The sunliquid Process: Bringing New Proven Solutions for Commercial Cellulosic Ethanol Production Bio World Congress 2017 Montreal, Canada Clariant Group Biotechnology - July 25, 2017
2 Clariant at a glance A GLOBALLY LEADING COMPANY IN SPECIALTY CHEMICALS 5847 263 4 Sales 2016 (CHF m) from continuing operations Net result 2016 (CHF m) from continuing operations Business Areas 887 EBITDA 2016 (CHF m) before exceptionals 15.2% EBITDA margin 2016 before exceptionals 140 in 53 17442 companies countries Employees 2016
3 The sunliquid process for cellulosic ethanol HIGH PERFORMANCE TECHNOLOGY PACKAGE 1 2 3 Best in Class Technology The only validated integrated technology solution Clariant: your committed partner for commercialization
4 1 Commercially Best in Class FULLY INTEGRATED SUNLIQUID PROCESS The chemical-free mechanical and thermal pre-treatment enables an optimal hydrolysis. Purification steps are unnecessary and makes for a safer and more environmentally friendly process. Integrated Enzyme Production Through the process integrated enzyme production costs can be reduced to a minimum. Enzymes are produced exactly when and where needed, there are no costs for logistics or formulation and no dependence on external suppliers. Clariant can quickly adapt enzymes to new feedstock and process conditions. This achieves a most efficient hydrolysis with maximum yields and makes the process flexible for different boundary conditions. The organism used for fermentation is highly optimized and able to simultaneously ferment both C5 & C6 sugars in a one-pot reaction. Thus the ethanol yield increases by 50% compared to only C6 fermentation.
5 1 Commercially Best in Class CHEMICAL-FREE PRE-TREATMENT CHEMICAL COST COMPARISON CHEMICAL-FREE PRE-TREATMENT BENEFITS Overall chemicals savings of up 50 % (~0.11 USD/gal) +50% Using only standard equipment from Paper and Pulp industry Risk Mitigation on chemical handling and up-scaling sunliquid competitors Clariant pre-treatment offers lower CAPEX, reduced OPEX and mitigates risks
6 1 Commercially Best in Class INTEGRATED ENZYME PRODUCTION ENZYME COST COMPARISON* INTEGRATED ENZYME PRODUCTION BENEFITS -23% -52% Pre-treated biomass as source No enzyme formulation & stabilization No Transport Advanced enzyme performance through feedstock & process specificity Ensures flexible on-site supply, continuous performance improvement, and cost efficiency Offsite Onsite Integrated * includes all operating and capital cost, but does not include transport cost for offsite enzymes which will further increase costs SOURCE: Integrated enzyme production lowers the cost of cellulosic ethanol by Eric Johnson http://onlinelibrary.wiley.com/doi/10.1002/bbb.1634/full
7 1 Commercially Best in Class FEEDSTOCK & PROCESS-SPECIFIC ENZYMES SUGAR YIELD COMPARISON SUNLIQUID ENZYMES BENEFITS 90% Theoretical yield (100 %) Feedstock and process specific enzymes show superior performance 78% Higher sugar yields (>90%) ensure overall efficiency of process Commercial enzymes sunliquid enzymes Optimal enzyme loading* leads to approaching the theoretical yield sunliquid offers highest performance & maximum yields Performance at ideal enzyme loading* * Enzyme Loading: enzyme per substrate in %
8 1 Commercially Best in Class ECONOMIC BENCHMARKING Cost estimates for different technologies COST FOR DIFFERENT TECHNOLOGIES MAJOR COST AND PERFORMANCE BENEFITS Total costs per l EtOH incl. 10 year-depreciation sunliquid Top Competitor A Top Competitor B Integrated enzyme production: no enzyme supply cost and exposure Highest yields per feedstock employed through Clariant s advanced, feedstock specific enzymes and yeast Chemical-free pre-treatment: reduced overall chemical costs Top Competitor C Top Competitor D Top Competitor E Competitive to 1G ethanol and most competitive amongst 2G ethanol technology providers 1G ethanol price
