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Biobased Adipic Acid and Feedstock Freedom
Presented to the 2010 World Congress on Industrial Biotechnology
Washington DC, 30 June 2010
green chemistry by design
2
Green Chemistry by Design
MOTIVATION Reduce our dependency on petroleum and minimize our environmental footprint
CHALLENGEExploit chemistry and biology to achieve breakthroughs in how we manufacture everyday products from renewable resources
GOAL Develop economical fermentation processes for producing renewable fuels and chemicals
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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Technology & Business Snapshot
• Deep expertise in synthetic biology–
In-silico
pathway modeling & protein design algorithms
–
Metabolic engineering, strain and fermentation process development
• IP Estate
that protects our innovative technology
• Three Organisms in development:–
Improving ethanol productivity with “Yield Booster”
–
Fermenting pentose sugars from lignocellulosic biomass to ethanol
–
Producing adipic acid from multiple feedstocks
• Business strategy involves –
Development partnerships to accelerate time to market
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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Invista, 21%
Rhodia, 18%
Ascend, 13%BASF, 11%
Liaoyang Petrochemical,
6%
Radici, 5%
Bohui, 5%
Hongye, 5%
Asahi Kasei, 4%
Others, 13%
Adipic Acid: Compelling Biobased Chemical
Economic Opportunity
U.S. $2,375/te ($1.08/lb)
Gross Margin = 30-40%Biobased offers alternative to
Benzene price swings
“Without investment in innovation, branding and downstream pull it is unlikely that adipic polymer can sustain the premium it has historically enjoyed”
(PCI, 2010)
Large Growing Market
4.8 billion lb (2009)4.3% CAGR
Strong growth for light weight, temperature stable
plastics
Strong Market Pull
Green pull in automotive, textiles, carpets and
coatingsHigh market awareness of biobased developments
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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Future Need for Adipic Acid
Source: PCI
New production facilities needed in
2016
Opportunity to demonstrate and
entrench biobased production processes
while demand recovers
SpeculativeCapacity (ktes)
Existing / PlannedCapacity (ktes)
Demand (ktes)
Global Adipic Acid Supply / Demand Balance
0
500
1000
1500
2000
2500
3000
3500
4000
1990
1993
1996
1999
2002
2005
2008
2011
2014
2017
2020
Adipic lost 5 yrs demand
Speculative Capacity (ktes)
Existing / Planned Capacity (ktes)
Demand (ktes)
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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Competitive Yeast Production Platform
Starch
Biomass
OilsSucrose
Platform Improvements
C6
Engineering a novel glycolytic pathway for higher yield from hexose sugars
C5
Engineering a novel xylose isomerase enzyme for utilization of pentose sugars from biomass
Robust Yeast Platform• Robust strain with performance
attributes highly suited to industrial scale fermentation
• Combinatorial Pathway Engineering for rapid strain development
Adipic Acid
Feedstock Flexibility
• Engineering a proprietary metabolic pathway with sugars and oils as feed stocks
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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Platform Improvement Demo for Ethanol
Ethanol Development Partnership with Lallemand
Ethanol Technology
Starch
Cane
Sucrose
EtOH2.915 gal/bu
Increased Margin
$10.6 MMCapacity107 MM gal/yr
$0.098/gal
Dry Mill –
Base
Capacity 100 MM gal/yr
Capital $1.05/gal
Corn $3.68/bu
EtOH Yield 2.75 gal/bu
Ethanol $2.03/gal
Laboratory results have shown a 10% increase in ethanol yield and 30% increase in productivity
Laboratory results have shown a 10% increase in ethanol yield and 30% increase in productivity
CARLSBAD, CA. and MILWAUKEE, WI. —
April 7, 2010
–
Verdezyne, Inc., an industrial biotechnology company, and Lallemand Ethanol Technology, a global provider of yeast to the fuel ethanol industry, today announced they have
signed an agreement to develop and commercialize a genetically enhanced high-yield ethanol producing yeast.
C6Novel Glycolytic Pathway in YeastHigher Yields and
Specific Productivity from Hexose Sugars
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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Demonstration of Adipic from Renewable Oils
• Engineered a yeast that selectively produces adipic acid from mixed plant-based oil feedstocks
Formula Name PercentC6:0 Caproic 0.5C8:0 Caprylic 7.8C10:0 Capric 6.7C12:0 Lauric 47.5C14:0 Myristic 18.1C16:0 Palmitic 8.8C18:0 Stearic 2.6C20:0 Arachidic 0.1C18:1 Oleic 6.2C18:2 Linoleic 1.6
Fatty Acid Profile of Coconut Oil
C14 A
cidC12
Acid
C10 A
cidC8 A
cidC6 A
cidC14
Diac
idC12
Diac
idC10
Diac
idC8 D
iacid
ADIPIC A
CID
0102030405060708090
100
Perc
ent C
ompo
sitio
n
Acid/Diacid Profile Produced from Coconut Oil
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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Diversifying the Raw Material Base
• Oil / Naptha
/ Benzene relationship squeezes adipic acid margins
• Adipic acid producers carry the feedstock risk–
product demand does not move raw material prices
• Raw material prices are rising again …
A biobased process utilizing renewable sugars and oils is free from this volatility
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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Fermentation Process has less Capital Risk
• A new large scale chemical plant built today would not reach capacity for another 8 years.
• Fermentation facility provides a larger economic advantage at smaller scale
• A smaller scale fermentation plant could be built for a fraction of the volume risk
Smaller scale fermentation plants can be distributed regionally based on different feedstocks
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Cost Advantaged Adipic Acid
“There is a huge growth potential for bio-based adipic acid and other products, as long as it is cost competitive.”
~ Adell
Plastics
Petrochemical ADA cost will range between $0.71-0.93/lb if petroleum exceeds $100/bbl
Cost Advantage 19% 32%
Comparative Economics Cash Cost of Manufacturing
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Chemical Oxidation ofCyclohexane
Fermentation w/Soapstock
Fermentation w/Sucrose
$/lb
adi
pic
acid
OperatingUtilitiesRaw Materials
current process
Shut down economics apply if cash cost advantage > 15%
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A Sustainability Advantage
Based on Cradle-to-gate analysis in The Brew Project, adjusted for Verdezyne fermentation assumptions
“TPU materials are not currently green, we are interested in renewable
alternatives.”
~
Nike
FootwearIndustry is listening to consumer aspiration for renewable products
“The industry wants biobased adipic to increase sustainable plastic use in cars.”
~ DuPont Engineering Polymers
AutomotiveIndustry is looking to light-weight plastics to improve fuel efficiency
Biobased Adipic Acid (ADA) offers significant GHG reduction compared to traditional petrochemical production
GHG Reduction Corn Sugar
Cane Paraffin
t CO2eq/t ADA 2.2 4.2 0.56
Carbon credits could further reduce the cost of biobased adipic acid by 14% (at $30/t CO2)
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Green Differentiation Creates Market Pull
Carpet
Industrial
Plasticizers
Textile
A quarter
of US adults prefer eco-friendly products & are more loyal towards socially responsible companies –
2009 Ward’s Auto Interior Conference
Demand for sustainable carpet is increasing, because sustainability is now regarded as important –
In
Out Space
ApplicationsApplications ConsumersConsumers
When consumers have the choice, they tend to want to make the greener choice
-
Timberland
Adipic Acid
11%
10%
7%
25%
26%Polyurethane
10%
Engineered Plastics
Retailers in particular are pushing sustainability requirements back down their global supply chains
-
Sustainable Clothing Roadmap Initiative
OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED
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