2013 peterocemical ihs

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Bio-Based Paraxylene for PET

Bringing BioBased Paraxylene Through the PET Supply Chain with Key Partnerships

Kieran Furlong, Director Chemicals Business Development

4th Annual Infocast Biobased Chemicals Summit, January 29th 2013

© Virent 2012



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© Virent 2012 3

Wall Street Journal, May 15th 2012



© Virent 2012 4

Wall Street Journal, May 15th 2012



Virent at a GlanceThe global leader in catalyt ic b ioref inery research, development, and commercia l izat ion

Employees

Technology Infrastructure

120 Employees

25x Development Pilot Plants

1x 10,000 gal/yr Demo Plant

Partners & Investors

Converting plant-based feedstocks

to fuels and chemicals

© Virent 2012 5



Global Petrochemical Market

Ethylene

Assoc. gases / Naphta

127

Mt/a

Estimates of world demand , 2011

Sources: IHS Chemical, ICIS.

Propylene Butadiene* Benzene Toluene Xylene

Olefins Aromatics

Crude Oil

79

Mt/a

11Mt/a

41

Mt/a 29

Mt/a

43

Mt/a

Natural Gas Liquids

• Approximately 330M tonnes in 2011

• Market value ~ US$440B

• BTX Market value ~ US$130B

Virent focusing on BTX

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Global Petrochemical Market

Benzene Toluene Xylene

Aromatics

Nylon PolyesterPolyurethanePhenolicsPolycarbonatePolystyrene

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Same polym ers, same performance, same equipm ent



BTX Aromatic Product Tree

BTX Complex

Ortho-Xylene Meta-Xylene Para-Xylene Toluene Benzene

• Plasticizers

• Polyethylene

Naphthalate (PEN)

• Purified Isophthalic

Acid (PIA)

• Polyethylene

Terephtlate (PET)

• Purified Terephtalic Acid

(PTA)

• Polyehtylene

Terephthatlae (PET)

• Toluene Diisocyanate (TDI)

• Polyurethate Foams

• TNT

• Polycarbonates

• Phenolic Resins

• Nylon 6

• Polystyrenes

8© Virent 2012



PX World Market

2010 2020

$39B

30Mt 57Mt

Worldmarket

size(2010 USD)

Worldconsumption(million metric

tons)

$116B

Sources: PCI; EIA.

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Global PET Usage and GrowthWorld PET (Film, Fiber and Resin) Production Polyester Polymer Usage by Type - 2011

Data compiled from PCI. Data compiled from CMAI World Petrochemical Conference - 2011.

6.5%/yr

6.8%/yr

5.8%/yr

CAGR

Growth

Primary use of PX is conversion to PTA and then PET

Global PET is projected to double from 2010 to 2020.

Fiber is the main use of PET

Majority of PET and PX production is in the Asia/Pacific region

© Virent 2012 10



Global Benzene Uses and Growth2011

© Virent 2012 11

Benzene

41.5 M Metric Tons

3.3%/yr

Ethylbenzene

51%

3.2%/yr

Polystyrene

Cumene

20%

3.75%/yr

Polycarbonates

Phenolic Resins

Cylcohexane

10%

2.1%/yr

Nylon 6

Nitrobenzene

7%

4.5%/yr

Polyurethanes

Alkyl Benzene

3%

2%/yr

LAB/LAS

Data adapted from IHS World Petrochemical Conference –

2012 (Moorhouse).Growth Rates are from 2011 to 2016.

Major Benzene derivatives



Benzene Global Supply and Market Considerations

Shifting towards lighter feedstocks in crackers will produce less benzene

Increased ethanol blending may reduce need for aromatic octane boosters in gasoline

Decrease in US gasoline demand lowers need for reformate

MSAT 2 decreases amount of benzene that can be present in gasoline

Data adapted from IHS World Petrochemical Conference – 2012 (Moorhouse).

