ABENGOA

Innovative technology solutions for sustainability

Master de Microbiología

Sevilla ,May 2016

How are Biofuels made?

Introduction to Abengoa / Abengoa Research 1

ABENGOA applies innovative technology solutions for sustainability

in the energy and environment sectors, generating electricity from renewable resources, converting biomass into biofuels and producing drinking water from sea water.

2

Engineering and construction

70 years of experience in energy infrastructures

Proprietary know-how

Leading international contractor in T&D, solar power plants and electrical infrastructures (“power”)

1

Concession-type infrastructures

Solar, transmission lines, desalination, cogeneration and others

Very low market risk

Average contract term: 25 years

2

Industrial production

Biofuels

High-growth markets

Market leaders

3

Abengoa’s business is structured around three activities

Energy Environment

We perform these three activities in two high-growth sectors

Introduction to Abengoa Key areas

3

Technology and innovation are the basis for our competitive advantage

Engineering and construction Technology and innovation Concessions

Unique engineering capabilities

Technological development

Operation of proprietary assets

…allow us to construct… R&D creates innovative solutions

and new products that…

…and the operation of assets retro-feeds the innovation. Abeinsa new

horizons

Introduction to Abengoa Business model

4

ABEINSA

ABENGOA

RESEARCH

Innovative Technology Solutions for Sustainability

Copyright © Abengoa S.A. 2014. All rights reserved

Biofuels 2

5

1G Ethanol

Pretreatment Fermentation Distillation and

Dehydration Enzymatic Hydrolysis Crops

Ethanol 1G

Ethanol Technology in 1st and 2nd generation of feedstock

Bio-Ethanol

1.0 USD of Corn 1.8 USD of revenues

Corn oil DDGS CO2

Every $1.0 spent on the input feedstock to produce ethanol yields $1.8 in finished products, this is

alcohol, corn oil, CO2 and DDGs.

Biochemical pathway

6 Biocarburantes de Castilla y León, Salamanca

Abengoa Bioenergy Assets

USA

Brazil

Europe

Biofuel capacity = 1440 MLY

Feed capacity = 980 KTY Biofuel capacity = 1495 MLY

Feed capacity = 885 KTY Cogeneration capacity = 119 MW

Coruña, Sp

Salamanca, Sp Rotterdam, NE Lacq, FR

Biofuel capacity = 220 MLY Sugar capacity = 570 KTY

Cogeneration capacity = 140 MW

São Luiz, SP SAP, SP São João, SP

Large asset base

Access to various geographies

Logistic leverage/arbitrages

Raw material alternatives

Experienced team

Risk management platform

Competitive Advantages

Global

Biofuel (MLY): 3155

Sugar (KTY): 570

Feed (KTY): 1,865

Electricity (MW) 259

Since 1995 Since 2002

Since 2008

San Roque, Sp Biodiesel, 60 MGY

Coruña, Sp Ethanol, 52 MGY

Cartagena, Sp Ethanol, 39 MGY

Rotterdam, NE Ethanol, 125 MGY

Lacq, Fr Ethanol, 65 MGY

Salamanca, Sp Ethanol, 53 MGY

Evansville,IN Ethanol, 90 MGY

Colwich, KS Ethanol, 25 MGY

York, NE Ethanol, 55 MGY

Granite city, IL Ethanol, 90 MGY

Portales, NM Ethanol, 25 MGY

Ravenna, NE Ethanol, 88 MGY

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8 8

Feedstock preparation

Transformation into sugars Fermentation Distillation

Yeast Fermentation C6

Dis

tillati

on

Sugar Cane

EtOH

CO

2

Collection, milling & filtering

Simultaneous Saccharification & Yeast

Fermentation C6

Dis

tillati

on

Cooking & liquefaction

EtOH

CO

2

DDGs

Protein & fiber

Cleaning & milling

Enzymes

Cereal

Dis

tillati

on

Pretreatment Biomass

EtOH

DDB

Electricity,heat and other products

Cleaning & milling Enzymatic Hydrolysis

Simultaneous Saccharification & Yeast

Fermentation C6, C5

CO

2

Enzymes

Enzymes

1G

2G

Technology in 1st and 2nd generation of feedstock

Abengoa Bioenergy Netherlands

Abengoa Bioenergy Biomass of Kansas

Gasoline 349 BGY

Jet 94 BGY

BioDiesel 484 BGY

9

Biofuels

1995-2016

2001-2016

1G

2

G

Sustainable and cheap

Bioethanol producers.

