BioIndustrial Partnership of Minnesota€¦ · • Roadmap Preview Focused on: »Statewide...

BioIndustrial Partnership of Minnesota

Northeast Minnesota CERTS Team

August 15, 2011

Agenda • Introductions

• BioIndustrial Partnership Background Information

• Roadmap Preview Focused on:

»Statewide perspective on the opportunity

»Roles of Eco-Industrial Parks

Enriching Minnesota’s Future through the Biosciences

The BioIndustrial Partnership of Minnesota

• Independent, industry led project to sustain and grow Minnesota’s position as a global leader in the biofuels and biochemicals industry.

• Expected Outcomes

»Education of business and community leaders.

»Identify assets and market MN to external partners.

»Policy development. • Regulatory issues.

• Financial assistance.

Enriching Minnesota’s Future through the Biosciences

Food

Renewable Energy

Renewable Materials

Medical Devices

Biologics/Biopharma

Animal Health

The BioBusiness Alliance of Minnesota • Industry led, non-profit organization

• Partners with industry, academia and economic development groups to stimulate growth in Minnesota

• Supports growth in six targeted industries

Enriching Minnesota’s Future through the Biosciences

BBAM Progress- Assess, Plan, Implement

Enriching Minnesota’s Future through the Biosciences

STATEWIDE INDUSTRY

ASSESSMENT

Phase One: Assess

Phase Two: Plan

Phase Three: Implement

2005-2007 2007-2009 2009-Today

• LifeScience Alley

Largest state-based trade association focused on serving the life sciences industry.

Project Partners • Great Plains Institute

Enriching Minnesota’s Future through the Biosciences

Non-partisan, non-profit corporation based in Minneapolis Mission: to accelerate the transition to a sustainable, prosperous, low-carbon economy.

D2025 Recommendations

Renewable Materials

• Support market development efforts for the renewable materials value chain

»Renewable Materials Summit: Emerging Markets in the Upper Midwest

• Position Minnesota as a world leader in biorefinery operations

Enriching Minnesota’s Future through the Biosciences

Farmers/Foresters Biorefinery Chemical Industry-

Formulators End Product

Manufacturing Retail, End Uses

Liquid Fuels Markets

Enriching Minnesota’s Future through the Biosciences

Renewable Materials Value Chain Overview

Farmers/Foresters Chemical Production

Formulator/ Refinery

End Product Manufacturing

Retail, End Uses

BioIndustrial Partnership of MN Overview

BioIndustrials Partnership of MN Sponsors

Foundational Sponsors ($10,000+)

BioIndustrial Leader ($5,000-$9,999)

Premier Sponsor: $1,000-$4,999

Supporting Sponsor: $500-$999

Existing Biorefineries across Minnesota

Source: www.batchgeo.com

• Strength in forestry and agriculture resources

• Leveraged to value added opportunities

Cargill Resins Minnetonka

Natureworks est. 1997, ~100 emp.

Minnetonka

Segetis Est. 2006, 30 emp.

Golden Valley

Reluceo Est. 2009

Golden Valley

XL Terra Est. 2009

Golden Valley

Draths Est. 2005, 20 emp. Okemos, Michigan

Pine River Petrochemicals

Est. ~2009.

Gevo Est. 2009, 50 emp.

Luverne, MN and CO

Green Harvest Technologies Est. 2007, 1 emp.

Bloomington

Elevance Est. 2004, 45 emp.

Chicago, IL

Cargill BioH Est. 2003, 35 emp.

Plymouth

Cargill Industrial Oils

Minnetonka

Currently not located in Minnesota

1980s - 1990s

1997 - 2004

2005 - 2009

2009 - 2011 BioAmber

Est. 2009 Plymouth

Minnesota Biobased Materials Family Tree

Integrated Biorefinery

Food/ Feed

Forest Products

Chemicals and Plastics

Fuels

Example: C4 Platform (Bio Iso-butanol )

Enriching Minnesota’s Future through the Biosciences

Drop-in Fuels

• Iso-butanol • Jet Fuel • Diesel • Gasoline

Chemicals and

Plastics

• Solvents • Butyl Rubber • Adhesives • Plastics

Project Methodology • Q2 2011: Project Definition

» Assemble Core Team and develop clear understanding of industry. • Status: Done

• Q3 2011: Community Dialogue

» Share global trends and gather information . • Status: In Process

• Q4 2011: Publication

» Minnesota Roadmap for BioIndustrial Development: • Status: Development started. To be published in Q4 2011.

• 2012: Education and Implementation

» Act on strategic direction. • Status: Commencing in 2012 lasting several years.

