advances in industrial biotechnology and biorefining in industrial biotechnology and biorefining ......
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Advances inAdvances inIndustrial Biotechnology and Industrial Biotechnology and BiorefiningBiorefining
Matt CarrPolicy DirectorPolicy Director
Biotechnology Industry Organization
ACS National Meeting ACS National Meeting –– Engineering the Transition to the BioeconomyEngineering the Transition to the BioeconomyApril 10, 2008April 10, 2008
What is BIO?What is BIO?
• Biotechnology Industry Organization (BIO)
• Biotechnology trade association based in Washington, D.C.
• Over 1,100 member companies in all aspects of biotechnology
• Members in U.S. and 31 other countries
BIOBIO
Health CareHealth CareFoodFoodandand
AgricultureAgriculture
IndustrialIndustrialandand
EnvironmentalEnvironmental
What is IndustrialWhat is Industrial (White)(White)Biotechnology?Biotechnology?
The Third Wave in BiotechnologyThe Third Wave in Biotechnology
The Third WaveThe Third Wave
•• PharmaceuticalsPharmaceuticals–– well developed and growingwell developed and growing
–– over $20 billion in salesover $20 billion in sales
•• Agriculture BiotechAgriculture Biotech–– established and thriving in some marketsestablished and thriving in some markets
(e.g. U.S., Argentina, and Canada) (e.g. U.S., Argentina, and Canada)
NEXT WAVE:NEXT WAVE:
•• Fuels, Chemicals and ManufacturingFuels, Chemicals and Manufacturing
Industrial BiotechnologyIndustrial Biotechnology
• Application of life scienceslife sciences to traditional manufacturingmanufacturing and chemical synthesischemical synthesis
• Using micromicro--organismsorganisms(bacteria, fungi) and enzymesenzymes(specialty proteins) to improve manufacturing processes…
• …and make new ““biobasedbiobased””products and materialsproducts and materials from renewable feedstocks
Some Tools in theSome Tools in theIndustrial Biotech ToolboxIndustrial Biotech Toolbox
Genomics, Proteomics, and Genomics, Proteomics, and BioinformaticsBioinformatics
• Gene Shuffling
• High Throughput Screening
• Directed Evolution
• Metabolic Engineering
• Molecular Breeding
• Protein Engineering
• Extremeophiles
Our Ability to Cut and Paste Genes In Microbes Allows Us To Work in Tandem
With Nature’s Diversity Like Never Before
Industrial & Environmental Section Industrial & Environmental Section Member CompaniesMember Companies
Technology ProvidersTechnology Providers•Novozymes, Genencor, Codexis, Direvo
Feedstock ProvidersFeedstock Providers• Cargill, Tate & Lyle, Bunge, Ceres, Mendel
Chemicals IndustryChemicals Industry• DuPont, Dow, DSM, BASF, W.R. Grace
Biomaterials/Bioplastics IndustryBiomaterials/Bioplastics Industry• Natureworks, Metabolix
Biofuels IndustryBiofuels Industry• Abengoa, Iogen, Poet, BP, Chevron
Transforming theTransforming theTransportation Fuels IndustryTransportation Fuels Industry
BIOFUELSBIOFUELS
Industrial Biotech inIndustrial Biotech inBiofuels ProductionBiofuels Production
Industrial biotech is changing everything…
•• Starch EthanolStarch Ethanol– New enzymes for starch ethanol production
•• Cellulosic EthanolCellulosic Ethanol– Cellulase enzymes are making ethanol from
cellulose a reality
•• Higher Alcohols Higher Alcohols & Renewable Hydrocarbons& Renewable Hydrocarbons
– The future of fuels?
