NER300 - BEST Project - IBP Srl category RES-BIOg

Stefania Pescarolo Head of Public funding

Bruxelles, 22 June 2017

World’s first advanced BIOETHANOL demonstration industrial plant in Crescentino (VC, Italy)

Mossi Ghisolfi is a multinational, family-run

business established in 1953

by Vittorio Ghisolfi and Domenico Mossi.

It is one of the world’s leading producers

of PET resin

It is Italy’s 2nd largest chemical company.

It is a forward-looking company that is

continuing to invest significant funds into

bio-fuels and green chemistry research

and development as part of its

commitment to sustainability

Biochemtex is the M&G global

engineering and technology company

M&G - Our Group

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NER300

BEST Project – Second generation bioethanol process – demonstration scale of innovative and sustainable biotechnological conversion of lignocellulosic biomass into ethanol on a 51 million litres per year plant

• Category RES (RENEWABLES) – BIOg (BIOENERGY – Lignocellulose to ethanol)

• Project Sponsor: IBP Srl (and Biochemtex as main EPC contractor)

• Location: Crescentino (VC, Italy)

• NER300 date of entry into operation: 01/06/2013 (5y duration)

• NER300 Legally Binding Instrument signed on April 2014 with the Italian Minister of Environment

• NER300 contribution: 28.4 millions Euro (for renewable energy of 1.414.558 MWh equivalent to 140.000 tons of dry bioethanol in five years)

BEST Project – NER300 RES-BIOg

Ethanol plant - Development Timeline

Nov 2012

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Apr 2011 Sept 2011

2006 Scouting of 2G technologies 2008-2010 Pilot plant construction & operation The first-of-its-kind 2G ethanol plant (Crescentino - Demo) started in 2010, the construction began in 2011, inaugurated on October 2013

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Steam Enzymes

Lignocellulosic biomass

PROESATM - 2nd gen. bioethanol technology

Ethanol

Smart Cooking

Viscosity Reduction

Distillation Hydrolysis & Fermentation

Lignin for Energy Block

ProesaTM Technology benefits:

Feedstock flexibility

Continuous process No chemical addition Optimal sugar extraction with low enzyme dosage

Fully integrated process design using continuous equipment to enable large scale plants

Best in class technology with lowest capex and opex backed with performance guarantees

This document is property of M&G Group. This document cannot be reproduced and/or copied and/or distributed without prior written consent of M&G company

BIO-ETHANOL – PRODUCT SPECIFICATION AND CERTIFICATION

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Crescentino original design of the plant

Selected biomass : lignocellulosic biomass

Crescentino plant was designed to run on Arundo Donax, but the necessary

quantity of this energy crop was not available due to the fragmented land

availability in Northern Italy.

The solution turned out to be straw or poplar, locally avalaible in the

neighbourhood of the plant.

Ethanol plant capacity:

40’000 Mt per year based on Arundo donax

25’000 Mt per year based on Wheat Straw

Averaged biomass used: about 200’000 Mt per year

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BEST Project – RES – BIOg

General comments on NER instrument

• NER is offering awards to installations and operation of innovative renewable energy projects (e.g. biofuels). It is a good financing instrument managed jointly by the European Commission and Member States, with the support of the European Investment Bank.

• NER can be a kind of incentive to mobilize investments, especially if timing (call, project selection and approval, …) is efficient

• In most cases does not solve the debt financing issue, but can help by improving the overall business plan: it does help new technologies to cover a gap of costs vs. more established technologies.

• NER can be combined with other funding instruments (e.g. Horizon2020, BBI Bio-based, national grants and loan, etc.).

• Clear/stable policy framework is today of most importance

• The experience developed with the BEST Project will enable similar plants to be built in Europe, USA, Latin America and Asia. The expectation is that this kind of funding instruments will support the replicability of this project in Europe.

ProesaTM in Crescentino: first Bioethanol truck

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Thank you!