Transformational MSW Option Renewable Chemicals and n-Butanol

© Green Biologics Inc. 2013 Private and Confidential

Municipal Solid Waste Workshop - Emerging TechnologiesMarch 27, 2013

Transformational MSW Option Renewable Chemicals and n-Butanol

Contact:[email protected]

Tuesday, April 16, 13

© Green Biologics Inc. 2013 Private and Confidential © Green Biologics Inc. 2013 Private and Confidential

§ Smaller market size versus fuel but greater diversity

§ Wide range of collaborations/strategic partners

§ Fossil fuel feedstock driving up pricing

§ Infrastructure can readily accept drop-in replacements

§ Used for industrial, transportation, textiles, food safety, environment, communication, housing, recreation, health, pharma, and other applications

§ Drive towards sustainability and favorable LCA

Opportunity for Renewable Chemicals



Competency in Commercializing Renewable n-Butanol

§ Global team with proven commercial and technical expertise in delivery of ethanol, butanol, and industrial fermentations

§ Merger between Butylfuel™ and Green Biologics (2011), creating a global leader in production of renewable n-butanol by fermentation

§ Projects underway at pilot, demonstration and commercial scale

§ Advanced technology directed toward low cost production

§ Understanding of the chemical markets with focus on n-Butanol

§ Feedstock flexible with C6 & C5 conversion

§ Commercial demonstration campaign completed in China in 2012



Strategy

Mission: Leading Renewable n-Butanol Producer

Build production plants in key markets partnering with existing asset owners or chemical producers

–Leveraging existing assets (e.g. ethanol, sugar, pulp mills, sorted MSW supply)–Employing a capital-efficient, high-margin

operating model Focus development and commercialization on

low-cost and sustainable non food feedstocks Expand technological lead with microbial and

process advances–Leverages existing competitive advantage

and proven platform Develop partnerships with key customers (e.g.

branded products)

Plant investments – own and operate

– Joint venture – Industrial partner–Combined with technology

support contract Technology licensing–Technology provision and support–Royalties, technology support,

engineering–Long-term contracts

Business Model



Global Market Presence

Brazil

US ethanol retrofit/bolt-on(selection in progress)

India

Guangxi, China

Jiangsu, China

Jilin, China

Abingdon, EnglandHQ Office/Labs/PilotColumbus, OH

Pilot Plant/Lab

Richmond, VABus. Office

Demo Plant, IA(partner facility)



Transforming Established Technology

§ The Clostridia ABE process was developed in Britain in early 20th century by Chaim Weizmann, later the first president of Israel

§ Large and growing global industry until the 40s when oil prices dropped

§ Used commercially in Russia and South Africa until the 1980s

§ A well-understood and reliable commercial process

§ Petroleum-derived butanol became cheaper and production ceased

Fermenters in Toronto ABE plant, 1917Picture courtesy of City of Toronto archives

South African ABE plant, circa 1950



Commercial Programs Supported by Intellectual Property

Superior Microbes

BEST™Advanced

Fermentation

Gas recovery

control

Product recovery

Chemical mutagenesis

Genetic manipulation

barcode

Water recycle

StrainDevelopment

Process Development

Pre-treatment

Hydrolysis

Feedstock Hydrolysis

New Build

Retrofit

Design &Engineering

Culture Collection

§ Technology assets (microbial culture collection)§ Patents (core IP)§ Know how (methods/skills/expertise)

