BioIndustrial Partnership of Minnesota€¦ · • Roadmap Preview Focused on: »Statewide...
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BioIndustrial Partnership of Minnesota Northeast Minnesota CERTS Team August 15, 2011
Transcript of BioIndustrial Partnership of Minnesota€¦ · • Roadmap Preview Focused on: »Statewide...
BioIndustrial Partnership of Minnesota
Northeast Minnesota CERTS Team
August 15, 2011
Agenda • Introductions
• BioIndustrial Partnership Background Information
• Roadmap Preview Focused on:
»Statewide perspective on the opportunity
»Roles of Eco-Industrial Parks
Enriching Minnesota’s Future through the Biosciences
The BioIndustrial Partnership of Minnesota
• Independent, industry led project to sustain and grow Minnesota’s position as a global leader in the biofuels and biochemicals industry.
• Expected Outcomes
»Education of business and community leaders.
»Identify assets and market MN to external partners.
»Policy development. • Regulatory issues.
• Financial assistance.
Enriching Minnesota’s Future through the Biosciences
Food
Renewable Energy
Renewable Materials
Medical Devices
Biologics/Biopharma
Animal Health
The BioBusiness Alliance of Minnesota • Industry led, non-profit organization
• Partners with industry, academia and economic development groups to stimulate growth in Minnesota
• Supports growth in six targeted industries
Enriching Minnesota’s Future through the Biosciences
BBAM Progress- Assess, Plan, Implement
Enriching Minnesota’s Future through the Biosciences
STATEWIDE INDUSTRY
ASSESSMENT
Phase One: Assess
Phase Two: Plan
Phase Three: Implement
2005-2007 2007-2009 2009-Today
• LifeScience Alley
Largest state-based trade association focused on serving the life sciences industry.
Project Partners • Great Plains Institute
Enriching Minnesota’s Future through the Biosciences
Non-partisan, non-profit corporation based in Minneapolis Mission: to accelerate the transition to a sustainable, prosperous, low-carbon economy.
D2025 Recommendations
Renewable Materials
• Support market development efforts for the renewable materials value chain
»Renewable Materials Summit: Emerging Markets in the Upper Midwest
• Position Minnesota as a world leader in biorefinery operations
Enriching Minnesota’s Future through the Biosciences
Farmers/Foresters Biorefinery Chemical Industry-
Formulators End Product
Manufacturing Retail, End Uses
Liquid Fuels Markets
Enriching Minnesota’s Future through the Biosciences
Renewable Materials Value Chain Overview
Farmers/Foresters Chemical Production
Formulator/ Refinery
End Product Manufacturing
Retail, End Uses
BioIndustrial Partnership of MN Overview
BioIndustrials Partnership of MN Sponsors
Foundational Sponsors ($10,000+)
BioIndustrial Leader ($5,000-$9,999)
Premier Sponsor: $1,000-$4,999
Supporting Sponsor: $500-$999
Existing Biorefineries across Minnesota
Source: www.batchgeo.com
• Strength in forestry and agriculture resources
• Leveraged to value added opportunities
Cargill Resins Minnetonka
Natureworks est. 1997, ~100 emp.
Minnetonka
Segetis Est. 2006, 30 emp.
Golden Valley
Reluceo Est. 2009
Golden Valley
XL Terra Est. 2009
Golden Valley
Draths Est. 2005, 20 emp. Okemos, Michigan
Pine River Petrochemicals
Est. ~2009.
Gevo Est. 2009, 50 emp.
Luverne, MN and CO
Green Harvest Technologies Est. 2007, 1 emp.
Bloomington
Elevance Est. 2004, 45 emp.
Chicago, IL
Cargill BioH Est. 2003, 35 emp.
Plymouth
Cargill Industrial Oils
Minnetonka
Currently not located in Minnesota
1980s - 1990s
1997 - 2004
2005 - 2009
2009 - 2011 BioAmber
Est. 2009 Plymouth
Minnesota Biobased Materials Family Tree
Integrated Biorefinery
Food/ Feed
Forest Products
Chemicals and Plastics
Fuels
Example: C4 Platform (Bio Iso-butanol )
Enriching Minnesota’s Future through the Biosciences
Drop-in Fuels
• Iso-butanol • Jet Fuel • Diesel • Gasoline
Chemicals and
Plastics
• Solvents • Butyl Rubber • Adhesives • Plastics
Project Methodology • Q2 2011: Project Definition
» Assemble Core Team and develop clear understanding of industry. • Status: Done
• Q3 2011: Community Dialogue
» Share global trends and gather information . • Status: In Process
• Q4 2011: Publication
» Minnesota Roadmap for BioIndustrial Development: • Status: Development started. To be published in Q4 2011.
• 2012: Education and Implementation
» Act on strategic direction. • Status: Commencing in 2012 lasting several years.
