Renewable Chemicals:– chemical buildingblocks from renewablefeedstocksThomas SchäferHead of Innovation Office, R&D
Sugar & Biomass will be the New Oil                             Fuel                           Chemicals                  ...
Content – as promisedI will discuss the…• thinking and role of Novozymes as the leading industrial biotechnology  company•...
4   8/6/2012   NOVOZYMES PRESENTATIONFact I:                                        The World Is Flat,                    ...
5       8/6/2012     NOVOZYMES PRESENTATIONThe World Is Hot       http://www.google.com/search?q=melting+poles&hl=en&prmd...
6      8/6/2012      NOVOZYMES PRESENTATIONThe World IsCrowded   http://www.economist.com/node/1    8200618
7       8/6/2012     NOVOZYMES PRESENTATIONThe World Is Crowded       http://www.google.com/imgres?q=crowded+world&hl=en&...
8     8/6/2012     NOVOZYMES PRESENTATION The World Is Crowded: Urban Lifehttp://www.google.com/imgres?q=traffic+jam&hl=en...
9   8/6/2012   NOVOZYMES PRESENTATIONAnd The World Is Flat                                         Demography:            ...
10Consequences I: PollutionBiotechnologies are expected to contribute                                  Demography:        ...
11   8/6/2012   NOVOZYMES PRESENTATIONFact II:                                         The Era Of Cheap Oil               ...
12        8/6/2012       NOVOZYMES PRESENTATION                                                                           ...
13…And We Witness Strong Volatilities http://www.wtrg.com/daily/crudeoilprice.html
14Consequences II: Dilemmas            Population                  Security of Energy Supply     #      (demographics)    ...
15Solution:     Re-Think Tomorrow & Innovate
16        August 6, 2012Novozymes in brief Leading-edge biotechnology expertise       World leader in industrial enzymes...
Using Nature’s own Resources Enable SustainableSolutions and Acknowledgement                  Top 1% of Environmental Inve...
18    8/6/2012   NOVOZYMES PRESENTATION     Our Vision     Our Technologies                     RENEWABLE                 ...
19                      NOVOZYMES PRESENTATION Novozymes Vision is to deliver Bio-Innovations in the coming Biobased Socie...
20  Sustainability drives Industrial Biotechnology Increasing support from scientific    “Thus we face the consequences  ...
8/6/2012   NOVOZYMES PRESENTATIONRenewable Chemicals: from tech push to market pull !                                     ...
22        NOVOZYMES PRESENTATIONThe Biorefinery concept
23       8/6/2012       NOVOZYMES PRESENTATION     But in the end it s all about cost, cost, costs…                    200...
24      8/6/2012       NOVOZYMES PRESENTATION …and supply chains security: unseen volatilityhttp://www.wtrg.com/daily/crud...
Traditional Chemicals Come from an Optimized Industry                                      Petroleum-based                ...
…while Renewable Chemicals are in their Infancy…                         Petroleum-based                         chemistry...
27   8/6/2012             NOVOZYMES PRESENTATIONTo make it happen: Technology – key questions:        can we commerciali...
Novozymes’ Entry Technology: The Sugar Platform • Cellulosic bioethanol drives our technology development                 ...
Feb 2010: Novozymes Launches Cellic® CTec2Allows production offuel ethanol frombiomass @ USD 2.00to USD 2.50 pergallon, de...
M&G Breaks Ground for First Commercial Plant                              • Novozymes’ partner M&G begins                 ...
Novozymes’ Entry Technology: The Sugar Platform • Cellulosic bioethanol drives our technology development                 ...
Production of Renewable Chemicals– a Good Fit to our Technology and our Vision                                      Yeast ...
Production of Renewable Chemicals– a Good Fit to our Technology and our Vision                                      Yeast ...
Production of Renewable Chemicals– a Good Fit to our Technology and our Vision                                      Yeast ...
Partnering is essential for us                                       Yeast          Bio-     Renewable                    ...
Novozymes renewable chemicals pipeline in more details                  3-HP            Bio-Acrylic acid                  ...
