Novamont, its integrated biorefinery model and the development of a system-based

economy Federica Mastroianni, Novamont S.p.A.

“Europe for sustainable plastics”

Launch Conference of the PLASTiCE Project

Bologna, 25th October 2011

About Novamont

Living Chemistry for Quality of Life

Novamont is a world leading manufacturer of certified biodegradable

and compostable resins based on renewable resources.

Since the outset Novamont has made significant contributions to creating a new industrial policy capable of combining the

requirements of development and sustainability and has created a system

integrating chemistry, agriculture, industry and the environment for

“sustainable development” with low environmental impact.

Competitiveness of “green economy” means availability of technological market solutions able to answer to global environmental needs taking in mind that the age of the cheap sources and of the environmental ignorance is over.

The priorities

The priorities:

Climatic Changes: efficient management of the global carbon cycle (low carbon technologies)

Global Crisis of Water: efficient management of the global water cycle (i.e. sustainable production and consumption)

Limited availability of raw materials at global level: efficient management of resources (i.e. sustainable production and consumption)

All these areas imply a “double dividend”: economical and environmental benefits

Our mission

Novamont’s mission is to find solutions to the pressing environmental problems by developing products from renewable raw materials of agricultural origin, which minimize production of post-consumption waste, and processes entailing low environmental impact.

Novamont encourages the transition from a product-based economy to a system-based economy.

Where we are

TERNI (UMBRIA)

Mater-Bi® PRODUCTION

NOVARA (PIEMONTE)

HEADQUARTERS AND RESEARCH CENTRE

PORTO TORRES (SARDEGNA) THE “GREEN POLE”

Novamont’s industrial profile

215 employees (Headquarters + research center + production site)

Pioneer and market leader in the sector of

biodegradable materials from renewable resources

Productive capacity: Compounding: 75.000 ton/y

Polyesters: 35.000 ton/y

Tailor-made materials for a wide range of industrial applications: separated

collection of the organic of municipal solid waste and composting, agriculture, packaging, catering, etc.

More than 120 articles and presentations at international

conferences, about 1.000 patents

Awarded by EPO and European Commission as

“Inventor of the year 2007” for the 1992-2001 patents on bioplastics and the industrial

achievements

Research&Development as the driving force (>6% of turnover,

25% of the employees)

STANDARDS

ALLIANCES/ DYNAMIC PARTNERSHIPS

ENVIRONMENTAL IMPACT ANALYSIS

STRATEGIC R&D PROJECTS

Novamont’s idea of innovation

Horizontal Services to the Biorefinery

CASE STUDIES

CONTINUOUS TRAINING

IP PROTECTION

DIVULGATIVE ACTIVITY

INNOVATION

Ongoing RDI Projects

Training programmes in the key areas of the company business for the most important stakeholders (staff, young and expert researchers, customers, universities, associations, civil servants) with the aim of sharing values, knowledge, technical skills that anticipate future needs. This commitment manifests itself through a series of collaborations which foster the integration of training courses with the skills, know-how and values of Novamont.

TRAINING PROGRAMMES FOR EARLY STAGE

RESEARCHERS AND PhD STUDENTS

MASTER OF SCIENCES IN “BIOTECHNOLOGIES FOR

BIOPLASTICS”

CUSTOMERS/ EMPLOYEES OF THE PUBLIC SECTOR

RESEARCH CENTRES

UNIVERSITIES AND ACADEMIC PARTNERS

NATIONAL INSTITUTIONS (MINISTRIES)

REGIONAL AND LOCAL INSTITUTIONS

EUROPEAN COMMISSION (MARIE CURIE FELLOWSHIPS)

BANKING FOUNDATIONS

Novamont as a training center (i)

More than 160 learning programmes attended in Novamont since 2000:

Researchers form Italy, EU, all over the world

In collaboration with partners from the public and the private sector

HIGH SCHOOL AND UNIVERSITY INTERNSHIP

PROGRAMMES

Novamont as a training center (ii)

Performance

ACQUISITION BY INTESA-SANPAOLO

BANK

R&D CENTER OF MONTEDISON GROUP ON RRM SINCE 1989

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

BREAK-EVEN

200 MIO € (ESTIMATED)

88 MIO €

Growth trend - Turnover

0

20

40

60

80

100

120

140

160

180

200

220

240

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0

20

40

60

80

100

120

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Growth trend – Human Resources

HR - TOTAL NUMBER

HR - PRODUCTION PLANT

AMERICA

ASIA

OCEANIA

EUROPE

USA

ARGENTINA

CHILE

SWEDEN DENMARK ROMANIA UK

POLAND

GREECE

BENELUX IRELAND

ESTONIA

LITHUANIA

LATVIA FINLAND NORWAY

JAPAN

TAIWAN

SOUTH KOREA

AUSTRALIA

ISRAEL

THAILAND

INDIA

GERMANY

FRANCE

Commercial network - Geographic reach

Strategic focus

Our roots

MONTECATINI

CHEMICAL TECHNOLOGIES

INTEGRATION OF CHEMISTRY, AGRICULTURE AND ENVIRONMENT

R&D PROJECTS FOCUSED ON MATERIALS, COBUILDERS FOR

DETERGENCY, BIOFUELS, PAPER ADDITIVES, CHEMICALS FROM

HYDROCRACKING

FERTEC

FERRUZZI RESEARCH

AND TECHNOLOGIES

ERIDANIA-BEGHIN SAY

AGRICULTURAL RAW MATERIALS

A “LIVING CHEMISTRY FOR QUALITY OF LIFE”

