Setting the Industry Standard for Pyrolysed Carbon Black

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1 black becomes green 7 January 2014 Setting the Industry Standard for Pyrolysed Carbon Black

2 BlackBear Carbon offers a breakthrough in the upcycling of waste tires Ø Black Bear Carbon BV o produces green carbon black from waste tyres to be used in new tyres, other rubber products and other market segments o solving an environmental waste disposal problem o providing green energy Ø Fully representative samples have been produced via the BlackBear continuous process and have received remarkably positive assessments from potential buyers in all market segments Ø Black Bear Carbon owns IP on breakthrough technology for this process 2

3 Products Carbon reinforcing filler BBC 500 ~ ASTM N550/N660 Energy pyrolysis gas supply direct condense to oil produce steam and/or electricity Green upsides carbon credits CO 2 certificates

4 Carbon Black Able to fully replace current carbon blacks with attractive technical value propositions: Makes tires and other rubber products tough and durable Serves as a strong pigment in specialty market segments such as paints, inks and plastics 4

5 Total global demand for carbon black: around 12 million tons per year

6 Waste tires cause environmental issues Worldwide, approximately one billion tyres are manufactured each year Nearly an equal amount of tires are removed from vehicles every year as waste (about 13 million tons) In the EU alone some 3,4 million tons of tires become waste each year, mostly incinerated In many parts of the world tires are still being dumped or landfilled 6

7 Feedstock Current ways to dispose of waste tires in EU, mln tons 0,2 3,4 1,8 0,8 0,6 0,7 Currently suppliers have no valuable outlet for waste tires Each current opportunity is less valuable than BlackBear can offer All tires Land fill Incineration Granulate production Increasing value Re-use BlackBear s feedstock to capture 10% carbon black market share Source: European Tire and Rubber Manufacturer s Association, estimates 7

8 Tyre composition 30% carbon black and silica rubber, steel, fabric, other chemicals 70%

9 9 C2C

10 E.O.L. tyres: an excellent raw material waste tyres can be de-constructed into many of their original parts (e.g. steel, fabric, rubber hydrocarbons, carbon black, silica) heat pyrolysis nitrogen approximate yields: Ø Ø 40% carbonaceous char 60% volatiles: o condensable oil (~80%) o non-condensable gas (~20%) 10

11 Example, chemical analysis of one particular feedstock type Chemical Percentage Carbon Black 77.6 Volatiles 1,4 Hydrogen content [0.19] Sulphur 0,89 ZnO / ZnS 4,83 Silica (SiO₂) 13.9 Titanium dioxide (TiO₂) 0,02 Calcium oxide (CaO) 0,62 Aluminium oxide (Al₂O₃) 0,14 Iron oxide (Fe₂O₃) 0,34 Magnesium oxide (MgO) 0,04 Sodium 0,03 Phosphorus 0,04 Bromine 0,004 Chlorine 0,05 Potasssium 0, BlackBear have performed detailed studies using all major feedstock types and have standardized the BBC 500 grade feedstock type according to optimal carbon and silica content. This is kept a trade secret.

12 Fundamental properties Property BBC 500 N660 N550 Dispersion, SBR ASTM D3191, % Average primary particle size, nm Nitrogen surface area (BET), m²/g STSA (statistical thickness) surface area, m²/g Oil Absorption Number (OAN), m³/kg Tensile Strength, SBR ASTM D3191, MPa Pour density, kg/m³ Volatile content, % < PAH content, % below detection limits ~0.07 ~

13 Product characterisation/classification A = BBC 500 theoretical ASTM classification B = BBC 500 adjusted position relative to performance B A The shift is due to: Presence of silica and other elements Different morphology Different surface chemistry 13

14 Illustrative technical positioning of BBC 500 relative to N550 and N660 N550 BBC 500 Durability N660 Performance 14

15 Test recipe: SBR Ingredient PPHR SBR Carbon black 50 Zinc oxide 3 Stearic acid 1 Sulphur-80 1,75 TBBS 1 Total 156,75 SBR 1500 Value Polymerization cold, emulsion ML (1+4) 100⁰C 52 Bound styrene, wt.% 23,5