37      06-08-2012Case 1: Bioacrylic acid, market    Existing market = USD 11 billion    Annual production = 3.1 million...
38   06-08-2012Case 1: Bioacrylic acid, market  Many applications  Many players  A “robust” business case              ...
39        06-08-2012Case 1: Bioacrylic acid, partnership with CargillCurrent petro route for production of acrylic acid   ...
40   06-08-2012Case 1: Bioacrylic acid, upsides 3-HP is a new building block     3-HPA     New applications
Example: Green Polypropylene Project withBraskemGoal:     Development of large-scale          production of polypropylene ...
Our business model – partnerships and royalties• No one is fully integrated across the upcoming value chain• Novozymes wil...
43        NOVOZYMES PRESENTATION – Special Chem Conference, Nov 2010Selected other examples in biofuels and renewablechemi...
8/6/2012       44            NOVOZYMES PRESENTATIONEnzymatic modifications relevant for thechemical industry – single enzy...
Replacing Petrochemicals with Enzymes:Detergent Example Our unique synergistic enzyme portfolio..        ..can replace che...
46Conclusions:     • Renewable Chemicals are there (PLA) - despite all challenges     • Need for radical Innovation for th...
47     Thank you!                  tsch@novozymes.com
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Retech Conference 2011 Renewable chemicals. Chemical building blocks from renewable feedstocks. Novozymes

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At Retech Conference in September 2011, I gave a presentation on the potential of renewable chemicals , the vision of Novozymes in that field and the major global drivers

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Retech Conference 2011 Renewable chemicals. Chemical building blocks from renewable feedstocks. Novozymes

  1. 1. Renewable Chemicals:– chemical buildingblocks from renewablefeedstocksThomas SchäferHead of Innovation Office, R&D
  2. 2. Sugar & Biomass will be the New Oil Fuel Chemicals Energy … 2
  3. 3. Content – as promisedI will discuss the…• thinking and role of Novozymes as the leading industrial biotechnology company• in times of feedstock change• concrete projects in a portfolio of options where biorefining can gradually replace oil refining for the manufacture of bulk chemicals.• As basis I will describe relevant key technologies, our strategy and " untraditional partnerships". 3
  4. 4. 4 8/6/2012 NOVOZYMES PRESENTATIONFact I: The World Is Flat, Hot & Crowded
  5. 5. 5 8/6/2012 NOVOZYMES PRESENTATIONThe World Is Hot http://www.google.com/search?q=melting+poles&hl=en&prmd=ivns&source=lnms&tbm=isch&ei=VD9vTsa 1KYftsgaRvtn9Bg&sa=X&oi=mode_link&ct=mode&cd=2&ved=0CAsQ_AUoAQ&biw=1280&bih=603
  6. 6. 6 8/6/2012 NOVOZYMES PRESENTATIONThe World IsCrowded http://www.economist.com/node/1 8200618
  7. 7. 7 8/6/2012 NOVOZYMES PRESENTATIONThe World Is Crowded  http://www.google.com/imgres?q=crowded+world&hl=en&sa=X&tbm=isch&prmd=ivns&tbnid=vJ9 J_e7_zQHXnM:&imgrefurl=http://www.oddee.com/item_96926.aspx&docid=cQXm77cqhDCl8M&w= 450&h=299&ei=5T5vTs_dK4PCtAaB9dn5Bg&zoom=1&iact=hc&vpx=712&vpy=99&dur=62&hovh=1 83&hovw=276&tx=140&ty=109&page=1&tbnh=120&tbnw=180&start=0&ndsp=18&ved=1t:429,r: 3,s:0&biw=1280&bih=603
  8. 8. 8 8/6/2012 NOVOZYMES PRESENTATION The World Is Crowded: Urban Lifehttp://www.google.com/imgres?q=traffic+jam&hl=en&sa=X&tbm=isch&prmd=ivns&tbnid=JXdbTFvvAX4lqM:&imgrefurl=http://www.dailymail.co.uk/news/article-426647/Forget-motorway-congestion--em-em-traffic-jam.html&docid=AfN9oveglsYcNM&w=468&h=312&ei=FENvTuYLxouzBvLp6LEH&zoom=1&biw=1280&bih=603&iact=rc&dur=453&page=1&tbnh=135&tbnw=170&start=0&ndsp=19&ved=1t:429,r:3,s:0&tx=58&ty=104
