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CATIA BASTIOLI

TAGLIO DI PO (RO)

30.09.2016

BIOREFINERIES INTEGRATED IN LOCAL AREAS TO

REINDUSTRIALISE AND DECARBONISE EUROPE

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NOVAMONT’S BIOECONOMY MODEL AND

INFRASTRUCTURES

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THE PILLARS OF OUR STRATEGY

1. THE PLANTS

Deindustrialized sites, their regeneration transforming world-first technologies into flagships (plants first in the world) intended as «bioeconomy infrastructures». Interconnected among them and connected with the local areas , starting points for new chains and new partnerships.

2. THE PRODUCTS

The products of the value chain have to contribute to solve real societal challenges and not to be one just of the million products in the market.

OUR MODEL OF BIOECONOMY AS TERRITORIAL REGENERATION

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PRODUCTION SITES

MATRÌCA 50:50 JV

NOVAMONT-VERSALIS

FLAGHIP FOR AZELAIC AND PELARGONIC ACIDS, THEIR

ESTERS, PLASTICISERS, BIOHERBICIDES, BASIS FOR

BIOLUBRICANTS

INTEGRATED AGRICULTURAL VALUE CHAIN

Porto Torres (SS) - Sardegna

HEADQUARTER

BIOECONOMY INFRASTRUCTURES IN ITALY

MATER-BIOTECH (100% NOVAMONT) FLAGSHIP FOR 1,4 BDO PRODUCTION THROUGH FERMENTATION PROCESSES Adria (RO) - Veneto

R&D CENTRES

MATER-BI PRODUCTION AND R&D ON ON INTERMEDIATES FROM RRM Terni - Umbria

BIOTECHNOLOGY RESEARCH CENTRE Piana di Monte Verna (CE) -Campania

MATER-BIOPOLYMER (78% NOVAMONT)

PRODUCTION OF

POLYESTERS FROM VEGETABLE OILS

Patrica (FR) - Lazio

HEADQUARTER AND RESEARCH CENTRE

Novara - Piemonte

NOVAMONT’S SITES

SUBSIDIARY COMPANIES

NOVAMONT’S NETWORK

JV NOVAMONT/VERSALIS

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3 R&D Centers (Novara,

Caserta, P.to Torres)

20% of people in R&D

activities

>6% of turnover in R&D

activities

About 1.000 patent

cases filed

R&D WHO WE ARE

NOVAMONT: A KNOWLEDGE-BASED INDUSTRY

4 production sites

3 technologies in place,

1 at start-up level

7 reactive extrusion lines

(95.000 t/a)

4 discontinuous

polymerization lines

(10.000 t/a)

1 continuous

polymerization line

(50.000 t/a)

INDUSTRIAL STRUCTURE

GROUP PROFILE

Pionieer and world

leader in the

development of

bioplastics and

bioproducts

Turnover (2015): 170M€

600 people

7 A WORLWIDE COMPANY

NOVAMONT S.p.A. Novara (Italy)

NOVAMONT FRANCE Paris (France)

NOVAMONT Representative office Bruxelles (Belgio)

SITES OUTSIDE ITALY

BUSINESS NETWORK

NOVAMONT NORTH AMERICA INC. Shelton, CT (USA)

NOVAMONT GMBH Eschbon (Germany)

Lebanon, Tennessee (USA)

HEADQUARTERS

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M&G

50%

VERSALIS

50%

MATRICA

NOVAMONT France

NOVAMONT GmbH

MATER BIOTECH

MATER BIOPOLYMER

22% GENOMATICA

100% 100% 100% 78% 100%

NOVAMONT North America

NOVAMONT AGRO

DIVISION

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FROM MATER-BI TO BDO:

SOLUTIONS NOT JUST PRODUCTS

10 WHERE WE STARTED FROM TURNING A PROBLEM INTO AN OPPORTUNITY: THE EXAMPLE OF BIOWASTE

ORGANIC WASTE IN LANDFILL

The landfill gas produced by biowaste consists

mainly of methane, which is 23 times more

powerful than carbon dioxide in terms of climate

change effects in the 100-years time horizon

(source: IPCC)

If not collected properly, leachate can

contaminate groundwater and soil

Landfilling means irrecoverable loss of resources

and land

COMPOST AS DRIVER FOR SOILS FERTILITY

Quality soil conditioner to be used in agriculture

to combat desertification and soil erosion

Carbon sink effect

In some EU countries compostable bioplastics

have become an integrating element in the

biowaste management thanks to an overall

agreement with the composting network

Cases of excellence where composting and AD

transform biowaste into new resources, such as

biogas and high quality compost, thereby closing

the organic carbon cycle of the bioeconomy

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AZELAIC ACID PELARGONIC ACID

OTHER CHEMICAL INTERMEDIATES

(Matrica )

NOVAMONT’S PROPRIETARY TECHNOLOGIES UPSTREAM INTEGRATION 1989-2016

BIOBDO

4TH GENERATION MATER-BI C14 > 70%

3RD GENERATION MATER-BI C14 > 50%

2ND GENERATION MATER-BI C14 > 40%

1ST GENERATION MATER-BI C14 > 25%

SPECIALISED SEEDS

DEDICATED CROPS AND

BIOMASS TREATMENT

SEEDS CRUSHING

CHEMICAL PROCESSES

POLYESTERS FROM RRM

COMPLEXED STARCH

BIOTECH PROCESSES

12 BIO-BDO CARBON FOOTPRINT

The carbon footprint of bio-BDO is shown in this graph.

The first bar shows the cradle-to-gate CF of the current bio-BDO.

The second bar shows the expected CF in the next months.

