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Biorefinery of the Future ConVergInce / Lee Enterprises Consulting

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Presentation on theme: "Biorefinery of the Future ConVergInce / Lee Enterprises Consulting"— Presentation transcript:

1 Biorefinery of the Future ConVergInce / Lee Enterprises Consulting
ABLC Washington, DC. March 2018 Joel A. Stone ConVergInce Advisers We did not inherit the earth from our parents. We are borrowing it from our children.

2 Transition Biofuels to Renewable Chemicals
The birth of the industry began in various forms from biofuels Ethanol Butanol Bio-diesel Renewable diesel Farnesene Algae oils The move to chemicals was encouraged by the USDA with the publication of the 2004 DOE/NREL report on the top 12 biochemicals Many of these chemicals were basic building blocks and commodity related The evaluation was completed using agricultural based feedstocks

3 BioRefinery Options Biofuels to Renewable Chemicals
The top 12 chemicals included: Four Carbon 1,4-Diacids (Succinic, Fumaric, and Malic) 2,5-Furan dicarboxylic acid (FDCA) 3-Hydroxy propionic acid (3-HPA) Aspartic acid Glucaric acid Glutamic acid Itaconic acid Levulinic acid Hydroxybutyrolactone Glycerol Sorbitol (Alcohol Sugar of Glucose) Xylitol/arabinitol (Sugar alcohols from xylose and arabinose) For a copy of the newly updated report:

4 Renewable Chemicals $450 Billion Specialties
Cosmetics 2% Specialty Polymers % Global chemical market 2014: $5.4 Trillion Adhesives & Sealants 2% Other % Printing Inks 3% Construction Chemicals % Feed Additives 3% I&I Cleaners % Plastic Additives % Electronic Chemicals % Food Additives % Oilfield % Surfactants % Catalysts 5% Specialty Coatings % Flavors/ Fragrances 6% Source 2014: Water Soluble Polymers 6%

5 Future for Biorefining The Need to Scale

6 Strategies for Growth Experience Matters
Strategies for de-risking, commercialization & growth require: Solid laboratory and bench chemistry development. Pilot developments and Pilot replication testing. Demonstration plant operation at 1/25th to 1/50th commercial scale. Intermediate capital budgeting including an FEL3. A well thought-out and planned Engineering, Procurement and Construction program including risk management focus. A clear commissioning and startup plan. Lessons learned: Why have there been many failures? Skipping proper time allotments or short cutting lab, pilot, and demo plans. Shortcutting the capital budget with unrealistic FEL3 designs. Inability to be fully funded to reach the objective. Understanding the importance of product quality and differentiation versus predecessor products. What are the customer needs and priorities?

7 Filling a Gap Contract Fermentation and Recovery Facilities
Risk Management Scale up, demonstration, and commercialization. Use lessons learned to calculate approaches to stay on plan. An experienced team to guide a project, technology, or business Commercial experience. Sound knowledge in latest developments. Planning Set up milestones across the enterprise and revise as we learn. Be adaptable in setting goals. Collaborations Teamwork that is flexible and looks for successful pathway. Quality Delivery The client deserves a first rate package of deliverables.

8 Flexible Biorefining Approach Accelerating to Scale
Contract fermentation and recovery offers a capital light approach while leveraging existing infrastructure in place. A pathway for Industrial Biotech. Functions and resources to consider: PURE WATER ELECTRICITY CHILLED WATER NATURAL GAS STEAM TRANSPORTATION UNIVERSITIES SYNTHESIS RECOVERY Access to existing resources and infrastructure TECHNICAL EXPERTISE

9 Collaboration Fulfilling the Business Needs
Value creation Accelerate the rate of execution. Increase value with a joint effort that offers cost reduction. Focus on scale and tech transfer. Specialty and Performance chemicals Get closer to the customer and ultimately the consumer. Value of a product is in the performance and application that meets a customers need. How does synthetic biology or catalysis fit. Fairness Balance between client and consultant and facility is absolutely necessary. There is one winner and that is the collaboration to meet client product needs. LEC collaborator TEAMS fill in the gaps for the Client.

10 Thank you Collaborative Expert Advice Outcome: Success Stories


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