retech conference 2011 renewable chemicals. chemical building blocks from renewable feedstocks....
DESCRIPTION
At Retech Conference in September 2011, I gave a presentation on the potential of renewable chemicals , the vision of Novozymes in that field and the major global driversTRANSCRIPT
Renewable Chemicals: – chemical building blocks from renewable feedstocks
Thomas Schäfer
Head of Innovation Office, R&D
Sugar & Biomass will be the New Oil
2
Fuel
Chemicals
Energy
…
3
I will discuss the…
• thinking and role of Novozymes as the leading industrial biotechnology
company
• in times of feedstock change
• concrete projects in a portfolio of options where biorefining can
gradually replace oil refining for the manufacture of bulk
chemicals.
• As basis I will describe relevant key technologies, our strategy and
" untraditional partnerships".
Content – as promised
Fact I:
NOVOZYMES PRESENTATION 4 8/6/2012
The World Is Flat, Hot & Crowded
The World Is Hot
NOVOZYMES PRESENTATION 5 8/6/2012
http://www.google.com/search?q=melting+poles&hl=en&prmd=ivns&source=lnms&tbm=isch&ei=VD9vTsa1KYftsgaRvtn9Bg&sa=X&oi=mode_link&ct=mode&cd=2&ved=0CAsQ_AUoAQ&biw=1280&bih=603
The World Is Crowded
NOVOZYMES PRESENTATION 6 8/6/2012
http://www.economist.com/node/18200618
The World Is Crowded
NOVOZYMES PRESENTATION 7 8/6/2012
http://www.google.com/imgres?q=crowded+world&hl=en&sa=X&tbm=isch&prmd=ivns&tbnid=vJ9J_e7_zQHXnM:&imgrefurl=http://www.oddee.com/item_96926.aspx&docid=cQXm77cqhDCl8M&w=450&h=299&ei=5T5vTs_dK4PCtAaB9dn5Bg&zoom=1&iact=hc&vpx=712&vpy=99&dur=62&hovh=183&hovw=276&tx=140&ty=109&page=1&tbnh=120&tbnw=180&start=0&ndsp=18&ved=1t:429,r:3,s:0&biw=1280&bih=603
The World Is Crowded: Urban Life
NOVOZYMES PRESENTATION 8 8/6/2012
http://www.google.com/imgres?q=traffic+jam&hl=en&sa=X&tbm=isch&prmd=ivns&tbnid=JXdbTFvvAX4lqM:&imgrefurl=http://www.dailymail.co.uk/news/article-426647/Forget-motorway-congestion--em-em-traffic-jam.html&docid=AfN9oveglsYcNM&w=468&h=312&ei=FENvTuYLxouzBvLp6LEH&zoom=1&biw=1280&bih=603&iact=rc&dur=453&page=1&tbnh=135&tbnw=170&start=0&ndsp=19&ved=1t:429,r:3,s:0&tx=58&ty=104
And The World Is Flat
NOVOZYMES PRESENTATION 9 8/6/2012
Demography: 1-2 Bio People additional
in new arising middle classes esp. in BRIC
countries
10
Consequences I: Pollution Biotechnologies are expected to contribute
Demography: 1-2 Bio People
additional in new arising middle classes esp. in BRIC countries
Fact II:
NOVOZYMES PRESENTATION 11 8/6/2012
The Era Of Cheap Oil & Gas Is Over
NOVOZYMES PRESENTATION 12 8/6/2012
http://bigpeace.com/pmaffitt/2010/08/23/the-era-of-cheap-crude-oil-is-over/
Source:
Technology
Review, MIT,
Oct 2010
13
…And We Witness Strong Volatilities
http://www.wtrg.com/daily/crudeoilprice.html
14
Consequences II: Dilemmas
Population
(demographics)
Demand
Fossile
Feedstocks
time
# Security of Energy Supply
15
Solution:
Re-Think Tomorrow & Innovate
Novozymes in brief
Leading-edge biotechnology expertise
World leader in industrial enzymes & microorganisms and market leader in all industries where present.
