Furanics: Avantium’s next generation biofuels and bioplastics

Tom van Aken Chief Executive OfficerAvantium TechnologiesAmsterdam, the Netherlands

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Avantium’s Profile

• Spin-off from Royal Dutch Shell in 2000• Proven expertise in catalysis and crystallization research & technology• Strong IP position (>50 patent families)• Proven track record in the energy, chemical and pharmaceutical industries• Seasoned management team

From 1 reactor in the conventional way… …to 64 parallel reactors in the Avantium way

Technology company set up to develop new products and processes faster,

more cost effective and with a superior rate of success

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Avantium key data

• Revenues 2007: € 15 million (expectation for 2008: 25% growth)• Profitable and cash flow positive Services & Tools business• 135 employees; 5,200 m2 of high-tech laboratories and offices in Amsterdam, the Netherlands

• Avantium successfully raised € 18 million in October 2008

• Strong Investor base:

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Strategy

Advanced high-throughput R&D

Services & Tools

Product development

programsBiofuels program

Pharmaceutical program

• Advance the product development programs to commercial viability

• Attract value-adding partners for final development and commercialization

• Continue to invest in further strengthening the high-throughput R&D technology

• Continue to expand the profitable Services & Tools business

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A Proven Approach

Avantium’s track record demonstrates the value of its technology and expertise• Multi-year, strategic partnerships with BP, Shell and Sasol• Over 70 energy & chemicals and pharmaceutical customers• Global customer base, of which 35% is a Fortune 500 company• High level of repeat business and customer loyalty• Benefit from the industry’s need for improved and accelerated product and process development

PharmaceuticalEnergy & Chemicals

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Furanics: Avantium’s next generationBiofuels

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Driving towards a biobased economy

Global need for sustainable energy and material solutions:- Recognition of correlation between green house gas emissions and global warming - Increasing consumer preference for green and energy efficient products- Governments mandate higher usage of alternative energy

Increasing concern in the Western world about dependency on oil imports:- National oil companies continue to strengthen their grip on worldwide oil and gas reserves - Demand of China/India have long-term effect on oil prices- Price volatility of oil is of major concern to stable growth of the world economy

Long-term perspective of energy markets has not changed by the recent economic turmoil.

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1st generation technology

Fuel

Biodiesel

Plant

Transesterfication

Crops

Cellulose

Oil

Vegetable oil

Feedstock Conversion Products

Limited supply

Ecological impact

Expensive

↓

Dependent on subsidies

Poor fuel properties:

Cold flow properties

Acidic

Blending

Oil

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1st generation technology

Fuel

Bio-ethanol

Plant

Fermentation

Crops

Wheat/Corn

Sugar

Glucose

Feedstock Conversion Products

Conflict with food chain

Expensive process

Capital intensive plants

↓

Dependent on subsidies

Poor fuel properties:

Energy density

Corrosive

Blending

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2nd generation technology

Fuel

Cellulosic-ethanol

Plant

Fermentation

Crops

Cellulose

Sugar

Glucose

Feedstock Conversion Products

Conflict with food chain

Expensive process

Capital intensive plants

↓

Dependent on subsidies

Poor fuel properties:

Energy density

Corrosive

Blending

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Our next generation technology

Biofuel

FURANICS

Plant

Chemical/ catalytic

Crops

Cellulose

Carbohydrates

Feedstock Conversion Products

Conflict with food chain

Expensive process

Capital intensive plants

↓

Dependent on subsidies

Poor fuel properties:

Energy density

Corrosive

Blending

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Avantium Approach

Catalyst development engine

FEEDSTOCK PREPARE CATALYSTSHIGH-THROUGHPUT CATALYST TESTING

HIGH-THROUGPUT ANALYSISMODELLINGDISCOVERY OF NOVELCATALYSTS

Unlocking the potential of a new platform molecule: Furanics

Biofuels

1/ Diesel

2/ Jet fuel

3/ Gasoline

Bioplastics:

1/ Polyesters

2/ Polyamides

3/ Polyurethanes

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Breakthrough Results Furanics biofuels

Positive conclusions engine tests• Existing, unmodified diesel engine • Successfully tested various blends• Good blending properties• Environmental benefits:

– No sulfur– Significant decrease in small particulate

matter / soot

Note: Normal Volume is the volume at 1 atm and 0 °C

Experiment Volume Total particulate matter

Actual [m3/h]

Normal[Nm3/h]

Concentration[mg/Nm3]

Furanics blend (17%)

80 60 5.1

Conventional Diesel

80 60 6.1

Furanics: Attractive process economics and superior fuel properties:

• 30-50% lower production costs than ethanol (excl. subsidies and by-product credits)

• High energy density• Excellent fit with existing refineries and fuel

infrastructure

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Furanics: Avantium’s next generationBioplastics

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1st generation technology

Bioplastic

PLA

Plant

Fermentation

Sugar

Glucose

Feedstock Conversion Products

Expensive process

Capital intensive plants

Biodegradable

Poor heat resistance

Limited application areas

Polymerization

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Our next generation technology

Bioplastic

Furanics

Plant

Chemical/catalytic

Sugar

Glucose

Feedstock Conversion Products

Biodegradable

Poor heat resistance

Limited in application area’s

Polymerization

Expensive process

Capital intensive plants

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Furanics for Bioplastics

• Avantium targets multiple furanics-based plastics– Polyesters (such as PET)– Polyamides (such as nylon)

• Plastics based upon biomass instead of oil• Proven attractive product characteristics, including

heat resistance• Significant cost advantage vs oil based process:

Oil based polyesters:Oil

↓

Para-Xylene

↓

PTA monomer

Cost price: ~€ 730 / kmt

Bio-based polyesters:Sugar

↓

Furanics

↓

FDCA monomer

Cost price: ~€ 500 / kmt

Based on 350 kt factory; Q4 2008 raw material prices

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Avantium’s Pole Position

Value enhancing milestones

Superior products

Improved processes

• Furanics– Biofuels with superior fuel properties and environmental benefits– Bioplastics with attractive product characteristics

• Avantium has patented the use of furanics as a fuel and industrial production routes to Furanics (first 2 patent application published in Sep 2007)

• Significant cost advantages over 1st and 2nd generation technologies and potential to compete with oil-based products and processes

• 2009: Scale-up of Furanics process• 2009/2010: Extensive engine testing program of Furanics biofuels• 2009/2010: Application development of Furanics bioplastics• 2010: Pilot-plant production

Clear path to commercialization

• Strong industry interest in application of Furanics biofuels and bioplastics• Partnering strategy to expedite further development and commercialization

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