100% Biobased PET: A Sustainable Approach to Fiber, Film, and Bottles.

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1 100% Biobased PET: A Sustainable Approach to Fiber, Film, and Bottles. Greg Keenan, Virent Inc. - Vice President Business Development & Engineering 5th Annual Renewable Energy and Advanced Biofuels Summit Virent 2012

2 Virent at a Glance The global leader in catalytic biorefinery research, development, and commercialization Employees Partners & Investors 117 Employees Financial Infrastructure > $77 MM in Equity Funding > $75 MM in Gov & Industry 25x Development Pilot Plants 1x 10,000 gal/yr Demo Plant Virent

3 Virent s BioForming Technology Leading catalytic route to renewable hydrocarbon fuels and chemicals. 30 Issued/Allowed Patents 152 Pending Patent Applications Virent s Eagle Demonstration Plant- Madison, WI Fast and Robust Inorganic Catalysts Moderate Conditions Industry Proven Scalability Energy Efficient Exothermic Low Energy Separation Low Carbon Footprint Premium Drop-in Products Tunable Platform Infrastructure Compatible Fuels and Chemicals Feedstock Flexible Conventional Sugars Non-Food Sugars Virent

4 Fuels and Chemicals from Biomass Syngas Fischer- Tropsch CH 2 Diesel Jet Fuel Gasification Fermentation CH 3 O 0.5 Ethanol CO + H 2 Biomass Pyrolysis Hydrolysis Bio-oils CH 1.4 O 0.6 CH 1.6O 0.4 Virent s BioForming Process Sugars CH 2 O Catalysis Refining Fermentation APR CH 3 O 0.5 CH 2 CH 3 O 0.5 CH 2 CH 2 CH 3 O 0.5 Methanol Ethanol Liquid Fuels Ethanol Butanol Hydrocarbons Gasoline Jet fuel Diesel Chemicals Virent

5 BioForming Concept Process flexibility enables the production of gasoline, aromatic chemicals, jet fuel and diesel from a variety of raw materials. Biomass Cane Modified ZSM-5 Reformate Aromatics Gasoline Biomass Sugar Cane Aqueous Phase Reforming (APR) APR prepares biomass derived feedstocks for optimal conversion into hydrocarbons. Feedstocks to APR include any water soluble carbohydrate. Option for natural gas co-processing can improve yields and economics. Overall process efficiency > 85%. Demonstrated process yields are 85% of theoretical. Corn Condensation + Hydrotreating Distillate Jet Fuel Diesel Virent

6 Commercializing Drop-in Fuels from Biomass Shell Led Validation Activities Demonstrate the Utility and Benefits of Virent s Direct Replacement Hydrocarbon Fuels. Virent s biobased gasoline fuel being used by the Scuderia Ferrari race team. Fuel produced from sugar beets in Virent s demonstration plant in Madison, WI. Fleet trial successfully completed by Shell in the summer of Results demonstrate the biobased gasoline produced by Virent performs as well as conventional fuels derived from petroleum. Virent

7 Jet Fuel Product Validation Wright Patterson Air Force Lab confirms Virent s jet meets or exceeds petroleum derived fuel standards. Testing validates potential for 100% replacement. Initiated ASTM certification process. Awarded FAA contract to support certification. Virent

8 Making 100% Plant Based PET Possible Virent and The Coca-Cola Company Sign Agreements to Develop and Supply PX for 100% Renewable, Recyclable PlantBottle Packaging Virent s Plant Based Paraxylene Paves the Way for a 100% Bio-PET Bottle Virent

9 Current State-of-the-Art PET Petro-based feedstock PX Ethanol Ethylene Petro-based Bio-based feedstock PTA 69% PET Resin Bio- MEG MEG 31% 31% Today, the vast majority of PET is sourced from fossil derived feedstocks. Partially bio-based PET bottles (up to 30%) can be produced from MEG that is derived from ethanol. Blow molding Adapted from Coca-Cola website graphic Virent

10 100% Renewable, Recyclable PET Petro-based Bio-based feedstock BioForm PX PX Ethanol Ethylene Petro-based Bio-based feedstock Bio- MEG MEG 31% 31% Bio- PTA PTA 69% 69% Bio-PET PET Resin Resin Virent technology for bio-based PX enables a 100% bio-based PET bottle that is: 100% Recyclable 100% Renewable Blow Blow molding molding Adapted from Coca-Cola website graphic Virent Slide 10

11 PX World Market World consumption (million metric tons) 30Mt 57Mt World market size (2010 USD) $39B $116B Sources: PCI; EIA. Virent

12 BioForming & Aromatics Separation Converting Multiple Feedstocks to High Value Hydrocarbons Biomass Sugar Cane Reactive Intermediates Aromatic-Rich BioFormate BioFormPX & other aromatic chemicals Corn Aqueous Phase Reforming Catalytic Conversion to Hydrocarbons Aromatics Complex BioForming Process Catalytic de-oxygenation of soluble carbohydrates Proprietary novel APR catalyst & Virentmodified acid condensation catalyst Virent has proven technical feasibility of using cellulosic materials as feedstock Aromatics Processing BioFormate can be utilized as a fuel or processed in existing aromatics infrastructure Optimized integration with aromatics isomerization, separation and purification possible Virent

