International Conference "Reconnecting economy and society through innovation - A new bioeconomy infrastructure for the regeneration of local areas" 30th September 2016

1. 1

2. 2
CATIA BASTIOLI
TAGLIO DI PO (RO)
30.09.2016
BIOREFINERIES INTEGRATED
IN LOCAL AREAS TO
REINDUSTRIALISE AND
DECARBONISE EUROPE

3. 3
NOVAMONT’S BIOECONOMY
MODEL AND
INFRASTRUCTURES

4. 4
THE PILLARS OF OUR STRATEGY
1. THE PLANTS
Deindustrialized sites, their regeneration transforming world-first technologies
into flagships (plants first in the world) intended as «bioeconomy
infrastructures».
Interconnected among them and connected with the local areas , starting points for
new chains and new partnerships.
2. THE PRODUCTS
The products of the value chain have to contribute to solve real societal
challenges and not to be one just of the million products in the market.
OURMODELOFBIOECONOMYASTERRITORIALREGENERATION

5. 5
PRODUCTION SITES
MATRÌCA
50:50 JV
NOVAMONT-VERSALIS
FLAGHIP FOR AZELAIC AND
PELARGONIC ACIDS, THEIR
ESTERS, PLASTICISERS,
BIOHERBICIDES, BASIS FOR
BIOLUBRICANTS
INTEGRATED AGRICULTURAL
VALUE CHAIN
Porto Torres (SS) - Sardegna
HEADQUARTER
BIOECONOMY INFRASTRUCTURES IN ITALY
MATER-BIOTECH
(100% NOVAMONT)
FLAGSHIP FOR 1,4 BDO
PRODUCTION THROUGH
FERMENTATION PROCESSES
Adria (RO) - Veneto
R&D CENTRES
MATER-BI PRODUCTION
AND R&D ON ON
INTERMEDIATES FROM RRM
Terni - Umbria
BIOTECHNOLOGY
RESEARCH CENTRE
Piana di Monte Verna (CE) -
Campania
MATER-BIOPOLYMER
(78% NOVAMONT)
PRODUCTION OF
POLYESTERS FROM
VEGETABLE OILS
Patrica (FR) - Lazio
HEADQUARTER AND
RESEARCH CENTRE
Novara - Piemonte
NOVAMONT’S SITES
SUBSIDIARY COMPANIES
NOVAMONT’S NETWORK
JV NOVAMONT/VERSALIS

6. 6
3 R&D Centers (Novara,
Caserta, P.to Torres)
20% of people in R&D
activities
>6% of turnover in R&D
activities
About 1.000 patent
cases filed
R&DWHO WE ARE
NOVAMONT: A KNOWLEDGE-BASED INDUSTRY
4 production sites
3 technologies in place,
1 at start-up level
7 reactive extrusion lines
(95.000 t/a)
4 discontinuous
polymerization lines
(10.000 t/a)
1 continuous
polymerization line
(50.000 t/a)
INDUSTRIAL STRUCTURE
GROUP PROFILE
Pionieer and world
leader in the
development of
bioplastics and
bioproducts
Turnover (2015): 170M€
600 people

7. 7A WORLWIDE COMPANY
NOVAMONT S.p.A.
Novara (Italy)
NOVAMONT
FRANCE
Paris (France)
NOVAMONT
Representative office
Bruxelles (Belgio)
SITES OUTSIDE ITALY
BUSINESS NETWORK
NOVAMONT
NORTH AMERICA INC.
Shelton, CT (USA)
NOVAMONT
GMBH
Eschbon (Germany)
Lebanon,
Tennessee (USA)
HEADQUARTERS

8. 8
M&G
50%
VERSALIS
50%
MATRICA
NOVAMONT
France
NOVAMONT
GmbH
MATER
BIOTECH
MATER
BIOPOLYMER
22%
GENOMATICA
100% 100% 100% 78%100%
NOVAMONT
North America
NOVAMONT
AGRO
DIVISION

