This document provides a company profile for N2Bio, which aims to establish a prototype factory to produce environmentally biodegradable biopolymers from cassava starch. Key details include: - The factory will convert cassava starch into bags and sacks as a first product, with the goal of replacing fossil-based plastic bags. - N2Bio will set up production in the Netherlands, Germany, or Italy and is evaluating criteria such as logistics costs, electricity costs, proximity to clients and research institutions. - Major needs include partnering with European scientists for product development and testing, identifying additional biopolymer production technologies, and securing 30-50% of the estimated €150k capital

1. Company Profile
as of December 4th, 2019

2. 1
WHAT
To establish a PROTOTYPE FACTORY of environmentally biodegradable biopolymers. We will import non-edible industrial cassava
starch, then turn it into biopolymer final products. Our technology is about PROCESS and not equipment. We will set up a small
plant of polymerization & lamination to convert cassava starch into sacks and bags, replacing the most used & harmful fossil-
based low-density polyethylene (LDPE). But higher added-value products are achievable, as medicine and cosmetic bottles. The
suggested first target market is the industrial bakery (loaf bread, bun, etc.).
DEFINITIONS
Since an ambiguity from the EN 13432 promoted by the European Bioplastics Association (EuBP) to define “bioplastics”, we stand
on IUPAC’s terminology. The correct term for our products is ENVIRONMENTALLY BIODEGRADABLE BIOPOLYMERS (EBBs).
Important to make a DISAMBIGUATION between N2Bio’s polymers and the COMPOSTABLE ONLY, either bio-based or fossil-based
polymers that are NOT ENVIRONMENTALLY BIODEGRADABLE, but called as “bioplastics” by EN 13432 and EuBP. These require
industrial composting facilities (which are very scarce) to artificially turn them into compost (humus). Therefore, the major of
these “bioplastics” may become litter and microplastics just like fossil-based polymers do when inadequately disposed (i.e. “I’m
green” from Braskem or “Ecovio” from BASF). That may increase the environmental liability for Germany, 2nd
largest fossil plastic
exporter, relatively higher than China (DE $10 bn/$3.5 tri GDP; CN $20 bn/$14.5 tri GDP) and for The Netherlands, the 7th
plastic
exporter (NL $ 2.2 bn/0,82 tri GDP), also higher than China’s exports in relation to its own GDP. N2Bio’s polymers are compostable
as well. However, if they become litter in the environment, they will fast & naturally biodegrade by digestion by fungi or bacteria,
either under aerobic or anaerobic digestion, as like in soil as in aqueous medium, never breaking down into microplastics.
WHY US
An annual survey in Europe has measured the tolerance of the average consumer for the additional cost on “green products”,
compared to fossil counterparts. That limit was found as 40%. The cost (€/kg) of “bio-polyethylene” films are in the range of 150%
to 250% higher the cost of fossil PE. Laboratory essays have shown that N2Bio technology is able to offer costs only 50% higher
than the fossil PE (scale-up will bring our costs even lower), with the additional advantage of being an EBB (beyond compostable).
Thus, we are cheaper than the inadequately called bioplastics and truly effective for the very serious problem of plastic pollution.
HOW
N2Bio has no parent company so far. We prefer to register only one new company in the European country chosen. But we are
open to quickly register a new company in Brazil, if necessary to start formal agreements with European support mechanisms.
The PROTOTYPE FACTORY will run a patented technology of a polymerization process from cassava feedstock into small pellets
then laminated, molded, to create industrial or commercial supply products. In the biopolymer business sector, patents may apply
on the biopolymer itself, or on the production process (machinery, parameters), or both. Irrespective of the biopolymer we
choose to manufacture (two types under negotiation), the contract packages include, in both cases, the transfer of all know-how
needed (including patent licensing) to convert bio-based feedstock into industrial or commercial packaging supplies. The
implementation requires technically oriented services. Some will be carried out by the technology owner’s team (Brazilian
scientists) as an additional cost to the technology basic package (scale-up research & tests). Other services will be executed by
technicians (academia or applied-research institutions) hired locally in Europe by N2Bio. All N2Bio’s founders will live in Europe
to contribute directly and personally with the business-oriented services and overall project management.
