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Production of Bio-Propylene by fermentation June 11 th 2015
Production of Bio-Propylene by fermentation
June 11th 2015
This presentation contains certain forward-looking statements that havebeen based on current expectations about future acts, events andcircumstances. These forward-looking statements are, however, subjectto risks, uncertainties and assumptions that could cause those acts,events and circumstances to differ materially from the expectationsdescribed in such forward-looking statements.These factors include, among other things, commercial, technical andother risks e.g. associated with estimation of the price of carbohydrateresources, the meeting of development objectives and other investmentconsiderations, as well as other matters not yet known to the Company ornot currently considered material by the Company.Global Bioenergies accepts no responsibility to update any personregarding any error or omission or change in the information in thispresentation or any other information made available to a person or anyobligation to furnish the person with further information.
Disclaimer
Global Bioenergies at a glance/Isobutene program
Global Bioenergies at a glance
• Mission: Converting renewable resources into light olefins through direct fermentation
• Located close to Paris, France, in Genopole, the number 1 biotech cluster in France
• 68 employees, international Scientific Advisory Board
• Listed on Euronext Alternext since June 2011
• 9/2012: Most Innovative European SME (EuropaBio Award)
• Collaborations with Audi, Synthos, Arkema, LanzaTech
• Industrial pilot plant running in Pomacle since November 2014, with a capacity of 10 tons of bio-based isobutene per year
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Light olefins: a global market of $300 billion
Volume (Mt)
Price ($/kg)
Market (b$) Main applications
Ethylene 115 1 1.25 1 144 Polyethylene (60%)
Propylene 83 5 1.20 4 100 Polypropylene (65%)
Linear butenes 37 2 1 - 2 37 - 74 Co-monomers in various plastics
Isobutene 15 2 1.7 - 2 6 25 - 30 Tires, organic glass, PET, fuels
Butadiene 10.6 2 1.8 3 19 Tires, nylon, coating polymers
Isoprene 1 2 2 2 2 Tires, adhesives
Total 261.6 1 - 2 328 - 369 6.4% of oil consumption7
1 ICIS statistics – January 29th, 20102 SRI reports3 Platts – February 2013
4 Platts – October 20125 Nexant – March 20126 DeWitt – March 20137 GBE calculations from BP statistics 2013
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Producing olefins in a different way
ButadieneN-Butenes IsopreneEthylene Propylene Isobutene
GASEOUSOLEFINS
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Isobutene: a wide product tree
ISOBUTENE
SOLID LIQUID8 carbons
>80 carbons
12 carbons
16 carbons
48-80 carbons
Gasoline
Jetfuel
Butyl rubber
Plastics
Organic glass
Diesel
Industrial lubricants
Methacrylic Acid
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• Installed on the BioDémo platform (Pomacle-Bazancourt industrial site)
• 500L fermenter pressurized up to 6 bars
• Maximum capacity: 10 tons per year
• Simplified purification system
• Applications: Methacrylic acid (<1Mrd$) and Plexiglas (7Mrd$)
• First fermentation runs in November 2014
• First samples in March 2015
Industrial pilot
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Partners
Publicfinancing
Audit andsurvey
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• 5 m3 fermenters
• Capacity : 100 tons per year
• Purification system allowing the production of high purity isobutene
• Start of construction: Q2 2015
• Start of operations: Q2 2016
Germany
France
Berlin
Paris
Photo : ARCHIV/FECHNER
Leuna
Demo Plant
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Collaboration in acrylicpaints
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Proof of concept and prototype
Strain construction and fermentation
Industrial pilot -Pomacle
Demo Plant -Leuna
JV with
Collaboration on isooctane
Isobutene
A company that has always delivered…
2009Mid-2011
Mid-2013
Mid-2015
Research
Development
Scale-up
Commercialization
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Outlook for propylene
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Propylene product tree
Propylene>80 million tons
Polypropylene: 63%
Acrylonitrile: 7%
Acrylic Acid: 4%
Propylene Oxide: 7%
Cumene: 6%
Oxo Aldehydes/Alcools, (Iso) Butyraldehyde : 13%
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Light olefin market dynamics
q The deployment of the shale gas industry results in ethylene overproduction and in a progressive shortage of propylene, isobutene and butadiene
Conventional petroleum cracking
Shale gas cracking
Ethyleneproduction
C3 / C4production
Ethylene
Propylene
IsobuteneButenesButadiene
Other
(C4)
(C3)
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Alternative fossil propylene processes
Metathesis
Ethylene PropyleneEthaneI - Cracking II - Metathesis
III - SeparationMetathesis is
capital intensive
Propane dehydrogenation
PropylenePropaneI - Dehydrogenation
II - Separation
Propane dehydrogenation appears to bethe best alternative fossil-based technology
Methanol routesWoodCoal
Methane
Propylene(C3 olefin)
Methanol(C1 alcohol)
MTP Methanol to Propylene is
capital intensive
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Will coal-to-olefins remain an interesting technology
Source : HSBC
q A low brent value will advantage naphtha crackers. Some projects will probably be canceled.
