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NexantThinkingTM

Growing Value: Options for

Increasing the Value of Biomass

Producing Land Brochure

June 2015

Special Reports

NexantThinkingTM

Special Reports

Growing Value: Options for

Increasing the Value of Biomass

Producing Land Brochure

June 2015

Special Reports

This Report was prepared by Nexant, Inc. (“Nexant”) and is part of the NexantThinking™ suite. Except where specifically stated otherwise in this Report, the

information contained herein is prepared on the basis of information that is publicly available, and contains no confidential third party technical information to

the best knowledge of Nexant. Aforesaid information has not been independently verified or otherwise examined to determine its accuracy, completeness or

financial feasibility. Neither Nexant, Subscriber nor any person acting on behalf of either assumes any liabilities with respect to the use of or for damages

resulting from the use of any information contained in this Report. Nexant does not represent or warrant that any assumed conditions will come to pass.

The Report is submitted on the understanding that the Subscriber will maintain the contents confidential except for the Subscriber’s internal use. The Report

should not be reproduced, distributed or used without first obtaining prior written consent by Nexant. Each Subscriber agrees to use reasonable effort to

protect the confidential nature of the Report.

Copyright © by Nexant Inc. 2015. All rights reserved.

www.nexantthinking.com

Special Reports-Prospectus Growing Value: Options for Increasing the Value of Biomass Producing Land

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Contents

Section Page

1 Introduction ............................................................................................................................. 1

1.1 OVERVIEW ............................................................................................................... 1

2 Report Scope ......................................................................................................................... 3

2.1 OBJECTIVES ............................................................................................................ 3

2.2 SCOPE ...................................................................................................................... 3

2.3 DELIVERABLES ....................................................................................................... 4

3 Proposed Table of Contents................................................................................................... 6

4 Methodology ........................................................................................................................... 10

5 Nexant's Experience............................................................................................................... 11

5.1 GENERAL ................................................................................................................. 11

5.2 ASSIGNMENTS UNDERTAKEN WHICH COVER BIOFEEDSTOCKS,

BIOCHEMICALS, BIOFUELS, AND/OR BIOREFINING SCHEMES ........................ 13

6 Contact Details ....................................................................................................................... 19

Figure Page

1.1 World Map of Countries with or without Biofuels Mandates, 2015 ......................................... 2

2.1 Example of Graphical Outputs ............................................................................................... 5

5.1 Nexant Office Locations ......................................................................................................... 11

Table Page

5.1 Biorenewable Insights Topic Coverage .................................................................................. 17


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Section 1 Introduction

1.1 OVERVIEW

Land owners have many options for increasing the value of their arable biomass-producing land. Land-

owners around the world who are or may potentially be biomass generators are focused on maximizing risk-

adjusted returns on each acre. Until recently, cellulosic biomass has been generated as a byproduct of

crops or forest products. Currently and historically, biomass producers may or may not have participated in

downstream processing of these primary bio-products, so may or may not have had ownership or control of

the byproduct biomass. Alternatively, with the development of field and forest species and systems for the

production of on-purpose biomass, they may have complete ownership of the biomass. Only a tiny fraction

of all potentially available biomass is being exploited, globally.

Most players would not be particularly loyal to specific technology or options. In effect, they would like to

maximize returns without taking significant risks. There are a wide variety of options that range from very

low risk, common ones that are easy to finance with debt, to moderate or high risk options that may be

harder to finance. The low risk options yield minimum returns, such as commercial development or selling

the land to others for commercial development. Moderate risk options include harvesting biomass for

electricity generation or pelletization, which have relatively low technology risks, and low capex, but can

yield somewhat higher returns. Higher risk manufacturing ventures using biomass to produce biorenewable

fuels and/or chemicals can be much harder to finance, and often with debt, but may also yield much higher

returns.

From preliminary surveys of several technologies, Nexant notes the good returns of the relatively basic

processes (electricity conversion, pelletization, etc.). For these “entry” technologies, relatively low

technological risk, very low capex, and high margins may translate into faster payback periods. More

sophisticated processes (biomass to fuels, biomass to chemicals, biomass to biochar, etc.) need to be even

more profitable (higher margins, lower per ton capex) to compensate for the higher risk that is inherent to

new technologies.

Some of the most interesting regions to analyze for this type of opportunity include countries in the tropics

and sub-tropics, such as Malaysia, Indonesia, Thailand, India, Northern Australia, Brazil and contiguous

Andean/Amazonian countries, Sub-Saharan Africa, Europe, as well as the United States. Biomass

resources include EFBs (Empty [Palm] Fruit Bunches), sugarcane wastes, lumber and paper mill wastes, as

well as rice straw (currently burned to clear the fields — with no sort of heat or power generation

associated). Forestry and paper production resources are also especially relevant in the United States

regarding the approximately 1,500 sites where pulp and paper mills have been shut down since 1990.