9. 9
FROM MATER-BI
TO BDO:
SOLUTIONS NOT JUST
PRODUCTS

10. 10WHERE WE STARTED FROM
TURNING A PROBLEM INTO AN OPPORTUNITY: THE EXAMPLE OF BIOWASTE
ORGANIC WASTE IN LANDFILL
The landfill gas produced by biowaste consists
mainly of methane, which is 23 times more
powerful than carbon dioxide in terms of climate
change effects in the 100-years time horizon
(source: IPCC)
If not collected properly, leachate can
contaminate groundwater and soil
Landfilling means irrecoverable loss of resources
and land
COMPOST AS DRIVER FOR SOILS FERTILITY
Quality soil conditioner to be used in agriculture
to combat desertification and soil erosion
Carbon sink effect
In some EU countries compostable bioplastics
have become an integrating element in the
biowaste management thanks to an overall
agreement with the composting network
Cases of excellence where composting and AD
transform biowaste into new resources, such as
biogas and high quality compost, thereby closing
the organic carbon cycle of the bioeconomy

11. 11
AZELAIC ACID
PELARGONIC ACID
OTHER CHEMICAL
INTERMEDIATES
(Matrica )
NOVAMONT’S PROPRIETARY TECHNOLOGIES
UPSTREAM INTEGRATION 1989-2016
BIOBDO
4TH GENERATION
MATER-BI
C14 > 70%
3RD GENERATION
MATER-BI
C14 > 50%
2ND GENERATION
MATER-BI
C14 > 40%
1ST GENERATION
MATER-BI
C14 > 25%
SPECIALISED
SEEDS
DEDICATED
CROPS AND
BIOMASS
TREATMENT
SEEDS
CRUSHING
CHEMICAL
PROCESSES
POLYESTERS
FROM RRM
COMPLEXED
STARCH
BIOTECH
PROCESSES

12. 12BIO-BDO CARBON FOOTPRINT
The carbon footprint of bio-BDO is shown
in this graph.
The first bar shows the cradle-to-gate CF
of the current bio-BDO.
The second bar shows the expected CF in
the next months.
The third and the forth bars represent
the impact of fossil BDO produced with
traditional processes at global or
European level, respectively.
A difference of 56% is achievable when
passing from the fossil-based BDO
produced at global level to the bio-BDO
to capacity.
Δ -56%

13. 13THE NEW GRADES OF MATER-BI OF 4TH GENERATION
BIO-BDO (MATER-BIOTECH) AND AZELAIC ACID (MATRìCA) EFFECT
4TH GENERATION MATER-BI
% OF RENEWABLE CARBON
(C14)
RELATIVE SCALE OF
CO2 EMISSIONS IN KG CO2/KG
(CRADDLE TO GRAVE)
Shopping bags grade >60 <40
Fruits & Vegetables grade >60 <40
Biodegradable products
today in the market for
same applications
<30 100

14. 14BIO-BDO MARKET
ESTIMATED ANNUAL GROWTH BDO
DEMAND: 5-8%
TOTAL MARKET 2,000 MMT
BDO DERIVATIVES AND USES:
Tetrahydrofuran (THF): PTMEG (poly
THF)  spandex (e.g. Lycra),
solvents
Polybutylene terephthalate (PBT ):
automotive plastics, cell phones, PCs
Gamma-butyrolactone (GBL): PVP
polymers, solvents
Polyurethanes (PU): engineering
thermoplastics, coatings
THF
MERCHANT
8%
PBT
23%
PU/TPU
11%
NMP
9%
GBL (INCL.
POLYMERS)
8%
OTHERS
1%
BIOPLASTICS
3%
PTMEG
37%