WHEN
N2Bio is negotiating a university-based patent: biopolymers from cassava starch for transparent, flexible or rigid packaging
applications. It is simple, fast, its royalties have been agreed and it will launch the company into the European biopolymer market
& ecosystem. It just waits contract’s signature for patent licensing & know-how transfer. For the DECISION PHASE, our optimistic
estimation is 4 months. The conservative is 5 months. By the term “decision”, we understand to cover the 4 pre-installation tasks
(that means, tasks before moving into the physical facility), as follows below:
1. Application and approval within a GRANT AND/OR LOAN provider (for machinery). Our first goal is to put 30-50% of the CAPEX
from our pocket, and the other 50-70% coming from GRANT AND/OR LOAN. However, we are able for higher equity levels
(from our pocket). We will make the cost and benefit comparisons between support mechanisms from NL, DE and IT.

3. 2
2. Application and approval within a grant provider, to raise up € 50-60 k for scientific and technical services (including
certifications). We aim the highest GRANT level that may be possible in each country to be compared. Technical services will
be partially purchased in the chosen destination, and partially purchased from Brazil (technology owners).
3. Signing the formal agreements with both the Brazilian and the European scientific service providers (first “scale-up project”).
4. Signing a letter of intention for rental (1 month of reserve) of a small industrial shed (micro location), no more than 30 km
from the scientific service provider (desirable, not mandatory). The region of the European scientific service provider will be
the main input to define the micro location, advised by the scientific provider or other advisors introduced by them.
The ESTABLISHMENT PHASE starts by ending Feb 2020, just after these 4 tasks above. N2Bio’s optimistic scenario is 2 months for
it, up to ending Apr 2020. The conservative scenario is 3 months. That means the routine administrative red tapes (company
register, industrial permits, visa, etc.), in parallel to a small-sized EPC project: civil works, machinery purchase, delivery & turnkey.
The PILOT PHASE merges the decision, the establishment and the prototype production phases. Under an optimistic scenario, the
prototype level (180 tonnes/y) will run by 8-12 months. By the 4th
Quarter 2020, N2Bio shall to start an expansion towards its
INDUSTRIAL PHASE (1,000 tonnes/y; equity + loan). That means a second scientific “scale-up project”, plus a medium-sized EPC
contract, aiming at starting its industrial-sized operations up to Jun 2021.
HOW MUCH
We estimate ~15 tonnes/month output. Considering 4 g/sack, that is 170,500 “bread bags”/day; 0,5 kg/bread = 85 bread ton/day.
That is the capacity of 1 middle-to-large baking plant (~250 employees). If 6g/sack, we are able to supply a bread production of
57 ton/day. We seek preferably 3-4 small client companies to start (or 2-3 small-to-middle), each one normally has more than
one factory, wondering each company will start testing the sacks on products like whole/integral and gluten/milk free breads,
about 20%-25% their package needs. A PROTOTYPE FACTORY must provide at least € 9,000 monthly income, for life support of
the 3 founders into the factory. That suggests 15 tonnes/month @ € 3.50/kg as sale price for final products. It is a conservative
pricing, ~50% higher than fossil-based bags, while the traditional biopolymers are 150-250% higher, considering lower-value
products like packaging sacks. Higher added-value products are also achievable by N2Bio, as medicine or cosmetic bottles. The
estimate is to pump € 630 k a year in the local economy, under the conservative pricing. The estimated CAPEX is € 140-150 k
(conventional equipment from Europe): (a) € 120 k for turnkey of the plastic pelletizer and the laminator @ 70-90 kg/h, plus their
auxiliary devices. The nominal capacity shall to be 24 ton/month, but it will start on 2/3 output rate to allow our management of
contingencies (1 shift; 8 working hours/day; 22 days/month); (b) € 20-30 k for
civil works, utilities, equipment & tools (plant, office and laboratory). The
estimated RD&I investment is € 50-60 k for the scale-up project. It means
adaptations and certifications from lab-sized experience towards 15
tonnes/month: (a) € 15-20 k for Brazilian scientists, (b) € 10-15 k for European,
(c) € 5 k for machinery technicians, (d) € 20 k for lab tests & certification. Find
at right a preliminary essay for monthly expenses. By the 1st
year, the
prototype (180 tonnes/y) will bring 7 permanent jobs (4 salary € 2,500 + 3
founder’s income € 3,000), further to the indirect jobs by the hire of 15
tonnes/month inbound logistics (paid by N2Bio), plus 15 tonnes/month
outbound logistics (paid by N2Bio’s clients). Those 4 employees are eligible to
be minimum 2 locals and maximum 2 expats. By the 2nd
year, N2Bio aims to
achieve its industrial scale, 35 collaborators for 85 tonnes/m (1,000 tonnes/y).
