NNFCC Consultancy Overview

NNFCC
NNFCC: The Bioeconomy Consultants
Bridging the Bioeconomy Innovation Gap
The Bio Base NWE Project
Adrian Higson PhD
Head of Biorefining
12 June 2012

NNFCC
Company Vision
We view bio-based technologies as key
components of the low carbon economy
delivering economic, social and environmental
benefits.
We believe the bioeconomy will create
sustainable business opportunities for
feedstock suppliers, technology and project
developers, manufacturers and investors.
A specialist ‘not for profit’ Bioeconomy consultancy
Company Mission
To provide clients with a holistic view of feedstock, technology, policy and market
development across the bioeconomy, enabling them to make informed business
decisions and develop sustainable business strategies.

NNFCC
Services
• Future market analysis
• Feedstock logistics planning
• Sustainability strategy development
• Technology evaluation and due diligence
• Project feasibility assessment
• Policy and regulatory support
• Network & Facilitation
Clients & Partners
• Multinationals & SMEs
• Public Organisations
• Government
• Research Institutes
• Universities
• Transnational Collaborations
• European Framework Projects
Celebrating 10 years of Bioeconomy development

NNFCC
Bioeconomy value chains
Biomass
provision
Biomass
trading
Biomass
refining
Fuel
production
Fuel blend &
retail
Chemical
production
Chemical
industry
Biomass power
& heat
Chemical using
industry
Retailers
Pharmaceutical
industry
Food
ingredients
Food
industry
Retailers
Food & Feed
industry
Feed
ingredients
Feed
industry

NNFCC
EU Context
It includes agriculture, forestry, fisheries, food and pulp and paper production,
as well as parts of chemical, biotechnological and energy industries.
• is worth an estimated €2 trillion
• accounts for 22 million jobs
• 9% of total employment in the EU
Each euro invested in EU-funded bioeconomy research and innovation is
estimated to trigger €10 of value added in bioeconomy sectors by 2025.
EUROPEAN COMMISSION – PRESS RELEASE
Brussels, 13 February 2012
Commission proposes strategy for sustainable
bioeconomy in Europe

NNFCC
NNFCC: The Bioeconomy ConsultantsNNFCC: The Bioeconomy Consultants
Biobased Materials drivers & concerns
End of life options
Product performance
Technology development
Green branding & corporate sustainability
Production economics
Feedstock economics
Policy intervention & indirect effects
© NNFCC

NNFCC
0
50
100
150
200
250
300
Feb-93
Dec-93
Oct-94
Aug-95
Jun-96
Apr-97
Feb-98
Dec-98
Oct-99
Aug-00
Jun-01
Apr-02
Feb-03
Dec-03
Oct-04
Aug-05
Jun-06
Apr-07
Feb-08
Dec-08
Oct-09
Aug-10
Jun-11
Apr-12
Feb-13
Commodity Agricultural Raw Materials Index
- Monthly Price
Commodity Food Price Index - Monthly Price
Crude Oil (petroleum), Price index - Monthly
Price
Feedstock Pricing – A new normal
Source: International Monetary Fund
Priceindex,2005=100
The relative costs of crude oil, food basics and agricultural
materials have moved significantly over the last 20 years.

NNFCC
50 shades of green - Every generation now comes with a degree of
environmental consciousness
• Baby boomers (born 1946-1964)
– Silent Spring 1962
– Air quality, water quality
• Generation X (Baby busters) (born 1964-1977)
– Union Carbide and Chernobyl disasters.
– Exxon Valdez oil spill.
• Generation Y (Millennials) (born 1980’s through1990’s)
– Hurricane Katrina and An Inconvenient Truth
– BP Oil Spill in the Gulf of Mexico
– Awareness of the Great Pacific Garbage Patch
• Generation Z (today’s children)
– Recycling, solar panels, hybrid cars, energy saving light bulbs
Source: Jacquelyn Ottman: The new rules of Green Marketing

NNFCC
𝑃𝑟𝑖𝑐𝑒 =
𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡
𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡
𝑣𝑎𝑙𝑢𝑒 =
𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 + 𝑒𝑚𝑜𝑡𝑖𝑜𝑛𝑎𝑙 𝑏𝑒𝑛𝑒𝑓𝑖𝑡
𝑚𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑐𝑜𝑠𝑡 + 𝑝𝑠𝑦𝑐ℎ𝑖𝑐 𝑐𝑜𝑠𝑡
Business to Business
Business to Consumer
Green Premium? – Price vs value
Coca Cola Executive: “If Coca-Cola were to lose all of its
production-related assets in a disaster, the company would
survive. By contrast, if all consumers were to have a sudden
lapse of memory and forget everything related to Coca-Cola,
the company would go out of business.”