Other special conditions prevail in the policies of various regions and jurisdictions. In the EU, there is

favorable pricing for renewable electricity (which biomass-based electricity qualifies for) and ROCs

(renewable energy credits) available for renewable electricity that is generated. In the United States, there

is the RFS (Renewable Fuels Standard) and RINS (Renewable Identification Numbers for green engine

fuels) mandates, and RPS (the Renewable Portfolio Standards), which are mandates for electricity

generation in some states. There are also various tax credits and mandates for biofuels and renewable

electricity in various countries throughout the world. Figure 1.1 shows a map of countries with and without

biofuels mandates. There are mandates in countries on all of the inhabited continents on the planet.


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Section 1 Introduction

Figure 1.1 World Map of Countries with or without Biofuels Mandates, 2015

Nexant proposes to define, characterize, and study in detail a number of example options along this

spectrum from low risk / low return to high risk/high return paradigms to help understand the value

proposition of technical risk, the typical scale of investments required, and the modes of financing from

equity investment to non-recourse project financing.

Nexant will strive to provide clients with answers to the following questions relative to a defined set of

options:

What are the risk levels of the various options, and the corresponding levels of potential return?

How much investment is required?

What development timelines are required?

What modes of financing are available?

What are the differences across regions with regard to feedstocks, technologies, products, and

policy/market considerations?

Nexant has an extensive background in bio-based technologies and feedstocks, both commercial and

developing, as well as a deep background in market analysis and economic modeling. Nexant will use its

extensive network of primary and secondary sources to provide subscribers with unrivaled industry insight.

Nexant’ core competencies are in the electric grid, clean energy, biofeedstocks and biofuels. Although

Nexant’s coverage of bio-based technologies is primarily provided by the Biorenewable Insights subscription

service, this report will incorporate information from across Nexant’s experience in the clean energy and bio-

based industries and serve as a complementary study specifically on the economics of biorefinery ventures

and biofeedstocks ventures.

This prospectus describes Nexant’s multi-client study, the scope of the proposed report, the methodology to

be used, and Nexant’s qualifications to perform such a study. The study is expected to be completed on or

around the end of 2015.


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Section 2 Report Scope

2.1 OBJECTIVES

This report is designed to analyze the relative risk, investment amounts, and economic competitiveness of

different options for biomass producing land. This will be done through the exploration of the target

feedstock and product markets, as well as locational restrictions. Nexant will provide outputs as shown in

the deliverables, and draw conclusions based upon this analysis. Nexant will also identify and quantify the

amount of technological and market risks associated with each option.

2.2 SCOPE

This study will help investors and developers to determine ideal risk-return levels for ventures involving

biomass producing land.

Nexant will analyze the following:

2.2.1 Technologies

Nexant will investigate the following approaches and technologies

Land upgrading (e.g., earthworks only)

On-purpose biomass generation

Byproduct biomass collection

Several electricity generation technologies:

o Boiler

o Gasifier

o Other

o Cogeneration versus No Cogeneration

Comminution and Pelletization technologies

Cellulosic sugars production

Biomass to ethanol

Biomass to hydrocarbons/petrochemicals or petrochemical intermediates

Biomass to other chemicals

Biomass to other solid products/coproducts

For these, Nexant will consider, characterize, quantify, and analyze:

Capital/Investment Costs

Feedstock availability/price

Product price (market based, incentive based, etc.)

Market Sizes

Regulations, market disfavor, and other risks

Externalities (oil price, etc.)

Nexant at its discretion will select specific individual technology developers, or develop generic model

technologies to represent various options.


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2.2.2 Feedstock Selection

Certain feedstocks lend themselves better to certain applications or technology options; Nexant will

characterize the experience with, and the challenges and benefits of key feedstock/technology matches.

2.2.3 Effect of geography

Not all geographies are the same – many selections are intimately linked to geography

Feedstock selection – each geography tends to have one or more prevailing biomass feedstock –

other biomass may not be readily available

Product preference – demand can play a significant role – for example, in Asia diesel demand is

generally higher than for gasoline, especially in remote locations

Infrastructure/logistics – access to the electric grid or access to major aggregation points can affect

business model, especially for electricity and chemicals; shipping biomass pellets is another

logistics- based issue

Concentrated siting model versus distributed siting model (e.g., hub and spoke)/effect of scale

2.2.3.1 Regional Coverage

This report is proposed to include the following locations:

North America

United States

South America

Brazil

Contiguous Andean/Amazonian Countries

Europe

Continental Western Europe

Africa

Sub-Saharan Africa

Asia Pacific

China

Indonesia

India

Northern Australia

Thailand

Malaysia

2.3 DELIVERABLES

The selection of feedstock/process/output needs to maximize the risk-adjusted return on equity. If the

technology is relatively mature and easily financeable then such a project should be able to be funded partly

or wholly with debt. This can dramatically reduce the payback period for the equity invested into the project.

