MURRAY MCLAUGHLIN, PhD

Bioindustrial Innovation Centre

Bioeconomia Argentina 2013

21-22 de Marzo,2013

Buenos Aries, Argentina

OUTLINE -Change -Canada’s opportunity -BIC Briefly -Clusters -Hybrid Chemistry/Sarnia -Success Factors -Summary

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A LANDSCAPE OF CONSTANT

CHANGE

“The ability to learn faster than the competition is often the only sustainable competitive advantage a company (or country) can have.”

Arie de Geus

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Canada’s Strategic Advantages Abundance of biomass - agricultural and forestry

Governments with strong interest in the sector

Research and Development facilities to provide support

An educated workforce

Industry partners available as partners to commercialization

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Canada’s Unique Position

Has large amounts of biomass in the agriculture and forestry sectors

Has the abilities to harvest, collect and process biomass

Has processing and manufacturing expertise necessary for developing a bio-products industry

Is export oriented for processed products

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Global Trends Give Canada a Leadership Position Agriculture Forestry Biomass is the Key

Ingredient and Canada has Large amounts of Agricultural and Forestry

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Bio-Hybrid Clusters Across Canada Today

Converging Traditional and Bio-Based Industry

Drayton Valley • CO2 Capture + Conversion • Forestry and oil/gas • Infrastructure • Agri and Forest Biomass

Saskatoon • Internationally Renown

Agricultural Reputation • Innovation Place • Infrastructure • Agri Biomass

Sarnia-Lambton • First BioHybrid Cluster • Petrochemical, Energy,

Manufacturing Infrastructure • Close to Markets • Agri and Forest Biomass

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Future Bio-Hybrid Cluster Building Across Canada

Edmonton

Guelph & Eastern Ontario

Winnipeg

Northern Ontario

Montreal/Quebec

Atlantic Canada

British Columbia

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New Opportunities

New Opportunities are emerging from innovations in science and technology, emerging water and carbon markets, more productive crop varieties, and a growing demand for “clean and green” products.

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Canadian Support Programs Sustainable Development Technology Fund

Agriculture and Agriculture Food Canada – Agriculture Innovation Programs(AIP)

Business Development Corporation (BDC)

Farm Credit Corporation

Export Development Corporation

NSERC –National Centres

Provincial Programs

Regional Programs

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Support Associations Bioindustrial Innovation Centre

Biotech Canada

BioEconomy Network

Canadian Renewable Fuels Association

Canadian Biomass Innovation network

Chemistry Industry Association of Canada

Provincial Associations

Fibre Network of NCE’s

Others

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Bioindustrial Innovation Centre

University Western Sarnia Lambton Research Park, Sarnia, Ontario

BIC is a Centre of Excellence for Commercialization and Research at the Park

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Sustainable Chemistry Alliance Fund

BIC partnered with SCA Investment Fund– The Bio-industrial Innovation Center

SCA investment fund is an investment vehicle for demonstration scale of green and sustainable technologies across Canada

SCA and BIC have partnered together to provide advice, investments and be a catalyst to start-up companies in bioindustrial sector

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Delivering Commercialization by Bridging Gaps

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BIC and SCA can help: 1. Early Stage Financing 2. Connectivity 3. Readily accessible critical

skills 4. Mitigate sectorial risk 5. Inspire investor and

stakeholder confidence

By connecting companies and investing in sustainable chemistry

• Creating sustainable jobs, environmental sustainability, economic wealth

Supporting development of biohybrid chemistry clusters

• Through strategic connectivity though the business value chain

Achieving our Vision, Delivering on our National Mandate

Opportunities Successful

Results

More Opportunities

Positioned to do More, Repeat

… This is what we do

VALUE DRIVEN (sustainable economics, sustainable jobs, environmental sustainability) FOCUSED ON DELIVERING COMMERCIALIZATION

A B

Results to date – a business in motion

BIC/SCA

$5.3 M Seed

$141 M Matching Investments

Job Creation • 212 Full Time • 1125 Indirect • 623

Construction

A Balanced Sustainable Chemistry Portfolio

BioHybrid Clusters

Environmental Sustainability

Strategic Alliances in Sustainable BioHybrid Clusters

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Taking an active role through: 1. Connectivity 2. Alliances 3. Strong sectorial

experience 4. Established networks 5. Investor and

stakeholder confidence

Energy

Connecting to Accelerate Commercialization

BIC/SCA

Agriculture

Forestry

Govern- ments

Industry Finance

Not for Profit

R & D

Business and

Technical Services

Invested Companies

Prospective Investments BioHybrid

Clusters

Filling Critical-to-Success Gaps with our Connectivity – Partners, Expertise, Financing

