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Bio-Based Chemicals: On the Path to Commercialization
World Bio Markets Brazil18 September 2013Steven SlomeNexant, Inc.
Agenda
A Brief Introduction to Nexant
Commercial renewable chemicals
Biochemicals approaching commercialization
Conclusions
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A Brief Introduction to Nexant
3
Nexant Consulting is a global consultancy engaged throughout the energy and chemicals value chain
UPSTREAM MIDSTREAM CHEMICALSDOWNSTREAM
Resource Evaluation
Exploration & Drilling
Oil & Gas Service
- Sector Planning
- Shale Gas & Oil
- Coal
GREEN CHEMICALS RENEWABLE ENERGY
Oil and Gas
Biomass
Gasification
Solar (Thermal & PV)
Wind Power
Clean Coal
CO2 Capture and Sequestration
Fuel Cells & Hydrogen
Geothermal
Syngas
Biopolymers
Olefins
Alcohols
Aromatics
Sourced from Biomass, Algae, Wastes, and Agricultural Sources
Chemicals and CleanTech
Processing
LNG Liquefaction
LNG Shipping & Regasification
Oil & Gas Pipelines
- Gas Processing
- Gas Distribution
Petroleum Refining
Product Market Assessment
- Coal to Liquids
- Gas to Liquids
Gas & Naphtha Based Petrochemicals
Olefins & Aromatics
Polymers
Intermediates
Ammonia & Fertilizers
Specialty Chemicals
Advanced Materials
Nexant has completed over 3,000 client assignments in over 100 countries, and has over 800 employees
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Cellulosic Sugars: Unlocking Biomass’ Potential Bio-Monomers for Polyamides: Parachuting Into the Value Chain? Biobased Chemicals: Going Commercial Plants To Plastics Bio-Butanediol: Is Bio-Butanediol Here to Stay? From Diapers to Paints - Is Bio-Acrylic Acid on the Way? Bio Routes to p-Xylene Plastics from Trees Algae Technology Oleochemicals Bio-Succinic Acid “Green” Tires Isoprene/Bioisoprene
Recently published multiclient reports indicate Nexant’sattention to green technology
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Bio-Feedstocks: Resources for Renewables Bio-Butanol and Downstream Markets: Will You Be Buying Bio? Bio-Naphtha: Missing Link to the Renewable Chemicals Value Chain Bio-Aromatics: Reforming the Future MSW: Reusing Our Refuse Bio-Based Petrochemicals: Capacity, Penetration, and Impact to 2030 Bio-Jet Bio-Butadiene Lactic Acid/Polylactic Acid
See www.nexant.com for an abstract, prospectus, and order forms
A number of additional “green” multiclient reports are being prepared
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Commercial Renewable Chemicals
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Some renewable chemicals have been commercial for many years, and others have recently emerged
Ethanol – Vast global industry (Brazil and U.S. are world leaders)
Ethanol to ethylene – India, Brazil, Taiwan
n-butanol (via ABE) – China, historically was a global industry
Oleochemicals – oils to specialty chemicals – many, global
Citric Acid, Ascorbic – China (50-100 plants)
Furfural – US, China >400,000 TPY
PDO – DuPont/Tate & Lyle, U.S.
PLA – Purac, NatureWorks, U.S. >140,000 TPY
Glycerine Based– Methanol, ECH, PG
Others (e.g., Amino Acids, enzymes, thermoplastic starch)
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Ethanol is the largest and one of the most important commercial biochemicals
Source: FO Licht
Ethanol is both an additive/replacement for gasoline, as well as a feedstock for biochemicals (e.g., ethylene), and a beverage – Brazil and the U.S. are the world leaders
US Corn Belt
Brazilian Sugarcane Belt
Global Ethanol Production By Region
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Ethanol historically was produced from ethylene, but now has become a route to bio-ethylene
Ethylene to Ethanol1930’s-1990’s
(Faraday, 1825)
Ethanol to Ethylene1980’s-1990’s (Brazil)
1990’s+ (India)Currently (Brazil, India,
Taiwan)
Glycerine has a similar story—historically produced as a by-product of soap manufacture, then synthetically, it is now (due to large volumes available, particularly from biodiesel manufacture) a
feedstock for such chemicals as PG, ECH, and methanol
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Biochemicals Approaching Commercialization
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Venture Capital investment has shifted to biochemicals
Biochemicals are generally at least twice the price of biofuels—making biochemicals a more attractive target. Many companies have repositioned themselves as biochemicals developers ,with biofuels development a secondary objective.
Biofuels versus Biochemicals Investment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012
Perce
nt of
Inves
tmen
ts
Without Chemical Aspect With Chemical Aspect
Source: Cleantech Group, Pew Trust, Nexant Research
Fine Chemicals
Specialty Chemicals
Base Chemicals
Fuels
Price
Volume
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Many important chemicals now have both fungible and functional bio-replacements
Chemical Routes Players
Acrylic Acid Fermentation, Glycerine to Acrolein
OPXBio, Dow, Nippon Shokubai, Arkema, BASF,
Cargill, NovazymesAlpha Olefins Metathesis Elevance
Ethylene, EO, EG Ethanol Dehydration
Braskem, India Glycols, Greencol Taiwan (Toyota
Tsusho)
Isoprene Fermentation Amryis, Michelin, Goodyear, Genencor
ButadieneFermentation,
Conversion of bio-BDO
Genomatica, Global Bioenergies, BASF, Invista
IsobutyleneFermentation,
Isobutanol Dehydration
Global Bioenergies, Gevo, Lanxess
BTX APR, Pyrolysis Virent, Anellotech, Cool PlanetPropylene
GlycolGlycerine
ConversionADM, Cargill, Huntsman,
Ashland
PX Fermentation,Catalysis Gevo, Micromidas
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Many important chemicals now have both fungible and functional bio-replacementsChemical Routes Players
BDOFermentation, Succinic Acid
Hydrogenation
Genomatica, Lanzatech, BioAmber
PDO Fermentation Dupont, Tate & Lyle
Butanols Fermentation Gevo, Butamax, Green Biologics, Cobalt, Butalco
Succinic Acid Fermentation BioAmber, Reverdia, PTT, Mitsubishi
Adipic Acid Fermentation, Glucose Catalysis Verdezyne, Rennovia
ECH Glycerine Conversion Dow, Solvay
Ammonia Biomass Gasification BioNitrogen, Syngest
Methanol/DMEGlycerine
Gasification, Biogas Conversion
BioMCN, Oberon
Lactic Acid Fermentation Nature Works, BASF, Purac, Cargill
Polycarbonate Isosorbide Based Mitsubishi Chemical
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Currently, functional replacements(60 %) are dominant, however fungibles (40%) are increasing
Global Biopolymers Production Capacity by Type2010
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Conclusions
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Conclusions
Renewable chemical substitutes are emerging for the petrochemical building blocks - ethylene, propylene, butadiene, p-xylene, benzene, syngas, as well as directly for some key derivatives such as isoprene, acrylic and adipic acid, BDO
Competitive cost and sustainability will be the new drivers rather than public policy—Brazil is advantaged
A number of biotech and petrochemical players and routes are competing
Players need to have competitive economics to succeed
The challenges to renewable chemical commercialization are formidable:- Technology development – scale-up, feedstock handling, etc.- Management development: technology developers usually don’t know
commercial aspects of petrochemicals – hire experienced executives from oil/chemical industries
- Partner with major players - Engage consultants
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Source: Warner Brothers Productions
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