Nexant - From the ground up constructing a multiproduct portfolio in biorefining

NexantThinkingTM

From the Ground Up: Constructing a Multiproduct Portfolio in Biorefining

Prospectus June 2015

Special Reports

NexantThinkingTM

Special Reports

From the Ground Up: Constructing a Multiproduct Portfolio in Biorefining

Prospectus June 2015

Special Reports

This Report was prepared by Nexant, Inc. (“Nexant”) and is part of the NexantThinking™ suite. Except where specifically stated otherwise in this

Report, the information contained herein is prepared on the basis of information that is publicly available, and contains no confidential third party

technical information to the best knowledge of Nexant. Aforesaid information has not been independently verified or otherwise examined to determine

its accuracy, completeness or financial feasibility. Neither Nexant, Subscriber nor any person acting on behalf of either assumes any liabilities with

respect to the use of or for damages resulting from the use of any information contained in this Report. Nexant does not represent or warrant that any

assumed conditions will come to pass.

The Report is submitted on the understanding that the Subscriber will maintain the contents confidential except for the Subscriber’s internal use. The

Report should not be reproduced, distributed or used without first obtaining prior written consent by Nexant. Each Subscriber agrees to use reasonable

effort to protect the confidential nature of the Report.

Copyright © by Nexant Inc. 2015. All rights reserved.

www.nexantthinking.com

Special Reports-Prospectus From the Ground Up: Constructing a Multiproduct Portfolio in Biorefining

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Contents

Section Page

1 Introduction ............................................................................................................................. 1

1.1 OVERVIEW ............................................................................................................... 1

2 Report Scope ......................................................................................................................... 5

2.1 OBJECTIVES ............................................................................................................ 5

2.2 SCOPE ...................................................................................................................... 5

3 Proposed Table of Contents................................................................................................... 9

4 Methodology ........................................................................................................................... 11

5 Nexant's Experience............................................................................................................... 12

5.1 GENERAL ................................................................................................................. 12

5.2 ASSIGNMENTS UNDERTAKEN WHICH COVER BIOFEEDSTOCKS,

BIOCHEMICALS, BIOFUELS, AND/OR BIOREFINING SCHEMES ........................ 14

6 Contact Details and Subscription Information ........................................................................ 20

6.1 AUTHORIZATION FORM, TERMS AND CONDITIONS .......................................... 21

Figure Page

1.1 Proposed Biorefinery Model Parameters ............................................................................... 3

1.2 Proposed Feedstocks and Locations ..................................................................................... 4

5.1 Nexant Office Locations ......................................................................................................... 12

Table Page

5.1 Biorenewable Insights Topic Coverage .................................................................................. 18


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Section 1 Introduction

1.1 OVERVIEW

The bio-based economy has seen some notable successes in recent years, with the first major

commercial deployments of cellulosic ethanol in 2014 and the successful deployment of a number of

advanced bio-based chemicals processes. While these have been decisive milestones for proving the

technical feasibility of these processes, the commercial case for using these technologies has yet to be

proven.

Although most early commercial bio-based fuel and chemical facilities have been relatively small scale,

reflecting their nature as high risk, first-of-a-kind plants, new ventures being conceived have more

ambitious goals. The future for bio-based chemicals and fuels increasingly lies in large scale,

multiproduct facilities (i.e., in biorefineries).

The biorefinery concept, in analogy to a petroleum refinery, encompasses a full range of feedstocks and

products. Biomass resources can include first-generation sources such as starchy feedstocks and

oilseeds as well as whole lignocellulosic biomass. These can in turn be transformed into a variety of

intermediates such as sugar, syngas, distiller’s oil, and lignin, from which downstream products can be

produced.

The movement to a large scale biorefinery model is being driven by a number of different factors.

Major advances in the use of cellulosic feedstocks have opened the door to their use as large scale

inputs for downstream conversion. The use of cellulosic feedstocks is expected to show major returns to

scale in terms of capital and operating costs. In addition, increasing scale is also driven by the prospect

of construction of next-generation feedstock capable infrastructure alongside first-generation

infrastructure. Although this strategy is currently restricted primarily to cellulosic ethanol, it can offer

major advantages to facilities, including heat integration, year-round operation in areas currently restricted

by seasonal feedstock availability, reduction of wastes, and beneficial integration of logistics between

related feedstocks, such as corn and corn stover.

The biorefinery model also offers significant flexibility in terms of business arrangements. It can be used

for vertically-integrated production of many different products either as a provider of intermediates to

satellite businesses or as a fully-owned complex including multiple downstream production options.

Many uncertainties, however, continue to exist.

Outside of first-generation processing technologies and ethanol production, both of which are relatively

mature, a large variety of technology options exist for lignocellulosic biomass processing. In addition to

sugar production technologies, solutions that enable production of syngas from all or part of the feedstock

can open up new avenues for producing electricity, fuels and chemicals. Many of these technologies

have yet to be commercially deployed but may offer significant cost savings in comparison to currently

available processes. Some downstream technologies may also use biomass directly without any need for

intermediate processing. As a result, there is no “standard” front-end to a biorefinery.

