Ingeo Innovations. Providing Ingenious Solutions through Collaboration

Transcription

1 Ingeo Innovations Providing Ingenious Solutions through Collaboration Brian S. Glasbrenner NatureWorks LLC Sept 18th,

2 Consumers expect retailers and brands to take small steps on their behalf to provide them with more environmentally friendly products. Biopolymers can transform packaging from a functional commodity cost item to a differentiable marketing feature. Truth in Marketing Not Green washing 2

3 PET NA WTI Oil IngeoNGT Polypropylene LDPE PET am PET ssp Polystyrene GPPS Polystyrene HIPS Polycarbonate Nylon 6 Nylon 6, Why Bioplastics? Environment Economics Net GHG emissions (CO2 equivalents / kg polymer) $1.00 $150 $0.90 $130 $0.80 $110 USD/Lb $0.70 $0.60 $90 $70 $50 USD/Barrel $0.50 $0.40 Economics of: Oil- vs. Plants feedstock Waste Management Global Warming $30 $10 3

4 Need for innovation? Approximately 2.5 billion barrels of oil are used for plastics. "It is estimated that 4% of the world's annual oil production is used as a feedstock for plastics production and an additional 3-4% consumed during manufacture." * According to the EIA (Energy Information Administration) in 2008 the world produced 31.2 billion barrels of oil. ** * ** 4

5 $1.00 Why bioplastics? ECONOMICS $150 $0.90 $130 $0.80 $110 USD/Lb $0.70 $0.60 PET NA $90 $70 $50 USD/Barrel $0.50 $30 WTI Oil $ $10 Economics of: Oil- vs. Plants feedstock Waste Management Global Warming 5

6 The Future? $4 per Gallon Gas Prices Affecting Entire Nation U.S. News and World Report June

7 Who We Are... Established in 1997 with JV between Cargill & Dow Chemical Company 100% owned by Cargill Inc.Strong Technology Position (global IP portfolio) World s first and largest bio-plastics manufacturing facility 140,000 metric ton name plate capacity 2nd production line operational by 1Q-2009 Technology can be found today for more then 20 applications, in more then 70,000 store shelves around the globe under the Ingeo brand name 7

8 8 Converter Partners Carbon dioxide and water Plants sugar (dextrose) 8 manufacturing

9 plants 100% annually renewable resources We believe in the 4R s -Renew -Reduce -Reuse -Recover (multiple options) recovery industrial composting chemical recycling science plant sugars transformed into Ingeo production Ingeo fibers and natural plastics are created environment less fossil fuel use climate less greenhouse gas emissions 9

10 Cheese & Yogurt Meat Eggs & Dairy Bakery Produce Dry Grocery Dry Grocery Frozen Dry Grocery Dry Grocery Deli Floral and Gifts Checkout 10 10

11 Cheese & Yogurt Meat Eggs & Dairy Bakery Produce Dry Grocery Dry Grocery Frozen Dry Grocery Dry Grocery Deli Floral and Gifts Checkout 11 11

12 Performance Environmental Benefits Marketing Advantage 12

13 Evolving the Ingeo TM eco-profile Further future improvements associated with: Production using cellulosic based feedstock Further process optimization On site renewable energy (e.g. wind, biomass) Plant II (Not covered in this slide deck) Implementing Now Ingeo 2009 FUTURE Long term Ingeo 2009 represents the Next Generation, cradle-to-pellet Ingeo production system: Based on a package of technology improvements, e.g. new lactic acid technology. Implementation started in PAST Ingeo in 2005 We created an entirely new production system for polymers based on renewable resources. Ingeo 2005 represents the 2005 cradle-to-pellet Ingeo production system (= the benchmark). 13

14 A broader comparison Comparing environmental footprint: Greenhouse Gas Emissions PlasticsEurope ACC data Ingeo in 2009 Ingeo current technology Ingeo in 2005 PVC (suspension) Polypropylene LD Polyethylene PET (amorphous) % Reduction from % Improvement over PET PET (SSP) Polystyrene (HIPS/GPPS Avg) Polycarbonate 7.6 Nylon Nylon from cradle to polymer factory gate in kg CO2 eq. / kg polymer Ingeo: Vink E.T.H. et all. The eco-profiles for current and near-future NatureWorks polylactide (PLA) production. Industrial Biotechnology, Volume 3, Number 1, 2007, Page (GWP 100 factors according to IPCC (CO 2 =1, CH 4 =23 N 2 O=296) PlasticsEurope; ACC: Franklin Associates, revised final report, December 2007, Cradle to gate life cycle inventory data of nine plastic resins, prepared for the Plastics Division of the American Chemistry Council. 14