The deliverables will include a discussion of the different options, as well as graphical results.

Graphical results may look like the following; shown in Figure 2.1 (this graphic is for illustrative purposes

only):


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Figure 2.1 Example of Graphical Outputs (For Illustrative purposes only)

CA

PE

X

Return

Highest Financial RiskLowest Return

Lowest Financial RiskLowest Return

Lowest Financial RiskHighest Return

Highest Financial RiskHighest Return

2

1

4

3

5

7

9

8

6


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Section 3 Proposed Table of Contents

Section

1 Executive Summary

2 Introduction

3 Technologies

3.1 INTRODUCTION

3.2 LAND UPGRADING

3.2.1 Technology Overview

3.2.2 Input Costs

3.2.3 Output Prices

3.2.4 Risks

3.2.5 Externalities

3.3 ON-PURPOSE BIOMASS GENERATION


3.3.2 Input Costs

3.3.3 Output Prices

3.3.4 Risks

3.3.5 Externalities

3.4 BYPRODUCT BIOMASS GENERATION


3.4.2 Input Costs

3.4.3 Output Prices

3.4.4 Risks

3.4.5 Externalities

3.5 ELECTRICITY GENERATION


3.5.2 Input Costs

3.5.3 Output Prices

3.5.4 Risks

3.5.5 Externalities

3.6 PELLETIZATION


3.6.2 Input Costs

3.6.3 Output Prices

3.6.4 Risks


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3.6.5 Externalities

3.7 CELLULOSIC SUGARS


3.7.2 Input Costs

3.7.3 Output Prices

3.7.4 Risks

3.7.5 Externalities

3.8 BIOMASS TO ETHANOL


3.8.2 Input Costs

3.8.3 Output Prices

3.8.4 Risks

3.8.5 Externalities

3.9 BIOMASS TO HYDROCARBONS


3.9.2 Input Costs

3.9.3 Output Prices

3.9.4 Risks

3.9.5 Externalities

3.10 BIOMASS TO OTHER CHEMICALS


3.10.2 Input Costs

3.10.3 Output Prices

3.10.4 Risks

3.10.5 Externalities

3.11 BIOMASS TO OTHER SOLID PRODUCTS


3.11.2 Input Costs

3.11.3 Output Prices

3.11.4 Risks

3.11.5 Externalities

4 Feedstock Selection

4.1 OVERVIEW

4.2 REGIONAL CONSIDERATIONS

4.2.1 North America

4.2.2 South America

4.2.3 Europe


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4.2.4 Africa

4.2.5 Asia Pacific

4.3 TECHNOLOGY CONSIDERATIONS

4.3.1 Electricity Generation

4.3.2 Pelletization

4.3.3 Cellulosic Sugars

4.3.4 Biomass to Ethanol

4.3.5 Biomass to Hydrocarbons

4.3.6 Biomass to Other Chemicals

4.3.7 Biomass to Other Solid Products

5 Effects of Geography

5.1 NORTH AMERICA

5.1.1 United States

5.2 SOUTH AMERICA

5.2.1 Brazil

5.2.2 Contiguous Andean/Amazonian Countries

5.3 EUROPE

5.3.1 Continental Western Europe

5.4 AFRICA

5.4.1 Sub-Saharan Africa

5.5 ASIA PACIFIC

5.5.1 China

5.5.2 Indonesia

5.5.3 India

5.5.4 Northern Australia

5.5.5 Thailand

5.5.6 Malaysia

6 Economic Analysis and Model Outputs

6.1 OVERVIEW

6.2 OVERALL OUTPUTS—GLOBAL COMPARISON

6.3 OUTPUTS BY GEOGRAPHY

6.3.1 Region Level

6.3.2 Country-Specific

6.4 OUTPUTS BY TECHNOLOGY

6.3.1 Land Upgrading

6.4.2 On-Purpose Biomass Generation

6.4.3 Byproduct Biomass Generation


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6.4.4 Electricity Generation

6.4.5 Pelletization

6.4.6 Cellulosic Sugars

6.4.7 Biomass to Ethanol

6.4.8 Biomass to Hydrocarbons

6.4.9 Biomass to Other Chemicals

6.4.10 Biomass to Other Solid Products

6.5 CONCLUSIONS


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Section 4 Methodology

Using information developed in-house along with resources available from government agencies, trade

associations, technology vendors, academic researchers, NGOs, and the like, Nexant will construct capex

and cost of production (COP) models for salient options, and utilize these internally for the analysis. Nexant

will analyze these models for sensitivity to key parameters and assumptions, including capex, pricing, yields,

and financing costs. Nexant will provide outputs as shown in the deliverables, and draw conclusions based

upon this analysis. Nexant will also identify and quantify the amount of technological and market risks

associated with each option.