This problem is mirrored in downstream processing. Technologies are available for a wide variety of

products, including not just ethanol but also higher value chemicals such as isobutanol, succinic acid,

1,4-butanediol (BDO), para-xylene, and caprolactam, are being developed at various levels of technical

maturity. However, in most cases no clear winner in terms of competitiveness has emerged, and many

technologies have yet to be commercially proven.


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Finally, unlike in an oil refinery, there is no constraint on the products that can be produced from

feedstock composition, but the particular feedstocks that can be used are not easily substitutable in many

cases. As a result, determining the optimal business case for a biorefinery is a difficult exercise in risk

management and revenue optimization among different options for feedstocks, products, and business

arrangements.

The new Nexant report From the Ground Up: Constructing a Multiproduct Portfolio in Biorefining seeks to

address these uncertainties with a major modeling and optimization effort. This study will model and

analyze the economics of biorefineries to determine optimal configurations for effectiveness and

profitability. Nexant will leverage this model in conjunction with price forecasts, market outlook, and

knowledge of emerging technologies to explore economic scenarios for biorefining. This combination of

model and Nexant analysis will take into account geography, available feedstock options, business

models and a synthesis of Nexant’s extensive coverage of the bio-based sector to provide an overview of

economic attractiveness of a biorefinery on a regional basis. In addition, Nexant’s report will provide

overviews of the downstream and upstream technology options, and a copy of Nexant’s economic model.

Nexant will strive to provide readers with answers to the following questions:

What downstream and upstream technologies are commercially available for biorefining? What

are pros and cons of each option?

What bioproducts are soon to reach commercialization? How does the technology compare to

existing commercial technologies?

What are the potential locational impacts on a biorefinery configuration?

What are regionally available feedstocks? What challenges might a certain feedstock present to

the economic competitiveness of the biorefinery?

What is the outlook for common products and feedstocks?

What are some currently existing biorefining configurations? What layouts are the most profitable

now and in the future?

How will overall economic competitiveness be affected given changes in feedstock, upstream

processing technology, downstream processing technology, final product proportions, size, and

location?

What technologies are more competitive for a given set of circumstances?

The model included with the purchase of this report will allow users to select their own location, time of

start-up, feedstock, product, size, and technology configuration. The model will generate a Nexant cost of

production model based on the user’s inputs. This will allow users to quickly compare the snap-shot

economics of several biorefining schemes prior to investing in a specific configuration, either as a

technology provider, plant owner, or outside investor, as well as supply their own price data. Figure 1.1

maps out the model’s proposed parameters.


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Figure 1.1 Proposed Biorefinery Model Parameters

Feedstocks and geographic options will include those represented in Figure 1.2.

Feedstock

Carbohydrate

Oils

Cellulosic

Generic Milling

Enzymatic Hydrolysis

Acid Hydrolysis

Supercritical Hydrolysis

Corn

Wheat

Sugarcane

Cassava

Corn Stover

Wheat Straw

Sugarcane Field Trash

Sugarcane Bagasse

EFBs

Wood and Wood Wastes

MSW

Energy Grasses

Palm Oil

Grain Milling

Sugarcane Milling

Pressurized Hot Water Extraction

Organosolv

Acid: Sulfuric Acid, Hydrochloric Acid

Separation: ??????

Ammonia

Methanol

Ethanol

n-Butanol

1,4-BDO

Furan

Furfural

L-Lactic Acid

Succinic Acid

iso-Butanol

Adipic Acid

Acrylic Acid

FDCA

BTX

MEG

PX??

Fatty Acids

Biotech Oils

Gasification

Fermentation

Thermochemical Conversion


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Figure 1.2 Proposed Feedstocks and Locations

Nexant will further provide one day of consulting time per subscription to this report in order to provide

clarifications and guidelines on the model and its use, as well as answer any subscriber questions. In

addition, Nexant can further analyze individually tailored biorefinery configurations upon subscriber

request for an additional fee.

Subscribers to this report will gain an understanding of commercially available and selected developing

biorefining technologies, and their respective competitiveness’ in a customizable setting. Nexant will also

provide a time projected cost of production analysis based on price forecasts, changes in depreciation,

and sustenance capital. Nexant anticipates this report to be particularly useful for:

Investors, who can use the model and report as a guide for determining if a clients proposed

configuration will be an economical solution, and how it may compare with competing options

Biotechnology Developers, who can use Nexant’s analysis to help guide their own strategy and

to gain insight into the outlook of potential competitors

Nexant has an extensive background in bio-based technologies and feedstocks, both commercial and

developing, as well as a deep background in market analysis and economic modeling. Nexant will use its

extensive network of primary and secondary sources to provide subscribers with unrivaled industry

insight. Although Nexant’s coverage of bio-based technologies is primarily provided by the Biorenewable

Insights subscription service, this report will incorporate information from across Nexant’s experience in

the bio-based industries and serve as a complementary study specifically on the economics of biorefinery

ventures.

This prospectus describes Nexant’s multi-client study, the scope of the proposed report, the methodology

to be used, and Nexant’s qualifications to perform such a study. The study is expected to be completed

during the Fourth Quarter of 2015. The pre-publication cost of the study is US$22,000.

