PRESENTED BY
Jack MillerPrincipal Consultant, Market-Intell LLCAssociate Consultant, RISI
Cellulose Nanomaterials: An End-user Perspective
Acknowledgments
Much of the information in this presentation is derived from the study Nanocellulose: Technology, Applications and Markets, by Jack Miller, published in 2014 by RISI and from Jack Miller’s presentation at TAPPI NANO 2016.
For more information email [email protected] or visit:
www.risiinfo.com/product/nanocellulose-technology-applications-markets/
Thanks to Technical Advisors:
• Robert J Moon, Material Research Engineer, U.S. Forest Service and Georgia Tech Renewable Bioproducts Institute
• Mike Bilodeau, Director, Process Development Center, University of Maine
• Wadood Hamad, Principal Scientist, FPInnovations; Adjunct Professor, Depts. Of Chemistry and Chemical BioEngineering, University of British Columbia
• Jeff Youngblood, Associate Professor, School of Materials Engineering, Purdue University
3
Thank you !
Jo Anne ShatkinPh: +1 508 612 [email protected] "Nata de coco" by Midori - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons -
http://commons.wikimedia.org/wiki/File:Nata_de_coco.JPG#/media/File:Nata_de_coco.JPG
Agenda
• For end-users who need to know the state of commercialization• For producers who need to understand end-users’ concerns
State of the Industry:– Types of nanocellulose– Commercial development highlights– Capacity– Producer profiles– Research topics
The Road to Commercialization– End user concerns– Safety and regulatory– Value proposition and business case– Business models
Applications, Potential, and Forecasts
From the lab to the market
Source: GAO
Types of “nano” cellulose
• Cellulose nanofibrils (CNF) vs. Cellulose nanocrystals (CNC): vastly different
• Microfibrillated cellulose: MFC
• Cellulose filaments (CF)
• Different forms of CNC
• Different forms of CNF
• Different forms of MFC
• CNF vs MFC: how different are they?
• And… MCC, CMC, EFTec, Curran, Arbocel, etc.
Which of these characteristics matter for each application?
Powder, paste, gel, slurry, aqueous dispersionDispersibility
CompatibilizationNano, micro, macro?
Aspect ratioCrystallinityChemistry
Degree of fibrillationElectric charge
PurityIs it cellulose?
Commercial Development Highlights
• American Process: 100 tpy demonstration plant April 2015. • Borregaard, Norway. Exilva cellulose microfibrils. Commercial scale
1,000 tpy Q3 2016. Consortium with Unilever and several research groups.• CelluForce: CNC 1 tpd. Development in oil and gas with Schlumberger. • Daicel: commercial MFC since 1990.• Kruger: Running CF at 5 tpd since March. • Mitsubishi Pencil Co and DKS ballpoint pen ink with Rheocrysta.• Nippon Paper Crecia Co., Ltd., “ first commercial products made
of functional cellulose nanofibers“: TEMPO CNF in deodorant sheets for “Hada Care Acty” adult diapers.
• Oji agreement with Nikko Chemicals for joint development of CNF for cosmetic applications.
• Stora Enso. 100 million Elopak packages in Eastern Europe pilot market with New Natura Concept board grades containing MFC.
• Consortium of 100 companies: Nippon Paper Industries; Oji Holdings Corp.; Toyota Auto Body Co.; Mitsubishi Motors Corp.; Mitsui Chemicals Inc.;
Commercial Development Highlights
Several hundred companies have
tested cellulose nanomaterial,
possibly more than 1,000.
Yet, few commercial applications
reported to date.
