elevance renewable sciences -...

Elevance Renewable Sciences

K’Lynne JohnsonCleantech Forum New York, October 2010

2

Company Overview

October 20, 2010

WHAT WE DOElevance Renewable Sciences Inc. is the leader in the chemical conversion of

renewable feedstock into a wide range of both ‘drop in’ and novel specialty

chemicals

TECHNOLOGYElevance produces a wide range of

specialty chemicals from renewable oils using proprietary, Nobel prize winning metathesis technology developed by Dr.

Robert Grubbs

COMMERCIAL PRODUCTIONAlready commercialized, marketed and generated gross profits from its first suite

of commercial products;

Asia joint venture in place with Wilmar

Current Run Rate Production: 13,000 Mt

2013 Projected Production: 840,000 Mt

KEY STATSEmployees: 60

Founded: 2007

Headquarters: Bolingbrook, IL

2010 Elevance Renewable Sciences. This information is proprietary.

Key Points of Differentiation

• Nobel prize winning chemical catalysis technology

• Manufacturing process is proven, running at scale today utilizing multiple sustainable feedstocks

• Agreement signed in 2010 with Wilmar for commercial biorefinery

• Attractive unit level economics deliver drop in substitution that is cost and performance competitive

• Unique product attributes enable premium pricing into several market channels

• Strategic partnerships with key players in the value chain already established, others well advanced

Novel, proven proprietary technology that is feedstock flexible

Strategic partnerships accelerate access to large, existing end

markets

Profitable commercial sales today;

Established commercial Joint Venture

October 20, 20103 2010 Elevance Renewable Sciences. This information is proprietary.

Commercial Disruptive Technology

Low Costs

Multi‐source, low cost feedstocksDirect route to specialty chemicalsLow energy intensity operating conditionsScale economies

Low Capital

Direct conversion route limits processing stepsCo‐locate with synergistic manufacturing facilitiesRetrofit of existing biodiesel assets

October 20, 20104

High Value

Platform technology allows conversion into chemical building blocksCoveted product properties in several applications

The only commercial technology that creates both direct replacement and new higher performance replacements with compelling economic returns

2010 Elevance Renewable Sciences.

Replacement of Traditional Petroleum Based Feedstock

Petroleum Feedstock

Conventional Petrochemical Infrastructure

ElevanceMetathesis Catalyst

Complex Downstream Processing

Elegant Conversion ProcessRenewable Feedstock

Petrochemicals require tremendous infrastructure and processing steps

• Billions are invested to produce a simple olefin, ethylene, H2C=CH2

• Petrochemicals react the olefin to produce a diverse set of more complex products

• Ethylene derivatives may be sold or subsequently reacted to build additional complexity

Biochemicals use simple technology to unlock nature’s complexity

• Natural oils already contain desired reactive olefins

• Metathesis enables the breaking of the complex molecule into simple fragments and recombining into desired products at ambient conditions

• Product options include wax, alpha olefins, acids / esters, epoxides, aldehydes, alcohols

October 20, 20105 2010 Elevance Renewable Sciences. This information is proprietary.

Elevance Biorefinery

• Refinery scale drives economics; chemicals derivatives enhance sustainability and flexibility

• Repurposes or integrates into existing industry infrastructure driving low capital costs

October 20, 20106

Bio‐OilMetathesis Distillation

Co‐Reactants

Derivatization/ Separations

Olefins

Trans‐Esterification

Alcohol

Olefins

Specialty Chemicals

Distillation

Hydrolysis / Hydrogenation Oleochemicals

EstersInputs

Products

Process step

Asia South America North America

Capital Cost 360Kmt ($ millions) $30 $60 $75


JettyUtilities, storage

and other infrastructure

Processing equipment

Wilmar Elevance Joint Venture

• Feedstock• Capital• Off‐Take

• Technology• Capital• Off‐Take

Joint venture for world’s largest biochemical refinery (initial size of 180 Kmt in 2011, expandable to 360 Kmt in 2014)

October 20, 20107

Significant Existing Infrastructure


Uniquely Positioned to Access Value From All Oil Feedstocks

Sources: North Dakota State University; Jatropha data from Jumat Salimon and Rozaini Abdullah; Mustard data from K S Oils, Ltd.

