Nordic Seed Capital Summit Stockholm May 19 “Sustainable fuel at compe22ve prices” Pe7er Bartz-‐Johannessen Managing Director
“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
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.
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.
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!
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.
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.
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:
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
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
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!
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
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
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
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!
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) 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
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.