PMMA 739 BGY

Polyesters/Xylene/Styrene 27BGY

Rubber, Lubricants & Additives 8 BGY Surfactants

Chemicals

Sugars will be the new oil…

Ethanol as blend…

Cere

al

Can

e

Bio

mass

Bagasse

Waste to Biofuel

Woody

Corn Stover

Corn

Sugar Cane

ABENGOA

Barley

Rye

Others

Butanol

Vegetable Oil

Others

More than Ethanol…

Abengoa Research Biotechnology group

Strong internal R&D capabilities

• Expertise in biochemistry and microbial engineering.

• Fully automatized laboratory

• Achievements: Development of microorganisms which produce enzymes performing at low doses and optimized enzymatic activities profile.

• Fermentation capacity up to 30 L (installing up to 1m3)

• Major DSP equipment

• Experience in process development

• Achievements: Robust production process maximizing the microorganism productivity at a profitable cost.

Strain Development Seville

Process Development Salamanca

CTFS CPA

Biochemistry

Genetic Engineering

Molecular Biology

High-throughput screening

Capabilities

Fermentation optimization

DSP development

Scaling-up

Benchmarking

Capabilities

10

Ethanol Technology in 2nd generation of feedstock

11 11

Feedstock preparation

Transformation into sugars Fermentation Distillation

Dis

tillati

on

Pretreatment Biomass

EtOH

DDB

Electricity, heat and other products

Cleaning & milling Enzymatic Hydrolysis

Simultaneous Saccharification & Yeast

Fermentation C6, C5

CO

2

Enzymes

2G

Schematic presentation of effects of pretreatment on lignocellulosic biomass (Hsu et al, 1980)

Pretreatment involves the alteration of biomass so that (enzymatic) hydrolysis of cellulose and hemi-cellulose can be achieved more rapidly.

Pretreatment pursues modification the physico-chemical properties of the biomass: breakage of lignin protection and decrease of cristallinity degree of cellulose.

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Pre-treatment

1. Physical pretreatments

Barakat et al. / Applied Energy 113 (2014) 97–105 Schuth, Dumesic, ACS Catal, 2013 Rinaldi, Chemsuschem, 2012

dry chemo-mechanical pretreatment of lignocellulosic biomass

2. Solvent fractionation

Scheme of the organosolv process for biomass fractionation

Lignin Production by Organosolv Fractionation of Lignocellulosic Biomass, ECN Netherlands

3. Chemical pretreatments

Scheme of the AFEX process

4. Biological pretreatments

Microbial pretreament of wood. Oak Ridge National Lab

Ethanol Technology in 2nd generation of feedstock

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Ethanol Technology in 2nd generation of feedstock

Bagasse Waste to Biofuel

Woody Corn

Stover

C5-C6 Sugars

Xylose Arabinose

Xylan Cellulose

Endoxylanases (EX)

Beta-xylosidase (bxl) Cellobiose

Glucose

Endoglucanases (eg2) +

Cellobiohydrolases (cbh)

Cellobiohydrolases (cbh)

Beta-glucosidase

1. Pretreatment

2. Enzymatyc Hydrolysis

3. Fermentation

4. Distillation and Evaporation

Ethanol

Chemical Feedstock or energy

Lignin

Enzymatic Hydrolysis

Cereal CornStover

Bagasse Woody Waste

USD/gal

Cost Contribution of “Enzymes" Raw Materials ($/gal)

3. Fermentation

14

Ethanol Technology in 2nd generation of feedstock

C5/C6 Fermentation

Xylose is the second most abundant carbohydrate in the lignocellulosic biomass hydrolysate. The fermentation of xylose is essential for the bioconversion of lignocelluloses to fuels and chemicals.

1G Ethanol technology allows the yeast to grow during fermentation Due to inhibitors presents in 2G technology a high efficiency propagation is needed Propagation step is therefore a more critical stage than in 1G EtOH technology.

