crossing the chasm to commercialization strategic partnerships · 2016 bio latin america conference...
TRANSCRIPT
2016 BIO Latin America ConferenceSao Paulo, Brazil
October 27th, 2016
Crossing the Chasm to Commercialization
Strategic Partnerships
We Live in a Different World…
It’s no longer a
choice; we must
achieve all three
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Health & Wellness
SustainabilityProfitability
Challenging for “green” technologies
S2G Vision…
High value-add for biorefinery C5 sugars
Sugar-free sweetener for healthy snacks and foods
Sustainable raw materials for packaging and products
Profitable projects
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Partnerships are important to cross
the chasm to commercial projects
Cost-effective and
economical conversion
technology for bio-
chemicals
S2G Biochemicals Inc.
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Founded in 2009
HO - Vancouver, Canada
Privately held
15 full-time/contract employees
Proprietary sugar conversion
technology
Validated technology at pilot and
commercial scales
Co-production of Xylitol & Glycol
Conditioning
• Remove
contaminants from
crude sugar liquors
or glycerol
Catalytic
Hydrotreating
• Converts sugar to
xylitol & mix of
biochemical glycols
Product
Separations
• Production of
purified end
products.
• Drop in
petrochemical
replacements
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Non-food C5 sugars
from biomass
Co-production of Xylitol
and Bio-glycols
Hydrogen
Waste glycerol from
biomass (optional)
S2G Xylitol & Bio-Glycol Process
Breakthrough technology
Co-production of xylitol &
bio-glycols
Sustainable – profitable,
carbon efficient, healthy.
Proven at pilot and commercial
scale
Value-add conversion process
for cellulosic sugars
US commercial project in
development
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• 4-year development
program
• $10+ million investment
• Developed in partnership
with Mondelēz International
• Patent pending & ready for
commercialization
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Competitive Advantages
• Sugars from biomass residues
• Low cost – available sugars
• Unique conditioning processes
Feedstock
• Highest xylitol recovery
• Highest carbon yield - glycol
• Product mix can be adjusted
Yield
• Biochemical glycols
• Maximizes product yield from biomass
• Additional revenue and margin
Co-
products
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Broad patent protection filed
S2G has exclusive worldwide rights
Value Add – C5 Sugars
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•Xylose
•Arabinose
•Glucose
•Mannose
•Plus lignin,
ash, etc.
C5
Liquors
• $3,000+/MT
• 140,000 MT/yr
• $0.6 B/yr
Xylitol
• Avg. $1,750/MT
• 2,000,000 MT/yr
• $4 B/yr
Propylene
Glycol
• Avg. $1,000/MT
• 15,000,000 MT/yr
• $25 B/yr
Ethylene
Glycol
• Competes with C6 sugars
• Lower yield/higher cost
• Value is capped
Ferment
Superior to
•$1500/MT
•2,200,000 MT/yr
•$4 B/yr
Sorbitol
… or
burn
Commercial Plants
• 10,000 100,000+ MT/yr of C5 sugars
• $20 million $200+ million revenue
• 33+% margin
• 25+% unlevered margin
• $50 million $300 million capital
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Large-scale, profitable projects
Strategy
Obtain off-take for products
Secure feedstock supply
Build scalable first commercial plant
– Leverage existing assets
License/build follow-on facilities
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Attract Strategic Partners & Investment
Strategic Partnerships
Specialty US chemical
producer/operating
partner
Existing infrastructure
to leverage Engineering partner
Global snack-food
partner
Off-take partner
Secure Supply & Offtake
C5 Sugar Sources:
Pulp mills
Cellulosic Ethanol Plants
Biorefineries
Several NA existing sources identified
Feedstock supply commitments in progress
Xylitol offtake – Mondelēz
Glycol offtake – Local bio glycol market
Scalable First Commercial Plant:
Project “BlueBelle”
Pennakem Site -
Memphis, TN, USA
Existing
infrastructure
Site of July 2016
commercial campaign
Leverage chemical
process familiarity
Central mid-west
location
Timeline
2016
• Project
Development
2017
• Engineering
• Demonstration
2018
• Construction of
1st Plant
2019
• Startup
Phase 1
• Expansion
2020
• Startup
Phase 2
• Project
Development
2nd Plant
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Questions?
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Kent Smith, P.Eng.
Director, Projects
S2G Biochemicals Inc.
Vancouver, BC CANADA
www.s2gbiochem.com