Nexant will draw upon its extensive experience in the Bio-Renewables sector, patents, publicly available

resources, industry contacts, and process modeling to produce technoeconomic descriptions of relevant

downstream and upstream technologies, and the restrictions of downstream technologies to certain

feedstock types. As required, Nexant will interview experts and stakeholders in land development, farming

and plantations, forestry, and the various industrial options to be analyzed to obtain their real-world

viewpoints.


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Section 5 Nexant's Experience

5.1 GENERAL

Nexant uses multidisciplinary project teams drawn from the ranks of our international staff of engineers,

chemists, economists and financial professionals, and from other Nexant groups to respond to the

requirements of each assignment. Most of the consulting staff possesses credentials in both scientific and

commercial disciplines plus substantial industrial experience. The collective talents of our staff are

strategically located and closely linked throughout the world, resulting in valuable insights gained through a

variety of perspectives.

Nexant is an international consultancy and is dedicated to assisting businesses within the global energy,

chemical, plastics, and process industries by providing incisive, objective, results-oriented management

consulting. Over four decades of significant activity translates into an effective base of knowledge and

resources for addressing the complex dynamics of specialized marketplaces. By assisting companies in

developing and reviewing their business strategies, in planning and implementing new projects and

products, diversification and divestiture endeavors and other management initiatives, Nexant helps clients

increase the value of their businesses. Additionally, we advise financial firms, vendors, utilities, government

agencies, and others interested in issues and trends affecting industry segments and individual companies.

The Nexant Group was formed as an independent global consulting company in 2000, combining a number

of companies that had a long history of providing consultancy services to the chemical and refining-related

industries. Nexant’s experience covers all aspects of project development relating to major refinery,

petrochemical, and polymer investments, ranging from grassroots plants to revamps of existing process

units. Nexant’s key offices serving the petrochemical and downstream oil sectors are located in New York,

Houston, London, Bangkok, and Bahrain, and locations for other offices are shown in Figure 5.1.

Figure 5.1 Nexant Office Locations

Headquarters Main Offices

Representative Offices

San FranciscoWashington, DC

White Plains

LondonFrankfurt

Bahrain

TokyoSeoul

Shanghai

Singapore

Kuala LumpurBangkok

Buenos Aires

La PazRio de Janeiro

Project Offices

New Delhi

Pretoria

Abuja


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From major multinationals to locally based firms and governmental entities, our clients look to us for expert

judgment in solving compelling business and technical problems and in making critical decisions.

Nexant’s clients include most of the world’s leading oil and chemical companies, financial institutions, and

many national and regional governments. Nexant, Inc. is active in most of the industrialized countries of the

world, as well as in most of the developing areas including the Middle East, Africa, and East and Southeast

Asia.

Major annual subscription programs are:

Process Evaluation/Research Planning (PERP)

Petroleum & Petrochemical Economics (PPE)

Polyolefin Planning Service (POPS)

The PERP program covers technology, commercial trends, and economics applicable to the chemical

industry. The program has more than 40 subscribers, including most of the major international chemical

companies. Many of the processes to be analyzed in this multi-client study have been assessed in the

PERP program.

The PPE program provides historic and forecast analysis of the profitability, competitive position, and

supply/demand trends of the global petroleum and petrochemical industry. The program includes capacity

listings and analysis, global supply, demand and trade balances, profitability, competitiveness, and price

analysis and projections for all the major petrochemical value chains. The PPE program is supported by an

internet-based planning and forecasting tool that provides online access to the database behind the reports

of the PPE program.

The POPS program provides reports on the global polyethylene and polypropylene industry. It is

recognized globally as the benchmark source for detailed information and analysis on current commercial,

technical, and economic developments in the polyolefins industry. Coverage includes: capacity listing and

analysis, detailed consumption, supply/demand, trade, operating rates, price forecasts, technological

developments, new products, inter-material substitution, and regional competitiveness.


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5.2 ASSIGNMENTS UNDERTAKEN WHICH COVER BIOFEEDSTOCKS, BIOCHEMICALS, BIOFUELS, AND/OR BIOREFINING SCHEMES

5.2.1 Single Client Studies

5.2.1.1 Techno-Economic Due Diligences

Nexant has performed a number of techno-economic due diligences examining all aspects of a biorefinery;

including intensive reviews of bio-based feedstocks, upstream processing technologies (such as cellulosic

sugar processing and gasification), downstream processing technologies (including syngas utilization and

fermentation), and integrated technology offerings (such as chemical conversion).