  9. 9. 9 8/6/2012 NOVOZYMES PRESENTATIONAnd The World Is Flat Demography: 1-2 Bio People additional in new arising middle classes esp. in BRIC countries
  10. 10. 10Consequences I: PollutionBiotechnologies are expected to contribute Demography: 1-2 Bio People additional in new arising middle classes esp. in BRIC countries
  11. 11. 11 8/6/2012 NOVOZYMES PRESENTATIONFact II: The Era Of Cheap Oil & Gas Is Over
  12. 12. 12 8/6/2012 NOVOZYMES PRESENTATION Source: Technology Review, MIT, Oct 2010  http://bigpeace.com/pmaffitt/2010/08/23/the-era-of-cheap-crude-oil-is-over/
  13. 13. 13…And We Witness Strong Volatilities http://www.wtrg.com/daily/crudeoilprice.html
  14. 14. 14Consequences II: Dilemmas Population Security of Energy Supply # (demographics) Demand Fossile Feedstocks time
  15. 15. 15Solution: Re-Think Tomorrow & Innovate
  16. 16. 16 August 6, 2012Novozymes in brief Leading-edge biotechnology expertise  World leader in industrial enzymes & microorganisms and market leader in all industries where present.  Novozymes Biologicals: a dedicated group of experts for whole cell microbial systems  > 25 accumulated experience with gene- technology for protein optimisation and production Commitment to innovation  ~14% of revenue invested in R&D  More than 6,000 patents, granted or pending  New products represented around 25% of total sales in 2009 Enzymes for industrial use  39 new products launched during the last 5 years Market size ~ USD 2.6 billion PERFORMANCE 2010  global sales USD 1.83 B USD  Operating profit margin 21,3%  ROIC 22,2% Source: Novozymes 2008 estimates
  17. 17. Using Nature’s own Resources Enable SustainableSolutions and Acknowledgement Top 1% of Environmental Investment Organization carbon reporting Best in Class Storebrand SRI Member of Global100 by Innovest Member of FTSE4Good Global and Europe Member of SB20 by SustainableBusiness.com Member of Cleantech Index Member of OMX GES Sustainability Index Dow Jones Sustainbility index Biotechnology sector leader 17
  18. 18. 18 8/6/2012 NOVOZYMES PRESENTATION Our Vision Our Technologies RENEWABLE CHEMICALS Our Strategy and Business model IN 30 MINUTES Selected Examples
  19. 19. 19 NOVOZYMES PRESENTATION Novozymes Vision is to deliver Bio-Innovations in the coming Biobased Society We will deliver biotech solutions from renewable feedstock to consumer & industrial markets
  20. 20. 20 Sustainability drives Industrial Biotechnology Increasing support from scientific “Thus we face the consequences groups supporting governments of burning of high sulfur coal,  Bioeconomy Council depletion of petroleum reserves Germany for transportation, and excess  US Academy of Sciences CO2 being produced as stored hydrocarbon reserves are OECD depleted. Increasing support from NGO s …Sustainable, efficient and clean  WWF sources of energy are crucial to reducing our dependence on and the depletion of fossil fuels. The New Biology can help propel the sustainable production of biofuels”
  21. 21. 8/6/2012 NOVOZYMES PRESENTATIONRenewable Chemicals: from tech push to market pull ! Illustrative examples 21
  22. 22. 22 NOVOZYMES PRESENTATIONThe Biorefinery concept
  23. 23. 23 8/6/2012 NOVOZYMES PRESENTATION But in the end it s all about cost, cost, costs… 2000-2010: Strong increase of crude oil prices… http://www.mongabay.com/images/commodities/charts/crude_oil.html
  24. 24. 24 8/6/2012 NOVOZYMES PRESENTATION …and supply chains security: unseen volatilityhttp://www.wtrg.com/daily/crudeoilprice.html
  25. 25. Traditional Chemicals Come from an Optimized Industry Petroleum-based chemistry Optimization: • Scale • Energy efficiency Level of optimization • Fixed cost reduction • Improved maintenance • Sourcing/supply chains • Value engineering • Plant reliability • On-stream time • … Foundation Development Expansion Diversification Maturity Time 25