Cellulose Nanocrystals (CNC)Capacity 2016
(kg per day)
Source: RISI, Nanocellulose: Technology Applications, and Markets, Market-Intell LLC
CelluForce 1,000
American Process 500
Melodea 100
Alberta Innovates 20
US Forest Products Lab 10
Blue Goose Biorefineries 10
FPInnovations 2
Cellulose Nanofibrils (CNF)Capacity 2016(kg/day dry basis)
Source: RISI, Nanocellulose: Technology Applications, and Markets,
Market-Intell LLC, ISO/TC, U of Kyoto, VTT
Paperlogic, USA 2,000University of Maine, USA 1,000American Process, USA 500Nippon Paper, Japan 150**Oji Paper, Japan 150*Innventia, Sweden 100Empa 15UPM, Finland Pre-commercialDai-ichi Kyogo, Japan Pilot**FPInnovations, Canada PilotSeiko PMC PilotSAPPI, Netherlands Pilot*U of Kyoto, RISH PilotVTT, Finland PilotDaicel, Japan Lab
Luleå University of Technology, Sweden LabUS Forest Products Laboratory, USA Lab
* Start up 2016
** TEMPO
Microfibrillated Cellulose (MFC)Capacity 2016(kg/day dry basis)
Source: RISI, Nanocellulose: Technology Applications, and Markets,
Market-Intell LLC, ISO/TC, VTT
FiberLean Technologies, Asia, USA* 20,000*
FiberLean Technologies, UK 5,000Borregaard, Norway* 3,000*Daicel, Japan 200CTP/FCBA, France 100Stora Enso, Finland Pilot market**UPM, Finland Pre-commercialFPInnovations, Canada PilotNorske Skog, Norway PilotLuleå University of Technology, Sweden LabUS Forest Products Laboratory, USA Lab
* Start up 2016
** With Elopak
Cellulose Filaments(kg/day dry basis)
Source: RISI, Nanocellulose: Technology Applications, and Markets;
Kruger, Market-Intell LLC
Kruger, Canada 15,000Performance Biofilaments lab
American Process
• AVAP biorefinery process, Thomaston GA, ½ tpd, April 2015
• BioPlus aqueous dispersion and spray dried powder
• Samples to more than 100 companies and universities across 23 countries
• Focus on collaborating with customers on the joint development of end-use applications to drive demand for next scale plant scheduled for start-up by 2019.
Borregaard
• Exilva cellulose microfibrils: “First commercial MFC”
• Q3 2016 10,000 tonnes of 10% paste/1,000 dry basis, Sarpsborg, Norway
• Order free samples from website
• Consortium with Unilever and several research groups
• Adhesives, coatings, ag chem, cosmetics, cement
• Demo plant for food grade MFC
CelluForce
• 1 tonne per day manufacturing plant, Windsor, Quebec, Canada. Fully scalable.
• First commercial CNC• Jointly owned Domtar, FPInnovations, Schlumberger• CNC by sulfuric acid hydrolysis• Redispersible spray dried powder• Samples available without IP sharing• Broad range of applications under development• Commercial applications in oil and gas, electronics, plastics expected by
year end 2016• Several grades of NCC depending on the applications
Daicel
• Leading producer of MFC since 1990. • MFC production capacity approximately 1,000 tpy, 10% to 35% paste
(approximately 200 tpy dry basis).• “Celish” MFC made from high purity cellulose pulp, and micro fibrillated by
the high pressure homogenizer. • Registered as a food additive in Japan and commonly used for filtration for
liquid food and Japanese Sake, improvement for the texture for cream type foods etc.
• Industrial applications in automotive, lithium ion battery separator, and composites.
• nano-Celish CNF is under development to find new applications that MFC has not been able to achieve.
FiberLean Technologies
• Joint venture: Imerys and Omya
• Leading global producer of MFC
• 5,000 kg/day UK
• 20,000 kg/day Asia and USA to start up 2016
• Composite of MFC and mineral (PCC, CaCo3, kaolin, etc.)
• Mechanical process on site at paper mill
• Replaces 10% to 15% of fiber in papermaking
Kruger Inc.
• Filocell cellulose filaments developed by FPInnovations
• 5 tpd demo plant started up 2014, Trois Rivieres QC; now 120 tonnes per week
• Similar to MFC, 80 -300 nm wide, but greater aspect ratio: up to 2 mm long
• Derived from pulp via purely mechanical process
• Material available for pre-commercial development under collaboration
• Available 30% solids. Also available as redispersible dried film
• Broad range of applications; focus on reinforcement for paper, adhesives, oil and gas, structural panels, coatings, and composites
Melodea
• CNC 100 kg/day from paper mill sludge• Official opening first half 2016; production second half. • Partner with Holmen• Recently awarded more than 1,000,000 Euro in 3 projects of the European Union Seventh
Framework Program (FP7):– BRIMEE aims to develop insulating boards to attach to the exterior and interior of old buildings
walls to improve insulation and reduce energy consumption.– NCC-Foam aims to develop commercially-viable, lightweight, rigid foam core materials for
sandwich structures for the composite industry.– FLHEA to develop renewable and recyclable food packaging materials based on natural fibers
such as flax and hemp. In FLHEA Melodea will produce flax based NCC that will be used as a strengthening agent for the novel bio-based packaging materials.
