On the 26th of Jnuary 2012, Squareiwse hosted the Squaretable event with the subject of Chemical Industry - New Customer Realities: Capturing Added Value from Sustainability

1. New Customer Realities:
Capturing Added Value from
Sustainability
Squaretable 26-01-2012
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2. Agenda
Time Programme
13:45 – 14:15 Welcome
14:15 – 14.30 Introduction Squarewise
14:30 – 15:00 Opening Squaretable
15:00 – 15:45 Key note - Gert Jan Gruter, CTO, Avantium
“Platform for the Future: sustainable bio-based solutions for the future in plastics”
15:45 – 16:00 Break
16:00 – 16:30 Dr. Ir. Mirjam Kibbeling, New Business Development, Van Gansewinkel
“Of Material Importance: from waste management to material and energy supply”
16:30 – 18:00 Plenary discussion
18:00 – 18:15 Closing remarks and round-up
18:15 – 19:15 Walking dinner
19:15 – open Networking drinks
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3. Introduction Squarewise
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4. Squarewise is driven by the understanding that organizations need new
capabilities to capture opportunities and maintain market leadership
Internal target setting Internal and External target setting (3P’s)
Structurally envision your
future and capture current
opportunities
Real-time, practical Reposition the
Redesign strategy development organization as
Excel in core processes and a network of
activities focus on Structurally develop supportive and
bottom line organizational capabilities competitive
to communicate and players
mobilize
in networks
Controlled experimenting
Market leader
e.g in cutting Operational Innovative organization
edge excellence
technology
4

5. Opening Squaretable
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6. Subject for discussion
“Capturing added value from new sustainability
driven customer requirements:
Reassessing value chain position and business
dynamics”
6

7. Value chain
Raw Materials
Production
Re-use &
recycling
Packaging &
Transportation
Customer use
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8. Changing consumer behavior towards sustainability centered demand:
dynamics in the food packaging industry
Ingredients: What the product contains
Barcode: Could also be a QRcode for extra info
Nutritional value: e.g. sugar, fat, carbs etc
Recipes: Possible uses of the product
Expiration date: Could change color depending on
date
Leading to...
Source: DSM Specialty Packaging
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9. Consumer driven value chain – traditional value chain dynamics change:
biological banana packaging
The plastic banana package features “Controlled
ripening technology” which extends the shelf life of
the fruit.
This technology could reduce the carbon footprint
by cutting back the frequency of deliveries.
It’s recyclable.
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10. Motivation
Call for action to generate solutions in times of great complexity
How to take advantage of sustainability and innovate further
Global chain alignment for longer-term look at sustainability value creation
World
Creating valuable solutions amid changing world/value chain dynamics
Finding the New Vibrant Ecosystem – from megatrends to business impact
Collective intelligence and collaborative spirit required to advance the entire
Outside- industry
in The shift in Value Distribution through Co-Creation ( new Value Chain Dynamics)
Reprioritize in the face of complexity
Opportunities beyond the Core and Business Model Adjacencies
Inside- Aligning Sustainability and Business Objectives
out
From complexity to clarity – way forward
Material Passport
Act Accordingly
Solution Value chain alignment

11. Discussion
1. Creating and capturing value from sustainability throughout the value
chain
What is your vision?
What is your role?
2. Drivers of sustainable development..
What? Performance? Price – green premium? Marketing?
Who? Market pull versus technology push
3. How to create synergy between the bio-based developments and
recycling initiatives?
4. How will this impact…
Your value chain position and business partners?
The value chain dynamics?
11

12. Avantium
12

13. Platform for the Future: sustainable bio-based solutions
for the future of plastics and other applications
Gert-Jan Gruter, Avantium
Squaretable sustainability, Amsterdam, January 26 2012.
13