9 2 The only validated integrated technology solution ADDRESSING TECHNICAL ISSUES OF THE INDUSTRY STATE OF THE INDUSTRY 6 Built commercial scale plants? Only very few tons produced What are known technical issues of the industry? Biomass transportation within plant (e.g. clogging, abrasion ) Solutions Optimal process established after performance testing of various components & materials Specific & custom-developed equipment used for pre-treatment Process steps not harmonized to each other Pre-treatment process designed using commercially established and proven equipment From the beginning all process steps were co-developed towards a fully integrated solution
10 2 The only validated integrated technology solution THE SUNLIQUID PRE-COMMERCIAL PLANT 2012 up to 1,000 ~ 4,500 ~ 4 Start of operation at pre-commercial plant t/a output of ethanol t/a feedstock * * (cereal straw, corn stover, sugarcane bagasse & others) Years confirmation of commercial-scale design
11 2 The only validated integrated technology solution PROVEN PERFORMANCE RUNS PERFORMANCE RUNS KEY ACHIEVEMENTS 4 years of performance runs at precommercial scale plant on different feedstock Equivalent to up to 300 liter Ethanol per ton of dry bagasse Successful conversion of 45 containers of sugarcane bagasse and straw from Brazil Best process conditions were optimized and defined particularly with Pre-Treatment Extensive experience in handling of feedstock variations in quality and composition Front-end feedstock loading of bagasse and straw validated with know-how developed on quality control Successful and stable fermentation with yeast recycling that included wild type yeasts Ethanol fermentation yield of 48 % with Clariant s proprietary yeast of a theoretical max of approximately 50 % 95 % sugar recovery in solid-liquid separation Dry lignin cake was obtained and successfully burned in CHP plant (both fluidized bed and grate boilers) Vinasse used in fertilizer field tests
12 2 The only validated integrated technology solution SUNLIQUID ETHANOL COMMERCIALLY DEPLOYED APPLICATION AS CAR FUEL APPLICATION AS CLEANING AGENT Gasoline-Ethanol blend containing 20 % cellulosic ethanol from Clariant s precommercial plant was tested in Mercedes fleet Test showed attractive environmental profile Today s vehicles can already use E20 blends sunliquid cellulosic ethanol from straw replaces 100 % of conventional ethanol in Frosch Multisurface-Cleaner (by Werner & Mertz) World s first cleaning solution with cellulosic ethanol
13 2 The only validated integrated technology solution SUNLIQUID ETHANOL COMMERCIALLY DEPLOYED APPLICATION AS TRUCK FUEL - Since its implementation, the partnership with Scania for the ethanol-powered trucks used at the Clariant Suzano Brazil plant has reduced CO2 emissions by approximately 90% - The ethanol fuel used is manufactured with the Master Batch ED 95 additive produced by Clariant in Brazil - The Ecotrucks, as they are known, started using second-generation ethanol produced from sugarcane bagasse using Clariant's sunliquid technology
14 3 Your committed partner for commercialization A GLOBALLY LEADING COMPANY IN SPECIALTY CHEMICALS 5 847 263 4 Sales 2016 (CHF m) from continuing operations Net result 2016 (CHF m) from continuing operations Business Areas 887 EBITDA 2016 (CHF m) before exceptionals 15.2 % EBITDA margin 2016 before exceptionals 140 in 53 17 442 companies countries Employees 2016
