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Pine Chemical AssociationInternational Conference

September 19, 2016

Alan Phillips

Arboris LLC

Pine Chemical Industry

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Pine Chemical Industry

Bio Products

Bio Economy

Sustainability

Bright Future

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Pine Chemicals Bio Products

Constrained Renewable Resource

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Pine Chemical Bio Products

Global Pine Chemicals impact $55 billion & 386,000 jobs

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Bio Economy

Global conversation regarding Bio Economy increased as Climate Change and Global Warming studies began to show that man made carbon emissions measured in 6 greenhouse gases were the cause.

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Bio Economy

U.S. Greenhouse Gas Emissions and Sinks by Economic Sector, 1990-2014

US EPA: Climate Change INDICATORS in the United States 2016 Fourth edition

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Bio Economy

Global Greenhouse Gas Emissions by Gas, 1990 - 2010

US EPA: Climate Change INDICATORS in the United States 2016 Fourth edition

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Bio EconomyU

nit

ed

Sta

tes Mandates Biofuels into Transportation Fuels

CTO is not qualified for use in Bio FuelsAuthorizes Agriculture Programs and NutritionDefines Forest Products & Expanded Bio Based ProductsExpanding US Bio Economy 5 times to $ 500 billion by 2030, Create 1.7 mm jobs and reduce CO2 emissions 530 mm tons

RFS

Farm Bill

Billion Ton Vision

Mandates the use of at least 20% renewable energy by 2020 Defined sustainability criteria to guarantee carbon savings and protect bio diversity.CTO classification: Residue extra incentives for use in biofuelsBio Fuel production impact on Land use change.Targets established for GHG and EnergyLow Carbon Economy Road map; Emission reduction of 80%

RED

ILUC2030 Framework

2050 Economy

Euro

pe

A Holistic Approach is needed including Environment, Society, and Economic Value

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Bio Economy

Life Cycle Assessment of CTO Pine Chemicals and their Substitutes– No environmental benefit diverting CTO bio renewable chemicals to bio

transportation fuels

By: Franklin Associates and Submitted to the American Chemistry Council (ACC) Pine Chemistry Panel August 2013

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Bio Economy

EU CTO – Added Value Study

Fraunhofer Report May 2016

Key Metric Bio Fuels Bio Products

Production GHG Emissions; (kg CO2 eq/t CTO) 1,218 940

System Calculation with Fossil SubstitutesGHG Emissions Savings; (kg CO2 eq/t CTO) 2,118 2,256

Economic Added Value (EAV) 1 4-5

Jobs in Value Chain (Direct and Indirect) 1 > 20

CTO conversion to Bio - Product has greater overall benefit

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Sustainability

Mega forces impacting a sustainable solution– Climate Change and Global Warming

– Energy Supply, Conservation, Independence

– Constrained Resources

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Sustainability

Cascading principle ensures most efficient utilization of a constrained resource

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Sustainability

Pine Chemical Principles– Life Cycle and GHG Impact

– Innovation and Value Creation

– Bio mass Utilization using Cascading principles

– Level Playing Field for Bio Products vs Bio Fuels

– Market based economics without mandates or subsidies

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Bright Future

– Pine Chemical Industry

• Original Bio Based Industry Leaders

• Well positioned converting Bio Mass to Bio Renewable Products

• Sustainable: Supporting Environment, Economy, Jobs.

• Efficient utilizing of Bio Mass and the Cascading principle, creating value and innovating new products

– US and Europe Bio Economies

• Billion Ton Vision in the US

• 2050 Road Map in Europe

– Global Bio Economy

• Estimated at $ 2 Trillion in 2014

• Existing companies reshaping their future in Bio Based Solutions

• New Bio Based; Products, Companies; Innovation

Pine Chemical Industry is the “Gold Standard” for Bio Renewable Business

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Pine Chemical Industry

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