14. Agenda
1. Introduction to biomass conversion bulk chemicals
2. Introduction to Avantium & YXY
3. Feedstock strategy
4. Carbon efficiency
5. Land required
6. Life Cycle Assessment
7. Economics
8. Way forward
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15. Bio-based chemicals playing field
Resources –availability & marketprice *
• Ethylene 100 Mio. t/a 1000 €/t
• Propylene 64 Mio. t/a 1000 €/t
• Benzene 23 Mio. t/a 900 €/t
• Terephthalic acid 55 Mio. t/a 1500 €/t (2012)
• Cellulose 320 Mio. t/a 500 €/t
• Starch 55 Mio. t/a 250 €/t (for current non food
applications)
• Sugar 140 Mio. t/a 250 €/t
• Ethanol 32 Mio. t /a 650 €/t
* Source: Nexant, 2007

16. Main (non fuel) conversions –
Carbohydrates (sugars)
Glucose fermentation followed by Chemical conversion
Ethanol ethylene PE (commercial; Braskem) (PE = 70 Mt/y)
EO EG (Coke, Danone: greening PET; plantbottle)
butylene/butanediol (Genomatica)
Butanol (BP/Dupont) x2 p-xylene PTA (Gevo) (PET = 50 Mt/y)
PTA + PG/BD (PPT/PBT = 3 Mt/y; Dupont)
Succinic Acid (DSM, Bioamber, Roquette, Mits.C.) butane diol (BD) THF
1,4-butanediamine (BDA)
Lactic acid/3-HPA (Cargill/Codexis) Acrylic Acid (AA; Ceres, Rohm&Haas)
1,3-PD (Braskem, Dupont, Tate&Lyle)
1,2-PD
cost targets: same or less than oil-based analogs (green premium??).
Typically 750-2000 €/ton
PE =Polyethylene; EO = ethylene oxide; EG = ethylene glycol; PET = Polyethylene Terephthalate; PTA = purified
Terephalic Acid; PG = propylene Glycol; BD = 1,4-Butane diol; PPT = polypropylene terephthalate; PBT =
polybutylene Terephthalate; THF = tetrahydrofuran; 3-HPA = 3-hydroxypropionic acid; 1,3-PD = 1,3-propane diol

17. Main (non fuel) conversions -
Sugars
Only Chemical catalytic conversion
• Acid catalyzed dehydration of carbohydrates
• Levulinic Acid/ester (Shell (fuel additives)/ Segetis (chemicals))
• MMF FDCA (Avantium) PEF (Avantium + Coke ++)
PA (Avantium + Teijin/Solvay/Rhodia); coatings/resins;
plasticizers)
• Aqueous Phase reforming to hydrogen, alkanes or aromatics (BTX)
Dehydration, aldol condensation & hydrogenation (Virent; fuels & BTX)
• Hydrogenation sorbitol/mannitol (Cerestar/Cargill; Roquette, Tate&Lyle)
(400kt/y)
1,2-PG
isosorbide (Roquette, Cargill)
• Retro Diels alder 2x C3 fragments (glycerol)

18. Main challenge: catalysis
Elemental composition of feedstocks
Crude oil Lignocellulose (wood)
C 85-90% 50%
H 10-14% 6%
O 0-1.5% 43%
CATALYST CATALYST
Oil (CxHy) chemicals biomass (CxH2xOx)
PROCESS PROCESS
e.g. C10H22 (alkane) e.g. C6H12O6 (glucose)
“under functionalized” “over functionalized”
(Hydro)cracking (Depolymerization &
Functionalization defunctionalization (O-removal)
O-introduction - decarboxylation (fermentation)
N-introduction - dehydration (water removal)
- oxidation, etc. - reduction (hydrogenation)
- C-C coupling
- water present !!

