Biotechnology and Renewable Chemicals: The Future is Now

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Jeffrey Owens
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1 Biotechnology and Renewable Chemicals: The Future is Now Pramod Chaudhari Executive Chairman October 12, 2012 Vancouver, Canada

2 Critical Observations Over 98 % of all Compounds in nature are Carbon Based Developments in Organic Chemistry, Catalysis & Chemical Engg has invented newer ways for producing Chemicals Petroleum Refining has enabled various cost competitive routes to produce Bulk & Specialty Chemicals over last 100 yrs Over 70,000 Chemicals are produced each year However, Petroleum Raw material resources are limited Human Needs and Environmental issues are Colliding Planet Earth Challenged by Critical Risks like Climate Change Is it time to look into future and revisit Biobased products? 2

2. Shift from Naptha to Natural Gas - Cheaper C2 Chemicals - Challenge is to run Naptha Crackers Cost effectively for C3/C4 Chemicals 3.

3 Chemicals Industry : Key Challenges 1. Overdependence on Fossil Raw Materials - Feed Stock prices are volatile - Inability to pass price hike to customers - Contracting Margins 2. Shift from Naptha to Natural Gas - Cheaper C2 Chemicals - Challenge is to run Naptha Crackers Cost effectively for C3/C4 Chemicals 3. Upcoming Regulatory Challenges - Improvement of Carbon, Energy & Water Footprint to meet emerging Environmental mandates - RFS 2 mandate (???) 4. Changing Customer Needs - Novel Products - Green Ecofriendly Products - No Green Premium 3

4 Rise of Biobased Economy Non Renewable Renewable Witnessing Shift in Feed stocks from Hydrocarbons to Carbohydrates 4

Carbohydrate Feed Stock Availability 500 400 300 200 100 0 250 200 150 100 50 0 Sugar Cane Corn Wheat Casava 1 MT of Grain can yield 1-2 MT / Acre / Yr BioMass for Biobased Chemicals RUSSIA CANADA

5 Carbohydrate Feed Stock Availability Sugar Cane Corn Wheat Casava 1 MT of Grain can yield 1-2 MT / Acre / Yr BioMass for Biobased Chemicals RUSSIA CANADA EUROPE USA Columbia Peru Brazil Argentina CHINA INDIA SEA PR Volumes in Dry MMT / Anum Carbohydrate Feedstock is Abundant Globally 5

10 5 Illustrative : Not to Scale 20 40 60 80

6 Sugar US c/lb Oil Price Vs Sugar Price Current Oil $ 110/ bbl 25 Current Raw Sugar 25 c/lb Petro Route Cheaper Bio Route Cheaper 20 Approx Sugar Mill Transfer Price 20c/lb Illustrative : Not to Scale Crude Oil US $/ bbl (Brent crude) 6

Renewable Chemicals - Why Now? 1. Rising Prices of Fossil Feedstock 2. Uncertainties of Supply 3. Cleaner Less Expensive Process 4. New Products 5. New Value Chain Players 6.

7 Renewable Chemicals - Why Now? 1. Rising Prices of Fossil Feedstock 2. Uncertainties of Supply 3. Cleaner Less Expensive Process 4. New Products 5. New Value Chain Players 6. Market Pull from FMCG Players 7. Environmental Awareness Crude Oil > 100 US $/bbl Geo Political Unrest 1,3-Propane Diol PLA, PHA, Ketals Commercial Enzyme, Microbes, Process Coke, Pepsi, Toyota, P&G High Effort to Reduce CO2 8. Government Support Country wise Mandates Title Date Confidential Presentation details 7

BioRefining: The Concept Feedstock Processing

Corn, Wheat Sorghum Cassava Cellulosic C5 Sugars

Submerged Enzymatic Downstream Processing Chemical

feed, Multiproduct Smart Biorefineries Fuels EtOH,

Derivative Organic Acids Furanics PG, BDO, PDO,

8 BioRefining: The Concept Feedstock Processing Products Sugar Cane Juice / Syrup Molasses Starch Corn, Wheat Sorghum Cassava Cellulosic C5 Sugars C6 Sugars Oils Veg / Castor Oil Algae Carbohydrates Oils BioChemical Yeast, Bacterial,Fungal Aerobic, Anaerobic Solid State/ Submerged Enzymatic Downstream Processing Chemical Extraction Catalytic Downstream Processing Multi feed, Multiproduct Smart Biorefineries Fuels EtOH, BuOH Drop-In Fuels Next Gen Chemicals Furfural / Derivative Organic Acids Furanics PG, BDO, PDO, MEK, Isoprene Specialty Chem. Oleochemicals Polymers Human Food Animal Feed Power / Steam 8

Bio-Refinery Models Evolution BioFuels & BioChemicals from Starch, Molasses 1 st Gen BioFuels & BioChemicals Large Integrated Plants for Advanced BioFuels & BioChemicals from LC Integrated