Novozymes Biologicals: a dedicated group of experts for whole cell microbial systems
> 25 accumulated experience with gene- technology for protein optimisation and production
Commitment to innovation
~14% of revenue invested in R&D
More than 6,000 patents, granted or pending
New products represented around 25% of total sales in 2009
39 new products launched during the last 5 years
PERFORMANCE 2010
global sales USD 1.83 B USD
Operating profit margin 21,3%
ROIC 22,2%
August 6, 2012 16
Source:
Novozymes' 2008 estimates
Enzymes for industrial use
Market size ~ USD 2.6 billion
Top 1% of Environmental Investment Organization carbon reporting
Best in Class Storebrand SRI
Member of Global100 by Innovest
Member of FTSE4Good Global and Europe
Member of SB20 by SustainableBusiness.com
Member of Cleantech Index
Member of OMX GES Sustainability Index
Dow Jones Sustainbility index Biotechnology sector leader
17
Using Nature’s own Resources Enable Sustainable Solutions and Acknowledgement
Our Vision
RENEWABLE CHEMICALS
IN 30 MINUTES
NOVOZYMES PRESENTATION 18 8/6/2012
Our Technologies
Selected Examples
Our Strategy and Business model
Novozymes Vision is to deliver Bio-Innovations in the coming Biobased Society We will deliver biotech solutions from renewable feedstock to consumer & industrial markets
NOVOZYMES PRESENTATION 19
20
Increasing support from scientific groups supporting governments
Bioeconomy Council Germany
US Academy of Sciences
OECD
Increasing support from NGO s
WWF
Sustainability drives Industrial Biotechnology
“Thus we face the consequences of burning of high sulfur coal,
depletion of petroleum reserves for transportation, and excess CO2 being produced as stored
hydrocarbon reserves are depleted.
…Sustainable, efficient and clean sources of energy are crucial to reducing our dependence on and
the depletion of fossil fuels. The New Biology can help propel
the sustainable production of biofuels”
Renewable Chemicals: from tech push to market pull !
NOVOZYMES PRESENTATION
21
8/6/2012
Illustrative examples
22
The Biorefinery concept
NOVOZYMES PRESENTATION
23
http://www.mongabay.com/images/commodities/charts/crude_oil.html
NOVOZYMES PRESENTATION 8/6/2012
But in the end it s all about cost, cost, costs…
2000-2010:
Strong increase of crude oil prices…
…and supply chains security: unseen volatility
24 NOVOZYMES PRESENTATION 8/6/2012
http://www.wtrg.com/daily/crudeoilprice.html
Level of optim
ization
Petroleum-based chemistry
Optimization:
• Scale
• Energy efficiency
• Fixed cost reduction
• Improved maintenance
• Sourcing/supply chains
• Value engineering
• Plant reliability
• On-stream time
• …
Foundation Development Expansion Diversification Maturity
Traditional Chemicals Come from an Optimized Industry
Time
25
Level of optim
ization
Time
Petroleum-based chemistry
…while Renewable Chemicals are in their Infancy…
Challenge
• Renewable chemicals have to compete on price and performance
• No subsidies
• New infrastructure
Renewable chemicals industry
26
To make it happen:
NOVOZYMES PRESENTATION 27 8/6/2012
Technology – key questions:
can we commercialise i.e. earn money with the technology we develop?
NOT: ”can we make it”
BUT: ”can we make it cost-competitive to current technology”
Which R&D success factors do we need to reach like…
Yields: g product/g glucose….no CO2 production
Titres: g product/litre broth
Productivity: g/l/hr
Side products
Which feedstocks
Recovery methods
Chemical transformation
Robustness of process – demo!
LCA
Cost of production plants – CapEx
On-par or better with current technology
Selection:
Many “interesting” molecules don´t make it on the short list
Novozymes’ Entry Technology: The Sugar Platform
• Cellulosic bioethanol drives our technology development
Bio- ethanol
Yeast Fermentation
Pre- treatment
process
Enzyme process
Waste biomass
Cellulose
Starch Enzyme process
Ferm
enta
ble
sugars
28
Platform Technology: enables production of a broad spectrum of products
Allows production of
fuel ethanol from
biomass @ USD 2.00 to USD 2.50 per gallon, depending on process
Feb 2010: Novozymes Launches Cellic® CTec2
29
M&G Breaks Ground for First Commercial Plant
30
• Novozymes’ partner M&G begins construction of the world’s first commercial-scale cellulosic ethanol plant
• The plant will produce 13 million gallons of ethanol per year from biomass, and is competitive with 60-70 USD/barrel oil
• The biofuels plant will be ready in 2012, and is located in Crescentino, Northern Italy
Pictures courtesy of M&G
Novozymes’ Entry Technology: The Sugar Platform
• Cellulosic bioethanol drives our technology development
Bio- ethanol
Yeast Fermentation
Pre- treatment
process
Enzyme process
Waste biomass
Cellulose
Starch Enzyme process
Ferm
enta
ble
sugars
31
Platform Technology: enables production of a broad spectrum of products
Bio- ethanol
Yeast Fermentation
