nanocellulose, threat or opportunity?

Title of presentation Date An Imerys and Omya Venture

Nanocellulose, threat or opportunity?

Potential impact on the pulp industry.

London November 10th -16

Per Svending- VP Marketing

Title of presentation Date

CONFIDENTIAL

Nanocellulosics has been a hot area for research in the last decade

In General: Technology driven

Low volume, high cost

Focus on high value applications

Picture by Pääkkö, Ankerfors et al, Biomacromolecules 2007,8 1934-1941


CONFIDENTIAL

The incentive is to exploit the unique properties of Nanocellulose

Often quoted Nanocellulose advantages:

• Abundant, natural nanomaterial

• Renewable, biodegradable and biocompatible

• High strength and modulus

• High thermal stability

• Lightweight

• Optical transparancy

• High water binding capability

• High aspect ratio and high surface area

• Chemical functionality and modification

• Dimensional stability

• Barrier properties


CONFIDENTIAL

Numerous companies active in making Nanocellulose

+ a very large number of universities and research institutes.


CONFIDENTIAL

“Nanocellulose” can mean many things

Pulp Microfibrils Nanofibrils NanocrystalsMFC Microfibrillated Cellulose NFC Nanofibrillated Cellulose NCC Nanocrystallin CelluloseCF Cellulose Filaments CNF Cellulose Nanofibrils CNC Cellulose Nanocrystals

• Product types- Micro-scale fibrils

- Nano-scale fibrils

- Crystals

• Processes- Chemical pre-treatment

- Enzymatic pre-treatment

- Homogenisation

- Supermasscolloiders

- Extruders

- Refiners

- Hydrolysis

- Other

• Raw materials- Pulp

- Cotton

- Straw, etc

- Bacteria derived

A composite of Microfibrillated Cellulose and mineral…

FiberLean® MFC is a composite produced by co-grinding cellulose fibers with minerals, such as GCC (GroundCalcium Carbonate), PCC (Precipitated Calcium Carbonate) or kaolin, based on a proprietary patented process.

FiberLean production process is cost-efficient, flexible and scalable

Raw materials available on-site

FiberLean facilities are installed within paper millsand use pulp and fillers which are already availableon-site, minimising input and logistics costs.

Efficient grinding process

When cellulose fibers and fillers are co-processedin aqueous suspension, minerals act as finegrinding media and reduce processing costs.

Flexible processNo pulp pre-treatment is required. FiberLean canbe made using any paper filling mineral in themarket. MFC content can be varied.

No chemical additivesThe production process does not feature chemicaladditives and yields a stable ready-to-usecomposite


CONFIDENTIAL

…with a pinch of salt!


CONFIDENTIAL

1

10

100

1.000

10.000

100.000

1.000.000

1 10 100 1.000 10.000 100.000

Le

ngth

, nm

Width, nm

Approximate Nanocellulose dimensions and position of FiberLean® MFC

Pulp(softwood)

NCC/CNC

NFC/CNF

MFC/CF

FiberLean® MFC

Microfibrillated, rather than Nano.

Relevant plant scale for commercial application in major paper mills.

On site production to minimize cost, especially for transportation of low solids material.

Developed for cost savings in filler increase application.

Several new applications in fiber based packaging and non-paper.

Established capacity 2016 of 8 000 dry ton pure MFC (40 000 dry ton FiberLean MFC in two commercial plants and one pilot plant).

FiberLean® MFC in the world of Nanocellulosics

FiberLean® MFC composite with Talc


CONFIDENTIAL

The actual market development is beating an optimistic forecast made in 2012

Key hurdles highlighted in 2012:

• Decrease cost of manufacturing• Reduce energy demand• Scaling up to industrial quantities

FiberLean Technologies provides services to IMERYS and OMYA: Marketing and application support

Process development and engineering

Research and Development

Regulatory and IP stewardship

IMERYS and OMYA are separately and independently responsible for all commercial activities.

