Commercial Plant-based Plastics in packaging and durable applications Edward Kosior, Managing Director Nextek Ltd Plants as Providers of Fine Chemicals – Bangor University th August 2012

NEXTEK Ltd - What we do & key areas of expertise Technologies for material separation and recycling into high value products Recycling of post consumer plastics, laminates and films Recycling process design and optimisation of recycling plants Expertise in market development for recycled materials Developing value added products from complex plastic wastes Research and development of novel materials and processes including plastics and bioplastics Successfully completed extensive and ground breaking projects for governments and major commercial organisations in the EU, UK, Middle East, Canada and Australia/NZ More than 30 major projects for UK Government agencies in collaboration with scientific centres of excellence in the UK and Europe 2012 Copyright Nextek Limited 2012 Resource Recycling and Resource Innovation 2

Nextek Limited Creating Sustainable Solutions in Polymers & Recycling Examples of our work  Development of PET HDPE recycling plant for Closed Loop Recycling in London, UK (2005)  Large Scale Demonstration of Viability of Recycled PET (rPET) in Retail Packaging (2005)  Large Scale Demonstration trial of recycled HDPE into Milk Bottles (2006)  Development of light weight compostable packaging for Supermarkets (2007)  Household Mixed Plastic Packaging Sorting Project ( )  Commercial Scale Mixed Plastics Recycling Trial (2008)  Development of NIR Detectable Black Plastics (2010)  Recycling of Commingled Post-Consumer Films (2010)  Design of a PET and HDPE food grade recycling plant in Australia ( )  Development of a Food Grade Recycling Process for Post-Consumer PP (2011) Copyright Nextek Limited

Topics Outlook for Bio-derived Plastics Drivers for Bio Plastics and their limitations Brand Owners and Retailers – Agendas Major plastics materials made from Bio resources Key technologies for monomers and Polymers Opportunities for large scale European initiatives 4

Abstract There has been a rapid expansion of commercially important plastics that now incorporate significant amounts of plant based chemicals as brand owners and manufacturers of automobiles and appliances have embraced the marketing impact generated by renewably resourced plastics. While some of these plastics are partially or completely bio-based versions of petro- based polymers (especially Nylons, Polyethylene and PET) with commercially viable properties, others such as PLA, PHA’s are still facing technical and cost challenges before they become widely used Other emerging trends include completely new polymers based on furanic derivatives that are designed to take the place of existing aromatic polyesters and the development of synthesis routes to make terephthalic acid from plant sources for PET in the quest to use 100% renewable feedstocks for plastics that have well characterised processing and mechanical properties. These developments will provide new opportunities to develop European manufacturing facilities to supply local bio-based monomers. 5

Overview of bio-derived feedstocks and polymers 6

Outlook for Bio-derived Plastics Global demand for plastics in 2011 was 205 million tonnes (BPF) Global production capacity for PLA (Polylactic Acid) is expected to be 800,000 tonnes by 2020 (Nova Institute 2012) The largest producer of PLA is Natureworks which has a capacity of 140,000 tonnes in USA and Thailand. USA demand for bioplastics predicted to grow at 20% through 2016 to reach 249,000 tonnes valued at €552 million (Freedonia Group 2012) Biodegradable resins account for the majority of bioplastics in 2011 but non- biodegradable resins will grow to 40% of the market by Major growth will be bio-based Polyethylene as well as bio-based PET and PVC 7

Global outlook for Bio Plastics total market 8

Marks and Spencer and Plantic

Innovation Examples Jordan’s Cereals Use multi-layer bioplastics Replacing OPP/PE laminate Innovia Films (cellulose) on the outside Moisture barrier, clarity / excellent printability Mater Bi (starch) film inside (Starch provides strength & sealability) Best of two bioplastic materials Other common examples: Starch/PCL films; Cellulose films; Starch trays, sugar cane trays; (All home compostable)

Source: Innovia

Flexible Packaging Opaque starch based films Clear cellulose based films PLA films Sources: Innovia; Novamont; Amcor Sainbsury’s; NatureWorks TM

Sugar cane trays & cellulose films

Starch based films & bags

The GM issue persuaded many supermarkets to avoid PLA Recycling of PLA was not feasible PLA in landfill sites would not biodegrade but over time create methane Companies reverted back to RPET bottles and sheet applications PLA used in sandwich packs as a window Coffee cup lids being trialled PLA Usage in UK Supermarkets

Rigid Packaging Sources: Novamont; Coopbox; Whole Foods Market; NatureWorks TM

Who are the new “Regulators” driving change? Government bodies striving for reductions Carbon footprint (renewable energy targets 15% by 2020) DEFRA (Env and Farming), DECC ( Energy Climate Change), Waste reduction targets -EU Waste Dir 55% recycled by DEFRA and WRAP (Waste and Resource Action Program) Local Government that need to reach targets Financial penalties applied if targets not reached Retailers wanting to assist in achieving targets Marks & Spencers, Sainsburys, Tesco, ASDA, CO-OP, Waitrose, Morrisons, Lidl

Supermarkets want “more Sustainable” Packaging to address Climate Change Packaging is designed for Function - Preserve, Reduce food waste Marketing - Inform, Persuade Convenience - right size, easy to use Plastics packaging - “victim of its own success” (in reducing Food Waste) Low cost Transparent Good Barrier properties Efficient use of oil based resource

Climate Change Legally binding targets: Green house gas emission reductions through action in the UK and abroad of at least 80% by 2050, and reductions in CO2 emissions of at least 20% by baseline.(06) 34% by baseline.(09) 40% by baseline.(09) ?