15 A broader comparison Comparing environmental footprint: Non-renewable Energy Requirements PlasticsEurope ACC Ingeo in 2009 Ingeo current technology Ingeo in % Reduction from PVC (suspension) Polypropylene LD Polyethylene PET (amorphous) PET (SSP) Polystyrene (HIPS/GPPS Avg) % Improvement over PET Polycarbonate 113 Nylon Nylon from cradle to polymer factory gate in MJ / kg polymer Ingeo: Vink E.T.H. et all. The eco-profiles for current and near-future NatureWorks polylactide (PLA) production. Industrial Biotechnology, Volume 3, Number 1, 2007, Page PlasticsEurope; ACC: Franklin Associates, revised final report, December 2007, Cradle to gate life cycle inventory data of nine plastic resins, prepared for the Plastics Division of the American Chemistry Council. 15

16 A broader comparison Comparing Environmental Footprints: Total Water Use Ingeo target Ingeo current technology Ingeo in 2005 PVC (suspension) Polypropylene LD polyethylene Process water Cooling water Ingeo: Vink E.T.H. et all. The ecoprofiles for current and nearfuture NatureWorks polylactide (PLA) production. Industrial Biotechnology, Volume 3, Number 1, 2007, Page PET (amorphous) PET (SSP) Irrigation water Fossil based polymers: PlasticsEurope; PS (HIPS/GPPS average) Polycarbonate Nylon Nylon Water use [kg / kg polymer ] 16

17 Our Journey With End of Life Primo Expanded Demonstration EU Based Lactic Acid Test FCR first results Dirty Bale Test NRC Update Primo Demonstration Education Model Vision statement NRC Meeting Denver PETCore Tech Comm. NGO Meeting in Blair Bale Spec announced APR Meeting Sortation test w/titech NGO Meeting in SFO APR Meeting RONZ PSO/Good Water Telluride Composting certification SEED Development Ca DOC Grant for Sortation Webinar on LCA NRC Meeting Atlanta NRC Meeting Minneapolis BIOTA Launch Oakland Coliseum EU NGO Meeting Industrial Recycling in Blair SPC Formation Meetings 17

18 NatureWorks LLC Efforts within SPC Sustainable Packaging Coalition - NatureWorks LLC is one of six founding members of the SPC Active member in general membership Active member in the labeling subcommittee SPC s Labeling Project will consist of two phases, the first of which is covered in this Brief: Creation of visual communication concepts for a Label with the intent of conveying to consumers what they should and should not do with packaging after its use. Eventual adoption with the hope that this information will shape consumer disposal & purchase habits and result in increased recovery of packaging materials. The SPC Labeling Project seeks to work with and receive feedback from retailers, industry, manufacturers, government, and waste/recyclables managers to eventually adopt the visual communication system that will be developed through the project. 18

19 NatureWorks LLC Efforts in Recycling Various group membership. Association of Postconsumer Plastic Recyclers (APR) National Recycling Coalition (NRC) Sustainable Packaging Coalition (SPC) Bioplastics Recycling Consortium member Biodegradable Products Institute (BPI) European Bioplastics Association EuPA) NIR sorting at plant scale PET stream purity PLA stream isolation Manual sorting technology development Website materials End of Life vision Education for end of life ASTM member and participation Unique material code for PLA ASTM D20, D20.95, D End market development Polymer grade lactic acid Other applications 19

20 NatureWorks Efforts in Composting Standard guidelines for composting revolve around four basic criteria: Biodegradation Material characteristics Disintegration Ecotoxicity Ingeo has been certified by BPI as compostable under the ASTM D standard Japan: Ingeo has received certification under ISO through the Biodegradable Plastics Society of Japan Europe Ingeo has received DIN CERTO EN certification in Europe 20

