Prospects for Bio-based Chemicals in India: GENO BDO and Beyond

Transcription

1 Prospects for Bio-based Chemicals in India: GENO BDO and Beyond Ryan Beltramini Associate Director, Business Development Indian Petrochem 2014 October 31, 2014

2 Biotechnology Partner for the Chemical Industry enabling industry transformation to greater sustainability from fossil fuels to alternative feedstocks large existing markets exact same chemicals better economics smaller footprint

3 Global Partnering to Drive Commercialization demonstrating strong early demand for Genomatica process technology

4 Genomatica Recognized as a Clear Leader >20 awards recognize technology platform, BDO process, corporate culture 2014 Winner 2014

5 1. Case Study: BDO Commercialization

6 1 st Commercial Scale: The GENO BDO Process direct & bio-based Sugars Biomass A better way to make BDO: Better economics Smaller environmental footprint Safer

7 Existing BDO Value Chain GENO BDO TM process enables differentiation and sustainability GBL Gamma-Butyrolactone THF Tetrahydrofuran 1,4-Butanediol (BDO) Spandex / Elastane PBT Polybutylene Terephthalate Polyurethane Direct use Derivatives Downstream Copolyester

8 GENO BDO TM Process Commercialization Journey 5 years from concept to commercial production BDO Producing Organisms 2008 Purified BDO ,000 Liter Piloting 2010 Integrated Demo Plant 2011 Shipping Tons at a Time 2011 Commercialization 2012

9 Advantaged process technology - BDO cost-competitive; capital efficient; enhanced sustainability Cost Competitive Today Robust Improvement Path ($ / lb) ($ / lb) Lower Capital per Ton ($ / Ton, 50KT Capacity) ($ / Ton, 50KT Capacity) Price Price Cash Cost Cash Cost Leading Indirect Leading Bio- BDO Price BDO Price Petro BDO Petro Technology Technology Historical Base Case Projection Upside Case Projection Historical North America Base Case Europe Projection Upside Case Projection North America Europe Indirect Bio- BDO Technology

10 Commercial-scale Production 2.5kt in 5 weeks, Loudon-TN, produced Q4 12

11 Licensees for World Scale Production Facilities Commercial license to build a world scale production facility Produced first commercial volumes and now offering to customers Commercial-scale production of BDO 100% offtake secured

12 First Bio-BDO Plant under construction in Italy by Novamont (back integrate)

13 Validated Quality across Numerous Value Chains proven quality, usability for existing & eco-advantaged applications PBT, Molded engineering World-scale plant; customers using it New apparel COPE, plastics Spandex, LYCRA and more

14 GENO Process: A better way to make chemicals 2. What is Next: Other Programs

15 Second Process, Butadiene (BDE) fast start with $100M in industry support and commercialization intent Biotechnology Platform process technology lab-scale production $20B

16 Enabling On-purpose Production of Butadiene multiple approaches to find best tailored solutions Fermentable Sugars #1 fermentation 1,3-BDO Single-step Dehydration #2 Direct fermentation butadiene Fermentable C1 s (e.g. Methanol)

17 GENO Nylons: Significant New Development parallel development for multiple bio-based polyamide intermediates Direct pathways for on-purpose production GENO Process CPL HMD ADA Better economics Higher yield Issued Patents Improved safety & sustainability Proven technology platform ADA HMD CPL No Nox produced Reduce benzene supply concern Only process for direct production Break down technical barrier to entry (4 producers of ADN) No ammonium sulfate coproduct Reduce benzene supply concern 17

18 the most noteworthy chemical engineering technology commercialized in the world in the past two years 3. Feedstock: availability and impact

19 Feedstock Price, $/ton Using technology to unlock feedstock potential dampening raw material volatility 1000 Dextrose Sugar #11 WTI Crude Butane Dec-08 Jul-09 Jan-10 Aug-10 Feb-11 Sep-11 Apr-12 Oct-12 May-13 Nov-13 Jun-14

20 Commercial vs. Developing Feedstock Corn Sugarcane Sugar beet Wheat Cassava Sweet Sorghum Cellulosic Wood o Poplar o Willow Ag Wastes o Corn Stover o Bagasse o Corn Cobs o EFBs Switchgrass Now Under Development

21 Sugar Available Globally for Chemical Projects world sugar production and net exports Access to the 175 million ton world sugar market via multiple players in key geographies United States Production Net Exports European Union Production Net Exports China Production Net Exports 6.9 Mexico India 10.9 Thailand 8.7 Production Net Exports Brazil 0.2 Production Net Exports 38.8 Production Net Exports Australia 27.3 South Africa Production Net Exports Production Net Exports Production Net Exports Note: Numbers in millions of tons.

22 4. Sustainability Matters: Differentiation Demand

23 72% of producers to offer more sustainable chemicals within two years Yes, we already are 31% Yes - within the next year 14% Yes - within the next 1-2 years 27% No 13% Don't know 16% Q. Do you expect to offer more sustainable versions of chemicals? Base: producers of chemicals (177) 23

24 Producers: 80% of chemical users have same or higher interest in sustainable chemicals than just one year ago Much greater now 10% Slightly greater now 26% Stayed the same 44% Slightly lower now 13% Much lower now 7% Q. In the last year, how has the level of interest your customers have shown in sustainably produced chemicals changed? Base: producers of chemicals (145) 24

25 75% of users to offer products made with sustainable chemicals within two years Yes, we already are 33% Yes - within the next year 17% Yes - within the next 1-2 years 25% No 9% Don't know 15% Q. Do you expect to use more sustainable versions of chemicals to make your products? Base: users of chemical products/distributors (323) 25

26 Technology developers for sustainable chemicals: Genomatica climbs to fifth-highest 32% 25% 21% 12% 6% 5% 5% Q. When you think of technology developers for sustainable chemicals, which companies come to mind? 26

27 The Indian Opportunity Atmosphere Same great products but made a better way Reduced CO 2 emissions via crop sequestration Bio-Chemical Production Feedstock Growth Renewable Feedstock Feedstock Security regional connectedness between supply & demand Improved human health and ecosystem quality Opportunity for continued optimization Supplying the World Rural Job Creation new industry development Note: Bio-chemical plant photo sourced from DuPont Tate & Lyle facility in Loudon, Tennessee, USA.

28 Genomatica s Innovation Center, San Diego, CA Come visit us Contact: Ryan Beltramini rbeltramini@genomatica.com