biobased chemicals, industrial sugar and the development of biorefineries

Biobased chemicals, Industrial Sugar and

development of Biorefineries

Adrian Higson

Food and Health ISP Annual Symposium

4th March 2014

Copyright © NNFCC 2014.

A specialist ‘not for profit’ Bioeconomy consultancy

Celebrating 10 years of Bioeconomy development

Company Vision

We view biobased technologies as key components of the low carbon economy delivering economic,

social and environmental benefits.

We believe the bioeconomy will create sustainable business opportunities for feedstock suppliers,

technology and project developers, manufacturers and investors.


Company Mission

To provide clients with a holistic view of feedstock, technology, policy and

market development across the bioeconomy, enabling them to make

informed business decisions and develop sustainable business

strategies. Mar

ket

Dyn

amic

s

Political

Economic

Social

Technological

Legal

Environmental


Clients & Partners

• Multinationals & SMEs

• Public Organisations

• Government

• Research Institutes

• Universities

• R&D Collaborations

• Research Councils & TSB

• EU Projects

Members of


Bioeconomy

Biotech Biogenic Resource

The production of renewable biological resources and their conversion into food, feed, bio-based products and bioenergy

Bioeconomy


A mechanism to drive sustainable development covering Environmental, Economic and Social policy. Today’s bioeconomy in Europe • is worth an estimated €2 trillion • accounts for 22 million jobs • 9% of total employment in the EU Each euro invested in EU-funded bioeconomy research and innovation is estimated to trigger €10 of value added in bioeconomy sectors by 2025.

EUROPEAN BIOECONOMY

Innovating for Sustainable Growth A Bioeconomy for Europe

February 2012

http://www.google.co.uk/url?sa=i&rct=j&q=eu+flag&source=images&cd=&cad=rja&docid=tlanp6-f5HNbHM&tbnid=jPPmIfhjK6G4EM:&ved=0CAUQjRw&url=http://www.guardian.co.uk/commentisfree/cif-green/2009/sep/23/irish-green-party&ei=7mFIUZenFKKI0AW-voGIAQ&bvm=bv.43828540,d.d2k&psig=AFQjCNEymGem-LPeEzs718qaPw33AFykUQ&ust=1363784548550117


Bioeconomy Value Chains


Bio-based Industries Public Private

Partnership

The EU contributes €1

billion to the research

and innovation

program, European

industries have

committed to another

€2.8 billion

http://bridge2020.eu/

Horizon 2020 bioeconomy funding ~€4bn (double the funding available through PF7)


Commodities, specialties & pharmaceuticals

Pharmaceuticals Food Ingredients Cosmetics Flavours & Fragrances Home & Personal Care Polymer Additives Solvents Lubricants

Examples

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=gBbRtIRFlLFAVM&tbnid=eMdi8bK2bvHHcM:&ved=0CAUQjRw&url=http://bioplastic-innovation.com/tag/arkema/&ei=1IoQU57RJ4GJ7Aatt4CACA&bvm=bv.61965928,d.ZG4&psig=AFQjCNE6L0LNKtD1Sd9ROL_hmsrCHVXEjg&ust=1393679426101601

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=gBbRtIRFlLFAVM&tbnid=eMdi8bK2bvHHcM:&ved=0CAUQjRw&url=http://bioplastic-innovation.com/tag/arkema/&ei=1IoQU57RJ4GJ7Aatt4CACA&bvm=bv.61965928,d.ZG4&psig=AFQjCNE6L0LNKtD1Sd9ROL_hmsrCHVXEjg&ust=1393679426101601

http://www.hostingpics.net/


Bio Chemicals and Bio-Based Polymers (supplying food, feed and chemical using industries)

Global market size

~ 50 million tones

1%

7% 1%

20%

54%

5%

7% 4%

1%

17%

Chemical Derivatives Naval StoresNatural Products OleochemicalsBiopolymers Amino AcidsAlcohols Aliphatic acidsOther

Fermentation Products


EU Industrial Policy: A Stronger European Industry for Growth and Economic Recovery October 2012

Europe needs to reverse the declining role of industry in Europe. A vision focused on investment and on innovation. The priority areas are markets where new technologies are ready to deliver new products or increase productivity. The volume growth of EU bio-based chemical products* up to 2020, is estimated at 5.3% p.a. Resulting in a market worth € 40 billion and providing over 90,000 jobs within the biochemical industry alone. * Including bio-plastics, bio-lubricants, bio-solvents, bio-surfactants and chemical feedstock

http://www.google.co.uk/url?sa=i&rct=j&q=eu+flag&source=images&cd=&cad=rja&docid=tlanp6-f5HNbHM&tbnid=jPPmIfhjK6G4EM:&ved=0CAUQjRw&url=http://www.guardian.co.uk/commentisfree/cif-green/2009/sep/23/irish-green-party&ei=7mFIUZenFKKI0AW-voGIAQ&bvm=bv.43828540,d.d2k&psig=AFQjCNEymGem-LPeEzs718qaPw33AFykUQ&ust=1363784548550117


Over 50 commodity or platform chemicals in development or

commercialisation.


