Nordic Seed Capital Summit Stockholm May 19	  “Sustainable	  fuel	  at	  compe22ve	  prices”	                   Pe7er	  Ba...
“The	  Age	  of	  cheap	  energy	  is	  over”	                                                                      The	  ...
Cellulosic	  Ethanol	  is	  part	  of	  the	  solu2on	  	                                              •    There	  are	  ...
Video	  presenta2on	  
Weyland	  AS	                      •    Weyland	  is	  a	  privately	  owned	  company	                           establis...
Vision:	  Vision	  Our	  vision	  and	  aspira.on	  is	  to	  stay	  in	  the	  forefront	  of	  the	  development	  of	  ...
Business	  Model	  Business	  Model:	  •  Focus	  on	  core	  technology	  of	  the	  	  sugar	     produc2on	  process,	 ...
Technology	  development	                         •     1000	  +	  laboratory	  and	  bench	  scale	  tests	              ...
Pilot	  plant	  •      Sponsored	  by	  Innova2on	  Norway,	  the	  Norwegian	  Research	  Council	  and	  Statoil,	  an	 ...
Industrial	  demonstra2on	  plant	  	  •    A	  Front	  End	  Engineering	  &	  Design	  study	  for	  an	       industria...
Demonstra2on	  plant	  -­‐	  CAPEX	  Investment	  budget	  for	  a	  demonstra2on	  plant:	  •  Capacity:              	  ...
Demonstra2on	  plant	  –	  produc2on	  costs	    	  0,5	  EUR	  /	  litre	  	  Ethanol1)	                                 ...
Market	  outlook	                          The	  Interna2onal	  Energy	  Agency:	                          	  Biofuels	  s...
Market	  development	    US	  cellulosic	  ethanol	  produc2on	  2006-­‐2012	                                             ...
Weyland’s	  success	  factors	                                                                                            ...
Financials	  Current	  financing	   Sources	  of	  Funds	                                                               App...
Summary	  1.  Cellulosic	  ethanol	  is	  widely	  recognized	  as	  one	  of	  the	  most	  promising	  ways	  to	  meet	...
Thanks	  for	  your	  a7en2on	  !	               www.weyland.no	  “Sustainable	  fuel	  at	  compe22ve	  prices”	  
Important	  milestones	  in	  2011	  •    Weyland	  has	  been	  awarded	  NOK	  20	  million	  (Euro	       2,5	  million...
Technology	   There	  are	  three	  main	  methods	  to	  produce	  sugar	  from	  cellulose:	   •     Biologic	  hydrolys...
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Sustainable fuel at competitive prices

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Presentation held by Petter Bartz Johannesen, Managing Director of Weyland BioEthanol, at the Nordic Seed Capital Summit in Stockholm, 19 May 2011.

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Sustainable fuel at competitive prices

  1. 1. Nordic Seed Capital Summit Stockholm May 19  “Sustainable  fuel  at  compe22ve  prices”   Pe7er  Bartz-­‐Johannessen   Managing  Director  
  2. 2. “The  Age  of  cheap  energy  is  over”   The  oil  price  has  almost  doubled  within  a  year   Interna2onal  Energy  Agency:     “The  Age  of  cheap  energy  is  over”   450   400   US  Crude  &   350   Petroleum  Imports     President  Barack  Obama:     Billions  USD   300   -­‐  plan  to  cut  America’s  import   250   of  foreign  oil  by  a  third  by   200   2025   150   100   50   Sweden:   0   -­‐    goal  to  be  oil-­‐free  by  2020   1990   2000   2010  
  3. 3. Cellulosic  Ethanol  is  part  of  the  solu2on     •  There  are  over  750  million  motor  vehicles  in  the   world  today.     •  If  present  trends  con2nue,  the  number  of  cars  on   Earth  will  double  in  the  next  30  years.     •  The  transport  sector  already  consumes  between  40   and  50  %  of  the  total  oil  produc2on.     •  Cellulosic  ethanol  is  widely  recognized  as  one  of  the   most  promising  ways  to  meet  the  need  for  clean   transport  fuels.   •  Cellulosic  ethanol  has  the  poten2al  to  reduce  the   emission  of    greenhouse  gases  by  90%  compared  to   fossil  fuel.    
  4. 4. Video  presenta2on  
  5. 5. Weyland  AS   •  Weyland  is  a  privately  owned  company   established  in  2001     •  The  company  has  its  origin  from  research   conducted  at  Bergen  University  College   •  The  technology  converts  lignocellulosic   materials  like  forestry  and  agricultural   wastes  into  fermentable  sugars       •  The  sugar  is  subsequently  fermented  to   ethanol.  