North America South America Western Europe Asia Pacific

United States Brazil Continental Western Europe China Malaysia

Carbohydrate:

Corn

Cellulosic:

Corn Stover


Energy Grasses

MSW

Carbohydrate:

Sugarcane

Corn

Cellulosic:

Sugarcane Bagasse


Corn Stover

MSW

Carbohydrate:

Wheat

Cellulosic:

Wheat Straw


Energy Grasses

MSW

Carbohydrate:

Corn

Cassava

Cellulosic:

Corn Stover

MSW

Carbohydrate:

Cassava

Cellulosic:

EFB’s

MSW

Other:

Palm Oil

Region


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Section 2 Report Scope

2.1 OBJECTIVES

This report is designed to analyze the relative economic competitiveness of different biorefining schemes.

This will be done through the exploration of the target feedstock and product markets, location-based

restrictions, and detailed cost of production modelling projections. Nexant will deliver both the cost of

production modelling system as well as detailed projections of profitability and competitiveness over time

using Nexant’s pricing and capital cost forecasts.

2.2 SCOPE

This study and included model will help investors and developers to determine ideal biorefining

configurations.

Given the constraints of available technology, the product output would determine the required

intermediates (if any), such as syngas, crude vegetable oil, cellulosic sugars, or lignin. This in turn would

constrain feedstock processing options. Available feedstocks for use will be selected by geography,

which will determine available first- and second-generation feedstocks that can be used as inputs. To

accommodate desired swing capacity, downstream options or upstream processing options can be

specified to have a greater than 100% nameplate consumption of intermediates.

Nexant will determine biorefinery scenarios based on knowledge of markets, product and feedstock

synergies, technology maturity, and optimization for maximal profitability. These will be examined both in

terms of current economics and expected profitability in the future.

The report will begin with an overview of each included technology, feedstock, and product, including:

Geographic Impacts

Geographic Availability of Feedstocks

Geographic Impacts on Favorability of Biorefining

Feedstock Overview

Whole Biomass Feedstocks

First-Generation Feedstocks

Oilseed Feedstocks

Biorefinery Intermediates

Cellulosic Sugars

Lignin

Syngas

Vegetable Oil

Upstream Technology Options

Overview of Capabilities and Limitations

Technical Descriptions

Licensors and Partners

Downstream Technology Options

Overview of Capabilities and Limitations

Technical Descriptions


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Licensors and Partners

Suggested and Common Configurations

Economic Assessment

Strengths and Weaknesses of Configuration

Assessment of Regional Competitiveness

2.2.1 Feedstock, Product, and Technology Coverage

Nexant intends to explore the biorefining space using the most up-to-date list of technologies available for

conversion of biofeedstocks to fuels and chemicals. Technology options will be covered based on

technical maturity; those that have yet to reach commercial deployment will be included based on their

level of development as evaluated by Nexant. Coverage in this scope will include, but not be limited to,

the following options.

2.2.1.1 Feedstocks

Feedstocks in the report will be restricted based on geographic location. For example, palm empty fruit

bunches will be a feedstock restricted by geographic availability to the Malaysia location scenario. The

proposed feedstocks for inclusion in this report are:

Carbohydrate

Sugarcane

Corn

Wheat

Cassava

Cellulosic Biomass

Corn Stover

Wheat Straw

Palm Empty Fruit Bunches

Sugarcane Bagasse



Municipal Solid Wastes (MSW)

Energy Grasses

Oils

Distiller’s Corn Oil

Crude Palm Oil

2.2.1.2 Upstream Processing Technology

Please note that available upstream processing technology will be dependent upon feedstock selection.

Below is the list of proposed upstream processing technologies:

Starchy Feedstock Dry Milling

Oilseed Crushing (Palm Oil Only)


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Cellulosic

Whole Biomass Fractionation Methods

Hydrolysis Methods

Gasification

2.2.1.3 Downstream Processing Technology

Downstream technology options will be dependent both on upstream processing and desired product.

Downstream technology will, broadly, be based on one of fermentation, thermochemical conversion, and

gasification and reforming. The downstream technologies will be given as options once a product is

selected.

2.2.1.4 Products

Current commercial bioproducts available for inclusion in this report will be assessed on an individual

technology provider basis. Products covered will include:

Ethanol

Methanol

n-Butanol

Isobutanol

1,4-Butanediol

Succinic Acid

L-Lactic Acid

Adipic Acid

Acrylic Acid

Monoethylene Glycol

2,5-Furandicarboxylic Acid

para-xylene

BTX

Fatty Acids

Biotech Oils

Ammonia

Furan

Furfural

Others


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2.2.1.5 Other Options

Below are other options that model users will have the flexibility to modify:

Size

Year of Start-Up

Relative Amounts of Products/Feedstocks

Level of overcapacity (for flex capacity)

Plant Add-Ons

Bagasse or Field Trash Combined Heat and Power (CHP) System

Lignin CHP System

Whole Biomass/Sawdust CHP System

Lignin Gasification (Air-Blown and Oxygen-Blown)

2.2.2 Regional Coverage

This report is proposed to include the following plant locations:

