Slide 1

“Green chemicals and fuels from the forest”

Welcome to this presentation by

KIRAM

LU Biofuels workshop Lund August 2011

Slide 2

Climate change

Security of supply

Domestic raw materials

Taxation incentives

Renewable materials and fuels Five strong market drivers

Fossil fuels cost

Slide 3

KIRAMs bussines history

Founder of Chemrec AB in 1988 – All shares sold to KAMYR in 1990 – Business dev. in Chemrec to about 2000 – Royalty arrangement to about 2015 – 11 patent and patent applications

NovaFiber project 1997 – – Prehydrolysis AQ – Hemicelluloses recovery/valorisation – New pulping processes – NovaCell sulfur free pulping

• Conversion of KappaSturovo mill to NovaCell in 2003

CO2 talloil acidulation project – Commercial plant at Enocell – Sold to AGA/Linde in 2010

BioLime lignin limekiln fuel project Sold to third party in 2010

SunPine AB founded in 2005 – Co-owned by KIRAM, Södra ,Preem and

Sveaskog

NordLight AB founded in 2009 – Co owns MeVa Innovation with Pite Energi

and MeVa Powerplants – Commercial CHP biomass gasification plant

under erection in Piteå

KIRAMs Cellulose dissolving project

Establishing CelluNova project in 2008 – Operated by SP Excellence Center EcoBuild – Establishment of CellRay AB – Filing of patent applications – Trademark protection

Slide 4

A history of R&D and commercialisation of new technologies for the pulp and paper industry

New pulp mill process

equipment at KAMYR AB Founder of Chemrec AB

Slide 5 From crude talloil to green diesel

KIRAM is founder and shareholder of SunPine AB

Slide 6

SunPine Renewable diesel from crude tall oil

Raw materials – Crude tall oil – Acid vegetable oils – Methanol

Products – Talldiesel ~65% – Bio-oil ~35%

Capacity – Up to 100.000 m3 talldiesel per year

Slide 7

SunPine plant in Piteå harbour Start up in Q1 2010

KIRAM

Slide 8

SunPine plant May 2010

Slide 9

SunPine Piteå plant Process block flow sheet

N MEmu

TO

Crude talldiesel

Bio-oil

NT

FvD

V

M

W

R

CTOt

TOrt

Mix

MR De

CAT

MEre

Slide 10

10

SunPine crude talldiesel Renewable feed to petroleum refinery

Renewable

Diesel

Slide 11

SunPine diesel

A truly green fuel

Slide 12

12

Well to Wheel analysis SunPine diesel compared to other renewable fuels

WTW GHG

(g CO2eq / km)

200

100

0 200 100 300 400 500 600

Gasoline& Diesel

Ethanol ( wheat)

Etanol (sugar beats)

Ethanol

Cellulose

Ethanol

(sugarcane)

Bio-diesel

DME

(black liquor)

SunPine diesel

WTW Energy (MJ / 100 km)

Biogas

Source: Södra, Preem,Concave, Chemrec, ÅF-analys

Slide 13

October 2010: RTD shipment to Preem

Slide 14

Preem launces Evolution Diesel 9 april 2011

Slide 15

SunPine plant Byproducts upgrade and valoristaion

Byproducts – Rosin acids

• Rosin sizing

• Rosin esters

– Phytosterols • Crude β-sitosterol

– Anthraquinone

Slide 16

SunPine AB Revenue 2012 900 MSEK

Slide 17

Next steps – Increase capacity – Fine tuning

Valorize Byproducts – Sale/upgrade of rosin

rich pitch • 30-40 % Rosin

– Recovery of anthraquinone

– Recovery of phytosterols

Slide 18

CelluNova project From forest to textiles and apparels

Slide 19

Cellulose is truly a green material

Regenerated cellulosic fibres is made from forest raw material Attractive price/cost

Very large raw material base

Excellent LCA – Low water use – No fertiliser – No pesticides/insecticides

Flexible – fibres of widely different qualities can be made – High tenacity / High Wet

modulus – Soft, smooth or stiff fibers – Can be blended with other

fibers/polymers

Slide 20

New business opportunity for the forest industry

Scandinavian pulp mills have modern, energy efficient machinery

Over 10 million ton cellulosic pulp is produced in Scandinavia every year

Very low carbon footprint operations

Operating in harmony with environment, no or very low emissons

All infrastructure is in place for manufacturing of dissolving pulp / staple fiber