Starch Ethanol ProductionStarch Ethanol Production
New New ““nono--cookcook”” enzymes further enzymes further dramatically improving economicsdramatically improving economics……
Broin / Novozymes Process Broin / Novozymes Process for Corn Grain Ethanolfor Corn Grain Ethanol
• Advanced fractionation
• “No-cook” starch hydrolysis
Cellulosic Biomass: The New Cellulosic Biomass: The New ““Crude OilCrude Oil””
Corn stover
Wood chips
Sugar CaneBagasse
Salmassi and Leadbetter
The Pacific Dampwood Termite Zootermopsis angusticollis
Courtesy of Jared Leadbetter, CalTech, Pasadena, CA
DOE Integrated Biorefinery Demonstration ProjectsAwarded Feb 28, 2007, $385 million
150 ML ethanol + methanol
GasificationWood residues and wood-based energy crops
GeorgiaRange Range FuelsFuels
70 MLEnzymatic Hydrolysis
Wheat straw, corn stover, switchgrass, and rice straw
IdahoIogenIogen
110 MLEnzymatic Hydrolysis
Corn fiber, cobs, and stalksIowaPoetPoet
75 MLAcid HydrolysisSorted green waste and wood waste from landfills
CaliforniaBlueFireBlueFireEthanolEthanol
50 ML + power, H2, ammonia
Gasification-Fermentation
Yard, wood, vegetative wastes
FloridaALICOALICO
40 ML + powerEnzymatic Hydrolysis
Corn stover, wheat straw, milo stubble, switchgrass
KansasAbengoaAbengoaBioenergyBioenergy
CapacityCapacityTechnologyTechnologyFeedstocksFeedstocksPlant Plant
LocationLocationCompanyCompany
DOE Small-Scale Biorefinery ProjectsAwarded Jan 29, 2008, $114 million
Fischer-Tropsch diesel
wood wasteWisconsinNewPageNewPage
Biogasolagricultural and forest product residues
OregonPacific Pacific EthanolEthanol
Biochem-organisolvehard and soft wood residuesColoradoLignolLignolInnovationsInnovations
biochemical-thermochemical
corn fiber, corn stover, switchgrass and sorghum
MissouriICMICM
TechnologyTechnologyFeedstocksFeedstocksPlant Plant
LocationLocationCompanyCompany
Higher Alcohols &Higher Alcohols &Renewable HydrocarbonsRenewable Hydrocarbons
•• BiobutanolBiobutanol–– Higher energy density, but Higher energy density, but
toxic to microtoxic to micro--organismsorganisms
•• Green gasolineGreen gasoline–– Use synthetic biology to Use synthetic biology to
produce organisms capable produce organisms capable of generating renewable of generating renewable petroleum surrogatespetroleum surrogates
Biobased PlasticsBiobased Plastics
NatureWorksNatureWorks
–– Polylactic acid (PLA) via Polylactic acid (PLA) via fermentation from corn starchfermentation from corn starch
–– Marketed under brand name Marketed under brand name IngeoIngeo
–– Rapidly growing market share in Rapidly growing market share in fabrics and packagingfabrics and packaging
–– Agreement with WalAgreement with Wal--Mart to provide Mart to provide biobased plastic packagingbiobased plastic packaging
WorldWorld’’s First Biotech Fashion Shows First Biotech Fashion ShowBIO 2006 Annual Convention, ChicagoBIO 2006 Annual Convention, Chicago
Biobased PlasticsBiobased Plastics
DuPont / Tate & LyleDuPont / Tate & Lyle
• Bio-PDO (1,3-propanediol via fermentation from corn starch) under brand name SoronaSorona
•Biorefinery in Tennessee began production in late 2006 – 45 million kg per year production capacity – 100% sold out
• Polymer to be used for carpets, apparel, high-performance resins
Biobased PlasticsBiobased Plastics
Metabolix / ADMMetabolix / ADM
• Polyhydroxyalkanoates (PHAs) produced by micro-organisms fed with corn sugar
• Marketed under trade name MirelMirel
• Biodegradable in sea water
• Wide variety of applications
• Production to begin this year
Bacteria withplastic nodules
Soy Polyols
Cargill BiOH– Polyol derived from soybean oil
– Rapidly gaining market share in flexible polyurethane foams
– Winner EPA Green Chemistry Challenge Award
– 36% reduction in GHG emissions
RENEWABLE CHEMICALRENEWABLE CHEMICALPLATFORMSPLATFORMS
Sustainable Building BlocksSustainable Building Blocks
• At least 12 building block chemicals can be produced from sugars via biological or chemical conversions
• Many have excellent potential to compete with petrochemical equivalents
• Many new products possible with novel functionality or new applications
Top Value Added ChemicalsTop Value Added Chemicalsfrom Biomassfrom Biomass
Biobased 3HPBiobased 3HP
Cargill-Novozymes
• Announced in January agreement to develop breakthrough pathway from sugars to 3HP
3-Hydroxypropionic acid
Acrylic acid
1,3 Propanediol Acrylic esters
Poly(hydroxypropionate) or specialty polyesters
Malonic acid
Acrylic polymers
Acrylamide & hydroxyamides
Ethyl ethoxypropionate (EEP)
Cargill’s 3HP Chemical Platform Concept
Dextrose from Cornfeedstock
Microbial Conversion
CHEMICALS FROM CORN
CORN
CORNSTARCH
FIBERLevulinic acidFurfural and derivatives
Industrial starches
GLUCOSE
Fermentation Chemical conversion
Ethanol Others Gluconic acid SorbitolPolymers
H2O2
Lactic acidSuccinic acidCitric acidAcetic acidPropionic acidItaconic acidAromaticsAmino acids
LysineD,L-Methionine
1,3-propanediol2,3-butanediolABE
Starch copolymersXanthan gumAlginatesHydroxyalkanoate
PG, EGGlycerolSorbitanAscorbic acid
Syrups, sweeteners
Organic acids
FibersFibersMonomersMonomers
BioFuelsBioFuels
Green Solvents (ethyl lactate)Green Solvents (ethyl lactate)
LigninLigninPolyurethanesPolyurethanes
Organic AcidsOrganic Acids
PolyolsPolyols
PolymersPolymers
PolyestersPolyesters
Specialty ChemicalsSpecialty ChemicalsAgricultureAgriculture
Amino AcidsAmino Acids
PharmaceuticalPharmaceuticalPrecursorsPrecursors
HighHighPerformancePerformance
MaterialsMaterials
NylonNylon
EthanolEthanol
Feed AdditivesFeed Additives
It’s Not Just About Ethanol!
