Presentation used as background info to the Squarewise Squaretable event January 26th 2012.

1. New Customer Realities:
Capturing Added Value from
Sustainability
Squaretable 26-01-2012
1

2. Agenda
2
Time Programme
13:45 – 14:15 Welcome
14:15 – 14.30 Introduction Squarewise
14:30 – 15:00 Opening Squaretable
15:00 – 15:45 Key note - Gert Jan Gruter, CTO, Avantium
“Platform for the Future: sustainable bio-based solutions for the future in plastics”
15:45 – 16:00 Break
16:00 – 16:30 Dr. Ir. Mirjam Kibbeling, New Business Development, Van Gansewinkel
“Of Material Importance: from waste management to material and energy supply”
16:30 – 18:00 Plenary discussion
18:00 – 18:15 Closing remarks and round-up
18:15 – 19:15 Walking dinner
19:15 – open Networking drinks

3. Introduction Squarewise
3

4. Squarewise is driven by the understanding that organizations need new
capabilities to capture opportunities and maintain market leadership
Innovative organization
Market leader
technology
Market leader
e.g in cutting
edge
technology
Operational
excellence
Excel in core
activities
Redesign
processes and
focus on
bottom line
Structurally develop
organizational capabilities
to communicate and
mobilize
in networks
Controlled experimenting
Structurally envision your
future and capture current
opportunities
Real-time, practical
strategy development
Internal target setting Internal and External target setting (3P’s)
Reposition the
organization as
a network of
supportive and
competitive
players
4

5. Opening Squaretable
5

6. Subject for discussion
6
“Capturing added value from new sustainability
driven customer requirements:
Reassessing value chain position and business
dynamics”

7. Value chain
7
Raw Materials
Production
Re-use &
recycling
Packaging &
Transportation
Customer use

8. Changing consumer behavior towards sustainability centered demand:
dynamics in the food packaging industry
8
Ingredients: What the product contains
Barcode: Could also be a QRcode for extra info
Nutritional value: e.g. sugar, fat, carbs etc
Recipes: Possible uses of the product
Expiration date: Could change color depending on
date
Leading to...
Source: DSM Specialty Packaging

9. Consumer driven value chain – traditional value chain dynamics change:
biological banana packaging
9
The plastic banana package features “Controlled
ripening technology” which extends the shelf life of
the fruit.
This technology could reduce the carbon footprint
by cutting back the frequency of deliveries.
It’s recyclable.

10. How to take advantage of sustainability and innovate further
Global chain alignment for longer-term look at sustainability value creation
Call for action to generate solutions in times of great complexity
Opportunities beyond the Core and Business Model Adjacencies
Aligning Sustainability and Business Objectives
Reprioritize in the face of complexity
Finding the New Vibrant Ecosystem – from megatrends to business impact
Collective intelligence and collaborative spirit required to advance the entire
industry
The shift in Value Distribution through Co-Creation ( new Value Chain Dynamics)
Creating valuable solutions amid changing world/value chain dynamics
Material Passport
Act Accordingly
Value chain alignment
From complexity to clarity – way forward
Motivation
World
Inside-
out
Outside-
in
Solution

11. Discussion
1. Creating and capturing value from sustainability throughout the value
chain
What is your vision?
What is your role?
2. Drivers of sustainable development..
What? Performance? Price – green premium? Marketing?
Who? Market pull versus technology push
3. How to create synergy between the bio-based developments and
recycling initiatives?
4. How will this impact…
Your value chain position and business partners?
The value chain dynamics?
11

12. Avantium
12

13. 13
Platform for the Future: sustainable bio-based solutions
for the future of plastics and other applications
Gert-Jan Gruter, Avantium
Squaretable sustainability, Amsterdam, January 26 2012.

