Nexant Complete Report templatethinking.nexant.com/.../report/.../STMC13_Bio_Naphtha_Brochure.pdf · the world’s reliance on non-renewable fossil fuels. ... Because bio-naphtha

NexantThinkingTM

Bio-Naphtha: Missing Link to the "Green" Chemicals Value Chain

Brochure April 2014

Special Reports

NexantThinkingTM

Special Reports

Bio-Naphtha: Missing Link to the "Green" Chemicals Value Chain

Brochure April 2014

A01390.020.4001 Special Reports

This Report was prepared by Nexant, Inc. (“Nexant”) and is part of the NexantThinking™ suite. Except where specifically stated otherwise in this

Report, the information contained herein is prepared on the basis of information that is publicly available, and contains no confidential third party

technical information to the best knowledge of Nexant. Aforesaid information has not been independently verified or otherwise examined to determine

its accuracy, completeness or financial feasibility. Neither Nexant, Subscriber nor any person acting on behalf of either assumes any liabilities with

respect to the use of or for damages resulting from the use of any information contained in this Report. Nexant does not represent or warrant that any

assumed conditions will come to pass.

The Report is submitted on the understanding that the Subscriber will maintain the contents confidential except for the Subscriber’s internal use. The

Report should not be reproduced, distributed or used without first obtaining prior written consent by Nexant. Each Subscriber agrees to use reasonable

effort to protect the confidential nature of the Report.

Copyright © by Nexant Inc. 2014. All rights reserved.

www.nexantthinking.com

Special Reports: Brochure Bio-Naphtha: Missing Link to the "Green" Chemicals Value Chain

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Contents

Section Page

1 Introduction ............................................................................................................................. 1

1.1 OVERVIEW ............................................................................................................... 1

1.1 BACKGROUND ......................................................................................................... 3

2 Report Scope ......................................................................................................................... 6

2.1 OBJECTIVE .............................................................................................................. 6

2.2 SCOPE ...................................................................................................................... 6

3 Report Table of Contents ....................................................................................................... 10

4 Methodology ........................................................................................................................... 12

5 Nexant’s Experience .............................................................................................................. 13

5.1 BACKGROUND ......................................................................................................... 13

5.2 DESCRIPTION OF SERVICES ................................................................................ 13

5.3 ASSIGNMENTS UNDERTAKEN COVERING BIO-FEEDSTOCKS,

BIOCHEMICALS, AND BIOFUELS ........................................................................... 16

6 Contact Details ....................................................................................................................... 20

6.1 CONTACT DETAILS ................................................................................................. 20


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Section 1 Introduction

1.1 OVERVIEW

Fossil fuels and petrochemicals form the building-blocks of modern society. They are the raw materials

for food, energy, cooking, and heating fuels, as well as durable goods such as clothing and furniture.

However, in an environment of high crude oil prices, concerns are mounting about the economic costs of

the world’s reliance on non-renewable fossil fuels. Consequently, some of the world's biggest players in

the energy and petrochemical industries are seeking to develop new feedstocks and products derived

from bio-based materials.

In addition to high costs associated with petroleum-based chemicals, environmental and sustainability

issues are no longer fringe, but mainstream concerns. This has helped generate a broad popular base of

support for the development of bio-based fuels, feedstocks, chemicals, and renewable plastics.

Bio-naphtha has the potential to produce a wide range of chemicals, and thus can “green” more of the

value chain than any other bio-based feedstocks or intermediates currently being targeted. This is

because all of the key petrochemical building blocks (shown in Figure 1.1) can be produced via

conventional naphtha steam cracking. By substituting bio-naphtha for petroleum-derived naphtha, these

products can serve as a platform for a bio-based renewable chemical industry.

The completed study gives subscribers a solid grasp of the development and potential for bio-naphtha as

a feedstock for chemicals production. The study also addresses the broader technical and commercial

implications of bio-naphtha production. Nexant also presents implications and potential for downstream

derivatives. This prospectus describes Nexant’s bio-naphtha multi-client study, the scope of the

proposed report, the methodology to be used, and Nexant’s qualifications to perform such a study.

The study was completed in fourth quarter, 2013.


