Biobased innovations. New biobased materials, products, fuels, bioenergy, etc.

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1 Biobased innovations New biobased materials, products, fuels, bioenergy, etc.

2 MARKUS NORSTRÖM VICE PRESIDENT ENERGY AND BIOBASED ECONOMY RESEARCH INSTITUTES OF SWEDEN Host for this session

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4 MATTIAS BACKMARK HEAD OF BUSINESS DEVELOPMENT PREEM Next step for Preem Vision To lead the transition to a sustainable society Strategic target reaching 3 million cubic meter renewable production by 2030

5 Expansion of HVO production Preem started HVO production in 2010 and produced the first HVO based on Tall Oil Fatty Acid in Preem and SunPine demonstrated a viable value chain from the Forrest to Fuel Preem has since then diversified raw material mix to include more types oils, fats and fatty acids Preem aims to expand HVO production capacity in Gothenburg up to m 3 by 2022.

6 Diversifying technology 1 1. Existing value chain from black liquor to 2 fuel 2. Lignin extraction and valorization 3 3. Forrest and saw mill residue liquefaction and valorization 4 4. Electricity conversion to H 2 and hydrogenation

7 Diverifying products Road fuel LPG Aviation Jet A1 Chemicals & material? Preem is today mostly focused on producing and marketing different types of fuels Today supply renewable gasoline, diesel and LPG Tomorrow we are aiming for Aviation and green molecules to chemicals and materials

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9 CHRISTIAN HULTEBERG CEO SUNCARBON Lignin oil from black liquor

10 ,.. One step closer to a fossile free society Utilizing Sweden's world leading position in sustainable silviculture Utilizing Sweden's top-of-the-line pulp and paper mills Utilizing Swedens environmentally progressive petroleum refiners To increase production of renewable fuels and boost profits along the value chain CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

11 ,.. About the company Utilizing Sweden's world leading position in sustainable silviculture SunCarbon was Utilizing Sweden's top-of-the-line pulp and paper mills founded in 2014 with Utilizing Sweden s environmentally progressive petroleum refiners the mission to bridge To increase production of renewable fuels and boost profits along the the gap between pulp With a vision to utilize forest industry byproducts for the production of value chain & paper mills and producers of traditional renewable fuels and chemicals transportation fuels CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

12 ,.. The technology Lignin is extracted from black liquor by membrane filtration and processed in steps to produce a depolymerized lignin-rich oil with low carbon footprint After additional desalting and purification the lignin oil is ready for transport to a petroleum refinery for processing to biofuels! CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

13 ,.. New value chains & posibilities The SunCarbon initiative is a great example of value creation in the circular economy It increases the demand for forest products It increases the production of pulp in the mill It increases the feedstock-base for renewable fuels CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

14 ,.. Thank you! Christian Hulteberg, CEO CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

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16 ULRIKA ROVA PROFESSOR AT LULEÅ UNIVERSITY OF TECHNOLOGY BIO4ENERGY New value chains for Lignocellulose

17 ,.. Develop sustainable processes for efficient fractionation of lignocellulosic biomass explore the full potential of all fractions for production of new biobased chemicals, energy, materials and products CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

18 ,.. Potential Feedstocks Thermal Pretreatment Spruce Pine Birch Forest residues Cellulose Hemicellulose Lignin Bark Sawdust CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

19 ,.. Value chain for Functional Food Our approach: use a sustainable raw material for the production of prebiotics to be used as health beneficial products both for human consumption and for sustainable aquacultures. CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

20 ,.. Prebiotics A non-digestible food ingredient which has a beneficial effect on the host by selectively stimulating the growth of health promoting gut microflora Combination pro- and prebiotica Targeting ; type 2 diabetes, obesity, allergy, cancer, and autoimmune, brain, & cardiovascular diseases synbiotic; improve bone health, enhanced mineral absorption, weight management, reduce risk of colon cancer &diabetes type 2 CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017

21 ,.. Market Potentials Market Opportunities The market size for human Functional foods for the elderly consumption over $7.5 billion by 2023 Formula-fed for infants Animal feed - over $750 million by 2023 in ingredient sales. Food additives to add functionality to the food products Feed supplement for high value feed in fish/dog/cat but also pigs/poultry CIRCULAR & BIOBASED ECONOMY CONFERENCE PITEÅ SWEDEN 2017