EIP-AGRI Workshop ‘Building new biomass supply chains for the bio-based economy’May 27 – 28, 2015 – Alghero, Italy

Catia Bastioli, CEO of Novamont S.p.A. and Matrìca S.p.A.

A concrete example of fully integrated biorefinery in Italy

INDUSTRY

R&D

HUMAN CAPITAL

1996 - RESEARCH CENTRE →2014 - TURNOVER OF 145 MIO/€257 PEOPLE DIRECTLY EMPLOYED

BY NOVAMONT(2014) 500 PEOPLE EMPLOYED

INCLUDING JVs AND START-UPs)

25-YEAR R&D EXPERIENCE6.2% OF TURNOVER20% OF EMPLOYEES 1.000 PATENTS

MORE THAN 250 TRAINING PROGRAMMES SINCE 2000

Novamont todayA knowledge-based industry

DEVELOPMENTMODEL OF INTEGRATED BIOREFINERY

Biorefinery integrated in the local area: primarily dedicated to the production of chemicals and high added-value

products different local raw materials (low-input crops, scraps, etc.) – respect for

local biodiversity use of marginal lands and re-industrialization of deindustrialized sites integration of a wide and rising range of low-impact technologies and

plants based on the close collaboration with the world of farming, research,

environment, consumers and with local institutions

PRODUCTSInnovative bioplastics and biochemicals based on renewable resources,which are biodegradable and compostable according to the most important international standards.

Solutions economically and environmentally sustainable in specific application sectors with a view to rethinking the overall system.

Bioeconomy as territorial regenerationTransition from a product-based economy to a system-based economy

Adressing societal challenges with bioplastics

UPSTREAM INTEGRATION

TOPSOIL ORGANIC CARBON CONTENT(SOURCE: JRC)

COMPOST AS DRIVER FOR SOILS FERTILITY

DEVELOPMENT OF ORGANIC WASTE SEPARATE COLLECTION

SYSTEMS THROUGH BIOPLASTICS

ORGANIC WASTE IN LANDFILL

Addressing the build-up of a third generation biorefinery for bioplastics and biochemicals

Headquarters and research centre

Novara - Piemonte

Biotechnologicalresearch centre

Piana di Monte Verna (CE)Campania

Mater-Bi productionand research on

intermediates from RRMTerni - Umbria

Mater-Biotech(100% Novamont)

bioBDO productionAdria (RO) - Veneto

Mater-Biopolymer(78% Novamont)

Polyesters productionPatrica (FR)

Matrìca(Versalis/Novamont

50:50 JV)Porto Torres (SS)

Sardegna

Network of sites related to the bioplastics and biochemicalsvalue chain and based on Novamont technologies

Mater-Bi®: applications

Tailor-made applications where biodegradability and compostabilitypresent added value

Matrìca (50:50jv EniVersalis/Novamont)Production Cycle From Oil to Chemicals

BIOMONOMERS PLANT: VEGETABLE OIL FEEDSTOCK. PRODUCTION CAPACITY: 35,000 TON/YESTERS PLANT: PRODUCTS FOR SPECIALTY APPLICATIONS: 2 INDEPENDENT AND FLEXIBLE PRODUCTION LINESADDIVES PLANT: ADDITIVES FOR RUBBERS AND POLYMERIC PLASTICIZERS

Biomonomers

Plant

Glycerin

Intermidiatesfor extensor oil

PelargonicAcid

Azelaic acid

Polymersand rubberadditives

plant

Pelargonic acid estersEsters plant

Fatty acidsblend

Extensor oil

Plasticizers

Esterificationreagents

Complex esters

Note: simplified scheme

Vegetable oil

Chemicalsand reagents

market

C5-C9 acid blend

C5-C9 esters

THISTLE AND OTHER

OLEAGINOUS CROPS

New Biochemicals: Sectors where Matrìca Products willContribute to the Quality of the Environment

PLASTICIZERS FOR PVC AND OTHER POLYMERS AS REPLACEMENT OF PHTALATES

BIOLUBRICANTS FOR AGRICULTURE, MARINE AND INDUSTRIAL APPLICATIONS (HIGH LUBRICITY, BIODEGRADABILITY, LOW FLAMMABILITY)