Environmentally superior sulfur free pulping processes under commercialisation ( NovaCell)

Sulfur free by products sa lignin

Hydrolysates

Furfural

Organic acids

Forest industry in search for new markets for cellulose products

Slide 21

Project initiative by KIRAM AB in 2008

Research, development and demonstration project ( 2009-2012)

Managed within EcoBuild - a Vinnova Excellence Center

Project Manager Dr. Mats Westin

Industrial / Institutional Partners

– EcoBuild SP Trätek – SwereaIVF

– IKEA – H&M

– Södra Skogsägarna

– Svenskt Konstsilke – KIRAM

KIRAM

CelluNova project Partners

University/Institutional partners

Lunds University – Physical Chemistry – Theoretical Chemistry – Chem.Eng LTH

Karlstad University – Cellulose Technology

University of Coimbra

Chalmers

Innventia

IBWCh

SKS

Slide 22

Basic elements of Fiber (wet) spinning

Processing variables: • concentration and temperature of the spinning solution,

• composition, concentration and temperature of the spin bath,

• stretch applied during spinning.

Polymer is precipitated from the solution and a gel filament containing solvent is formed.

A surface layer is formed, which will continue to coagulate towards the inside.

The solvent diffuses from the inside of the filament to the surface into the spin bath.

Slide 23

Pretreatment Cooking Post treatment Dissolving Spinning

Chemicals recovery

Sulfur chemicals free alkaline pulp mill biorefinery

Wood Staple fiber

NovaCell alkaline dissolving pulp mill Spinning plant

Power, Biofuels, Sulfur free lignin

Hemicelluose

Solvent recycle

Slide 24

CelluNova fiber Challenges and opportunities

Low wet strength – < 10 cN/tex

Improvement scope – Spinndope blending – Coagulation bath

design/chemistry – Stretching – Higher cellulose

content/higher Dp – Yarn blending twinning

Low cost potential

Easy process integration

Nontoxic solvents

Nonexplosive solvents

Blending with other fibers

Excellent LCA

Slide 25

CelluNova Further R&D activities

In depth cellulose structural analysis – X-ray ( synchrotron light at MaxLab) – Neutron fiber diffraction – CP/MAS 13C NMR – FT-IR Spectroscopy – Microscopy

Cellulose biorefinery R&D – Kraft, sulfite, soda AQ pilot plant pulping studies – Lignin recovery & valorisation – Hemicelluloses extraction

CelluNova project collaborations

– EPNOE

• European Polysaccharide Network of Excellence

– STEP ITN • Shaping and transformation in the engineering of

polysaccharides FP7 Marie Curie ITN

– Future fashion project Mistra call

Slide 26

CelluNova project Key Personnel

Dr. Mats Westin, EcoBuild SP, Project Coordinator

Dr. Stacy Trey, EcoBuild SP,

Dr. Bruno Medronho, Colloid Group Coimbra

Dr. Bengt Hagström, Swerea IVF

M.Sc. Erik Perzon, Swerea IVF

Dr. Mikael Lund, Theoretical Chemistry LU

Dr. Ola Wallgren, Chem.Eng LTH/LU

Prof. Björn Lindman, Physical Chemistry LU/Coimbra

Prof. Gunnar Karlström, Theoretical Chemistry LU

Prof. Ulf Germgård, Pulp Technology KAU

Prof. Pernilla Walkenström , Swerea IVF, Borås Högskola

Prof. Guido Zacchi, Chem.Eng LTH/LU

MSc. Martin Kihlman KAU

MSc. Lars Stigsson, KIRAM

Personnel from partner companies

Slide 27

Future Fashion CelluNova partners awarded R&D Contract

Mistra Future Fashion –

- 40 miljoner till forskning om

hållbart mode (2011-03-22)

SP Sveriges Tekniska Forskningsinstitut

är koordinator (Dr Mats Westin)

Konsortiet består av forskare från

Chalmers, Copenhagen Business

School, Handelshögskolan i Stockholm,

Innventia, Konstfack, Malmö Högskola,

SP, SWEREA/IVF, University of Arts

London. Dessutom ingår H&M, Fabric

Retail Global AB, I:Collect, KIRAM

AB, Myrorna, Stockholms Läns

Landsting och Södra.

http://www.mistra.org/

Initiative by SP and KIRAM AB

Slide 28

KIRAM

Thank You !