C5-C6 Sugars

Xylose Arabinose Glucose

4. Distillation and Evaporation

Ethanol

Yeast

25% 2%

72% 95%

0%

20%

40%

60%

80%

100%

Lignocellulosic Cereal

% o

f to

tal s

ug

ars

Others

Glucose (C6)

Xylose (C5)

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Ethanol Technology in 2nd generation of feedstock

Lignin Valorization

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Stillage

Bulk Uses Organic soil amendments

Animal feed

Cake

Syrup

Microbiology Butanol

Ethanol

Alkanes

Extraction &

Purification processes

Isolated lignin

Resins

Carbon Fiber

Carbon Black

Binders

Antioxidants

2G R&D Technology

2G Pilot Plant York (NE, USA)

2G Demo Plant Salamanca (SP)

2G Commercial Plant

Hugoton (USA)

Biomass to Ethanol

Commercial Plant Hugoton Demo Plant

Salamanca Pilot Plant

York

Abengoa : Developer of 2G Biofuels Technology

2G Biofuel & Bioproducts

We have demonstrated our ability to scale-up the process

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Location: US (2014)

95 ML/year from agricultural waste

Location: Netherlands (2010)

480 ML/year 360,000 t DDGS (Dried Distillers Grains with Solubles)

Largest biofuel plant in Europe

Location: Spain (2008)

200,000 t biodiesel

Our landmark projects Biofuels

2nd generation bioethanol from biomass Other examples

A global production capacity of more than 2,500 ML/year of bioethanol

Location: Uruguay (2015)

70 ML/year, 49,000 t of DDGS

Location: US (2010)

333 ML/year, 230,000 t DDGS

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18

Main Players in cellulosic ethanol

Likely to have

commercial plant

near term

CompanyCapacity (MGY)

Process Technology

EnzymeTechnology

Expected start of

commerical operations

* Abengoa Bioenergy 25 Abengoa Abengoa 2014* POET-DSM 20 DSM DSM 2014* DuPont 30 DuPont DuPont 2014* Project Alpha (Beta R.) 20 Chemtex Novozymes 2014

Fiberight 6 Chemtex NovozymesCanergy 25 Chemtex NovozymesGreenfield 10 Enerkem, W2BNovozymes

* Mascoma 20 AB Enzymes Delayed* Clariant - - No plans* Inbicon 20 DSM 2016* Lignol 20 Novozymes Unknown* GranBio 22 Chemtex Novozymes 2014* Raizen 11 Chemtex Novozymes 2014

TMO 2.6 TMO RenewablesColbiocel 22 Chemtex NovozymesOAI Unknown Unknown

* Beta Renewables 20 Chemtex Novozymes OperationalMaabjerg 25 UnknownMYBiomass 16 UnknownSabah Unknown UnknownCofco/Sinopec 17 Unknown NovozymesLonglive 17 Shandong Longlive Bio-TechnologyZTE 8 UnknownJilin Fuel 8 UnknownDacheng Unknown NovozymesSQ Unknown UnknownDatang Unknown DupontStategrid Unknown UnknownHNTG Unknown UnknownAverage 17Total 364

USA

BR

EU

Asia

Bio-Ethanol

Innovative Technology Solutions for Sustainability

Copyright © Abengoa S.A. 2014. All rights reserved

19

Biofuels 2 2.1 Woody Biomass

Chemical Composition of Wood

Woody Biomass is,

is a renewable resource. a non‐food, organic material that as a feedstock will not compete with agricultural interests for growing food crops.

Advantages – Woody biomass

can reduce wildfire hazard when it is removed from the forest or wildland urban interface when burned to produce energy, emits an amount of carbon dioxide that is comparable to the amount of CO2 released by wood during natural degradation. Since trees fixCO2 during photosynthesis, using wood to produce energy is considered “carbon neutral.”

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Woody biomass

Cellulose

Hemicellulose

Resin

Lignin

Woody biomass

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Classification Effects Observations

Furfural and HMF

• Reduction of the specific growth rate • Reduction of the ethanol volumetric and specific productivity • Reduction of the biomass production • Production of harm in the cell plasmatic membran • Inhibition of the action of enzymes

Inhibitory effects produced by HMF and furfural are the same but furfural is more

intensive.