Biofeedstocks

Biochemical Opportunities in the United Kingdom - The National Non Foods Crops Centre (NNFCC)

engaged Nexant to provide a focused analysis of renewable chemical opportunities in the United Kingdom.

The project was in part undertaken to gain a better understanding of the opportunities for the United

Kingdom to integrate renewable feedstocks into its chemical manufacturing base. Nexant’s analysis was

used to support the development of research and development programs in both academia and industry

organizations.

Biopolymer Value Chain – Investigate renewable feedstocks for biopolymers, biopolymer compounding

and polylactide.

Feedstock Supply Plan Due Diligence – Nexant was brought on by a potential investor to evaluate and

examine the feedstock procurement strategy for a proposed cellulosic ethanol facility, including an

evaluation of proposed feedstock yields and relative locational availabilities.

Alternative Feedstock Evaluation – Nexant was tasked with providing an understanding of the economic,

logistic, and geographic issues entailed by using alternative bio-based feedstocks, including raw biomass,

biomass-derived C5/C6 sugar streams, and biomass-derived syngas.

Upstream Processing Technologies

Biomass Gasification Technical Due Diligence – Technical due diligence on a novel gasification process

to produce renewable fuels from municipal solid waste-derived syngas in the United States.

Production of Cellulosic Sugars Technical Due Diligence – For a U.S. venture capital firm, Nexant

performed a technical due diligence on a European process platform and demonstration project to produce

cellulosic sugars for fermentation to ethanol or other products, with a view towards deployment in the United

States and elsewhere.

Technical Due Diligence for Cellulosic Sugars Processing Technology – For regional banks, with a

USDA loan guarantee, a technical due diligence was done on a project utilizing a European process to

produce cellulosic sugars from a seasonally varying set of biomass feedstocks for fermentation to ethanol in

a commercial integrated biorefinery at a U.S. site.

Saccharification of Cellulosic Biomass Technical and Market Due Diligence – For a U.S. banking

syndicate and with a U.S. federal loan guarantee, Nexant performed a technical and market due diligence

on the applicability of a U.S. company’s enzymatic system for saccharification of cellulosic biomass in a

specific cellulosic ethanol facility and in other processes.

Plasma Gasification Techno-Economic and Market Due Diligence – For a leading multinational airline,

Nexant performed a techno-economic and market due diligence on a U.S. plasma gasification technology

and first of a kind gasification complex in Europe to produce bio-jet fuel and other hydrocarbon fuels by

gasification of municipal solid waste.


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Downstream Processing Technologies

Sugar-fed Yeast Fermentation Technical and Market Due Diligence – Nexant performed a technical and

market due diligence on a U.S. sugar-fed yeast fermentation process producing isoprenoid hydrocarbons;

assessed process platform, demonstration and commercial plant designs for Brazil.

Heterotrophic Algae Fermentation Technical and Market Due Diligence – Nexant performed a technical

and market due diligence on a U.S. sugar-fed heterotrophic algae fermentation process and first of a kind

project to produce tailored oils with a wide range of applications from chemicals, to food, to personal care.

Cellulosic Ethanol Fermentation Technical Due Diligence – The report discusses the technical due

diligence on a novel cellulosic ethanol fermentation process in the United States.

Cellulosic Butanol Fermentation Technical Due Diligence in China – The report discusses the technical

due diligence on a novel Chinese cellulosic fermentation butanol process.

In-silico Fermentation Technical Due Diligence – The report discusses the Technical and market due

diligence on a U.S. in-silico fermentation platform and renewable chemicals project.

Advanced Biobutanol Process Technology, Economic, and Market Due Diligence - For a prospective

investor in this technology development, Nexant performed a broad-based feasibility study/due diligence

with the full cooperation of the developer providing R&D data and existing business models for critique.

Butanol was examined for its proposed fuel potential as well as for its large existing market as a solvent and

chemical feedstock. The economics of the incumbent petrochemical route was compared.

Yeast Fermentation Technical and Market Due Diligence – For a Brazilian investor/prospective partner,

Nexant performed a technical and market due diligence on a U.S. sugar-fed yeast fermentation process

producing isoprenoid hydrocarbons, with evaluation of process platform status, demonstration assessment,

and assessment of potential to feed cellulosic sugars in Brazil.

Succinic acid Fermentation Market Due Diligence – For a foreign investor, Nexant performed a market

due diligence on a novel succinic acid fermentation process and the first commercial plant design in a

biorefinery in the United States.

N-butanol Technical and Market Due Diligence – For a CleanTech/biotech-focused venture capital firm,

Nexant performed a technical and market due diligence on an improved version of the classic ABE

clostridium-based n-butanol fermentation and its first commercial design.