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Figure 1.1 Products of Naphtha Steam Cracking

Naphtha

Ethylene

Propylene

Butylenes

Butadiene

Steam

Cracking

Pyrolysis

Gasoline

OLEFINS

AROMATICS

Benzene

Toluene

Xylenes

Bio-based

Petroleum-based

Pet

role

um-b

ased


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1.1 BACKGROUND

Globally, naphtha is one of the most important feedstocks for the production of chemicals. While ethane

and other light feedstocks are the predominant feedstock for steam cracking to olefins in the United

States and the Middle East, naphtha is the dominant feedstock for steam cracking to olefins in Asia,

Europe, and South America. Production of bio-naphtha would allow for many different products to be

derived from bio-content. As shown in Figure 1.2, a number of these chemicals and polymers are under

development from sugars. While bio-ethylene from ethanol is a commercial technology, few of the others

are currently commercially produced. Propylene and BTX are currently primary targets for bio-

development, and would be produced from bio-naphtha.

Figure 1.2 Chemicals and Polymers from Sugars

The main difference between the approaches shown in Figure 1.2 and bio-naphtha steam cracking is that

bio-naphtha can directly produce the main building block chemicals of the petrochemical industry

(ethylene, propylene, butylenes, butadiene, benzene, toluene, and xylenes) that are completely fungible

with the existing chemical industry. This is opposed to alternative approaches that target production of

only one chemical, often at far smaller volumes than produced by steam cracking and requiring many

costly conversion and isolation steps.

Because bio-naphtha steam cracking can utilize existing petrochemical facilities, no other downstream

processing or fancy chemistry is required to produce important base chemicals renewably. Figure 1.3

shows the conventional downstream value chain for petrochemical naphtha. Because bio-naphtha is

Sugars

Ethanol

Propanol

Commercial Developing Undeveloped

Butanol

Ethylene

Propylene

Butylene

BDO Butadiene

Succinic

PDO

Acrylic

FDCA

EG

p-XyleneBTX PTA

PET

Lipids

Isoprene

Adipic


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likely to be highly paraffinic, aromatics extraction by reforming bio-naphtha will likely be less attractive

than reforming conventional naphthenic naphthas.

Important recent developments have been focused on the development of bio-based feedstocks for

polymers. Across the chemical industry, many polymer and polymer feedstock producers, especially

those in high cost locations, are seeking lower cost feedstocks and are supportive of research into

alternative feedstocks such as bio-based sources. The potential for the development of breakthrough

bio-based technologies is driving many established global firms to invest in R&D in this area to ensure

that they are not left behind. Similarly, the rapidly growing movement to label products as “green” is an

important driver for durable goods manufacturers, who are keen to discover ways to utilize growing

volumes of renewable materials. Reflecting these trends, many fossil fuel-based chemical producers

have been diversifying into bio-based technologies through investments, partnerships, and acquisitions.


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Fig

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Section 2 Report Scope

2.1 OBJECTIVE

The study objective is to assess the technical, commercial, and economic status of producing bio-naphtha

that is suitable for use as a steam cracker feedstock. Bio-naphtha has the potential to significantly

supplement (and perhaps replace in certain scenarios) petrochemical feedstocks going forward. The

study will consider critical elements of the bio-feedstocks supply chain in evaluating this potential.

2.2 SCOPE

The study addresses the technical potential and economic competitiveness of bio-naphtha production

routes, and subsequent steam cracking.

This report assesses:

Technical feasibility of various bio-naphtha production technologies

Comparative economics of developing bio-naphtha routes and subsequent steam cracking as

compared to conventional petrochemical naphtha steam cracking

Commercial status and industry developments

Downstream potential and implications

Technology Coverage

Figure 2.1 shows the scope of the report and some of the potential technologies to be covered. Nexant

revised the developers on this list, based upon findings during the course of the study. As shown,

feedstocks to produce bio-naphtha fall into three categories: natural oils, biomass, and bio-methane for

naphtha production via gas-to-liquids (GTL) technologies. GTL technologies are not be covered since

none of the GTL developers are currently targeting bio-products, and low natural gas prices due to the

shale gas boom have reduced the economic competitiveness of bio-methane routes. Current developers

of technologies by feedstock type include:

Natural Oils

UOP – UOP is developing bio-naphtha process involving plant oil hydrogenation. This

process produces renewable diesel, renewable jet fuel, bio-propane, and bio-naphtha

NExBTL – Neste is developing bio-naphtha via their NExBTL process involving plant oil

hydrogenation. This process produces renewable diesel, renewable jet fuel, bio-propane,

and bio-naphtha

Total – Total has recently patented a process to produce bio-naphtha from plant oils.

