Koch Modular Process Systems shares our experience supporting companies successfully commercializing their novel technologies across the chemical processing industries including most recently the advanced plastics and rare earth metals recycling and biochemical markets. Taking a new technology from concept to commercialization can be a daunting process for any company and especially formidable for emerging companies. Whether you are an established company or a start-up, successfully navigating process development and scale-up challenges can directly impact your ability to achieve critical success factors such as: conceptualization, project funding, pilot testing, design development & optimization, and ultimately construction and start up. Success factors which can directly impact your ability to deliver a commercial-scale production unit on time and on budget while achieving time to market and meeting commitments to your stakeholders. Chris Rentsch, Process Development Manager at Koch Modular, will walk through Koch Modular’s modularLAUNCH: Delivery Model. Furthermore, he will share real world examples and discuss critical success factors during each phase of process development and the pitfalls to be on the lookout for, which have the potential to sideline your project.

1. CONCEPT TO
COMMERCIALIZATION
- Navigating Process Development and Scale Up
Challenges
Presented by: Chris Rentsch & Mauricio Villegas
Koch Modular Process Systems
Chris Rentsch
Process Development Manager
Chris.rentsch@kochmodular.com
989-941-7051
Mauricio Villegas
Business Development Manager
Mauricio.villegas@kochmodular.com
832-859-0416

2. Koch Modular Presenter Biography
Chris Rentsch is a Process Development Manager at Koch Modular and is
responsible for process development and overall design and operating parameters of
chemical plant process systems within the Chemical Processing Industry.
Chris has 15+ years of experience working with developing technology companies as
well as established chemical industries, which includes
numerous international plant start-up assignments.
Prior to joining Koch Modular, he held various engineering roles at Origin, Dow and
BP. Chris holds a BS in Chemical Engineering from the University of Michigan.

3. Poll Question
Are you currently involved in, or anticipate being involved in an upcoming
project to commercialize a new technology?
1. Currently involved
2. Within 1 - 6 months
3. Within 6 - 12 months
4. 1 year +
5. n/a

4. Koch Modular Process Systems is a Joint Venture company,
partnered with , one of the world's most
prominent suppliers of mass transfer equipment. Koch-Glitsch’s
parent company is Koch Industries, one of the largest privately
held corporations in the United States.
Technical Expertise
For over 30 years Koch Modular has successfully designed and
supplied complete modular constructed process systems for the
worldwide Chemical Processing Industry.
Our customers rely upon us for our technical expertise and
quality systems.
Koch Modular at a Glance

5. Industries Served
▪ Performance Materials
▪ Specialty Chemicals
▪ Petrochemicals
▪ Polymers
▪ Pharmaceuticals/Biotech
▪ Food, Flavor & Fragrance
▪ Agricultural
▪ Biofuels
▪ Plastics/Rare Earth Metals
Recycling
▪ Renewable Chemicals
▪ Mining & Metals
▪ Environmental
▪ Oil & Gas
5

6. Our Capabilities & Expertise
Engineered Smarter. Built Modular.
Process
Engineering
Pilot Plant
Testing
Modular Process
Systems
Expertise in Distillation,
Liquid to Liquid Extraction,
Gas Absorption and
Thermal Design.
Pilot Plant specialized in
the development and
testing of mass transfer
processes.
Early FEL partner in the
design and commercialization
of fixed price modular process
systems with a performance
guarantee.
• Process Design Solutions
for Complex & Difficult
Mass Transfer problems
• Proven Technology
backed by Pilot Testing
and Koch Modular
Performance Guarantee
• Project Certainty and
Savings through Modular
Design and Delivery
Core Strengths

7. Navigating Process Development and Scale
Up Challenges

8. Critical Success Factors & Challenges
Project Critical Success Factors:
• Timely Concept/Technology Selection
• Viable CAPEX/OPEX Economics
• Technoeconomic Scalability
• Achieving Project Funding at Each Gate
• Successful Pilot Testing
• Design Development & Process Optimization
• Construction and Start-Up
• Time To Market
Project Team Challenges:
• Expertise Breadth
• Resource Availability
• Project Management Experience
• Pilot Testing Facilities
• Operations & Maintenance Expertise

9. modularLAUNCHTM

10. 10
modularLAUNCHTM: Engineered Smarter. Built Modular.
6

11. Technology Development
FEL-2 FEL-3 Detailed Design
EPC Industry
±0%
±0%

12. 12
modularLAUNCHTM: Engineered Smarter. Built Modular.
6

13. Process Technology Development

14. Process Development - Concept
1) chloroform
bp = 142F
2) dodecane
bp = 420F

15. Process Development - Concept
SOLVENT
PRODUCT
PRODUCT
PRODUCT

16. Process Development - Filtration

17. Process Development - Filtration
Filtration

18. Process Development - Filtration

19. Process Development - Filtration

20. Process Development - Distillation

21. Process Development - Distillation

22. Process Development
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Liquid mol fraction AVapormolfractionA

23. Process Development
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Lower
Pressure
Intalox 1.5T
77 ft2/ft3
Liquid mol fraction AVapormolfractionA

24. Process Development
BX Wire Gauze

25. Process Development

26. Process Development – Heat Transfer
https://www.fluor.com/SiteCollectionDocuments/reboiler-
circuit-debottleneck-chemical-engineering-aug2017.pdf
See Figure 3 in “Reboiler Circuit Debottleneck with
No Hardware Changes”