BEST™ 1000



Oppp

Existing TechnologyUnder Development

Fermentation & Solvent Recovery

Saccharification

Molasses

Wood

Corn stover

Glycerine

Sorted MSW

Corn Starch

Hemi-cellulose

Feedstocks Hydrolysis

Hydrolysis

Pre - treatment

Commercially Focused Technology: Flexible Bioprocessing

Products

Butanol

Ethanol

Acetone

High value chemicals C4 platform

Hydrogen

Butyric Acid

1-Butene

Advanced Fermentation

Advanced Solvent Recovery

BEST™

Proprietary seed system

H2hydrogen capture

Bagasse

Opportunity



Strategic Timeline

n-Butanol Acetone 1-Butene Butadiene C4 derivatives

Renewable ATJ fuels

Blend stock fuels New chemical

platforms

Strain collection Genetic engineering Microbial development Fermentation process

development Feedstock flexibility Product portfolio

License Agreements

MOUs / PSAs (off-take)License Agreements

Joint Ventures

2005 2012 2018

Chemicals & FuelsChemicals

TechnologyFoundation

Sugars, Starch, Molasses Cellulosics, Municipal Waste, Energy Crops Other

MOUs / PSAs (off-take)License Agreements

Joint Ventures



Competitive Advantage: Leader in C4 Renewables

Process engineering designs for “bolt on” & ethanol retrofit projects

MSW sort and conversion partnerships

Sugar/pulp mill bolt-on and retrofit

Enables high return, low capex solutions

Know-how from working across global customer base

Implementation Strategy

High value product Competitive cost

producer Capital efficient Drop-in chemical Technology

demonstration at commercial scale

Sustainable / favorable LCA

Positioning and Performance

Cellulosic feedstock pre-treatment & hydrolysis

Including both C5 and C6 sugars

Proven on wide range of cellulosic feedstocks (stover, bagasse, MSW, wood, pulp waste)

Feedstock Flexibility

Extensive microbial culture collection (>300 strains)

Leading expertise to improve microbial strain performance

Advanced continuous fermentation process

BEST™ solvent recovery

Technology Platform



Renewable n-Butanol Advantages

Renewable n-butanol’s unique advantages Stable long term feedstock prices relative to crude oil results in

lower cash cost of production Higher value product with favorable life cycle assessment Critical building-block chemical in key consumer markets

including paints, adhesives, inks, fragrances, cosmetics, and pharmaceuticals

Environmentally friendly and sustainable Highly versatile fuel – blend stock, drop-in, upgrade to jet fuel

U.S. Renewable Fuel Standard required the annual use of 15.2 BGPY of biofuels in 2012 and expanded the mandate to 36 BGPY in 2022(1)

Conventional biofuels derived from corn starch will be capped at 15 billion gallons by 2015 onward

Ethanol blend wall will increase demand for renewable n-butanol

EU draft legislation modifies biofuels mandate to boost advanced biofuels up to 4x credits

Biofuels mandates drive growth

(1) Source: National Academy of Sciences.

Renewable Fuels StandardMarket trends favorable for GBL Advances in GBL biology and fermentation processes improve

yields and productivity, and reducing unit energy, capex and opex Low cost, sustainable (non-food) feedstocks and pre-treatment

technology advancements reduce sugar input costs Shift to low cost natural gas as petrochemical feedstock benefits

GBL C4 markets expected to remain highly correlated to crude

oil pricing for the foreseeable future Drives up n-butanol C4 feedstock (propylene) in the short

to intermediate term



Market Opportunity: Large and Growing Market

Source: Management Presentation, Wall Street, Internal Research & Industry Research.

§ Building block chemical in $85 billion paints, coatings, inks, and adhesives § Cellulosic feedstocks§ Competitive price§ Sustainable & favorable LCA

§ Advanced biofuel for global transport fuels market§ Core technology program

positions GBL well in fuels

Large and Growing MarketProduct Pipeline

& Markets



Other

Solvent

Glycol Ethers

Acetate

Acrylate

§ Primary end market: $85 billion global paints, coatings, inks and adhesives industry, less than 13% used as direct solvent

§ Most suppliers of derivatives are backward integrated into butanol

§ Major downstream customers are demanding renewable raw materials

§ 55 tonnes of cellulose-feedstock-produced n-Butanol is available today

§ Samples (>20) being tested in chemicals applications as well as fuel additives

§ Collaborations will help to pull n-Butanol into derivatives

n-Butanol End Uses

Source: Nexant



n-Butanol Consumption & Production

Source: Nexant and SRI

§ Global demand exceeds 3.5mT p.a. growing at 3.2% p.a.