Alifatic acids

• Drop of the ethanol yield • Reduction of the biomass production • Reduction of the specific growth rate • Cell death

Inhibition mechanism is not clear yet

Phenolic compounds

• Production of harm in the cell plasmatic membran • Decrease ethanol yield • Reduction of the biomass production • Reduction of the specific growth rate • Cell death

The most toxic components. They mask carbohydrates hindering enzyme accesibility

and hydrolysis

Combined effects

Furfural and acetic acid • Reduction of the growth rate • Decrease in the biomass yield • Drop in ethanol yield Synergistic effect, because the combination

of these compounds has higher inhibitory effects than the occasioned individually. Furfural, acetic acid and

lignin-derived compounds

• Reduction of the ethanol yield • Reduction of the growth rate • Decrease of the biomass yield

Lignin derived byproducts present about 10 times higher inhibitory effects than sugar derived products

4-hydroxybezoic acid Vanillin Catechol Syringaldehyde Coniferyl aldehyde 4-hydroxybenzaldehyde

Inhibitory effects

Woody biomass

Innovative Technology Solutions for Sustainability

Copyright © Abengoa S.A. 2014. All rights reserved

22

Biofuels 2 2.1 Woody Biomass

2.2 Waste to Biofuels

Advantages, Sólo el 25% de residuos se envían a vertedero

Recuperación de más del 75% de materiales reciclables

Tecnología fácilmente adaptable a distintas geografías

Ingresos por canon, venta de reciclables Reducción de emisiones a la atmósfera

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Waste to Biofuels represents an integral solution for MSW management based on recovery of recyclable materials and valorization of convertible fractions like carbohydrates. The novel approach is on the production of renewable fuels while minimizing the generation of sub-fractions whose final fate is landfill and promoting recycling of components that are inherently present in the MSW.

Jerarquía de tratamiento de Residuos

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Solid Refuse Fuel

Biowaste

Font-end area

MSW

W2B General overview

Sugars syrup Bioethanol

Recyclable materials

Cake

31%

26%

26%

17%

Innovative Technology Solutions for Sustainability

Copyright © Abengoa S.A. 2014. All rights reserved

25

Biofuels 2 2.1 Woody Biomass

2.2 Waste to Biofuels

2.3 Isobutanol and n-butanol

There are two main alternative routes to produce butanol through sugar fermentation.

Iso-biobutanol fermentation: innovative fermentation to produce directly iso-butanol (Gevo, Butamax).

ABE fermentation: classical process that produces mixture ethanol / n- biobutanol / acetone (Green Biologics, Abengoa).

Butanol overview – bioprocesses

Sugar Production

Iso-Butanol Fermentation

ABE Fermentation

Sugar Production

Fermentation

Dehydration

ABE Fermentation

Separation Complex

iso-butanol acetone ethanol n-butanol

Main use: Fuel Building block > fuel Main use:

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High energy content, near gasoline

Allows higher blends – Can be blended with gasoline at 16%, helping producers overcome the blendwall

Not hydroscopic (i.e., attracting moisture) or corrosive

True "drop-in" fuel – No modifications required to cars or fuel infrastructure

Compatible with existing engines and storage infrastructures

Low vapor pressure - the blended fuel can meet government restrictions on vapor pressure without the need for specialized blendstock (RBOB)

Can be blended at refineries

Transportable in existing petroleum pipelines

Adaptable to future feedstocks – Including cellulosics

Butanol’s Advantages as a Fuel

Physical Property iso-butanol n-butanol Ethanol

Density at 20°C (g/cm³)0.794 0.810 0.802 ‏

Boiling Point at 1 atm (⁰C)78 118 108 ‏

Water Solubility at 20⁰C (g/100mL)7.7 8.0 ‏ Miscible

Net Heat of Combustion (BTU/gal)80,000 93,000 95,000 ‏

R+M/2 103.5 87 112

Blend RVP (psi at 100⁰F) 1 5.0 4.3 18-22

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For the future, based on strengthen our current capabilities in synthetic biology, biotechnology and bioprocessing, our protected technology platform we will deliver new products to be produced by fermentation of the sugars that we produce in our assets

The Biotechnology Group

“Bio-Making it Tech-feasible”

Thanks you for your attention

ABENGOA

RESEARCH