13 PET Supply Chain Integration Crude Oil Reformate Naphtha BTX PX PTA PET resin Preform Bottle PET fiber Textile Clothing Biomass Reformate BTX PX Virent BioFormPX Brand Virent s technology addresses sustainability: supply, economics, & environment Diversify and increase available raw materials with minimal impact to the supply chain. Reduce exposure to crude oil volatility, increase security of supply. Address sustainability requirements of the consumer and regulator. Virent will target 2015 or sooner for the production of BioFormPX Secured Coca-Cola development and supply agreement. Establishing production and supply chain partnerships. Virent

14 Economics Mass Balance/Yield Mass Flows Biomass Paraxylene 0.6t Sugar cane Soluble Carbohydrate 2.6t Virent BioForming BioFormate (Liquid Hydrocarbons) 1t Aromatics Processing Benzene 0.2t BioFuel 0.1t Corn Virent BioForming Maximum Theoretical Conversion Light Ends 0.1t Specific Feedstock Consumption (mass carbohydrate per mass hydrocarbon) Mass yield to liquid hydrocarbon 38% 43% Efficiency (% of theoretical) 88% efficient -- Virent

15 Crude Oil, $/BBL Economics Biomass Breakeven Cash cost breakeven for a Virent BioForming refinery producing aromatics Biomass, $/tonne Notes: *Product Values utilize historic Crude to Product Value Ratios from Mid 2007 to Mid 2010 *Major Utilities Cost Assumptions of $4/mmbtu NG and $0.07/kw-hr *Includes Variable and Fixed costs Virent

16 kg CO2 eqv / kg product Green House Gas (GHG) Emissions Cradle To Grave Analysis for biobased PX 7 GHG emissions > 30% reduction > 35% reduction > 55% reduction Petro PX BioFormPX - US corn BioFormPX - EU sugar beet BioFormPX - BR sugar cane Initial Virent internal GHG estimates conducted for one potential commercial plant configuration GHG emissions calculated based on economic allocation methodology (5 yr. price average) Utilized EcoInvent and GREET data in conjunction with GaBi software for GHG analysis. Does not include any transportation effects post-gate. Virent

17 Virent Produces Aromatics From Cellulosics In June 2011 Virent announced the production of aromatics (Benzene, Toluene, Xylene) from corn stover and pine tree waste. Virent s Success Advanced the Company to Phase II of the US Department of Energy s National Advanced Biofuels Consortium Program. Virent

18 One scenario Para Xylene Consumption ('000 metric tons) 60,000 50,000 40,000 Biobased PX Petro PX 30,000 20,000 10, % of PX biobased by 2020 ~ 30 full-scale BioForming plants. Brand owner sustainability commitments provide near term market pull and support the development of a biobased supply chain. Coca-Cola has made 10 billion PlantBottles since launch in 2009; Odwalla is now is entirely in 100% bio PE bottles; Coca-Cola has stated its aim is to have ALL of its PET packaging based on PlantBottle resin by 2020 Increasing crude and naphtha prices support investment into biobased PX. Virent

19 Environment Scale % of supply or demand Currently in the US, 36% of potential corn starch output is used to make ~10% of the gasoline fuel demand (volumetric basis) 36% 10% 26% The cellulosic column represents the embodied sugars of the cellulose and hemicellulose in the US DoE s estimate of total currently used and potential forest and agriculture biomass available in the US alone in Using 26% of that feedstock would also supply 10% of the US gasoline market. Virent

20 Environment Scale % of supply or demand But only 4.5% of potential US corn starch output is required to make 100% of North American PX consumption 100% 4.5% Virent

21 Environment Scale % of supply or demand Chemicals such as PX are used at a scale that can be realistically supplied by bio-based feedstocks alone 100% 4.5% 3.1% The average year-on-year increase in US corn production (total bushels) over the past 50 years has been 4.8% per year The cellulosic column represents the embodied sugars of the cellulose and hemicellulose in the US DoE s estimate of total currently used and potential forest and agriculture biomass available in the US alone in Virent

22 Commercial Status EPC FEL2 underway Site Selection process underway Expected Q Customers Others in negotiation 1 st BioForming Chemicals Plant 2015 Feedstock In discussions JV & Financing In discussions Virent

23 Summary Leading technology for catalytic conversion of plant matter to direct replacement hydrocarbons, including aromatics. Pursuing opportunities in chemicals as a first plant deployment. PX is the first chemicals target. Signed a development and supply agreement with Coca-Cola. Establishing strategic partnerships to commercialize biobased aromatics production and supply chain. Developing pathways to advance integration with cellulosic feedstocks and lignin to further improve yields and profitability. Virent

24 Thank you. Virent converts plant-based sugars into 100% renewable chemicals and fuels. Our bio-based products are identical to those produced from petroleum direct replacements that utilize today s processing, storage and transportation infrastructure. If you are interested in strategic partnering opportunities please contact: Greg Keenan, VP Business Development greg_keenan@virent.com Virent 2012