Production of Renewable Chemicals – a Good Fit to our Technology and our Vision
Ferm
enta
ble
sugars
32
Bio- ethanol
Yeast Fermentation
Ferm
enta
ble
sugars
Renewable chemicals
33
Production of Renewable Chemicals – a Good Fit to our Technology and our Vision
Bio- ethanol
Yeast Fermentation
Ferm
enta
ble
sugars
Heterogenous catalysis
Renewable chemicals
Renewable chemicals
34
Production of Renewable Chemicals – a Good Fit to our Technology and our Vision
Bio- ethanol
Yeast Fermentation
Partnering is essential for us
Novel engineered pathway
-- Novel
bioprocess
Ferm
enta
ble
sugars
Chemical Catalysis
Renewable chemicals
Renewable chemicals
Renewable chemicals
35
36
Novozymes renewable chemicals pipeline in more details
Renewable Chemicals Platform
Propanol
3-HP
sugars
Not disclosed
Fructose Non-exclusive
Bio-Polypropylene
Bio-Acrylic acid
Glycols
Not disclosed
HMF/FDCA
Case 1: Bioacrylic acid, market
Existing market = USD 11 billion
Annual production = 3.1 million tons (2005)
Annual growth = 4%
Serving many different applications, including high-end industries such as diapers, hygiene products, flocculants, coatings, dispersions, and adhesives
3-HPA Acrylic acid
Super absorbers
Fibers
Coatings, adhesives
Polymers
37 06-08-2012
Case 1: Bioacrylic acid, market
Many applications
Many players
A “robust” business case
3-HPA Acrylic acid
Super absorbers
Fibers
Coatings, adhesives
Polymers
38 06-08-2012
Case 1: Bioacrylic acid, partnership with Cargill
Current petro route for production of acrylic acid
Acrylic acid Propylene
Propylene 2000: USD 430/metric ton Propylene 2008: USD 1,450/metric ton
39
Enzymatic process
New fermentation-enabled route to acrylic acid
Engineered pathway
Chemical downstream
process
Starch, Biomass
Glucose 3-Hydroxy-
propionic acid Bioacrylic
acid
06-08-2012
Case 1: Bioacrylic acid, upsides
3-HP is a new building block
40 06-08-2012
New applications
3-HPA
Example: Green Polypropylene Project with Braskem
Goal: Development of large-scale production of polypropylene from sugarcane
Use: Plastic used in, e.g. water bottles, washing machines, furniture, and car bumpers
Market: ~ USD 66bn market with annual growth rate of 4%
Partner: Largest petrochemical company in Latin America. Currently building green polyethylene plant in Brazil
Timing: Initial development for at least five years
41
Our business model – partnerships and royalties
• No one is fully integrated across the upcoming value chain
• Novozymes will not become a chemical company, but will create business
via partnering
• License approach, asset light
• Focus on gradual replacement of existing chemicals
New markets for grain processors
Sustainable supply for chemical companies
Enabler via Biosolutions
Combination of different technologies Combination of different technologies
Selected other examples in biofuels and renewable chemicals: ”untraditional” projects and partnerships
DuPont/BP: Butanol
Danisco/Goodyear: Isoprene
Amyris Biotechnologies: Isoprene, alternative fuel
LS-9: alternative fuels
Roquette/DSM: Bio-Succinic
Metabolics Explorer: L-Methionine, 1,2-Propanediol,
1,3-Propanediol, N-Butanol, Glycolic acid
Genomatica: 1,4-Butanediol
43 NOVOZYMES PRESENTATION – Special Chem Conference, Nov 2010
Enzymatic modifications relevant for the chemical industry – single enzymes!
NOVOZYMES PRESENTATION 8/6/2012 44
• Application of lipases & cutinases in aqueous or non-aqueous environment. Can be enantioselective. Also used for polyester synthesis.
Esterification and ester hydrolysis
• Hydrolysis to amide or carboxylic acid under mild conditions. Can be enantioselective.
Nitrile hydrolysis
• Polymerization of aromatic structures by hydrogen abstraction using oxidoreductases
Free-radical polymerization
• Oxidation of aromatic side chains using oxidoreductases Side chain oxidation
• Hydroxylation of aromatic or aliphatic carbon using oxidoreductases. Can be enantioselective
Hydroxylation
• Epoxidation of double bonds using lipases or oxidoreductases Epoxidation
Replacing Petrochemicals with Enzymes: Detergent Example
Cost stability Low temperature wash & other sustainability claims Compaction
• Proteins, e.g. blood, grass, meat, egg Protease
• Oil / greasy body and food stains, butter, sweat Lipase
• Starch-based soils, e.g. ice cream, gravy, potatoes Amylase
• General cleaning, especially dust and mud Cellulase
• Guar gum-based stains, e.g. ice cream, soup, makeup
Mannanase
• Juice-based stains Pectinase
Our unique synergistic enzyme portfolio.. ..can replace chemicals, and enables..
45
Conclusions:
46
• Renewable Chemicals are there (PLA) - despite all challenges • Need for radical Innovation for the next generation
• Market pull - Consumer ask for it
• Untraditional partnerships - combine
biology & chemistry
• new growth markets for grain
processors, biotech companies and
consumer goods companies
• In tune with the environment