q Water scarcity in coal producing regions (47% of Chinese coal reserves are in water scarce regions)
q GHG emissions double for coal-to-olefins compared to naphtha cracking
q Coal-to-liquids (for fuels) plants could be banned in China soon. Will a developed China in 2020-2025 accept the building of new coal-to-propylene plants ?
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Will propane remain cheap ? (I)
Source : Argus DeWitt, Index Mundi
q Propane significantly cheaper than crude oil is a recent phenomenon (2012). Before, only metathesis was considered as a fossil on-purpose alternative.
q Propane price is seasonal and subject to large increase during cold winter (January 2014 in the US)
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Will propane remain cheap ? (II)
Source : Nexant, Argus DeWitt
Quote from Nexant:
à propane price could align to world levels, due to exports, in 2018
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Proposed bio-propylene process is complex
Costly chemical
conversion step
Metathesis is
capital intensive
Ethanol route
Sugars Ethylene(C2 olefin)
Propylene(C3 olefin)
Ethanol(C2 alcohol)
III - Dehydration IV - Metathesis
V - SeparationI - Fermentation
II - Distillation
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Opportunity
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q Market trends:• Shale gas developments create a relative scarcity of propylene• Preference for bio-based products in certain markets• Sugar/cereals producers seek to develop new markets for their
products
q Interests of Global Bioenergies bio-propylene:• A simple, cost-efficient, technology for bio-based propylene• Hedging against oil prices and shale-gas driven propylene volatility• Access to markets where customers value bio-based (green
premium)
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Global Bioenergies’ technology to bio-propylene
Structure of a bio-process
Fermenting(micro)organism
Renewable feedstocks
Purification / Transformation
Product
Industrial bio-process
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State of the art
q Starting point: a natural strain that produces small amounts ofthe compound of interest.
q Development and industrialization:• Improvement of enzymes and metabolic pathways.• Construction of industrial strain and development of lab-scale
process.• Scale-up of the fermentation process and downstream process
engineering.
q This approach works well for compounds found in nature(propanediol, succinic acid, isobutanol,…).
q It cannot be used for gaseous olefins as they are not producedby microorganisms in nature.
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Artificial metabolic pathway
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The bioproduction of light olefins required a breakthrough innovation, based on the development of artificial metabolic pathways
Glucose
Undescribedenzymatic reactions
Non typical-metabolic intermediates
Genetically engineered microorganism
PROPYLENE
Proof-of-concept: 2012 Prototype strain: 2014
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Breakthrough technology bydirect fermentation to a gas
No product associated toxicityPre-purification by product volatilization
ISOBUTENE
BUTADIENE
PROPYLENE
I - Fermentation
Combination of provenpetrochemical modules
High performanceSimple design
II - Purification
Olefin production by direct gas fermentation
GLUCOSESUCROSE
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GlucoseSucrose
Genetically engineered microorganism
Modified central metabolism
Natural metabolic intermediate(precursor of target molecule )
Targetcompound(isopropanol, isobutene, …)
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Alternate route to propylene by hemi-synthesis (I): alcohol biosynthesis
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II - DistillationI - FermentationIII - Dehydration
Isopropanol dehydration has already been investigated by the industry since the 1990s. 100% conversion and 99,9% selectivity reported in the processes.
PROPYLENEISOPROPANOL
Optimized yield compared to natural pathway: +33%
Alternate route to propylene by hemi-synthesis (II): alcohol dehydration
GLUCOSESUCROSE
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Opportunity with 2nd generation sugars
Feedstock flexibility:
q 2nd generation technologies are being developed, from wood, straw or waste
q An existing bio-propylene or bio-isobutene plant will be compatible with 2nd generationsugars.
q GBE is investigating different 2G sugar technologies but has no 2G sugar price hypothesis. 2G players claim having production cost inferior to first generation sugars
q GBE has performed tests on samples from nine 2G sugar producers, from different technologies and resources (wood, straw, bagasse). Fermentation of isobutene with 2G sugars is similar to the fermentation of first generation sugars
Bio-olefin2G SugarsBiomass
Many players GBE
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ConvertersPropylene
PP ManufacturerCrackers
A bio-propylene plant would directly fit in current fossil value chain
Polypropylene
Bio-propyleneplant
Value chain
Brands
Plastic goods
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