Cellulosic Sugar ProjectPROJECT OVERVIEW

JAMES LEE

BIOINDUSTRIAL INNOVATION CANADA

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Presentation Objectives

Overview of Cellulosic Sugar Project

Process

Recommendations

Observations

Innovation

Economics

What’s Next?

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Cellulosic Sugar Project Overview

3

Addressable Markets 4

CELLULOSIC PRODUCTS

HEMI-

CELLULOSE AND

XYLOSE (C5)

LIGNIN

CELLULOSE AND

HIGH PURITY DEXTROSE (C6)

APPLICATIONS

Alcohols

Amino Acids

Organic Acids

Olefins

Alkanes

Polymers

Microbial Oils

Animal and Aqua

Feeds

Pharmaceuticals

Energy

Lubricants

Resins

Fertilizer

Bio-chemicals

Composites

Bio-chemicals

Alcohols

Polymers

Organic Acids

ADDRESSABLE

MARKET

$127 BN

6% CAGR

$7BN

2% CAGR

+$1BN

+4% CAGR

SIGNIFICANT

OPPORTUNITIES FOR

INNOVATION IN

TECHNOLOGY,

PRODUCTS,

APPLICATIONS AND

MARKET DEVELOPMENT

BIOMASS

Corn Stover

Wheat Straw

Hardwood

Bigasse

FEEDSTOCK

Comet, Tech Providers, BIC

VISION

An operating agricultural biomass to end-products supply chain by

2020

Profitable at all levels and for all participants

Sustainable at all stages

Target construction of first cellulosic conversion plant by 2018

Farm

Biomass Conversion

Products and CoProduct

Building Blocks

End Products

Reuseable, Recycleable

Residuals

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Cellulosic Sugars – Project

Development6

Biomass

Conversion to

Building Blocks

Farm

Chemical

Products

Energy

Products

Materials

Agricultural

Products

End UserBiomass

Aggregation and Logistics

2013

Feasibility study

2014 to 2015

Harvesting Demo

Agronomic Study

Formation of Biomass Coop

Technology Demo and Selection

2016 to 2018

Project Execution

1st Commercial Plant

Aggregation and Logistic Plan

Customers

Financing

Collaboration Partners and ParticipantsPhase Partners and Participants

1

Feasibility

2013

Bioindustrial Innovation Canada (BIC), Sustainable Chemistry Alliance Investment Fund

(SCA), Ontario Federation of Agriculture (OFA), Agriculture Adaptation Council (AAC),

Local Farmers, Lanxess, BioAmber, Midori, University of Guelph, Sarnia Lambton

Economic Partnership, Ontario Power Generation, Ontario Ministry of Agriculture and

Food (OMAF), Agriculture and Agri-Food Canada (AAFC)

2

Biomass Supply demo

and validation

2014/15

BIC, OFA, AAC, AAFC, Grain Farmers Ontario (GFO), Local Farmers, AGCO, LaCOOP

Federee, Agris, Advantage Farm Equipment, Wanstead Farmers Coop, IGPC Ethanol,

Agromart, Hiniker, Stinger, BioProducts Agriculture Science Cluster

3

Tech Selection, logistics

and Economics

2014/15

BIC, OFA, AAC, AAFC, Fed Dev, ON, Alberta Agriculture, GFO, IGPC Ethanol, Local

Farmers, Jungbunzlauer, BioAmber, Cellulosic Sugar Producers Coop, 19 Biomass

Conversion Technology Companies, Western University, Agris, NRC, University of British

Columbia, Potential Customers

4

Project Dev

2016

BIC, SCA, TBA, Cellulosic Sugar Producers Coop, Comet Biorefining

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Execution

2016-2018

BIC, SCA, TBA, Cellulosic Sugar Producers Coop, Comet Biorefining

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3 Market

Group

3 Supply

Group

3 BIC

1 OFA

1 GFO

1 Alberta

Project Participants – Technology

Selection

Steering

Committee

10 people

2 observers

BIC

James LeeMurrayMcLaughlin

Sandy MarshallMatthew Slotwinski

Technology

Providers

Blind

Testing @

Labs and

Potential

Customers

Market

Group

NDA

Wall

NDA

Wall

Supply

Group

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Full Development

Project #1 – 2016 to

2018

Project #2

Project #3

Technology Selection Results (Phase 3)

Technology selection process completed in February 2016

Validated Economics from the Farm to the Products for a cellulosic

sugar plant producing up to 125,000 tonne/year of cellulosic sugars

from up to 250,000 tonne (dry)/year of biomass feed

Recommended up to four conversion technologies for full project

development, including a commercial scale cellulosic sugars manufacturing facility

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Selection Criteria – High Level

# Criteria Measure Conditions

1 Economic Risk

Adjusted $

Must be economically viable without any subsidy

such as RIN, FIT, etc.