27. Process Development – Heat Transfer
Thermosiphon Forced circulation Falling film Kettle

28. Process Development – Heat Transfer
0
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2500
$-
$10,000
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$100,000
Area(ft2)
-20%

29. Next: Economic Feasibility Evaluation

30. Commercial Validation

31. Engineering the Details of Your First-of-a-Kind Commercial Plant

32. Design

33. Modular Construction: The Plant Takes Form

34. Current Changing Contract Landscape
EPC’s Exiting Competitive Lump Sum Contracting
KBR followed recently by Fluor announce exit from competitive EPC Lump-sum
bidding for energy and chemicals business citing:
• Increased Project Risk
• Transactional Market Place
• Market Uncertainty driven by COVID-19 Pandemic

35. 35
Module Fabrication
All equipment, electrical, instrumentation and piping readily accommodated within the confines of the structural steel
frames and Factory Tested onsite prior to shipment.
Module Assembly Indoors in Horizontal Orientation
~90%
Field work
eliminated

36. Different Types of Truckable Modules
Demonstration Scale
System
Pilot Scale System
36

37. Different Types of Truckable Modules (Cont’d)
Commercial Scale System
37

38. Modular Project Delivery Model - Benefits
• Controlled environment
• Increased Productivity
• Schedule improvement
• Minimize interruption to
site operations
• Construction proceeds
while waiting on permits
• Reduced workplace
hazards and injury
• Reduced exposure to
Illness
Health & Safety ContractCompletion Commercial
• Greater risk transferred
to Contractor
• Performance Guarantee
• Single Source
Responsibility
• Advanced Definitive
Estimate
• Fixed Pricing
• Overall Cost Savings
Manage project risk through modularization and achieve project
predictability.
• LSTK Price Contracts
• Shorter Time to Market
• Lower Capital Cost
• Construction & Permitting Simops
• Minimize Hazards and Safety Risk
• Single Source Responsibility

39. 39
Module Transportation
Koch Modular has existing relationships to manage module transportation to both domestic and global project sites.
Transporting modules requires highly specialized transport vehicles, a
knowledge of available transportation routes, interstate & local
permitting requirements as well as anticipated road hazards.

40. 40
Module Staging and Installation
The remaining installation effort includes installing
any shipped-loose items and completing process
and utility piping tie-ins and necessary electrical
connections.

41. Start-up

42. 42
Start Up & Commissioning Support
By employing a modular delivery model, projects can potentially reduce start up and
commissioning time by weeks.
Depending on number of modules within a process system, complete process systems can be
installed over a single day or over just a few days.
Since modules are ~90% completed and FAT tested, start-up and commissioning activities can
begin almost immediately and supported by Koch Modular staff.
Support includes:
• Operator Training
• Start-up and Commissioning Onsite Technical Support

43. Case Study

44. 44
Recycled Polypropylene Project
Client: PureCycle Technologies
Product: Recycled Polypropylene
Process: Condfidential
Project Overview:
Koch Modular has been working together with PureCycle for more than three years
on the development of its advanced recycling technology which removes color, odor
and other contaminants from recycled feedstock resulting in virgin-like ultra-pure
recycled polypropylene (UPRP).
Koch Modular has completed the Phase I Feedstock Evaluation Unit (UPRP) and
delivered successful production of UPRP at scale. This award includes the supply of
a complete raw-material-in-finished-product-out process system, modularly
constructed in a controlled indoor environment and shipped to the plant site via
roadway.
Subsequently, Koch Modular has been awarded the contract to construct Phase II of
its commercial recycled polypropylene facility, to be located in Ironton, Ohio and
designed to produce over 105 million pounds of UPRP per year. Construction of the
facility is underway, and the plant is expected to come online in 2022.
PureCycle CEO Mike Otworth says,
“Koch Modular’s guidance, professionalism and end-to-end expertise in innovative
technologies scale-ups like this one, plus their modular construction approach, was
a critical success factor for our project.”

45. 45
Biomass Conversion Project
Client: Confidential
Product: Chlorinated Hydrocarbon
Process: Reaction, Distillation and Filtration
# Modules: 17 (15 Process Modules, 2 Stair,
1 Standalone Vessel)
Schedule: 14 -16 months
Project Overview:
Koch Modular supported scale-up and commercialization
of complex bio-based plastic production technology.
Primary focus was front end engineering related to
conversion of biomass to a chlorinated hydrocarbon, via
reaction, distillation and filtration unit operations.
Scope of services included: engineering services,
process conceptualization and pilot testing phase,
process design package and capital project estimate,
detailed engineering, ISBL & OSBL controls and
construction of their demonstration scale system.
Technical challenges included changing byproduct
compositions as a result of evolving feedstock choice
and the need to produce enough volume (read yield) of
material, after feedstock and technology selection.

46. Poll Question / Q& A Session

47. Poll Question
From a Project Delivery standpoint, what do you see as your greatest
challenge to Commercializing new Technology?
1) Concept Selection / Scale-up
2) Cost Estimating / Economic Modeling
3) Resource Availability & Depth
4) Project Management
5) Other

48. Q& A Session

49. THANK YOU