North America

United States

South America

Brazil

Continental Western Europe

Asia Pacific

China

Malaysia


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Section 3 Proposed Table of Contents

Section

1 Executive Summary

2 Introduction

3 Feedstock Overview

3.1 INTRODUCTION

3.2 CARBOHYDRATE

3.3 CELLULOSIC

3.4 OILS

4 Geographic Overview of Biorefinery Options

4.1 NORTH AMERICA

4.2 SOUTH AMERICA

4.3 WESTERN EUROPE

4.4 ASIA PACIFIC

5 Upstream Technology Overview

5.1 CARBOHYDRATE FEEDSTOCK PROCESSING

5.1.1 Grain Milling

5.1.2 Sugarcane Milling

5.2 OLEOCHEMICAL FEEDSTOCK PROCESSING

5.3 CELLULOSIC FEEDSTOCK PROCESSING

5.3.1 Biomass Fractionation and Enzymatic Hydrolysis

5.3.1.2 Organosolv Fractionation Technologies

5.3.1.2 Thermal Fractionation

5.3.2 Acid Hydrolysis Technologies

5.3.2.1 Sulfuric Acid Hydrolysis

5.3.2.2 Hydrochloric Acid

5.3.3 Supercritical Hydrolysis Technologies

5.3.4 Non-Enzymatic Organosolv Technologies

6 Product Technology Overview

6.1 ETHANOL

6.2 METHANOL

6.3 n-BUTANOL

6.4 ISOBUTANOL

6.5 1,4-BUTANEDIOL

6.6 SUCCINIC ACID

6.7 LACTIC ACID


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Section 3 Proposed Table of Contents

6.8 ADIPIC ACID

6.9 ACRYLIC ACID

6.10 MONOETHYLENE GLYCOL

6.11 2,5-FURANDICARBOXYLIC ACID

6.12 para-XYLENE

6.13 AROMATICS (BTX)

6.14 FATTY ACIDS

6.15 BIOTECH OILS

6.16 AMMONIA

6.17 FURAN

6.18 FURFURAL

6.19 OTHERS

7 Common and Recommended Biorefinery Configurations

7.1 COMPARISON OF STUDIED CONFIGURATIONS

7.2 CONFIGURATION A

7.2.1 Configuration Overview

7.2.2 Cost of Production Projection

7.3 CONFIGURATION B



7.4 CONFIGURATION C



7.5 CONFIGURATION D



7.6 CONFIGURATION E



8 Strategic Implications of Biorefinery Economic Modeling


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Section 4 Methodology

Nexant will construct an extensible biorefinery model based on Microsoft Excel, with support from process

modeling, in-house data, and industry contacts. Nexant will further supplement this model with pricing

projections and additional in-house analysis.

Common configurations to be used in the model for Section 7 will be solicited from industry contacts or

determined using Nexant’s extensive background in bio-based chemicals and fuels processing, and

configurations will be optimized for long-term profitability using the constructed model in conjunction with

Nexant analysis.

Nexant will draw upon its extensive experience in the Bio-Renewables sector, patents, publicly available

resources, industry contacts, and process modeling to produce technoeconomic descriptions of relevant

downstream and upstream technologies, and the restrictions of downstream technologies to certain

feedstock types.

This report will draw upon Nexant’s in-house price projections and capabilities in forecasting in order to

determine the economic viability of biorefinery configurations over a medium term time horizon. In

particular, the economic modeling methodology will focus on margins determined through the differential

between modeled cost of production and known or forecasted market prices.


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Section 5 Nexant's Experience

5.1 GENERAL

Nexant uses multidisciplinary project teams drawn from the ranks of our international staff of engineers,

chemists, economists and financial professionals, and from other Nexant groups to respond to the

requirements of each assignment. Most of the consulting staff possesses credentials in both scientific

and commercial disciplines plus substantial industrial experience. The collective talents of our staff are

strategically located and closely linked throughout the world, resulting in valuable insights gained through

a variety of perspectives.

Nexant is an international consultancy and is dedicated to assisting businesses within the global energy,

chemical, plastics, and process industries by providing incisive, objective, results-oriented management

consulting. Over four decades of significant activity translates into an effective base of knowledge and

resources for addressing the complex dynamics of specialized marketplaces. By assisting companies in

developing and reviewing their business strategies, in planning and implementing new projects and

products, diversification and divestiture endeavors and other management initiatives, Nexant helps clients

increase the value of their businesses. Additionally, we advise financial firms, vendors, utilities,

government agencies and others interested in issues and trends affecting industry segments and

individual companies.

The Nexant Group was formed as an independent global consulting company in 2000, combining a

number of companies that had a long history of providing consultancy services to the chemical and

refining-related industries. Nexant’s experience covers all aspects of project development relating to

major refinery, petrochemical, and polymer investments, ranging from grassroots plants to revamps of

existing process units. Nexant’s key offices serving the petrochemical and downstream oil sectors are

located in New York, Houston, London, Bangkok, and Bahrain, and locations for other offices are shown

in Figure 5.1.