Core Team- Industry Dominated
Outline: Roadmap for BioIndustrial Development • Biorefinery Development
• Trends • Opportunities • Strategic Direction
• Downstream Market Development » Chemicals » Fuels
• Trends • Opportunities • Strategic Direction
• Agricultural-based Supply Chain Partnerships • Trends • Opportunities • Strategic Direction
• Forest-based Supply Chain Partnerships • Trends • Opportunities • Strategic Direction
• Policy Analysis and Recommendations
End Product Manufacturing Retail, End Uses
Biorefinery
Farmers/Foresters
Farmers/Foresters
Biorefinery
Biorefinery
Chemical Industry- Formulators
Liquid Fuels Markets
Enriching Minnesota’s Future through the Biosciences
Downstream Market Development
Farmers/Foresters Biorefinery Chemical Industry-
Formulators End Product
Manufacturing Retail, End Uses
Liquid Fuels Markets
Fuels Market Development • Policy Driven- RFS2
»Specific attention must be paid for the types of biomass that qualify
• High performance fuels emerging
»Jet fuels
»Hydrocarbon fuels • Diesel Fuels
• Gasoline
• Military Driving Demand
»Several letters of intent to purchase fuel
Enriching Minnesota’s Future through the Biosciences
Downstream Market - Materials • AURI study released in August 2011
»Details the trends and barriers to economic opportunities with bioplastics.
• Increasing consumer interest
»Enhanced Properties: • Less toxic products for consumer health and the environment
• GHG Reduction
• Biodegradability
»Marketing Advantages • Green Profile
• Support for “American Made”
»Risk: GMO and Food v. Fuel Concerns
Renewable Materials: Target Markets
Enriching Minnesota’s Future through the Biosciences
• Packaging
• Building Products
• Health Care Products
• Consumer Products
• Automotive Parts
• Agriculture
• Foam Products
• Cleaning Products
The Renewable Materials Summit: Emerging Markets for the Upper Midwest. Moorhead, MN. April 27, 2011
Enriching Minnesota’s Future through the Biosciences
Biorefinery Development
Farmers/Foresters Bio-refinery Chemical Industry-
Foru End Product
Manufacturing Retail, End Uses
Fuels End Market
New targets for bio-based chemicals • Innovation is enabling new commodity chemicals
»New to the world chemicals • Segetis’ Javelin Technology
• Reluceo’s XLK Polymer
»Improved access and pricing to existing chemicals • Succinic Acid
• Glucaric Acid
• These products can depend on other innovations in the final products
»Risk for slower growth
»Without significant improvement in functionality, they may not have the critical mass to survive
Biofuels becoming biochemicals companies.
Source: Peter Keeling. Center For Biorenewable Chemicals
• Replace the entire barrel of oil to maximize value
Volatile and increasing fossil fuel prices 1990-2010:
• Oil alone:
»5.5%
• Sugar alone:
»5.3%
• Combined:
»4.6%
Source: ICIS; http://www.icis.com/Articles/2011/06/27/9471601/Bio-based-intermediates-will-reduce-price-volatility.html
Enriching Minnesota’s Future through the Biosciences
Agriculture Opportunities
Farmers/Foresters Biorefinery Chemical Industry-
Formulators End Product
Manufacturing Retail, End Uses
Liquid Fuels Markets
Trends for Agriculture Biorefineries • Transition from traditional to next generation
fuels/chemicals
»“De-commoditization” and “diversification”
»Tight margins because of volatility
»Cellulosic Feedstock Developments
Corn Prices: August 2008-July 2011
Source: www.wsj.com
Industry Development 101 • Leverage local and regional assets.
• Work from a strategy.
• Develop specific projects to define a common goal.
»This is where Eco-Industrial Parks play a critical role!
Next Steps and Deliverables • Publication of The Roadmap for BioIndustrial
Development by Q4 2011
• Begin implementation plan to be defined in roadmap:
»Continuing education to influence policy.
»Channel energy from core team to support specific projects.
»Market MN assets to external partners.
Enriching Minnesota’s Future through the Biosciences
Ongoing Participation • How to participate:
»Talk to others about the opportunity
»Lend your expertise to develop the strategy
»Attend other BioIndustrial Partnership of MN events
»Stay in touch!
• Sponsorships are available!
Enriching Minnesota’s Future through the Biosciences
Additional Information
Drop-in Petrochemical Opportunities
Volume too large and margins too low for effective renewable play
Best space for renewable play
Very fragmented, low fungibility and channel difficulties
The majority of chemical products come from a few platform supercommodities:
Methane – C1 Ethylene – C2 Propylene – C3 Butylene – C4 Benzene, Toluene, Xylene - BTX
Source: Luca Zullo, VerdeNero
