SmartCHEM summit 22nd May 2018

1. SmartCHEM summit 2018
Startup`s point of view - building a business based on side-stream
utilization
Kenneth Ekman
CEO, CrisolteQ

2. Crisolteq is a circular economy company that reclaim and recycle metals and valuable constituents from industrial
side-streams
Processing Industrial Side
Products

3. Locations
Harjavalta
• Main site, premises rented from Kemira
• On-site reclamation of metals, collaboration
Nornick
Raisio
• Symbiosis with SmartChemistryPark
• Laboratory and R&D
Tornio
• On-site reclamation of metals and
sulfates from Outokumpu’s stainless
steel plant

4. Background
• Almost all metallurgical and chemical processes are associated with the generation of wastes and
residues that may be hazardous or non-hazardous in nature
• In many cases these residues are being disposed off on land-fills
• Stricter environmental laws (and public attitudes) and economic reasons has forced all industries to
search for eco-friendly technologies in production, and to change business models and operations
in a more resource effective way

5. Megatrends in Chemical Industry
Ref:
https://www2.deloitte.com/content/dam/Deloitte/
global/Documents/consumer-industrial-
products/gx-chemistry%204.0-full-report.pdf

6. Waste-to-Chemicals – an opportunity
Industrial landfills contain valuable resources in the form of critical metals and/or other chemical constituents
Examples of metal-bearing wastes dumped to landfill in Finland
Production site Description Quantity Main components
tons
Mondo Minerals Tailings 400000 Mg, Si, Fe (Al, Cr, Ni)
Boliden Harjavalta Tailings 350000 Fe, Zn, Cu
Sahtleben/Kemira Ferrosulphate 280000 Fe
Boliden Kokkola Jarosite 120000 Co, Ni, Zn (Ge,Ga.In,Ag)
Outokumpu/Tornio Neutralised metal sulphates 25000 Fe, Cr, Ni
Boliden Kokkola Gypsym and manganese precipitates 2000 Mn, Pb
> 2B€ worth of metals
in Finland alone
Figure 1. Metal bearing waste dumped to landfill in Finland

7. Problem and opportunity
Especially the growth of EV’s drives a new demand for critical metals, making it necessary to utilize secondary
resources
Figure 2. Nickel demand and supply (ktpa)
www.ubs.com/investmentresearch

8. Why has the utiliziation of these land-fills and secondary resources been poor to date?
Waste-to-Chemicals – an opportunity

9. Utilization of side streams
ENABLING TECHNOLOGY INNOVATIVE BUSINESS MODEL COHERENT VALUE NETWORK
An innovation that makes
the utilization more
affordable and accessible.
A business model that
distributes the value along the
value chain
A network in which side
stream producers,
processor(s), partners,
distributors, and customers
are each better off
Ref:https://www.christenseninstitute.org/disruptive-innovations/
DISRUPTIV INNOVATION MODEL

10. • Disruptive innovations are not "advanced technologies", they are novel combinations of existing off-
the-shelf components
• It is the business model that the technology enables that creates the disruptive impact
• Disruptive innovations tend to be produced by outsiders and entrepreneurs, rather than existing
market-leading companies.
• The business environment of market leaders does not allow them to pursue disruptive
innovations. They are not profitable enough at first and because their development can take
scarce resources away from sustaining innovations
• A disruptive process can take longer to develop than by the conventional approach and the risk
associated to it is higher than the other more incremental or evolutionary forms of innovations
Successful Disruptive Innovations

11. CrisolteQ - Investments in developing projects to
commercial operation
0,1M€
2005 2007
2M€
2009
0,5M€
2013
1,5M€
2015 2018 Year
Set-up of company Development of current projects
CrisolteQ’s developed current
business and production
operations support add-on projects
Project development stages Years
Piloting 5 side-streams 4y
Production demonstration of 2 large
side-streams
2y
Transition to large scale industrial
operations
2y

12. Circular Economy model in Metal and Forest industry
Other applications
Steel Industry
Pulp Industry
0
Other applications
Residue
Reaction
Separation
Process aid
Stainless steel manufacture
Side-stream
Processing
Processing
New Product
Delignification MgSO4
Recovery boiler Caustization Pulping
Mg(OH)2
Side-stream
residue
Products out Products in Intermediats Process Tornio Harjavalta

13. Summary
Building a business based on side-stream utilization
• Entrepreneur(ial) driven
• Clever combination of existing technologies
• Value networks with side-stream producers, customers, distributors and partners
• New business models
• Linear business models are not applicable in circular economy

14. THANK YOU