production, profit and bio-based products jim imbler, president & ceo advanced biofuels...
TRANSCRIPT
Production, Profit and Bio-Based Products
Jim Imbler, President & CEOAdvanced Biofuels Leadership Conference
April 21, 2011
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ZeaChem: Who We Are
●Produce advanced biofuels and bio-based chemicals
● Advantages: Feedstock agnostic Dedicated / Sustainable energy crops Novel integration of known processes
and natural organism 40% yield advantage Diverse product portfolio addresses
multiple $billion opportunities
●Compete with lowest cost alternative Must be economical vs. oil to
succeed
Biorefiner with Demonstrated Success
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Opportunity for Bio-based Chemicals
• Smaller market size but greater product diversity
• Higher value on per gallon equivalent basis
• Wider range of strategic partners
• More vulnerable to fossil fuel feedstock price volatility
• Infrastructure ready/drop into existing markets – not creating anything new
Myth: Chemicals are always worth more
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World Markets Projected to Grow Significantly
Chemical Sector 2010 2025
Commodity Chemicals 1-2% 6-10%
Specialty Chemicals 20-25% 45-50%
Fine Chemicals 20-25% 45-50%
Polymers 5-10% 10-20%
Source: BIO, Biobased Chemicals and Products; chart data source: USDA, U.S. Biobased Products Market Potential and Projections Through 2025
* The U.S. is the largest chemicals and plastics market in the world
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Economic Benefits of Dedicated Energy Crops
Year 1 Year 2 Year 3 Year 4 Year 5
Dedicated Energy Crops
• Feedstock price volatility causes difficulty for chemicals industry to absorb
• Long-term, fixed price contracts for dedicated energy crops offers valuable price stability
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Why Sugar Cost and Yield Matter
Sugar Cost
Raw Material Price $/Pound $/Bbl Ethanol
Corn (C6) $6/bushel $0.14 $86
Sugarcane (C6) $25/ton $0.09 $55
Cellulosic (C5 & C6) $60/BDT $0.04 $18
• Cellulosic feedstock lowest cost sugar
• Feedstock typically >50% of operating cost
• High yield sugar conversion matters
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Solving the Feedstock Issue
• Dedicated Energy Crops Land aggregation Long-term contract High density 3-yr rotation Store on the stump 50,000 acres = 100M GPY
• Supplement with locally available agricultural residues (wheat straw, corn stover, etc.)
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Multiple Petroleum Replacements
• Potential markets >$1 Trillion
• Customers will make NO adjustments to use ZeaChem’s products
• Use same equipment and change organism to produce multiple products
• Started C3 platform development
ZeaChem Platform
PropionicC3
ButyricC4
AceticC2 Ethanol Ethylene
Linear a-olefins
Ethylene glycol
Poly-ethylene Packaging
PET
Jet / Diesel
VAM EVA Paint / Adhesives
AceticAnhydride
Cellulosic Acetate
Rayon / Filters
AceticSales
Gasoline Blending
Butanol Butene
Alkylate Drop-in Gasoline
Rubber / Plastics
Propanol Propylene
Alkylate / Polygas
Drop-in Gasoline / Alkylate
Poly-propylene
Automotive / Packaging
Acrylics Super- Absorbents
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Example Chemical Products and Markets
Product Global Market Size End Product Uses
C2 Products
Acetic Acid $3.6B Paints, coatings and solvents
Ethyl Acetate $1.6B Paints and adhesives
Ethanol $46B Gasoline blending
Ethylene $179B Plastic bottles and bags
Ethylene Glycol $15.6B Antifreeze, precursor to polymers
C3 Products
Propylene Glycol $1.4B Detergents, antifreeze and solvents
Propylene $108.6B Caps, toys, and housewares
Acrylic Acid & Esters $4B Detergents, antifreeze and solvents
Methacrylic Acid & Esters
$5.1B Surface coatings and inpregnation resins
C4 Products
Butanol $1.4B Fuel, artificial flavorant, perfume
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• Boardman, OR, Port of Morrow• 250,000 GPY integrated biorefinery - demo scale• Intermediate chemical production beginning 2011• Development of 25M GPY 1st Commercial underway
Executing on Deployment
Schematic of future facility
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Why ZeaChem Chemicals Will Win
• Dedicated energy crops Known sugar costs
• Multiple products Diverse product portfolio
• Executing deployment C2 platform at demo, then commercial C3 platform started at lab
Profit$