14. Agenda
1. Introduction to biomass conversion bulk chemicals
2. Introduction to Avantium & YXY
3. Feedstock strategy
4. Carbon efficiency
5. Land required
6. Life Cycle Assessment
7. Economics
8. Way forward
14

15. Bio-based chemicals playing field
Resources –availability & marketprice *
•Ethylene 100 Mio. t/a 1000 €/t
•Propylene 64 Mio. t/a 1000 €/t
•Benzene 23 Mio. t/a 900 €/t
•Terephthalic acid 55 Mio. t/a 1500 €/t (2012)
•Cellulose 320 Mio. t/a 500 €/t
•Starch 55 Mio. t/a 250 €/t (for current non food
applications)
•Sugar 140 Mio. t/a 250 €/t
•Ethanol 32 Mio. t /a 650 €/t
* Source: Nexant, 2007

16. Main (non fuel) conversions –
Carbohydrates (sugars)
Glucose fermentation followed by Chemical conversion
Ethanol ethylene PE (commercial; Braskem) (PE = 70 Mt/y)
EO EG (Coke, Danone: greening PET; plantbottle)
butylene/butanediol (Genomatica)
Butanol (BP/Dupont) x2 p-xylene PTA (Gevo) (PET = 50 Mt/y)
PTA + PG/BD (PPT/PBT = 3 Mt/y; Dupont)
Succinic Acid (DSM, Bioamber, Roquette, Mits.C.) butane diol (BD) THF
1,4-butanediamine (BDA)
Lactic acid/3-HPA (Cargill/Codexis) Acrylic Acid (AA; Ceres, Rohm&Haas)
1,3-PD (Braskem, Dupont, Tate&Lyle)
1,2-PD
cost targets: same or less than oil-based analogs (green premium??).
Typically 750-2000 €/ton
PE =Polyethylene; EO = ethylene oxide; EG = ethylene glycol; PET = Polyethylene Terephthalate; PTA = purified
Terephalic Acid; PG = propylene Glycol; BD = 1,4-Butane diol; PPT = polypropylene terephthalate; PBT =
polybutylene Terephthalate; THF = tetrahydrofuran; 3-HPA = 3-hydroxypropionic acid; 1,3-PD = 1,3-propane diol

17. Main (non fuel) conversions -
Sugars
Only Chemical catalytic conversion
• Acid catalyzed dehydration of carbohydrates
• Levulinic Acid/ester (Shell (fuel additives)/ Segetis (chemicals))
• MMF FDCA (Avantium) PEF (Avantium + Coke ++)
PA (Avantium + Teijin/Solvay/Rhodia); coatings/resins;
plasticizers)
• Aqueous Phase reforming to hydrogen, alkanes or aromatics (BTX)
Dehydration, aldol condensation & hydrogenation (Virent; fuels & BTX)
• Hydrogenation sorbitol/mannitol (Cerestar/Cargill; Roquette, Tate&Lyle)
(400kt/y)
1,2-PG
isosorbide (Roquette, Cargill)
• Retro Diels alder 2x C3 fragments (glycerol)

18. Main challenge: catalysis
Elemental composition of feedstocks
Crude oil Lignocellulose (wood)
C 85-90% 50%
H 10-14% 6%
O 0-1.5% 43%
(Hydro)cracking
Functionalization
O-introduction
N-introduction
- oxidation, etc.
(Depolymerization &
defunctionalization (O-removal)
- decarboxylation (fermentation)
- dehydration (water removal)
- reduction (hydrogenation)
- C-C coupling
- water present !!
Oil (CxHy) chemicals biomass (CxH2xOx)
e.g. C10H22 (alkane) e.g. C6H12O6 (glucose)
“under functionalized” “over functionalized”
CATALYST
PROCESS
CATALYST
PROCESS

19. INTRODUCTION TO
AVANTIUM & YXY
19

20. Avantium Chemicals Profile
• Spin-off from Royal Dutch Shell in 2000
• 120 employees; 5,200 m2 of high-tech laboratories and offices
• From 1 reactor in the
conventional way…
• …to 64 parallel reactors in the
Avantium way
• Created to develop new products and processes faster, more cost effective
and with a superior rate of success
• Petrochemical service business
• Own R&D program on biomass conversion

21. A Proven Approach
Avantium’s 10 year track record in catalyst and process R&D contract
research services demonstrates the value of its technology and expertise
• Over 25 oil, refinery and chemicals customers from all over the world
• High level of repeat business and customer loyalty
• Addressing industry’s need for improved, accelerated product & process
development

