1. Bio-Based Chemical FeedstocksDoris de GuzmanTecnon OrbiChem Marketing Seminar at APIC 2013Taipei, 9 May 2013

2. APIC 2013BIO-BASEDCHEMICAL FEEDSTOCKS Discussion Topicso Definitiono Common Mythso Three Approaches to Bio-Based Materialso Recent Commercial Successeso New/Old Developmentso ConclusionsSource: Tecnon OrbiChem 3. Definitiono Bio-Based is defined as a product that has been made from abiological (living) or renewable source (i.e. corn, sugar cane,cellulosics, vegetable oils) Bio-Based Products use New Carbon vs OldAPIC 2013BIO-BASEDCHEMICAL FEEDSTOCKSSource: Tecnon OrbiChemCO2Biomass/Bio-OrganicsFossil Fuels106YearsPolymers,Chemicals &FuelsBio-Chemical Processes(months to a fewyears) 4. Source: US Department of Energy, Tecnon OrbiChemAPIC 2013BIO-BASEDCHEMICAL FEEDSTOCKSBio-BasedSyngasSUGARSGlucoseFructoseXyloseArabinoseLactoseSucroseStarchC2C3Ethanol Ethylene Glycol Acetic AcidNaturalOils/FatsGlycerol Lactic Acid 3-Hydroxy Propionic AcidC4 1,4 Diacids (Succinic,Fumaric, Malic Acid)Butanol 1,4 ButanediolC5 Furfural Levulinic Acid Itaconic Acid XylitolC6 Adipic Acid Glucaric Acid LysineSorbitol 2,5 Furan Dicarboxylic AcidFarnesene PolysaccharidesPolyhydroxyalkanoate (PHA)Carbon DioxideCarbon Monoxide 5. Bio-based materials always have a lower carbonfootprint Bio-based chemicals and polymers are a recentdevelopment Bio-based materials compete with food supplyand consume needed resources Bio-based products will require lengthydevelopment Consumers will accept lower performance andsignificantly higher prices for Bio-based productsAPIC 2013COMMON MYTHSSource: Tecnon OrbiChem 6. Source: Tecnon OrbiChem1. Build on Naturally Occurring Materials Rayon fibre, Cellophane film from woodpulp, done for over 100 years. Usingeucalyptus trees, the yield per hectare is 10times that of cotton Glycerin and fatty acids from vegetable oils Polylactic acid (PLA) resins from lactic acid Cellulose acetate, nitrate from cellulose2. Develop Bio-Based Routes to Existing Intermediates Bio-based processes to make MEG, paraxylene, adipic acid, butadiene,caprolactam etc. are being developed; they are in varying stages ofadvancement - drop in chemicals3. Develop New Polymers/Fibres Completely new bio-based polymer products that demonstrate similar orimproved properties compared to existing commercial oil-base products.APIC 2013THREE APPROACHES TO BIO-BASEDMATERIALS 7. Source: Tecnon OrbiChem 1,3 PDOo DuPont Tate & Lyle ferments corn sugar toproduce 1,3 PDO in Loudon, Tenn.o Reports of glycerol-based PDO in China BUTANOLo Corn-based n-butanol already produced inChina - Cathay Industrial Biotech, LaiheRockley, small firmso Gevo started corn-based isobutanolshipments this year SUCCINIC ACIDo Reverdia and Myriant plants running,BioAmber and Succinity to follow early 2014 GLYCOLSo ADM, Oleon producing PG using glycerol (andsorbitol for ADM) as feedstock. HK-basedGlobal Bio-Chem produces PG using cornglucoseo Greencol Taiwan, India Glycols producing bio-MEG from sugarcane-based ethanolAPIC 2013COMMERCIAL SUCCESS (INTERMEDIATES) EPICHLOROHYDRINo Vinythai produces glycerol-based ECH inThailand, plans another 100KTY facility inChinao Reports of Chinese plans for bio-ECH FARNESENEo Start of Amyris 50m liters/year sugarcane-based fermentation plant in Brazil this yearo Building block for lubricants, base