RENEWABLE FEEDSTOCK FOR THE CHEMICAL INDUSTRY: A PERSPECTIVE ON ALGAE POTENTIAL Jan de Boer, SABIC Technology & Innovation Lelystad, September 8 2014

No. 2

AGENDA

• SABIC .. Saudi Basic Industries Corporation • Sustainability, a critical business factor

• The alternative route: renewable feedstock

• The algae “landscape”

• Wrap-up, Q & A

No. 3

• Headquarters in Riyadh, Saudi Arabia

• Founded in 1976 .. 38 years of growth

• 2nd Largest global diversified chemical company

• 90 B$ Total assets, 6 B$ net profit (2013)

• Over 40,000 employees in 45 countries

• 6 Strategic Business Units

• 60 World-class plants worldwide

• Technology & Innovation centers in Saudi Arabia, USA, Europe, China, Japan, Korea, and India

• 9,000 Global patents

• More than 150 new products per year

SABIC COMPANY INTRODUCTION

INSPIRE .. ENGAGE .. CREATE .. DELIVER

No. 4

STRATEGIC BUSINESS UNITS

Chemicals: Olefins, aromatics, intermediates, industrial gases Polymers: PE, PP, PET, PVC, PS Innovative Plastics: PC, ABS, PPO, PEI, PBT, specialty compounds, sheet & film Fertilizers: Liquid fertilizers, urea compounds, ammonia, phosphates Metals: Flat steel, long steel, aluminum JV’s Performance Chemicals: Catalysts, polymer additives, rubber chemicals

No. 5

SUSTAINABILITY .. ENVIRONMENTAL ASPECTS

• Develop new products .. Respond to customers needs

• Natural fiber filled grades (Automotive)

• Certified renewable poly-olefins

• Application design .. Life Cycle Analysis

• Reduce intensity of environmental footprint

• Energy, water, raw materials, GHG emissions

• (Advanced) recycling

• Continue to evaluate bio-based raw material options

• Agricultural rest streams .. Green Chemistry Campus

• Biorizon Shared Research Center: bio-aromatics

• Algae .. AlgaeParc, BioSolar Cells, GAIA

SUSTAINABILITY .. A KEY ELEMENT OF THE SABIC LONG TERM COMPANY VISION

No. 6

Sugar - 1G Technology

- Dedicated crops - Available

Starch - 1G Technology

- Dedicated crops - Available

Algae, Seaweed - 3G Technology

- Huge potential volume - Longer term > 2020

LignoCellulose - 2G Technology

- Rest stream options - Mid/long term

Sugar Cane

Sugar Beet Corn

Wheat Straw

Forestry Residues

Seaweed

Algae

RENEWABLE FEEDSTOCK OPTIONS

COST EFFECTIVE BIOMASS SUPPLY CRITICAL .. CONSIDER REGIONAL IMPACT

No. 7

ALGAE RESEARCH AT SABIC: WHY?

Long term interest

• Valorize (flue gas) CO2 .. Chemical upgrading

• Cost effective access to renewable, high added-value chemicals

• New building blocks to drive innovation

• Alternative to petro-chemical supply chain

• Scope Saudi Arabia - Red Sea options

Essential variables

• Strain selection: high light & temperature tolerance, fast growth, high yield biomass, salt/sweet water

• Reactor type: open or closed systems, process control

• Location .. Geographical considerations

GLOBAL RESEARCH PARTNERSHIPS VITAL TO ACCELERATE PROGRESS IN ALGAE RESEARCH

No. 8

ALGAE RESEARCH AT SABIC: WAY FORWARD

Current focus

• Define target molecules .. Assess technology options

• Build a micro-algae strains portfolio

• Techno-economic cost estimates, CAPEX & OPEX

• Validate business cases, compare scenarios

• Consider KSA pilot

Challenges ahead

• Process and product consistency

• Capture total value, sequential isolation, co-products

• Optimize bio-refinery routes

• Scalability to a mega-industrial process .. Algae farms

VALORIE .. A KEY ENABLER TO SUCCESSFULLY COMMERCIALIZE ALGAE TECHNOLOGY

No. 9

QUESTIONS?

No. 11

DISCLAIMER

THE MATERIALS, PRODUCTS AND SERVICES OF SABIC’s INNOVATIVE PLASTICS BUSINESS, ITS SUBSIDIARIES AND AFFILIATES (“SELLER”), ARE SOLD SUBJECT TO SELLER’S STANDARD CONDITIONS OF SALE, WHICH CAN BE FOUND AT http://www.sabic-ip.com AND ARE AVAILABLE UPON REQUEST. ALTHOUGH ANY INFORMATION OR RECOMMENDATION CONTAINED HEREIN IS GIVEN IN GOOD FAITH, SELLER MAKES NO WARRANTY OR GUARANTEE, EXPRESS OR IMPLIED, (i) THAT THE RESULTS DESCRIBED HEREIN WILL BE OBTAINED UNDER END-USE CONDITIONS, OR (ii) AS TO THE EFFECTIVENESS OR SAFETY OF ANY DESIGN INCORPORATING SELLER’S PRODUCTS, SERVICES OR RECOMMENDATIONS. EXCEPT AS PROVIDED IN SELLER’S STANDARD CONDITIONS OF SALE, SELLER SHALL NOT BE RESPONSIBLE FOR ANY LOSS RESULTING FROM ANY USE OF ITS PRODUCTS OR SERVICES DESCRIBED HEREIN. Each user is responsible for making its own determination as to the suitability of Seller’s products, services or recommendations for the user’s particular use through appropriate end-use testing and analysis. Nothing in any document or oral statement shall be deemed to alter or waive any provision of Seller’s Standard Conditions of Sale or this Disclaimer, unless it is specifically agreed to in a writing signed by Seller. No statement by Seller concerning a possible use of any product, service or design is intended, or should be construed, to grant any license under any patent or other intellectual property right of Seller or as a recommendation for the use of such product, service or design in a manner that infringes any patent or other intellectual property right.

SABIC and brands marked with ™ are trademarks of SABIC or affiliates. © 2013 Copyright by SABIC. All Rights Reserved.