15 3 Your committed partner for commercialization GROUP BIOTECHNOLOGY Munich R&D Center Since 2006 118 employees Lab and office space: 6,500 m² Pilot plant since 2009 Over 15 different feedstock tested on pilot-scale Straubing pre-commercial plant Since 2011 22 employees Area: 2,500 m² Wheat straw, corn stover, and sugarcane bagasse and straw converted to Ethanol
16 3 Your committed partner for commercialization SUNLIQUID EN ROUTE TO COMMERCIALIZATION PRE-COMMERCIAL PLANT OPERATIONAL Capacity 1,000 t/a Ethanol Validation on wheat straw E20 FUEL TESTING With Mercedes Benz & Haltermann PROCESS DESIGN PACKAGE For commercial-size plants COOPERATION WITH WERNER & MERTZ sunliquid ethanol in cleaning supplies GERMAN INNOVATION PRICE for Climate & Environment (IKU) 2012 2013 2014 2015 2016 FEEDSTOCK VALIDATION Corn stover & sugarcane bagasse PERFORMANCE RUNS With sugarcane residues (bagasse, tops & leafs) With wheat & barley straw ISCC CERTIFICATION OF PLANT
17 3 Your committed partner for commercialization PROCESS DESIGN PACKAGE Technological blueprint Comprehensive process design for 50.000 to 150.000 metric tons of cellulosic ethanol production Modular concept Standard, proven hardware For a 50 kt/a plant, a footprint of approx. 14 18 acres (5.5 7.5 ha) is required
18 3 Your committed partner for commercialization OFFERING A COMPREHENSIVE PACKAGE Integrated Technology Package: Integrated process technology package including all steps along the ethanol production chain Starter cultures for proprietary process-integrated enzyme production Starter cultures for the proprietary fermentation organism which converts C5 and C6 to ethanol Energy efficient design to ensure overall cost efficiency Service Package: Develop project customized to specific needs of client Process Design Package to provide technical specifications and input for engineering Testing of customer-specific feedstock in our pre-commercial plant and pilot plant Support for feedstock logistics and sourcing, off-taking and regulatory affairs Training of customer employees in pre-commercial plant
19 sunliquid : high performance technology package BENEFITS IN A NUTSHELL 1 Commercially Best in Class Fully integrated process ensures cost and performance efficiency Most competitive amongst 2G ethanol technology providers 2 The only validated integrated technology solution Problems seen in the industry tackled and solved True and diligent technology validation through performance runs at pre-commercial plant 3 Clariant as your committed partner for commercialization Global network and outreach Offering a comprehensive package around technology and services
20 Commercial site location characteristics for potential licensors Feedstock Products Yearly feedstock dry tons ~250,000 Feedstock 1 (corn, wheat, sugarcane, rice) Straw Feedstock 2 Bagasse Main product ~50,000 t Ethanol Side product ~100,000 t Lignin (dry) Side product ~50,000 t Vinasse (dry)
21 ILUC decision creates market for advanced biofuels Status of ILUC implementation in the EU-28 Mandate adopted Mandate proposed Discussion favourable to 2G Non EU 1 plants 2-5 plants 6-20 plants >20 plants non-binding target 0.5% per 2020 adopted binding target 3,6% per 2030 proposed - binding EU target for adv. biofuels will be implemented, currently volumes & timing unclear. ** 0,5% advanced biofuels corresponds to a potential of 45 advanced biofuel plants in Europe* * based on energy consumption in transport Eurostat 2015 of 359 mtoe, 0,8 tethanol/toe, 50kta plant size ** Mandate in France includes includes molasses and C-starch Germany adopted its climate protection plan for 2050 with GHG reduction targets for the transport sector. The German gov. recognizes adv. biofuels as one important solution to curb emissions from transport sector in addition to electro mobility.