Syngas to Chemicals and Fuels Techno-Economic Due Diligence – For a major Asia-based diversified

chemical giant, Nexant performed a techno-economic due diligence on a novel U.S.-New Zealand

technology, with an assessment of pilot plant scale-up, and competitive issues for their process platform that

utilizes a bacterial fermentation to convert CO and CO2 in stack gases and waste-derived syngas to produce

a range of fuels and chemicals.

Fermentation Routes to Bio-Succinic Acid/BDO – In a series of studies for a number of different

stakeholders, Nexant evaluated technologies, markets, and competition for fermentation routes being

developed for this potential raw material for polybutylsuccinate, 1,4-butanediol, and other chemicals

derivatives, and compared to petrochemical routes.

PLA – For this key renewable, biodegradable commodity polymer, polylactic acid, or polylactide (PLA)

made from corn or sugar substrates, Nexant evaluated production technologies and markets for a number

of different stakeholders.

Hydrocarbon Fuels and Chemicals via Sugar Fermentation: Process Development Assistance – For

a biotech developer of sugar fermentation routes to C5 hydrocarbon-based (isoprene homologues) for

vehicle fuels, chemical intermediates and specialty chemicals, this was a series of three projects to provide


15



assistance, including process flow sheet and capital expenditure review, troubleshooting, and cost reduction

strategies, product recovery studies, and process safety analyses.

Integrated Technologies

Biomass to Chemicals Techno-Economic Due Diligence – Nexant conducted a techno-economic due

diligence on a novel technology seeking to catalytically convert biomass feedstocks into fungible chemical

intermediates, and downstream integration to drop-in replacement derivatives such as polyolefins.

Catalytic Metathesis Technical and Market Due Diligence – Technical and market due diligence on a

U.S. process platform and project to employ proprietary catalytic metathesis to convert fatty acids or

alcohols to more functional, higher-value products for global.

Biodiesel Transesterification Techno-Economic and Market Due Diligence – For a consortium of U.S.

and multinational banks, Nexant conducted a techno-economic and market due diligence on a unique

biodiesel (FAME) transesterification process, as well as supply logistics for waste fats, oils, and greases,

business model, and project deployments at various U.S. sites.

para-Xylene Technical Due Diligence – Nexant performed two rounds of technical due diligence, first with

a bench-scale demo, and a second with a running pilot plant, on a novel multi-step thermochemical process

to convert with high yield and selectivity waste cardboard and other cellulosic post-consumer wastes to

para-xylene.

Nano-catalyst Technical and Market Due Diligence – Financed by the prospective investor, Nexant

conducted a technical and market due diligence and assisted in developing process concepts and business

models for monetizing a unique bio-based platform for multi-functional nano-catalyst design and production,

and towards obtaining seed financing from this high-profile venture capital firm and its syndicate.

5.2.1.2 Biorefining Technology and Product Screenings and Evaluations

Nexant has been contracted by a number of developers to evaluate and examine potential biotechnologies

and process configurations.

Product and Technology Screening – Nexant performed a broad and comprehensive screening of

developing and commercially available biotechnologies and evaluated their relative desirability’s along a

matrix assessing commercialization status, product market size, developer’s business model, and cost of

production economics.

Cellulosic Sugar Processing Technology Screening – Nexant was hired to assess the status of global

second-generation sugars technology developers in order to determine the value of potential partnerships.

This entailed defining a master list of technology developers who have passed the pilot stage and narrowing

to a short list of 7 for deeper examination. The examination included technology scoring, evaluation of

industrialization plans, SWOT analysis, and cost of production estimation.

“Forest Refinery” Industry Evaluation - A U.S. national laboratory retained Nexant to assess the

technical and economic feasibility of a forest refinery designed to manufacture chemical products from trees.

The analysis screened a variety of biomass conversion technologies and compared the production costs

and energy consumption levels of each route to conventional routes. Processes evaluated included

fermentation, lignocellulose separation, lignin conversion and gasification.

Hunest Biorefinery Market Study - A project to revitalize a former Nitrokemia site in Hungary to convert

circa 200,000 tons per year of biomass into biopolymers, green solvents, and intermediates. Nexant was

engaged to undertake a market study of the commercial opportunities for the project covering mainly pricing

and the European market in order to guide the company in developing its marketing strategy for the project


16



Biopolymers for Beverage and Food Packaging – For a U.S.-based, leading, multinational beverage and

food company, Nexant performed a study of the technical and economic feasibility of using, and issues

around, selected bio-based polymers for packaging in the future, including PLAs, PHAs, green polyethylene,

and others. For this, evaluated and compared three radically different emerging routes to green para-xylene

production for feeding production of green PTA to react with green MEG to make 100 percent green PET

bottle (and fiber) resin.