15. 15
MATER-BIOTECH

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INTEGRATION OF CHEMICAL PROCESSES WITH INDUSTRIAL BIOTECHNOLOGY
MATER-BIOTECH
Optimization of the production process life-cycle
through the reuse of the process by-products for
the plant energy demand
Integration of Novamont’s know-how and
competences in the development of low-impact
production processes through an innovative
technology developed by Genomatica, leader in
the specialization of microorganisms for
fermentation processes
Regeneration of the former BioItalia/Ajinomoto
site in Adria, after the shut-down of the
fermentation plant in 2006
First dedicated industrial plant at world level for
the production of butanediol (1.4 BDO) directly
from sugars
INVESTMENT > 100 MILLION EURO
PRODUCTIVE CAPACITY: 30.000 TONS/Y

17. 17
12 TONS
OF LANDFILLED WASTE
350 TONS
OF ASBESTOS
150 TONS
OF SLUDGE
1,150 TONS
OF WASHING WATER
300 TONS
OF OTHER SUBSTANCES
THE REGENERATION PROCESS
THE PLANT CONDITIONS

18. 18THE START-UP OF THE PLANT
2006 2012 2014 2016 20171992
ACQUISITION
BY THE JAPANESE
CORPORATION
AJINOMOTO
(LYSINE
PRODUCTION)
BIRTH OF THE
INDUSTRIAL SITE
IN BOTTRIGHE
(MONTESI GROUP -
PRODUCTION
OF GLUTAMATE)
AGREEMENT
WITH GENOMATICA
START OF THE SITE
REGENERATION
FIRST BDO
INDUSTRIAL
PRODUCTION
SEPT 30TH:
GRAND OPENING
FROM MAY 16TH TO JUNE
10TH: WATER
BATCHING FROM JUNE 13TH TO
OCT 2ND: WHITE
TEST
FULL PRODUCTION
OF BIO-BDO
1960
TIMELINE
SHUT-DOWN OF
THE FERMENTATION
PLANT. ACQUISITION
BY BIOITALIA
COMPANY
NOVAMONT
ACQUIRES THE PLANT.
CREATION
OF MATER-BIOTECH
JULY 18TH:
START-UP
FROM JULY 18TH
TO OCT 3RD:
RAMP-UP

19. 19EMPLOYMENT
TECHNICAL
HIGH-
SCHOOL
DIPLOMA
65%
UNIVERSITY
DEGREE
15%
NO DIPLOMA
OR DEGREE
20%
QUALIFICATIONS (MATER-BIOTECH)
CHEMICAL
INDUSTRY
48%
PHARMAC
EUTICAL
INDUSTRY
26%
ENERGY
INDUSTRY
7,5%
OTHER
18,5%
SECTORS OF ORIGIN (MATER-BIOTECH)
MATER-BIOTECH: 72 PEOPLE SATELLITE ACTIVITIES: 150 PEOPLE

20. 20STAFF GEOGRAPHICAL ORIGIN
DISTANCE OF THE STAFF
GEOGRAPHICAL ORIGIN:
< 10 KM 41%
< 30 KM 26%
< 50 KM 13%
> 50 KM 20%
AREAS OF THE STAFF GEOGRAPHICAL
ORIGIN:
ROVIGO
FERRARA
PADOVA
VENEZIA
Venezia
Padova
Ferrara
Rovigo

21. 21
CONCLUSIONS

22. 22NEW PRODUCTS NOW AVAILABLE AT EU LEVEL
THE TANGIBLE RESULT OF THE BIOECONOMY INFRASTRUCTURES NOW IN PLACE IN ITALY
AZELAIC ACID
C5-C9 ACIDS POLYMERIC
PLASTICISERS
BIO-BDO
CARDOON OIL PROTEINS FOR
ANIMAL FEED
ACTIVE
MOLECULES
MARKET SEGMENTS
Oleochemistry
Energy industry
Packaging manufacturers
Retail market
Waste management &
multiutilities companies
Machine producers
Food brands
Feed
Farmers & sheppards
Maritime
Herbicides
PELARGONIC ACID

23. www.novamont.com
THANKS FOR YOUR ATTENTION
“The challenge of our millennium is in the balance between
the technical means that humanity possesses and the
wisdom in how we will make use of them”
UMBERTO COLOMBO