Figure 5.1 Nexant Office Locations

Headquarters Main Offices

Representative Offices

San FranciscoWashington, DC

White Plains

LondonFrankfurt

Bahrain

TokyoSeoul

Shanghai

Singapore

Kuala LumpurBangkok

Buenos Aires

La PazRio de Janeiro

Project Offices

New Delhi

Pretoria

Abuja


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From major multinationals to locally based firms and governmental entities, our clients look to us for

expert judgment in solving compelling business and technical problems and in making critical decisions.

Nexant’s clients include most of the world’s leading oil and chemical companies, financial institutions, and

many national and regional governments. Nexant, Inc. is active in most of the industrialized countries of

the world, as well as in most of the developing areas including the Middle East, Africa, and East and

Southeast Asia.

Major annual subscription programs are:

Process Evaluation/Research Planning (PERP)

Petroleum & Petrochemical Economics (PPE) Polyolefin Planning Service (POPS)

The PERP program covers technology, commercial trends, and economics applicable to the chemical

industry. The program has more than 40 subscribers, including most of the major international chemical

companies. Many of the processes to be analyzed in this multi-client study have been assessed in the

PERP program.

The PPE program provides historic and forecast analysis of the profitability, competitive position, and

supply/demand trends of the global petroleum and petrochemical industry. The program includes

capacity listings and analysis, global supply, demand and trade balances, profitability, competitiveness,

and price analysis and projections for all the major petrochemical value chains. The PPE program is

supported by an internet-based planning and forecasting tool that provides online access to the database

behind the reports of the PPE program.

The POPS program provides reports on the global polyethylene and polypropylene industry. It is

recognized globally as the benchmark source for detailed information and analysis on current commercial,

technical, and economic developments in the polyolefins industry. Coverage includes: capacity listing and

analysis, detailed consumption, supply/demand, trade, operating rates, price forecasts, technological

developments, new products, inter-material substitution, and regional competitiveness.


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5.2 ASSIGNMENTS UNDERTAKEN WHICH COVER BIOFEEDSTOCKS, BIOCHEMICALS, BIOFUELS, AND/OR BIOREFINING SCHEMES

5.2.1 Single Client Studies

5.2.1.1 Techno-Economic Due Diligences

Nexant has performed a number of techno-economic due diligences examining all aspects of a

biorefinery; including intensive reviews of bio-based feedstocks, upstream processing technologies (such

as cellulosic sugar processing and gasification), downstream processing technologies (including syngas

utilization and fermentation), and integrated technology offerings (such as chemical conversion).

Biofeedstocks

Biochemical Opportunities in the United Kingdom - The National Non Foods Crops Centre (NNFCC)

engaged Nexant to provide a focused analysis of renewable chemical opportunities in the United

Kingdom. The project was in part undertaken to gain a better understanding of the opportunities for the

United Kingdom to integrate renewable feedstocks into its chemical manufacturing base. Nexant’s

analysis was used to support the development of research and development programs in both academia

and industry organizations.

Biopolymer Value Chain – Investigate renewable feedstocks for biopolymers, biopolymer compounding

and polylactide.

Feedstock Supply Plan Due Diligence – Nexant was brought on by a potential investor to evaluate and

examine the feedstock procurement strategy for a proposed cellulosic ethanol facility, including an

evaluation of proposed feedstock yields and relative locational availabilities.

Alternative Feedstock Evaluation – Nexant was tasked with providing an understanding of the

economic, logistic, and geographic issues entailed by using alternative bio-based feedstocks, including

raw biomass, biomass-derived C5/C6 sugar streams, and biomass-derived syngas.

Upstream Processing Technologies

Biomass Gasification Technical Due Diligence – Technical due diligence on a novel gasification

process to produce renewable fuels from municipal solid waste-derived syngas in the United States.

Production of Cellulosic Sugars Technical Due Diligence – For a U.S. venture capital firm, Nexant

performed a technical due diligence on a European process platform and demonstration project to

produce cellulosic sugars for fermentation to ethanol or other products, with a view towards deployment in

the United States and elsewhere.

Technical Due Diligence for Cellulosic Sugars Processing Technology – For regional banks, with a

USDA loan guarantee, a technical due diligence was done on a project utilizing a European process to

produce cellulosic sugars from a seasonally varying set of biomass feedstocks for fermentation to ethanol

in a commercial integrated biorefinery at a U.S. site.

Saccharification of Cellulosic Biomass Technical and Market Due Diligence – For a U.S. banking

syndicate and with a U.S. federal loan guarantee, Nexant performed a technical and market due diligence

on the applicability of a U.S. company’s enzymatic system for saccharification of cellulosic biomass in a

specific cellulosic ethanol facility and in other processes.

Plasma Gasification Techno-Economic and Market Due Diligence – For a leading multinational

airline, Nexant performed a techno-economic and market due diligence on a U.S. plasma gasification

technology and first of a kind gasification complex in Europe to produce bio-jet fuel and other

hydrocarbon fuels by gasification of municipal solid waste.


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Downstream Processing Technologies

Sugar-fed Yeast Fermentation Technical and Market Due Diligence – Nexant performed a technical

and market due diligence on a U.S. sugar-fed yeast fermentation process producing isoprenoid

hydrocarbons; assessed process platform, demonstration and commercial plant designs for Brazil.