Chemicals from Corn - This was a broad-based study for the National Corn Growers Association (NCGA),

funded by the U.S. DOE, to identify and screen chemicals that could be feasibly produced from corn. The

study considered a wide range of potential sugars, and fermentation-derived acids, alcohols, and other

building blocks, but emphasized fuel ethanol derivatives, including basic petrochemicals, solvents,

intermediates and specialties, and application of the Reactive Distillation technology sponsored by the

NCGA. The basic economics of ethanol production and potential improvements, economies of scale,

logistics, and other production and value chain issues, are addressed in the study.

Fermentation Propanol to Green Propylene – This report identifies discusses four routes to producing

propylene from renewable feedstock (corn, sugarcane, and glycerine). Bio-propylene, bio-based chemicals,

biological route, biotechnology, genetically modified organism (GMO), bacteria are included in the study.

Financial Due Diligence - The report discusses the analysis of a renewable route to succinic acid and

potentially to adipic acid and other valuable green chemical intermediates. In addition, the report examines

technology, intellectual property position, market potential, and competitor positioning.

Product Screening – Nexant was retained by one of the largest ethanol producers in the United States to

develop near term (1 to 3 years) and long term (3 to 10 years) bio-based product strategies. Nexant

evaluated 123 chemicals to identify those with the most attractive markets and laid out a strategy to focus

investment and R&D on commercializing them.

Potential Byproduct Production Strategy – Nexant was hired by a pulp and paper company to screen

and identify bioenergy/biochemical technologies that could enable pulp manufacturer to produce bio-derived

products at competitive production cost.

Biotechnology Screening – Nexant was hired by an Asian Research company to provide analysis of

current and developing bio-refinery technologies, feedstocks and co-products. The study includes the

technical and commercial status of the current leading biofuels such as corn ethanol in the United States,

sugarcane ethanol in Brazil, and fatty acid methyl ester (FAME) biodiesel. It also includes emerging “next

generation” biorefinery technologies and types.

5.2.2 Biorenewable Insights

Nexant has recently introduced the Biorenewable Insights program, a subscription-based multiclient service

that provides regular coverage of the biofeedstocks, biofuels, and biochemical sectors. This service

consolidates Nexant’s special report coverage of the biofuels and biochemical sector into a regular series of

reports covering all aspects of technology, economics, and new venture capacity worldwide. In addition to

major reports updated on a three-year cycle, these report series also feature quarterly updates of

economics and new ventures.

Topic coverage of Biorenewable Insights is shown according to value chain and expected date of

completion of the primary report in Table 5.1.


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Table 5.1 Biorenewable Insights Topic Coverage

C1-C2 C3 C4, Aromatics & Other

Fuels and Refining Intermediates

Bio-Feedstocks

2014

/201

5 Biomass Gasification Bio-Based Acrylic Acid

BTX and PX Next Generation

Bioethanol Cellulosic Feedstocks

Ethylene and Derivatives Propylene Glycol Butadiene Biodiesel Cellulosic Sugars

Methanol/DME n-Butanol Butanediol (BDO) Jet Fuel Carbohydrate Feedstocks

2015

/201

6 Alpha Olefins and LAOs Isobutanol Succinic Acid Naphtha Natural Oil Feedstocks

Lactic Acid/PLA Propylene Adipic Acid Isooctene/Isooctane Biomass Pretreatment

Biogas and LFG PDO and PTT Isoprene and Isoprenoids

Gasoline and Reformate

MSW

2016

/201

7 Hydrogen Polypropylene Isobutylene Bio-Lubes Algae Technologies

Syngas Fermentation Epichlorohydrin PEF to Replace PET Bio-Crudes Lignin

Ammonia SAPs Caprolactam Pyrolysis Oil Sources for Natural Rubbers

5.2.3 Other Multiclient Programs and Special Reports

During the past five years, Nexant has completed many major multi-subscriber studies in biofeedstocks,

biochemicals, and biofuels. Selected multiclient reports in this area include:

PERP Report S2013-S11 Biomass Gasification – This report presents a comprehensive review

of commercial and emerging biomass gasification technologies and applications to power, fuels,

and chemicals production. Process descriptions are included, as well as regional economics of

various feedstock types including North America, South America, Western Europe, and Asia.

PERP Report S2013-S4 Bio-Jet Fuel - This report provides a comprehensive overview of

technology options for biojet fuel production. It includes process descriptions and economics for the

main routes for the best in class technology developers, as well as a discussion of market potential

for North America, South America, Western Europe, and Asia.

PERP Report S2013-S9 Bio-Butadiene – This report takes a modular approach to the plethora of

potential bio-butadiene routes, which include multiple bio-based and conventional catalytic steps.

Technology descriptions are presented, markets are discussed and economics developed for North

America, South America, Western Europe and Asia for the most promising routes.

PERP Report 2012-S2 Bioisoprene/Isoprene – Routes to isoprene via C5 streams, as well as on-

purpose and emerging biotransformation routes are discussed in detail. Process economics for

seven technologies (including emerging bioroutes) have been developed (China, N.W. Europe, and

U.S. bases). Regional market supply/demand is included.