19. INTRODUCTION TO
AVANTIUM & YXY
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20. Avantium Chemicals Profile
• Spin-off from Royal Dutch Shell in 2000
• 120 employees; 5,200 m2 of high-tech laboratories and offices
• From 1 reactor in the • …to 64 parallel reactors in the
conventional way… Avantium way
• Created to develop new products and processes faster, more cost effective
and with a superior rate of success
• Petrochemical service business
• Own R&D program on biomass conversion

21. A Proven Approach
Avantium’s 10 year track record in catalyst and process R&D contract
research services demonstrates the value of its technology and expertise
• Over 25 oil, refinery and chemicals customers from all over the world
• High level of repeat business and customer loyalty
• Addressing industry’s need for improved, accelerated product & process
development

22. Company strategy
• Advance the product
development programs to
commercial viability
• Attract value-adding
partners for final
development and
Product
commercialization
development programs • Backed by strong financial
Biofuels program partners (€18M + €30M
Biobased polymers program rounds in 2008-11)
• Continue to expand the
Services & Systems profitable Services & Tools
business
Advanced high-throughput R&D • Continue to invest in further
strengthening the high-
throughput R&D technology

23. FDCA as substitute for terephthalic acid (50 Mt/y)

24. Moving to 100% biobased
• PET is the most widely used polyester made of PTA and EG
• Plantbottle launch in 2009 - PET with biobased EG and oil-based PTA
• PEF by Avantium: biobased FDCA + biobased EG = 100% green
100%
FDCA
PTA
PTA
Renewable
Oil-based
EG
EG
EG
0%
PET

25. Biopolymers and
Biodegradability
• Renewable (bio) and Biodegradable
– From renewable source (Starch, Protein, cellulose)
– 100% biodegradable and compostable (PLA)
• Renewable (bio) and NOT Biodegradable our
– From renewable source (PEF can be recycled) focus
• Non renewable (oil) and Biodegradable
– From petrochemical resource
– 100% biodegradable and compostable
– Polycaprolactone (PCL), Polybutylene Succinic
Adipate (PBSA) and other polyesters
• Non renewable (oil) and degradable
– From petrochemical resource
– Depolymerization (nylon)
• Non renewable (oil) and non-degradable
– From petrochemical resource
– not depolymerizable (PE, PP, etc)

26. YXY Technology
Conversion
Dehydration Oxidation Polymerization
Polyesters
Green
Carbohydrates RMF FDCA Polyamides
Materials/fuels
Polyurethanes
O O
O
O O
RO HO OH
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27. Lead application: PEF bottles
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28. “We’ve got barrier!”
Superior barrier & thermal properties PEF:
• O2 barrier > 6 times better than PET
• CO2 barrier > 3 times better than PET
• H2O barrier > 2 times better than PET
• Tg of PEF is 11°C higher than PET
• Tm of PEF is 40°C lower than PET
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29. Closing the loop
Recycling of PEF:
• Reprocessing: proven
• De-polymerization to monomers: proven
• PEF in PET recycle streams (1,2 and 5%) doesn’t
affect recycled PET performance
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30. PEF
The next generation bioplastic
By using FDCA as a biobased replacement for TPA it is
possible to produce PEF
PEF: the next generation polyester:
• 100% Biosourced (when using green MEG)
• Excellent properties (barrier, thermal)
• Very competitive process economics (to oil based TPA)
• 100% Recyclable
• Can be processed in existing supply chains
• Highly attractive carbon footprint
30

31. Building a PEF bottle Consortium
Objective
- PEF to become the new world standard for polyester bottles
- Accelerate road to mass scale production
- Ensure rapid adoption of PEF in recycling industry
Structure
- Partner with iconic brands to develop and commercialize of PEF bottles
Soft
Water
drinks
Alcoholic Non-
beverages food
Sauce
31

32. Avantium partnership with Coca-Cola
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33. 33

34. FEEDSTOCK STRATEGY

35. Feedstock strategy
Feedstock flexibility:
• Today: YXY technology can process currently available carbohydrate
feedstock from sugarcane, corn, sugar beet, wheat
• Tomorrow: When available, YXY technology can process future
carbohydrate feedstock from waste streams, agricultural waste, energy
crops, waste paper, etc
Avantium 2nd gen collaborations:
• ECN (hemi-cellulose, organosolv)
• Cosun (beet pulp)
• APC (Dutch Agro-Paper-Chemicals joint initiative)
• Avantium is working on samples from many 2ng gen BM tech developers.
Avantium continuously monitors new technologies
to get access to low cost carbohydrates
Relevant parameters for carbohydrate sourcing:
• availability and reliability of supply (quality !)
• price and price stability
• sustainability
“Don’t fall in love with one feedstock” 35

