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NNFCCNNFCC: The Bioeconomy ConsultantsMarket opportunities forlignocellulose-derived chemicalsThe Bio Base NWE ProjectUK-N...
NNFCCNNFCC: The Bioeconomy ConsultantsCompany VisionWe view bio-based technologies as keycomponents of the low carbon econ...
NNFCCNNFCC: The Bioeconomy ConsultantsServices• Future market analysis• Feedstock logistics planning• Sustainability strat...
NNFCCNNFCC: The Bioeconomy ConsultantsEU ContextIt includes agriculture, forestry, fisheries, food and pulp and paper prod...
NNFCCNNFCC: The Bioeconomy ConsultantsBioeconomy value chainsBiomassprovisionBiomasstradingBiomassrefiningFuelproductionFu...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBiobased production - Market expansion and developm...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBiobased Chemicals - Drivers & ConcernsImproved pro...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy Consultants050100150200250300Feb-93Dec-93Oct-94Aug-95Jun-96Apr...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy Consultants50 shades of green - Every generation now comes wit...
NNFCCNNFCC: The Bioeconomy Consultants𝑃𝑟𝑖𝑐𝑒 =𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡𝑣𝑎𝑙𝑢𝑒 =𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 + 𝑒𝑚𝑜𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑚...
NNFCCNNFCC: The Bioeconomy Consultants04008001200160020002010 2020 2030 2040 2050MilliontonnesPlastics production: project...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsEthylene PolyethylenesStyreneMonomerEthyleneOxide/G...
NNFCCNNFCC: The Bioeconomy ConsultantsSuccinic Acid 1,4-ButanediolPolybutyleneTerephthalateCopolyester EthersThermoplastic...
NNFCCNNFCC: The Bioeconomy ConsultantsCellulosic ethanol – No longer 10 years awayST. LOUIS, MO. (June 11, 2013) – Constru...
NNFCCNNFCC: The Bioeconomy ConsultantsCellulosic sugar fermentation• Turn-key technology offers for cellulosic sugar.• Pro...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsOutputsProcess StreamsLignocelluloseCelluloseProduc...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBulk aromatics (BTX value chain)Benzene(~40 million...
NNFCCNNFCC: The Bioeconomy ConsultantsAug. 13, 2012 - Joint Development Agreement forBio-Based ButadieneSynthesis gas ferm...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsInnovation - something original and new that "break...
NNFCCNNFCC: The Bioeconomy ConsultantsBRIDGE PPP: The challenge, Overcoming the innovation Valley ofDeath by bridging the ...
NNFCCNNFCC: The Bioeconomy ConsultantsProcess scale up and pilot demonstration
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBio Base NWESupporting the development of the bio-b...
NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBio Base NWESupporting the development of the bio-b...
NNFCCNNFCC: The Bioeconomy ConsultantsBioeconomyFeedstockpricing &volatilityTechnologyDevelopment(performance& cost)Enviro...
NNFCCNNFCC: The Bioeconomy ConsultantsThe NNFCC provides high quality, industry leading consultancyfor more information co...
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Market opportunities for lignocellulose derived chemicals: The Bio Base NWE project

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This paper was presented at the UK-Norway symposium 'Valorising Woody Biomass' held on the 25th-26th June 2013,

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Market opportunities for lignocellulose derived chemicals: The Bio Base NWE project

  1. 1. NNFCCNNFCC: The Bioeconomy ConsultantsMarket opportunities forlignocellulose-derived chemicalsThe Bio Base NWE ProjectUK-Norway Symposium: Valorising Woody BiomassAdrian Higson PhD25 June 2012
  2. 2. NNFCCNNFCC: The Bioeconomy ConsultantsCompany VisionWe view bio-based technologies as keycomponents of the low carbon economydelivering economic, social and environmentalbenefits.We believe the bioeconomy will createsustainable business opportunities forfeedstock suppliers, technology and projectdevelopers, manufacturers and investors.A specialist ‘not for profit’ Bioeconomy consultancyCompany MissionTo provide clients with a holistic view of feedstock, technology, policy and marketdevelopment across the bioeconomy, enabling them to make informed businessdecisions and develop sustainable business strategies.
