Renewable Chemical Platforms - BIO · 2014-03-26 · Renewable Chemical Platforms The 5 Must-Haves...

Renewable Chemical Platforms

The 5 Must-Haves to Commercialization

Marcel Lubben

Vice President Bio-based Chemicals & Materials, DSM

Pacific Rim Summit on Industrial Biotechnology and Bioenergy

San Diego, California

November 19, 2013

© 2013 DSM. All rights reserved

Page Page 1

Safe harbor statement

This presentation may contain forward-looking statements with respect to DSM’s

future (financial) performance and position. Such statements are based on current

expectations, estimates and projections of DSM and information currently available to

the company. DSM cautions readers that such statements involve certain risks and

uncertainties that are difficult to predict and therefore it should be understood that

many factors can cause actual performance and position to differ materially from

these statements. DSM has no obligation to update the statements contained in this

presentation, unless required by law.

The English language version of this document is leading.

A more comprehensive discussion of the risk factors affecting DSM’s business can be

found in the company’s latest Annual Report, which can be found on the company's

corporate website, www.dsm.com


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Our purpose is to create brighter lives for

people today and generations to come.

We connect our unique competences in

Life Sciences and Materials Sciences to

create solutions that nourish, protect

and improve performance.

2 © 2013 DSM. All rights reserved

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Royal DSM in 2012

Net Sales

(x billion)

€ 9,1

Employees

(worldwide)

23,500

Headquarters The Netherlands

Heerlen

Stocks

Euronext

Amsterdam

• Global science-based company active in health, nutrition and materials.

• Develops solutions that nourish, protect and improve performance.

• Leading position in Dow Jones Sustainability World Index

• 10% of our people are in R&D

• ~5% of the annual sales is invested in R&D

• Credit rating Single A


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Towards a sustainable world in 2050 DSM’s innovation agenda

Sustainable Manufacturing/

Raw Materials Security

Energy Security

Health Security

Food & Nutrition Security

More than

9 billion

society

in 2050


1000 3000 2000

Oil c

onsu

mpti

on

Living off the land Living off the land A brief

moment

in history

The Oil age will end long before we run out of oil

And while running out, it will become much more expensive

The End of an Era

9 billion people 1 billion people


Page

Feedstock Polymers Materials Raw

Materials End Users

Dual approach to bio-based materials

Resins and Engineering

plastics at DSM

- Create consumer awareness

- Capitalize on brand owners pull - Partnerships with bio-based companies

Application know-how

Customer intimacy

EO

L E

OL


Page

Green Revolution: Beyone™ 1

Bright Science

Windmill blades from Beyone™ 1 resin

Superior fatigue resistance using a

styrene-free, cobalt-free resin with 40 %

bio-content

Brighter Living Fast blade manufacturing: increased production output per mold Reduced Eco-footprint vs. epoxy Elimination of exposure during blade production Continued windmill operation

Trends Trend for sustainable energy generation

7 Page © 2013 DSM. All rights reserved

Page

Feedstock Polymers Materials Raw

Materials End Users

Dual approach to bio-based materials

Resins and Engineering

plastics at DSM

- Create consumer awareness

- Capitalize on brand owners pull - Partnerships with bio-based companies

Application know-how

Customer intimacy

EO

L E

OL

Bio-based

Chemicals at DSM

- Enable bio-based performance materials

- Partnerships & lead users

- Capitalize on

(ligno—)cellulosic

biomass

- partnerships

Conversion technology


Page Page

• Cellulosic Bioethanol

• Advanced Biodiesel

• Industrial Biogas

From Biotech to total Business Model Enabling & Accelerating the Bio-Based Economy

9

• Biosuccinium™ succinic acid

• Bio-based platform chemicals

Joint Ventures drive commercialization:

Bio-Energy Bio-based Chemicals

& Materials

DSM

Bio-Based Products

& Services

synergy


Utilizing the distinct and unique competencies of two leading companies

Reverdia: Powered by DSM + Roquette

• Top global starch and derivatives

producer

• Biorefinery experts

• €3 billion Euros turnover

• Member of UN Global Compact

• Biotechnology leader

• Annual net sales of around

€9 billion

• Top ranking Dow Jones

Sustainability Index

Experts on the

potential of biomass

Experts on using

microorganisms to convert

sugars from biomass into

chemicals/materials

Biomass Biosuccinium Materials OEM Brand

Owner

Consistent supply with growing production capacity

Status Supply Chain

• Current Biosuccinium™ capacity about 10 kta

• Expansion plans for next facility of about 50 kta by 2016

Biomass Biosuccinium Materials OEM Brand

Owner

Page Page

Key Success Factor #1:

Selection of winning feedstock

0

20

40

60

80

100

120

140

160

180

200

Brent Oil(ICE

London)

Raw CaneSugar

(NY#11)

Corn(CBOT)

Wood (USSoftwood)

Cellulose - ?

Sta

ndard

Devia

tion P

rice Index

1995-2011

2000-2011

Move away from

fossil raw materials

Food & Fuel &

Chemical building

blocks

Long-term price

stability of

biomass


Page Page


Being truly technology agnostic

Process Technology

Page 13

Materials Chemistry Biotechnology

Analysis & Characterization

Advanced Synthesis

DSM

Com

pete

nce A

reas

Avoid

technology

bias – get in

a position

to select

the best


Page Page


Match funding w/ business model

• Commercializing bio-based

chemicals is an investment

game with high stakes

• Who has the financial

muscle / investment

appetite to bring the

opportunity home?

• And using which business

model?

• Prerequisite: stable policy

(BRIDGE for EU)

Technology

developer

Implementer

& builder

Technology

demonstrator


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Patent & Know-How

Licensing

Scale

Lab

Proof

Pilot

Plant

Demo

Plant

Commercial Plant

Specialty Chemical

Commercial Plant

Bulk Chemical

Business

model

Funding requirement (million $)

0 20 1000 50 100 500

Licensing Proven

Technology

Licensing Turn-Key

Solutions Production & Sales

Specialty

Chemicals

Production & Sales

Bulk Chemicals

DSM Business Model in

Bio-Based Chemicals

Demo + License

For Bulk Chemicals

(e.g. adipic acid)

Production & Sales +

License for Specialty

Chemicals

(e.g. succinic acid)


Match funding w/ business model cont’d


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Key Success Factor #4

Partnership & alliances: mission critical!

DSM is reaching out for

partnerships and alliances:

• Industrial sugars

• Later stage bio-based

products

• Conversion technology

• Application & market

development


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Selected participations in bio-based partner companies

• Based in

Carlsbad, CA

• Cutting-edge bio-

technology

company with bio-

based di-acids

platform

• Focusing on adipic

acid and longer-

chain specialty di-

acids

• Based in

Minneapolis, MN

• Green chemistry

company with

Innovative bio-

based ketal

platform

• Focus on

innovative

plasticizers &

solvents

• Based in

Boston, MA

• Novomer is a new

materials company

that develops new

plastics and

polymers based on

ground-breaking

CO2 and CO

conversion

technology


http://www.novomer.com/?action=main

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Key Success Factor #5

De-risk, de-risk, de-risk

• Off-take risk

– Application development

– Long-term strategic

– Co-location

• Raw material / biomass volatility

– Long-term contracts

– Backward integration

– Hedging

• Value chain approach (incl. brand-

owners)

• Lobby(e.g. plastic degradable bags /EU)

• Subsidies / grants, loans, tax-incentives


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Recap & Conclusions


Winning feedstock

De-risk, de-risk Business model Partnerships

$

Conversion technology

Renewable Chemical Platforms - BIO · 2014-03-26 · Renewable Chemical Platforms The 5 Must-Haves...

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