36. 2nd GEN. (APC - Dutch Agro-Paper-Chem)

37. Waste use (APC - Dutch Agro-Paper-Chem)

38. CARBON EFFICIENCY

39. Economics example
Economics can easily be estimated via mass balance
Example: bio-based p-xylene (for terephthalic acid (50 Mt/y) (“GEVO route”)
Step 1: Fermentation:
Glucose i-butanol + 2 CO2 (1 kg glucose yields max 420 g i-butanol at 100% yield !!)
Step 2-5: Chemical conversions
2 x i-butanol p-xylene (1 kg butanol yields
max 700 g p-xylene (at 100% yield)
Overall: max obtainable:
3.4 kg glucose 1 kg p-xylene.
Assume:
• Yield overall 65% (optimistic) 5.2 kg glucose required per kg pX
• Processing cost 50% & feedstock cost 50% (see analysis DOW)
Overall production cost PX = 10.4 x feedstock cost

40. Carbon efficiency of feedstock input
at 100% conversion
% Biopolymer
carbohydrates % CO2
% Water
This graph
represents the
“destination” of the
carbon and oxygen
of the carbohydrate
feedstock at 100%
conversion. It
doesn’t reflect the
CO2 emitted during
the whole process.
1. bPE: Polyethylene produced from bioethanol derived fro sugarcane (Braskem)
2. bPET: Poly-ethylene-terephthalate: produced from biobased PTA derived from iso-butanol (Gevo) and biobased MEG
3. bPEF: Poly-ethylene-furanoate: produced from biobased FDCA (Avantium) and biobased MEG. NB: CO2 emission for bPEF
is from MEG production only
40

41. Background on feedstock carbon efficiency
(at 100% conversion)
bioPE
– C6H12O6 2 H2O + 2 CO2 + 2 C2H4 (ethylene) PE
– 180 g CH (per mol) 56 g PE + 88 g CO2 + 36 g H2O
– 3.2 tons of carbohydrate required to produce 1 ton of PE
FDCA
– 1 C6H12O6 C6H2O5 ending up in polymer (+4H2O) (2O is introduced during
oxidation (and 4H leave as H2O))
– 180 g CH (per mol) 154 g “FDCA” in PEF
– 1.17 tons of carbohydrate contributes to 1 ton in PEF
41

42. Broad range of applications
42

43. Avantium and Rhodia (Jan 24 2012)
43

44. LAND REQUIRED

45. Example 1: Brazilian sugar
Brazil produces 570 million State of São Paulo
tons sugarcane per year (250.000 km2) is the most
important sugar producing
region: 350 million ton/yr
Full-scale FDCA plant: 300 kton/yr
Requires 600 kton of carbohydrates
per year = 4.3 million ton of
sugarcane
~1.2 % of São Paulo state production
~0.76 % of Brazilian sugar
production
45

46. Example 2: US corn
State of Iowa produces
USA produces >12 billion >2 billion bushels corn
bushels corn per year per year
Sioux county in Iowa (2.000 Full-scale FDCA plant: 300
km2) produces >45 million kton/year
bushels of corn per year Requires 600 kton of carbohydrates
= 44 million bushels per year
~2.1% of Iowa production
~0.4% of USA corn production
46

47. LIFE CYCLE ASSESSMENT
47

48. Life Cycle Analysis
Copernicus Institute (Utrecht University; Patel & Faaij)
Comparison of PEF versus PET (revised 2010 PET data set)
100
80 -40-50% -50-60%
60
PET
40
PEF
20
0
NREU CO2
Significant reduction in NREU and CO2
More reductions expected:
feedstock and process improvements
48

49. ECONOMICS
49

50. Compete on price
TPA FDCA
• Oil-based • Bio-based
• Price drivers: • Price drivers:
Oil price Carbohydrate price
Supply/demand Economy of scale
• At scale (350 kt/a), the cost price of FDCA will be
competitive with the cost price of pTA
• Drivers:
– An efficient catalytic conversion process
– Significantly lower feedstock cost
– 100% carbon efficiency in the sugar dehydration
– Economic at moderate yield (65%, higher now)
– More economic oxidation (under milder conditions)
– Use of existing PTA/PET assets
50

