Chempolis Asia Business Case

The future is

BIOREFININGCase Chempolis

Pasi Rousu, PresidentChempolis Asia-Pacific

OUR MISSION

We develop and deliver technologies capable of refining biomasses economically into high-quality products while minimizing environmental impacts and maximizing social benefits

“In order to live sustainably on this planet, we need to make more efficient use of global resources. We are stepping up to the challenge!“ (CEO Esa Rousu, Chempolis Ltd.)

BUSINESS IDEA

Deliver formico® biorefineries, which make Sustainable Results using Non-Wood* and Non-Food** biomasses

* Non-Wood biomasses are mostly residues from agriculture, or naturally available fast growing plants: straw, bagasse, grasses, bamboo etc.

** Non-Food biomasses are mostly residues from food production: straw, corn, cotton & cassava stalk, bagasse, empty fruit bunches, wood residues etc.

THE BIOREFINING TECHNOLOGY CORPORATION

•Biorefinery•Head quarters•R&D Centre•Land area 8,5 ha•Floor area 14 000 m2

Chempolis is private independent medium sized company (est. 1995) who supplies sustainable globally patented biorefining technologies, which has been acknowledged by World Bank, DoE, UPM, BASF and many customers

•formicofib™ the non-wood fibre technology•formicobio™ the cellulosic ethanol technology

3G formico® BIOREFINERY

3G formico®

biorefinery

power plant*or

gasification

Papermaking and textile fibresfrom Cellulose

Glucose, Bioethanol, Biobutanol, Bioplactics…from Cellulose

Xylose, Biochemicals…from Hemicelluloses

Fertilizerfrom Ash

Non-Food and Non-Wood biomass

Lignin PowerSteam

*) NOTE: Integration of existing power plant in pulp, paper, sugar, palm oil, ethanol etc mill infra to lignin combustion

CHEMPOLIS’S PRODUCTS• formicofib™ technology for the production of non-wood

papermaking fibres (technology transfer)

• formicobio™ technology for the production of non-food cellulosic ethanol (technology transfer)

• Deliver formico® systems for biorefineries (cooking, distillation and control systems)

• Supply EPC-services for biorefinery projects (Customer buy machinery and chemicals from local suppliers independently according to Chempolis specifications)

SUMMARY• 3G formico® biorefining technologies are the

future, but available today– Sugar platform– High conversion of products gives 25-40 % higher sales revenues

than current or competing technologies– Approx 20-50 % lower operation cost than current or competing

technologies– Energy self-sufficient low carbon technology– Effluent free with minimal water use

• Social, Environmental & Economical sustainability

BUSINESS DEV. PHASE 1• Establishment of Chempolis in 1995

− Development of basic technology and learning the markets− First entries to USA & Latin America, India and China 1995-1998

alone and with one engineering company

• Start focusing on China 1998− First agreements 2000, which did not finally realize− Lack of risk finance and environmental legislation was not

development well− No control of environmental legislation

• Subsidiary in Shanghai in Finchi 2007− Well connected, supply chain− Time for clean tech; realisation of first projects

LESSONS LEARNT IN ASIA• China is still big opportunity but...

− Generally very diffucult as all big competitors are there− Local companies with low cost structure competite with you− Selling of technology/IPR is a challenge!− Good time for clean tech

• India will be big opportunity but...− Each province is different− Lack of implementation

• Shouth east Asia is an opportunity− Big opportunities and less competition− Easier than China

LESSONS LEARNT IN ASIA• How to get good customers?

− Asia is big opportunity, with 3 billion population− How to find the target customer?− How to find the decision maker and get paid?

• Each country is different− Politics, religions, lucky numbers...− Legistelation, business licenses, approvals, company set up etc.

• ENTRY STRATEGY

BUSINESS DEV. PHASE 2• Thailand Q2/2010• Vietnam, Malaysia and India Q3/2010• Indonesia and Philippines Q2/2011• Venture capital search in Singapore & HK

Q3/2011

• Latin America Q3/2011• Eastern Europe 2012• Africa 2012

FINPRO’S ROLE• Business opportunity check; yes or no go• Deeper market access study & entry strategy

• Meeting arrangements and follow up• Legal entity and reqruiting

• Prestige & networking services• Venture capital search

WHY CHEMPOLIS DECIDED WORKING WITH FINPRO?• Each market is different• Located in key growing markets and areas• Well connected professional network with Finnish

goverment status• Opening the customers and goverment doors,

which very difficult to SME’s in Asia• Easy, fast and cost efficient

The future is

BIOREFININGThank You!

[email protected] + 66 80 818 4862