Voluntary Courtauld Commitment 41 signatories Retailers and Brand owners in AIMS to design out packaging waste growth by 2008 to deliver absolute reductions in packaging waste by 2010 Reduce the amount of food wasted in UK homes by 155,000t by March – 2010 Demonstrating how the signatory influences and is influenced by the above objectives; and Comparing performance over time.

Courtauld Commitment Supply Chain Voluntary Agreement

Brand Owners

Courtauld Phase II - Targets Reduce weight, increase recycling rates and recycled content to reduce carbon impact of grocery packaging by Reduce household food & drink wastes by Reduce grocery product waste in grocery supply chain by (prevention not diversion) Develop ways to reduce the carbon and wider impacts associated with grocery products in the UK. Agree a measurement and reporting approach by end of 2012 and set challenging targets thereafter

DEFRA packaging strategy Minimise environmental impacts of packaging Optimising packaging Design with reuse recycling or recovery in mind Recycled content Reduction through voluntary agreements Eco design Enforcement (TSO) Recycling Quantity & Quality % recycling target Aluminium cans – on the go Glass – hospitality sector Plastics – mixed plastics & infrastructure Carbon metrics Use Courtauld II as a pioneer

Supermarkets -responding to the challenges Marks & Spencer Committed £250 million to Plan A. There is no Plan B Carbon neutral by 2012 No Waste to Landfill Reduce use of packaging and make it easy to recycle Closed Loop Recycling Use easy to recycle materials- PET, PLA, PP,PE (no PVC, PS)

Sainsbury 90% organic produce packaging will be recyclable, reuseable or compostable by % of Easter egg packaging recyclable, reuseable or compostable by 2008 Reduce packaging by 5% rel. turnover by 2010 Replace 150 million trays and bags with compostable packaging - organic and ready meals 50% reduction in impact of bags 25% reduction in fruit and veg packaging 50% compostable packaging fruit and veg

TESCO TESCO Targets to reduce the amount of packaging on own-brand products and branded items by 25% -to provide recyclability information on all Tesco own- brand products

ASDA ASDA TARGETS In 2007 ASDA became the first retailer to set a new voluntary target of 25% packaging reduction by the end of 2008 Lightweighting e.g. olive oil in completely recyclable plastic bottles over 30% lighter than the glass bottles they replaced - get 12% more bottles on every pallet, which reduces their carbon footprint. £10 million saved as a result of this programme will be passed back to customers’

COOP Weight reduction should not be made at the expense of increasing other environmental impacts such as toxicity or opportunity to increase the recyclability /recycled content Biodegradable packaging has limited advantages due to lack of home composting facilities and concerns that many biopolymers may not actually breakdown in commercial composting and landfill facilities Biopolymers may contaminate recycling streams Rationalization of plastic polymers PET and PE (excluding films) would assist recycling rates and make best use of existing recycling infrastructure Simplification of packaging through removal of composite materials or multiple layers of different materials should assist increasing recycling rates

Material De-selection

Global Brand Owners - P&G All packaging to be made from renewable or recyclable materials. P&G’s manufacturing plants to be powered with 100% renewable energy. Zero waste going from P&G or its consumers to landfills. Designing products to both please consumers and to maximize available resources. Replacing 25% of all petroleum-based materials with “sustainably sourced” renewables. 31

Global Brand Owners – Coca Cola 32

Coca Cola 33

Global Brand Owner -Toyota Toyota Hybrid SAI – 80% of interior is from Biomass product 34

Key technologies for monomers and Polymers The key monomers that will be made in large scale operations will be bio derived Polyethylene (LLDPE and HDPE) Poly ethylene Terephthalate (PET) Poly lactic acid (PLA) 35

Braskem – Poly ethylene from Ethanol (sugar cane) Braskem produces bio resourced Polyethylene on a commercial scale in (from September 2010) in a 200,000 tonnes/yr plant. The market values this product highly because it is obtained from a renewable source (instead of fossil fuels) - sugarcane ethanol by dehydration to ethylene Retains the performance characteristics of a traditional PE, which means it can be used immediately in a variety of applications. Braskem's “Green PE” has a very positive environmental balance because, considering the complete supply chain, it removes up to 2.5 metric tons of CO2 from the atmosphere for each tonne produced 36

“Green” bio derived Polyethylene – HDPE and LLDPE 37

PET production 38

PET made using bio Mono ethylene Glycol and PTA 39

Key source of Ethanol is from Brazil 40

Competitiveness of bio PET (MEG) 41

Bio MEG production prospects 42

The route to PTA (purified Terephthalic Acid) 43

Para xylene – precursor to PTA 44

Alternative monomers to PTA for PET and other polyesters AVANTIUM propose new chemistry based on furanics 45

Competitiveness of FDCA 46

FDCA based plastics properties 47

Life cycle analysis comparisons 48

Opportunities for large scale European initiatives Bio MEG production in Europe is missing an opportunity given the resources to produce etahnol from a range of feedstock and the strong global demand Bio PTA will be the next big push for new chemistries for this dominant molecule for use in PET Bio derived polyethylene and polypropylene will for now be derived from Brazil due to the lower Life cycle costs of the ethanol used for ethylene production. Niche production of Nylons and polyurethanes based of castor oil for automotive and engineering plastics 49