Strong growth in biobased plastic capacity

The LEGO® Movie


Biobased Products - Market drivers and Challenges

• In use functionality

• End of life options Product performance

• Feedstock cost

• Process (operational) cost

• Capital cost Cost of production

• Product differentiation

• Green Premium Value Proposition

Market


Feedstock Pricing – A new normal

Source: International Monetary Fund

Price

ind

ex, 2

00

5 =

10

0

0.00

50.00

100.00

150.00

200.00

250.00

300.00

Agricultural Raw

Materials

Food

Crude Oil

(Petroleum)

http://www.imf.org/external/np/res/commod/index.asp


Succinic Acid 1,4-ButanediolPolybutylene

Terephthalate

Copolyester Ethers

Thermoplastic Polyurethanes

Spandex Fibres

Tetrahydrofuran

Solvent

Polytetramethylene Ether Glycol

g-Butyrolactone

Fine & Speciality Chemicals

N-Methyl -2-Pyrrolidone


2-Pyrrolidone


N-Vinyl-2-Pyrrolidone

Polyvinyl Pyrrolidone

Deicers/Coolent

Plasticisers

Fuel Additives

Succinic acid value chain


Ethylene Polyethylenes

Styrene Monomer

Ethylene Oxide/Glycol

EDC

Other

Polymers/Rubbers

Polyester

PVC

Alpha Olefins

PVA

Ethanol

60%

7%

14%

12%

7%

Ethylene value chain

Image courtesy of Braskem


50 shades of green - Every generation now comes with a degree

of environmental consciousness

• Baby boomers (born 1946-1964)

– Silent Spring 1962

– Air quality, water quality

• Generation X (Baby busters) (born 1964-1977)

– Union Carbide and Chernobyl disasters.

– Exxon Valdez oil spill.

• Generation Y (Millennials) (born 1980’s through1990’s)

– BP Oil Spill in the Gulf of Mexico

– An Inconvenient Truth and Hurricane Katrina

• Generation Z (today’s children)

– Recycling, solar panels, hybrid cars, energy saving light bulbs

Source: Jacquelyn Ottman: The

new rules of Green Marketing


Business to Business

Business to Consumer

Green Premium? – Price vs value

Coca Cola Executive: “If Coca-Cola were to lose all of its

production-related assets in a disaster, the company would

survive. By contrast, if all consumers were to have a sudden

lapse of memory and forget everything related to Coca-Cola,

the company would go out of business.”


PET

Bottles

Fibre

Film

18 million tonnes

42 million tonnes

5 million tonnes

Polyethylene Terephthalate

//upload.wikimedia.org/wikipedia/commons/f/ff/Procter_and_Gamble_Logo.svg

//upload.wikimedia.org/wikipedia/commons/a/a6/Logo_NIKE.svg

//upload.wikimedia.org/wikipedia/en/b/bf/Pepsico_logo.svg


PET - the other half?

• Accessible via isobutanol (Gevo or Butamax) or dimethyl furan (UOP)

• Alternative routes through biomass fast pyrolysis (Anellotech) or catalytic reforming (Virent) and via muconic acid (Amyris, Genomatica)

• Avantium developing PEF polymers

OH

O

O


Bio-based materials – Novel or drop in?

Strengths • Drop in – known targets and downstream products

• Novel – exploits attributes of biomass or biological processing

Weaknesses • Drop in – number of unit operations required

• Novel – requirement for product development

Opportunities • Drop in - rapid route to market through existing

infrastructure and know how

• Novel – provides new or improved functionality

Threats

• Drop in – production never achieves cost competitiveness

• Novel – immature supply chain and market awareness

© NNFCC


Biobased plastics face technical hurdles

“Snack Attack: Chip Eaters Make Noise About a Crunchy Bag.” The Wall Street Journal Aug. 18, 2010. Marketing slogan "Yes, the bag is loud, that's what change sounds like."

Lego investigating biobased plastic but it must meet stringent quality requirements.