22. Company strategy
Advanced high-throughput R&D
Services & Systems
Product
development programs
Biofuels program
Biobased polymers program
• Advance the product
development programs to
commercial viability
• Attract value-adding
partners for final
development and
commercialization
• Backed by strong financial
partners (€18M + €30M
rounds in 2008-11)
• Continue to invest in further
strengthening the high-
throughput R&D technology
• Continue to expand the
profitable Services & Tools
business

23. FDCA as substitute for terephthalic acid (50 Mt/y)

24. Moving to 100% biobased
• PET is the most widely used polyester made of PTA and EG
• Plantbottle launch in 2009 - PET with biobased EG and oil-based PTA
• PEF by Avantium: biobased FDCA + biobased EG = 100% green
EGPTA
EGFDCA
PTAEG
PET
Oil-based
Renewable
0%
100%

25. Biopolymers and
Biodegradability
• Renewable (bio) and Biodegradable
– From renewable source (Starch, Protein, cellulose)
– 100% biodegradable and compostable (PLA)
• Renewable (bio) and NOT Biodegradable
– From renewable source (PEF can be recycled)
• Non renewable (oil) and Biodegradable
– From petrochemical resource
– 100% biodegradable and compostable
– Polycaprolactone (PCL), Polybutylene Succinic
Adipate (PBSA) and other polyesters
• Non renewable (oil) and degradable
– From petrochemical resource
– Depolymerization (nylon)
• Non renewable (oil) and non-degradable
– From petrochemical resource
– not depolymerizable (PE, PP, etc)
our
focus

26. YXY Technology
Conversion
Carbohydrates RMF
Dehydration
Green
Materials/fuels
Oxidation
FDCA
Polyesters
Polyamides
Polyurethanes
Polymerization
O
RO
O
O
HO
O
OH
O
26

27. Lead application: PEF bottles
27

28. “We’ve got barrier!”
Superior barrier & thermal properties PEF:
• O2 barrier > 6 times better than PET
• CO2 barrier > 3 times better than PET
• H2O barrier > 2 times better than PET
• Tg of PEF is 11°C higher than PET
• Tm of PEF is 40°C lower than PET
28

29. Closing the loop
Recycling of PEF:
• Reprocessing: proven
• De-polymerization to monomers: proven
• PEF in PET recycle streams (1,2 and 5%) doesn’t
affect recycled PET performance
29

30. PEF
The next generation bioplastic
By using FDCA as a biobased replacement for TPA it is
possible to produce PEF
PEF: the next generation polyester:
• 100% Biosourced (when using green MEG)
• Excellent properties (barrier, thermal)
• Very competitive process economics (to oil based TPA)
• 100% Recyclable
• Can be processed in existing supply chains
• Highly attractive carbon footprint
30

31. Building a PEF bottle Consortium
31
Water
Sauce
Alcoholic
beverages
Non-
food
Objective
- PEF to become the new world standard for polyester bottles
- Accelerate road to mass scale production
- Ensure rapid adoption of PEF in recycling industry
Structure
- Partner with iconic brands to develop and commercialize of PEF bottles
Soft
drinks

32. Avantium partnership with Coca-Cola
32

33. 33

34. FEEDSTOCK STRATEGY

35. Feedstock strategy
Feedstock flexibility:
• Today: YXY technology can process currently available carbohydrate
feedstock from sugarcane, corn, sugar beet, wheat
• Tomorrow: When available, YXY technology can process future
carbohydrate feedstock from waste streams, agricultural waste, energy
crops, waste paper, etc
Avantium 2nd gen collaborations:
• ECN (hemi-cellulose, organosolv)
• Cosun (beet pulp)
• APC (Dutch Agro-Paper-Chemicals joint initiative)
• Avantium is working on samples from many 2ng gen BM tech developers.
Avantium continuously monitors new technologies
to get access to low cost carbohydrates
Relevant parameters for carbohydrate sourcing:
• availability and reliability of supply (quality !)
• price and price stability
• sustainability
“Don’t fall in love with one feedstock” 35