NNFCC
Ethylene Polyethylenes
Styrene
Monomer
Ethylene
Oxide/Glycol
EDC
Other
Polymers/Rubbers
Polyester
PVC
Alpha Olefins
PVA
Ethanol
60%
7%
14%
12%
7%
Drop in biobased plastics
PET Collaborative

NNFCC
Market expansion and development activity
Currently over 90 companies actively commercialising over 50
commodity or platform chemicals.
ADM
Am
yris/M
ichelin
Anellotech
Bio
Am
berBio
cald
ol
Bio
M
CN
Braskem
Butam
ax
CathayIndustrialBio
tech
Colb
olt
Technologies
DSM
DOW
Draths
DuPont
Eastm
anChem
icals
Glo
balBio
chem
Glo
balBio
energie
s
GlycosBiotechnolo
gie
s
GreenBio
lo
gics
GreencolTaiw
an
Corporatio
nGenom
atica
Gevo
Goodyear/Genencor
In
dia
Glycols
M
etabolicExplo
rer
M
yriantNatureworks
Novepha
Purac
Rennovia
Reverdia
(DSM
/Roquette)
Solvay
TM
O
OPX
Bio
Verdezyne
Vin
ythai
Virent
Zeachem
Methanol
Formic Acid
Ethanol
Ethylene
Ethylene Oxide
Ethylene Glycol (MEG)
Acetic Acid
Ethyl acetate
Epichlorohydrin
Acetone
isoPropanol
Propylene
Propylene Glycol
1,3-Propanediol
Lactic acid
Acrylic Acid
n-Butanol
iso-Butanol
iso-Butylene
Butadiene
Succinic acid
2,3-Butanediol
1,4-Butanediol
Tetrahydrofuran
Isoprene
Adipic acid
HMDA
Benzene
Toluene
Paraxylene
Terephthalic acid
Styrene
Companies working on bio-based chemicals
Bio-basedchemicals
Source: NNFCC
 Opportunities for bio-based C3
and C4 intermediates
 Niche opportunities in
compostable packaging
 Value adding opportunities in
co-polymer development

NNFCC
Bio-based materials – Novel or drop in?
Strengths
• Drop in – known targets and downstream products
• Novel – exploits attributes of biomass or biological
processing
Weaknesses
• Drop in – number of unit operations required
• Novel – requirement for product development
Opportunities
• Drop in - rapid route to market through existing
infrastructure and know how
• Novel – provides new or improved functionality
Threats
• Drop in – production never achieves cost
competitiveness
• Novel – immature supply chain and market
awareness
© NNFCC

NNFCC
The challenges
Technology
• Biomass crop
yields
• Biomass
composition
• Logistics
• Enzyme
development
• Fermentation
yields
• Novel products
Strategic
• Integration into
existing value
chains
• Financing
• Policy robustness
• Standards &
labels
• Public
procurement
Sustainability
• Direct land use
change
• Indirect land use
change
• Biodiversity
• Emission (land,
air, water)
• Social impacts
© NNFCC

NNFCC
Innovation - something original and new that "breaks in to" the
market or into society
Market
Finance
Technology/
Product
• Standards, labels and certification
• Product specific legislation
• Legislation related to biomass
• Encourage Green Public Procurement
• Research
• Development
• Demonstration
• Public
• Private
• Public/Private
£25M IB Catalyst

NNFCC
Project
Feedstock Supply
Market AccessTechnology
Open Innovation
 Supply agreements
 Co-development projects
 Off-take agreements
 Joint ventures
Good examples

NNFCC
BRIDGEPPP: The challenge, Overcoming the innovation Valley of
Death by bridging the gap from research to the marketplace.
The EU contributes €1 billion to the research and innovation program,
European industries have committed to another €2.8 billion
Building supply chains
Developing technology
Upgrading and building
demonstration and flagship
biorefineries
http://bridge2020.eu/

NNFCC
Bio Base NWE
Supporting the development of the bio-based economy
in North West Europe
• To aid companies, research centers and education centers of NWE to
network internationally
• Political support for the bio-based economy by giving SMEs a voice, and by
developing a common strategy
• To acquaint companies, research centers and education centers of NWE with
Bio Base Europe

NNFCC
Process demonstration and scale up

NNFCC
Bio Base NWE
Supporting the development of the bio-based economy
in North West Europe

NNFCC
Bio
economy
Feedstock
pricing &
volatility
Technology
Development
(performance
& cost)
Environmental
considerations
The bioeconomy will create
sustainable business opportunities
for feedstock suppliers, technology
and project developers,
manufacturers and investors.
Added ‘value’ markets provide
growth platform.
Feedstock economics drive toward
C4 commodity chemicals
Commercial development based
on collaborations
Summary
Biobased Economy Drivers

NNFCC
The NNFCC provides high quality, industry leading consultancy
for more information contact us
Email - enquiries@nnfcc.co.uk
+44 (0) 1904 435182
Follow us on Twitter @NNFCC
• Future Market Analysis
• Feedstock Logistics Planning
• Sustainability Strategy
Development
• Technology evaluation & associated
due diligence
• Project feasibility assessment
• Policy and regulatory support

NNFCC Consultancy Overview

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