Renewable oil feedstocks provide significant advantages

• Available at industrial scale in all regions• Liquid form enables simple, low cost

transportation & storage

Higher levels of unsaturation produce the greatest volumes of high margin products

Strategic partnerships with large suppliers enable security and diversity of supply

Feedstock flexibility between two oils has ability to deliver 5‐12% in further cost optimization

October 20, 20108

CanolaMustard

SoyAlgae

RapeseedOliveAlgae Palm

RapeseedJatrophaMustard

SoyPalm

728

394947

2850

194648

7523

2934

161418

6171

24

10310

3920

543233

1062

5854

727673

3222

9168

514843

3330272219151513121210977

0% 20% 40% 60% 80% 100%

CoconutButterfat

PalmBeef Tallow

LardAlgae

Chicken FatCottonseed

JatrophaPeanutOlive

SoybeanCorn

CamelinaSunflowerSafflowerFlaxseedCanola

Mustard

Monounsaturated Polyunsaturated Saturated


Large and Existing End Markets

Growth with Drivers for New Solutions

October 20, 20109

Consumer Ingredients & Intermediates

Detergents & CleanersPerformance Waxes & CandlesPersonal Care Products

Antimicrobials

Personal Care PreservativesAg Insecticides & FungicidesConsumer & Industrial Biocides

Lubricants, Additives & Fuels

Lubricant Base OilsLubricant & Fuels AdditivesAdvanced Bio‐Fuels

$105 Billion $13 Billion $50 Billion


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Market Entry Strategy

October 20, 201010

PetrochemicalSubstitutes

Premium Alternatives

Specialty Chemicals

Petrochemical Substitutes Premium Alternatives Specialty Chemicals

Provides Profitable Baseload Enhanced Profitability Maximize ProfitabilityRequires Qualification Performance Testing Development

Replacing Chemical Equivalents Similar Products Lower performing or higher cost alternatives

Key Metric Meeting Spec Tighter Specs or Process Economics

Demonstrating performance & economics

Development Cycle

3 ‐ 6 months 6 ‐ 18 months 12 – 36 months (can be up to 60)

Capa

city

Time


Strategic Partnerships Accelerate Entry into Large Existing Markets

Consumer Ingredients & Intermediates

AntimicrobialsLubricants, Additives &

Fuels

• Strong fundamental market openings/drivers• Not dependent on dynamics of a single market• Both near and longer term growth

opportunities

$105 Billion

$13 Billion

$50 Billion

October 20, 201011

• Partnership Benefits:

• Global partners have assets and capabilities that complement and rapidly extend Elevance’s skills and capabilities

• Increased access to available customers

• Allows Elevance to maximize value capture of high value Specialty Products

• Partnership example:

Large End Markets Penetration Accelerated via Partnerships

Manufacture Specialty Consumer Ingredients and Intermediates

Leading Developer and Supplier to the Personal Care Industry

Specialty Personal Care Retailer


Flexible and High Return Business Model Accelerates Growth

2010 2011 2012 2013 2014

Gal in

Mil

Plant Production (Million GPY)

North America #2 ‐ Q3 2014South America #1 ‐ Q3 2013Asia #2 ‐ Q1 2013North America #1 ‐ Q3 2012Asia #1 ‐ May 2011On Purpose Mfg

October 20, 201012

Elevance technology may be deployed within existing biodiesel, chemical and

oleochemical facilities enablingsignificant upgrade in product value

from underperforming assets

Asset Repurposing

JV agreements efficient access to significant existing infrastructure and

partner expertise for feedstock sourcing and marketing of certain of its products

Joint Ventures

Elevance benefits today from under utilized toll manufacturing capacity; Our existing portfolio of contract and batch manufacturing options enable a flexible and scalable commercial operation

On Purpose / Toll Manufacturing


Proprietary, Disruptive Technology Platform Generating Gross Profits Today

Attractive Low Capital And High Margin Business Drives Compelling Unit Level Economics

Commercialization Further Enhanced By Wilmar Joint Venture

Large And Existing End Markets Accessible Through Strategic Partnerships

Renewable Feedstock Flexibility

October 20, 2010

Investment Highlights

13

Delivering Exceptional Economic Returns and Enabling a Multi‐billion Dollar Specialty Chemical Business

Flexible and High Return Business Model Accelerates Global Growth


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