Opportunities in Biomaterials Daniel N. Robin Integrated Investments International (In3) Commercializing Food-Friendly BioRenewables since 1996 Online: In3inc.com * * +1(831) © 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 1985 Bioplastics 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 What We Do

What’s the problem? Single feedstock dependency

Depicts 60,000 plastic bags, used every five seconds

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

Plastics Industry Issues Diamonds are forever? So are plastics! Diamonds are forever? So are plastics! – No eco-effective end-of-life solution – Many compounds are toxic and persistent Petroleum price shocks Petroleum price shocks Energy to manufacture  greenhouse gases Energy to manufacture  greenhouse gases Boiling frog effect; risks & liabilities … Boiling frog effect; risks & liabilities … – Consumers and governments are demanding safer alternatives, using precaution – Many plastic additives and products are being restricted 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 or ASTM D6400 – usually this means composted Design Goal: Durability, not Immortality

Classic film clip of Henry Ford, 1941 whacking 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 Scan A. 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 2000 Dow exited 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 Meeting July 14, 2006

Industry Scan Who are the main players? A.Commercially Proven Solutions 1)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 Development Industry Status as of Spring 2008 Confidential Content – contact Daniel Robin at In3 for details

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? What will you do on Monday morning?

Opportunities in Biomaterials Daniel N. Robin Integrated Investments International (In3) Commercializing Food-Friendly BioRenewables since 1996 Online: In3inc.com * * +1(831) © 2008 Daniel Robin & Associates / In3 – all rights reserved worldwide Green Trade Network Summit Sept 19, 2008