Understanding Biobased Aromatics Platts 2 nd Aromatics Asia Conference Kieran Furlong, Virent Inc. Virent 2014
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Case study Bio-based PET Virent 2014 4
What is PET? A B A B A B poly [ ethylene terephthalate ] ethylene glycol H 2 O terephthalic acid Virent 2014 5
PET Supply Chain Cracker Reformer Natural Gas Ethane Ethylene Ethylene oxide Ethylene glycol NGL Crude Oil Naphtha Pygas PET BTX PX PTA Reformate Virent 2014 6
Bio-PET Supply Chain Cracker Reformer Biomass Ethanol Ethylene Ethylene oxide Ethylene glycol Natural Gas Ethane Ethylene Ethylene oxide Ethylene glycol NGL Crude Oil Naphtha Pygas PET BTX PX PTA Reformate Biomass Reformate BTX PX Virent BioFormPX Virent 2014 7
Why bio-pet? Secure supply Proactive Reactive Reduce volatility Differentiate product Respond to competitors Lead in sustainability Combat packaging pressure Virent 2014 8
Why bio-pet? Secure supply Reduce volatility Differentiate product Respond to competitors Lead in sustainability Virent 2014 9
Why bio-pet? Reduce volatility Differentiate product Respond to competitors Combat packaging pressure Source: Wall Street Journal Virent 2014 10
US Sales Volume Dasani turnaround New York Times, Oct 20 th 2009 Mr. Kent said that sales of Dasani brand water in North America were down by more than 19 percent. Sales of multipacks of Dasani, a popular packaging for water, were down even more, he said. Muhtar Kent, Oct 2012 (KO earnings call) The rest of our North America water business grew 4% in the quarter, led by Dasani which maintained its premium price position and saw further gains across key brand equity measures driven by consumer awareness of our innovative plant bottle packaging. 2007 2008 2009 2010 2011 2012 2013 Virent 2014 11
Dasani has earned pricing power Nestle: $1.49/6-pack Dasani: $2.99/6-pack Fiji: $4.99/6-pack Results of a completely unscientific study carried out by me and my iphone at the supermarket across the street from my office in Madison, WI, USA on 29 th Aug 2014 Virent 2014 12
Source: Coca-Cola website, June 5 th 2013 13
30% bio-pet in products Virent 2014 14
& Virent partnership Coca-Cola supporting the commercialization of Virent s BioForm PX material for use in PlantBottle packaging Multi-million dollar, multi-year agreements with Virent announced in 2011 Joint Development Agreement Master Supply Agreement Additional investment to expand demonstration capabilities announced in September 2014 100% plant-based PET prototype bottles produced in partnership with FENC and Coca-Cola Virent 2014 15
Source: Coca-Cola Steady progress to 100% bio-pet 100% bio-pet Coca-Cola bottles made with Virent s BioFormPX material. Virent 2014 16
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Virent at a glance The global leader in catalytic biorefinery research, development, and commercialization Technology Partners & Investors Catalytically converting plant-based feedstocks to fuels and chemicals Location Infrastructure Madison, Wisconsin, USA 25x Development Pilot Plants 2x Larger Demo Plants Virent 2014 18
Virent s BioForming Technology Leading catalytic route to renewable hydrocarbon fuels and chemicals. 111 Issued/Allowed Patents, 176 Pending Patent Applications Eagle Virent s Biogasoline Demonstration Plant- Madison, WI Fast and Robust Inorganic Catalysts Moderate Conditions Industry Proven Scalability Energy Efficient Exothermic Low Energy Separation Low Carbon Footprint Premium Drop-in Products Tunable Platform Infrastructure Compatible Fuels and Chemicals Feedstock Flexible Conventional Sugars Non-Food Sugars Virent 2014 19
Virent Conversion Platform Fuels Fuels Ethanol 1 Order of implementation Ethanol Conditioning Aromatics Complex p-xylene Benzene Toluene Virent Aromatics Production Gasoline Conventional Sugars (Corn Starch, Cane Sugar, Beet Sugar) 2 Virent APR Processing Jet Aromatics (SAK) BIOMASS Third Party Deconstruction 3 Light Cycle Oil Gasoline BIOMASS Virent BIOMASS Deconstruction Virent Distillate Production Jet Fuel (SK) Tier 1 Feedstock Tier 2 Feedstock Virent Technology Industrial Solutions Diesel APR = Aqueous Phase Reforming SAK = Synthetic Aromatic Kerosene SK = Synthetic Kerosene
Virent High Aromatic BioFormate Typical petroleum-derived naphtha reformate High aromatic BioFormate Virent can optimize the BioForming process to increase the aromatics content (for chemicals production) or reproduce petroreformate profiles (for gasoline fuel production) Virent 2014 21
Simplified Mass Balance Carbohydrate to Aromatics Mass Flows Biomass Sugar cane Hydrogen 0.17 t Soluble Carbohydrate 2.6t Virent BioForming BioFormate (Liquid Hydrocarbons) 1t Aromatics Processing Paraxylene 0.65t Benzene 0.15t BioFuel 0.1t Corn Light Ends** Waste Water Light Ends 0.1t Specific Feedstock Consumption (mass carbohydrate per mass hydrocarbon) Carbohydrate Mass yield to liquid hydrocarbon Virent BioForming Best Theoretically Achievable 2.6* 2.3 38% 43% *Targeted Performance Virent 2014 22
BioFormPX product 100% Bio-based Paraxylene Virent 2014 23
Summary Bio-based aromatics can address some of the challenges facing the BTX value chain 30% bio-pet is already proving to be a success and there is great demand for 100% bio-pet Virent has developed a bio-based PX process Higher yields and feedstock flexibility Competitive pathway to PX Supported by The Coca-Cola Company Feedstocks and technology choice will vary Local availability & regional economics Feedstock perception by stakeholders Virent 2014 24
Source: Coca-Cola Thank you Kieran Furlong Director, Chemicals Virent, Inc 3571 Anderson St Madison,WI 53704 215-400-1074 kieran_furlong@virent.com www.virent.com 100% bio-pet Coca-Cola bottles made with Virent s BioFormPX material. Virent 2014