Revenues from residues –

Sustainable Production of Advanced Biofuels, Platform Chemicals and Biocoal from local renewable biomasses using 3G biorefining technology

Pasi Rousu; President, Chempolis Asia & Pacific pasi.rousu@chempolis.com; Tel +358 (0)10 387 6666

CONTENT OF THE PRESENTATION

• Background information about Chempolis • Why and how should non-food raw materials be used? • Why should 3G biorefining be selected?

Copyright © 2012 Chempolis. All Rights Reserved.

CHEMPOLIS IN BRIEF
• Chempolis, established in 1995 in Finland, is a technology leader providing innovative and sustainable solutions for the biofuel, alcohol, sugar, palm oil, energy, biomass, paper and (petro)chemical industries. Chempolis’ mission is to save natural resources, combat climate change and reduce environmental pollution Chempolis’ core products are formico® biorefining technologies, which enable economical, energy-efficient and environmentally sustainable production of advanced non-food biofuels, biochemicals, biocoal and high quality fibres The key features of Chempolis’ technologies have been recognized and awarded both in Finland and internationally Chempolis’ third generation formico® technologies are now ready to be used in industrial production of cellulosic ethanol, platform chemicals, biocoal and fibres Chempolis owns and operates 3G biorefinery in Finland

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Copyright © 2012 Chempolis. All Rights Reserved.

THE BIOREFINING TECHNOLOGY CORPORATION

Chempolis is private independent medium sized company (est. 1995) who supplies sustainable globally patented biorefining technologies, which has been acknowledged by World Bank, DoE, UPM, BASF & many customers • • formicobio™ the non-food cellulosic ethanol technology formicofib™ the non-wood fibre technology
Copyright © 2012 Chempolis. All Rights Reserved.

3G formico® BIOREFINERIES MAKE SUSTAINABLE RESULTS
Environmental sustainability • use of residual biomasses • preservation of food, forests, water & fossils • effluent free and reduction of CO2 • reduction of pollute burning of biomass in fields • nutrient circulation as organic fertilizer Social sustainability • food for people not for cars • local farming and supply of biomass • local production and use of products Economical sustainability • highly profitable • low operating and investment costs • many high quality products • true 3G platform

Social Sustainability

Non-wood and Non-Food biomasses

raw materials

end products

Bioethanol, Biochemicals and Paperfibres

formico® biorefineries

Environmental Sustainability
formico® technologies

Economical Sustainability

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CO2 EMISSION REDUCTIONS VS. VARIOUS BIOETHANOL PROSESSES
Non-food cellulosic ethanol can considerably reduce consumption of fossil fuels and CO2 emissions of traffic • Food-based biofuels cannot considerably reduce CO2 emissions • Food crops are wrong raw materials for biofuels and for the replacement of fossils

Source: Renewable Fuel Standard Program (RFS2) Regulatory Impact Analysis. United States Environmental Protection Agency

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GLOBAL POTENTIAL OF NON-FOOD RAW MATERIALS
100 EJ = 2388 Mtoe

Sources: - FAO statistical yearbook - Key World Energy Statistics from the IEA - Berndes et al. Biomass and bioenergy 25(2003):1-28 Copyright © 2012 Chempolis. All Rights Reserved.

Copyright © 2012 Chempolis. All Rights Reserved.

HOW FEEDSTOCKS SHOULD BE USED?
• Sustainable availability in long term perspective
• Non food residue, which does not compete in land use • Need to be secured in low price and large quantity • Nutrient circulation

• Rice and wheat straw, corn stover, EFB, OPF, bagasse are the most potential raw materials and not well utilized • However competition with biomass power takes place
• Lack of power in many countries • Switch from fossils to biomass • Condensing power ~ burning of money

It is crucial to identify the most sustainable use of biomass in long term perspective

YIELD OF BIOMASS [BDMt/a] IN SELECTED ASIAN COUNTRIES
Generation of agricultural residues sums up to 1415 BDMt/a. Usage of 30 % of such residues in 3G biorefining would enable bioethanol production of 68 Mt/a in ca. 1360 biorefineries
Cereal Bagasse straw China India Indonesia Malaysia Philippiness Thailand 726 371 126 4 33 54 19 43 4 5 10 EFB 10 10 -