  26. 26. …while Renewable Chemicals are in their Infancy… Petroleum-based chemistry Level of optimization Challenge • Renewable chemicals have to compete on price and performance • No subsidies • New infrastructure Renewable chemicals industry Time 26
  27. 27. 27 8/6/2012 NOVOZYMES PRESENTATIONTo make it happen: Technology – key questions:  can we commercialise i.e. earn money with the technology we develop?  NOT: ”can we make it”  BUT: ”can we make it cost-competitive to current technology”  Which R&D success factors do we need to reach like…  Yields: g product/g glucose….no CO2 production  Titres: g product/litre broth  Productivity: g/l/hr  Side products  Which feedstocks  Recovery methods  Chemical transformation  Robustness of process – demo! Selection:  LCA Many “interesting” molecules don´t make  Cost of production plants – CapEx it on the short list  On-par or better with current technology
  28. 28. Novozymes’ Entry Technology: The Sugar Platform • Cellulosic bioethanol drives our technology development Starch Enzyme process Fermentable sugars Yeast Bio- Fermentation ethanol Waste Pre- Enzyme treatment Cellulosebiomass process process Platform Technology: enables production of a broad spectrum of products 28
  29. 29. Feb 2010: Novozymes Launches Cellic® CTec2Allows production offuel ethanol frombiomass @ USD 2.00to USD 2.50 pergallon, depending onprocess 29
  30. 30. M&G Breaks Ground for First Commercial Plant • Novozymes’ partner M&G begins construction of the world’s first commercial-scale cellulosic ethanol plant • The plant will produce 13 million gallons of ethanol per year from biomass, and is competitive with 60-70 USD/barrel oil • The biofuels plant will be ready in 2012, and is located in Crescentino, Northern Italy Pictures courtesy of M&G 30
  31. 31. Novozymes’ Entry Technology: The Sugar Platform • Cellulosic bioethanol drives our technology development Starch Enzyme process Fermentable sugars Yeast Bio- Fermentation ethanol Waste Pre- Enzyme treatment Cellulosebiomass process process Platform Technology: enables production of a broad spectrum of products 31
  32. 32. Production of Renewable Chemicals– a Good Fit to our Technology and our Vision Yeast Bio- Fermentation ethanol Fermentable sugars 32
  33. 33. Production of Renewable Chemicals– a Good Fit to our Technology and our Vision Yeast Bio- Renewable Fermentation ethanol chemicals Fermentable sugars 33
  34. 34. Production of Renewable Chemicals– a Good Fit to our Technology and our Vision Yeast Bio- Renewable Fermentation ethanol chemicals Fermentable sugars Heterogenous Renewable catalysis chemicals 34
  35. 35. Partnering is essential for us Yeast Bio- Renewable Fermentation ethanol chemicals Fermentable sugars Chemical Renewable Catalysis chemicals Novel engineered pathway Renewable -- chemicals Novel bioprocess 35
  36. 36. Novozymes renewable chemicals pipeline in more details 3-HP Bio-Acrylic acid Propanol Bio-PolypropyleneRenewableChemicals sugars Glycols Platform Not disclosed Not disclosed Fructose HMF/FDCA Non-exclusive 36
  37. 37. 37 06-08-2012Case 1: Bioacrylic acid, market Existing market = USD 11 billion Annual production = 3.1 million tons (2005) Annual growth = 4% Serving many different applications, including high-end industries such as diapers, hygiene products, flocculants, coatings, dispersions, and adhesives Super absorbers Fibers 3-HPA Acrylic acid Coatings, adhesives Polymers
  38. 38. 38 06-08-2012Case 1: Bioacrylic acid, market  Many applications  Many players  A “robust” business case Super absorbers Fibers 3-HPA Acrylic acid Coatings, adhesives Polymers