  3. 3. NNFCCNNFCC: The Bioeconomy ConsultantsServices• Future market analysis• Feedstock logistics planning• Sustainability strategy development• Technology evaluation and due diligence• Project feasibility assessment• Policy and regulatory support• Network & FacilitationClients & Partners• Multinationals & SMEs• Public Organisations• Government• Research Institutes• Universities• Transnational Collaborations• European Framework ProjectsCelebrating 10 years of Bioeconomy development
  4. 4. NNFCCNNFCC: The Bioeconomy ConsultantsEU ContextIt includes agriculture, forestry, fisheries, food and pulp and paper production,as well as parts of chemical, biotechnological and energy industries.• is worth an estimated €2 trillion• accounts for 22 million jobs• 9% of total employment in the EUEach euro invested in EU-funded bioeconomy research and innovation isestimated to trigger €10 of value added in bioeconomy sectors by 2025.EUROPEAN COMMISSION – PRESS RELEASEBrussels, 13 February 2012Commission proposes strategy for sustainablebioeconomy in Europe
  5. 5. NNFCCNNFCC: The Bioeconomy ConsultantsBioeconomy value chainsBiomassprovisionBiomasstradingBiomassrefiningFuelproductionFuel blend &retailChemicalproductionChemicalindustryBiomass power& heatChemical usingindustryRetailersPharmaceuticalindustryFoodingredientsFoodindustryRetailersFood & FeedindustryFeedingredientsFeedindustry
  6. 6. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBiobased production - Market expansion and development activityCurrently over 90companies activelycommercialising over 50commodity or platformchemicals.ADMAmyris/MichelinAnellotechBioAmberBiocaldolBioMCNBraskemButamaxCathayIndustrialBiotechColboltTechnologiesDSMDOWDrathsDuPontEastmanChemicalsGlobalBiochemGlobalBioenergiesGlycosBiotechnologiesGreenBiologicsGreencolTaiwanCorporationGenomaticaGevoGoodyear/GenencorIndiaGlycolsMetabolicExplorerMyriantNatureworksNovephaPuracRennoviaReverdia(DSM/Roquette)SolvayTMOOPXBioVerdezyneVinythaiVirentZeachemMethanolFormic AcidEthanolEthyleneEthylene OxideEthylene Glycol (MEG)Acetic AcidEthyl acetateEpichlorohydrinAcetoneisoPropanolPropylenePropylene Glycol1,3-PropanediolLactic acidAcrylic Acidn-Butanoliso-Butanoliso-ButyleneButadieneSuccinic acid2,3-Butanediol1,4-ButanediolTetrahydrofuranIsopreneAdipic acidHMDABenzeneTolueneParaxyleneTerephthalic acidStyreneCompanies working on bio-based chemicalsBio-basedchemicalsSource: NNFCC Current production over 50million tonnes. Food & Feed ingredients, Consumer chemicals, Industrial chemicals. Oleochemicals, Starch derivatives, Cellulose derivatives, Fermentation products.
  7. 7. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBiobased Chemicals - Drivers & ConcernsImproved product performance or new functionTechnology developmentGreen branding & corporate sustainabilityProduction economicsFeedstock economicsPolicy intervention & indirect effects© NNFCC
  8. 8. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy Consultants050100150200250300Feb-93Dec-93Oct-94Aug-95Jun-96Apr-97Feb-98Dec-98Oct-99Aug-00Jun-01Apr-02Feb-03Dec-03Oct-04Aug-05Jun-06Apr-07Feb-08Dec-08Oct-09Aug-10Jun-11Apr-12Feb-13Commodity Agricultural Raw Materials Index- Monthly PriceCommodity Food Price Index - Monthly PriceCrude Oil (petroleum), Price index - MonthlyPriceFeedstock Pricing – A new normalSource: International Monetary FundPriceindex,2005=100The relative costs of crude oil, food basics and agriculturalmaterials have moved significantly over the last 20 years.
  9. 9. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy Consultants50 shades of green - Every generation now comes with a degree ofenvironmental consciousness• Baby boomers (born 1946-1964)– Silent Spring 1962– Air quality, water quality• Generation X (Baby busters) (born 1964-1977)– Union Carbide and Chernobyl disasters.– Exxon Valdez oil spill.• Generation Y (Millennials) (born 1980’s through1990’s)– Hurricane Katrina and An Inconvenient Truth– BP Oil Spill in the Gulf of Mexico– Awareness of the Great Pacific Garbage Patch• Generation Z (today’s children)– Recycling, solar panels, hybrid cars, energy saving light bulbsSource: Jacquelyn Ottman: The new rules of Green Marketing
  10. 10. NNFCCNNFCC: The Bioeconomy Consultants𝑃𝑟𝑖𝑐𝑒 =𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡𝑣𝑎𝑙𝑢𝑒 =𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 + 𝑒𝑚𝑜𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡 + 𝑝𝑠𝑦𝑐ℎ𝑖𝑐 𝑐𝑜𝑠𝑡Business to BusinessBusiness to ConsumerGreen Premium? – Price vs valueCoca Cola Executive: “If Coca-Cola were to lose all of itsproduction-related assets in a disaster, the company wouldsurvive. By contrast, if all consumers were to have a suddenlapse of memory and forget everything related to Coca-Cola,the company would go out of business.”