The process involves hydrotreating natural plant oils and animal fats, producing

renewable diesel, renewable jet fuel, bio-propane, as well as bio-naphtha

UPM – UPM’s process involves hydrotreating tall oils and terpenes, producing renewable

diesel, renewable jet fuel, as well as bio-naphtha

Syntroleum – Syntroleum’s process involves hydrotreating natural plant oils and animal

fats, producing renewable diesel, renewable jet fuel, bio-propane, as well as bio-naphtha


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Figure 2.1 Scope of Report

NExBTL Process

Natural Oils

(e.g., Plant oils and

Animal Fats)

Feedstock Bio-Naphtha

Technologies

Steam

Cracking

Downstream

Technology

Biomethane

(e.g., LFG)

Downstream

Derivatives

SCOPE OF THE REPORT

SASOL GTL

Process

TOTAL Process

Solena Process

Biomass

(e.g., Ag Wastes,

MSW, etc)

EERC/Tesoro

Process

Rentech Process

Syntroleum

Process

UPM Process

Shell GTL Process

Other Small Scale

GTL


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Biomass

Solena – Solena’s process uses gasification to produce syngas, which is then

catalytically converted to a number of products via Fischer-Tropsch, including bio-

naphtha

Bio-methane

Sasol GTL – Sasol GTL’s process utilizes methane as a feedstock to produce syngas, which is then catalytically converted to a number of hydrocarbon products, including naphtha. While Sasol has not stated a goal of utilizing bio-methane as a feedstock, the process may be easily adapted

Shell GTL – Shell GTL’s process utilizes methane as a feedstock to produce syngas, which is then catalytically converted to a number of hydrocarbon products, including naphtha. While Shell has not stated a goal of utilizing bio-methane as a feedstock, the process may be easily adapted

Regional Economic Coverage

Economics for bio-naphtha technologies and downstream chemical production were developed for 2013,

and are presented using Nexant’s proprietary Cost of Production (COP) modeling system. Global

coverage is provided by the study, though a focus into regions of particular interest, including North

America, Western Europe, and China, will maintain. An example of this COP analysis for steam cracking

of bio-naphtha is presented in Table 2.1 and demonstrates the level of detail provided in the study.


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Table 2.1 Illustrative Cost of Production