  39. 39. 39 06-08-2012Case 1: Bioacrylic acid, partnership with CargillCurrent petro route for production of acrylic acid Propylene Acrylic acidPropylene 2000: USD 430/metric tonPropylene 2008: USD 1,450/metric tonNew fermentation-enabled route to acrylic acid Starch, 3-Hydroxy- Bioacrylic Glucose Biomass propionic acid acid Chemical Enzymatic Engineered downstream process pathway process
  40. 40. 40 06-08-2012Case 1: Bioacrylic acid, upsides 3-HP is a new building block 3-HPA New applications
  41. 41. Example: Green Polypropylene Project withBraskemGoal: Development of large-scale production of polypropylene from sugarcaneUse: Plastic used in, e.g. water bottles, washing machines, furniture, and car bumpersMarket: ~ USD 66bn market with annual growth rate of 4%Partner: Largest petrochemical company in Latin America. Currently building green polyethylene plant in BrazilTiming: Initial development for at least five years 41
  42. 42. Our business model – partnerships and royalties• No one is fully integrated across the upcoming value chain• Novozymes will not become a chemical company, but will create business via partnering• License approach, asset light• Focus on gradual replacement of existing chemicals New markets for Sustainable supply for grain processors chemical companies Enabler via Biosolutions Combinationof different technologies Combination of different technologies
  43. 43. 43 NOVOZYMES PRESENTATION – Special Chem Conference, Nov 2010Selected other examples in biofuels and renewablechemicals: ”untraditional” projects and partnerships  DuPont/BP: Butanol  Danisco/Goodyear: Isoprene  Amyris Biotechnologies: Isoprene, alternative fuel  LS-9: alternative fuels  Roquette/DSM: Bio-Succinic  Metabolics Explorer: L-Methionine, 1,2-Propanediol, 1,3-Propanediol, N-Butanol, Glycolic acid  Genomatica: 1,4-Butanediol
  44. 44. 8/6/2012 44 NOVOZYMES PRESENTATIONEnzymatic modifications relevant for thechemical industry – single enzymes! Esterification and ester • Application of lipases & cutinases in aqueous or non-aqueous environment. Can be enantioselective. Also used for hydrolysis polyester synthesis. Nitrile hydrolysis • Hydrolysis to amide or carboxylic acid under mild conditions. Can be enantioselective. Free-radical polymerization • Polymerization of aromatic structures by hydrogen abstraction using oxidoreductases Side chain oxidation • Oxidation of aromatic side chains using oxidoreductases Hydroxylation • Hydroxylation of aromatic or aliphatic carbon using oxidoreductases. Can be enantioselective Epoxidation • Epoxidation of double bonds using lipases or oxidoreductases
  45. 45. Replacing Petrochemicals with Enzymes:Detergent Example Our unique synergistic enzyme portfolio.. ..can replace chemicals, and enables.. • Proteins, e.g. blood, Protease grass, meat, egg Cost stability • Oil / greasy body and food Lipase stains, butter, sweat • Starch-based soils, e.g. Amylase ice cream, gravy, potatoes Low temperature wash & other Cellulase • General cleaning, sustainability especially dust and mud claims • Guar gum-based stains, Mannanase e.g. ice cream, soup, makeup Pectinase • Juice-based stains Compaction 45
  46. 46. 46Conclusions: • Renewable Chemicals are there (PLA) - despite all challenges • Need for radical Innovation for the next generation • Market pull - Consumer ask for it • Untraditional partnerships - combine biology & chemistry • new growth markets for grain processors, biotech companies and consumer goods companies • In tune with the environment
  47. 47. 47 Thank you! tsch@novozymes.com

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