• Interested to enter new projects within Horizon 2020 program and open for partnerships.
Nippon Paper
• Iwakuni mill, 30 tpy, October 2013
• 500 TPY TEMPO plant planned
• TEMPO catalytic oxidation for transparent display
• Filtration, high gas barrier packaging, electronics, food, medicine, cosmetics, heat care
• World's first commercial products made of Functional Cellulose Nanofibers: “Hada Care Acty” series, newly branded adult diapers that use the material, on October 1.
Oji Holdings
• 40 tpy CNF demo plant installed; start up late 2016
• Samples available for feasibility study
• Phosphorylated CNF
• High transparency, high viscosity, particle stabilizing ability
• Aqueous dispersion, powder, roll sheet
• Joint development with Nikko Chemicals for cosmetic applications
Paperlogic
• 2,000 kg/ day, Turners Falls MA
• Research partnership with University of Maine
• Improved paper strength and durability, moisture-proofing, greaseproof, etc.
Stora Enso
• Pilot plant, Imatra, Finland, 2011
• Milk cartons, rubber, coatings for food packaging, food additives
• New Natura Concept packaging based on MFC Test market with Elopak in eastern Europe; more than 100 million packages
• Western Europe test mkt in 2016
Research topics
• Surface modification
• Aggregation and dispersion
• Drying and dispersion
• Process improvement
• Electrical properties
• Rheological properties
• Optical properties
• CNF from coconut shells
• Carboxylated CNC CNF
• Hydrogels for drug release
• CNC barrier coatings
• Composites
• Drilling fluids
• Additive manufacturing
• Flexible paper batteries
• Air filters
SAFETY AND REGULATORY ASPECTS OF CELLULOSE
NANOMATERIALS
JO ANNE SHATKIN, PH.D.
PRESIDENT, VIREO ADVISORS, LLC
Regulatory Situation is Application Specific
Some markets have nanomaterials policies that are application-specific for:
– Occupational safety and health
– Chemicals legislation
– Cosmetics
– Food Use
– Pesticides/Biocides
• There are no universal requirements (each is different)
• Policies vary by market
• Most use a case-by-case approach
27©
US Laws governing nanomaterials and products• Regulation of Manufacture, Import, and Use of Nanoscale Substances,
Chemicals, and Materials: Toxic Substances Control Act (TSCA)
• Manufacture/Import/Labeling/Use of Nanopesticides/Antimicrobials: Federal Insecticide Fungicide and Rodenticide Act (FIFRA)
• Food, Drugs, Medical Devices, Food Packaging, and Cosmetics: Federal Food Drug and Cosmetic Act (FFDCA)
• Workplace Exposure: Occupational Safety and Health Act (OSHA)
Regulation of Nanoscale Materials in Consumer Products:
• Consumer Product Safety Act (CPSA);
• Consumer Product Safety Improvement Act (CPSIA)
• Federal Hazardous Substances Act (FHSA)
• Federal Funding of Nanotechnology Research and Development, Public Law 108-153, 21st Century Nanotechnology Research and Development Act (Dec. 13, 2008)
28©
US EPA Toxic Substances Control Act (TSCA)
• Nanoscale versions of existing substances with the same “molecular identity” are considered existing substances.
• If there is a change in molecular identity, then considered a new substance that must go through PremanufacturingNotification (PMN), unless exempt.
• EPA has reviewed over 180 PMNs for nanoscale substances, and has established policies.
• Implementation of the new Frank R. Lautenberg Chemical Safety for the 21st Century Act is changing the way EPA reviews new substances.
29©
What about Workplace Safety of Cellulose Nanomaterials (CN)?
• There are occupational exposure limits for cellulose; these apply to CN.
• Some studies have been published, but it remains unclear whether nano forms of cellulose have a different hazard profile than conventional cellulose if inhaled.
