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Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ......

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Virent is Replacing Crude Oil. Advanced Biofuel Leadership Conference Lee Edwards – Virent CEO April, 2012 Virent 2012
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Page 1: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

Virent is Replacing Crude Oil.Advanced Biofuel Leadership Conference

Lee Edwards – Virent CEO April, 2012

Virent 2012

Page 2: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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

Virent 2012 2

Page 3: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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.

Virent 2012 3

• Continuous Catalytic Conversion

• Drop-ins with high yield efficiency

• 30 Issued/Allowed Patents

• 152 Pending Patent Applications

Page 4: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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

Virent 2012 4

Page 5: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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

Virent 2012 5

Page 6: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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.

© Virent 2012 6

Page 7: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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

© Virent 2012 7

Page 8: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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

Virent 2012 8

Page 9: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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

Virent 2012 9

Page 10: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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.

Virent 2012 10

Page 11: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

Virent 2012

Industry Opportunity

11

Page 12: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

Closing in on US Liquid Fuels Supply

© Virent 2012 12

U.S. Energy Information Administration | Annual Energy Outlook 2012 Early Release Overview

Total Imports valued at $200-500 bn

Page 13: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

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

© Virent 2012 13

http://www.energy.eu/#fueltaxesEIA: http://205.254.135.7/tools/faqs/faq.cfm?id=22&t=10

Page 14: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

China Liquid Fuel Supply Outlook

© Virent 2012 14

Note USA Consumption is 20 mm bbls/day: 200% more than China

Page 15: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

India Liquid Fuel Supply Outlook

© Virent 2012 15

Page 16: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

USA Agricultural Productivity Advantage 2011/2012

© Virent 2012 16Data Source: USDA FAS PSD

Page 17: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

Feedstock Energy Costs – Opportunity to Innovate

Heating Value Data Sources: GREET and Aspen Plus

© 2011 – Virent, Inc. Slide 17

Page 18: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

[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

Page 19: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

Leadership in Sustainability

Supp

ly C

hain

SUSTAINABILITY

Econ

omic

s

Envi

ronm

ent

CostVolatility

CustomerValues

ResourceScarcity

1

© Virent 2012 19

Page 20: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

Industry Prospects

Virent 2012 20

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!

Page 21: Virent is Replacing Crude Oil. - Ascension · PDF fileVirent Process Yield Advantage ... Propylene Butadiene Benzene Toluene Xylene Olefins Aromatics ... supply, economics, & environment

Lee Edwards – [email protected]

Thank you.

Virent 2012


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