VALCHEM AND THE NEED OF TEST BEDS

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VALCHEM AND THE NEED OF TEST BEDS Action title: "Value added Chemical building blocks and lignin from wood" Grant agreement no: 669065 Project coordinator: UPM-KYMMENE OYJ Project duration: 01/07/2015 30/06/2019 Bioekonomiriksdag Örnsköldsvik, 14-15 Mars 2017 Dr. Peter Röger Project Coordination Project Data Funded by the BBI-JU under the EU s Horizon 2020 program 13.1 million funding 18.5 million total project budget Project period 4 years (1.7.2015-30.6.2019) Consortium of four partners UPM Finland METEX France SEKAB Sweden TUDA Germany 2 UPM UPM 1

Wood - Sustainable and Reliable Sustainable A renewable option to replace fossil feedstocks in the production of chemicals and materials No overlap with the food-chain Forests have biodiversity and recreational value Wood will be sourced from sustainably managed forests PEFC TM and FSC certified Reliable Limited price-volatility Long-term supply contracts Available year-round Well established supply chain Relatively easy to transport and store 3 UPM Partnering along the Value Chain from Forest to final Products Wood Supply Integrated Biorefinery Sugar Upgrading Sugar to MPG process Products Customer Involvement MPG buyers Consumer good MPG Drop In CBB Wood Disintegration Applications Upgrading Modification formulation Final product Performance Chemical ValChem combines competencies of forest, chemical and bio-tech industries 4 UPM UPM 2

14/03/2017 Objectives of the ValChem Project The individual process technologies have been piloted or demonstrated before. ValChem objectives are: Demonstrate technical and economic viability of a sustainable and integrated process from wood to bio-mpg and lignin-based performance chemicals Demonstrate the suitability of such bio-chemicals for downstream processes and applications in terms of quality and production cost Achieve readiness to invest in a Wood-to MPG flagship plant 5 UPM Challenges Cost competition with fossil value chains 6 UPM UPM 3

14/03/2017 Cost Competition with Fossil Value Chains Production cost, technology and product quality have to be competitive. 7 UPM Challenges Cost competition with fossil value chains Access to cost efficient biomass valorization Efficiency improvements in the processing of wood into bio-chemicals Combination and integration of the different technologies 8 UPM UPM 4

Need for Test Beds Why Test- and Demo-Facilities? 9 UPM In the development of a new value chain Demo-Facilities are essential to.. Demonstrate realistic equipment Mitigate scale up risks Improve technical maturity of the process Develop operating procedures Generate data at sufficient accuracy for engineering To enable engineering of a commercial size plant To determine accurate capex and opex Demonstrate yields e.g. for profitability calculations Produce sufficient quantities of materials for Downstream demonstration Biorefinery integration demos 10 UPM UPM 5

The Integrated Biorefinery sugars Process and site integration are key to efficiency 11 UPM ValChem Work Packages using Pilot- and Demo-Plants WP6 Site and process integration UPM, SEKAB, METEX WP1 Raw material supply chain WP2 Wood disintegration process SEKAB WP3 Sugar upgrading UPM WP5 upgrading UPM WP4 Sugar to mono propylene glycol METEX WP7 applications WP8 Marketing and end-user involvement WP9 WP10 Life cycle analysis Project management 12 UPM UPM 6

More Information ValChem website: BBI-JU: Framework Horizon2020: www.valchem.eu http://bbi-europe.eu/ http://ec.europa.eu/programmes/horizon2020 Juuso Konttinen, Vice President, UPM Biochemicals juuso.konttinen@upm.com Thore Lindgren. Executive Vice President, Sekab thore.lindgren@sekab.com Manuela Falempin, Business Development Manager, METabolic EXplorer, mfalempin@metabolic-explorer.com Prof. Dr. Markus Biesalski, Technische Universität Darmstadt biesalski@tu-darmstadt.de 13 UPM Acknowledgements This project has received funding from the Bio Based Industries Joint Undertaking under the European Union s Horizon 2020 research and innovation programme under grant agreement No 669065. Disclaimer: This presentation reflects only the author's view. The JU is not responsible for any use that may be made of the information it contains. UPM 7