oil,isoprene, squalene, F&F ingredients POLYAMIDESo Brand owners such as Nike, Puma, Gucci areusing castor oil-based PA10 and PA11o Bio-based PA producers include Arkema,Evonik, BASF, Solvay, DSM, Radici Group,DuPont, EMS-Chemie 8. APIC 2013COMMERCIAL SUCCESS (BIOPOLYMER)Sorona PTT PlantBottle PET Ingeo PLAImGreen PE Mirel PHABiOH PolyolSource: Tecnon OrbiChem 9. APIC 2013COMMERCIAL SUCCESS (BIOPOLYMERS)Global BioPlastics Production Capacity 2011Source: European Bioplastics, Institute for Bioplastics and Biocomposites (Oct. 2012) 10. Source: Tecnon OrbiChem BENZENE, TOLUENE, XYLENE (BTX)o Anellotechs Bio-BTX, Virents BioFormPXo Paraxylene from Gevos isobutanol ADIPIC ACIDo Verdezyne, Rennovia, DSM, Genomatica, BioAmber ACRYLIC ACIDo OPX Biotechnologies/Dow Chemical, Myriant, Novozyme/Cargill/BASF,ADM, Novomer, Metabolix BUTANEDIOLo Genomatica, Myriant, BioAmber, LanzaTech RUBBERFEEDSTOCK BUTADIENE, ISOPRENE, ISOBUTENEo Butadiene Amyris/Kuraray, LanzaTech/Invista, Versalis/Genomatica,Global Bioenergies/Synthos, Cobalt Biotechnologieso Isoprene Amyris/Michelin, Ajinomoto/Bridgestone, DuPont/Goodyear,Aemetis, Glycos Biotechnologieso Isobutylene - Global Bioenergies/LanzaTech, Gevo/LanxessAPIC 2013COMING SOON (DROP-IN INTERMEDIATES) 11. Source: Tecnon OrbiChemAPIC 2013UNDERDEVELOPMENT (NEWFEEDSTOCK) 2,5 FDCA (Furan Dicarboxylic Acid)o FDCA + MEG = Polyethylene Furanoate (PEF) as alternative to PETo Nylons and Aramids using adipic acid can be reformulated with FDCA Carbon Monoxide/Carbon Dioxideo CO2 + Propylene Oxide = Polypropylene carbonate (PPC)o CO2 + Ethylene Oxide = Polyethylene carbonate (PEC)o CO2 Polyether Polycarbonate Polyols (PPP)o CO + Ethylene Oxide = Propiolactoneo CO/CO2 C2-C5 products (via GTL and fermentation) Levulinic Acido LA -acetacrylic acid = New acrylate polymerso LA Diphenolic acid = Replacement for Bisphenol-Ao LA 1,4-pentanediol = New polyesterso LAderived lactones for solvents application 12. Companies will come under increasing pressure todemonstrate that they are improving their environmentalawareness, by reducing their carbon footprint and raising thesustainability of their operations Many companies around the world are working to developbio-based monomers, using both biological and chemicalmethods of converting natural raw materials Quickest commercialisation and largest opportunities willlikely involve drop in monomers/polymers that takeadvantage of existing industry infrastructure Commercial success has often involved partnering asdifferent technologies and skill sets are needed to cometogetherSource: Tecnon OrbiChemAPIC 2013CONCLUSIONS 13. Companies introducing bio-based monomers willultimately have to demonstrate:o That their operations do not reduce the food supplyo That a direct replacement (drop in) monomer costs thesame as its synthetic equivalent -- or maybe 10-20%more if it allows the end user to boast of his environmentalfriendlinesso That a new monomer gives rise to a new polymer that hasas good or better performance than existing polymers Existing polymers/fibres (PET, PA6,6 etc) made with bio-based monomers will be greatly welcomed by the textileand packaging industry, provided there is no loss ofperformance due to impuritiesSource: Tecnon OrbiChemAPIC 2013CONCLUSIONS 14. ..your source of expertchemical industry knowledge