51. WAY FORWARD
51

52. Scale-up
Full scale industrial plant:
On stream in 2017-2018
Name plate capacity: 300-500 kta
First commercial plant:
On stream in 2015
Name plate capacity: 30-50 kta
Pilot plant:
Name plate capacity: 20-40 tpa

53. Pilot Plant opening (8 Dec 2011)
53

54. Go to market
Scale-up
Avantium’s pilot plant to:
– Demonstrate YXY technology
– Process development
– Produce FDCA and PEF for application development
Partnering
Avantium is in partnering discussions with:
– Leading brand owners to develop PEF bottles, fibers and film
– Industrial companies to develop FDCA based materials
(polyamides, coatings, plasticizers, etc)
– Feedstock suppliers
– Chemical companies that are interested in producing FDCA
monomers and polymers
54

55. Our Furanics Program in a Nut Shell
2009 - 2012 Time Frame with partner logo’s
Feedstock Process Testing Application Development
Crops Conversion Properties Plastics
Lab
Material
properties Fuels
C5 / C6
Pilot Engine test
sugars

56. Contact Information
gert-jan.gruter@avantium.com
www.yxy.com
Zekeringstraat 29 – 1014 BV – Amsterdam,
The Netherlands
56

57. Break
57

58. Van Gansewinkel
58

59. from waste management to material supply

60. “Survival of the fittest”

63. Landfill map

64. Golfclub “Gulbergen”
> 300 landfill areas
> 40 golf courses…

68. Second skin approach Second life approach Renewable energy
Biological Technical
nutrients nutrients

69. Indepth product and
market knowledge
are essential for
a cycle approach
in the material clusters
Transport
Transport
Transport
Transh.
Pretreatm. Treatment (End)
Customer Collection Raw Material Customer
(sorting and Recycling Treatment
preconditioning)
Waste No More Waste No More

73. Raw Materials
€
Down Stream Production
Product Parts
€€ Production
Sales – Financing - Distribution
€€€
Consumer / (End)user
€€€€
Waste

74. Raw Materials
€€
€
Energy from Waste
Recycling
Collection
Waste
€€

75. Recycle
Re-Use /
Refurbish

85. Without Planet & People…
No Profit

86. 86

87. Discussion
1. Creating and capturing value from sustainability throughout the value
chain
What is your vision?
What is your role?
2. Drivers of sustainable development..
What? Performance? Price – green premium? Marketing?
Who? Market pull versus technology push
3. How to create synergy between the bio-based developments and
recycling initiatives?
4. How will this impact…
Your value chain position and business partners?
The value chain dynamics?
87

88. Sustainability Stewardship through Entire Value Chain
Create value from waste Minimize waste and
Raw
Materials
consumables
Production Use renewable and reclaimed
external feed stocks
Increase energy efficiency and
reduce greenhouse gas
Re-use & emissions
recycling Design less toxic and
environmentally safer products
Packaging &
Transportation and processes
Customer
use
Enable use of renewable Optimize packaging and
energy and raw materials transportation logistics to
Enable resource conservation minimize energy and materials
by customers and end-use requirements and reduce
consumers potential for accidents
88

89. Sustainable environmental system management and integral value chain
approach
Governments
NGO’s
Raw Materials
Raw Production
Materials
Production
Re-use & Re-use & Investors
recycling recycling
Packaging &
Transportation
Packaging &
Partners Transportation
Customer
use
Customer use
Communities
Employees
89

90. Drinks and Dinner
“Club zaal” at 1st floor
90

91. SQUAREWISE
Claude Debussylaan 48, 1082 MD Amsterdam
T +31 (0) 20 4473925 F +31 (0) 20 6110419
E-mail: info@squarewise.com
Internet: www.squarewise.com
KvK te Amsterdam 341.38.272
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