16 SBR, BBC 500 compared with N550 [using normalised data] 140 Relative Percentage N550 BBC 500 0

17 SBR, BBC 500 compared with N660 [using normalised data] Relative Percentage N660 BBC 500

18 SBR, BBC 500 compared with N660 and N550 [tensile stress/strain curves] BBC 500 N550 N660

19 Lanxess EPDM test formulation Ingredient PHR PHR EPDM Keltan EPDM Keltan 5508-ECO 100 Carbon black N BlackBear BBC Superfine S mineral filler Par.oil Flexon ZnO 5 5 Stearic acid 1 1 PEG (4000) 2 2 CaO CBS TMTD ZDMC ZDBC Sulphur Total An EPDM application recipe representing a typical 70 Shore A automotive solid sealing compound

20 Lanxess EPDM results Property unit N550 BBC 500 Density g/cm³ Mooney viscosity ML(1+4) MU ML dnm MH dnm MH - ML dnm Scorch ts2 min t'c(90) min Tensile Strength MPa Modulus M 100 MPa Modulus M 300 MPa Elongation at break % Hardness ShA MDR 180ºC Blue = N550 Black = BBC 500

21 Tan Delta comparisons in torsion and compression modes at different temperatures in a 55 ShA natural rubber compound Ingredient PHR PHR SMR Carbon black N BlackBear BBC Nytex ZnO 4 4 Stearic acid 2 2 Sunnolite PPD 2 2 TMQ 1 1 Sulphur TBBS PVI Total

22 Tan Delta comparisons in torsion and compression modes at different temperatures in a 55 ShA natural rubber compound Percent MH-ML Tensile strength N660 BBC 500 Elongation Modulus M300 Hardness Tan delta torsion 40 C * Tan delta torsion 60 C * Tan delta torsion 80 C * Tan delta torsion 100 C * * Tan Delta in torsion mode determined on an RPA 2000 using a frequency of 1 Hz and an angle of 2% ** Tan Delta in compression mode determined on a GABO EPLEXOR 500N DMA using a frequency of 10 Hz and a strain of 2% Tan delta compression 40 C ** Tan delta compression 50 C ** At comparable hardness and crosslink density (MH-ML) BBC 500 shows a higher tensile strength combined with lower Tan Delta values This means a more durable compound with lower hysteresis/rolling resistance, which is desirable e.g. in tyres and conveyor belting

23 Feedback from an international rubber compounder

24 Feedback from an international rubber compounder

25 Feedback from an international rubber compounder 60 Shore A EPDM compound where Purex HS45 carbon black (Orion) was replaced 1:1 with BBC 500

26 DisperGrader photos in SBR reference compound, X100 N550 Dispersion 98.9% N660 Dispersion 96.6% BBC 500 Dispersion 97.4% Poor quality product! Dispersion 54.0%

27 BBC 500, Transmission Electron Microscope (TEM) photo, X

28 BBC 500, Transmission Electron Microscope (TEM) photo, X

29 BBC 500, Transmission Electron Microscope (TEM) photo, X

30 X-ray Photoelectron Spectroscopy (XPS): surface composition and chemistry Element detection and classification of binding states of detected elements has been performed (not presented in detail here) Detected elements in decreasing order of concentration: C, O, Si, N, P, Zn, Na C=O and C-OH are present as well as some aliphatic species and oxidized C/O- groups S is present as sulphidic-s, sulfane-s, sulphonate-s and sulphate-s (not available for vulcanization) Zn is present as ZnO and ZnS (so only partly available for cure activation) Nitrogen is present as aminofunctional groups, not as oxidized species For carbon, the aromatic/graphitic binding dominates

31 Effect of silica content, SBR, tensile strength, MPa low silica medium silica high silica N550 N660 The effects of different levels of silica in the product have been studied in detail. This slide only serves to demonstrate our ability to produce a reinforcing filler with varying levels of silica. The actual amount of silica in BBC 500 will be carefully controlled to avoid variations in product quality.

