Biomass Beyond Fuels and Energy

BiomassBeyond Fuels and EnergyGrowing the Margins:Energy Conservation and Generation forFarms and Food ProcessorsApril 13, 2007Dr. Gord SurgeonerOntario Agri-Food Technologies

• Today’s oil and natural gas deliverhundreds of chemicals and plastics.• Today, biomass is essentially ethanol,biodiesel and some pyrolysis for energy.• We are beginning the process of followingfossil fuels to hundreds of compounds frombiomass.

Driven by………#1 Performance#2 Supply chain#3 Price#4 Green (nice…..but!)

The Globe and MailMay 22, 2006

Guelph MercuryMarch 9, 2007

Bio-Automotive Parts and Life CycleAdvantageRenewablefeedstockTuber1) Farmers/Breeders22.3%2) Chemical/PlasticsManufacturerBiotechnologyProductsStarch PolymerPolylactidesPHAPolyamidesRubberPU/ProteinLeaf77.3%SeparationEnzymaticconversionChemical synthesisSeed3) Part Supplier/OEM4) Recycler/ComposterEnergy or RecyclingAuto partsSource: Dr. Mohini SainUniversity of TorontoCentre for Biocomposites and Biomaterials Processing

Bioplastics Innovation andCommercialization DriveBiotechnologically produced high volumecommercial or potential commercial polymers:Polylactide (PLA)1,3-propanediol (PDO) Dupont SoronaPolyhydroxy alkonates/PHAsThermoplastics starchSoy Polyol-PU/Soy resinSource: Dr. Mohini SainUniversity of TorontoCentre for Biocomposites and Biomaterials Processing

Soy-Polyol Foam in AutomotivePromise with Competitive Technologies• Price Neutral• Improved properties oversynthetic polyol• Adaptable with minimum• adjustment of existing process• 100% Polyol replacement• possibleBrookestoneCargill, Soy Polyurethane Systems, Dow and 6 others;BASF?Source: Dr. Mohini SainUniversity of TorontoCentre for Biocomposites and Biomaterials Processing

Thermoplastic Starch in AutomotiveRapidly Replacing PS Foam in Auto-part Packaging• Fastest Growing• Least expensive biopolymerPotato, Corn• Stable price vs Oil (low cost)• Proven technology and Processversatility;• Poor performanceBIOTECH ® - Germany., COHPOL - Finland,ECOPLAST ® Holland, VEGEMAT ® France; US, Mich. State;Canada, UofT Innovation

Significant Automotive PartTechnologies with Renewables• PP- Natural Fibre Compression MoldingR & S Technologies, Germany; Flaxform,Johnson Control, USA• Resin Transfer MoldingUnderbody Panel - Reiter, GermanyEU$ = 3.0/kg• PU Foamed NF parts- MollarTech,Germany• Injection molded interiors parts-ReiterGermany, Toyota, JapanFoamSource: Dr. Mohini SainUniversity of TorontoCentre for Biocomposites and Biomaterials Processing

Technology in AutomotiveSINGLE POLYMER TECHNOLOGYInitiative to Encourage All Interior Single PolymerTechnology to Replace Glass & Multi-Plastics Parts• Single Polymer Sandwich Technology(Oriented Fibre Core – Top Sheet)• LFTP – Long Fibre PP Technology• Stretched Foamed- Co-extrusionTechnologyPP, Polyester, Nylon, PUSource: Dr. Mohini SainUniversity of TorontoCentre for Biocomposites and Biomaterials Processing

Poly Lactic Acid in AutomotiveExisting Technology: Limited Scope• A biodegradablethermoplastic• Functional properties matchpetroleum plasticsCornAPPLICATIONS: Tire Cover,Carpet, Antenna• High Price• Poor durabilityToyota Tire CoverCargill-USA, - Apack Germany/Fortum Oyj.Finland,Mitsui Chemicals-Japan, Brimingham Polymers USA/Phusi FranceSource: Dr. Mohini SainUniversity of TorontoCentre for Biocomposites and Biomaterials Processing

PHAs in AutomotiveOutlook - More Promising thanPLA• Exceeds PP Properties• Price Claimed < $1.00/lb• Projected Production 2008• No Commercial Availability• Small Player(R&D + Investment Risk)Corn & DiverseH 3C H OGrass*On OMetabolix to ADM, (USA); Procter & Gample Tech to KanekaCorporation (Japan)Source: Metabolix.com

Emergence of “Green Plastics”600000500000Forecast 2010 consumption“4 million ton”ton400000300000200000100000EuropeWorldForecast 2015 Market“US $50 billion”01995 2000 2005 2007Forecast 2020Toyota PLA $38 BillionAt present Europe share 40%of global bioplastics consumptionNorocon Innovation Consulting Kaeb, Denmark.The Bioplastics Industry in EuropeSource: Biopolymers from crops:Proceedings of the Australian Agronomy Conference

Soy Based Plastics in AutomotiveSoy-Polyol- Promise with Competitive TechnologiesSeven Technologies CommercializedMost Common:• Epoxidation of Soy-oil &hydrolysis to Polyol (Less capital,high operating)• Hydroformylation Process (highcapital, low operating)• Ozonolysis (Complex, high• investment, low capital)Cargill, Dow, Soy Polyurethane Systems, and 6 othersSource: Dr. Mohini SainUniversity of TorontoCentre for Biocomposites and Biomaterials Processing

100% Renewable PartManufacturing in North America,Europe and JapanJohn-Deere:Hay Baler Side PanelSoy-based ResinJohnson Control100% RenewableDoor PanelToyota FloorMat, 100%RenewableSource: Dr. Mohini SainUniversity of TorontoCentre for Biocomposites and Biomaterials Processing

Toyota’s s Green Car DriveToyota – A Global Model (Sweet Potato)Source:www.toyota.org

The OCVCI was Established toAccelerate Innovation• Vision• To increase competitiveness by;• - working together to identify common issues• - to develop synergies across industries• - to bridge the gap between bio and syntheticchemistry- to improve economic and environmentalsustainability• Make Ontario a global leader ininnovative, environmentallysustainable, chemical products,technologies and processes.