Heterotrophic Algae Fermentation Technical and Market Due Diligence – Nexant performed a

technical and market due diligence on a U.S. sugar-fed heterotrophic algae fermentation process and first

of a kind project to produce tailored oils with a wide range of applications from chemicals, to food, to

personal care.

Cellulosic Ethanol Fermentation Technical Due Diligence – Technical due diligence on a novel

cellulosic ethanol fermentation process in the United States.

Cellulosic Butanol Fermentation Technical Due Diligence in China – Technical due diligence on a novel

Chinese cellulosic fermentation butanol process.

In-silico Fermentation Technical Due Diligence – Technical and market due diligence on a U.S.

in-silico fermentation platform and renewable chemicals project.

Advanced Biobutanol Process Technology, Economic, and Market Due Diligence - For a

prospective investor in this technology development, Nexant performed a broad-based feasibility

study/due diligence with the full cooperation of the developer providing R&D data and existing business

models for critique. Butanol was examined for its proposed fuel potential as well as for its large existing

market as a solvent and chemical feedstock. The economics of the incumbent petrochemical route was

compared.

Yeast Fermentation Technical and Market Due Diligence – For a Brazilian investor/prospective partner,

Nexant performed a technical and market due diligence on a U.S. sugar-fed yeast fermentation process

producing isoprenoid hydrocarbons, with evaluation of process platform status, demonstration assessment,

and assessment of potential to feed cellulosic sugars in Brazil.

Succinic acid Fermentation Market Due Diligence – For a foreign investor, Nexant performed a market

due diligence on a novel succinic acid fermentation process and the first commercial plant design in a

biorefinery in the United States.

N-butanol Technical and Market Due Diligence – For a CleanTech/biotech-focused venture capital

firm, Nexant performed a technical and market due diligence on an improved version of the classic ABE

clostridium-based n-butanol fermentation and its first commercial design.

Syngas to Chemicals and Fuels Techno-Economic Due Diligence – For a major Asia-based

diversified chemical giant, Nexant performed a techno-economic due diligence on a novel U.S.-New

Zealand technology, with an assessment of pilot plant scale-up, and competitive issues for their process

platform that utilizes a bacterial fermentation to convert CO and CO2 in stack gases and waste-derived

syngas to produce a range of fuels and chemicals.

Fermentation Routes to Bio-Succinic Acid/BDO – In a series of studies for a number of different

stakeholders, Nexant evaluated technologies, markets, and competition for fermentation routes being

developed for this potential raw material for polybutylsuccinate, 1,4-butanediol, and other chemicals

derivatives, and compared to petrochemical routes.

PLA – For this key renewable, biodegradable commodity polymer, polylactic acid, or polylactide (PLA)

made from corn or sugar substrates, Nexant evaluated production technologies and markets for a number

of different stakeholders.


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Hydrocarbon Fuels and Chemicals via Sugar Fermentation: Process Development Assistance –

For a biotech developer of sugar fermentation routes to C5 hydrocarbon-based (isoprene homologues) for

vehicle fuels, chemical intermediates and specialty chemicals, this was a series of three projects to

provide assistance, including process flow sheet and capital expenditure review, troubleshooting, and

cost reduction strategies, product recovery studies, and process safety analyses.

Integrated Technologies

Biomass to Chemicals Techno-Economic Due Diligence – Nexant conducted a techno-economic due

diligence on a novel technology seeking to catalytically convert biomass feedstocks into fungible chemical

intermediates, and downstream integration to drop-in replacement derivatives such as polyolefins.

Catalytic Metathesis Technical and Market Due Diligence – Technical and market due diligence on a

U.S. process platform and project to employ proprietary catalytic metathesis to convert fatty acids or

alcohols to more functional, higher-value products for global.

Biodiesel Transesterification Techno-Economic and Market Due Diligence – For a consortium of

U.S. and multinational banks, Nexant conducted a techno-economic and market due diligence on a

unique biodiesel (FAME) transesterification process, as well as supply logistics for waste fats, oils, and

greases, business model, and project deployments at various U.S. sites.

para-Xylene Technical Due Diligence – Nexant performed two rounds of technical due diligence, first

with a bench-scale demo, and a second with a running pilot plant, on a novel multi-step thermochemical

process to convert with high yield and selectivity waste cardboard and other cellulosic post-consumer

wastes to para-xylene.

Nano-catalyst Technical and Market Due Diligence – Financed by the prospective investor, Nexant

conducted a technical and market due diligence and assisted in developing process concepts and

business models for monetizing a unique bio-based platform for multi-functional nano-catalyst design and

production, and towards obtaining seed financing from this high-profile venture capital firm and its

syndicate.

5.2.1.2 Biorefining Technology and Product Screenings and Evaluations

Nexant has been contracted by a number of developers to evaluate and examine potential

biotechnologies and process configurations.

Product and Technology Screening – Nexant performed a broad and comprehensive screening of

developing and commercially available biotechnologies and evaluated their relative desirability’s along a

matrix assessing commercialization status, product market size, developer’s business model, and cost of

production economics.

