The contribution of

advanced biofuels to meet

2030 target

SANDRO COBROR

Head of Public Affairs

Biochemtex spa

2000 – TODAY 1979 – 2000 1953 – 1979

Packaging Manufacturing

Phase

HDPE and PVC packaging

production

Chemical Specialty Manufacturing Phase

PET expansion phase

Development and

production of PET resins

for food packaging

Acquisition of PET Shell activities and Rhodia from Rhone Poulenc

Acquisition of Chemtex from Mitsubishi Corporation

Construction of the world’s largest plants for PET production in Altamira (Mexico) and Suape (Brasil)

Renewables

Plans announced for a new plant in Corpus Christi (Texas, USA)

2009 - Pilot plant for cellulosic ethanol

2006 -2008 - Lab scale technology development for 2nd gen ethanol

Mossi Ghisolfi background

2

2013 - World’s 1st commercial-scale plant that produces biofuels from non-food biomass (60.000 ton/year)

2011 - Beta Renewables is founded, dedicated to sustainable chemistry.

2012 - Beta Renewables and Novozymes partnership.

WILMINGTON Engineering Central Office

APPLE GROVE Resin

SHARON CENTER R&D Centre

HOUSTON North America Regional Office

ALTAMIRA Resin

POÇOS DE CALDAS Resin Fiber R&D Centre

SAO PAULO South America Regional Office

INDAIATUBA Recycle

PAULÍNIA PTA

SUAPE Resin

TORTONA (AL) Head Office Process Engineering Office

MILAN Group Head Office Europe Regional Office

RIVALTA (TO) Ethanol Pilot Plant and R&D Centre

PATRICA (FR) Resin

BEIJING Engineering

SHANGHAI Engineering

YIBIN Cellulose Acetate

MUMBAI Engineering

BANGALORE Engineering

CABO Fiber

CRESCENTINO (VC) World First Commercial Scale Cellulosic Ethanol Plant

MODUGNO (BA) Demonstration Plant for MOGHI Tecnhology

Summary Where we are located

3

Current EU policy framework on road transportation

4

• 2009: RED sets 10% renewable energy in the transport sector by 2020. Sustainable

biofuels might be used to meet the target.

• 2012: ILUC Proposal. The Commission published a proposal to limit global land

conversion for biofuel production, and raise the climate benefits of biofuels used in

the EU. The use of food-based biofuels to meet the 10% renewable energy target of

the Renewable Energy Directive should be limited to 5%.

• 2013: Sept 11th, the EP voted ILUC proposal on its first reading. Key revisions

suggested were: Capping the contribution of food-based biofuels to meeting RED targets;

Introducing reporting of iLUC emissions based on default iLUC factors for cereal, sugar and

vegetable oil feedstocks;

Introducing a category of advanced biofuels from wastes and residues that would be

quadruple counted for compliance with targets in the Renewable Energy Directive.

• 2014: June 13th, Energy Council reached a political agreement on ILUC proposal:

7% cap on conventional biofuels

Non binding 0,5% min national targets for advanced biofuels

5x for electrical vehicles (from renewable sources), 2,5x for electrified rail transport

The EU strategy for upcoming decade

5

• On 22 January 2014 the Commission proposed energy and climate

objectives to be met by 2030. The targets must be met if the EU is to keep its

promise to cut its greenhouse gas emissions by 80-95% by 2050.

40% cut in greenhouse gas emissions (compared to 1990 levels) To achieve at least a 27% share of renewable energy consumption Energy efficiency to play a vital role, but no specific target at this point.

Juncker’s agenda priorities on jobs and energy: Getting people back to work: Jobs, Growth and

Investment Package to generate an extra EUR 300

billion in investment over the next three years.

A Resilient Energy Union with a Forward-Looking

Climate Change Policy: Europe’s Energy Union to

become the world number one in renewable energies.

Significant enhancement of energy efficiency beyond

the 2020 objective, notably when it comes to buildings,

in favour of an ambitious, binding target to this end.

Any biofuel capable to address all the policy

obligations and expectations?

6

According to the current policy framework and

expectations, allowed biofuels shall feature at least:

• No competition vs food

• Minimal use of land

• Minimal use of water

• Price competition

• Technology innovation

• Protection of biodiversity

• Benefit for rural areas

THIS IS WHAT WE CALL ADVANCED BIOFUELS !