• For now, the best approach is to minimize potential exposure
• Vireo Advisors maintains a resources page on the TAPPI Nano website for Environmental Health and Safety http://www.tappinano.org/whats-up/ehs-summary/
• Vireo has also published a hazard characterization for Safety Data Sheets 1
1 Shatkin et al. 2016. TAPPI Journal 15(9):425
30©
Vireo is organizing a Studyto Evaluate the safety of CN
in Food And Food Contact ApplicationsSTRUCTURE: Pre-commercial/collaborative public/private project funding, planned to leverage government grant funds
HYPOTHESIS: Diverse forms of CN behave similarly in the gastrointestinal tract/simulated GI tract to conventional celluloses that are affirmed as Generally Regarded As Safe (GRAS) by the US Food and Drug Administration.
GOALS: Demonstrate safety by existing and novel testing focused on oral exposure pathways
Please Contact Jo Anne Shatkin for more information:
31©
Food Safety Project ObjectivesOBJECTIVES:
– Tiered testing approach – minimize initial effort
– Focused Oral Toxicity Studies with representative materials
– Conduct studies in commercial testing labs to compare oral uptake of novel forms of cellulose to conventional cellulose;
– Conduct in vivo and in vitro assays to compare oral exposure pathway dynamics of relevant pre-commercial forms of cellulose nanomaterials to GRAS forms of cellulose currently used in food with state of the art methods.
Keep up to date with our blog/ newletter! http://www.vireoadvisors.com/blog/
32©
End user questions
• What will be the price at commercial scale?
• When will producers be at commercial scale?
• Will there be multiple sources of supply?
• What is the status of compliance with health and safety regulations?
• What patents have been published recently?
• How to disperse CNC in aqueous/alkaline medium?
• Is it possible to increase hygroscopicity of cellulosic fibers by using cellulose nanomaterials?
• How to ensure the stability of nanomaterial dispersion in aqueous dispersion (any characterization technique?)
• Which applications will be commercialized first?
The road to commercialization
• Proof of concept• Need solid value proposition• Low oil prices• Funding challenges: the Valley of Death• Applications development• Market development• Who develops the applications? Who does the R&D? Who owns the IP?• It is not a “drop in”: implications for customer process• Scale up in production• Consistent quality from batch to batch• Which material is best for a given application?• What loading is optimal?• Scale up of applications• Competitive materials• Consistent quality from batch to batch• Safety and regulatory issues
Value proposition
• Weight reduction
• Rheology
• Improved performance/ substitution
• Process improvement
• Need data!
Supply and Demand
Qu
anti
ty
Price
Supply
Demand
Supply and Demand
Qu
anti
ty
Price
Supply
Demand
Breakeven nano costvs. weight reduction and loading
$0
$10
$20
$30
$40
$50
$60
2% 4% 6% 8% 10% 12% 14% 16%
Bre
ake
ven
nan
o c
ost
Weight reduction
1.0%
0.3%
5.0%
Source: Market-Intell LLC
loading
Business models
• Sell pre-commercial quantities to fund scale up
• Samples with collaboration or JDA
• Joint venture
• Consortium
• Licensing arrangements
• Who owns the downstream IP?
Applications and potential volume(thousand tons)
Market size Potential
loading
Nano Cellulose potential
Paper and paperboard 400,000 5.0% 20,000Paints and coatings 40,000 2.0% 800Composites 9,000 2.0% 180Films and barriers 9,670 2.0% 193Excipients 4,600 2.0% 92Natural textiles 34,500 2.0% 690Manufactured textiles 56,300 2.0% 1,126Cement 15,000 0.5% 75Oil and gas 17,500 1.0% 175Nonwovens 7,000 2.0% 140Adhesives 500 2.0% 10
TOTAL 23,500
Source: Nanocellulose: Technology, Applications and Markets, RISI 2014
Forecasts
Tonnes (000) Year
Vireo Advisors, high 56,481 potential
USDA 34,000 ~2045
RISI, potential* 23,500 potential
Vireo Advisors, low 18,283 potential
RISI, forecast* 450 2025
Arbora Nano 145 NA
CelluForce* 15 2017
Future Markets 0.8 2017
$65 million in 2015: Zion Research$250 million in 2014: RnR Markets$ 8 billion by 2030: Japanese government
*Source: Nanocellulose: Technology, Applications, and Markets, RISI 2014
Thoughts for end users
• Compare different materials
• Compare different sources
• Compare run to run
• Don’t think about the price, think about the value
Thoughts for producers
• Need test data
• Demonstrated value proposition
• Success stories
• EH&S info
See you in Montreal!Thank you!
PRESENTED BY:
Jack MillerPrincipal Consultant, Market-Intell [email protected]