Furanics: Avantium’s next generation biofuels and bioplastics Tom van Aken Chief Executive Officer Avantium Technologies Amsterdam, the Netherlands
Furanics: Avantium’s next generation biofuels and bioplastics
Tom van Aken Chief Executive OfficerAvantium TechnologiesAmsterdam, the Netherlands
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Avantium’s Profile
• Spin-off from Royal Dutch Shell in 2000• Proven expertise in catalysis and crystallization research & technology• Strong IP position (>50 patent families)• Proven track record in the energy, chemical and pharmaceutical industries• Seasoned management team
From 1 reactor in the conventional way… …to 64 parallel reactors in the Avantium way
Technology company set up to develop new products and processes faster,
more cost effective and with a superior rate of success
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Avantium key data
• Revenues 2007: € 15 million (expectation for 2008: 25% growth)• Profitable and cash flow positive Services & Tools business• 135 employees; 5,200 m2 of high-tech laboratories and offices in Amsterdam, the Netherlands
• Avantium successfully raised € 18 million in October 2008
• Strong Investor base:
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Strategy
Advanced high-throughput R&D
Services & Tools
Product development
programsBiofuels program
Pharmaceutical program
• Advance the product development programs to commercial viability
• Attract value-adding partners for final development and commercialization
• Continue to invest in further strengthening the high-throughput R&D technology
• Continue to expand the profitable Services & Tools business
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A Proven Approach
Avantium’s track record demonstrates the value of its technology and expertise• Multi-year, strategic partnerships with BP, Shell and Sasol• Over 70 energy & chemicals and pharmaceutical customers• Global customer base, of which 35% is a Fortune 500 company• High level of repeat business and customer loyalty• Benefit from the industry’s need for improved and accelerated product and process development
PharmaceuticalEnergy & Chemicals
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Furanics: Avantium’s next generationBiofuels
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Driving towards a biobased economy
Global need for sustainable energy and material solutions:- Recognition of correlation between green house gas emissions and global warming - Increasing consumer preference for green and energy efficient products- Governments mandate higher usage of alternative energy
Increasing concern in the Western world about dependency on oil imports:- National oil companies continue to strengthen their grip on worldwide oil and gas reserves - Demand of China/India have long-term effect on oil prices- Price volatility of oil is of major concern to stable growth of the world economy
Long-term perspective of energy markets has not changed by the recent economic turmoil.
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1st generation technology
Fuel
Biodiesel
Plant
Transesterfication
Crops
Cellulose
Oil
Vegetable oil
Feedstock Conversion Products
Limited supply
Ecological impact
Expensive
↓
Dependent on subsidies
Poor fuel properties:
Cold flow properties
Acidic
Blending
Oil
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1st generation technology
Fuel
Bio-ethanol
Plant
Fermentation
Crops
Wheat/Corn
Sugar
Glucose
Feedstock Conversion Products
Conflict with food chain
Expensive process
Capital intensive plants
↓
Dependent on subsidies
Poor fuel properties:
Energy density
Corrosive
Blending
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2nd generation technology
Fuel
Cellulosic-ethanol
Plant
Fermentation
Crops
Cellulose
Sugar
Glucose
Feedstock Conversion Products
Conflict with food chain
Expensive process
Capital intensive plants
↓
Dependent on subsidies
Poor fuel properties:
Energy density
Corrosive
Blending
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Our next generation technology
Biofuel
FURANICS
Plant
Chemical/ catalytic
Crops
Cellulose
Carbohydrates
Feedstock Conversion Products
Conflict with food chain
Expensive process
Capital intensive plants
↓
Dependent on subsidies
Poor fuel properties:
Energy density
Corrosive
Blending
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Avantium Approach
Catalyst development engine
FEEDSTOCK PREPARE CATALYSTSHIGH-THROUGHPUT CATALYST TESTING
HIGH-THROUGPUT ANALYSISMODELLINGDISCOVERY OF NOVELCATALYSTS
Unlocking the potential of a new platform molecule: Furanics
Biofuels
1/ Diesel
2/ Jet fuel
3/ Gasoline
Bioplastics:
1/ Polyesters
2/ Polyamides
3/ Polyurethanes
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Breakthrough Results Furanics biofuels
Positive conclusions engine tests• Existing, unmodified diesel engine • Successfully tested various blends• Good blending properties• Environmental benefits:
– No sulfur– Significant decrease in small particulate
matter / soot
Note: Normal Volume is the volume at 1 atm and 0 °C
Experiment Volume Total particulate matter
Actual [m3/h]
Normal[Nm3/h]
Concentration[mg/Nm3]
Furanics blend (17%)
80 60 5.1
Conventional Diesel
80 60 6.1
Furanics: Attractive process economics and superior fuel properties:
• 30-50% lower production costs than ethanol (excl. subsidies and by-product credits)
• High energy density• Excellent fit with existing refineries and fuel
infrastructure
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Furanics: Avantium’s next generationBioplastics
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1st generation technology
Bioplastic
PLA
Plant
Fermentation
Sugar
Glucose
Feedstock Conversion Products
Expensive process
Capital intensive plants
Biodegradable
Poor heat resistance
Limited application areas
Polymerization
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Our next generation technology
Bioplastic
Furanics
Plant
Chemical/catalytic
Sugar
Glucose
Feedstock Conversion Products
Biodegradable
Poor heat resistance
Limited in application area’s
Polymerization
Expensive process
Capital intensive plants
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Furanics for Bioplastics
• Avantium targets multiple furanics-based plastics– Polyesters (such as PET)– Polyamides (such as nylon)
• Plastics based upon biomass instead of oil• Proven attractive product characteristics, including
heat resistance• Significant cost advantage vs oil based process:
Oil based polyesters:Oil
↓
Para-Xylene
↓
PTA monomer
Cost price: ~€ 730 / kmt
Bio-based polyesters:Sugar
↓
Furanics
↓
FDCA monomer
Cost price: ~€ 500 / kmt
Based on 350 kt factory; Q4 2008 raw material prices
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Avantium’s Pole Position
Value enhancing milestones
Superior products
Improved processes
• Furanics– Biofuels with superior fuel properties and environmental benefits– Bioplastics with attractive product characteristics
• Avantium has patented the use of furanics as a fuel and industrial production routes to Furanics (first 2 patent application published in Sep 2007)
• Significant cost advantages over 1st and 2nd generation technologies and potential to compete with oil-based products and processes
• 2009: Scale-up of Furanics process• 2009/2010: Extensive engine testing program of Furanics biofuels• 2009/2010: Application development of Furanics bioplastics• 2010: Pilot-plant production
Clear path to commercialization
• Strong industry interest in application of Furanics biofuels and bioplastics• Partnering strategy to expedite further development and commercialization
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