BASIS CAPITAL COSTS Million U.S.$

Plant Start-up 2013 ISBL 0.0

Analysis Date 2013 OSBL 0.0

Location USGC Total Plant Capital 0.0

Capacity 0.0 M Lb/Yr Other Project Costs 0.0

0.0 KT/Yr Total Project Investment 0.0

Operating Rate 100 Percent Working Capital 0.0

Throughput 0.0 KT/Yr Total Capital Employed 0.0

Units Price,

/MT U.S.$ U.S.$ Annual Cost,

PRODUCTION COSTS Product /Unit /MT million U.S.$ U.S.$/Lb

RAW MATERIALS Bio-Naphtha MT 0.0000 0.0 0.0 0.00

Catalyst & Chemicals U.S.$ 0.0000 0.0 0.0 0.00

Subtotal, Raw Materials 0.0 0.00 0.000

BYPRODUCT CREDITS Propylene (PG) MT 0.0000 0.0 0.0 0.00

Fuel Gas MT 0.0000 0.0 0.0 0.00

Hydrogen (refomer grade, 80% ) MT 0.0000 0.0 0.0 0.00

Butadiene MT 0.0000 0.0 0.0 0.00

Raffinate-1 MT 0.0000 0.0 0.0 0.00

Benzene MT 0.0000 0.0 0.0 0.00

Toluene (mogas value) MT 0.0000 0.0 0.0 0.00

Xylenes (mogas value) MT 0.0000 0.0 0.0 0.00

C9 Aromatics MT 0.0000 0.0 0.0 0.00

Bz Raffinate MT 0.0000 0.0 0.0 0.00

Lt SC FO MT 0.0000 0.0 0.0 0.00

Subtotal, ByProducts 0.0 0.00 0.000

NET RAW MATERIALS 0.0 0.00 0.000

UTILITIES Power (Purchased) MWh 0.0000 0.0 0.0 0.00

Cooling Water kMT 0.0000 0.0 0.0 0.00

Boiler Feed Water MT 0.0000 0.0 0.0 0.00

Fuel Gcal 0.0000 0.0 0.0 0.00

Subtotal, Utilities 0.0 0.00 0.000

NET RAW MATERIALS & UTILITIES 0.0 0.00 0.000

VARIABLE COST 0.0 0.00 0.000

DIRECT FIXED COSTS Operators 0 men 0.0 Thousand U.S. $ 0.0 0.00

Foremen 0 men 0.0 Thousand U.S. $ 0.0 0.00

Supervisors 0 men 0.0 Thousand U.S. $ 0.0 0.00

Maintenance, Material & Labor 5 % of ISBL 0.0 0.00

Direct Overhead 45 % Total Operating Labor 0.0 0.00

Subtotal, Direct Fixed Costs 0.0 0.00 0.000

ALLOCATED FIXED COSTS General Plant Overhead 60 % Direct Fixed Costs 0.0 0.00

Insurance, Property Tax 1 % Total Plant Capital 0.0 0.00

Environmental 0 % Total Plant Capital 0.0 0.00

Subtotal, Allocated Fixed Costs 0.0 0.00 0.000

FIXED COST 0.0 0.00 0.000

CASH COST 0.0 0.00 0.000

Depreciation @ 10 % for ISBL & OPC 5 % for OSBL 0.0 0.00 0.000

COST OF PRODUCTION 0.0 0.00 0.000

Return on Total Capital Employed (Incl. WC) @ 10 Percent 0.0 0.00 0.000

COST OF PRODUCTION + ROCE 0.0 0.00 0.000


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Section 3 Report Table of Contents

Section Page

1 Executive Summary ............................................................................................................... 1-1

1.1 OVERVIEW ............................................................................................................... 1-1

1.2 INTRODUCTION ....................................................................................................... 1-1

1.3 BIOFEEDSTOCKS .................................................................................................... 1-4

1.3.1 Gasification Feedstocks ............................................................................... 1-4

1.3.2 Oleaginous Feedstocks ................................................................................ 1-7

1.4 CONVERSION TECHNOLOGIES ............................................................................ 1-8

1.5 ECONOMICS AND COST COMPETITIVENESS ..................................................... 1-9

1.6 MARKET ANALYSIS ................................................................................................. 1-9

1.6.1 Bio-Naphtha Production and Feedstock Supply .......................................... 1-9

1.6.2 Naphtha Cracking and Feedstock Supply .................................................... 1-10

1.6.3 Product Markets ........................................................................................... 1-10

2 Introduction ............................................................................................................................. 2-1

2.1 OVERVIEW ............................................................................................................... 2-1

2.2 BACKGROUND ......................................................................................................... 2-3

2.3 REPORT COVERAGE .............................................................................................. 2-6

3 Biofeedstocks ......................................................................................................................... 3-1

3.1 OVERVIEW ............................................................................................................... 3-1

3.1.1 Feedstocks Logistics .................................................................................... 3-1

3.2 BIOMASS .................................................................................................................. 3-5

3.2.1 Biomass Types ............................................................................................. 3-5

3.2.2 Supply .......................................................................................................... 3-29

3.3 NATURAL OILS ........................................................................................................ 3-33

3.3.1 Overview ...................................................................................................... 3-33

3.3.2 Natural Oil Types .......................................................................................... 3-36

3.3.3 Supply .......................................................................................................... 3-67

4 Conversion Technologies ....................................................................................................... 4-1

4.1 OVERVIEW ............................................................................................................... 4-1

4.2 HYDROPROCESSED ESTERS AND FATTY ACIDS (HEFA) TECHNOLOGIES ... 4-2

4.2.1 UOP .............................................................................................................. 4-3

4.2.2 NExBTL – Neste Oil ..................................................................................... 4-9

4.2.3 TOTAL .......................................................................................................... 4-10

4.2.4 Syntroleum ................................................................................................... 4-17

4.2.5 UPM.............................................................................................................. 4-24

