ENABLING THE BIO-ECONOMY

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Rosamund Craig
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1 ENABLING THE BIO-ECONOMY APPLICATIONS CENTER 15 T W Alexander Drive Durham, NC 27703, USA PROCESS OPERATIONS CENTER 5516 Industrial Park Road Norton, VA 24273, USA BIOTECHNOLOGY CENTER Génavenir 1, 1 rue Pierre Fontaine Evry, France

2 The Current Bio-Economy Disconnect Non-food biomass High sustainability High availability Low revenues Biobased applications Limited sustainability and high price volatility of source material High value 2

Enabling a sustainable bio-economy Non-food biomass C5; C6 sugars & lignin Bio-based chemicals materials animal feed Benefits o Significantly improve the economics of lignocellulosic

3 Enabling a sustainable bio-economy Non-food biomass C5; C6 sugars & lignin Bio-based chemicals materials animal feed Benefits o Significantly improve the economics of lignocellulosic chemicals production, o Significantly reduce the loading and the cost of enzymes o Improve sugar and co products yields o Avoid production inhibitors o Improve overall process economics

Arbiom s Value Proposition Ligno cellulose 1000kg Glucose 430kg Pentose

Bio-ethanol Lactic acid Citric acid $127bn in 2013 1 Xylitol $670m in 2013 2

fermentation-based chemical industry Deloitte 2012 2 Xylitol A Global Market

Overview - Silicon Valley Bank 2012 4 Transparency Market Research 5 High

Emerging applications Advanced fermentation applications Butanol Succinic

4 Arbiom s Value Proposition Ligno cellulose 1000kg Glucose 430kg Pentose 195kg Lignin 250kg Others 125kg $0-$100 $595+ Current applications Bio-ethanol Lactic acid Citric acid $127bn in Xylitol $670m in Energy Phenolic resins Road binders $300m market 4 1 Opportunities for the fermentation-based chemical industry Deloitte Xylitol A Global Market Overview - Report buyer The Advanced Biofuels and Biochemicals Overview - Silicon Valley Bank Transparency Market Research 5 High value opportunities for lignin Frost and Sullivan 2012 Bio-fertilizer 4 Emerging applications Advanced fermentation applications Butanol Succinic acid Butanediene $1,4tn bio-economy market 3 BTX Carbon fibers Activated carbon $130bn addressable market 5

5 Arbiom s Protein Production Ligno cellulose Fractionation + Hydrolysis Lignin burned for energy Cell growth Media C5, C6, phosphates Yeast growth + separation/drying Protein rich (60%) Animal Feed 1000kg 650kg 335kg 5

phosphoric acid Low temperature preserves

of lignocellulosic materials Pretreatment

6 Patented bio-compatible technology Biorefining technology developed by a biotech company Respect of the value of living material: low temperature, phosphoric acid Low temperature preserves all components of the biomass Phosphoric acid lowers enzyme cost and maximize compatibility Compatible with wide array of lignocellulosic materials Pretreatment Enzymes C6 sugars C5 sugars Lignin Lignocellulose Bio-fertilizer 6

7 Technological advantages Severity Lignin output Cellulose output fermentability Residue Corrosion Classic 2 nd Gen High severity >150 C, entails chemical degradation Burned Degraded lignin burned for energy Crystalline Low reactivity, contaminated with inhibitors Low, with inhibitors Contaminated with inhibitors Requires need detoxification due to products/biomass degradation High High temperature and/or strong acid ARBIOM Low severity <70 C, preserves chemical structures Valorized as chemical High value chemical Amorphous High reactivity, no inhibitors High no inhibitors High reactivity, no inhibitors, laced with phosphates Fertilizer Minerals with traces of phosphates Low/none Low temperature, weak acid Feedstock Specific Agnostic Successfully tested on most LC biomass Plant size Large Requires concentrated production of vast amounts of biomass Small to large Can accommodate distributed biomass production through smaller units Hydrolysis time 72h 24h Enzymes requirements High High enzyme OPEX costs Complex cocktail Very low Low enzyme OPEX costs Easier enzyme cocktail optimization 7

8 De-risk Development Arbiom plateform can be used in various process steps for optimal results in conversion of lignocellulosic material to value-added chemicals. It is the first taillored solution designed to improve the performance of strains and to optimize the overall economics of bioprocesses 8

9 Locations USA Applications Center Durham, NC USA Process Operations Center Norton, VA France Bio-Technology Center Evry, France 9

10 Technology Projections, new value creation Feed applications from non-food biomass o Inhibitor less cellulosic sugars with traces of phosphate are a perfect substrate to optimize the growth of non GMO single cell proteins. o High yield, low footprint proteins for animal feed o Perspective for L Lysine and Methionine optimized proteins Consolidated bio-process o Amorphous cellulose is easy to hydrolyze: single organism can combine both hydrolysis and conversion operations o Demonstrated in lab on lactic and succinic acid 10

11 Business Model 1/2 Revenue Model Clients Capital requirements Licensing of technology Sale of licenses Sale of consumables (enzymes) Deployment services Biomass producers (agriculture and forestry) Biomass stakeholders (pulp an paper, energy) Fuels and chemical industry players intending to secure biobased sourcing - (supported by third party) Bio-refineries (co)-operation Sell of bio-based intermediates produced by biorefineries (co) developed and owned by Arbiom Biobased chemicals, fuels and materials applications operators ++ (financing of industrial units) 11

12 Business Model 2/2 250kt Bio-refinery CAPEX $174M OPEX $71M/year Revenues $149M/year License Technology licensing Rev engineering Rev enzymes $11.2M $3.5M $8M/year Arbiom will also engage in structuring projects for 3 rd parties (securing of sites, permitting, applications) that will increase the value of the license Operations Invested capital $70M Debt $104M EBITDA $78M/year NPV $531M IRR 36,4% 12

13 Operations Plan Set up strategic partnerships with suffering biomass stakeholder Construction of 5kt/year integrated plant (showcase, revenue generation and application scale up support) Structure application platform to secure downstream application Design of 40kt/year plant 13

14 2017 Operations Plan Continued operation of 5kt plant for: - commercial demonstration for bio chemical industry - production of high value feed product Design of 40kt plant for production C5 Lignin and high value feed product. First license sale to strategic partner Secure new customers. 14

15 Key element of Arbiom business plan. Arbiom is currently raising funds for expanding Arbiom novel biorefinary proposition and expand globally both its technology and the sales of high value biobased product. Arbiom plans to build the first production plant for the processing of woody biomass and the production of a proprietary stream of highly fermentable carbohydrates and high quality lignin. The carbohydrates of the plant will be transformed into high value feed products for the essential nutrition need of the world. 15

REDEFINERY: A Large scale Biorefinery Cluster Initiative

REDEFINERY: A Large scale Biorefinery Cluster Initiative Presentation: 1. Short Intro to BBD 2. REDEFINERY Aldert van der Kooij Agro meets Chemistry The conversion of lignocellulose into chemical building