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YIELD OF BIOMASS [BDMt/a] IN SELECTED ASIAN COUNTRIES
Biomasses in India: • Generation of agricultural residues BDMT/a: 413.3 • Straw and bagasse • If 27 % of the available residues were used in 3G biorefining • it would enable bioethanol production of 18 Mt/a ethanol in ca. 400 biorefineries • Replace completely gasoline by cellulosic ethanol and reduce imports of crude oil by 25% • Reduce CO2 emissions by 40 Mt/a Biomasses in China: • Generation of agricultural residues BDMT/a: 744.5 • Straw and bagasse • If 30 % of the available residues were used in 3G biorefining • it would enable bioethanol production of 36 Mt/a ethanol in ca. 720 biorefineries • Replace 37 % of gasoline by cellulosic ethanol and replace current unprofitable 1G ethanol production • Reduce CO2 emissions by 8 Mt/a Biomasses in Thailand: • Generation of agricultural residues BDMT/a: 64 • Straw and bagasse • If 30 % of the available residues were used in 3G biorefining • it would enable bioethanol production of 3 Mt/a ethanol in ca. 60 biorefineries • Replace 40 % of gasoline by cellulosic ethanol and replace current unprofitable 1G ethanol production • Reduce CO2 emissions by 8 Mt/a

Biomasses in Philippines: • Generation of agricultural residues BDMT/a: 38.3 • Straw and bagasse • If 30 % of the available residues were used in 3G biorefining • it would enable bioethanol production of 1.8 Mt/a ethanol in ca. 36 biorefineries

Biomasses in Malaysia: • Generation of agricultural residues BDMT/a: 13.9 • Straw and EFB • If 30 % of the available residues were used in 3G biorefining • it would enable bioethanol production of 0.7 Mt/a ethanol in ca. 14 biorefineries

Biomasses in Indonesia: • Generation of agricultural residues BDMT/a: 140 • Straw, EFB and bagasse • If 30 % of the available residues were used in 3G biorefining • it would enable bioethanol production of 6.7 Mt/a ethanol in ca. 134 biorefineries

Copyright © 2012 Chempolis. All Rights Reserved.

formico® - THE TRUE 3G PLATFORM
Cellulose Products

Paper fibres
Paper, board, tissue

High value fibres
Viscose, CMC, Nano

Glucose
Non-Food and Non-Wood biomass
Ethanol, butanol Lactic acid, succinic acid

Hemicelluloses Products

Cellulose Hemicellulose Lignin, nutrients

Pentose sugars
Xylose, arabinose

Platform chemicals
Acetic acid, furfural, Ethanol Lignin Products

3G formico® biorefinery integrates biomass conversion processes and equipment to produce fibres, multiple fuels, power, heat and chemicals from biomass 3G biorefinery concept is analogous to today's petroleum refinery, which produces multiple fuels and products from petroleum formico®

Lignin
Polymers, plastics

Biocoal
Steam, electricity

Nutrients
Fertilizer

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formicobio™ TECHNOLOGY
Biosolvent Non-food biomass formicodeli™ Washing Hydrolysis Fermentation & distillation Water Ethanol

Water Evaporation formicopure™

Acetic acid Furfural

Biocoal
Power plant

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WHY 3G formicobio™ IS SUPERIOR SOLUTION FOR CELLULOSIC ETHANOL
• Innovative biosolvent selectively fractionates biomass to its key components:cellulose, hemicellulose, lignin and ash
• Generates 40 % more sales revenues than 2G technologies due to high conversion rates and multi product platform • Low pressure and temperature operation • Energy self-sufficiency and no need of fossil fuels • No pollution; full recovery of chemicals and water • 95-98 % removal of lignin and hemicellulose

• Hydrolysis of clean open structure cellulose fibre to glucose is very easy and less enzymes are needed • Fermentation of pure glucose is easy • Proven in mill scale in Finland
Copyright © 2012 Chempolis. All Rights Reserved.

WHY 3G BIOREFINERY?
• Global, mandated demand for products of biorefineries, especially advanced biofuels • formicobio™ integrates social, environmental and economic sustainability • Approx. +40 % higher sales revenues than in 2G • Approx. -15 % lower operation cost than in 2G • Outstanding profit and short payback time • Proven
Copyright © 2012 Chempolis. All Rights Reserved.

CONCLUSIONS
• Liquid transportation fuels, especially cellulosic ethanol, are needed to reduce the dependency on fossils • Biomass conversion value should be as high as possible like in 3G biorefining and “Wrong” use of biomass should be avoided • Food based biofuels are the first step to start, which after biorefineries will take place • Cellulosic ethanol demonstration projects should be quickly executed in each country • Only first projects need finance, which after business is sustainable! • Great interest and opportunities in Asia!

The future is

BIOREFINING
Pasi Rousu; President, Chempolis Asia & Pacific pasi.rousu@chempolis.com; Tel +358 (0)10 387 6666