9 Bio-Refinery Models Evolution BioFuels & BioChemicals from Starch, Molasses 1 st Gen BioFuels & BioChemicals Large Integrated Plants for Advanced BioFuels & BioChemicals from LC Integrated BioRefining Technologies High Performance Synthetic BioFuels & Functional Chemicals Customized Advanced Biofuels & BioChemicals Molasses, Starch SUGARS Biomass Natural Micro-Organisms GM Micro-Organisms Fermentation Green Chemistry Down Stream (Recovery & Purification) Ethanol & Advanced BioFuels Bulk Chemicals Specialty Chemicals H & W products Power 9

10 Future is Happening Now..! Process Development Process Optimization (Pilot) Scale Up (Demo) Commercial Stage C3 C4 C5 2,3 BDO 3HPA ( Acrylic Acid) 1-4 Butanediol Iso-Butanol Lactic acid 1-3 PDO Succinic acid Isoprene Itaconic Acid (ELA) PolyKetals C6 Caprolactum Adipic Acid Glucaric Acid Isosorbide 10

Bio Refineries Key Considerations Feedstock Price

Titer, Yield, Selectivity, Recovery Capex, Opex

11 Bio Refineries Key Considerations Feedstock Price Volatility Seasonality Availability Process Rate, Titer, Yield, Selectivity, Recovery Capex, Opex Scalability, Complexity, Flexibility Product Performance Price Volatility Oil Price Applications: Drop-In versus Replacement Green Energy, CO2, Land, Water Slide

12 Who will Win.? CATALYSIS Proven for Bulk Chem Lower uncertainties Higher yields Scalable Operations Existing Assets Challenges Novel Catalysts Byproducts formation Minimum Economic Size BIOTECHNOLOGY Higher Specificity Novel Products Lower effluent issues Lower Min Economic Size Challenges Novel Microbes RM & Product Toxicity Scalability Challenges New Investments Integration of Multi Technology Platforms Possible 12

13 13

Regional Story : INDIA Rich Biodiversity US $ 4 Bn Biotech Industry 45,000 different plant

species 30 million micro-organisms 23,000 fungi, 2,500 algae Access to Agricultural

Surplus Biomass (Rice, Wheat Straws,Cotton Stalks, Oilseed residues, Pulse residues,

14 Regional Story : INDIA Rich Biodiversity US $ 4 Bn Biotech Industry 45,000 different plant species 16 different agro climatic zones 10 vegetative zones 426 habitats of specific species 30 million micro-organisms 23,000 fungi, 2,500 algae Access to Agricultural Biomass Approx 125 Mn ha Agricultural Land Pool of Qualified Human resource Mn tpy Surplus Biomass (Rice, Wheat Straws,Cotton Stalks, Oilseed residues, Pulse residues, Sugarcane tops / trash, Pulp/Paper Wood, Forest Wood Large Consumer Markets INDIA Strategic Advantage 14

Hijewadi Biotech Park Chandigad Vadodhara Lucknow National Chemical Laboratory National Center

15 Indian BioTech Clusters Gennova (Emcure) Serum Institute Sci-gen Advinus Tata Chemicals Battelle India Acoris (HIKAL) Venkateshwara Group Praj Industries Ltd. Hijewadi Biotech Park Chandigad Vadodhara Lucknow National Chemical Laboratory National Center for Cell Sciences National Institute of Virology Institute of Bioinformatics and Biotechnology Pune University INDIA Strategic Advantage

Reverse Innovation Shifting Trends in MNC R&D Strategy in India Global Glocal Local Reverse Make Products for Global Developed Markets Innovate at Home Distribute Globally Make

near Local Markets Make products for local market needs Adapt to world wide needs Innovate & Develop near Local Markets Capturing Opportunities in Emerging Markets Need Innovations

16 Reverse Innovation Shifting Trends in MNC R&D Strategy in India Global Glocal Local Reverse Make Products for Global Developed Markets Innovate at Home Distribute Globally Make products for Global Markets, Localize to emerging markets Innovate at home Develop at Emerging Markets Make products for local markets Innovate at Home and Emerging Markets, Develop near Local Markets Make products for local market needs Adapt to world wide needs Innovate & Develop near Local Markets Capturing Opportunities in Emerging Markets Need Innovations Directed to local needs International Collaborations are key to Rapid Commercialization,Globally. Indian Companies are launching Global Strategies based on these innovation. INDIA Strategic Advantage

17 From India For the World

18 Thank you! 18

Avantium Renewable Chemistries Update for IFBC2017. Alan Smith 9-May-2017

Avantium Renewable Chemistries Update for IFBC2017 Alan Smith 9-May-2017 Avantium, a Leading Renewable Chemicals Technology Company From Strong shareholder base with strategic and financial partners to