HANS CHRISTIAN HOLM, NOVOZYMES

HCH@NOVOZYMES.COM

TOWARDS THE BIOECONOMY:

NOVOZYMES CONTRIBUTION

SALES OFFICES RESEARCH PRODUCTION

Over 700 products in use in 30 different industries in 130 countries

The global leader in industrial enzymes & microorganisms

+6,000 employees worldwide Annual sales of ~2 Billion EUR

14% of revenues reinvested into R&D ≈ 50% market share in supply of enzymes for industrial use

NOVOZYMES – A BIOINNOVATION COMPANY

What are enzymes?

Enzymes are:

proteins used as catalysts to drive chemical reactions

highly specific biotech tools, replacing petrochemicals in many areas of industrial production

a renewable resource, fully biodegradable. Enzymes operate under mild process conditions, eliminate harsh chemicals. They allow producers to get more out of their raw materials

Risk of significant climate change

A growing global population

Increased prosperity and more resource-

intensive lifestyles

Dependency on non-renewable resources

The challenge

THE CHALLENGE

• World population grows by 75 million people each year

• 1 billion people use 80% of the energy while 5 billion use the last 20%.

• 1.6 billion people are still without electricity.

• Necessary to combine the struggle against GHG with the possibility of growth for the third world.

Greenhouse gas reduction when enzymes are used in different production processes

190 kg CO2/ton fatty acid ester

100 kg CO2/ton hide

Vegetable oil

Leather

Bread

Cotton yarn Laundry detergent

Pig feed Cosmetics

Pulp/paper Cheese

5−80 kg CO2/ton feed

1,000 kg CO2/ton yarn

6−150 kg CO2/ton pulp/paper

280 kg CO2/ton cheese

44 kg CO2/ton oil

110 kg CO2/ton bread

150 kg CO2/ton detergent

THE TRANSPORT CLIMATE CHALLENGE

The transport sector is responsible for about 25% of global CO2 emissions

Second-generation (cellulosic) bioethanol will reduce CO2 emissions by approx. 90%

Today, bioethanol and biodiesel can reduce CO2 emissions by 30−70% compared to gasoline

Source: UN-Energy, International Monetary Fund, EU JRC, US DoE

Transport is the fastest growing CO2

emitter and is expected to be the main driver of global emission growth

BIOFUEL IS THE KEY TO REDUCING GLOBAL CO2 EMISSIONS

BIOFUEL PRODUCTION CREATES JOBS AND IMPROVES THE ECONOMY

Source: IRENA annual review of jobs in renewables (2014, Wasted report (2014)

Today

1.45 million jobs in 2014 in the

liquid biofuels sector in 2014

globally. First employer is Brazil,

followed by the US and the EU is

third with 108,000 jobs according

to IRENA

2G potential in the EU by 2030

300,000 jobs in Europe from converting

220 million tons of sustainably available

agricultural residues, municipal solid waste

and forestry residues into 2G, replacing

16% of EU transportation fuels and

generating up to €15 bn additional revenues

FOOD AND FUEL IS POSSIBLE!

70% of the world’s agricultural area is used for livestock

Less than 2% of the world’s available crop area is used for biofuel feedstocks

1.4 billion ha of land – or 28% of the world’s total agricultural area – is used annually to produce food that is either lost or wasted.

How do we use the available land?

In Europe significant arable areas lies idle: every year 0.5 million ha of arable lands are abandoned in the EU.

Many energy crops for 2G ethanol can revitalize arid lands and prevent desertification

Plenty of oils and fats of high or low quality available for biodiesel

Increased biofuel production will not reduce land availability

BULLETS IN PLANES 3

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First real commercial enzyme use in oils and fats processing Infant milk replacers like Betapol – OPO fats

Babies were given standard cows milk But cows milk do not have the proper fat structure for infants.

In the old days…

With bioinnovation…

… The fat structure in Betapol® matches the structure of breast milk fat as closely as possible. The OPO fat is produced using a 1,3 specific lipase, as no harsh treatment is involved, high quality products suited for infants can be made.

BULLETS IN PLANES 3

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Cocoa butter equivalents – POP, SOS fats

... Cocoa Butter Equivalents were made from Shea nuts . The tree grows widely and naturally in West Africa.. But even as demand for CBE grows the supply of nuts become increasingly unstable

In the old days…

With bioinnovation…

... Cocoa butter Equivalents can be made from abundant vegetable sources. Different production strategies are pursued, most involve more than one enzyme stage, for production of the structured lipid

Lipozyme®

BULLETS IN PLANES 3

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Enzyme increase yield in vegetable oil refining

... degumming of vegetable oils was achieved using alkaline processes. This used large amounts of water and energy

In the old days…

With bioinnovation…

… enzymes improve yield in physical refining of oils thereby increasing refining margins

Lecitase®

Enzymatic Rearrangements of oils & fats

World largest margarine fat producers use enzymatic interesterification, Many @ several plant sites

Increasing public demand for removal of trans fats

BULLETS IN PLANES 3

Animation: The plane in the back is fixed. Plane (Today green) in front is animated: Fade on click. Use: To highlight information when discussing past and future situations.

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Improving feedstock flexibility for biodiesel

With bioinnovation…

... diesel will be biodiesel made from used cooking oils, acid oils, PFAD, vegetable oil or animal fat. Even FOG and brown grease are used Biodiesel reduces greenhouse gas emissions and is made from renewable resources.

Mixture of lipases

Economical benefits for the enzyme based process are based on

Feedstock flexibility

Enable use of lower cost raw materials

Used cooking oil, fatty acid distillates, and corn oil from ethanol plants available at much lower cost than refined soy, rape and palm – typically 100-200 USD/ton discount

Some feedstock might even have negative cost, FOG from wastewater plants

The enzyme process oils independent of the FFA content

Energy consumption

Significantly lower methanol rectification costs

Low methanol surplus dosed

Methanol is re-used with glycerin-water phase

Glycerin is pure

Technical grade glycerin can be sold at high value

> 100 plants World-wide use our enzymatic solutions to improve their oil & fats processing

Enzymatic Degumming plants Enzymatic Interesterification plants

Synthesis and modification plants Biodiesel plants

Join the dialog… www.bioenergy.novozymes.com

Thank you!

How we produce enzymes

RAW MATERIALS

FERMENTATION

MICROORGANISMS

PURIFICATION

FORMULATION

MICROORGANISMS TO BE INACTIVATED

READY-TO-SELL PRODUCTS

IMMOBILIZED PRODUCT

LIQUID PRODUCT