Presenting to: 1© 5/10/2012

Biobased Products

Markets and possibilities in Europe and around the world

9 May 2012

Derek Atkinson

2© 5/10/2012

Agenda

Purac at a glance

Developments in biobased products

Developments in bioplastics

EU policies to implement a biobased economy

Purac investments in a biobased economy

Purac at a glance

80 years experience in the development, production and marketing of natural lactic acid

Focus on:

Food preservation

Green chemicals and biobased building blocks

Global network and manufacturing footprint with the core of the development activities in the Netherlands

Turnover of 407 mil EUR (2011)

1050 Employees

Growth driven by innovation

Fermentation is a key competence for Purac

3© 5/10/2012

Global presence

Purac factory

Purac sales office

Purac regional application center

100,000 mton Lactic Acid plant Purac Thailand

5© 5/10/2012

75,000 mtons PLA monomers plant Purac Thailand

6© 5/10/2012

5,000 mton PLA plant at Synbra, NL

7© 5/10/2012

Developments in biobased products

8© 5/10/2012

Chemicals volume 20 times lower than fuels, but similar in total added value

9© 5/10/2012

Source: New Scientist 2007

Other

Chemicals

Fuels

Value Added

895

15%

42%

43%

Volume

300

26%

3%

71%

Leading chemicals, fuels and commodities players are building biobased chemicals into their portfolios

10© 5/10/2012

Bio-based

products

Ethyl-ene(PE)

EO/MEG

1,3-PDO(PTT)

Lactic acid(PLA)

Amino acids

Surfactants

PHA

Green solvents

Acetic acid

Citric acid

Isoprene

Poly-propylene (PP)

Butanol

Succinic acid(PBS,BDO)

AcrylicAcid

(3- or 2-HPA)

PTA(PET)

AdipicAcid (Nylon 6,6)

for

L+/D-

forms

Songyuan

Ji'an Biochem.

Commercial stage Not yet commercial

Farnesene

1,4-BDO

Epi-Chloro-hydrin

Bio-based

products

Source: ICIS

Value generated per dry ton biomass

11© 5/10/2012

Malaysian Ringgits

Global market for fermentation derived fine chemicals

Chemical 2009 USD millions 2013 USD millions

Amino Acids 5,410 7,821

Enzymes 3,200 4,900

Organic Acids 2,651 4,036

Vitamins 2,397 2,286

Antibiotics 1,800 2,600

Xanthan 443 708

Total 15,901 22,351 (+40%)

12© 5/10/2012

Source: Frost & Sullivan 2011Advances in Fermentation Technologies An Industry Overview

Biobased chemicals assessed for market penetration and reference materials

13© 5/10/2012

Source: Patel, M and others The BREW Project (adapted)

Biobased chemical Reference petrochemical

Ethyl lactate Ethyl acetate

Ethylene Ethylene

Adipic acid Adipic acid

Acetic acid Acetic acid

n-Butanol n-Butanol

PTT PTT & Nylon 6

PHA HDPE

PLA PET and PS

FDCA Terephthalic acid

Succinic acid Maleic anhydride

Future GHG savings per ton and annual savings assuming complete replacement fossil based chemical