Ontario Research

Fund

Agriculture

Adaptation Council

Agricultural

Research Institute

of Ontario

BioProducts

Discovery Centre

Grain Farmers

of Ontario

Ontario Federatio

n of Agricultu

re BioIndustrial

Centre

BioteCanada

Agris Cooperati

ve

Sugar Beet

Association

Soy 20/20

AGF/Acuity

CIBC World

Markets

Jacobs Securities

Byron Securities

National Bank

Scotia Capital

MacKie Research

Front Street

Capital

MacQuarie

Investeco

Growth Works

Cycle Capital

National Research Council

Green Centre Canada

MaRs Alberta

Innovates

CRIBE

Ontario BioAuto Council

Auto21 OBAC

IUPAC

CCEMC

Centre for

Demoncracy

Centre for

Innovative Studies

LANXESS

SGF

DuPont NOVA

Chemicals

Suncor Renewable Energy

Ethyl Corporati

on Canada Light

Source

University of

Waterloo

University of

Toronto

University of

Western Ontario

Calgary Universit

y

University of

British Columbi

a

University of

Ottawa Lambton College

Guelph Universit

y

Jacobs

Worely Parsons

SNC Lavalin

Tecsar

Zeton

Paton Controls

Chemical Industry

Association Canada

Canadian Petroleum Products Institute

Canadian Plastics Institute

Association

FP Innovatio

ns

Life Sciences

OntarioAgriculture and Agri

Foods Canada

CF Industries

Shell

Ontario Power

Generation

TransAlta

INEOS

Spectra Energy

Pembina Energy BioAmber

EcoSynthetix

NewAlta

BIC/SCA

BIC

SCA

BioAmber

EcoSynthetix

Azule BDR

CORE BioFuel

S4CO2

Vive Renix

Duropar

GreenCore

Woodland

Invested Companies

Prospective Investment

s

BioHybrid Clusters

Federal Government

Provincial Government

Primary chemicals

Manufacturing & Assembly

End user

Finished products

Refiner Fossil-based Feedstock

Polymers & Chemicals

Bio-based Feedstock

Biomass processing

Creating a Bio-Hybrid Chemical Cluster Allowing Sarnia and Canada to establish the value chain

Bio-based Feedstock &

chemicals

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Creating a Bio-Hybrid Chemical Cluster Why it can work in Sarnia and Lambton County

Sarnia

Automotive and Manufacturing

– Located near to the leading automotive producing region in North America with access to major markets

– Manufacturers such as Magna and Woodbridge exploring bio-based parts

Chemicals, Materials, Energy

– $6 billion CDN in traditional chemical shipments from Sarnia alone, plus Canada’s largest ethanol plant, with potential for much more

– Pipelines from Western Canada, Eastern Canada and the US

Significant Research & Development in Ontario

– Over 20 universities in Ontario -- one of the world’s strongest clusters of education and research with highly qualified personnel

– Significant innovation and expertise in biofuels, bio-products,biomass and agri-food technologies

Agriculture, Forestry resources

– Strength in soybeans, corn, and wheat

– Availability of diverse biomass resources with excellent logistics

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Canada’s existing Chemical industry in Sarnia forms the foundation for the Cluster with:

• access to energy, skilled labour and highly qualified personnel

• pipelines for raw materials and finished products

• rail, road and water transportation options available

• ready access to North American markets

Ontario’s farmers and foresters harvest and provide the biomass needed

Available Brownfield land developed into biochemical businesses such as:

• primary chemicals from bio-based sources (isobutene, succinic acid, levulinic acid, etc.)

• polymers, advanced chemicals/fuels and materials

• biomass production from local CO2 sources for use as fuels and chemical feedstock

• energy generation from biomass

A Bio-Hybrid Chemical Cluster in Sarnia What does it look like?

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•80% of Ontario soybeans and corn within 200km

Sarnia Bio-Hybrid Cluster Companies Fossil Based

• Air Products • BP Energy • CF Industries • DuPont • Ethyl

Corporation • Exxon-Mobil • INEOS • LANXESS • NOVA Chemicals • Ontario Power

Generation • Pembina • Praxair • Royal Dutch Shell • Suncor Energy • TransAlta Energy

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Bio/Renewable Based

• Azule Fuel • BioAmber • Cargill • Bluewater Power • Greenfield

Ethanol • Methes Energy • KmX • Solutions4CO2 • Suncor Ethanol • Woodland Biofuels • Envirofresh

Greenhouses

Sarnia Lanxess Bio-Industrial Park/ TransAlta Bluewater Industrial Park

Access To: power, infrastructure, steam and power, marine terminals, waste water treatment and business services in established industrial areas

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Hybrid Chemical Success Factors

Economics –price and market

Performance – means matching /exceeding petroleum version of chemicals

Environmental aspects are typically valued as added benefits – sustainability; health

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The Transformation Century The unprecedented convergence of change in

demographics, science, technology, governments and public attitudes is radically changing life on Earth, in countries , and in the industrial community

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SUMMARY

We are in a world of CHANGE, rapid Change, which provides us with a tremendous opportunity as a nation to be global leaders

The Opportunities: 1. An opportunity to demonstrate global leadership in bio-based and

sustainable industries through cluster establishment.

2. An opportunity to integrate the fossil based, non-fossil and biogenetic industries by encouraging hybrid development as a cluster

3. An opportunity to create a national sustainability strategy to add value to regional and Canadian natural resources by building clusters

4. An opportunity to create global partnerships to ensure benefits to all members of the value chain.

What are the opportunities with Canada-Argentina?

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Questions -Discussion

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