Lactic AcidTechnology
and Capabilities
BiorefiningBiorefining
Propylene GlycolPropylene Glycol
• New joint venture to develop and produce biobased chemicals
• First product will be propylene glycol (PG) from glycerin, an abundant co-product of biodiesel production
PolyethylenePolyethylene
Braskem
• Will begin producing 200,000 tons per year of biobased polyethylene from sugarcane (2009)
Dow
• Partnering with one of Brazil's largest ethanol players (Crystalsev) on 350,000 ton sugarcane ethanol to polyethylene plant (2011)
BiocatalysisBiocatalysis
IntermediatesIntermediates
SpecialityChemicalsSpecialityChemicals
Bulk chemicalsBulk chemicals
Amino acidsAmino acids
VitaminsVitamins
Biocatalysis
Chiral Compounds
PharmaceuticalPharmaceuticalManufacturingManufacturing
•• Reduce input costs 35% Reduce input costs 35% -- 65% 65% •• Reduce capital expenditures by over 25%Reduce capital expenditures by over 25%•• Ten strategic alliancesTen strategic alliances•• Patented production process for LipitorPatented production process for Lipitor•• 15 potential products and processes in R&D pipeline15 potential products and processes in R&D pipeline
Codexis has developed biotech routes for Codexis has developed biotech routes for producing and discovering pharmaceuticalsproducing and discovering pharmaceuticals
Already 5% of chemical sales dependent on biotech today
• Biotech dependent (examples)
• Sales value
• (USD billion)
• Alcohols, organic acids
– Ethanol
– Citric acid
• Amino acids– Glutamic acid
– Lysine
• Vitamins– Vitamin C
– Vitamin B2
• Specialties– Enzymes
– Flavors and fragrances
• 15.0
• 2.0
• 1.5
• 1.0
• 1.0
• 0.3
• 2.0
• 1.5
5% of today'schemical salesalready rely on
biotech
• Pharma chemicals
– APIs, advanced and basic intermediates • 7.5
–Major activities of all large players through acquisitions, alliances/JVs and R&D
–Opportunities to enter biotech via M&A or collaborations decreasing due to consolidation
From McKinsey and Company
– Invested in biocatalytic production of chiral
intermediates• BASF
– USD 18 million for project house biocatalysis – Acquired Aventis Research & Technologies – 10% of USD 450 million R&D budget on biotech
research
• Degussa
– Plans to invest USD 260 million in cell culture vessel• Boehringer
Ingelheim – Invests USD 180 million in mammalian cell
culture and will expand microbial fermentation • Lonza Group
– Acquired NSC Technologies for USD 125 million• Great Lakes
– Will expand cell culture and microbial fermentation
– Plans a facility for purification of transgenic products
– Expands biotech development groups
• DSM
Large Playersalready heavily investing and
new opportunities are decreasing
Large Playersalready heavily investing and
new opportunities are decreasing
MarketPotential
• McKenzie and Co. estimates show that about 20% of the chemical market (US$280 Billion) could be biotech production by 2010
• The total value creation potential in the chemical industry alone could be as high as $160 billion US by 2010
The Perfect Storm
EnablingGovernment Policy
Ready Technologies
Economic PressureMarket Pull
Lack of Energy Security
Increased Demand for Biobased Products
GlobalCompetition
Why Industrial Biotech?Why Industrial Biotech?