PALM OIL FREE COMPONENTS FOR COSMETICS

OIL EXTENDERS FOR RUBBER

BIO-HERBICIDES FOR INTEGRATED AGRICULTURE

WORLDWIDE

PRODUCTION OF PHTALATES: 5.5 MIO TON

EU PRODUCTION OF LUBRICANTS: 5.2 MIO TON

HYDRAULIC FLUIDS: 0.7 MIO TON

EUROPEAN PRODUCTION:

> 0.5 MIO TON

BIOPLASTICS: PROPRIETARY MATER-BI OF THIRD GENERATION (WITH AZELAIC ACID)

FEEDSTOCK WITH VALUE ADDED FOR PRODUCTS AND ENERGY

PHASE 1: INDUSTRIAL PROJECT READY FOR APPROVAL «STEAM PRODUCTION AND DIATHERMIC OIL HEATING»

PHASE 2: 2ND GENERATION SUGARS FOR FERMENTATION

ROOTS (ORGANIC SUBSTANCE)

NEW DEVELOPMENTS IN PROGRESS FOR END OF CYCLE RECOVERY

OIL AND PROTEIC FLOUR FOR ANIMAL FEED

NEW CRUSHING TECHNOLOGY PATENTED AND PROVEN AT PILOT SCALE. ENGINEERING IN PROGRESS:25% OIL, 70% PROTEINS, 5% ACTIVE MOLECULES

RAW MATERIALS AND USES FROM THISTLE (six years cycle)

0,9-2ton/ha

12-20ton/ha

STARTED IN UMBRIA MORE THAN 10 YEARS AGO WITH THE AIM TO CREATE A NEW COOPERATION MODEL BETWEEN INNOVATION INDUSTRY AND FARMERS FOR LOCAL REGENERATION, STARTING FROM VEGETABLE OILS AND THE BIOPLASTICS CHAIN

TODAY: FIRST PRODUCTS ARE READY TO BE MARKETED BY FARMING CONSORTIA (CONSORZI AGRARI)

PORTO TORRES: UP TO NOW, 4 YEARS OF EXPERIMENTAL ACTIVITY ON DRY CROPS (AGRONOMIC PROTOCOLS, MECHANISATION, LOGISTICS, GENETIC IMPROVEMENTS, ETC.), BIOMASS/OIL USE WITH MATRICA, ANIMAL FEED WITH SHEPHERDS

OVERALL AGREEMENT NOVAMONT/COLDIRETTI SIGNED IN JANUARY 2015

Novamont/Coldiretti long-lasting relationship

BIO-BASED PRODUCTS: SUPPORT BIO-BASED PRODUCTS RESULTING FROM INTEGRATED VALUE CHAINS, WITH A RRM CONTENT >50%, WHEN SOLVING SPECIFIC ENVIRONMENTAL ISSUES (I.E. BIODEGRADABLE COMPOSTING BAGS/SHOPPING BAGS, USE OF LOW-IMPACT RENEWABLE LUBRICANTS, MULCH FILMS, BIO-ERBICIDES ETC., MARKETED THROUGH THE ITALIAN FARMERS CONFEDERATION NETWORK)

BIOGAS

BIOMASS

OIL

ACTIVE MOLECULES

Coldiretti - CAI/FAI - Novamont Agreement on Thistle

COOPERATION WITH MATRÌCA, COLDIRETTI, ACADEMIA, NATIONAL RESEARCH COUNCIL (CNR), AGRICULTURAL RESEARCH COUNCIL (CRA), NATIONAL AGENCY FOR NEW TECHNOLOGIES, ENERGY AND SUSTAINABLE ECONOMIC DEVELOPMENT (ENEA), FARMERS, SHEPHERDS,