RENEWABLE RAW MATERIALS

APPLICATIONS ECONOMICALLY AND ENVIRONMENTALLY

SUSTAINABLE

TECHNOLOGIES AT LOW ENVIRONMENTAL

IMPACT

CONTRIBUTION TO THE SOLUTION OF

ENVIRONMENTAL, TECHNICAL,

ECONOMICAL ISSUES OF DIFFERENT APPLICATIONS

Novamont’s systemic approach to bioplastics

Standard polymers with monomers from renewable origin

Polymers from renewable origin with performances different from standard polymers (biodegradability in different environments, compostability, permeability, reactivity, rheological properties etc.)

Bio-based plastics

Mater-Bi® comes in granular form and can be processed using the most common transformation techniques to make products whose characteristics are similar, or even better than those of traditional plastics, but which are perfectly biodegradable and compostable. After use, products made of Mater-Bi® biodegrade in a single composting cycle.

Bioplastics and products from renewable resources are not necessarily at low environmental impact (methods of cultivation, processes, performances for specific applications, density, etc.)

Evaluation of the environmental impact of specific products or applications with a systemic “cradle to grave” approach

Environmental impact of bioplastics

Life Cycle Analysis (LCA) not as a communication tool, but as a technical instrument to improve the environmental profile of bioplastics

When it is important?

Recycling is unpractical or not

economical

Biodegradability as a functional property

Real risk of dispersion in the environment

Plastics as a pollutant of food and yard waste

Biodegradability of plastics

Compostability of plastics (i)

The European Standard EU 13432 and the standard UNI EN 14995 define the characteristics that a material must possess in order to be considered recyclable through organic recovery (“compostable”).

Compostability implies a set of requirements: (i) biodegradability, (ii) disintegrability, (iii) absence of negative effects on the composting process, (iv) absence of heavy metals.

Both standards are the most important technical references for manufacturers of materials, public authorities, composters, certifying bodies and consumers.

Compostability of plastics (ii)

Compliance with standards can be verified through a certification process.

Certificate of Conformity is awarded to the manufacturer by ad hoc certifying bodies, permitting the use of specific logos.

The logos guarantee that a material has undergone a strict certification procedure and foster market transparency.

Bioplastics can become a powerful demonstrative case of relevant dimension for sustainable development and cultural growth, contributing to:

redesign entire application sectors;

affect the way raw materials are produced through integration of entire agro-industrial chains;

modify products use and disposal;

extend the experimental activity of research labs to local areas;

define reliable standards.

The potential of bioplastics

Mater-Bi®: industrial applications

The biorefinery integrated in the local area

SYST

EM’S

BA

SED

EC

ON

OM

Y

Novamont’s biorefinery (i)

Increased competitiveness thanks to continuous integration of technologies and products in a system’s logic; continuous improvement of the environmental profile of products and applications;

material/product/application performance; recyclability, biodegradability/compostability; use of local resources, rural development, new integrated chains, security of resources; partnership and cultural

growth.

Polymers; chemicals; self produced energy

Via physical, chemical, biological processes

Oils, cakes, cellulose, starch, etc.

Specialised oilseed crops, lignocellulosic waste

Novamont’s biorefinery (ii)

The advantages of an integrated biorefinery for biobased products:

added-value products taking advantage from the local biodiversity;

non competition with food;

knowledge-based economy with multiple approach to bio-energy/biofuels.

From a product-based economy to a system-based economy

The “Green Pole” Project (i)

The “Green Pole” Project in Porto Torres

and

have recently given life to the world’s biggest “green chemistry” Project:

450 MIO € of investments;

starting from Novamont’s technologies, a series of plants will be built in Porto Torres (Sardinia);

the Pole will also host an R&D center on bio-based products;

down-stream integration of the chain: an opportunity for the conversion industry in Sardinia;

up-stream integration will push a new development of agriculture in Sardinia.

The “Green Pole” Project (iii)

General considerations

The new Project “Green Pole Porto Torres” is a gamble with the future for the whole Country

Catching up the opportunity of a relevant projects of green chemistry in Italy will mean to take advantage from knowledge, structures and infrastructures present in the Country (technological know-how, employment, competitiveness of the industrial system, environmental quality, etc.)

Meeting the challenge

Re-industrialisation of chemical sites in Europe.

Qualified employment in a knowledge-based environment.

Case studies of economical and environmental sustainability able to redesign enterprises and promote partnerships restarting from local areas.

Biorefineries: which opportunities?

Biorefineries for bio-plastics and chemicals represent a sound opportunity for:

Continuous integration of knowledge applied to the biorefinery: fast industrial integration with faster and faster return on R&D investments.

Contribution to the definition of standards through practical demonstrative tests.

Partnerships at local and international level: a driving force to push new models of integration and cooperation.

Training of people with system vision and high tech knowledge.

Novamont’s future goals

A continuous implementation of technologies, skills and partnerships in the effort to transform a dissipative model of economy in a conservative and competitive one.

Thank you for your attention!

Federica Mastroianni

Pianificazione Strategica – Novamont S.p.A.

Tel. +39 0321/699.737

federica.mastroianni@novamont.com

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