FeedstocksFeedstocks
–– ReliableReliable
–– LowLow--costcost
–– DomesticDomestic
–– AbundantAbundant
1.3 billion tons of biomass potential in US*1.3 billion tons of biomass potential in US*•• Enough for 165 billion gallons of biofuels (40 x current)Enough for 165 billion gallons of biofuels (40 x current)
•• Could theoretically meet 100% of current US gasoline Could theoretically meet 100% of current US gasoline demand of 140 billion gallons per yeardemand of 140 billion gallons per year
*U.S. Department of Energy*U.S. Department of Energy
Environmental ProfileEnvironmental Profile•• BioplasticsBioplastics**
–– Could cut US petroleum consumption by Could cut US petroleum consumption by 145 million barrels/year145 million barrels/year
–– Compostable: could cut plastics in waste Compostable: could cut plastics in waste stream by 80%stream by 80%
•• Cellulosic EthanolCellulosic Ethanol–– Could cut US GHG emissions 22% by 2050Could cut US GHG emissions 22% by 2050
•• Enzyme bleachingEnzyme bleaching (paper, textiles)(paper, textiles)**–– Reduces chlorine use 10Reduces chlorine use 10--15%15%
–– Cuts energy use 40%Cuts energy use 40%
–– Cuts water use 18%Cuts water use 18%
**New Biotech Tools for a Cleaner EnvironmentNew Biotech Tools for a Cleaner Environment(available at (available at www.bio.org/indwww.bio.org/ind))
Why Industrial Biotech?Why Industrial Biotech?
Why Biobased?Why Biobased?
CostCost–– Ethanol now as cheap or cheaperEthanol now as cheap or cheaper
to make than gasolineto make than gasoline•• Corn grain ethanol: $1.20 / gallonCorn grain ethanol: $1.20 / gallon•• Crude oil @ $60 / barrel = $1.42 / gallonCrude oil @ $60 / barrel = $1.42 / gallon
before refinement into gasolinebefore refinement into gasoline
–– Bioplastics now as cheap orBioplastics now as cheap orcheaper than petroleumcheaper than petroleum--basedbasedalternativesalternatives
•• WalWal--Mart to switch to PLA for itsMart to switch to PLA for its114 million clam114 million clam--shell containersshell containers
Why Biobased?Why Biobased?
NEW INDUSTRIAL
BIOTECH PROCESS
One Step Fermentation with genetically modified micro-organism
VITAMIN B2
Revolutionary Technology:Revolutionary Technology:
Vitamin B2 Production
OLD CHEMCIAL
PROCESS
Many Steps
Glucose
Ca-Arabonate
Ca-Ribonate
Riobolactone
Ribose
Ribitylxylidine
Phenylazo-RX
VITAMIN B2
Vitamin B2:Vitamin B2:How Biotech Made a DifferenceHow Biotech Made a Difference
•• Hazardous waste generation and land Hazardous waste generation and land disposal of hazardous waste greatly disposal of hazardous waste greatly reduced by over 70%reduced by over 70%
•• Waste to water discharge reduced 66%Waste to water discharge reduced 66%
•• Air emissions reduced 50%Air emissions reduced 50%
•• Production Costs reduced by 50%Production Costs reduced by 50%
Why Industrial Biotech?Why Industrial Biotech?
Politics and PolicyPolitics and PolicyNational security, unemployment, rural economy concerns = National security, unemployment, rural economy concerns =
Increasingly supportive federal, state policies:Increasingly supportive federal, state policies:
–– $150 million Presidential Biomass Initiative$150 million Presidential Biomass Initiative•• Announced in State of the Union addressAnnounced in State of the Union address
–– $385 million Biorefinery Demonstration Program$385 million Biorefinery Demonstration Program•• Announced by Department of Energy in FebruaryAnnounced by Department of Energy in February
–– Federal Biobased Preferred Procurement ProgramFederal Biobased Preferred Procurement Program
–– State biomass initiativesState biomass initiatives
–– Eventual climate change legislationEventual climate change legislation
Value Creation &Climate Change
• Significant pollution prevention benefits, including CO2 reductions
• GHG regulation will favor biobased
• Companies using industrial biotech will be able generate marketable CO2 credits or create internal regulatory flexibility
Bioplastics: NatureWorks PLA
7.9
3.4
6.8
3.4 3.4
1.9
3.2
1.7
0.00
1
2
3
4
5
6
7
8
9
Nylon 66 HIPS Cellophane (film)
GPPS PET SSP PP PET am PLA 2005 PLA2006/2007
The use of a renewable feedstock + the purchase of RECs allows NatureWorks PLA to achieve GHG neutral
PlasticsEuropePLA1 PLA1
w/RECs
[lif
ecyc
le k
g C
O2
eq./
kg
po
lym
er]
• 20-80% reduction vs. petroleum competitors
Who Will Benefit in theChemical Space
• Large players with broad skills in biotech or good biotech partners will capture the full value creation potential
• Smaller players can benefit by partnering with each other or larger players or by forging strategic partnerships with industrial biotech companies
5th Annual World Congress onIndustrial Biotechnology and Bioprocessing
April 27-30, 2008
Chicago, IL
SAVE THE DATE!
www.bio.org/worldcongresswww.bio.org/worldcongress