The LEGO® Movie


CO2 capture and use

By-products, residues &

wastes

Biomass Crops & Forestry

Food crops

Land use and food vs fuel concerns must be considered. However the biobased products are differentiated from biofuels & bioenergy. e.g. scale, alternatives

WWF Biobased Panda

Feedstock choice & Value Chain Acceptance

Hierarchy of brand owner preferences


Bioplastic Land Use Scenarios (2030)

0

10

20

30

40

50

% o

f av

aila

ble

lan

d

Chemical driven

Biofuel stalled

Biofuel driven

Bioeconomy

Polymer demand – 428 million tonnes

Land availability – 250-800 million ha (Source FAO)


Ensuring sustainable development

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=MS2xhYn-96__-M&tbnid=hSh5HeK1GUIGwM:&ved=0CAUQjRw&url=http://www.icbp.com.my/OK-Biobased.php&ei=FM0UU6fDPOme7Abw84Ag&psig=AFQjCNGqN5NwJ0OpjRKUWy3623wm2ktB0Q&ust=1393958446025425

https://www.google.com/imgres?imgurl=http://www.icbp.com.my/images/Vincotte%20logo.jpg&imgrefurl=http://www.icbp.com.my/OK-Biobased.php&docid=MS2xhYn-96__-M&tbnid=hSh5HeK1GUIGwM:&w=377&h=190&ei=FM0UU73yO6mw7Ab204G4Ag&ved=0CAIQxiAwAA&iact=c


Cellulosic ethanol – First steps in industrial sugar fermentation

POET-DSM Advanced Biofuels’ first commercial cellulosic

bio-ethanol plant is on schedule to start up June 2014.

Initial capacity 20 million gallons (~60,000 tonne per year)

Beta Renewables Crescentino plant commercial-scale

cellulosic ethanol plant, in Crescentino Italy, started

operations in Q4, 2012. Capacity 40,000 tons of per year

DuPont's commercial-scale cellulosic ethanol facility in

Nevada, Iowa. Once fully operational, the facility will

produce 30 million gallons (~90,000 tonne per year)


Industrial Sugar – Next Steps

M&G Chemicals launches green revolution in the polyester chain Shanghai – 18 November 2013 M&G Chemicals announces today its decision to construct a second-generation bio-refinery in the region of Fuyang, Anhui Province of China for the conversion of one million metric tons of biomass into bio-ethanol and bio-glycols.

Increasing number of Industrial sugar platforms ready for commercialisation

http://www.sweetwater.us/

http://bfreinc.com/


Source IEA Bioenergy Task 42, NNFCC

Biorefineries

The opportunity to develop integrated chemical complexes


Building a UK ecosystem in Industrial biotechnology

Industrial Biotechnology Leadership Forum UK Plc becomes a leading centre of competence in fine and specialty chemicals Increased uptake of biocatalysis and fermentation in the existing UK chemical industry UK becomes a top three producers of high value chemicals in plants UK becomes a leading centre of know-how in producing commodity and intermediate chemicals through biocatalysis and fermentation Source: AD Little Roadmap


UK economic growth based

on key Industrial Innovation

Eight Great Technologies

Bioeconomy Innovation

• Agri-Science

• Synthetic Biology

• Advanced Materials


A global leader in Synthetic Biology

Synthetic Biology Leadership Council Over £60 million for synthetic biology

• £1 million synthetic yeast genome. • £10 million for multi-partner Innovation

and Knowledge Centre (IKC). • £20 million for multidisciplinary research

centres. • £10 million for a synthetic biology seed

fund. • £18 million for DNA synthesis. • £2 million to support training


Structural Biol and Biocat.

Biocatalyst Discovery

Biopharma

Bioprocessing

Plant Metabolites

Natural Products Novel Chassis

Gas Fermentation Microalgae Microbial

Metabolites

Membrane Transport

Metals in Biology

Cross Cutting

Glycoscience

BBSRC IB & Bioenergy Networks

Biorefining

Integrated Technologies

Systems and Synthetic Biology

Anaerobic Digestion Agri-Food Chain


Multi-funder collaboration

providing £45million in

2014/15

Translation of research on

biological processes into

industrial processes.

Enable the manufacturing of

new products or improve

manufacturing of existing products.

http://www.bbsrc.ac.uk/business/collaborative-research/tsb-competitions/ib-

catalyst.aspx


• Early stage: Translation - Academic-led experimental work that builds on existing

discoveries.

• Early stage: Feasibility studies – Academic or business led projects to explore the commercial potential of an early-stage scientific idea through feasibility studies.

• Industrial Research – Business led projects building on recent discoveries to develop new technologies or processes.

• Late stage: Pre-experimental feasibility studies – Business led projects to test proven processes at a greater scale of operation or with commercially equivalent equipment for the first time.

• Late stage: Experimental development – Business led projects to demonstrate that performance seen previously is repeatable during extended testing at a commercial scale.

