2010 industrial biotechnology world congress verdezyne

Biobased Adipic Acid and Feedstock Freedom

Presented to the 2010 World Congress on Industrial Biotechnology

Washington DC, 30 June 2010

green chemistry by design

2

Green Chemistry by Design

MOTIVATION Reduce our dependency on petroleum and minimize our environmental footprint

CHALLENGEExploit chemistry and biology to achieve breakthroughs in how we manufacture everyday products from renewable resources

GOAL Develop economical fermentation processes for producing renewable fuels and chemicals

OPPORTUNITY ECONOMICALINTRODUCTION COMPETITIVE SUSTAINABLE DIFFERENTIATED

3

Technology & Business Snapshot

• Deep expertise in synthetic biology–

In-silico

pathway modeling & protein design algorithms

–

Metabolic engineering, strain and fermentation process development

• IP Estate

that protects our innovative technology

• Three Organisms in development:–

Improving ethanol productivity with “Yield Booster”

–

Fermenting pentose sugars from lignocellulosic biomass to ethanol

–

Producing adipic acid from multiple feedstocks

• Business strategy involves –

Development partnerships to accelerate time to market


4

Invista, 21%

Rhodia, 18%

Ascend, 13%BASF, 11%

Liaoyang Petrochemical,

6%

Radici, 5%

Bohui, 5%

Hongye, 5%

Asahi Kasei, 4%

Others, 13%

Adipic Acid: Compelling Biobased Chemical

Economic Opportunity

U.S. $2,375/te ($1.08/lb)

Gross Margin = 30-40%Biobased offers alternative to

Benzene price swings

“Without investment in innovation, branding and downstream pull it is unlikely that adipic polymer can sustain the premium it has historically enjoyed”

(PCI, 2010)

Large Growing Market

4.8 billion lb (2009)4.3% CAGR

Strong growth for light weight, temperature stable

plastics

Strong Market Pull

Green pull in automotive, textiles, carpets and

coatingsHigh market awareness of biobased developments


5

Future Need for Adipic Acid

Source: PCI

New production facilities needed in

2016

Opportunity to demonstrate and

entrench biobased production processes

while demand recovers

SpeculativeCapacity (ktes)

Existing / PlannedCapacity (ktes)

Demand (ktes)

Global Adipic Acid Supply / Demand Balance

0

500

1000

1500

2000

2500

3000

3500

4000

1990

1993

1996

1999

2002

2005

2008

2011

2014

2017

2020

Adipic lost 5 yrs demand

Speculative Capacity (ktes)

Existing / Planned Capacity (ktes)

Demand (ktes)


6

Competitive Yeast Production Platform

Starch

Biomass

OilsSucrose

Platform Improvements

C6

Engineering a novel glycolytic pathway for higher yield from hexose sugars

C5

Engineering a novel xylose isomerase enzyme for utilization of pentose sugars from biomass

Robust Yeast Platform• Robust strain with performance

attributes highly suited to industrial scale fermentation

• Combinatorial Pathway Engineering for rapid strain development

Adipic Acid

Feedstock Flexibility

• Engineering a proprietary metabolic pathway with sugars and oils as feed stocks


7

Platform Improvement Demo for Ethanol

Ethanol Development Partnership with Lallemand

Ethanol Technology

Starch

Cane

Sucrose

EtOH2.915 gal/bu

Increased Margin

$10.6 MMCapacity107 MM gal/yr

$0.098/gal

Dry Mill –

Base

Capacity 100 MM gal/yr

Capital $1.05/gal

Corn $3.68/bu

EtOH Yield 2.75 gal/bu

Ethanol $2.03/gal

Laboratory results have shown a 10% increase in ethanol yield and 30% increase in productivity

Laboratory results have shown a 10% increase in ethanol yield and 30% increase in productivity

CARLSBAD, CA. and MILWAUKEE, WI. —

April 7, 2010

–

Verdezyne, Inc., an industrial biotechnology company, and Lallemand Ethanol Technology, a global provider of yeast to the fuel ethanol industry, today announced they have

signed an agreement to develop and commercialize a genetically enhanced high-yield ethanol producing yeast.