2 Technology Y/N, Risk

Factor

Must be ready for commercial scale-up or a 2nd of

its kind, Must have clear title to IP

3 Responsible Care

and Sustainability

Y/N Must be safe, all associated chemicals must be

registered, minimal environmental footprint. Must

be able to demonstrate farm sustainability as part

of supply chain

4 Operability and

Reliability

Y/N Must be able to operate reliably 365x24 without

exceptional complexity

5 Feedstock Y/N Must be able to process corn stover and wheat

straw

6 Product quality Y/N Must be able to produce sugar and co-product

streams saleable into chemical, renewable

fuel/energy, materials or agricultural markets

7 Organizational and

Strategic Fit

Y/N Must fit with Cooperative’s organizational mandate

and BIC’s strategic mandate

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BioProducts

Cluster

Project

Economic Analysis Envelope

PreTreatment Conversion

Separation

and

Purification

Product

Storage

Biomass

Storage

Delivered

Cost of

Biomass

Sales

Sales Logistics

Economic

Synergies with

Biomass Suppliers

and Conversion

Facility

Economic

Synergies with

Customers and

Conversion

Facility

Products &

CoProducts

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Results of Stage-Gate Process

Stage 1

19 Technologies

“Paper Evaluation” vs Criteria

Stage 2

8 Technologies

Technology validation, blind lab analysis of products, FEL1 mass and energy balance and process economics

Stage 3 – Validation at Demonstration/Pilot Scale

4 Technologies

Processing of corn stover supplied by BIC from 240 acres harvested under BioProducts Cluster Project (OFA/LCF)

Mass and energy balance from biomass processing, samples tested by Customer Group and blind testing labs

Project Economics (farm to customer)

Recommendations for Project Development

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Recommendations

4 technologies recommended to Cellulosic Sugar Producers

Cooperative

Requirements for commercial scale project development

Comet Biorefining chosen by CSPC

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Cellulosic Sugar Technology

Observations

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Cellulosic sugar technology trivia

that had no influence in BICs

evaluation 90% of the technologies started with hardwood as the starting

biomass

>75% of the technologies latest design ended with agricultural

biomass as the preferred feedstock

US renewable fuel policy accelerated development of cellulosic technologies

Original assumptions of ultra low cost biomass has proven to be an

economic myth

Lignin still cannot make money today

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Top Three Costs of Producing

Cellulosic Sugars (Glucose Basis)

1. Delivered cost of biomass

2. Conversion of cellulose to glucose

Enzymes

3. Pretreatment

Separation of cellulose, hemicellulose, lignin

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Bipolar Distribution in Investment in

Biomass Processing Innovation

Cost Component Investment in Innovation

Biomass Significant

Conversion of Cellulose to

Glucose

Pretreatment

Separation of Cellulose,

Hemicellulose, Lignin

Significant

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Cellulosic Building Block ProductsListed from highest to lowest value today

1. High Purity Xylose

2. Crystalline Nano Cellulose

3. High Purity Glucose

4. High Purity Cellulose

5. Hemicellulose

6. Lignin

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Investment in Innovation of Building

Block Derivatives

Cellulosic Building Block Product Investment in Innovation

High Purity Xylose

Crystalline Nano Cellulose Significant

High Purity Glucose

High Purity Cellulose

Hemicellulose

Lignin Overwhelming

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Competitiveness vs. Incumbent 20

Biomass

Technology

Operating

Glucose

Hemicellulose

Lignin

Corn

Operating

Fructose

Glucose

Starch

Oil

Cellulosic Sugar Chain

Development

What’s Next

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Evolution of Cellulosic Sugar Milling 22

Biomass

Technology

Operating

Glucose

Hemicellulose

Lignin

Biomass

Technology

Operating

Glucose

Hemicellulose

Lignin

Innovation and

development

Inc

rea

sin

g

ma

rgin

On Going Cellulosic Sugar Technology

and Market Development

Development of Canada’s first on-purpose cellulosic sugar plant in Sarnia, Ontario

Comet Biorefining

Cellulosic Sugar Producers Cooperative

Full development of corn stover supply chain for 1st plant

First commercial scale harvest of stover ready prior to plant start-up

Continued market experience and development of cellulosic building block products and technologies

Next cellulosic sugar plant development (Sarnia#2, Alberta, Saskatchewan, other Ontario location?)

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THANK YOU

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