Product GHG savingston CO2 / ton product

Capacity million tpa

GHG savingsmillion tpa CO2

Acetic acid 1.2 8.3 9.6

Acrylic acid 1.5 2.9 4.4

Adipic acid 3.3 2.4 7.9

Butanol 3.9 2.5 9.6

Caprolactam 5.2 3.9 20.0

Ethanol 2.7 2.6 7.1

Ethyl lactate 1.9 1.2 2.2

Ethylene 2.5 100.0 246

Lysine 3.6 0.6 2.3

Succinic acid 5.0 1.4 6.8

1,3-propanediol 2.9 - -

PHA 2.8 57.0 160

PLA 3.3 11.1 36.5

14© 5/10/2012

Source: Hermann, G.G. And others 2007

Developments in bioplastics

15© 5/10/2012

Global production capacity bioplastics

0

200

400

600

800

1000

1200

1400

1600

2006 2007 2008 2009 2010 2011 2012

Capacity

16© 5/10/2012

Capacity in tons* 1000

Year

Source: European Bioplastics Association

Global bioplastics capacity by 2015

Total capacity

1,709,700 mton

Bio-PE

Bio-PET

PLA

PHA

Biodegradable polyesters

Biodegradable starch blends

Bio-PVC

Bio-PA

Regenerated Cellulose

PLA-Blends

Bio-PP

Bio-PC

Others

17© 5/10/2012

120,000

Source: European Bioplastics Association

Bio-PE450,000

Bio-PET290,000

PHA147,100 PLA

216,000

143,500

124,800

Comparing bio-routes to different products

Product TechnologyOverall process

yield

Kg sugar for 1 kg polymer

Overall process

yield

Kg sugar for 1 kg polymer

Remarks

Bio PLA Sugar to PLAvia lactic acid and Lactides

80% 1,25 > 62% < 1,60In commercial operation, Purac, Natureworks, others

Bio PE Sugar to ethanol to ethylene to

PE

31% 3,22 < 25% > 4,00 In commercial operation in Brazil, Braskem

Bio PP Sugar to ethanol to propylene

47% 2,14 No Commercial suppliers

Bio PET * Bio MEG + Bio PTA,

from sugar36% 2,77 < 20% >5,00 *

MEG: India Glycols,PTA :via bio-isobutanol (Gevo) or isobutene

18© 5/10/2012

Theoretical Actual

* Bio-PET is not commerial, for the actual yield calculation an assumption of 90% yield of the theoretical yield for each process step has been made.

EU policies to implementa biobased economy

19© 5/10/2012

EU putting the biobased economy high on the agenda

Europe 2020

Knowledge based Bio-economy

Lead markets initiative for biobased products

20

Consumerdemand

for sustainable products

Societalsupport

forgreen

economy2011

Strategy and Action plan on biobased

economy

Europe 2020

& Innovation

Union

NationalBiobasedEconomy Programs

Lead Market

Initiative

EU building a biobased economy

Purac investments in a biobased economy

22© 5/10/2012

23

• Sustainable Sourcing Program focusing on most important raw materials (palm oil, sugar, cocoa, …)

Addressing sustainability along value chain

• Bioplastics (PLA)• Succinic Acid• Natural

preservatives• Health &

wellness• Salt reduction

• Reduction targets for Energy, Water, Packaging, and Waste

• Processes based on alternative substrates

• Improved production processes

Sourcing OperationsSustainableSolutions

R&D

Towards an even more sustainable Lactic Acid process

The new gypsum-free Lactic Acid process uses less raw materials and results in less co-products

Demonstration plant for gypsum-free Lactic Acid process in Gorinchem, NL

26© 5/10/2012

Alternative substrates

Aim: Non-food substrates for non-food applications

Goal: A plant for producing PLA monomers using non-foodsubstrates by 2015

Corn stover

Corn cobs

Bagasse

EFB’s

Wood waste

Paper waste

27

Examples of potential substrates:

28

Towards a lower carbon footprint

Investments in new biobased chemicals

29© 5/10/2012

Purac has joined forces with the strongest

and most experienced chemicals intermediate

player in the world

30

Joint News Release 1 August 2011

BASF and CSM explore a bio-based succinic acid joint venture

The two companies will intensify their collaboration with the aim to become the leading supplier in the succinic acid market

LUDWIGSHAFEN, GERMANY and DIEMEN, NETHERLANDS, August 1, 2011 – BASF SE and Purac, a subsidiary of CSM nv, today announce the start of negotiations to form a joint venture for the production of bio-based succinic acid.

31

Succinic Acid as a platform chemical

32

Application fields of biobased Succinic Acid

Biopolymer Polyesters

PharmaFood

Polyamides Plasticizers

Coolants Deicers

Personal Care

Polyurethane

Fine Chemicals

Solvents

Fuel Additive

s

Intermediates

33© 5/10/2012 33