E U - I n d i a C o n f e r e n c e o n A d v a n c e d B i o f u e lN e w D e h l i 0 6 - 0 8 . 0 3 2 0 1 8

G i s l e L ø h r e J o h a n s e nS e n i o r V i c e P r e s i d e n t R & D a n d B u s i n e s s D e v e l o p m e n t

L IGNIN FIRST: THE BORREGAARD APPROACH TO LIGNOCELLULOSICSUGARS AND BIOETHANOL

Borregaard’s biochemicals are sustainable and environmentally friendly substitutes to petrochemicals

Technology leader and largest supplier of lignin-based products with global market access

Leading global speciality cellulose supplier. Significant producer of cellulosic ethanol

Only producer of wood-based vanillin. Pioneer in cellulose nanofibrils.

OTHER BUSINESSES16%

PERFORMANCE CHEMICALS48%

SPECIALITYCELLULOSE36%

Business areas

1 4 . 0 3 . 2 0 1 8V A L G F R I T E K S T 4

Borregaard key figures 2017Main location: Sarpsborg, NorwayTurnover: 470 mill. EUREBITA: 75 mill. EUREmployees: 1050Innovation spend: 22 mill. EUROperations: Norway, Europe, USA, South AfricaAdditional offices and labs.: India (Mumbai), Singapore, China, Japan, Brazil

Lignin Specialty cellulose Bio oil Bioethanol Biogas Bark Knots Vanilla flavor Exilva (MFC) 85 kg 80 kg 25 kg 10 liter 8 kg 15 kg 4 kg 1 kg 0,5 kg

210 ton 3000 15 liter 30 km 50 liter 30 sq. meter 2.000 liter 5.000 Marketconcrete spectacle frames heavy fuel oil bus rides soil improver cardboard ice cream chocolate bars introduction

Borregaard biorefinery in Norway

The BALI projectBorregaard value chains

Sarpsborg sulphite mill

Cellulose Bleached cellulose

Specialty cellulose

Bioethanol

Vanillin

Lignin

BALI™ plant

Lignin

Cellulose Sugar Bioethanol Biochemicals

Externalsulphite mills Lignin Borregaard LignoTech production sites

Sarpsborg biorefinery

Borregaard’s biorefinery concept BALI™• BALI™ is a biorefinery concept

developed by Borregaard for productionof cellulosic sugar and ethanol and lignin performance chemicals

• The BALI™ technology has been scaledup and demonstrated in a 1 mt/dayfeedstock demo plant in Sarpsborg, Norway

• The demo plant has been in continousoperation since Q1 2013

• Feedstock tested: Poplar, sugar canebagasse, spruce and pine

• Excellent sugar and ethanol yield due to low level of inhibitors

BALI™ plant

Lignin chemicals

Cellulose fibers

Cellulosic sugar

BioethanolBiochemicals

The BALI™ technology in a nutshell *)

Biomass

Pretreatmentand fractionation

Crude lignin

Cellulose pulp Enzyme hydrolysis

Sugar

Lignin performance chemicals

Biochemicals

Processing and evaporation/drying

Bioethanol

Bioplastics

*): Patents granted world wide

Excello™ - cellulosic sugar from Norway spruce• The BALI™ technology is feedstock agnostic, but

current production of sugars is from Norway spruce

• Extensive testing shows that Excello™ can replace 1G sugars without negatively affecting the chemical or biochemical conversion of the sugars

• 100+ kg samples available immediately for testing under MTA

BALI™ compared to other processes

CelluloseCellulose

CelluloseCellulose

LigninHemicelluloseLigninHemicellulose

Steam explosion/acid based processes

Pretreatment (< 170 °C)Pretreatment (< 170 °C)

Water soluble lignin

Water soluble lignin

HydrolysateHydrolysate

CelluloseHemicelluloseCelluloseHemicellulose

LigninLignin

+

HydrolysisHydrolysis

Water insoluble lignin

BALI™ drop-in sugarwith high purity

ProcessingProcessing

Borregaard LignoTech’slignin performance chemicals

$$$

Hydrolysatew/inhibitorsHydrolysatew/inhibitors

$?

Hydrolysis lignin

+

+

BALI™ biorefinery process

SeparationSeparation

Pretreatment (> 170 °C)Pretreatment (> 170 °C) HydrolysisHydrolysis SeparationSeparationHydrolysatew/inhibitorsHydrolysatew/inhibitors

Removal of water soluble lignin prior to enzymatic hydrolysis allows for production of pure hydrolysates

Market position• Largest supplier with a global footprint• Unique technical and application expertise

ProductionNorway, UK, Germany, Spain, Czech Republic, USA, South Africa

Operating revenues 2017EUR 225 mill.

Applications• Construction• Agro chemicals• Animal feed• Ceramics• Lead acid batteries• Soil conditioner• Gypsum board

Key attractions• A sustainable and versatile product portfolio• High barriers to entry• Large, diverse and stable customer base

Lignin based Performance ChemicalsTechnology leader and largest supplier of lignin-based products with global market access

Further scale up of BALI™• Triggers for a full scale BALI plant (250.000 tons/year sugar or 150 mill. l ethanol)

• Lignin pull• Cellulosic sugar/ethanol valorization• JV partner for chemical production or advanced bioethanol distribution

• Location criteria for a full scale plant• Biomass; sustainability and price• Regional advanced biofuels policy• Regional lignin market and logistics• Regional stability

• Timing: 2023 – 2028 (based on expected time of lignin pull)