2010 industrial biotechnology world congress verdezyne
1. green chemistry by design
Biobased Adipic Acid and Feedstock Freedom
Presented to the 2010 World Congress on Industrial Biotechnology
Washington DC, 30 June 2010
2. Green Chemistry by Design
Reduce our dependency on petroleum and minimize our
MOTIVATION environmental footprint
Exploit chemistry and biology to achieve breakthroughs in
CHALLENGE how we manufacture everyday products from renewable
resources
Develop economical fermentation processes for producing
GOAL renewable fuels and chemicals
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 2
3. Technology & Business Snapshot
• Deep expertise in synthetic biology
– In-silico pathway modeling & protein
design algorithms
– Metabolic engineering, strain and
fermentation process development
• IP Estate that protects our innovative
technology
• Three Organisms in development:
– Improving ethanol productivity with
“Yield Booster”
– Fermenting pentose sugars from
lignocellulosic biomass to ethanol
– Producing adipic acid from
multiple feedstocks
• Business strategy involves
– Development partnerships to
accelerate time to market
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 3
4. Adipic Acid: Compelling Biobased Chemical
Others, 13%
Invista, 21%
Asahi Kasei,
Large Growing 4%
Market
Hongye, 5%
4.8 billion lb (2009)
4.3% CAGR Bohui, 5%
Strong growth for light
weight, temperature stable Radici, 5%
Rhodia, 18%
plastics Liaoyang
Petrochemical,
6%
BASF, 11%
Ascend, 13%
Economic
Strong Market Pull Opportunity
“Without investment in
Green pull in automotive, U.S. $2,375/te innovation, branding and
textiles, carpets and ($1.08/lb) downstream pull it is
coatings unlikely that adipic polymer
Gross Margin = 30-40%
High market awareness of can sustain the premium it
biobased developments Biobased offers alternative to has historically enjoyed” (PCI,
Benzene price swings 2010)
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 4
5. Future Need for Adipic Acid
Global Adipic Acid Supply / Demand Balance
4000
Speculative Capacity (ktes) New production
3500 facilities needed in
Speculative
Existing / Planned Capacity (ktes)
Capacity (ktes) 2016
Demand (ktes)
3000 Existing / Planned
Capacity (ktes)
2500 Demand (ktes)
2000 Opportunity to
demonstrate and
1500 entrench biobased
production processes
1000 while demand
recovers
500
0
2008
2011
2017
2020
2005
2014
1993
1996
1999
2002
1990
Source: PCI
Adipic lost 5 yrs demand
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 5
6. Competitive Yeast Production Platform
Feedstock
Flexibility Robust Yeast Platform
• Engineering a • Robust strain with performance
proprietary metabolic attributes highly suited to industrial
pathway with sugars scale fermentation
and oils as feed • Combinatorial Pathway Engineering
stocks for rapid strain development
Starch
Platform
Biomass Improvements
C6 Engineering a novel
glycolytic pathway for higher
yield from hexose sugars
Sucrose Oils C5 Engineering a novel xylose
isomerase enzyme for Adipic Acid
utilization of pentose sugars
from biomass
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 6
7. Platform Improvement Demo for Ethanol
C6 Dry Mill – Base
Capacity 100 MM gal/yr
Novel Glycolytic EtOH Increased
Starch Pathway in Yeast Capital $1.05/gal Margin
2.915 gal/bu
Higher Yields and Corn $3.68/bu $10.6 MM
Capacity
Cane Specific Productivity from
EtOH Yield 2.75 gal/bu 107 MM
Hexose Sugars $0.098/gal
Sucrose gal/yr
Ethanol $2.03/gal
Ethanol Development
Partnership with Lallemand
Ethanol Technology
Laboratory results have
Laboratory results have
CARLSBAD, CA. and MILWAUKEE, WI. — April
7, 2010 – Verdezyne, Inc., an industrial biotechnology shown a 10% increase in
shown a 10% increase in
company, and Lallemand Ethanol Technology, a global provider ethanol yield and 30%
ethanol yield and 30%
of yeast to the fuel ethanol industry, today announced they have increase in productivity
increase in productivity
signed an agreement to develop and commercialize a
genetically enhanced high-yield ethanol producing yeast.
