Post on 25-Dec-2021
Commercial Development of
Cellulosic Ethanol
November 8th 2006
Mascoma Corporation Confidential
Mascoma Confidential, 2006 / 2
Mascoma Corporation
� Mission
– Mascoma's mission is to generate superior returns for its investors through continuously reducing the cost of manufacture of ethanol from cellulosic biomass
by application of world leading science in large-scale manufacturing operations.
� Strategy
– The company's overall strategy is to pursue both the development and
deployment of a suite of advanced technologies.
– Over time establish defensible IP for integration into production plants for rapid market expansion.
– Mascoma will be active in licensing and partnering as necessary to ensure freedom to operate across the cellulose ethanol value chain.
Mascoma Confidential, 2006 / 3
People-Unique knowledge & commitment to cellulose ethanol
Management
� Dr. Colin South Ph.D.; President– Executive with leadership experience in engineering, genetics, and marketing arenas.
Technologist with background in biomass ethanol. � Dr. Andrew Richard Ph.D.; Chief Technology Officer
– Experience in both biocatalyst and pretreatment development at a range of scales.Research
� Professor Lee Lynd; Dartmouth College; Founder, Chief Scientific Officer– Expert in the utilization of plant biomass for production of energy including leading research on
fundamental and biotechnological aspects of microbial cellulose utilization.� Professor Charles Wyman; University of Riverside, Founder, Chairman Mascoma SAB
– Leader in pretreatment research and enzymatic conversion processes.� Dr. David Hogsett Ph.D.; VP Research and Development
– Experience in the development and deployment of biological process into industrial environments. Technology leader in the field of microbial fermentation of cellulose to ethanol.
� Dr. Vineet Rajgarhia; – Senior scientist and science group leader with Cubist, Eastman Chemical, and Cargill Dow.
Engineering deployment
� Siva Sivasubramanian; – Experienced process design engineer with 20 years process design experience including VP
development with Aspen Tech.� Dr. Herve Garant
– 15 years bio-process engineering expertise, including design, start-up, and operation of biomass processing operations.
Mascoma Confidential, 2006 / 4
People - Scientific Advisory Board
� Leading expertise in metabolic engineering, biomass pretreatment, ethanol manufacture and plant design.
Area of expertiseCurrent positionMember
Metabolic and pathway engineering. Previously project leader at Genencor International Inc managing the 1, 3-propanediol project with Dupont de Nemours.
Metabolic Explorer
Chief scientific Officer
Professor at the INSA of Toulouse.
Dr. Philippe
Soucaille
Application of enzymes in enhancing pulp and fibre
properties Bioconversion of lignocellulosic residues to
Ethanol.
University of British Columbia
Dean - Faculty of Forestry NSERC
Industrial Senior Chair.
Prof. Jack Saddler
Biochemical engineering and applied biology relevant to processing cellulosic biomass
Dartmouth College
Professor of Engineering
Adjunct Professor of Biology
Prof. Lee Lynd
Ethanol manufacture, R&D management, and plant design.
Retired
Formerly VP R&D; Grain Processing
Corporation
Dr. Don Johnson
Biochemical Engineering, Biomass Conversion, Biobased Industrial Products.
Michigan State University
Professor
Prof. Bruce Dale
Protein engineering, metabolic engineering, directed evolution, biocatalysis
California Institute of Technology
Dick and Barbara Dickinson Prof.
Chem. Eng. and Biochem.
Prof. Frances Arnold
Physical and biological conversion of cellulosicbiomass to fuels and chemicals
University of Riverside:
Ford Motor Company Professor of
Chem. and Env. Eng.
Prof. Charles Wyman
(SAB Chairman)
Mascoma Confidential, 2006 / 5
People-Investors and Partners
Investors
� Khosla Ventures - Palo Alto, CA
� Flagship Ventures; Cambridge, MA
Board of Directors
� Doug Cameron - Khosla Ventures; Chief Science Officer
� Samir Kaul - Khosla Ventures; General Partner
� Jim Matheson – Flagship Ventures; General Partner
� Colin South – Mascoma
� Lee Lynd – Founder
� Charles Wyman – Founder
� Financing:
– $9MM Series A/A1 Financing from initial investors
Mascoma Confidential, 2006 / 6
Key questions
� Feedstock
– Short term• Wood, corn stover, Rice straw,
bagasse, corn fiber
– Longer term• High yield dedicated energy
crops
• Switchgrass, Miscanthus, Willow
� Process
– Pretreatment
– Hydrolysis
– Fermentation
� Markets
Miscanthus Hybrid Poplar Willow Switchgrass
Stover Wheat straw
Establishing Large Scale Cellulosic Ethanol
“It’s the COGS stupid”
Mascoma Confidential, 2006 / 7
Cellulosic Ethanol Process
Mascoma Confidential, 2006 / 8
Where To Start?
Compositions and processing challenges are similar
Cellu
lose (%
)
Hem
icellu
lose (%
)
Lig
nin
(%
)
Ash (%
)
Hardwood (Aspen) 45-50 29 16-20 0.2
Softwood (Spruce) 42 27 29 0.04
Corn Stover 34 30 19 3
Sugarcane Bagasse 38 25 15 3
Rice Straw 32 24 13 18
Rice Hulls 55 10 17 15
Switchgrass 31 25 18 4
Miscanthus 45 22 17 3
Consis
tent com
positio
n
Composition
Feedstock
Easily
aggre
gate
d
Rela
tively
inexpensiv
e
Depth
of lit
era
ture
Availa
ble
in c
om
merc
ial
quantities
Answer: Start with substrates which simplify your life.