4.3 FISCHER-TROPSCH TECHNOLOGIES .................................................................. 4-30

4.3.1 Solena .......................................................................................................... 4-30

4.4 NAPHTHA STEAM CRACKING ................................................................................ 4-36

4.4.1 Background .................................................................................................. 4-36

4.4.2 Renewable Naphtha Steam Cracking Yields ............................................... 4-38

4.5 OTHER NOTECHNOLOGIES ................................................................................... 4-39

5 Economics and Cost Competitiveness ................................................................................... 5-1

5.1 COSTING BASIS ...................................................................................................... 5-1


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Section 3 Report Table of Contents

5.1.1 Investment Basis .......................................................................................... 5-1

5.1.2 Cost of Production Basis .............................................................................. 5-2

5.2 BIO-NAPHTHA .......................................................................................................... 5-3

5.2.1 Bio-Naphtha Competitive Economics ........................................................... 5-3

5.2.2 Bio-Naphtha Cost of Production Models ...................................................... 5-6

5.3 NAPHTHA STEAM CRACKING ................................................................................ 5-25

5.3.1 Naphtha Steam Cracking Competitive Economics ...................................... 5-25

5.3.2 Naphtha Steam Cracking Cost of Production Models .................................. 5-28

5.4 CONCLUSIONS ........................................................................................................ 5-52

6 Markets ................................................................................................................................... 6-1

6.1 FEEDSTOCK SUPPLY AND SCALE ........................................................................ 6-1

6.1.1 Bio-Naphtha Production and Feedstock Supply .......................................... 6-1

6.1.2 Naphtha Cracking and Feedstock Supply .................................................... 6-2

6.1.3 Feedstock Supply and Scale Summary ....................................................... 6-3

6.2 PRODUCT MARKETS .............................................................................................. 6-4

6.2.1 Ethylene ....................................................................................................... 6-4

6.2.2 Propylene ..................................................................................................... 6-15

6.2.3 Butadiene ..................................................................................................... 6-25

6.2.4 Benzene ....................................................................................................... 6-32

6.2.5 para-Xylene .................................................................................................. 6-46

6.2.6 Toluene ........................................................................................................ 6-55

6.2.7 Mixed Xylenes .............................................................................................. 6-57


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Section 4 Methodology

The evaluations of conventional technology are based on Nexant’s in-house information regarding

process technology, augmented by contacts with licensors, engineering contractors, and other experts in

the industry. Analyses of emerging technologies are built up from reviews of patents, public domain

information, and discussions with the technology development companies and engineering contractors.

Nexant utilizes proprietary and commercial state-of-the-art software tools to develop the technology and

economic estimates. These are well established engineering tools in the process chemical industry.

Commercial information and forecasts are developed from Nexant’s extensive in-house databases,

augmented with selected regional fieldwork. Market projections are developed based on Nexant’s in-

house modeling systems and experience.


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Section 5 Nexant’s Experience

5.1 BACKGROUND

Nexant was established on January 1, 2000 and prior to that date, the staff of Nexant operated as a

separate consulting group within a major engineering company. Nexant is now an independent company

owned by a number of investors. Nexant acquired ChemSystems, Inc. on September 1, 2001, and the

combined entity (“Nexant”) now has access to even more enriched and extensive experience and

resources, offering services that include:

Master planning/feasibility studies

Technology evaluation

Techno-economic and commercial analyses

Financial evaluation (cashflow modeling, etc.)

Benchmarking

Monitoring project implementation

Nexant is very well qualified to undertake the technical, commercial, economic, and financial evaluations,

from its own offices, without the need to subcontract. Reflecting its extensive experience, and known for

its “out-of-the-box” thinking, Nexant has also received the honorable award of “Best Large Consultancy”

by the British Consultants and Construction Bureau. This award was contended by a number of

companies. Nexant was judged the winner for its outstanding contribution in developing a real-time, on-

line chemical industry simulator.

5.2 DESCRIPTION OF SERVICES

Nexant is a specialist, not a generalist company. Its area of expertise is the energy and process

industries, including oil refining, natural gas, petrochemicals, polymers, chemicals, pharmaceuticals, and

fertilizers. Nexant’s business has been built upon providing broad management consultancy services to

leading companies active in these industries, and also to banks, suppliers, governments and others

interested in these sectors. Nexant’s strengths lie in its combination of techno-economic, commercial,

and strategic capabilities. These core competencies are described below.