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 7
8. Demonstration of Adipic from Renewable Oils
• Engineered a yeast that selectively produces adipic acid
from mixed plant-based oil feedstocks
Acid/Diacid Profile Produced from Coconut Oil
100
Fatty Acid Profile of Coconut Oil 90
Percent Composition
Formula Name Percent 80
C6:0 Caproic 0.5
C8:0 Caprylic 7.8 70
C10:0 Capric 6.7 60
C12:0 Lauric 47.5 50
C14:0 Myristic 18.1
C16:0 Palmitic 8.8 40
C18:0 Stearic 2.6 30
C20:0 Arachidic 0.1 20
C18:1 Oleic 6.2
C18:2 Linoleic 1.6
10
0
d
d
ci
d
ci
d
ci
A
d
ci
A
d
ci
A
d
14
ci
A
d
12
ci
A
d
10
ci
ia
ID
C
8
ci
ia
C
6
C
ia
D
C
C
C
ia
D
D
A
14
D
12
10
IC
C
8
C
C
C
IP
D
A
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 8
9. Diversifying the Raw Material Base
• Oil / Naptha / Benzene
relationship squeezes
adipic acid margins
• Adipic acid producers
carry the feedstock risk
– product demand does
not move raw material
prices
• Raw material prices are
rising again …
A biobased process
utilizing renewable sugars
and oils is free from this
volatility
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 9
10. Fermentation Process has less Capital Risk
• A new large scale
chemical plant built
today would not
reach capacity for
another 8 years.
• Fermentation facility
provides a larger
economic advantage
at smaller scale
• A smaller scale
fermentation plant
could be built for a
fraction of the volume
risk
Smaller scale fermentation plants can be distributed
regionally based on different feedstocks
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 10
11. Cost Advantaged Adipic Acid
Comparative Economics
Cash Cost of Manufacturing
0.7
“There is a huge growth potential current proces s
0.6
for bio-based adipic acid and
other products, as long as it is Operating
cost competitive.” ~ Adell Plastics 0.5 Utilities
$/lb adipic acid
Raw Materials
0.4
0.3
Petrochemical ADA cost
will range between 0.2
$0.71-0.93/lb if
petroleum exceeds 0.1
$100/bbl
0
Chemical Oxidation of Fermentation w/ Fermentation w/
Cyclohexane Soapstock Sucrose
Cost
Advantage
19% 32%
Shut down economics apply if
cash cost advantage > 15%
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 11
12. A Sustainability Advantage
Automotive
Industry is looking to light-weight
plastics to improve fuel efficiency
“The industry wants biobased
adipic to increase sustainable
plastic use in cars.” ~ DuPont
Engineering Polymers Footwear
Industry is listening to consumer
aspiration for renewable products
Biobased Adipic Acid
“TPU materials are not
(ADA) offers significant currently green, we are
GHG reduction compared interested in renewable
to traditional petrochemical alternatives.” ~ Nike
production
GHG Sugar Carbon credits could
Corn Paraffin
Reduction Cane further reduce the cost of
biobased adipic acid by
t CO2eq/t
2.2 4.2 0.56 14% (at $30/t CO2)
ADA
Based on Cradle-to-gate analysis in The Brew Project, adjusted for
Verdezyne fermentation assumptions
INTRODUCTION OPPORTUNITY COMPETITIVE ECONOMICAL SUSTAINABLE DIFFERENTIATED 12
13. Green Differentiation Creates Market Pull
Applications Consumers
10%
Demand for sustainable
Carpet carpet is increasing, because
sustainability is now regarded as
important – In Out Space
Industrial
11%
When consumers have the choice,
26%
Polyurethane they tend to want to make the
greener choice - Timberland
Adipic
Retailers in particular are pushing
Acid 10%
sustainability requirements
Textile back down their global
supply chains - Sustainable Clothing
Roadmap Initiative
25% Engineered A quarter of US adults prefer
Plastics eco-friendly products & are more
loyal towards socially responsible
companies – 2009 Ward’s Auto
Interior Conference
Plasticizers
7%
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