32 Trelleborg Wheel Systems (Rome): Joint EU Eco-Innovation Project/Subsidy European Commission Grant Agreement Carbon Black Green Tyre Closing the carbon black cycle by recovering carbon black from end-of-life tyres and reusing it in new tyres and technical rubber goods Goal: to demonstrate technical capability to fully replace a grade of furnace black with BBC 500

33 Re-using waste tires provides tremendous positive environmental impact save to liters of crude oil per ton carbon black save 7 8 tons CO₂ per ton carbon black reduce air pollution by around 80% (e.g. dust, CO, SO₂, NO₂, VOCs) produce green energy 33

34 BlackBear produces net energy and strongly reduces CO 2 emissions o The main environmental impact in a carbon black production process is related to energy consumption o In the BBC process more energy is produced than is consumed o The impact of the avoided processes are subtracted from the impact of the total process and since energy use dominates the environmental impact, the total impact becomes negative 34

35 BlackBear produces net energy and strongly reduces CO 2 emissions CO2 emission (per ton carbon black) 10 5 CO 2 ton 6,2 5,2 Reduction 7 8 ton 0-5 furnace black BAT furnace black BBC -1,7 Sale of CO 2 credits Sale of green energy; steam, gas or electricity * BAT = Best Available Technology, according to IPPC-BREF 35

36 BlackBear s carbon black has positive environmental impact Comparison of Environmental Impact Index* Competing Furnace Carbon Black 100 BBC: Total Impact -36 BBC: Climate Change (CO₂) -44 BBC process produces energy providing a positive life cycle impact on environment BBC: Human Toxicity 17 BBC: Particulate Matter 4 *Source: Life Cycle Assessment by Partners for Innovation, October

37 Furthermore BlackBear reduces air pollution significantly % less air pollution compared to furnace black Air pollution (per ton carbon black) Air pollution (per ton carbon black) 8 ton 250 ton 7 ton 6 ton 5 ton 4 ton 3 ton 2 ton 1 ton 0 ton particulate matter volatile organic compounds furnace black BAT furnace black BBC 200 ton 150 ton 100 ton 50 ton 0 ton sulfur dioxide nitrogen oxides carbon monoxide furnace black BAT furnace black BBC 37

38 Setting the Standard Property Unit Proposal Test Method Reasoning Analytical properties Specific Gravity g/cm³ allow > 1.8 due to silica and zinc Volatile content % < 2 ASTM D-1620 no smell, consistent surface chemistry, very low/zero PAH content at thislevel Moisture content % < 1 ASTM D-1509 as per furnace black specification Binder content % < 1 as per furnace black specification Sieve residue % < 0,1 ASTM D-1514 as per furnace black specification Silica (SiO₂) content % 2-25 ASTM D-1506 influence on crosslink density Ash content excludingsilica % < 8 ASTM D-1506 ensure only tires are used for feedstock Pour density kg/m³ 360 +/- 35 ASTM D-1513 as per furnace black specification Pellet hardness g, ave. < 55 ASTM D-5230 as per furnace black specification Pellet hardness g, ind. < 85 ASTM D-5230 as per furnace black specification PAH content mg/kg < 2 ASTM WK29806 can be automatic disqualifier Performance properties in ASTM D3191 test recipe Rheometry, Delta S (MH-ML) Δ N660, % 90 ISO 6502 indicator for crosslink density (key!) Tensile strength, MPa Δ N660, % 100 ISO 37 key reinforcementindicator Elongation at break, % Δ N660, % 90 ISO 37 key reinforcementindicator M300, MPa Δ N660, % 90 ISO 37 key reinforcementindicator M300 / M100 Δ N660, % 108 ISO 37 key reinforcementindicator Hardness, Shore A Δ N660, % DIN key reinforcementindicator Dispersion (dispergrador) % 95 - can be automatic disqualifier 38

39 BlackBear s roll out will serve Europe with own facilities and license to USA and rest of the world BlackBear aims to provide a substantial proportion (±10%) of total European demand for carbon black of 2,3 mln tons with BBC 500 within a decade, requiring 26 production lines That way BlackBear would consume around 20% of EU waste tires BlackBear would generate approximately 230 ktons of green carbon black, saving 1,7 mln tons of CO₂ and net producing 390 mln cubic meters of natural gas equivalent energy Outside Europe BlackBear will license to partners especially in North America and South East Asia generating upfront fees and recurrent revenues from IP licensing and technology & operational know-how transfer 39

40 Summary our philosophy: excellent quality + price competitive + green label = success key benefits ü technically defined and consistent quality ü BBC 500 can fully replace N660 and N550 in almost all applications ü comparable or better mechanical performance than N550 ü comparable or better dynamic performance than N660 ü PAH levels below detectable limits ü dispersion levels comparable to N550 and N660 40

41 Hope we did not tire you! We would be pleased to answer any questions

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