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5.2.1 Technology/Economics

From its foundation in chemical engineering and industrial chemistry, Nexant offers distinctive expertise in

process technology and economic analysis. Assignments may be performed on a separate, standalone

basis or as input to broader consulting engagements.

Services include:

Economic and financial analyses of projects or businesses

Valuation of assets or businesses

Technical audit of existing facilities

Project feasibility/planning

Technology innovation and assessment

Comparative/competitive technology audit and appraisal

Process design and cost estimation

Technology availability, screening, licensing arrangements

Contractor pre-qualification, evaluation and selection

Project management, including resident advisory services

Price, margin and profitability forecasting

This discipline is supported by comprehensive economics, cost, and price databases.

5.2.2 Commercial

Based upon a technical and commercial understanding of the industries we serve, Nexant supports

clients through a variety of market and commercial activities. As with our techno-economic work, these

commercial assignments may be performed on a stand-alone basis but are more normally an input to

broader consulting engagements.

Services include:

Feedstock and product market analysis

Marketing and market research

Supply/demand analysis and forecasting

Studies of trends and future markets

"Benchmarking" of costs and competitiveness

Medium- and long-range planning

The commercial discipline is supported by databases of global supply, demand and capacity

developments in all major petrochemicals.

5.2.2.1 Strategic Planning

Industry specific expertise and an understanding of world market forces distinguish Nexant's work in

Strategic Planning. Various innovative tools and methodologies tailored to the energy and process areas

are used to challenge conventional thinking. Nexant extends its traditional project team approach to


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engaging clients directly in the Strategic Planning process. Interactive client consultant relationships

promote consensus, a critical factor for successfully developing pragmatic, implementable solutions.

Services include:

Definition of corporate and business visions

Portfolio planning

Entry strategy evaluation

Diversification, acquisition, divestment studies

Competitive analysis and business positioning

Global competitiveness

Trade flow and impact studies

Strategic options, selection, and implementation


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5.3 ASSIGNMENTS UNDERTAKEN COVERING BIO-FEEDSTOCKS, BIOCHEMICALS, AND BIOFUELS

5.3.1 Multiclient Work

During the past ten years, Nexant's E&CC division has completed a number of major multisubscriber

studies. Selected multisubscriber studies which included coverage of biochemicals and biofeedstocks

include:

PERP Report 2012S9, Natural Gas to Liquids – A study of the commercial and developing

technologies of producing Fischer-Tropsch liquids from natural gas feedstocks and markets of the

synthetic products

PERP Report 09/10S12, Renewable Liquids as Steam Cracker Feedstocks – A study of

emerging renewable fuel technologies and yields from steam cracking renewable naphtha

Bio-Based Chemicals: Going Commercial – A survey of the emerging biotechnology,

processing technologies, announced project capacities, and a risk adjustment of these

announced capacities. This included coverage of commodity monomers and polymers, as well

as emerging polymers (e.g., succinic acid and/or 1,4-butanediol for polybutylene succinate)

PERP Report 09/10S4, Biobased Commodity Feedstocks – A study of the technology, and

economics of producing commodity biofeedstocks

PERP Report 06/07S11, “Green” Polyethylene – A study of the emerging biotechnology,

processing technologies and economics of producing and recovering polyethylene, and a

comparison to conventional routes

PERP Report 07/08S11, “Green” Polypropylene – A study of the emerging biotechnology,

processing technologies and economics of producing and recovering polypropylene, and a

comparison to conventional routes

PERP Report 06/07S4, Glycerin Conversion to Propylene Glycol – A study of the emerging

biotechnology, processing technologies and economics of producing and recovering propylene

glycol from glycerine, and a comparison to conventional routes

PERP Report 08/09S11, Plants as Plants (PHAs) – A study of the emerging biotechnology,

processing technologies and economics of producing and recovering polyhydroxyalkanoates

