Use of bio-derived products in the automotive sector ABIC, Calgary, Alberta

September 17, 2013

Craig Crawford, President & CEO

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Overview

• The Value Proposition for Automotive Bio-products?

• North American Shale Gas Revolution

• Impact on The Chemical Sector

• Effects on Ethylene Co-Product Streams

• Opportunities for Biotechnology

• Potential Business Opportunities for the Agriculture and Forest Sectors

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The Value Proposition

for Automotive Bio-products

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Plastics Are Sensitive to Energy Costs

Source: T.K. Swift, American Chemistry Council, 2013

Grains & Oilseeds As Alternatives to Oil

Source: Doug Cameron, Cargill, 2005

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Emerging Importance of Bio-Plastics

Source: Dr. Masatoshi Matsuda and Eric Connell, Toyota Motor Corporation, 2009

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BUT – Shale Gas Changes Economics

Source: William Banholzer, Dow Chemical Company, 2012

Improvement in US Competitive Position

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Source: T.K. Swift, American Chemistry Council, 2013

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Downstream Impacts on Manufacturing

Source: Price Waterhouse Cooper, “Shale Gas: Reshaping the US chemicals industry”, Oct. 2012

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North American

Shale Gas Revolution

US and Canada Shale Gas Formations

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Source: John Wolnik, Association of Power Producers of Ontario, 2013

US & Canada Shale Gas Production

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Source: Bruce Henning, ICF International, 2012

Shale Gas Important for Supply Growth

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Source: Bruce Henning, ICF International, 2012

Natural Gas Liquids More Valuable Than Gas

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Natural gas liquids (NGL) include ethane,

propane, butane, isobutane, and pentane.

Source: Kristen Holmquist, Bentek Energy, 2011

Economics Favour Shift to “Wet” Shale Gas

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Wet shale gas plays include natural

gas (methane) plus NGL

Source: Chris Foster, Bentek Energy, 2013

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Marcellus / Utica NGL Growth

Source: MarkWest Presentation, 2013

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Impacts of Shale NGL on

on The Petrochemical Industry

Shift to Ethane-Based Crackers

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Source: Booz & Company, 2012

New Capital Investment

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Source: T.K Swift, American Chemistry Council, 2013

Timing of Ethylene Expansions

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Source: Joseph Chang, ICIS, 2013

Expansions to Existing Ethylene Crackers

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Source: Joseph Chang, ICIS, 2013

New Ethylene Crackers

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Source: Joseph Chang, ICIS, 2013

Companies Considering New Crackers

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Source: Joseph Chang, ICIS, 2013

North American PDH Projects

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Source: Joseph Chang, ICIS, 2013

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Impact of Switch from Naphtha to NGL on

Ethylene Co-Product Stream

Impact on Co-Product Streams

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Source: Booz & Company, 2012

Extent of Reduced Co-Product Output

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Source: Joseph Chang, ICIS, 2013

Estimated Co-Product Shortages

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Source: Booz & Company, 2012

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Business Opportunities for

Biotechnology

Butadiene Price Trends

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Source: Balaji Singh, Chemical Market Resources Inc., 2013

Downstream Butadiene Applications

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Source: Transparency Market Research, 2011

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Bio-Based Rubber Technologies

Company Partners Chemical

Amyris Michelin Farnesene

Cobalt 2 Asian Partners Butadiene

Genencor/DuPont Goodyear Isoprene

Genomatica Versalis Butadiene

Gevo Lanxess Isobutyl alcohol > isobutene

Global Bioenergies Synthos Isobutene

Metabolix CJ BIO C4s

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Business Opportunities

For The Agriculture & Forestry Sectors

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Applications with Automotive Impacts

• Green Drilling Muds & Frac Fluids, e.g. – less toxic and bio-degradable, agriculture-based solvents and

lubricants and forestry-based nanomaterials (make supply chain more environmentally sustainable in order to retain a social license)

• Feedstock for Bio-based C4 Production – e.g. use C5 sugar stream from hemi-cellulose fraction in

existing forestry pulp mills:

• For isoprene / butadiene production > rubber

• For succinic acid / adipic acid production > nylon

• Butadiene Demand Destruction – e.g. PP / wood composite replacement for ABS

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Questions

Ontario BioAuto Council

100 Stone Road West, Suite 205

Guelph ON N1G 5L3

Office: 519-827-1118

Web: www.bioautocouncil.com