Cellulosic Sugar Processing Technology Screening – Nexant was hired to assess the status of global

second-generation sugars technology developers in order to determine the value of potential

partnerships. This entailed defining a master list of technology developers who have passed the pilot

stage and narrowing to a short list of 7 for deeper examination. The examination included technology

scoring, evaluation of industrialization plans, SWOT analysis and cost of production estimation.

“Forest Refinery” Industry Evaluation - A U.S. national laboratory retained Nexant to assess the

technical and economic feasibility of a forest refinery designed to manufacture chemical products from

trees. The analysis screened a variety of biomass conversion technologies and compared the production

costs and energy consumption levels of each route to conventional routes. Processes evaluated included

fermentation, lignocellulose separation, lignin conversion and gasification.

Hunest Biorefinery Market Study - A project to revitalize a former Nitrokemia site in Hungary to convert

circa 200,000 tons per year of biomass into biopolymers, green solvents, and intermediates. Nexant was


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engaged to undertake a market study of the commercial opportunities for the project covering mainly

pricing and the European market in order to guide the company in developing its marketing strategy for

the project

Biopolymers for Beverage and Food Packaging – For a U.S.-based, leading, multinational beverage

and food company, Nexant performed a study of the technical and economic feasibility of using, and

issues around, selected bio-based polymers for packaging in the future, including PLAs, PHAs, green

polyethylene, and others. For this, evaluated and compared three radically different emerging routes to

green para-xylene production for feeding production of green PTA to react with green MEG to make 100

percent green PET bottle (and fiber) resin.

Chemicals from Corn - This was a broad-based study for the National Corn Growers Association

(NCGA), funded by the U.S. DOE, to identify and screen chemicals that could be feasibly produced from

corn. The study considered a wide range of potential sugars, and fermentation-derived acids, alcohols,

and other building blocks, but emphasized fuel ethanol derivatives, including basic petrochemicals,

solvents, intermediates and specialties, and application of the Reactive Distillation technology sponsored

by the NCGA. The basic economics of ethanol production and potential improvements, economies of

scale, logistics, and other production and value chain issues, are addressed in the study.

Fermentation Propanol to Green Propylene – This report identifies discusses four routes to producing

propylene from renewable feedstock (corn, sugarcane, and glycerine). Bio-propylene, bio-based

chemicals, biological route, biotechnology, genetically modified organism (GMO), bacteria are included in

the study.

Financial Due Diligence - Analysis of a renewable route to succinic acid and potentially to adipic acid

and other valuable green chemical intermediates. Examines technology, intellectual property position,

market potential, and competitor positioning.

Product Screening – Nexant was retained by one of the largest ethanol producers in the United States

to develop near term (1 to 3 years) and long term (3 to 10 years) bio-based product strategies. Nexant

evaluated 123 chemicals to identify those with the most attractive markets and laid out a strategy to focus

investment and R&D on commercializing them.

Potential Byproduct Production Strategy – Nexant was hired by a pulp and paper company to screen

and identify bioenergy/biochemical technologies that could enable pulp manufacturer to produce bio-

derived products at competitive production cost.

Biotechnology Screening – Nexant was hired by an Asian Research company to provide analysis of

current and developing bio-refinery technologies, feedstocks and co-products. The study includes the

technical and commercial status of the current leading biofuels such as corn ethanol in the United States,

sugarcane ethanol in Brazil, and fatty acid methyl ester (FAME) biodiesel. It also includes emerging “next

generation” biorefinery technologies and types.

5.2.2 Biorenewable Insights

Nexant has recently introduced the Biorenewable Insights program, a subscription-based multiclient

service that provides regular coverage of the biofeedstocks, biofuels, and biochemical sectors. This

service consolidates Nexant’s special report coverage of the biofuels and biochemical sector into a

regular series of reports covering all aspects of technology, economics, and new venture capacity

worldwide. In addition to major reports updated on a three-year cycle, these report series also feature

quarterly updates of economics and new ventures.

Topic coverage of Biorenewable Insights is shown according to value chain and expected date of

completion of the primary report in Table 5.1.


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Table 5.1 Biorenewable Insights Topic Coverage

C1-C2 C3 C4, Aromatics & Other

Fuels and Refining Intermediates

Bio-Feedstocks

2014

/201

5 Biomass Gasification Bio-Based

Acrylic Acid BTX and PX

Next Generation Bioethanol

Cellulosic Feedstocks

Ethylene and Derivatives Propylene Glycol Butadiene Biodiesel Cellulosic Sugars

Methanol/DME n-Butanol Butanediol (BDO) Jet Fuel Carbohydrate Feedstocks

2015

/201

6 Alpha Olefins and LAOs Isobutanol Succinic Acid Naphtha Natural Oil Feedstocks

Lactic Acid/PLA Propylene Adipic Acid Isooctene/Isooctane Biomass Pretreatment

Biogas and LFG PDO and PTT Isoprene and Isoprenoids

Gasoline and Reformate

MSW

2016

/201

7 Hydrogen Polypropylene Isobutylene Bio-Lubes Algae Technologies

Syngas Fermentation Epichlorohydrin PEF to Replace PET Bio-Crudes Lignin

Ammonia SAPs Caprolactam Pyrolysis Oil Sources for Natural Rubbers

5.2.3 Other Multiclient Programs and Special Reports

During the past five years, Nexant has completed many major multi-subscriber studies in biofeedstocks,

biochemicals, and biofuels. Selected multiclient reports in this area include:

PERP Report S2013-S11 Biomass Gasification – This report presents a comprehensive review

of commercial and emerging biomass gasification technologies and applications to power, fuels,

and chemicals production. Process descriptions are included, as well as regional economics of

various feedstock types including North America, South America, Western Europe, and Asia.

