BUSINESS SENSITIVE 1

Biobased Materials Research

History of BioproductsBiobased materials are not necessarily new. Mother nature provided our first biobased materials: (cotton, lacquers, rubber, wood)

The advent of synthetic polymer chemistry allowed us to prepare new materials from petroleum feedstocks which would be cheap with tailored functionality. We able to make things only limited by our imagination.

Now we are looking back to nature for our materials. We have a better understanding and appreciation of biobased feedstocks with the ready availability of chemical characterization that allows us to use these biobased feedstocks in place of petroleum building blocks.

BUSINESS SENSITIVE 2

Biobased Materials Research

The Need for Alternatives• To meet future

demand of chemicals & materials, biobased resources will compliment the existing petroleum supplies.

• Currently, biobased materials for product use is very low (~2%).

• In the future this is projected to be much more significant (~50%).

BUSINESS SENSITIVE 3

Biobased Materials Research

Critical Components of Biobased Development

Feedstock

• Cost• Availability

•driven by need•coproduct of another process

Technology Application

• Chemistry/ Engineering to Convert Feedstock

• Market• Improved

Performance

BUSINESS SENSITIVE 4

Biobased Materials Research

Bioproduct Success Factors

Economics-price

-market

Performanceoften means matching/exceeding petroleum

version

EnvironmentalIssues

-sustainability-health

Success Factors

• The success of new biobased materials relies upon the three factors:

• Economics & Performance are generally required elements.

• Environmental aspects are typically valued as added benefit.

BUSINESS SENSITIVE 5

Biobased Materials Research

Soybeans: Chemical Building BlocksSoybean Feedstock

• Protein• Oil• Carbohydrates

Coatings-Paints

-Powder Coatings

Toners Adhesives-Polyurethane

-PF/UF-Acrylate PSA’s

-Extenders

Foams-Soft-Rigid

Additives-Polyols

-Plasticizers-Pigment Dispersants

-Processing Aids-Fillers

Lubricants

BUSINESS SENSITIVE 6

Biobased Materials Research

Petrochemical Drop-In

• Break a biobased feedstock all the way down to a petro-derived molecule

• More chemical transformations needed

• No application development needed (ready market)

• No ability to use novel properties of biobased molecule

Novel Biobased Chemicals

• Selectively functionalize or simplify a biobased feedstock to create a useful chemical

• Fewer chemical transformation needed

• More application development needed

• Many times unique products functions are discovered

Development Philosophies

BUSINESS SENSITIVE 7

Biobased Materials Research

Petroleum Refinery vs. Biorefinery• Petroleum enters a

refinery as crude oil & exits as various products – the majority as fuels & the remainder as specialty chemicals.

• Something similar is needed for a “biorefinery” where a biobased feedstock is harvested and then is broken out into various products.

BUSINESS SENSITIVE 8

Biobased Materials Research

Biorefinery: Biodiesel Production• Biodiesel production

results in Glycerin as a main co-product.

• Biodiesel expansion will flood markets with a large, low-cost supply glycerin.

soybeans biodiesel glycerin (coproduct)

+

BUSINESS SENSITIVE 9

Biobased Materials Research

Biorefinery: Biodiesel Production• Biodiesel production

results in Glycerin as a main co-product.

• Biodiesel expansion will flood markets with a large, low-cost supply glycerin.

soybeans

soy oil soy meal

biodiesel glycerin (coproduct)

BUSINESS SENSITIVE 10

Biobased Materials Research

• Effectively utilizing glycerin for value-added applications will further support biobased products from soybeans.

glycerin(co-product)

Biorefinery: Biodiesel Production

BUSINESS SENSITIVE 11

Biobased Materials Research

Biorefinery: Biodiesel Production• Battelle has been

successful in developing two R&D100 award winning technologies based on glycerin:

- de-icing fluid

- reactive polyol which can be used in foams, coatings & adhesives glycerin

polyolde-icing fluid

foams adhesives coatings

BUSINESS SENSITIVE 12

Biobased Materials Research

Commercialization Model

DISCOVERY DEVELOPMENT COMMERCIALIZATION

R&D TechnologyDevelopment

ProductDevelopment Scale-Up

MarketingDevelopment

Plan

Manufacture,Sales, &

MarketingDistribution& Service

$250K –$1.5M

$750K –$2M

$2M–$10M

$10M–$100M

$100M–$500M

Battelle + Farmer Advocacy Groups

Battelle + Licensees

Licensees