WHO
Jean Carlo Viterbo (44, single, no children)
Strategic planning, financial analyses or business development for investment in infrastructure and high-tech enterprises.
Operational, economic, legal & political analysis & negotiations for Institutional Relations or Government Affairs. Bachelor in
Business Administration, FGV/Brazil; Specialized in Renewable Energy, Uni-Kassel Germany (best ranked student at the 2004
program sponsored by InWent, absorbed by GTZ, now GIZ); Master of Science in Naval Engineering, USP/Brazil; Specialized in
Exponential Technologies at Singularity University, Nasa Ames & Google, Silicon Valley, USA. Director at the Brazil-India Chamber
of Commerce São Paulo. Head of Strategy at International Dialog Advisors, a Brussels-based corporate diplomacy consultancy,
Strategy Director at CRIVEX and Acayos Agro Ltd, consultancies in agribusiness & trade. First Brazilian to research on Offshore
Wind Energy innovation (design and public policies). Senior consultant for infrastructure & sustainability enterprises, in particular,
renewable power, liquid or solid biofuels manufacturing and exports, vegetal protein large scale production and exports (pulses)
and, lately, Environmentally Biodegradable Biopolymers – EBBs.
Summary of monthly ORDINARY expenses
Min CAPEX € 150 k; 15 t/m @ €3.50/kg; 1.5
kWh/kg; non-edible grade starch; costs for DE
REVENUE 52,500 100%
4 employee’s salaries 10,000 19.0%
raw material (@ port) 6,500 12.4%
inbound logistics 3,000 5.7%
other supplies 2,500 4.8%
power (25 MWh) & water 4,500 8.6%
building lease (400 m2) 2,000 3.8%
other expenses 3,100 5.9%
royalties 1,600 3.0%
taxes 8,000 15.2%
social cost over salaries 2,300 4.4%
3 partners’ income 9,000 17.1%

4. 3
WHERE
The Netherlands and Germany are the most suitable to establish N2Bio, followed by Italy. In NL, the apparently suitable regions
are those surrounding Wageningen and Utrecht. In DE, those surrounding Hannover, Düsseldorf, Stuttgart and München.
In ascending importance order, the criteria for choosing the country and city (macro location) are as follows below:
1. Total logistic cost of feedstock, to imported in the beginning;
2. Cost of electricity;
3. Distance to major clients (found by N2Bio, after micro location, by its turn after agreement with the European scientists);
4. Distance to a know-how cluster of bio-polymerization and related machinery (European scientific service providers);
5. Routine administrative red tape (time, complexity and cost for visa, permits and lease, for housing and manufacturing);
6. Cost of living in the candidate city;
7. Challenges to earn non-reimbursable funds for CAPEX and RD&I;
8. Federal and/or state disambiguation, legal/institutional support and business incentives to ENVIRONMENTALLY
BIODEGRADABLE BIOPOLYMERS (EBBs).
MAJOR NEEDS
1. European scientists: to work in the final stage of the scale-up process (tests & contingencies). Ideally connected to a research
or industrial cluster on biopolymers, the more specialized in starch (or cassava), the better, concerning to chemical and
thermo-mechanical processes of starch polymerization and molding. Two months before and one month after the turnkey,
the Brazilian scientists certify the machinery procurement, parameters and tests on machinery and products. They also
manage independent certifications on products. After the 1st
month of the Brazilian service, the European scientists start to
work in touch with them. The best-scenario (not mandatory) is to find TWO RESEARCH INSTITUTIONS/groups into the
European country, for N2Bio to perform a cost-benefit analysis of two different science providers in the country, which are
critical for the pilot phase. N2Bio knows that pricing is not the major criteria for ranking the cutting-edge knowledge. The more
important criteria is the scientists’ engagement with N2Bio project and adherence to the founder’s culture and goals. In case
of additional non-reimbursable funds, N2Bio is keen to assign continuous RD&I projects to improve new technologies after
the pilot phase, whether or not spin-offs from the Brazilian patented technology. Agreements for no conflicts of interest with
N2Bio and the Brazilian technology owner will be required from the European scientists and their research institution.