21 The D Task Group... The ASTM Organization ASTM ASTM has ~ 130 committees... D-20 Plastics... D-20 Plastics, has ~23 Subcommittees... D Recycled Plastics... D has established 3 task groups D SPI Resin Code Transfer D SPI # 7 (Sawyer) D SPI # 1 (Pecorini) 21

22 Does recycling immediately mean it is better? Post Consumer Recycled PET Virgin Ingeo Biopolymer 22

23 Results for climate change Ingeo >35% Reduction 19.9 g Ingeo Clamshell 100% rpet % rpet g PET Clamshell 0% rpet CO2 equivalents / 1000 clamshells US EOL: clamshell land filled after use Conclusions: Even with a equivalent weight Ingeo clamshell, today s virgin Ingeo is still 23 better than 100% rpet Difference increases significantly if rpet content is less than 100%.

24 Results for non renewable primary energy Ingeo % rpet g Ingeo Clam shell 50% rpet g PET Clam shell 0% rpet US EOL: clamshell land filled after use 24 GJ / 1000 Clam shells

25 Our Plan is to use Ingeo film in our SunChips bag as our Launch Platform 1/3 2/3 3/3 Printed Ingeo Degradable Adhesive Barrier Ingeo Compostable Renewable 2011 Renewable, Degradable Reduced GHG XXL SunChips Nat l Target P2, 2009 Targeting H2, 2009 Targeting 2010

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27 Quaker Oats Introduces Ingeo Tamper Band for Its Iconic Rolled Oats Hot Cereal New Bio-Based Tamper Band is First in the Cereal Category Quaker Oats Company, a division of PepsiCo, the leader in the natural hot cereal category is leading the way to be more green by changing its plastic tamper band to Ingeo film. By doing so, they are reducing the amount of greenhouse gases produced by over 468,758 pounds of CO2 or the equivalency of the emissions from a car driven 584,000 miles. Quaker is working to do its part in improving the environmental footprint of the PepsiCo family of products not only by reducing packaging but also by switching to more environmentally responsible materials like Ingeo.

28 ConAgra is first to use recycled Ingeo (PLA) shrink film Tamper-evident seals on Fleischmann s, Blue Bonnet, and Parkay tubs Printed shrink labels for multipacks of Reddi-Wip and PAM cooking spray. Sustainable benefits Made from a renewable resource. Not petroleum-based. Contains more than 50% post industrial content Requires approx. 20% less energy to shrink the material. Improved shrink performance - providing a higher-quality finished product Produces less GHGs than traditional shrink films Reducing GHG production by approximately 592,000 lb of carbon dioxide equivalents, the same as taking about 48 cars off the road per year.

29 National Brands using Ingeo biopolymer as all or part of their packaging/product innovation. These brands can be found at almost all food retailers across North America: Frito-Lay - Sun Chip XL Bags Con Agra - tamper bands on Parkay, Fleishman s and Blue Bonnet margarines and shrink sleeves for multi pack Reddi Whip and Pam Spray oil PepsiCo - Quaker Oats rolled oats hot cereals and Corn Meal Bumble Bee Tuna - shrink sleeve for multi-pack Gillette - shrink sleeve on combination packs (razor and blades) Garnier - shrink sleeve on multi-packs of shampoo products Proctor and Gamble - folded carton for Olay Definity product line and shrink sleeve for multipack stick deodorants McCormick & Co. - shrink sleeve and tamper bands on cocktail sauce and other dips. Microsoft - overwrap on xbox video game Method - non-woven floor wipes Sony - shrink sleeve for multi-pack discs Green Mountain and Newman s Own Organics - whole bean coffee bags Sniffers - "Shake-Ins" - shrink sleeve on pet snack bottle Tropiclean - shrink sleeve on pet shampoo bottle Apple - i-tune gift cards 29

30 30 Why Innovate with Ingeo? Ingeo made from plants not oil Demands of growing civilization and competition for limited resources, along with climate change, are driving an unprecedented need for innovation Oil-derived plastics are ubiquitous because of convenience and performance but they tap a non-renewable resource NatureWorks has created an alternative - Ingeo - with specific performance attributes made from an annually renewable resource and provides a significantly better environmental footprint 30