PERP Report 2013-S1 Project Development and Financing: Keys to Success – This report

covers the key steps to a successful project implementation, from screening and feasibility studies,

front end engineering design (FEED) and securing financing, through engineering, procurement,

construction (EPC) and plant commissioning.

PERP Report 2011-S10 Biosuccinic Acid – Emerging biosuccinic acid process technologies have

been analyzed and evaluated including cost of production estimates. Global succinic acid

supply/demand is included.

Biorenewable Financing Under the Microscope – A study that analyzes developments in bio-

based investment and financing. The study assesses the investments by region, technology type,

and status of development for the various bio-based products being developed or in production in

late 2014.


18



Municipal Solid Waste: Using Our Refuse – A study that characterizes the sources and current

dispositions of MSW and trends, reviews policy and economic trends that are affecting the

composition of the waste stream globally, and explores waste management strategies that will

reduce the dependence on traditional landfilling and incineration. The report describes and

characterizes the technologies and economics of recovering various material and energy resources

from mixed MSW stream. It also looks at utilizing MSW fractions (such as food waste, paper, and

plastic) for producing energy, biofuels, renewable chemicals, in a variety of key ways.

Bio-Naphtha: Missing Link to the Green Chemicals Value Chain – A study that analyzes the

overall techno-economic feasibility of commercial bio-naphtha production and steam cracking. The

study includes various biofeedstocks and potential location scenarios in technological and

production economic analyses of the leading process technologies in bio-naphtha.

Biobutanol and Downstream Markets: Will You Be Buying Bio? – A report that analyzes the

production of butanol from renewable sources and associated downstream markets. The technical,

commercial and economic aspects of producing biobutanol by different process technologies are

compared and discussed. The various alternatives to convert biobutanols into chemicals and

polymer products, as well as supplying the large existing markets, are also examined.

Next Generation Biofeedstocks: Resources for Renewables – A report that analyzes

biofeedstocks as a source of renewable downstream products. The study assesses the technical,

commercial and economic aspects of producing biofeedstocks as well as providing supply

estimates.

Cellulosic Sugars: Unlocking Biomass’ Potential – A study of the emerging biotechnology,

processing technologies and economics of producing and recovering commodity sugars and/or

direct products (e.g., ethanol) from cellulosic biomass as well as a comparison to conventional

routes

Is Bio-Butanediol Here to Stay? – A report that analyzes developing technologies for the

production of butanediol via renewable feedstocks, investigating renewable feedstocks and

conventional sources and provides an economic comparison of renewable and conventional routes

to butanediol.

Bio-Based Chemicals: Going Commercial – A survey of the emerging biotechnology, processing

technologies, announced project capacities, and a risk adjustment of these announced capacities.

This included coverage of commodity monomers and polymers, as well as emerging polymers (e.g.,

succinic acid and/or 1,4-butanediol for polybutylene succinate).

Bio-Acrylic Acid and Derivatives – A study of the emerging biotechnology, processing

technologies and economics of producing and recovering bio-acrylic acid as well as a comparison

to conventional routes.

Liquid Biofuels: Substituting for Petroleum – A study of the technical, commercial and strategic

outlook for the production of liquid biofuels that can substitute for conventional petroleum-derived

gasoline and diesel fuels that seeks to answer questions about feedstock availability, technological

developments for primary biofuels as well as competitiveness with conventional petroleum fuels.

Plants to Plastics – A study of the emerging biotechnology, processing technologies and

economics of producing and recovering commodity polymers such as polyethylene, polypropylene,

polyethylene terephthalate, and others as well as a comparison to conventional routes.


19


Section 6 Contact Details

AMERICAS

Nexant, Inc.

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White Plains, NY 10601-4425

U.S.A.

Attn: Ron Cascone

Principal

Tel: + 1-914-609-0316

Fax: + 1-914-609-0399

e-mail: [email protected]

EUROPE

Nexant Limited

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London EC2R 7AF

United Kingdom

Attn: Anna Ibbotson

Principal

[email protected]

Or

Attn: Heidi Junker Coleman

Global Programs Support Manager

Tel: + 1-914-609-0381

Fax: + 1-914-609-0399

e-mail: [email protected]

ASIA

Nexant (Asia) Ltd

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555 Phahonyothin Road

Kwaeng Chatuchak, Khet Chatuchak

Bangkok 10900

Thailand

Attn: Tiankanok Sirichayaporn

Senior Consultant

[email protected]

mailto:[email protected]





20


Section 6 Contact Details

Nexant, Inc.

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New York

Houston

Washington

London

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Bahrain

Singapore

Bangkok

Shanghai

Kuala Lumpur

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