  11. 11. NNFCCNNFCC: The Bioeconomy Consultants04008001200160020002010 2020 2030 2040 2050MilliontonnesPlastics production: projected growthMediumLowHighPlastic production: medium growth2020 339 million tonnes2030 434 million tonnes2050 712 million tonnesA high value market forlignocellulose?1967 – There’s a great future in plastics2012 - There’s a great future in bio-based plasticsThe Graduate (1967),© NNFCC
  12. 12. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsEthylene PolyethylenesStyreneMonomerEthyleneOxide/GlycolEDCOtherPolymers/RubbersPolyesterPVCAlpha OlefinsPVAEthanol60%7%14%12%7%Ethylene value chainPET Collaborative
  13. 13. NNFCCNNFCC: The Bioeconomy ConsultantsSuccinic Acid 1,4-ButanediolPolybutyleneTerephthalateCopolyester EthersThermoplasticPolyurethanesSpandexFibresTetrahydrofuranSolventPolytetramethyleneEther Glycolg-ButyrolactoneFine & SpecialityChemicalsN-Methyl -2-PyrrolidoneFine &SpecialityChemicals2-PyrrolidoneFine &SpecialityChemicalsN-Vinyl-2-PyrrolidonePolyvinylPyrrolidoneDeicers/CoolentPlasticisersFuel AdditivesSuccinic acid value chain© NNFCC
  14. 14. NNFCCNNFCC: The Bioeconomy ConsultantsCellulosic ethanol – No longer 10 years awayST. LOUIS, MO. (June 11, 2013) – Construction of POET-DSM Advanced Biofuels’ first commercial cellulosic bio-ethanol plant is on schedule to start up in early 2014 ….Beta Renewables Crescentino plant commercial-scalecellulosic ethanol plant, in Crescentino Italy, startedoperations in Q4, 2012.With construction completed in 2012, KiOR commencedoperations at Columbus and validated its proprietarytechnology. Shipments of cellulosic fuels from Columbusbegan in early 2013
  15. 15. NNFCCNNFCC: The Bioeconomy ConsultantsCellulosic sugar fermentation• Turn-key technology offers for cellulosic sugar.• Project simplification and de-riskingFeedstock Pre-treat Convert
  16. 16. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsOutputsProcess StreamsLignocelluloseCelluloseProduct 1Hemi-celluloseProduct 1/2LigninEnergy?Deriving value from Lignin? Approximately 1 million tonnes of lignosulfonates sold each year howeverlimited potential for market growth. The lack of alternative markets for lignin together with their scale of production;make the production of aromatic chemicals from lignin attractive.Process costs & capitalrequirementsFeedstock costsProduct income
  17. 17. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBulk aromatics (BTX value chain)Benzene(~40 million tonnes/year)Ethylbenzene(52%)Cumene(22%)Phenol(~9 million tonnes/year)Bisphenol A(44%)PolycarbonateresinsEpoxy resinsPhenolic resins(27%)CaprolactamNylon 6Cyclohexane(15%)Other(11%)Toluene XyleneAdded valuetargets
  18. 18. NNFCCNNFCC: The Bioeconomy ConsultantsAug. 13, 2012 - Joint Development Agreement forBio-Based ButadieneSynthesis gas fermentationDeveloping microorganismscapable of converting syngasto valuable platform chemicals
  19. 19. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsInnovation - something original and new that "breaks in to" themarket or into societyMarketFinanceTechnology/Product• Standards, labels and certification• Product specific legislation• Legislation related to biomass• Encourage Green Public Procurement• Research• Development• Demonstration• Public• Private• Public/Private£25M IB Catalyst
  20. 20. NNFCCNNFCC: The Bioeconomy ConsultantsBRIDGE PPP: The challenge, Overcoming the innovation Valley ofDeath by bridging the gap from research to the marketplace.The EU contributes €1 billion to the research and innovation program,European industries have committed to another €2.8 billionBuilding supply chainsDeveloping technologyUpgrading and buildingdemonstration and flagshipbiorefinerieshttp://bridge2020.eu/
  21. 21. NNFCCNNFCC: The Bioeconomy ConsultantsProcess scale up and pilot demonstration
  22. 22. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBio Base NWESupporting the development of the bio-based economyin North West Europe• To aid companies, research centers and education centers of NWE tonetwork internationally• Political support for the bio-based economy by giving SMEs a voice, and bydeveloping a common strategy• To acquaint companies, research centers and education centers of NWE withBio Base Europe
  23. 23. NNFCCNNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy ConsultantsBio Base NWESupporting the development of the bio-based economyin North West Europe
  24. 24. NNFCCNNFCC: The Bioeconomy ConsultantsBioeconomyFeedstockpricing &volatilityTechnologyDevelopment(performance& cost)EnvironmentalconsiderationsSummaryBiobased Economy Drivers Process developmentdrivers are multiple andvaried. Commercialisation led bybrand owner pressure onsupply chains. Identifying ‘added value’markets important for firstmovers. Increasing public fundingand market developmentsupport.
  25. 25. NNFCCNNFCC: The Bioeconomy ConsultantsThe NNFCC provides high quality, industry leading consultancyfor more information contact usEmail - enquiries@nnfcc.co.uk+44 (0) 1904 435182Follow us on Twitter @NNFCC• Future Market Analysis• Feedstock Logistics Planning• Sustainability StrategyDevelopment• Technology evaluation & associateddue diligence• Project feasibility assessment• Policy and regulatory support

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