Virent is Replacing Crude Oil.Advanced Biofuel Leadership Conference
Lee Edwards – Virent CEO April, 2012
Virent 2012
Virent at a GlanceThe global leader in catalytic biorefinery research, development, and commercialization
120 Employees
Financial Infrastructure
26x Development Pilot Plants, 1x 10,000 gal/yr Demo Plant
Partners & Investors
> $77 MM in Equity Funding, > $75 MM in Gov & Industry
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Virent BioForming® Platform
Biomass
Cane
Corn
Reformate
Distillate
Biomass
SugarCane
Corn
Aqueous Phase
Reforming (APR)
ModifiedZSM-5
Condensation + Hydrotreating
Aromatics&
Gasoline
Jet Fuel Diesel
Process flexibility enables the production of gasoline, aromatic chemicals, jet fuel and diesel from a variety of raw materials.
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• Continuous Catalytic Conversion
• Drop-ins with high yield efficiency
• 30 Issued/Allowed Patents
• 152 Pending Patent Applications
High Quality, Drop-in Fuels
Energy Dense, Drop‐in Fuels
Premium Biogasoline – 120,000 Btu/gal Virent Distillates Meet ASTM Specifications
Virent Fuel in Scuderia Ferrari Race Fuel
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Virent Process Yield AdvantageApproaching Theoretical- Lower is Better
Theoretical ‐Fermentation
Theoretical –Virent Conversion*
* Virent conversion process with external H2
2.5 lbs of sugar lbs of liq. HC
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Strategic Investors & Fuel Partners
Feedstock Logistics
ConversionPlatform
Deployment Opportunity
Customer Acceptance
Major shareholder
Participating in feedstock development and commercial deployment
Platform R&D Technology
provider Feedstock R&D Catalyst
development Operations
Major shareholder
Development partner
Fuel qualification
Scale-up partner
Market channels
Shareholder Support efforts
to determine sustainability in current and next generation engines
Develop, deploy and commercialize at scale a renewable “petrochemical” platform that can utilize existing infrastructure.
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Chemicals Strategic Investors & Partners
Feedstock Logistics
ConversionPlatform
Deployment Opportunity
Customer Acceptance
In Progress
Develop, deploy and commercialize at scale a renewable “petrochemical” platform that can utilize existing infrastructure.
Major shareholder
Participating in feedstock development and commercial deployment
Platform R&D Technology
provider Feedstock R&D Catalyst
development Operations
Development partner
In existing petrochem supply chain
Scale-up partner
Market channels
Demand and supply chain “pull-through”
Strategic alignment on alternative feedstocks
Support validation of final product
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World Petrochemical Volumes
Ethylene
Assoc. Gases /Naphtha
115 Mt/a
Estimates of world demand , 2009Sources: ICIS Chemical Business; BMI, CMAI.
Propylene Butadiene Benzene Toluene Xylene
Olefins Aromatics
Crude Oil
70 Mt/a
11 Mt/a
40 Mt/a
23 Mt/a
40 Mt/a
Natural Gas Liquids
• Approximately 300M tonnes in 2009
• Market value ~ US$400B (today)
• 7% CAGR, doubles market by 2020
Virent focusing on BTX
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PET Supply Chain Integration
Virent’s technology addresses sustainability: supply, economics, & environment Diversify raw materials leveraging current supply chain. Reduce exposure crude oil pricing Solution for demand for sustainability
Virent will target 2015 or sooner for the production of BioFormPX Secured Coca-Cola development and supply agreement. Establishing production and supply chain partnerships.
Crude Oil
Reformate
BTX PX PTA
PET resin Preform Bottle
Naphtha
Biomass Reformate BTX PX
Virent
PET fiber Textile Clothing
BioFormPXBrand
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VirentSummary
Leading technology with catalytic conversion to quality hydrocarbons including aromatics
First mover opportunities in chemicals PX is chemicals target Signed a JDA and MSA with Coca-Cola Establishing supply chain partnerships to support deployment
Deployment opportunities for fuels Supporting Shell to accelerate biomass to fuels deployment. DPA tri-agency partner opportunities
Developing pathways to accelerate integration with cellulosic feedstocks and lignin to further improve yields and profitability.
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Industry Opportunity
11
Closing in on US Liquid Fuels Supply
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U.S. Energy Information Administration | Annual Energy Outlook 2012 Early Release Overview
Total Imports valued at $200-500 bn
Fuel Prices could be higher!
$‐
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
United States Germany United Kingdom
VATExcise DutiesCosts + MarginCrude
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http://www.energy.eu/#fueltaxesEIA: http://205.254.135.7/tools/faqs/faq.cfm?id=22&t=10
China Liquid Fuel Supply Outlook
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Note USA Consumption is 20 mm bbls/day: 200% more than China
India Liquid Fuel Supply Outlook
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USA Agricultural Productivity Advantage 2011/2012
© Virent 2012 16Data Source: USDA FAS PSD
Feedstock Energy Costs – Opportunity to Innovate
Heating Value Data Sources: GREET and Aspen Plus
© 2011 – Virent, Inc. Slide 17
[Policy
Supporting the Industry
Slide 18© 2011 – Virent, Inc.
Technical/CapitalRisk
Product ValueRisk
• Stable Market Drivers• RFS• Section 526
• Market Floor• Section 45K
• Long-term Off-take
Long-term Policies
Feedstock PricingRisk
• Bonus Depreciation• Section 179C• Cellulosic Biofuels
• Investment Tax Credit• Expansion of MLPs• Loan Guarantees/Grants
• Stable and secure• Farmer incentives to participate•Sugar Availability Outside the Sugar Program
Leadership in Sustainability
Supp
ly C
hain
SUSTAINABILITY
Econ
omic
s
Envi
ronm
ent
CostVolatility
CustomerValues
ResourceScarcity
1
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Industry Prospects
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Meet or Exceed 2012-13 commercial milestones: Restore investor confidence- Signal risks early, avoid surprises
Distinguish Plant 1 performance and nth Plant: Set realistic forward plans- Yield- Scale- Capital Efficiency
New feedstocks & technologies compete with 1st Generation: Upside profits- Cellulosics- Waste streams
Support long term Policy stability and competition: We can win!