Serving The Chemical, Life Sciences, and Laboratory WorldsScience & TechnologyAugust 21, 2006Volume 84, Number 34p. 47Biorefinery Gets Ready To Deliver The GoodsItalian levulinic acid facility is first to make targetedbiomass-based based chemical feedstocksSteve RitterIt's widely anticipated that within a few decades the world's crude oil andnatural gas supplies will no longer be sufficient to meet global needs fortransportation, energy, and chemical products.One primary solution is the development of biorefineries—facilities thatuse chemical or biological processes to convert sugars, starch, orcellulose from dedicated crops, agricultural residues, or municipal wasteinto basic chemicals that in turn can be refined to make fuels, plastics,agricultural chemicals, and more.Bioethanol, biodiesel, and biomass-derived plastics have already hit themarketplace. Now, it's basic chemical feedstocks' turn to go green.

• Delta-amino levulinic acid (DALA) - a biodegradable herbicide (about 200-300m lb/yr at $2-3 / lb).• Diphenolic acid (DPA) - which can be used as a monomer forpolycarbonates and epoxy resins; used as a component in protective anddecorative finishes; or bromated to create a fire retardant andenvironmentally friendly marine coating. Viewed as a replacement forbisphenol A in the production of polycarbonates (about 4b lb/yr at$2.40/lb).• Methyletrahydrofuran (MTHF) - a high lubricity fuel additive for lowsulphur• 1,4-pentenediol - which could be used for the production of newpolyesters• b-acetylacyrilic acid - which could be used in the production of acrylicpolymers (about 2.3b lb/yr at $1.30/lb)• Succinic acid and its derivatives (another top 12 chemical building block)which can be used to derive:• Succinate salts used to produce deicing agents and its esters can beused in solvents and paints• Pyrrolidinones - used as solvents, industrial cleaners, surfactants,pharmaceuticals, crop protection intermediates• Polyvinyl pyrrolidinine (PVP) - used in pharmaceuticals, cosmetics,toiletries, textiles, paper, beverages and detergents• 1,4-butanediol - a polymer intermediate• Tetrahydrofuran - a major solvent• Itaconic acid (another top 12 building block) an additive in polymericfibre blends to add toughness, etc.

Company Strategy(Value Expansion)• Need for low VOC paints• Lorama Chemicals identifies• Raw material waxy corn starch• Lorama – 1,100 customers/partners, qualitycontrol, manufacturing• Corn Producers / CanAdapt / Yes• Fund project 2% gross sales 2 x• Supply - NaCan Better genetics- Casco Better IP system

PSA Composites biocomposite bridgeMillbrook, OntarioOctober, 2006

DynaMotive West Lorne BioOilCo-Generation Project – January, 2005

Dynamotive investing $20 Million in BioOil Plant andresearch facilities in Ontario, Canada31.oct.06Canada News-WireDynamotive http://www.newswire.ca/en/releases/archive/October2006/31/c6659.htmlVancouver, British Columbia - Dynamotive (OTCBB:DYMTF) announced planned investments, the sitelocation for its new flagship 200 tonnes per day BioOil plant in Guelph, Ontario, and a product researchlaboratory in the Waterloo, Ontario area.Dynamotive, together with its development partners, plans to invest $20 million in these Ontario initiativesthrough 2007 with further investmentsexpected to follow. Funding for the investment program has been secured from previously announcedsources.The Guelph plant is being developed with MegaCity Recycling Inc. and is about a 45-minute drive west ofToronto. It will operate under the nameEvolution Biofuels Inc.Dynamotive will have a minority ownership position in Evolution Biofuels and will be leasing the pyrolysisunit to the Company. Dynamotive President and CEO, Andrew Kingston, said "Work on the 22 acre sitestarted on October 7th. Equipment deliveries to the site are expected early in November with all majorcomponents to be on site by year end.The plant will incorporate important technological advances we gained through operating the West Lorneplant, and we expect it to be producing BioOil in Q1 2007 as it ramps up through its commissioning process."The site has the capacity for up to four plants as well as administrative and engineering offices and,potentially, Dynamotive's technical research and development function. We are currently considering themove of our two existing pilot and demonstration plants to the site. "Investment by Dynamotive and itspartners on site acquisition, first plant development and related infrastructure is expected to reach$18,500,000. Dynamotive intends, through leasing arrangements to be concluded, to recover its investmentover a five year period and maintain an equity position in Evolution Biofuels.“….

Environment Bill of Rightsrequest for NanticokeCounty/District/Region: Regional Municipality Of Haldimand-NorfolkDescription:Proposal to amend current Certificate of Approval No.8-2092-90-977 as follows;installation of biomass storage and conveying facility to allow for the provision ofco-firing biomass up to 20% of the unit's input energy (20% of the maximumcontinuous load), in three of the eight existing 500 MW coal fired powergenerating units.Biomass sources include:- agricultural based residual products such as wheat shorts;- food based by products such as distillers grain;- residual forestry derived products such as wood chips and pellets;- recovered clean lumber, not including pressure treated or coated materials,and- installation of biomass storage and conveying facility including two (2) storagesilos, each equipped with a baghouse unit to control particulate emissions, andsurge hoppers and grinding mills required to load and off-load the storage silos.

Nanticoke Generating StationHaldimand County, Ontario

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