Virent is replacing crude oil. Louisiana Biofuels and Bioprocessing Summit September 11-12, 2012 Baton Rouge, LA Andrew Held Virent, Inc. Senior Director Feedstock Development Virent 2012
Virent at a Glance The global leader in catalytic biorefinery research, development, and commercialization Employees Partners & Investors 120 Employees Financial Infrastructure > $77 MM in Equity Funding > $75 MM in Gov & Industry 25x Development Pilot Plants 1x 10,000 gal/yr Demo Plant Virent 2012 2
BioForming Concept Process flexibility enables the production of gasoline, aromatic chemicals, jet fuel and diesel from a variety of raw materials. Biomass Cane Modified ZSM-5 Reformate Aromatics Gasoline Biomass Sugar Cane Aqueous Phase Reforming (APR) Feedstocks to APR include any water soluble carbohydrate. APR prepares biomass derived feedstocks for optimal conversion into hydrocarbons. Option for natural gas co-processing significantly improve yields and economics. Overall process efficiency > 85%. Corn Corn Condensation + Hydrotreating Distillate Jet Fuel Diesel Virent 2012 3
High Quality, Drop-in Fuels Premium Biogasoline 120,000 Btu/gal Virent Distillates Meet ASTM Specifications Virent Fuel in Scuderia Ferrari Race Fuel Energy Dense, Drop-in Fuels Virent 2012 4 Slide 4
Commercial Sugars and Cellulosics Virent 2012 5
Cellulosics Portfolio Approach Dilute acid and enzyme hydrolysis Cold Acid Solvent Extraction Wet oxidation and enzyme hydrolysis Catalytic Biomass Deconstruction Virent 2012 6
Fully Renewable Synthetic Jet Cellulosic Biomass to Jet Fuel, 3/26/2012 Analysis from Wright Patterson AFB Specification Test MIL-DTL- 83133G Spec Requirement JP-8 Physical and Chemical Properties Heat of Combustion (measured), MJ/Kg 42.8 43.3 43.3 Flash point, C 38 51 40 Freeze Point, C -47-50 <-60 Density @ 15 C, kg/l 0.775-0.840 0.804 0.805 Excellent freeze point and density due to unique Virent jet composition Distillation 10% recovered (T 10 ), C 205 182 164 EP, C 300 265 290 T 90 -T 10, C 22 62 86 Thermal Stability Temperature 260 C 325 C Tube Deposit Rating <3 1 1 Very high thermal stability Change in Pressure, mm Hg 25 2 0 Virent 2012 7
NABC (DE-AC36-08GO28308) Corn Stover Wood Pretreatm ent Hydroly sis Purifica tion HDO AC Aromatic-Rich Gasoline Blackbird (DE-EE0005006) Corn Stover Pretreatment Purification HDO DHOG Gasoline Jet Fuel Diesel Fuel Phoenix (DE-EE0005357) Corn Stover Bagasse Wood RCL AC Separat ions Para-xylene Benzene Fuel Co-product Virent 2012 The three projects above total more than $25 million; DOE support is >$20 million. 8
Sustainable Bioproducts Initiative LSU LED PROJECT - A REGIONAL PROGRAM FOR PRODUCTION OF MULTIPLE AGRICULTURAL FEEDSTOCKS AND PROCESSING TO BIOFUELS AND BIOBASED CHEMICALS USDA NIFA AFRI Bioenergy CAP: Award No. 2011-69005-30515 Timeline: 5 year project starting Q3 2011 Virent and team members will demonstrate agronomic, economic, technical, and sustainability attributes for energy cane and sweet sorghum to biofuels and bioproducts in the Southeast U.S. Energy Cane Sweet Sorghum Process -ing Purification Hydrocarbons Aromatics / Gasoline Distillate MS Process Economics Sustainability MS Process Virent 2012 9
World Petrochemical Market Approximately 300M tonnes in 2009 115 Mt/a Market value ~ US$400B (today) 70 Mt/a 11 Mt/a 40 Mt/a Virent focusing on BTX 23 Mt/a 40 Mt/a Ethylene Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics Assoc. Gases /Naphtha Crude Oil Natural Gas Liquids Virent 2012 10 Estimates of world demand, 2009 Sources: ICIS Chemical Business; BMI, CMAI.