PERP Report S2013-S4 Bio-Jet Fuel - This report provides a comprehensive overview of

technology options for biojet fuel production. It includes process descriptions and economics for

the main routes for the best in class technology developers, as well as a discussion of market

potential for North America, South America, Western Europe, and Asia.

PERP Report S2013-S9 Bio-Butadiene – This report takes a modular approach to the plethora

of potential bio-butadiene routes, which include multiple bio-based and conventional catalytic

steps. Technology descriptions are presented, markets are discussed and economics developed

for North America, South America, Western Europe and Asia for the most promising routes.

PERP Report 2012-S2 Bioisoprene/Isoprene – Routes to isoprene via C5 streams, as well as

on-purpose and emerging biotransformation routes are discussed in detail. Process economics

for seven technologies (including emerging bioroutes) have been developed (China, N.W.

Europe, and U.S. bases). Regional market supply/demand is included.

PERP Report 2013-S1 Project Development and Financing: Keys to Success – This report

covers the key steps to a successful project implementation, from screening and feasibility

studies, front end engineering design (FEED) and securing financing, through engineering,

procurement, construction (EPC) and plant commissioning.

PERP Report 2011-S10 Biosuccinic Acid – Emerging biosuccinic acid process technologies

have been analyzed and evaluated including cost of production estimates. Global succinic acid

supply/demand is included.

Biorenewable Financing Under the Microscope – A study that analyzes developments in bio-

based investment and financing. The study assesses the investments by region, technology

type, and status of development for the various bio-based products being developed or in

production in late 2014.


19


Municipal Solid Waste: Using Our Refuse – A study that characterizes the sources and current

dispositions of MSW and trends, reviews policy and economic trends that are affecting the

composition of the waste stream globally, and explores waste management strategies that will

reduce the dependence on traditional landfilling and incineration. The report describes and

characterizes the technologies and economics of recovering various material and energy

resources from mixed MSW stream. It also looks at utilizing MSW fractions (such as food waste,

paper, and plastic) for producing energy, biofuels, renewable chemicals, in a variety of key ways.

Bio-Naphtha: Missing Link to the Green Chemicals Value Chain – A study that analyzes the

overall techno-economic feasibility of commercial bio-naphtha production and steam cracking.

The study includes various biofeedstocks and potential location scenarios in technological and

production economic analyses of the leading process technologies in bio-naphtha.

Biobutanol and Downstream Markets: Will You Be Buying Bio? – A report that analyzes the

production of butanol from renewable sources and associated downstream markets. The

technical, commercial and economic aspects of producing biobutanol by different process

technologies are compared and discussed. The various alternatives to convert biobutanols into

chemicals and polymer products, as well as supplying the large existing markets, are also

examined.

Next Generation Biofeedstocks: Resources for Renewables – A report that analyzes

biofeedstocks as a source of renewable downstream products. The study assesses the

technical, commercial and economic aspects of producing biofeedstocks as well as providing

supply estimates.

Cellulosic Sugars: Unlocking Biomass’ Potential – A study of the emerging biotechnology,

processing technologies and economics of producing and recovering commodity sugars and/or

direct products (e.g., ethanol) from cellulosic biomass as well as a comparison to conventional

routes

Is Bio-Butanediol Here to Stay? – A report that analyzes developing technologies for the

production of butanediol via renewable feedstocks, investigating renewable feedstocks and

conventional sources and provides an economic comparison of renewable and conventional

routes to butanediol.

Bio-Based Chemicals: Going Commercial – A survey of the emerging biotechnology,

processing technologies, announced project capacities, and a risk adjustment of these

announced capacities. This included coverage of commodity monomers and polymers, as well

as emerging polymers (e.g., succinic acid and/or 1,4-butanediol for polybutylene succinate).

Bio-Acrylic Acid and Derivatives – A study of the emerging biotechnology, processing

technologies and economics of producing and recovering bio-acrylic acid as well as a comparison

to conventional routes.

Liquid Biofuels: Substituting for Petroleum – A study of the technical, commercial and

strategic outlook for the production of liquid biofuels that can substitute for conventional

petroleum-derived gasoline and diesel fuels that seeks to answer questions about feedstock

availability, technological developments for primary biofuels as well as competitiveness with

conventional petroleum fuels.

Plants to Plastics – A study of the emerging biotechnology, processing technologies and

economics of producing and recovering commodity polymers such as polyethylene,

polypropylene, polyethylene terephthalate, and others as well as a comparison to conventional

routes


20

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