The third and the forth bars represent the impact of fossil BDO produced with traditional processes at global or European level, respectively.

A difference of 56% is achievable when passing from the fossil-based BDO produced at global level to the bio-BDO to capacity.

Δ -56%

13 THE NEW GRADES OF MATER-BI OF 4TH GENERATION BIO-BDO (MATER-BIOTECH) AND AZELAIC ACID (MATRìCA) EFFECT

4TH GENERATION MATER-BI % OF RENEWABLE CARBON

(C14)

RELATIVE SCALE OF

CO2 EMISSIONS IN KG CO2/KG

(CRADDLE TO GRAVE)

Shopping bags grade >60 <40

Fruits & Vegetables grade >60 <40

Biodegradable products today in the market for same applications

<30 100

14 BIO-BDO MARKET

ESTIMATED ANNUAL GROWTH BDO DEMAND: 5-8%

TOTAL MARKET 2,000 MMT

BDO DERIVATIVES AND USES:

Tetrahydrofuran (THF): PTMEG (poly

THF) spandex (e.g. Lycra),

solvents

Polybutylene terephthalate (PBT ):

automotive plastics, cell phones, PCs

Gamma-butyrolactone (GBL): PVP

polymers, solvents

Polyurethanes (PU): engineering

thermoplastics, coatings

THF MERCHANT

8%

PBT 23%

PU/TPU 11%

NMP 9%

GBL (INCL. POLYMERS)

8%

OTHERS 1%

BIOPLASTICS 3%

PTMEG 37%

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MATER-BIOTECH

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INTEGRATION OF CHEMICAL PROCESSES WITH INDUSTRIAL BIOTECHNOLOGY

MATER-BIOTECH

Optimization of the production process life-cycle through the reuse of the process by-products for the plant energy demand

Integration of Novamont’s know-how and competences in the development of low-impact production processes through an innovative technology developed by Genomatica, leader in the specialization of microorganisms for fermentation processes

Regeneration of the former BioItalia/Ajinomoto site in Adria, after the shut-down of the fermentation plant in 2006

First dedicated industrial plant at world level for

the production of butanediol (1.4 BDO) directly

from sugars

INVESTMENT > 100 MILLION EURO

PRODUCTIVE CAPACITY: 30.000 TONS/Y

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12 TONS

OF LANDFILLED WASTE

350 TONS

OF ASBESTOS

150 TONS

OF SLUDGE

1,150 TONS

OF WASHING WATER 300 TONS

OF OTHER SUBSTANCES

THE REGENERATION PROCESS THE PLANT CONDITIONS

18 THE START-UP OF THE PLANT

2006 2012 2014 2016 2017 1992

ACQUISITION BY THE JAPANESE CORPORATION AJINOMOTO (LYSINE PRODUCTION)

BIRTH OF THE INDUSTRIAL SITE

IN BOTTRIGHE (MONTESI GROUP -

PRODUCTION OF GLUTAMATE)

AGREEMENT WITH GENOMATICA

START OF THE SITE

REGENERATION

FIRST BDO INDUSTRIAL

PRODUCTION

SEPT 30TH: GRAND OPENING

FROM MAY 16TH TO JUNE 10TH: WATER

BATCHING FROM JUNE 13TH TO OCT 2ND: WHITE TEST

FULL PRODUCTION OF BIO-BDO

1960

TIMELINE

SHUT-DOWN OF THE FERMENTATION

PLANT. ACQUISITION BY BIOITALIA

COMPANY

NOVAMONT ACQUIRES THE PLANT.

CREATION OF MATER-BIOTECH

JULY 18TH: START-UP

FROM JULY 18TH TO OCT 3RD: RAMP-UP

19 EMPLOYMENT

TECHNICAL HIGH-

SCHOOL DIPLOMA

65%

UNIVERSITY DEGREE

15%

NO DIPLOMA OR DEGREE

20%

QUALIFICATIONS (MATER-BIOTECH)

CHEMICAL INDUSTRY

48% PHARMACEUTICAL

INDUSTRY 26%

ENERGY INDUSTRY

7,5%

OTHER 18,5%

SECTORS OF ORIGIN (MATER-BIOTECH)

MATER-BIOTECH: 72 PEOPLE SATELLITE ACTIVITIES: 150 PEOPLE

20 STAFF GEOGRAPHICAL ORIGIN

DISTANCE OF THE STAFF GEOGRAPHICAL ORIGIN:

< 10 KM 41%

< 30 KM 26%

< 50 KM 13%

> 50 KM 20%

AREAS OF THE STAFF GEOGRAPHICAL ORIGIN:

ROVIGO

FERRARA

PADOVA

VENEZIA

Venezia

Padova

Ferrara

Rovigo

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CONCLUSIONS

22 NEW PRODUCTS NOW AVAILABLE AT EU LEVEL THE TANGIBLE RESULT OF THE BIOECONOMY INFRASTRUCTURES NOW IN PLACE IN ITALY

AZELAIC ACID

C5-C9 ACIDS POLYMERIC PLASTICISERS

BIO-BDO

CARDOON OIL PROTEINS FOR ANIMAL FEED

ACTIVE MOLECULES

MARKET SEGMENTS

Oleochemistry

Energy industry

Packaging manufacturers

Retail market

Waste management &

multiutilities companies

Machine producers

Food brands

Feed

Farmers & sheppards

Maritime

Herbicides

PELARGONIC ACID

www.novamont.com

THANKS FOR YOUR ATTENTION

“The challenge of our millennium is in the balance between the technical means that humanity possesses and the wisdom in how we will make use of them”

UMBERTO COLOMBO