(PHAs), as an alternative to conventional polyesters

PERP Report 00/01S3, Biotech Route to Lactic Acid/Polylactic Acid – A study of emerging

biotech routes to lactic acid and polylactic acid. Processing technologies, and economics of

producing and recovering lactic acid and polylactic acid are investigated

PERP Report 08/09S7, “Green” Acetyls – A study of emerging biotech routes to acetic

chemistry. Processing technologies, and economics of producing and recovering acetates are

investigated

PERP Report 09/10S8, “Green” Glycols and Polyols – A study of emerging biotech routes to

glycols and polyols (e.g., propylene glycol and sorbitol). Processing technologies, and economics

of producing and recovering glycols and polyols are investigated

Plants to Plastics – A study of the emerging biotechnology, processing technologies and

economics of producing and recovering commodity polymers such as polyethylene,

polypropylene, polyethylene terephthalate, and others as well as a comparison to conventional

routes


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Bio-Acrylic Acid and Derivatives – A study of the emerging biotechnology, processing

technologies and economics of producing and recovering bio-acrylic acid as well as a comparison

to conventional routes

Biotransformation Routes to Specialty Chemicals – Includes consideration of conversions of natural oils, fatty acids, fatty acid esters, fatty alcohols and fatty amines, and fermentation technologies and commercial overviews of many bio-based product markets

Nexant’s E&CC division has also completed a number of definitive studies on specific regions. These

studies have analyzed the business structure and opportunities for many of the chemicals covered in this

proposed study within the context of a changing economic environment. In addition to these studies,

Nexant’s E&CC division maintains a global commercial and technoeconomic database covering the

principal petrochemicals, intermediates, and polymers.

5.3.2 Single Client Studies

Selected single client studies which included coverage of biochemicals:

Multiple Technoeconomic Due Diligences – In advance of IPOs, Nexant performed

comprehensive technoeconomic analysis, including technology and markets. In such capacities,

Nexant has investigated and evaluated multiple conversion technologies, including cellulose

hydrolysis as well as thermochemical platforms for products from biomass

Multiple Technoeconomic Due Diligences – In advance of IPOs, Nexant performed

comprehensive technoeconomic analysis, including technology and markets. In such capacities,

Nexant has investigated and evaluated multiple product platforms, including algae based,

isoprenoid based product platforms

“Forest Refinery” Industry Evaluation - A U.S. national laboratory retained Nexant to assess

the technical and economic feasibility of a forest refinery designed to manufacture chemical

products from trees. The analysis screened a variety of biomass conversion technologies and

compared the production costs and energy consumption levels of each route to conventional

routes. Processes evaluated included fermentation, lignocellulose separation, lignin conversion

and gasification

Hunest Biorefinery Market Study - A project to revitalize a former Nitrokemia site in Hungary to

convert circa 200,000 tons per year of biomass into biopolymers, green solvents, and

intermediates. Nexant was engaged to undertake a market study of the commercial opportunities

for the project covering mainly pricing and the European market in order to guide the company in

developing its marketing strategy for the project.

Biochemical Opportunities in the United Kingdom - The National Non Foods Crops Centre

(NNFCC) has engaged Nexant to provide a focused analysis of renewable chemical opportunities

in the United Kingdom. The project was in part undertaken to gain a better understanding of the

opportunities for the United Kingdom to integrate renewable feedstocks into its chemical

manufacturing base. Nexant’s analysis was used to support the development of research and

development programs in both academia and industry organizations

Fermentation Routes to Adipic Acid: Petrochemical Competitive Benchmarking - For a

developer of fermentation routes to Adipic Acid (nylon intermediate), this study was to provide

analyses of conventional petrochemical routes, issues over nitric oxide emissions, and other

critical factors


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Financial Due Diligence - Analysis of Myriant Technologies’ renewable route to succinic acid

and potentially to adipic acid and other valuable green chemical intermediates. Examines

technology, intellectual property position, market potential, and competitor positioning

Sustainability and Plastics - Client was interested in understanding how increased awareness

of environmental issues and of the related initiatives might impact the polyolefins business in the

future and asked Nexant to provide a high level review of the following conventional polymer

displacement threats to conventional polymers: biodegradable polymers, bio-based polymers,

and recycling. The main focus was on polypropylene in North America, but wider issues were

also considered

Fermentation Routes to Bio-Succinic Acid/BDO – In a series of studies for a number of

different stakeholders, Nexant evaluated technologies, markets, and competition for fermentation

routes being developed for this potential raw material for polybutylsuccinate, 1,4-butanediol, and

other chemicals derivatives, and compared to petrochemical routes

PLA – For this key renewable, biodegradable commodity polymer, polylactic acid, or polylactide