GHG profile of sunliquid cellulosic ethanol technology Bio World Congress 2017 Montreal, Canada Clariant Group Biotechnology - July 25, 2017
23 Confidential Sunliquid cellulosic ethanol is non-waste technology and with GHG savings over 95% Non-waste technology and energy self-sufficient Chemical free pretreatment Water recycling >90% No waste solid, water and gas All by-products with high value and usage without complicated downstream process Energy self-sufficient GHG savings of 95% Production of Ethanol from Wheat-straw (steam from straw CHP) (no allocation of agricultural cultivation) Version 3 - Overview Results GHG savings 95% All results in Non- allocated Allocation Allocated Total Allocation factors Emission reduction g CO 2,eq / MJ Ethanol results factor results Ethanol plant Fossil fuel reference (petrol) Cultivation e ec 0.0 100.0% to ethanol 83.8 g CO 2,eq /MJ Cultivation of wheat-straw 0.00 100.0% 0.00 0.0% to lignin GHG emission reduction Processing e p 1.3 95.4% Ethanol plant 1.34 100.0% 1.34 Transport e td 2.5 Handling & storage of wheat straw 0.16 100.0% 0.16 Transport of wheat straw 0.82 100.0% 0.82 Calculations in this Excel sheet Transport of ethanol 1.10 100% 1.10 strictly follow the methodology as given in Filling station 0.44 100% 0.44 Directives 2009/28/EC and 2009/30/EC Land use change e l 0.0 100.0% 0.0 0.0 follow JEC calculations by using GWP e sca + e ccr + e ccs 0.0 100% 0.0 0.0 values 25 for CH4 and 298 for N2O Totals 3.9 3.9 As explained in "About" under "Inconsistent use of GWP's"
24 Confidential sunliquid is certified as sustainable under high German standard ISCC certification Clariant certified the Straubing demonstration plant according to the ISCC-EU scheme (International Sustainability and Carbon Certification) Demonstrating the sustainability of the production and management system so that the produced cellulosic ethanol can be credited towards the target of the RED (EU Renewable Energy Directive 2009/28/EC) High GHG savings of sunliquid confirmed making it the most sustainable biofuel on the market
Sunliquid Derivatives Platform Bio World Congress 2017 Montreal, Canada Clariant Group Biotechnology - July 25, 2017
26 sunliquid is the ideal technology platform for highly sustainable bio-based products Biotechnology Catalytic conversion sunliquid Cellulosic sunliquid Sugars Cellulosic Ethanol Catalytic conversion sunliquid Sugar platform standalone Development opportunities for biobased products Extensive know-how in biocatalysis, strain optimization and heterogenous catalysis Biotechnology Catalytic conversion Bio-based chemicals
27 Clariant s sunliquid Cellulosic Ethanol Links with Partner Scientific Design s Catalytic C2-Technology Ethanol Ethylene Technology integration study has been completed between sunliquid technology & SD downstream conversion (including site retrofit and integration) Key facts about Scientific Design 50:50 Joint Venture between Clariant and SABIC Licenser of Ethylene Oxide/Ethylene Glycol Technology (SD awarded ~80% of non-captive licenses since 1980 with 30 licenses since 1990) Licenser of alcohol dehydration technology (SD awarded two ethanol-to-ethylene and six ethanol to EO/EG licenses since 2006)
28 Sunliquid Sugar platform Lignin Chemical-free pre-treatment Feedstock Pre- Treatment Hydrolysis Purification (optional) Concentration Fermentation (by Clariant customers) Integrated Enzyme Production Feedstock and process specific enzymes
29 The sunliquid sugar platform opens access to a large variety of biobased chemicals Thanks to the flexible process design, cellulosic sugars can be generated as an intermediate product within the sunliquid technology platform Specifications can be adjusted to the need of the added downstream processing. Alcohols Cellulosic sugars Organic acids Fatty acids Enzymes
30 sunliquid cellulosic sugars are a viable substrate for different fermentation applications Proof of concept: Validation of suitability of sunliquid hydrolysate in case studies: - Growth of production strains could be proven for several different applications - Good performance compared to synthetic medium - Flexible process strategies offer access to tailor-made sugar solutions - High optimization potential through process flexibility and strain development Alcohols Organic acids Fatty acids Enzymes synthetic reference* sunliquid hydrolysate * synthetic reference = pure glucose and xylose in water. Additional nutrients added where necessary for fermentation protocol.
31 sunliquid sugars can be optimized for a wide range of fermentations There are five main product groups present in sunliquid sugar solutions: Sugars (C6, C5) Salts (Na +, K +, Cl - ) Organic acids (Formic, acetic, ) Furan derivatives (HMF, Furfural, ) Phenols Depending on the specifications needed for each fermentation process, the solution can be optimized by different means to ensure premium performance: - Feedstock - Process conditions - Concentration - Established conditioning methods Quality specifications vs. economics is the key aspect
32 For further information please contact: Martin A. Mitchell Global Business Development Manager Group Biotechnology, Biofuels & Derivatives Clariant Corporation 309 Court Avenue Des Moines, Iowa 50309 USA Phone: +1 515 699 8518 E-mail: martin.mitchell@clariant.com For more information on sunliquid technology visit www.sunliquid.com