C6Novel Glycolytic Pathway in YeastHigher Yields and

Specific Productivity from Hexose Sugars


8

Demonstration of Adipic from Renewable Oils

• Engineered a yeast that selectively produces adipic acid from mixed plant-based oil feedstocks

Formula Name PercentC6:0 Caproic 0.5C8:0 Caprylic 7.8C10:0 Capric 6.7C12:0 Lauric 47.5C14:0 Myristic 18.1C16:0 Palmitic 8.8C18:0 Stearic 2.6C20:0 Arachidic 0.1C18:1 Oleic 6.2C18:2 Linoleic 1.6

Fatty Acid Profile of Coconut Oil

C14 A

cidC12

Acid

C10 A

cidC8 A

cidC6 A

cidC14

Diac

idC12

Diac

idC10

Diac

idC8 D

iacid

ADIPIC A

CID

0102030405060708090

100

Perc

ent C

ompo

sitio

n

Acid/Diacid Profile Produced from Coconut Oil


9

Diversifying the Raw Material Base

• Oil / Naptha

/ Benzene relationship squeezes adipic acid margins

• Adipic acid producers carry the feedstock risk–

product demand does not move raw material prices

• Raw material prices are rising again …

A biobased process utilizing renewable sugars and oils is free from this volatility


10

Fermentation Process has less Capital Risk

• A new large scale chemical plant built today would not reach capacity for another 8 years.

• Fermentation facility provides a larger economic advantage at smaller scale

• A smaller scale fermentation plant could be built for a fraction of the volume risk

Smaller scale fermentation plants can be distributed regionally based on different feedstocks


11

Cost Advantaged Adipic Acid

“There is a huge growth potential for bio-based adipic acid and other products, as long as it is cost competitive.”

~ Adell

Plastics

Petrochemical ADA cost will range between $0.71-0.93/lb if petroleum exceeds $100/bbl

Cost Advantage 19% 32%

Comparative Economics Cash Cost of Manufacturing

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

Chemical Oxidation ofCyclohexane

Fermentation w/Soapstock

Fermentation w/Sucrose

$/lb

adi

pic

acid

OperatingUtilitiesRaw Materials

current process

Shut down economics apply if cash cost advantage > 15%


12

A Sustainability Advantage

Based on Cradle-to-gate analysis in The Brew Project, adjusted for Verdezyne fermentation assumptions

“TPU materials are not currently green, we are interested in renewable

alternatives.”

~

Nike

FootwearIndustry is listening to consumer aspiration for renewable products

“The industry wants biobased adipic to increase sustainable plastic use in cars.”

~ DuPont Engineering Polymers

AutomotiveIndustry is looking to light-weight plastics to improve fuel efficiency

Biobased Adipic Acid (ADA) offers significant GHG reduction compared to traditional petrochemical production

GHG Reduction Corn Sugar

Cane Paraffin

t CO2eq/t ADA 2.2 4.2 0.56

Carbon credits could further reduce the cost of biobased adipic acid by 14% (at $30/t CO2)


13

Green Differentiation Creates Market Pull

Carpet

Industrial

Plasticizers

Textile

A quarter

of US adults prefer eco-friendly products & are more loyal towards socially responsible companies –

2009 Ward’s Auto Interior Conference

Demand for sustainable carpet is increasing, because sustainability is now regarded as important –

In

Out Space

ApplicationsApplications ConsumersConsumers

When consumers have the choice, they tend to want to make the greener choice

-

Timberland

Adipic Acid

11%

10%

7%

25%

26%Polyurethane

10%

Engineered Plastics

Retailers in particular are pushing sustainability requirements back down their global supply chains

-

Sustainable Clothing Roadmap Initiative


2010 industrial biotechnology world congress verdezyne

Documents

Transcript of 2010 industrial biotechnology world congress verdezyne