IMERYS OMYA

50%

IMERYS stand-alone business

OMYA stand-alone business

50%

100% 100%

FiberLean® Technologies Ltd and its owners/partners

www.imerys.com


www.omya.com


Imerys and Omya are ideal partners in terms of access to potential markets for Nanocellulose

Source: Market projections of cellulose nanomaterial-enabled products – Part 2: Volumeestimates. (Tappi Journal June 2014 Vol. 13 No. 6 Cowie, Bilek, Wegner and Shatkin)

Proposed markets/applications for Nanocellulose

High volume applications Low volume applications Emerging applications

Cement Wallboard facing Air & water filtration

Automotive body Insulation Industrial viscosifiers

Automotive interior Aerospace structure Sensors

Packaging coatings Aerospace interior Cosmetics

Paper coatings Aerogels for oil/gas Drug delivery

Packaging filler Architectural paint Organic LED´s

Paper filler Special purpose paint Printed electronics

Plastic packaging replacement Paint for OEM applications Photovoltaic cells

Plastic film replacement Flexible electronics

Textiles for clothing 3D printing

Hygiene and absorbants Bone & tissue scaffolding

Thermoset adhesives


Net cost saving from filler increase without sacrificing paper properties or runnability.

Improvements in initial wet web strength, opacity and smoothness.

Closing up the paper structure for benefits in coating and fiber/filler optimisation.

Only marginal impact on wet end chemistry.

FiberLean® MFC in paper

FiberLean® MFC performance in paper application


FDA clearance for FiberLean® MFC

FiberLean MFC has received clearance from the Food and Drug Administration (FDA) for use as a food contact substance in paper and paperboard for food packaging applications.

A Food Contact Notification (FCN) became effective on November 6, 2015. This FCN allows up to 5 weight percent of FiberLean MFC fibrils in the packaging.


FiberLean on Top, a new approach to making white boxes

Wet-end coating with pure FiberLean to make low cost

White Top Linerboard

Based on established MFC process technology with capability to provide the large quantities needed for white top application on big paper machines

Lower material cost than bleached market pulp, on a per ton basis

With significantly less g/m2 needed to provide coverage

Using simple and inexpensive application equipment

Suitable for retro-fitting to paper machines

Meeting rapidly growing demand for white boxes suitable for digital printing

The FiberLean on Top development has huge potential!

CONFIDENTIAL

WF P&W paper29%

Other Graphic Papers

3%

Tissue35%

Specialty Papers15%

Packaging8%

Fluff10%

Approximate split of market pulp across end-use segments

• 29% of market pulp goes into the filler increase target area.

• 100% market penetration wouldmean 1,5 Mton less market pulp.

• Cost savings could be a way ofkeeping WF P&W paper millsrunning.

Filler increase cannot be the greatest threat to pulp suppliersin this end-use segment!

To what extent could MFC-filler replace market pulp?


CONFIDENTIAL

The total estimated market is huge!

Significant new opportunities for pulp as a raw material.

Pessimistic Reasonable Optimistic

Cement 0 4,1 8,3

Automotive Body 2,7 3,6 9

Automotive Interior 0,4 0,6 0,7

Packaging Coatings 4 5,3 6,3

Paper Coatings 1,6 2,2 2,7

Paper Filler 1,4 2,4 3,4

Packaging Filler 1,4 2,4 3,4

Replacing Plastic Packaging 1,8 4,2 7,2

Plactic Film replacement 1,7 3,4 5

Hygiene and Absorbent Products 1,9 3,2 6,5

Textiles for Clothing 1,3 2,5 3,9

”Low volume applications” 1,1 2,2 3,4

TOTAL 19 35 60

Mton/year by Market/Application within next 5-10 yearsSource: Market projections of cellulose nanomaterial-enabled products – Part 2: Volume estimates. (Tappi Journal June 2014 Vol. 13 No. 6 Cowie, Bilek, Wegner and Shatkin)

Estimated global market for ”nanocellulose”


Commercial full scale use of MFC in the paper industry is now established and will be growing.

The prospects for Nanocellulose growth in fiber based packaging and in applications outside of Paper & Board are truly exciting.

The proposed markets for Nanocellulose outside of Paper & Board represent entirely new opportunities for Cellulose as a raw material.

For the pulp industry, the growth of Nanocellulosics should be considered as an opportunity as it will lead to increased demand for pulp.

Conclusions

Title of presentation Date An Imerys and Omya Venture

nanocellulose, threat or opportunity?

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