  6. 6. Vision:  Vision  Our  vision  and  aspira.on  is  to  stay  in  the  forefront  of  the  development  of  technology  for  chemical  conversion  of  cellulose  to  fermentable  sugar  ..    ..  and  thus  be  able  to  supply  the  market  with  the  most  viable  solu.ons  for  produc.on  of  ethanol  and  other  chemicals  from  cellulose!  
  7. 7. Business  Model  Business  Model:  •  Focus  on  core  technology  of  the    sugar   produc2on  process,  i.e.  to;  •  develop  proprietary  technology  for  conversion  of   cellulose  to  sugar.    Our  strategy  is  to  sell:    •  Technology  licenses  •  Weyland  hardware  •  Project  management  •  Feedstock  qualifica2ons  etc.    
  8. 8. Technology  development   •  1000  +  laboratory  and  bench  scale  tests   •  A  wide  variety  of  feedstock  has  been  tested   •  Yield  0.25  to  0.33  liters  of  ethanol  per  kg  dry   feedstock  dependant  on  the  type  of  raw  material   •  The  Weyland  technology  has  proved  to  be  very  robust  and   provides  a  high  yield  independent  of  feedstock  types.    
  9. 9. Pilot  plant  •  Sponsored  by  Innova2on  Norway,  the  Norwegian  Research  Council  and  Statoil,  an   advanced  pilot  plant  has  been  built  in  Bergen,  Norway.  •  The  nominal  capacity  is  equivalent  to  200,000  liters  ethanol  output  per  year.    •  The  main  purpose  is  to  verify  the  process,  and  to  demonstrate  the  commercial  viability   of  the  technology.    •  The  pilot  plant  was  opened  in  October  2010.   ______________________________________________________________________________________   Sponsors:  
  10. 10. Industrial  demonstra2on  plant    •  A  Front  End  Engineering  &  Design  study  for  an   industrial  size  demo  plant  in  Norway  was  conducted  in   2010.    •  The  produc2on  capacity  will  be  approximately  approx   30  million  liters  of  ethanol  per  year.  •  The  project  was  a  coopera2on  between  Weyland,   Elkem  and  Desmet  Ballestra  Ethanol.    •  The  plant  can  u2lize  surplus  energy  from  Elkem’s  silica   plant.   Salten  
  11. 11. Demonstra2on  plant  -­‐  CAPEX  Investment  budget  for  a  demonstra2on  plant:  •  Capacity:  30  million  litre  ethanol  per  year   32  000  tonnes  of  lignin  per  year  •  Feedstock:    100  (dry)  tonnes  fuel  chips    from  residues  per  year    •  Energy:  Waste  heat  from  silica-­‐produc2on   Electricity  from  own  biogas  plant  Total  investment:  Approx  Euro  100  mill  
  12. 12. Demonstra2on  plant  –  produc2on  costs    0,5  EUR  /  litre    Ethanol1)   Inputs! 0,8   0,7     Feedstock  –  Spruce  chips     0,6     Feedstock  25  ton/h    (50%  moisture)   0,5   Lignin  Pellets     Feedstock  price    Approx  €  100/dry  ton   0,4     Acid  &  Solvent  cost  €  0,042/l     Manpower   0,3   Waste  streams   Output! 0,2   U2li2es/Energy   0,1     3500  l  Ethanol/h  (  30  000  m3/yr)   Chemicals   0     4  t  lignin  pellets/h    (7%  moisture)   Feedstock     4  MW  Power  from  biogas       1,8  t/hr  liquid  fer2lizer  (no  value  assumed)   1)  Weyland  &  Desmet  Ballestra    
  13. 13. Market  outlook   The  Interna2onal  Energy  Agency:    Biofuels  share  of  the  transporta2on  fuel  market  will      increase  from  the  current  level  of  2  %  to  27  %  in  2050      The  demand  for  ethanol  will  increase  many  2mes:   •  2005:            42bn  liters  per  year   •  2012:            82bn  liters  per  year   •  2030:        300bn  liters  per  year    The  produc2on  of  cellulosic  ethanol  is  cri2cal  to  the      growth  of  the  ethanol  market.     Market  poten2al:     •  Produc2on  capacity  of  2.genera2on  ethanol  will  have  to   increase  from  almost  zero  today  to  200  billion  liters  in  2030.     •  Require  more  than  1000  large  scale  produc2on  units    …  or  more  likely;        …    several  thousand  small  and  medium  scale  plants.     •  For  many  of  these  installa2ons  the   Weyland  process  may  be  the  best  choice!    
