biochemicals pdf
TRANSCRIPT
Industry Perspectives
on New & Emerging Markets
Eric Bober – Director, Strategy – Biorenewables
Nexant, Inc.
Prepared for:
5th International Bioenergy Conference and Exhibition
Prince George, BC
June 14, 2012
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Agenda
Growing the Bioeconomy in new & emerging markets
Key drivers
Main issues
Industry perspectives
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Nexant – who we are
Formed January 1, 2000; core from Bechtel’s energy consulting unit, acquired ChemSystems (founded in 1964)
21 offices globally with ~600 professionals, HQ San Francisco
Consulting: 1,700+ assignments completed in 70+ countries
Named to 2011 Global Cleantech 100, the top 100 private companies in clean technology – companies that are best positioned to solve tomorrow’s clean technology challenges
Red Herring, the global technology business magazine, recognized Nexant as one of the top 100 privately-held companies in North America in 2008
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Nexant – illustrative renewables engagements in
new & emerging markets
1. Acid hydrolysis of lignocellulose to specialty biochems
• Technical and market due/diligence
2. Enzymatic hydrolysis of biomass to specialty biochems
• Demo in Europe on ethanol, commercialization in emerging
markets in specialty biochemicals
3. Biofuels in Asia – analysis of sustainability options
• Comprehensive, unbiased analysis of positive and negative
impacts in the life cycle of biofuels development, distribution,
and use, with focus on China, India, Indonesia, Malaysia, the
Philippines, Thailand, and Vietnam Continued on following page . . .
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Nexant – illustrative renewables engagements in
new & emerging markets (continued)
4. Brazil’s Biofuels Industry: Outlook for a Global Leader
• Focuses on Brazil and examines the current, emerging, and
potential future technologies to produce biofuels, considering
key elements of the value chain, including feedstocks, logistics,
and processing, and emphasizing techno-economic modeling.
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From an industry perspective – what’s it all about?
Key Drivers
Feedstock supply
Green/environmental
$$$
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Main issues of deployment
Proximity to feedstocks (accessible, available, domestic)
Hospitality (take what they give you)
Access to markets (tie into infrastructure)
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Why new & emerging markets?
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Population and forecast GDP growth are attractive relative
to mature markets
= Population = GDP growth forecast
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What’s happening: Biofuels – starting from a
modest base
Global Biofuels Production, 2011
North America
56%
EU 12%
Brazil 22%
Other 10%
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What’s happening: Biochemicals – firm projects to
2015
Continued on following page . . .
Company Product Location
Capacity,
kt per yr Startup Comments
NatureWorks PLA Blair, NE, USA 140 Operating
Thailand 140 2015
DuPont PTT US 100 Operating (Estimate)
Braskem PE Brazil 200 Operating Expansions under development
PP Brazil 30 2013 Further capacity under development
Dow/Mitsui PE Brazil 350 2015 Only the first phase
Chemtex Sugars Crescentino, Italy 180 2012
Genomatica 1,4 BDO Italy 16 2012
BioAmber Succinic Acid Sarnia Ontario, Can 17 2013 PBS
Thailand 65 2014 PBS
N. Amer. or Brazil 65 2014 PBS
Elevance 9-decenoic acid Indonesia 180 2012 2nd plant planned Mississippi
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What’s happening: Biochemicals – firm projects to
2015 (continued)
Company Product Location
Capacity,
kt per yr Startup Comments
Myriant Succinic Acid Lake Providence, LA 15 2013 PBS
Reverdia Succinic Acid
Cassano Spinola,
Italy 10 2012
BASF/Purac Succinic Acid Barcelona, Spain 25 2012
Rennovia Adipic Acid TBD 180 2015
OPXBio Acrylic Acid TBD 50 2015
Avantium FDCA Geleen, Netherlands 100 2015 Coke Development Partner
Anellotech BTX TBD 26 2014
Virent pX TBD 200 2015 Announced 100 to 300
Gevo/Toray pX TBD 50 2014 Nexant capacity estimate
Solvay PVC Brazil 60 ? Equipment ordered
Greentol MEG Taiwan 124 Operating +100 in 2012
TOTAL 2,625
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Why biochemicals?
Because they:
• Could cost less*
• Could sell for same or more *
• Could meet customer needs
* in some cases
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Why biochemicals? Because they can cost less
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Integrated Naphthato PX
Anellotech Gevo Virent (ex-situ H ) Virent (in-situ H )
para
-Xyl
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/T
Net Raw Materials Total Utilities Total Direct Fixed Cost
Total Allocated Fixed Cost Depreciation
A00101.0011.4111-CHARTS.XLSX\F4.3
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pX Cost of Production Plus 10% Return, 2011
Selected biochemical routes
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Why biochemicals? Because they can sell for more
Consumers and consumer products companies (e.g., Coke and Pepsi) are pulling renewable packaging (green PET and polyolefins) through the value chain
Automobile companies and other durable goods manufacturers are demanding renewable components like the green polyols for seating
The major theme in renewable chemicals and plastics is partnerships between developers of green chemicals and plastics and marketers of end use products
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Why biochemicals? To meet customer needs
Some of the biggest names in consumer products
currently using bioplastics:
• AT & T
• Coca-Cola
• Danone
• Ford
• Heinz
• Johnson & Johnson
• Mazda
• Nestle
• PepsiCo
• Procter & Gamble
• Shiseido
• Stonyfield Farms
• Toyota
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When biochemicals?
NOW!
• Technology advancements
• Increased environmental awareness – both push and
pull
• High/volatile fossil fuel costs
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A word on bio-technologies
Bio-technologies are:
The DEPENDENT variable
Evolving quickly – commercializing
Very mobile
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Challenges and roadblocks
Infrastructure ?
Natural gas ?
Capital ?
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Remember to keep salient local issues in mind in
new & emerging markets
Social issues
Nutritional value chains
Renewables for people
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Biochemicals: from an industry perspective,
what’s it all about?
The emerging global biochemicals sector:
4 million tons of biochemicals can realistically be produced by 2015 (excluding fuels)
15 million tons of bioplastics demand by 2020
Where will this be produced???
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Growing the bioeconomy in new & emerging markets
Key Drivers
Feedstock supply +/-
Green/environmental +/-
$$$ ???
Evaluation of each project on its own merit
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Contact information
Eric Bober
Director, Strategy – Biorenewables
Nexant, Inc.
44 South Broadway, 4th Floor
White Plains, NY 10601
914-609-0302 Office
914-310-4281 Cell
Nexant, Inc.
San Francisco
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www.nexant.com
e-mail:[email protected]