BIOREFINING TODAY AND TOMORROW: Its role in accelerating the transition towards low carbon energy systems

Thomas Schrøder Vice President, Biorefining, Novozymes

12 March, 2019

SITUATION

of all CO2 equivalent transport will come from HEAVY TRANSPORTATION….

And it’s growing.

50%

FACT

SITUATION

split in 2050 for EVs vs ICEs

50/50

Some of the most aggressive roll-out scenarios indicate a

FACT

Even in the most aggressive estimates of electrification, most cars will have a combustion engine for the next 30 years

SITUATION

RES vs. fossil

Electricity vs. biofuels

by 2060 in global transportation

50/50 IEA predicts

FACT

The world, will need both green hydrocarbons and green electrons for decades to come

The biorefining platform addresses three key dilemmas

The three pillars of the biorefining vision

COMPLEMENTARITY

IN ENERGY SUPPLY

AND DEMAND

CARBON CAPTURE VIABILITY

ADAPTABILITY AND

SCALABILITY

CO2 E-fuel synthesis

Combustibles and/or biogas

The grid

Liquid and gaseous fuels

Solarpower

Wind Windpower

Biomass

Sun

CHP

Biorefinery

Carbon storage

Materials and feed

Biorefining is a platform that will develop and adapt over time

Fuels

Electricity

Carbon capture and storage

Production cost of standard

fuel equivalent

Time

Feed / food / chemicals / materials

290 bn liters of bioethanol by 2060 + CCS

=

240 mio metric tons of CO2

removed from the atmosphere

i.e. 9% of total CO2 removal in the IEA 2DS

BIOGAS

BIODIESEL

E-FUELS

BIOETHANOL

Negative emission potential

Novozymes’ history in the cellulosic ethanol industry & status of the industry

More than 18 years of large scale R&D and business development to become the leader in the 2G biotech space

2001 2005 2009 2013 2015

Important launches and uses of our

enzymes

Development stages of process technology Foundation Pilot stage Demo stage

Commercial startup stage

Optimization stage

Launch of Cellic®

CTec for the first 2G

ethanol demonstration

plants

Startup of the first full

scale commercial 2G

ethanol plants using

Novozymes’ Cellic® Ctec 3

technology

Biomass conversion

pilot plants worldwide

testing Novozymes

enzymes

Novozymes starts a

large scale R&D effort

for the cellulosic

ethanol market

Launch of products

customized to partners’

process and feedstock

15X Enzyme cost

improvements

Current Partners in India (>10 years of work with Praj)

Key value

lever

Phase 1 (2012-22)

Technology proof

(N=1-8 plants

in industry)

Phase 2 (2019-2026)

Supply and demand proof

(N=8-20)

Phase 3 (2024-…)

Green valley

(N=20+)

Phase 4

Maturity

• Several “first-of-its-

kind” advanced

ethanol process

technologies proven at

commercial scale

• Several first movers replicating their

technology with competitive

economics

• Strong LT policies in place

• Large scale roll out of advanced

ethanol technology with full project

bankability

• Best in class

efficiency

Like any new industry, the Biomass industry will go through different phases

To

da

y

Global leader in industrial enzymes

Novozymes in India

650+ employees

More than 30 years of presence

Biggest enzyme supplier

New facility near Mumbai

Jammu and

Kashmir

Himachal Pradesh

Punjab Chandigarh

Uttarakhand

Haryana Delhi

Rajasthan Uttar Pradesh

Bihar

Sikkim Arunachal Pradesh

Nagaland

Manipur

Mizoram Tripura

Meghalaya

Assam

West

Bengal

Jharkhand

Orissa

Chhattisgarh

Madhya Pradesh Gujarat

Maharashtra

Andhra

Pradesh

Karnataka

Kerala Tamil

Nadu

Goa

Bangladesh satellite office

New Delhi satellite office

Mumbai satellite office

New Facility near Mumbai

Bangalore corporate office

All 2G ethanol plants globally supplied by Novozymes

Novozymes

supply enzymes

…contributions to the 2G industry in India:

1. Most potent enzymes in cellulosic space (developed in past 20 years)

2. Reliable, fully demonstrated multi-hub supply model globally

3. Ready to build specific 2G enzyme facility for India

4. 2G Yeast available

5. Optimized with all technologies available globally

6. Active collaboration with Praj for past 10 years

7. Novozymes active in India for past 35 years

THANK YOU!