Sources of Benzene Produc t ion – 2011 (IHS)

0.00

0.05

0.10

0.15

0.20

0.25

Ethane Propane Butane LightNaphtha

HeavyNaphtha

Gasoil

Lighter Feedstocks

Pygas

39%

Reformate

36%

Coke

Oven

5%

PX Co-

Product16%

HDA,

4%

Benzene (t) pro duc ed per uni t of ethy lene (t)

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Why are customers interested?

© Virent 2012 13

Diversifying supply & tackling volatility Consumer interest and demands

New PTA capacity not matched by PXSupply as co-product diminishing



BioForming® Technology

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Virent’s BioForming® Technology

Fast and Robust Inorganic Catalysts

Moderate Conditions

Industry Proven Scalability

Energy Efficient Exothermic

Low Energy Separation

Low Carbon Footprint

Premium Drop-in Products Tunable Platform

Infrastructure Compatible

Fuels and Chemicals

Feedstock Flexible Conventional Sugars

Non-Food Sugars

Leading catalytic route to renewable hydrocarbon fuels and chemicals.

Virent’s “Eagle” Demonstration Plant - Madison, WI

© Virent 2012 15

>50 issued/allowed patents>150 pending patent applications



The BioForming® Concept

Corn

Slide 16

Reformate

Distillate

APR/HDO

ModifiedZSM-5

Condensation+

Hydrotreating

AromaticsGasoline

Jet FuelDiesel

Biomass

Sugar Cane

Corn

© Virent 2012 16

Biob ased feedstoc ks to direct replacement produc ts

APR prepares biomass derived feedstocks for optimal

conversion into hydrocarbons Feedstocks to APR include any water soluble carbohydrate Option for natural gas co-processing (HDO) can improve

yields and economics Demonstrated process yields are > 80% of theoretical



The BioForming® Concept

Corn

Slide 17

APR/HDO

ModifiedZSM-5

Condensation+

Hydrotreating

Biomass

Sugar Cane

Corn

© Virent 2012 17

Biob ased feedstoc ks to direct replacement produc ts

Intermediates

Alcohols

Ketones

Aldehydes

Furans

Polyols

Potential

products for use

as solvents,

monomers, etc



Partnership

Slide 18© Virent 2012 18



PET Supply Chain

19

Crude

Oil

Reformate

BTX PX PTA

PET resin Preform Bottle

Cracked

Naphtha

Biomass Reformate BTX PX

Virent

PET fiber Textile Clothing

BioFormPX

Brand

Supply chain innovation

Opportunity to vertically integrate all the way back to raw feedstock. Reduce exposure to crude oil volatility, increase security of supply.

Address sustainability requirements of the consumer and regulator.

No impact to recycling infrastructure.

Three integration points enable flexible entry to existing supply chain

© Virent 2012

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Coca-Cola & Virent Partnership

2011 - Virent and The Coca-Cola Company sign agreements to

develop and supply PX for 100% renewable, recyclablePlantBottle™

Multi-million dollar, multi-year agreements with Virent

Joint Development Agreement

Supply Agreement

Supporting Virent’s plans for first chemicals plant

© Virent 2012 20



100% Bio-based Paraxylene

Virent's plant-based paraxylene

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Summary

Growing demand for bio-based aromatics due to

Consumer demands and desire for differentiation

Shifts in petrochemical supply dynamics and fears

Tackling volatility with a portfolio approach

Partnership value to start-ups include

Economic de-risking of new projects Funding

Leverage in existing supply chain

Defining which criteria are important (e.g. sustainability)

Co-location (with manufacturing partners)

Technology and product validation

© Virent 2012 22



Virent converts plant-based sugars into 100% renewable chemicals and fuels. Our bio-based products are identical to those produced from petroleum — direct replacements

that utilize today’s manufacturing, storage and supply chain infrastructure. If you are

interested in strategic partnering opportunities please contact:

Kieran Furlong, Director of Chemicals Business Development

[email protected]

Thank you.

© Virent 2012

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2013 peterocemical ihs