Mascoma Confidential, 2006 / 9
It Doesn’t Matter Where You Start
DedicatedBiomass crops
Develo
ping
infrastr
ucture
Waste papersludge
Agreggatio
n,
Low volu
me, v
ariable
Low volume
Abrasive
Rice hulls
Collection
& storage issues
Stover
Hardwood
Eco
no
mic
via
bil
ity
As long as you start!
Operating experience &
technology development
Mascoma Confidential, 2006 / 10
Cost Reductions will be Driven by Experiential Learning
� Expect cellulose ethanol cost reduction to mimic Brazilian ethanol
� With much reduced timeline
1
10
100
0 12.5 25 37.5 50 62.5
Accumulated Ethanol Production (Billion Gallons)
1986
2002
1999
1996
1980
1990 1993
Gasoline (Rotterdam)
Market
Conditions
(J (J GoldembergGoldemberg, 2003), 2003)
Ethanol
Price (Brazil)
Experience Based Cost Reduction in Brazilian Cane Ethanol
Mascoma Confidential, 2006 / 11
Mascoma Deployment Focus
Focus on:
� Development of simple, operable, and robust solutions
– Phased entry with wood chips as initial feedstock
– Look to existing feedstock aggregation and logistics
– Establishing key operational performance
� Streamlined introduction of technology improvements
– Concurrent development of new technology improvements
– Value creation of defensible IP through microorganism development and process improvements
Mascoma Confidential, 2006 / 12
Layers of Influence on COGS
Pro
ce
ss
sim
plifi
ca
tio
n
Org
an
ism
de
ve
lop
me
nt
Op
era
tin
g
mo
de
ls
Fe
ed
sto
ck
de
ve
lop
me
nt
Applicable across COGS for
entire operation
Reduced operating costs
Improved capital utilisation
Reduced labor
Improved capital utilisation
Reduced consumables/waste
Improved yield
Decreased consumables/waste
Reduced labor
Improved capital utilisation
Reduced consumables/waste
Reduced yield
Design Focus
Point of COGS influenceLayers of influence on
Cost Of Goods
Process
operability
Technical
performance
Operational
excellence
Location
& P
art
ners
hip
s
Optim.
Mascoma Confidential, 2006 / 13
Mascoma Development Focus - Consolidated Bioprocessing
� Simplification of processing operations
– Reduced capital cost
– Simplification of operation and reduced downtime
– Use of complementary capital
� Reduced requirement for external cellulase production
– Reduced capital and operating costs
– Additional required enzymes tailored for application by specialist enzyme suppliers
� Reduced fermentation time
– Continuous hydrolysis and fermentation of pretreated biomass to high conversion in under 48hrs
– Reduced capital cost
– More robust operation
� Operating cost impact >30c/gallon ethanol derived from cellulose
Mascoma Confidential, 2006 / 14
Unique
Mascoma
Capability
and Focus
Process Simplification and Lowered Product Cost
CBPtSSF/tSSCF(elevated temperature)
SSF/SSCFSHF
Pentose
Fermentation
C. thermocellumT. SaccharolyticumYeast, Zymomonas mobilus, Enteric
bacteria (E. coli, Klebsiella oxytoca)
Hexose
Fermentation
Cellulose
Hydrolysis
Fungal Cellulase
Production
Processing Strategy for pretreated biomass
(each box represents a unit operation)
Process
SHF: Separate hydrolysis & fermentation SSF: Simultaneous saccharification & fermentation
SSCF: Simultaneous saccharification & co-fermentation CBP: Consolidated bioprocessing
Simplification Through Consolidation of Processing Operations
Mascoma Confidential, 2006 / 15
Gene knock-out in Thermoanaerobacterium saccharolyticum
0.6 Xylose or 0.5 Glucose
1 Pyruvate
ADP
ATP
NAD
NADH
Fd(ox)
Fd(red)CO2
AcetylCoA
Lactic
acid
Acetic acid
CoASH
NADHNAD
ADPATP
NADHCoASH
NAD
NADH2H+
H2
NAD, CoASHNADH
NAD
Acetaldehyde
1
2 3
5
4
6 7 8
XXXX
XXXX Ethanol
Stoichiometric ethanol production requires that all electrons from Fd(red)go to NADH and none to H2 formation
Mascoma Confidential, 2006 / 16
0
5
10
15
20
25
30
0 5 10 15 20Time (hr)
g/L, OD
0
10
20
30
40
50
60
0 5 10 15 20
OD
Xylose
EtOH
Lactic
Acetic
Time (hr)
EtOH
Xylose
OD
Lactic Acetic
g/L, OD
Wild Type, 25 g/L, with pH control ALK2, 50 g/L, no pH control
Double knock-out proof of concept - T. saccharolyticum*
•Organism grows vigorously in continuous culture with 12 hour residence time•Focus
•Development of this organism into commercial form•Apply techniques to C. thermocellum to develop CBP organism
Mascoma Confidential, 2006 / 17
Mascoma Priorities
� Maintain and expand Mascoma’s world class team
– Ensure a blend of management, technical, and deployment skills required to execute at the complexity of this business
– Investors with unequaled domain knowledge, contacts and capability
� Development of pilot/precommercial plants to allow
– Process refinement and development and experiential learning
– Operating basis for EPC guarantee
– Execute in low risk configuration and progressively reduce risk in subsequent plants/configurations
� Focus on the future
– Robustness/operability
– Long term COGS
� Maintain technological leadership in transition to CBP
– Launch of T. saccharolyticum and development of CBP organisms
Commercial Development of
Cellulosic Ethanol
November 8th 2006
Mascoma Corporation Confidential