Opportunities in Biomaterials

Daniel N. RobinIntegrated Investments International (In3)

Commercializing Food-Friendly BioRenewables since 1996

Online: In3inc.com * Email: drobin@in3inc.com * +1(831) 761-0700

© 2008 Daniel Robin & Associates / In3 – all rights reserved worldwide

Green Trade Network Summit

Sept 19, 2008

Agenda• What We Do

• Definition: Biomaterials, Bioplastics

• What’s the problem?

• Why bioplastics?

• State of int’l biomaterials market

• Key applications and suppliers

• Int’l Trade Opportunities

• Q & A

BioRenewables commercialization, consulting & partnerships

Exclusive focus on sustainable business and “cleantech” since 1985Bioplastics technology transfer (Germany to US) and finance since 1996

Services:

• Market/Competitive Analysis & Intelligence

• Business Development, sustainability metrics, plans & reports

• Investment Strategy, Partnerships

• Workshops, Coaching, Group Facilitation

More at www.in3inc.com/about.html

What We Do

What’s the problem?

Single feedstock dependency

www.chrisjordan.com/current_set2.php

Depicts 60,000 plastic bags, used every five seconds

2,000,000 plastic bottles, used every 5 minutes

Plastics Industry IssuesPlastics Industry Issues

• Diamonds are forever? So are plastics!Diamonds are forever? So are plastics!– No eco-effective end-of-life solutionNo eco-effective end-of-life solution– Many compounds are toxic Many compounds are toxic andand persistent persistent

• Petroleum price shocks Petroleum price shocks

• Energy to manufacture Energy to manufacture greenhouse gases greenhouse gases

• Boiling frog effect; risks & liabilities …Boiling frog effect; risks & liabilities …– Consumers and governments are demanding Consumers and governments are demanding

safer alternativessafer alternatives, using precaution, using precaution– Many plastic additives and products are being Many plastic additives and products are being

restricted or banned outrightrestricted or banned outright

Illustration by David Simonds

Big problems often translate into big business opportunities

Ventures worldwide are using advanced, renewable materials to gain competitive edge.

For suppliers and retailers, biomaterials provide a way to reduce industrial waste & avoid regulatory headaches.

Definition: Bioplastics

“Bioplastics” are polymers that can be processed by established technologies and are either

1. Biobased – from renewable raw materials(recently fixed vs. fossil carbon)

or …

2. Biodegradable per accepted industry standards – EN 13432 or ASTM D6400 – usually this means composted

Design Goal: Durability, not Immortality

Classic film clip of Henry Ford, 1941whacking an early soy composite bumper

Bioplastics are not a new idea

Why didn’t they take off then?

What’s driving their adoption now?

Who is leading?

Applications for Bioplastics, Biocomposites, Biopolymers

AUTOMOTIVE Components, Coatings, Interiors

Applications for Bioplastics, Biocomposites, Biopolymers

AGRICULTURE

Applications for Bioplastics, Biocomposites, Biopolymers

FOOD Service & Product Packaging

EcoBags

Applications for Bioplastics, Biocomposites, Biopolymers

100% Ingeo draperies

Body of Sony Walkman

Industry ScanA. Commercially Viable Biopolymers

1. NatureWorks LLC –

2. Novamont SpA– MaterBi

3. Cereplast – starch-based family of resins

Began as a $750 million JV (Cargill and Dow) in early 2000Dow exited 2005.

Early Oct 07, Japan’s Teijin took a 50% JV interest.

NatureWorks LLC

Current market leaders ~300M lbs/yr of Polylactic Acid (PLA)

NatureWorks LLC

NW did not invest in compounding technology, leaving a hole (and significant opportunity) in the market

Wal-Mart’s Sam’s Clubs put BioPlastics on the commercial map in 2006

Novamont MaterBi

European Inventor of the Year 2007

Public Relations MeetingJuly 14, 2006

Industry ScanWho are the main players?

A. Commercially Proven Solutions1) NatureWorks Ingeo

2) Novamont MaterBi

3) Cereplast

B. Innovative but unproven – PHAs, polyols, etc.

E.g., Telles Mirel™ (JV with Metabolix and ADM)

C. Emerging, advanced materials such as monolayers,

colloidal “green” chemistry and other important trends

Current Stage of Biopolymer DevelopmentIndustry Status as of Spring 2008

Confidential Content – contact Daniel Robin at In3 for details

Industrial scale

Large scale plant

Commercially available

Pilot Plant

DevelopmentResearch Industrial scale

Large scale plant

Commercially available

Pilot Plant

DevelopmentResearch

Success Keys in BioRenewables

All ag waste / byproducts / biomass = opportunity

Radical innovation … get disruptive!

Use “biorefinery” approach: multiple revenue streams

NatureWorks Biorefinery

Industrial Biorefining

• Integrated biomass conversion processes and equipment

• Spectrum of co-products… – Bioenergy & fuels, – Value-added chemicals/biomaterials– Food, feed, nutraceuticals, etc.

• Leverages components and intermediates to maximize value

Variables:• Location (regional

feedstock)• Capital equipment• Flexibility• Scale

Industrial Biorefining

Questions?Questions?

What will you do on Monday morning?

Opportunities in Biomaterials

Daniel N. RobinIntegrated Investments International (In3)

Commercializing Food-Friendly BioRenewables since 1996

Online: In3inc.com * Email: drobin@in3inc.com * +1(831) 761-0700

© 2008 Daniel Robin & Associates / In3 – all rights reserved worldwide

Green Trade Network Summit

Sept 19, 2008