36. 2nd GEN. (APC - Dutch Agro-Paper-Chem)

37. Waste use (APC - Dutch Agro-Paper-Chem)

38. CARBON EFFICIENCY

39. Economics example
Economics can easily be estimated via mass balance
Example: bio-based p-xylene (for terephthalic acid (50 Mt/y) (“GEVO route”)
Step 1: Fermentation:
Glucose i-butanol + 2 CO2 (1 kg glucose yields max 420 g i-butanol at 100% yield !!)
Step 2-5: Chemical conversions
2 x i-butanol p-xylene (1 kg butanol yields
max 700 g p-xylene (at 100% yield)
Overall: max obtainable:
3.4 kg glucose 1 kg p-xylene.
Assume:
• Yield overall 65% (optimistic) 5.2 kg glucose required per kg pX
• Processing cost 50% & feedstock cost 50% (see analysis DOW)
Overall production cost PX = 10.4 x feedstock cost

40. Carbon efficiency of feedstock input
at 100% conversion
1. bPE: Polyethylene produced from bioethanol derived fro sugarcane (Braskem)
2. bPET: Poly-ethylene-terephthalate: produced from biobased PTA derived from iso-butanol (Gevo) and biobased MEG
3. bPEF: Poly-ethylene-furanoate: produced from biobased FDCA (Avantium) and biobased MEG. NB: CO2 emission for bPEF
is from MEG production only
% Biopolymer
% CO2
% Water
carbohydrates
40
This graph
represents the
“destination” of the
carbon and oxygen
of the carbohydrate
feedstock at 100%
conversion. It
doesn’t reflect the
CO2 emitted during
the whole process.

41. Background on feedstock carbon efficiency
(at 100% conversion)
bioPE
– C6H12O6 2 H2O + 2 CO2 + 2 C2H4 (ethylene) PE
– 180 g CH (per mol) 56 g PE + 88 g CO2 + 36 g H2O
– 3.2 tons of carbohydrate required to produce 1 ton of PE
FDCA
– 1 C6H12O6 C6H2O5 ending up in polymer (+4H2O) (2O is introduced during
oxidation (and 4H leave as H2O))
– 180 g CH (per mol) 154 g “FDCA” in PEF
– 1.17 tons of carbohydrate contributes to 1 ton in PEF
41

42. Broad range of applications
42

43. 43
Avantium and Rhodia (Jan 24 2012)

44. LAND REQUIRED

45. Example 1: Brazilian sugar
State of São Paulo
(250.000 km2) is the most
important sugar producing
region: 350 million ton/yr
Brazil produces 570 million
tons sugarcane per year
Full-scale FDCA plant: 300 kton/yr
Requires 600 kton of carbohydrates
per year = 4.3 million ton of
sugarcane
~1.2 % of São Paulo state production
~0.76 % of Brazilian sugar
production
45

46. State of Iowa produces
>2 billion bushels corn
per year
Sioux county in Iowa (2.000
km2) produces >45 million
bushels of corn per year
Full-scale FDCA plant: 300
kton/year
Requires 600 kton of carbohydrates
= 44 million bushels per year
~2.1% of Iowa production
~0.4% of USA corn production
USA produces >12 billion
bushels corn per year
Example 2: US corn
46

47. LIFE CYCLE ASSESSMENT
47

48. Life Cycle Analysis
48
Copernicus Institute (Utrecht University; Patel & Faaij)
Comparison of PEF versus PET (revised 2010 PET data set)
Significant reduction in NREU and CO2
More reductions expected:
feedstock and process improvements
0
20
40
60
80
100
NREU CO2
PET
PEF
-40-50% -50-60%

49. ECONOMICS
49

50. Compete on price
50
TPA
• Oil-based
• Price drivers:
Oil price
Supply/demand
FDCA
• Bio-based
• Price drivers:
Carbohydrate price
Economy of scale
• At scale (350 kt/a), the cost price of FDCA will be
competitive with the cost price of pTA
• Drivers:
– An efficient catalytic conversion process
– Significantly lower feedstock cost
– 100% carbon efficiency in the sugar dehydration
– Economic at moderate yield (65%, higher now)
– More economic oxidation (under milder conditions)
– Use of existing PTA/PET assets