2. Other EBB patents ready to scale-up: N2Bio and the Brazilian technology owner have already agreed on clauses and pricing
for cassava-based biopolymer technology transfer and the contract will be signed by the 4th
quarter of 2019. Therefore, there
is still space for N2Bio to receive descriptions of patents/technologies available for licensing. That is desirable, not mandatory.
Concerning to new technologies on biopolymers, the central criteria or goals targeted by N2Bio are:
a. to explore, preferably with exclusivity into its operational country or in Europe, a patent of LOW CAPEX allowing;
b. to convert biomass-based feedstock into 100% environmentally degradable polymer, eligible to certification;
c. to efficiently replace “fossil-based” and “bio-based compostable” polymers;
d. in general, to be molded into low or middle added-value, flexible or rigid, industrial or commercial supplies as food/
beverage package, disposable tableware, carrier bags, agro coverings, medicine/cosmetic bottles, personal gadgets;
e. in specific, N2Bio is interested in (i) EBBs for internal coating of bottles, or (ii) nanomaterials to mix into starch-based
polymers, aiming at dairy and beverages conservation, or (iii) EBBs suitable to 3D printing.
3. Support for the decision about micro location: N2Bio is comparing location options to establish the prototype factory. Besides
the best candidate countries are identified, the most suitable city in each country remains unknown. The same city or region
of the European scientific provider should be the best to N2Bio. We need help to identify a small industrial shed and its lease
cost. We estimate 400 m2 or less, divided into 200 m2 for production, 100 m2 for warehouse and hardware, 100 m2 for office,
laboratory, etc. It is not necessary to be at premium location, neither to be close to airport. If any waterway or railway around,
the better. How bureaucratic for leasing and permits? Any special incentive? What liabilities in such city/building? By
improving the budget for the 8 decision criteria addressed in the section “WHERE” of this profile, we shall to find the answers.
But we need free or low-cost advice from qualified local people (scientists or local stakeholders of goodwill). Note that we are
not asking long lasting free services on this, but only the existent knowledge (networking, phone calls and suggestions) of local
stakeholders to foster the survey on to micro location that we are going to make by ourselves. In addition to the advisory on
micro location, we will also need Legal Adviser and Tax Adviser. We think the most likely is the cost of these two services not
to be covered by non-reimbursable funding, and we will include these into the cost benefit analysis.
4. CAPEX’s non-reimbursable funding, focusing on machinery: The estimated CAPEX for the prototype is € 150 k, 30-50% by
ourselves as collateral. Thus, we seek for public or private support on € 75-105 k to be spent along 3 months (1 month before
the turnkey, and 2 months after). Note this is our best scenario. However, we are open for other alternatives, either lowering

5. 4
the absolute or the relative value of the non-reimbursable funding, either combining the non-reimbursable funding with a
bank loan. N2Bio is fully open to fit into the minimum limit of collateral investment (equity) that comes as required to start
the company. We will compare the cost & benefit of support mechanisms from The Netherlands, Germany and Italy.
5. RD&I’s non-reimbursable funding: The scientific and technical services costs combine an estimate of € 60 k RD&I grant. This
is to be spent along 5 months (2 months before turnkey and 2 months after). N2Bio’s founders will deliver full time on-site
work as collateral to the RD&I grant. The goal is to get, from the European country chosen, 100% non-reimbursable grants for
the scientific services, both for the Brazilian scientists as for the European scientists. N2Bio feels unlikely to find grants in Brazil
to finance a scale-up project to be run in Europe. Note this is the best scenario for funding the RD&I. However, we are open
for other alternatives, as like lowering the absolute or the relative value of the non-reimbursable funding regarding to RD&I.
Source: The Technology Readiness Level Scale as a Research & Innovation Policy Tool, EARTO Recommendations.
EARTO - European Association of Research & Technology Organizations, 30 April 2014