START-UPS, LOCAL INDUSTRY

INPUTS

BIO

PLA

STIC

SB

IOLU

BR

ICA

NTS

BIO

CH

EMIC

ALS

NOVAMONT

CAI

FAI

TRINASEED

AGRONOMICPROTOCOLS

NEWMACHINERY

BIODEGRADABLEMULCH FILMS

BIOLUBRICANTS

BIOHERBICIDES

FAR

MER

S

SEEDS

ROOTS

NEW CRUSHING

PROTEINS

OTHER CHEMICALS

STEAM DIATHERMIC OIL

OTHER CHEMICALS

SHEPHERDS

MATRÌCA

NOVAMONT

NOVAMONT

NOVAMONT

MATRÌCA

FARMERS, OTHERS

SHEPHERDS

NOVAMONT TECHNOLOGIES

MUNICIPAL ORGANIC WASTE COMPOSTING PLANT

*

*

*

**

*

*FLAGSHIP PLANTS

*PILOT PLANTS

ENGINEERING

COOPERATION NETWORK

USE OF LOCAL PLANTS

LESSONS LEARNED

NEW PRODUCTS AND TECHNOLOGIES ARE AVAILABLE, AS WELL AS MANY CASE

STUDIES OF SYSTEM BASED ECONOMY, WHICH CAN BECOME CATALYSTS FOR A FASTER

GROWTH.

CRISIS AT A CERTAIN EXTENT IS A RESULT OF OUR INABILITY TO CHANGE MODEL. IF

POLICIES WILL NOT BE ABLE TO LEVERAGE FROM WHAT ACHIEVED TODAY, THE COSTS

OF INACTIVITY WILL BE DRAMATICALLY HIGH.

A CHANGE OF MINDSET IS NEEDED: BIOECONOMY IS NOT JUST DEALING WITH

RENEWABLE RESOURCES, BUT WITH TERRITORIAL REGENERATION AND CULTURAL

CHANGE, PROMOTING THE CONCEPT OF SUSTAINABLE REGIONS: RECOVERY OF

ABANDONED LAND FOR SUSTAINABLE PRODUCTIONS, SOIL IMPROVEMENT,

REINDUSTRIALIZATION OF DEINDUSTRIALIZED/POLLUTED SITES, RETHINKING OF

AGRICULTURAL VALUE CHAINS NOT ECONOMICALLY SUSTAINABLE THROUGH NEW

INTEGRATED TECHNOLOGIES, LAUNCH OF INTEGRATED AGRO-INDUSTRIAL PROJECTS

ALONG THE VALUE CHAIN.

Thank you!

« The challenge of our millennium is in the balance between the technical means that humanity possesses and the wisdom in how

we will make use of them »Umberto Colombo

1. 6 YEARS CONTRACTS2. AGRONOMIC SUPPORT AND AVAILABILITY OF EQUIPMENT FOR AGRICULTURE 3. PREDETERMINED PRICE FOR SEEDS AND BIOMASS FOR THE FIRST 3 YEARS4. TRANSFER OF A QUOTA OF THE PROTEIN FLOURS RESULTING FROM OIL

EXTRACTION (USEFUL FOR ANIMAL FEED)5. SUPPLY OF ALL THISTLE SEEDS AND BIOMASS TO NOVAMONT FOR 6 YEARS6. MANAGEMENT OF POST-HARVEST STOCKS7. GUARANTEED MINIMUM REMUNERATION FOR FARMERS

Coldiretti - CAI/FAI - Novamont Agreement

Potential scenario in case of 100,000 ha dedicated to thistlecrop vs 2.8 MIO ha of abandoned Italian land

3,000 - 5,000 TON/Y

1.5 MIO TON/Y

370,000 -500,000 TON/Y

250,000 -350,000 TON/Y

40,000 -80,000 TON/Y

110,000 -200,000 TON/Y

PROTEINS FOR ANIMAL FEED (26%)(SARDINIA ANNUAL IMPORT OF FEED: ABOUT 140,000 TON/Y)

VEGETABLE OIL

BIOPLASTICS AND BIOLUBRICANTS

ACTIVE MOLUCULES (STABILISERS, NUTRACEUTICS)

LIGNOCELLULOSIC BIOMASS (AROUND 1 MIO FOR ENERGY AND THE REST FOR SUGARS)

2ND GENERATION SUGARS (TO FEED CHEMICAL AND FERMENTATION PLANTS WITH TECHNOLOGIES ALREADY TESTED OR UNDER TESTING)

Mutual benefits for the local area, the industry and the primary sector

PRIMARY SECTOR

NEW INCOME OPPORTUNITIES

REDUCED DEPENDENCY ON ABROAD FOR PLANT PROTEINS FOR ANIMAL

FEED

CULTIVATION OF ABANDONED LAND (NOT PROFITABLE FOR FOOD

PRODUCTION)