§ China demand is growing at >5% p.a.; will reach 40% of global demand by 2020

n-Butanol Consumption by Geography

§ Virtually 100% of global production is petro-butanol via propylene hydroformylation (Oxo Process)

§ Capacity is predominantly in U.S. and Europe where cracking economics lean toward lighter feedstocks

§ China is the only market supplied in small part by renewable n-Butanol (<300kT)

§ Dow and BASF are backward integrated to propylene§ Many producers are forward integrated into derivatives

n-Butanol Capacity

by Producers



Molasses:benchmark

Use of C5 sugars key to superior performance

GBL’s organisms can utilize diverse cellulosic feedstocks

Corn Stover

Woody Biomass Sugar Cane Bagasse

Flexible Feedstocks

Typical Cellulosic Composition

C6 Sugars

C5 Sugars

35% 37% 39% 39%

Sorted Municipal Solid Waste

35%38%

Product Yield on Sugars Fed (%)



Why MSW

§ Advantages:• Highly concentrated

supply• Feedstock as revenue• Co-location potential

§ Barriers:• Complex partnerships• Variability in waste composition• Conversion process

demonstration



Typical MSW Characterization

MSW 100 % Metals 6% Glass & other inerts 32%

Organics and plastics 62%

Bale, incineration, gasification

Organics 45% Plastics 17%

n-Butanol

Recycle Value Recycle Value

Source:

Renewable Opportunity



Case Study: HITAB

• 2 yr project



Case Study: HITAB

• 2 yr project



HITAB Project Objectives

§ Investigate tailored enzyme cocktails for hydrolysis of pre-treated MW at different process temperatures to release fermentable sugars.

§ Investigate options for simultaneous saccharification & fermentation (SSF) at ambient & high temperature

§ Test advanced fermentation processes for ethanol (at high temperature) & butanol (at ambient temperature)

§ Demonstrate : - technical feasibility (at pilot scale) - economic feasibility - significant reductions in GHG emissions



Case Study: USA MSW Evaluation

§ Evaluate conversion of fermentable sugars from presorted MSW feedstock stream

§ Test advanced fermentation processes butanol

§ Demonstrate− technical feasibility (at bench scale)− technical feasibility (at pilot scale)− economic feasibility− significant reductions in GHG emissions



Case Study USA: 1L scale – Sugar utilization



Case Study: USA MSW Evaluation

§ Analysis/fermentability– Feedstock sugars composition simple, i.e. mainly glucose– Feedstock sugar concentration suitable for butanol fermentation, but

low for yeast ethanol fermentation– No apparent inhibition at sugar loads to support butanol production

§ Fermentation studies– High solvent yields on liquid fraction, 0.39 g solvents/g sugar fed,

indicating utilization of non-sugar carbon-sources such as oligomeric carbohydrates.

– Fermentation time between 30 and 45 h for both liquid fraction and mixed floc.



R&D, Pilot Plant and Demonstration Facilities

150 liter 2 @ 550 liter100 - 200 literBench Scale

Gahanna Pilot PlantMilton Park Labs & Pilot Plant

Commercial DemonstrationDemonstration Plant

4 @ 10,000 liter Commercial Scale



Summary:

§ Attractive markets § Greater than 3.5 million tonne chemical market§ Renewable chemical trends§ Supply cost competitively (i.e. no subsidy needed)

§ Leadership § Proven commercial and technical expertise § World leader in ABE fermentation technology§ Understanding of the chemical markets

§ Technology offers multiple feedstock options § C5 & C6 sugars conversion§ Proven on wide range of cellulosic feedstock§ Extensive microbial culture collection

§ Attractive & capital efficient implementation options§ Process designs progressing for sorted MSW§ Demonstrated technology§ Advanced technology directed toward low cost position

.Tuesday, April 16, 13

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Transformational MSW Option Renewable Chemicals and n-Butanol