51. WAY FORWARD
51

52. Pilot plant:
Name plate capacity: 20-40 tpa
Full scale industrial plant:
On stream in 2017-2018
Name plate capacity: 300-500 kta
First commercial plant:
On stream in 2015
Name plate capacity: 30-50 kta
Scale-up

53. Pilot Plant opening (8 Dec 2011)
53

54. Go to market
Scale-up
Avantium’s pilot plant to:
– Demonstrate YXY technology
– Process development
– Produce FDCA and PEF for application development
Partnering
Avantium is in partnering discussions with:
– Leading brand owners to develop PEF bottles, fibers and film
– Industrial companies to develop FDCA based materials
(polyamides, coatings, plasticizers, etc)
– Feedstock suppliers
– Chemical companies that are interested in producing FDCA
monomers and polymers
54

55. Our Furanics Program in a Nut Shell
PlasticsPropertiesCrops
Process
Fuels
Conversion
Lab
Pilot
C5 / C6
sugars
Engine test
Material
properties
Feedstock Testing Application Development
2009 - 2012 Time Frame with partner logo’s

56. 56
Contact Information
gert-jan.gruter@avantium.com
www.yxy.com
Zekeringstraat 29 – 1014 BV – Amsterdam,
The Netherlands

57. Break
57

58. Van Gansewinkel
58

59. from waste management to material supply

60. “Survival of the fittest”

63. Landfill map

64. Golfclub “Gulbergen”
> 300 landfill areas
> 40 golf courses…

68. Biological
nutrients
Technical
nutrients
Second skin approach Second life approach Renewable energy

69. Waste No MoreWaste No More
Indepth product and
market knowledge
are essential for
a cycle approach
in the material clusters
Customer Collection
Transh.
Pretreatm.
(sorting and
preconditioning)
Treatment
Recycling
Transport
Transport
(End)
Treatment
Raw Material
Transport
Customer

73. Product Parts
Production
Waste
Consumer / (End)user
Raw Materials
Down Stream Production
Sales – Financing - Distribution
€€€€
€€€
€
€€

74. Waste
Collection
Recycling
Energy from Waste
Raw Materials
€€
€
€€

75. Re-Use /
Refurbish
Recycle

85. Without Planet & People…
No Profit

86. 86

87. Discussion
1. Creating and capturing value from sustainability throughout the value
chain
What is your vision?
What is your role?
2. Drivers of sustainable development..
What? Performance? Price – green premium? Marketing?
Who? Market pull versus technology push
3. How to create synergy between the bio-based developments and
recycling initiatives?
4. How will this impact…
Your value chain position and business partners?
The value chain dynamics?
87

88. Create value from waste
Sustainability Stewardship through Entire Value Chain
88
Raw
Materials
Production
Re-use &
recycling
Packaging &
Transportation
Customer
use
Enable use of renewable
energy and raw materials
Enable resource conservation
by customers and end-use
consumers
Optimize packaging and
transportation logistics to
minimize energy and materials
requirements and reduce
potential for accidents
Minimize waste and
consumables
Use renewable and reclaimed
external feed stocks
Increase energy efficiency and
reduce greenhouse gas
emissions
Design less toxic and
environmentally safer products
and processes

89. Sustainable environmental system management and integral value chain
approach
89
Raw Materials
Production
Re-use &
recycling
Packaging &
Transportation
Customer use
NGO’s
Governments
Communities
Partners
Employees
Investors
Raw
Materials
Production
Re-use &
recycling
Packaging &
Transportation
Customer
use

90. Drinks and Dinner
“Club zaal” at 1st floor
90

91. 91
S Q U A R E W I S E
Claude Debussylaan 48, 1082 MD Amsterdam
T +31 (0) 20 4473925 F +31 (0) 20 6110419
E-mail: info@squarewise.com
Internet: www.squarewise.com
KvK te Amsterdam 341.38.272