INDUSTRY

INNOVATIVE BIOPRODUCTS WITH LOW ENVIRONMENTAL IMPACT

SHORT AND INTEGRATED SUPPLY CHAIN

REDUCED DEPENDENCY ON ABROAD FOR BIOMASS SUPPLY

SOCIETAL AND ENVIRONMENTAL BENEFITS

SHARED MODEL OF BIOECONOMY AS TERRITORIAL REGENERATION

LOCAL DEVELOPMENT

PROTECTION OF THE ENVIRONMENT AND OF THE BIODIVERSITY

NEW JOBS

NEW GROWTH ALL ALONG THE VALUE CHAIN, INCLUDING DOWNSTREAM AND SATELLITE INDUSTRIES

Map of research on dry crops in Italy

• Agronomic aspects

• Soil preparation

• Weed control

• Fertilization

• Entomology

• Mecanization and logisticaspects

• Agricultural valuations

• Genetic improvements

• Active molecules extraction

• Crushing/Oil production

and modification

• Proteic Meal

• Sugars from biomass

• Fermentation

• Energy from biomass

Filarete Servizi - Milano

CRA ING - Treviglio

Novamont - NovaraMatrìca - Novara

AgriNewTech - Grugliasco

Matrìca - Porto Torres

CNR - Sassari

Università Sassari

CRA ING

Monterotondo

CNR - Catania

ENEA - Trisaia

CRA CIN - Bologna

Novamont - Terni

Università di Perugia

Novamont - Piana di

Monte Verna

The thistle: different uses and development conditions

Oil and proteic flourfor animal feed

Feedstock with value addedfor products and energy

RootsOrganicSubstance

AFTER 3 CONSECUTIVE YEARS OF EXPERIMENTATION: 400 HA AND MORE THAN 40 FARMERS INVOLVED BIOMASS PRODUCTION > 15 TON/HA (17 TON/HA IN 2014) SEEDS PRODUCTION 1,5 TON/HA (1,74 TON/HA IN 2014)

ENGINEERING OF SPECIFIC FARMING MACHINES SUITABLE FOR SARDINIAN STONY GROUNDS

Potential areas for thistle production

HARABLE LAND IN SARDINIA:JUST IN SASSARI PROVINCE 70,000 HA OF HARABLE LAND

LOST FROM 1982 TO 2010(SOURCE: ISTAT)

SARDINIA ANNUAL IMPORT OF FEED: ABOUT 140,000 TON/Y

Supply basin for thistle biomass

NOVAMONT/COLDIRETTI COMMON VISION

CONTINUOUS INNOVATION

(OM PRODUCTS, PROCESSES, PLANTS, ALLIANCES ETC.)

TO CATALYSE

AN INTEGRATED AGROINDUSTRIAL VALUE CHAIN

PROMOTING THE CONCEPT OF

SUSTAINABLE REGIONS, AND CIRCULAR ECONOMY,

STARTING FROM LOCAL ISSUES

TO BE TRASFORMED IN OPPORTUNITIES

IN THE LOGIC OF THE EFFICIENT USE OR RESOURCES

Bioeconomy: taking stock and moving forward

EU Bioeconomy Strategy: a triple challenge

1. producing biomass without overexploitation

and negative impact on the environment;

2. reducing GHG emissions;

3. ensuring economically viable production

that benefits the whole value chain.

Lessons learned from the 3rd EU Bioeconomy

Conference (Turin, 8-9th October 2014) :

new products and technologies and case

studies of system based economy available

at EU level: catalysts for a faster growth;

crisis as a result of our inability to change

model: need for leverage policies;

Bioeconomy: not just dealing with renewable

resources, but with territorial regeneration

and cultural change.

SUSTAINABLE REGIONS

AS FOR «COVENANT OF

MAYORS» SYSTEM

RECOVERY OF

ABANDONED LAND FOR

SUSTAINABLE PRODUCTION

SOIL IMPROVEMENT

REINDUSTRIALIZATION OF

DEINDUSTRIALIZED/POLLUTED

SITES

NEW INTEGRATED

TECHNOLOGIES TO RETHINK

AGRICULTURECONNECTING

NEW FLAGSHIPS

AND RENEWABLE

ENERGY

CONNECTING COMPLEMEN

TARY FUNDING

OPPORTUNITIES

INTEGRATED AGRO-

INDUSTRIAL PROJECTS

MULTIPLE USE OF LOCAL

BIOMASS, FEED PRODUCTION, BIOPRODUCTS