Core Team- Industry Dominated

Outline: Roadmap for BioIndustrial Development • Biorefinery Development

• Trends • Opportunities • Strategic Direction

• Downstream Market Development » Chemicals » Fuels

• Trends • Opportunities • Strategic Direction

• Agricultural-based Supply Chain Partnerships • Trends • Opportunities • Strategic Direction

• Forest-based Supply Chain Partnerships • Trends • Opportunities • Strategic Direction

• Policy Analysis and Recommendations

End Product Manufacturing Retail, End Uses

Biorefinery

Farmers/Foresters

Farmers/Foresters

Biorefinery

Biorefinery

Chemical Industry- Formulators

Liquid Fuels Markets

Enriching Minnesota’s Future through the Biosciences

Downstream Market Development

Farmers/Foresters Biorefinery Chemical Industry-

Formulators End Product

Manufacturing Retail, End Uses

Liquid Fuels Markets

Fuels Market Development • Policy Driven- RFS2

»Specific attention must be paid for the types of biomass that qualify

• High performance fuels emerging

»Jet fuels

»Hydrocarbon fuels • Diesel Fuels

• Gasoline

• Military Driving Demand

»Several letters of intent to purchase fuel

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Downstream Market - Materials • AURI study released in August 2011

»Details the trends and barriers to economic opportunities with bioplastics.

• Increasing consumer interest

»Enhanced Properties: • Less toxic products for consumer health and the environment

• GHG Reduction

• Biodegradability

»Marketing Advantages • Green Profile

• Support for “American Made”

»Risk: GMO and Food v. Fuel Concerns

Renewable Materials: Target Markets

Enriching Minnesota’s Future through the Biosciences

• Packaging

• Building Products

• Health Care Products

• Consumer Products

• Automotive Parts

• Agriculture

• Foam Products

• Cleaning Products

The Renewable Materials Summit: Emerging Markets for the Upper Midwest. Moorhead, MN. April 27, 2011

Enriching Minnesota’s Future through the Biosciences

Biorefinery Development

Farmers/Foresters Bio-refinery Chemical Industry-

Foru End Product

Manufacturing Retail, End Uses

Fuels End Market

New targets for bio-based chemicals • Innovation is enabling new commodity chemicals

»New to the world chemicals • Segetis’ Javelin Technology

• Reluceo’s XLK Polymer

»Improved access and pricing to existing chemicals • Succinic Acid

• Glucaric Acid

• These products can depend on other innovations in the final products

»Risk for slower growth

»Without significant improvement in functionality, they may not have the critical mass to survive

Biofuels becoming biochemicals companies.

Source: Peter Keeling. Center For Biorenewable Chemicals

• Replace the entire barrel of oil to maximize value

Volatile and increasing fossil fuel prices 1990-2010:

• Oil alone:

»5.5%

• Sugar alone:

»5.3%

• Combined:

»4.6%

Source: ICIS; http://www.icis.com/Articles/2011/06/27/9471601/Bio-based-intermediates-will-reduce-price-volatility.html

Enriching Minnesota’s Future through the Biosciences

Agriculture Opportunities

Farmers/Foresters Biorefinery Chemical Industry-

Formulators End Product

Manufacturing Retail, End Uses

Liquid Fuels Markets

Trends for Agriculture Biorefineries • Transition from traditional to next generation

fuels/chemicals

»“De-commoditization” and “diversification”

»Tight margins because of volatility

»Cellulosic Feedstock Developments

Corn Prices: August 2008-July 2011

Source: www.wsj.com

Industry Development 101 • Leverage local and regional assets.

• Work from a strategy.

• Develop specific projects to define a common goal.

»This is where Eco-Industrial Parks play a critical role!

Next Steps and Deliverables • Publication of The Roadmap for BioIndustrial

Development by Q4 2011

• Begin implementation plan to be defined in roadmap:

»Continuing education to influence policy.

»Channel energy from core team to support specific projects.

»Market MN assets to external partners.

Enriching Minnesota’s Future through the Biosciences

Ongoing Participation • How to participate:

»Talk to others about the opportunity

»Lend your expertise to develop the strategy

»Attend other BioIndustrial Partnership of MN events

»Stay in touch!

• Sponsorships are available!

Enriching Minnesota’s Future through the Biosciences

Thank You!

Tim Welle twelle@biobusinessalliance.org

952-746-3077

Additional Information

Drop-in Petrochemical Opportunities

Volume too large and margins too low for effective renewable play

Best space for renewable play

Very fragmented, low fungibility and channel difficulties

The majority of chemical products come from a few platform supercommodities:

Methane – C1 Ethylene – C2 Propylene – C3 Butylene – C4 Benzene, Toluene, Xylene - BTX

Source: Luca Zullo, VerdeNero