 Reluceo Alternative SAP Approach Degradable SAP via reversible fusion of degradable polymer & natural organic acid poly(vinyl alcohol) H H H + H C 2 H glyoxylate -H 2 Na PVGA* H C 2 Na *representative repeat unit n Choice of SAP chemistry and process enables a combination of all key properties needed for diaper applications Scanning Electron Microscopy 100x 15

16 Reluceo SAP: Reasons for Winning Superb absorption speed for diaper applications is enabled by the nanoscale surface morphology Reluceo SAP Particles - Scanning Electron Microscopy Magnification 75,000x Renewable supply chain path is straightforward from bioethanol 500 nm An Elegant Industrial Solution Where Many Have Given Up. 16

17 To plant a garden is to believe in the future. Garden of technologies... Aim high Target socially and environmentally unacceptable status quo Laws of Nature trump all other laws and rules Technologies define the path and set the rules for subsequent success of commercialization Path to global adoption is seen through local success 17

18 Everything we do, we challenge the status quo. If you share our values, join us in our journey.

19 Thank You