(PLA) made from corn or sugar substrates, Nexant evaluated production technologies and

markets for a number of different stakeholders

Chemicals by Depolymerization of PHAs: Petrochemical Competitive Benchmarking – For

a developer of fermentation and crop-based PHA (polyhydroxyalkanoates) production that

exploring the feasibility of depolymerizing these natural polyesters to make commercial chemicals

(monomers, intermediates, solvents, etc.) , Nexant provided analysis of the same C3 and C4

chemicals production via petrochemical routes, and assisted in developing process and cost

models of the speculative depolymerization routes

Hydrocarbon Fuels and Chemicals via Sugar Fermentation: Process Development

Assistance – For a biotech developer of sugar fermentation routes to C5 hydrocarbon-based

(isoprene homologues) for vehicle fuels, chemical intermediates and specialty chemicals, this

was a series of three projects to provide assistance, including process flowsheet and capex

review, troubleshooting, and cost reduction strategies, product recovery studies, and process

safety analyses

Advanced Biobutanol Process Technology, Economic, and Market Due Diligence - For a

prospective investor in this technology development, Nexant performed a broad-based feasibility

study/due diligence with the full cooperation of the developer providing R&D data and existing

business models for critique. Butanol was examined for its proposed fuel potential as well as for

its large existing market as a solvent and chemical feedstock. The economics of the incumbent

petrochemical route was compared

Biopolymers for Beverage and Food Packaging – For a U.S.-based, leading, multinational

beverage and food company, Nexant performed a study of the technical and economic feasibility

of using, and issues around, selected bio-based polymers for packaging in the future, including

PLAs, PHAs, green polyethylene, and others. For this, evaluated and compared three radically

different emerging routes to green p-xylene production for feeding production of green PTA to

react with green MEG to make 100 percent green PET bottle (and fiber) resin

Bioethylene for Beverage and Food Packaging – For another U.S.-based, leading,

multinational beverage and food company, Nexant performed a study of the technical and

economic feasibility of using, and issues around, green polyethylene. For this, Nexant evaluated

and compared green MEG production for PET bottle (and fiber) resin


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Biopolymer Value Chain – Investigate renewable feedstocks for biopolymers, biopolymer

compounding, and polylactide

Fermentation Propanol to Green Propylene (Confidential) - This report identifies discusses

four routes to producing propylene from renewable feedstock (corn, sugarcane, and glycerine).

Bio-propylene, bio-based chemicals, biological route, biotechnology, genetically modified

organism (GMO), bacteria are included in the study

Chemicals from Corn - This was a broad-based study for the National Corn Growers

Association (NCGA), funded by the U.S. DOE, to identify and screen chemicals that could be

feasibly produced from corn. The study considered a wide range of potential sugars, and

fermentation-derived acids, alcohols, and other building blocks, but emphasized fuel ethanol

derivatives, including basic petrochemicals, solvents, intermediates and specialties, and

application of the Reactive Distillation technology sponsored by the NCGA. The basic economics

of ethanol production and potential improvements, economies of scale, logistics, and other

production and value chain issues, are addressed in the study


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Section 6 Contact Details

6.1 CONTACT DETAILS

Nexant, Inc.

44 South Broadway, 4th Floor

White Plains, NY 10601-4425

U.S.A.

Attn: Mr. Steven R. Slome

Consultant

Tel: + 1-914-609-0379

Fax: + 1-914-609-0399

e-mail: [email protected]

or

Attn: Mr. Joseph Campana

Analyst

Tel: + 1-914-609-0310

Fax: + 1-914-609-0399


or

Attn: Heidi Junker Coleman

Multiclient Programs Administrator

Tel: + 1-914-609-0381

Fax: + 1-914-609-0399


mailto:[email protected]



Special Reports Bio-Naphtha: Missing Link to the "Green" Chemicals Value Chain

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Nexant, Inc.

San Francisco

New York

Houston

Washington

London

Frankfurt

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Singapore

Bangkok

Shanghai

Kuala Lumpur

www.nexant.com

www.nexantthinking.com

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