Industry Perspectives

on New & Emerging Markets

Eric Bober – Director, Strategy – Biorenewables

Nexant, Inc.

Prepared for:

5th International Bioenergy Conference and Exhibition

Prince George, BC

June 14, 2012

2 2

Agenda

Growing the Bioeconomy in new & emerging markets

Key drivers

Main issues

Industry perspectives

3 3

Nexant – who we are

Formed January 1, 2000; core from Bechtel’s energy consulting unit, acquired ChemSystems (founded in 1964)

21 offices globally with ~600 professionals, HQ San Francisco

Consulting: 1,700+ assignments completed in 70+ countries

Named to 2011 Global Cleantech 100, the top 100 private companies in clean technology – companies that are best positioned to solve tomorrow’s clean technology challenges

Red Herring, the global technology business magazine, recognized Nexant as one of the top 100 privately-held companies in North America in 2008

4 4

Nexant – illustrative renewables engagements in

new & emerging markets

1. Acid hydrolysis of lignocellulose to specialty biochems

• Technical and market due/diligence

2. Enzymatic hydrolysis of biomass to specialty biochems

• Demo in Europe on ethanol, commercialization in emerging

markets in specialty biochemicals

3. Biofuels in Asia – analysis of sustainability options

• Comprehensive, unbiased analysis of positive and negative

impacts in the life cycle of biofuels development, distribution,

and use, with focus on China, India, Indonesia, Malaysia, the

Philippines, Thailand, and Vietnam Continued on following page . . .

5 5

Nexant – illustrative renewables engagements in

new & emerging markets (continued)

4. Brazil’s Biofuels Industry: Outlook for a Global Leader

• Focuses on Brazil and examines the current, emerging, and

potential future technologies to produce biofuels, considering

key elements of the value chain, including feedstocks, logistics,

and processing, and emphasizing techno-economic modeling.

6 6

From an industry perspective – what’s it all about?

Key Drivers

Feedstock supply

Green/environmental

$$$

7 7

Main issues of deployment

Proximity to feedstocks (accessible, available, domestic)

Hospitality (take what they give you)

Access to markets (tie into infrastructure)

8 8

Why new & emerging markets?

0

2

4

6

8

10

12

14

0

500

1000

1500

0

2

4

6

8

10

12

14

0

500

1000

15000

2

4

6

8

10

12

14

0

500

1000

1500

0

2

4

6

8

10

12

14

0

500

1000

1500

0

2

4

6

8

10

12

14

0

500

1000

1500

0

2

4

6

8

10

12

14

0

500

1000

1500

0

2

4

6

8

10

12

14

0

500

1000

1500

Population and forecast GDP growth are attractive relative

to mature markets

= Population = GDP growth forecast

9 9

What’s happening: Biofuels – starting from a

modest base

Global Biofuels Production, 2011

North America

56%

EU 12%

Brazil 22%

Other 10%

10

What’s happening: Biochemicals – firm projects to

2015

Continued on following page . . .

Company Product Location

Capacity,

kt per yr Startup Comments

NatureWorks PLA Blair, NE, USA 140 Operating

Thailand 140 2015

DuPont PTT US 100 Operating (Estimate)

Braskem PE Brazil 200 Operating Expansions under development

PP Brazil 30 2013 Further capacity under development

Dow/Mitsui PE Brazil 350 2015 Only the first phase

Chemtex Sugars Crescentino, Italy 180 2012

Genomatica 1,4 BDO Italy 16 2012

BioAmber Succinic Acid Sarnia Ontario, Can 17 2013 PBS

Thailand 65 2014 PBS

N. Amer. or Brazil 65 2014 PBS

Elevance 9-decenoic acid Indonesia 180 2012 2nd plant planned Mississippi

11

What’s happening: Biochemicals – firm projects to

2015 (continued)

Company Product Location

Capacity,

kt per yr Startup Comments

Myriant Succinic Acid Lake Providence, LA 15 2013 PBS

Reverdia Succinic Acid

Cassano Spinola,

Italy 10 2012

BASF/Purac Succinic Acid Barcelona, Spain 25 2012

Rennovia Adipic Acid TBD 180 2015

OPXBio Acrylic Acid TBD 50 2015

Avantium FDCA Geleen, Netherlands 100 2015 Coke Development Partner

Anellotech BTX TBD 26 2014

Virent pX TBD 200 2015 Announced 100 to 300

Gevo/Toray pX TBD 50 2014 Nexant capacity estimate

Solvay PVC Brazil 60 ? Equipment ordered

Greentol MEG Taiwan 124 Operating +100 in 2012

TOTAL 2,625

12 12

Why biochemicals?

Because they:

• Could cost less*

• Could sell for same or more *

• Could meet customer needs

* in some cases

13

Why biochemicals? Because they can cost less

0

500

1000

1500

2000

2500

Integrated Naphthato PX

Anellotech Gevo Virent (ex-situ H ) Virent (in-situ H )

para

-Xyl

ene

Cos

t of P

rodu

ctio

n, $

/T

Net Raw Materials Total Utilities Total Direct Fixed Cost

Total Allocated Fixed Cost Depreciation

A00101.0011.4111-CHARTS.XLSX\F4.3

2 2

pX Cost of Production Plus 10% Return, 2011

Selected biochemical routes

14 14

Why biochemicals? Because they can sell for more

Consumers and consumer products companies (e.g., Coke and Pepsi) are pulling renewable packaging (green PET and polyolefins) through the value chain

Automobile companies and other durable goods manufacturers are demanding renewable components like the green polyols for seating

The major theme in renewable chemicals and plastics is partnerships between developers of green chemicals and plastics and marketers of end use products

15 15

Why biochemicals? To meet customer needs

Some of the biggest names in consumer products

currently using bioplastics:

• AT & T

• Coca-Cola

• Danone

• Ford

• Heinz

• Johnson & Johnson

• Mazda

• Nestle

• PepsiCo

• Procter & Gamble

• Shiseido

• Stonyfield Farms

• Toyota

16 16

When biochemicals?

NOW!

• Technology advancements

• Increased environmental awareness – both push and

pull

• High/volatile fossil fuel costs

17 17

A word on bio-technologies

Bio-technologies are:

The DEPENDENT variable

Evolving quickly – commercializing

Very mobile

18 18

Challenges and roadblocks

Infrastructure ?

Natural gas ?

Capital ?

19 19

Remember to keep salient local issues in mind in

new & emerging markets

Social issues

Nutritional value chains

Renewables for people

20 20

Biochemicals: from an industry perspective,

what’s it all about?

The emerging global biochemicals sector:

4 million tons of biochemicals can realistically be produced by 2015 (excluding fuels)

15 million tons of bioplastics demand by 2020

Where will this be produced???

21 21

Growing the bioeconomy in new & emerging markets

Key Drivers

Feedstock supply +/-

Green/environmental +/-

$$$ ???

Evaluation of each project on its own merit

22 22

Contact information

Eric Bober

Director, Strategy – Biorenewables

Nexant, Inc.

44 South Broadway, 4th Floor

White Plains, NY 10601

914-609-0302 Office

914-310-4281 Cell

ebober@nexant.com

Nexant, Inc.

San Francisco

London

New York

Bangkok

Houston

Washington

Phoenix

Madison

Boulder

Dusseldorf

Shanghai

Beijing

www.nexant.com

e-mail:info@nexant.com