7

Italy’s approach to advanced biofuels

January 2013: IT Governement signed an agreement (Protocollo

d’Intesa) with Gruppo Mossi Ghisolfi to foster the deployment of

second and third generation biorefineries in Italy

May 2014: IT Government signed an agreement with Biochemtex

to build up 3 cellulosic ethanol plants in the South of Italy

June 2014: DECRETO-LEGGE 24 giugno 2014, embraced a

minimum quota of advanced biofuels in the fuel pool from 2015

on.

October 2014: DM set minimum quota of adv biofuels from 2018

on (from 0,5% in 2018 to 1% in 2022)

The Proesa TM Process

8

Steam Water

CO2 Water

Ethanol

Steam

Power

Biomass Enzymes

Boiler + Generator

Recovery Hydrolysis + Fermentation

Pre-Treatment and Viscosity Reduction

Feed Handling

Aggregation: fully integrated process design

Agronomy best energy crops, based on field experiments

Biomass pre-treatment and viscosity reduction: continuous process

Hydrolysis and fermentation: unique hybrid SSCF process yielding high ethanol concentrations

We use sustainable biomasses

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Energy crops

Arundo donax (Giant reed)

Miscanthus giganteus

Panicum virgatum (Switchgrass)

Agricultural and industrial residues

Wheat straw

Rice straw

Corn stover

Sugarcane bagasse

Woody species

Eucalyptus

Poplar

Crescentino project: first industrial scale advanced biorefinery in the world

Nov 2012

Dec 2012

10

Apr 2011 Sept 2011

Capacity: 40kt/y ethanol

Biomass supply: approx 200kt/y

80-90% emission reduction

13 MW power plant

Complete water recycling

Separation Fermentation PROESA®

Technology

11

Steam

& Electricity

The Biorefinery today ….

Biomass

Ethanol

Lignin Energy

Production

Fermentable

Sugars

The Biorefinery Opportunity - Now a reality with PROESA® Technology

2nd Gen Ethanol Plant located in Crescentino - Italy

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Biomass

Fermentable

Sugars

Separation

Chemical

& Biological

Conversion

Platform

Lignin Conversion/

Separation

Aromatics

Chemicals Materials

…. and tomorrow

Fuel/Chemicals

EtOH iso-BuOH JetFuel

BTX PTA

Fatty Alcohols

Polyols n-BuOH

Lactic acid Acrylic acid

Succinic acid Adipic acid

Plastics & Polymers Market

The Biorefinery Opportunity - Now a reality through PROESA® Technology

PROESA®

Technology Fermentation

13

Energy security and emissions reduction

plants (apporx) % on EU fuels toe barrel (BOE)/TOE boe value of barrels NOT imported

1 0,02% 51.000 0,146 349.315 24.801.370€

39 1,00% 2.900.000 0,146 19.863.014 1.410.273.973€

97 2,50% 7.250.000 0,146 49.657.534 3.525.684.932€

155 4,00% 11.600.000 0,146 79.452.055 5.641.095.890€

usd/barrel eu/barrel

92 71

With 4% replacement of Eu fuels with advanced biofuels

5,6 billion €/y oil import and over 30 millions tonns of CO2 emissions avoided

14

Biomass need, value for rural economy

Wasted reports states that of the EU 900million tons of waste/residues, about 223-225 million tons could be used for advanced biofuels So this is a conservative scenario. Also this scenario does NOT take into account the contribution of energy grasses in marginal lands

plants (apporx) % on EU fuels toe tons biomass needed revenues for rural economy

1 0,02% 51.000 400.000 20.000.000

39 1,00% 2.900.000 22.745.098 1.137.254.902

97 2,50% 7.250.000 56.862.745 2.843.137.255

155 4,00% 11.600.000 90.980.392 4.549.019.608

> 4,5 billion euro could go to rural economy each year

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Jobs creation

low high

residues collection (extra)

114

171

transport& logistic (extra)

45

61

direct for operations of site

65

85

undirect employment - services

33

43

grand total for single plant

257

360

for construction erection

600

800

divided by 20 years operation

30

40

Jobs for 1 plant etoh 51.000

toe

287

400 Jobs

THIS TRANSLATE IN OVER 90,000 NEW JOBS AT 4%

CELLULOSIC ETHANOL FUEL MARKET SHARE

16

Conclusions

• Cellulosic ethanol technology is ready but need quite substantial investment

• Production is cost competitive • Use of sustainable biomasses widely available in EU (multiple

feedstock optimization) • Socially sustainable (no competition with food) • Environmentally sustainable (drastic reduction in emissions) • Profitable for farmers • Able to create high-tech green-jobs • First step to green chemistry deployment

BIOMASS AVAILABILITY IS KEY TO UNLOCK THE POTENTIAL OF

BIOECONOMY AS A WHOLE