5 Funding streams


Process demonstration and scale up

http://www.google.co.uk/url?sa=i&rct=j&q=centre+for+process+innovation&source=images&cd=&cad=rja&docid=WtF0K3zRXMIP6M&tbnid=FO3gxMNtETQncM:&ved=0CAUQjRw&url=http://www.airto.co.uk/list/cpi.html&ei=yI5IUcf9LPDZ0QWQpYGgDA&bvm=bv.43828540,d.d2k&psig=AFQjCNFY2bc_YVGMTokYnaGYeWlpbowBXg&ust=1363796023358302

http://www.google.co.uk/url?sa=i&rct=j&q=Beacon+Centre+biorefinery&source=images&cd=&cad=rja&docid=leu7LPRpGBjDtM&tbnid=9WiMGPVbw0FOaM:&ved=0CAUQjRw&url=http://beaconwales.org/en/events/beacon-events&ei=Ao9IUYjrG8_s0gX824CYDQ&bvm=bv.43828540,d.d2k&psig=AFQjCNFJbZKQ-_WAucwPTDiMJL-aWrMkJQ&ust=1363796082517903

http://www.google.co.uk/url?sa=i&rct=j&q=Biorenewables+Development+Centre&source=images&cd=&cad=rja&docid=exQhdm1pCv489M&tbnid=HN7C58RH34bE-M:&ved=0CAUQjRw&url=http://scy.co.uk/news/new-opportunities-biorenewables-development-centre&ei=NI9IUZufIZCY0AXjyoBo&bvm=bv.43828540,d.d2k&psig=AFQjCNFekrzNfEOMzqOKfvpnVVOeIZH0cQ&ust=1363796143253671

http://www.google.co.uk/url?sa=i&rct=j&q=Biorefinery+centre+IFR&source=images&cd=&cad=rja&docid=1v2d1kRAl6OZyM&tbnid=QzoBM-1ZirAk4M:&ved=0CAUQjRw&url=http://www.ifr.ac.uk/events/openday/index.htm&ei=349IUca-BorF0QXG9ID4BA&bvm=bv.43828540,d.d2k&psig=AFQjCNHGkh3vh6aG6nGE0_8WA5upPk_Vtg&ust=1363796287939577

http://www.google.co.uk/url?sa=i&rct=j&q=Bio+Base+Europe&source=images&cd=&cad=rja&docid=z3qqyST427Ob-M&tbnid=s1UWrr5CEzEJiM:&ved=0CAUQjRw&url=http://biobase.presite.be/biobase/en/content/general-info&ei=4pFIUea0HKKq0QWytYHAAg&bvm=bv.43828540,d.d2k&psig=AFQjCNEpXyjso_vC6hiH5NTeob3tjlaxqg&ust=1363796819093318


Bio Base NWE is a three-year project (2013-2015) by the European Commission to support the development of the bio-based economy in North West Europe (NWE ).

The €6.2 million project will help entrepreneurs and companies to facilitate innovation and business development in bio-based technologies.

http://www.tcbb.ie/

http://www.clib2021.de/


1. A network, linking bio-based economy experts, advising on how to develop new ideas into marketable products, from the first feasibility study or market analysis up to funding and investment scenario’s.

2. Innovation coupons for SME’s to perform proof-of concept studies and/or to demonstrate innovative bio-based technologies at Bio Base Europe Pilot Plant, an independent, state of the-art demonstration facility in Ghent, Belgium (technology feasibility, cost-assessment or barrier analysis).

3. Programs and tools for training and education to help tackle the shortage of skilled professionals in North West Europe’s bio-based industries.

Scope


Bio economy

Feedstock pricing & volatility

Technology

Development

(performance & cost)

Environmental considerations

The bioeconomy will create sustainable business opportunities for feedstock suppliers, technology and project developers, manufacturers and investors. The UK has the research base to capitalise on these opportunities. Support (funding & facilities) for technology development is in place. The UK needs to demonstrate innovation capacity through technology commercialisation.

Summary


More information

• IB Catalyst • Bio Base NWE

• NNFCC services

Email: [email protected]

@biobasedchem

mailto:[email protected]

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&ved=0CAQQjRw&url=https://twitter.com/twitter&ei=dvoUU-KsJsje7AaNs4GYCA&usg=AFQjCNEG8eBV5h2aqf5sU43WYdaxLcuGgw&sig2=gswOqc-FdOW3C09hcSqqew&bvm=bv.62286460,d.ZGU

Celebrating 10 years of Bioeconomy

development

NNFCC is a UK based consultancy with

expertise on the conversion of biomass

to bioenergy, biofuels and biobased

products.

We help industry solve complex

business challenges and provide vital

evidence for policy makers.

| | www.nnfcc.com | [email protected]