1. The Evolution of BiobutanolThe Evolution of Biobutanol
(Part 1)(Part 1)
BDC Spring Symposium
April 8, 2014
James Evangelow, President
Chemical Strategies
Email: jevangelow@chemstrategies.com
Chemical Strategies 77 New Broadway Sleepy Hollow, NY 10591 PH: (914) 524-9764

2. Is biobutanol the nextIs biobutanol the next
ethanol?ethanol?
Is biobutanol the nextIs biobutanol the next
ethanol?ethanol?

3. AGENDAAGENDA
 Will history repeat itself?
 Synergy with ethanol
 Focus: chemical & solvent
 Sam Nejame will discuss fuel

4.  Carter was the President
 Period of “oil shocks”; supply concerns
 Rising energy prices
 Iran takes US hostages
 Environmental concerns lead to recent
introduction of catalytic converters on cars &
unleaded gasoline
 Automakers strive to improve MPG
 US produces ~200MM Gal/Yr ethanol from
ethylene for solvent & chemical uses.
 US industry starts making renewable ethanol
from corn for gasoline blending ("Gasohol”)
but also for petro-ethanol markets.
Go back in time to the late 1970’s:Go back in time to the late 1970’s:
 Carter was the President
 Period of “oil shocks”; supply concerns
 Rising energy prices
 Iran takes US hostages
 Environmental concerns lead to recent
introduction of catalytic converters on cars &
unleaded gasoline
 Automakers strive to improve MPG
 US produces ~200MM Gal/Yr ethanol from
ethylene for solvent & chemical uses.
 US industry starts making renewable ethanol
from corn for gasoline blending ("Gasohol”)
but also for petro-ethanol markets.

5.  Obama is President
 Costly oil & gasoline
 Political instability continues in the Middle East
 However, increased North American energy
production has reduced supply disruption fears
 Environmental efforts to lower GHG
 Automakers strive to improve MPG
 US produces 350MM Gal/Yr butanol from
propylene for solvent & chemical uses
 Ethanol hitting the “blend ceiling”
 US biobutanol industry beginning to emerge as
the superior next gen biofuel; aim to produce in
retrofitted ethanol plants
 However, petro-butanol markets in solvents &
chemicals are lucrative initial targets.
Today………….Today………….
 Obama is President
 Costly oil & gasoline
 Political instability continues in the Middle East
 However, increased North American energy
production has reduced supply disruption fears
 Environmental efforts to lower GHG
 Automakers strive to improve MPG
 US produces 350MM Gal/Yr butanol from
propylene for solvent & chemical uses
 Ethanol hitting the “blend ceiling”
 US biobutanol industry beginning to emerge as
the superior next gen biofuel; aim to produce in
retrofitted ethanol plants
 However, petro-butanol markets in solvents &
chemicals are lucrative initial targets.

6.  Four isomers: n-, iso, sec- & tert
 n-Butanol & isobutanol are the
commercially significant oxo alcohols
 Both are produced from butyraldehydes,
which are generated via the oxo reaction
of syngas with propylene
 Mainly used to make solvents and
polymers for: paints, coatings, adhesives,
inks, caulks & sealants
 Sell for $5-$10/Gal in industrial uses
 Far superior to ethanol as a fuel
Meet theMeet the ButanolsButanols………………
 Four isomers: n-, iso, sec- & tert
 n-Butanol & isobutanol are the
commercially significant oxo alcohols
 Both are produced from butyraldehydes,
which are generated via the oxo reaction
of syngas with propylene
 Mainly used to make solvents and
polymers for: paints, coatings, adhesives,
inks, caulks & sealants
 Sell for $5-$10/Gal in industrial uses
 Far superior to ethanol as a fuel

7. US n-Butanol Demand US Isobutanol Demand
Acrylate
32%
Glycol
Ethers
22%
Acetate
11%
Resins
10%
Solvent
7%
Other
4%
Exports
47%
2013
NN--ButanolButanol is the “big brother”is the “big brother”
Acetate
11%
Solvent
5%
Plasticizer
1%
Amino
Resins
1%
Other
1%
Exports
24%
Total: 320 MM Gal
Lubes
18%
Acetate
14%
Resins
10%
Total: 25 MM Gal

8. 4,000
6,000
8,000
10,000
12,000
14,000
16,000
Million Gallons
US Ethanol Demand
Fueling growth!................Fueling growth!................
0
2,000
4,000
1975 1980 1985 1990 1995 2000 2013
Chemical Solvent Beverage Export Fuel

9. US Industrial Ethanol Demand, 2013
Vinegar
28%
Acetate
11%
Glycol
Ethers
4%
Other
15%
Chemicals
Cleaning
Products
23%
Paints,
Coatings
, Inks
19% Process
Solvent
9%
Solvents
They’re still living?They’re still living?
Acrylate
26%
Amines
16%
Acetate
11%
Total: 110 MM Gal
Personal
Care
45%
Process
Solvent
9%
Drugs
2%
Other
2%
Total: 120 MM Gal

10. Alive, but turning “green”Alive, but turning “green”

11. Trait Ethanol Butanol
Family origin Ethylene Propylene
Recent move Bio-based Bio-based*
Jobs Chemicals & Solvents
Such as Ethyl acrylate Butyl acrylate
Ethyl acetate Butyl acetate
Coatings, inks Coatings, inks
Fuel Fuel
DNA 2 Carbons 4 Carbons
Other Cheap Energy dense
Worldwide 1.6 Billion Gal** 1.6 billion Gal
* Just beginning the journey.
** Industrial
Long lost relatives…….Long lost relatives…….
Trait Ethanol Butanol
Family origin Ethylene Propylene
Recent move Bio-based Bio-based*
Jobs Chemicals & Solvents
Such as Ethyl acrylate Butyl acrylate
Ethyl acetate Butyl acetate
Coatings, inks Coatings, inks
Fuel Fuel
DNA 2 Carbons 4 Carbons
Other Cheap Energy dense
Worldwide 1.6 Billion Gal** 1.6 billion Gal
* Just beginning the journey.
** Industrial

12. Significant Biobutanol Technology Providers
n-Butanol - Green Biologics, Cobalt
(bacteria) Technologies, Eastman,
Cathay
Isobutanol - Butamax, Gevo
(yeast)
Where doWhere do biobutanolsbiobutanols come from?come from?
Significant Biobutanol Technology Providers
n-Butanol - Green Biologics, Cobalt
(bacteria) Technologies, Eastman,
Cathay
Isobutanol - Butamax, Gevo
(yeast)

13. 2
4
6
8
10
7.02
4.07
6.95
7.94
6.65 6.896.59
4.40
7.20
8.59
8.02
8.95
3.25
2.35
2.78
3.52 3.6 3.51
Average US Market Price
USD per Gallon
Where are theWhere are the biobutanolsbiobutanols going?going?
0
2
2008 2009 2010 2011 2012 2013
n-Butanol, Industrial Isobutanol, Industrial
Regular Gas, Retail

14. ETHANOL
BIOBUTANOL
Will history repeat itself?Will history repeat itself?