  14. 14. Market  development   US  cellulosic  ethanol  produc2on  2006-­‐2012   Cellulosic  ethanol  has  been  slower  to  take  off   than  expected  !   •  Technological  hurdles   •  Doubts  about  economic  viability  -­‐  financing   •  Uncertainty  over  government  support   US  ethanol  produc2on  1980-­‐2007   Corn-­‐based  ethanol  also  took  several  years  to  get   going  …    ..  suddenly  there  was  exponen2al  growth!  Source:    Renewable  Fuels  Associa2on,  January  2010  
  15. 15. Weyland’s  success  factors   Weyland’s  recipe  for  success;     •  Proven  technology  based  on  well  known  chemical   processes.   •  The  process  has  several  advantages  over  other  sugar   producing  technologies:   •  Mul2ple  feedstock  versa2lity     •  High  ethanol  yield  Capex   Price  [EURO]  Technology  groups    Weyland  core  technology    Biogas  plant   22  000  000  €   10  300  000  €   •  Good  industrial  scalability    Other  groups  of  technology   0,8   31  000  000  €    Electric  and  M&C   0,7   8  200  000  €    Piping   5  800  000  €   •  The  process  is  largely  driven  by  low  grade   0,6    Civil  works,  buildings   0,5   10  200  000  €   energy,  and  can  u2lize  waste  heat  from  other    Erec2on   7  800  000  €   Lignin  Pellets    Services   0,4   1  800  000  €   Manpower   industries    Permit  engineering   0,3   1  800  000  €    Engineering   0,2   3  600  000  €   Waste  streams    Spare  parts   0,1   1  500  000  €   U2li2es/Energy   •  3rd    party  verifica2on  of  favorable  Capex  and  Opex    TOTAL   104  000  000  €   0   Chemicals   Feedstock  
  16. 16. Financials  Current  financing   Sources  of  Funds   Applica2on  of  Funds   Share  capital   €  2.8m   R&D  -­‐  Opera2ons   €  2.5m   Statoil  LOOP  conver2ble    loan    €  0.8m   Bench  Scale  Tes2ng   €  0.4m   Public  Grants   €  2.8m   Pilot  Plant  Construc2on   €  5.1m   Loan   €  1.6m   Total   €  8.0m   Total   €  8.0m  Financing  requirement  2011  -­‐  2013   Sources  of  Funds   Applica2on  of  Funds   New  Share  Capital   €  6.0m   Commercializa2on  of  the  technology   €  m   Public  Grants   €  3.0m   R&D  /  Pilot  Plant  opera2on   €  m   Total   €  9.0m   Scale-­‐up  engineering   €  m   IPR,  Marke2ng,  etc   €  m   Posi2ve  cash  flow  expected  from  2013   Opera2ons   €  m   Total   €  9.0m   • Venture  Capital    Exit  strategy  3  –  5  years   Investor  preference:   • Strategic  partner    Long  term  investment    
  17. 17. Summary  1.  Cellulosic  ethanol  is  widely  recognized  as  one  of  the  most  promising  ways  to  meet   the  need  for  clean  fuels.  2.  Although  the  cellulosic  ethanol  market  has  been  slow  in  coming,  we  can  expect   very  strong  growth.  3.  The  Weyland  process  is  very  robust  and  highly  compe22ve.   Weyland    -­‐  a  great  investment  opportunity!  
  18. 18. Thanks  for  your  a7en2on  !   www.weyland.no  “Sustainable  fuel  at  compe22ve  prices”  
  19. 19. Important  milestones  in  2011  •  Weyland  has  been  awarded  NOK  20  million  (Euro   2,5  million)  in  grants  from  Innova2on  Norway  for   further  tes2ng  and  development  of  the   technology  •  As  the  first  company,  Weyland  has  obtained  a   Compliance  cer2ficate  from  Det  Norske  Veritas     that  the  process  meets  EU’s  direc2ve  for   sustainability    •  Ini2ated  by  Elkem  a  new  company;  Salten   Bioetanol  AS,  has  been  established    with  the   purpose  of  developing  an  Industrial  scale  demo   plant  in  Norway  •  Contract  with  The  Latvian  Forrest  Company  LVM   to  undertake  a  concept  evalua2on  for  an   industrial  size  plant  in  Latvia  based  on  our   technology  
  20. 20. Technology   There  are  three  main  methods  to  produce  sugar  from  cellulose:   •  Biologic  hydrolysis  -­‐  using  enzymes     •  Dilute  acid  hydrolysis  -­‐  using  acid  and  heat   •  Strong  acid  hydrolysis  -­‐  using  concentrated  acid     The  Weyland  process  is  based  on  strong  acid  hydrolysis  of  the  cellulose.     •  The  earliest  produc2on  of  ethanol  by  this  method  started   in  Germany  in  the  1920s   •  Weyland’s  process  differs  from  exis2ng  technology  in  its   unique  method  of  removing  and  recycling  98.5%  of  the   acid.     •  This  enables  produc2on  of  fermentable  sugar  at  lower  cost   and  represents  a  significant  environmental  benefit.      

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