Catalytic Processing Offers Flexibility to Replace More than Fuels Bio-reformate can replace typical reformate which is dominant feedstock for many chemicals, fibers, and plastics in use today 2.0E+07 11 % Benzene 38 % Toluene Benzene 1.8E+07 FID Response (Arbitrary Units) 1.6E+07 1.4E+07 1.2E+07 1.0E+07 8.0E+06 6.0E+06 Composition Shifted for Aromatics Production Optimized Product for Gasoline Blending Toluene Virent - TCCC Para-Xylene 4.0E+06 2.0E+06 0.0E+00 1.2% Benzene 12 % Toluene 0 5 10 15 20 25 30 35 40 45 Retention Time (Minutes) Product Composition Flexibility Meta-Xylene Ortho-Xylene Virent 2012 11
Current State-of-the-Art PET Petro-based feedstock PX Ethanol Ethylene Petro-based Bio-based feedstock PTA 69% PET Resin Bio- MEG MEG 31% 31% Today, the vast majority of PET is sourced from fossil derived feedstocks. Partially bio-based PET bottles (up to 30%) can be produced from MEG that is derived from ethanol. Blow molding Adapted from Coca-Cola website graphic Virent 2012 http://www.thecoca-colacompany.com/citizenship/plantbottle_basics.html 12
100% Renewable, Recyclable PET Petro-based Bio-based feedstock BioForm PX PX Ethanol Ethylene Petro-based Bio-based feedstock Bio- MEG MEG 31% 31% Bio- PTA PTA 69% 69% Bio-PET PET Resin Resin Virent technology for bio-based PX enables a 100% bio-based PET bottle that is: 100% Recyclable 100% Renewable Blow Blow molding molding Adapted from Coca-Cola website graphic Virent 2012 http://www.thecoca-colacompany.com/citizenship/plantbottle_basics.html 13 Slide 13
Economics Biomass Breakeven Cash cost breakeven for a Virent BioForming refinery producing aromatics. Crude Oil, $/BBL 120 110 100 90 80 70 60 Industry Projection Favors biomass Favors crude 0 50 100 150 200 250 Biomass, $/tonne Notes: *Product Values utilize historic Crude to Product Value Ratios from Mid 2007 to Mid 2010 *Major Utilities Cost Assumptions of $4/mmbtu NG and $0.07/kw-hr *Includes Variable and Fixed costs IEA Projection Virent 2012 14
Green House Gas (GHG) Emissions Cradle To Grave Analysis > 30% reduction > 35% reduction > 55% reduction Initial Virent internal GHG estimates conducted for one potential commercial plant configuration GHG emissions calculated based on economic allocation methodology (5 yr. price average) Utilized EcoInvent and GREET data in conjunction with GaBi software for GHG analysis. Does not include any transportation effects post-gate. Virent 2012 15
Summary Leading technology for catalytic conversion of plant matter to direct replacement hydrocarbons, including aromatics. Pursuing opportunities in aromatic chemicals as a first plant deployment Initial target is PX for the production of biobased PTA and PET. Establishing strategic partnerships to commercialize biobased aromatics production and supply chain. Advancing commercialization of Virent s liquid fuels technology with Shell. Pursuing additional fuel opportunities with other third parties. Developing pathways to advance integration with cellulosic feedstocks to further improve yields and profitability. Virent 2012 16
Thank you. Virent converts plant-based sugars into 100% renewable chemicals and fuels. Our biobased products are identical to those produced from petroleum direct replacements that utilize today s processing, storage and transportation infrastructure. Andrew Held, Senior Director Feedstock Development andrew_held@virent.com Virent 2012