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Novamont
Pioneer in Development of the Bioplastics Market




         Ontario BioAuto Council-CPIA
                  April 2, 2008
Presentation Outline



• Novamont History

• Mater-Bi™

• Novamont’s new achievements- Origo-Bi™




                                           NOVAMONT CONFIDENTIAL
NOVAMONT ORIGINS
        -THE LIVING CHEMISTRY PROJECT (1989)-

                         FERRUZZI
                       MONTEDISON



MONTECATINI                                    ERIDANIA
                           FERTEC             BEGHIN SAY
    (DONEGANI       (FERRUZZI RESEARCH AND
                                               (VILVOORDE
    INSTITUTE)           TECHNOLOGY)
                                             RESEARCH CENTER
•HIMONT (PP)
                                             •CERESTAR
•MONTEFIBRE                                  (STARCH)
(PET)
                                             •CEREOL (OILS)
•VEDRIL (PMMA)
                                             •ERIDANIA-
•MONTEFLUOS                                  BEGHIN SAY
(FLUORINATED      INTEGRATION OF CHEMISTRY   (SUGAR)
POLYMERS)             AGRICULTURE AND
                                             •CENTRAL SOIA
•FARMITALIA             ENVIRONMENT
                                             •PROVIMI
•AGRIMONT
                                             •AGRA
•ETC.
                                             •ETC.
                                                 NOVAMONT CONFIDENTIAL
NOVAMONT
       HISTORICAL BACKGROUND

• 1989: FERTEC formed by MONTEDISON starting as a
  spin-off of IGD (Donegani Institute)
  (Main projects:materials, paper additives, biodiesel fuel,
  cobuilders for detergency, craking of carbohydrates)
• 1991: merger of FERTEC in NOVAMONT
• 1994: NOVAMONT focus on materials
• 1996: NOVAMONT acquired by BCI (Banca
  Commerciale Italiana) merchant bank (today BancaIntesa,
  the major Italian banking group) and INVESTITORI
  ASSOCIATI (the largest private equity fund in Italy)


                                                 NOVAMONT CONFIDENTIAL
NOVAMONT PROFILE
• Market pioneer and leader in the sector of biodegradable
  materials with focus on renewable resources

•    Tailor-made materials for a wide range of industrial
    applications (composting, packaging, hygiene, agriculture,
    food serviceware, tires) under the tradename Mater-Bi™

• Focus on research and development as the driving force of
  Novamont industrial development (>10% of turnover , more
  than 30% of the human resources dedicated to research)

• More than 100 articles, about 80 patent families, 9 awards,
  >90ML$ of investment

                                                   NOVAMONT CONFIDENTIAL
NOVAMONT PATENT PORTFOLIO
             100
                                                2001: EXCLUSIVE LICENCE OF
                                                   BIOTEC’S PATENTS IN THE
                                                  SECTOR OF FILM INDUSTRY
n° PATENTS




                              1997: ACQUISITION OF ALL
                             WARNER LAMBERT PATENT
                                            PORTFOLIO




               0
               1989   1991       1993       1995         1997   1999     2001      2003      2005

                                                     YEAR




                                                                                NOVAMONT CONFIDENTIAL
                                                                                 NOVAMONT CONFIDENTIAL
NOVAMONT
     APPROACH TO BIOPLASTICS
                       TECHNOLOGIES AT
                       LOW ENVIRONMENTAL
 RENEWABLE             IMPACT
 RESOURCES



     LIVING CHEMISTRY FOR QUALITY
                OF LIFE
                                  TAILOR MADE
                                 MATERIALS FOR
                                 APPLICATIONS
CONTRIBUTION TOTHE             ECONOMICALLY AND
    SOLUTION OF                ENVIRONMENTALLY
  ENVIRONMENTAL/                  SUSTAINABLE
     TECHNICAL/
 ECONOMICAL ISSUES
   OF A SECTOR OF
    APPLICATION                   NOVAMONT CONFIDENTIAL
NOVAMONT TECHNOLOGY
 CORN                 STARCH
KERNEL
                                DESTRUCTURIZED STARCH
            MILLING            + CHEMICAL MODIFICATIONS



                                                  AMORPHOUS
                                                 AMYLOSE AND
                                                AMYLOPECTINE




COMPLEXED
  STARCH
                                     +


                                          POLYMERIC
                                         COMPLEXING
                                            AGENTS

                                          NOVAMONT CONFIDENTIAL
MATER-BI
               AEROBIC BIODEGRADATION UNDER
          CONTROLLED COMPOSTING CONDITIONS EN 13432

                               100
Biodegradation


                                90
                                80
                                70
                 (CO2/ThCO2)




                                60
                                50                                Pure cellulose
                                40
                                                                  Mater-Bi(100um)
                                30
                                20
                                                                  Mater-Bi
     %




                                10                                (1mm)
                                 0
                                     0   10   20    30       40        50            60

                                              Time ( Days)
                                                                  NOVAMONT CONFIDENTIAL
MATER-BI GRADES FOR FILM
     -BIODEGRADATION BEHAVIOUR-

TOTALLY BIODEGRADABLE IN DIFFERENT
 ENVIRONMENTS:

• INDUSTRIAL COMPOSTING (EN13432, ASTM
  6400-99,UNI15782)

• HOME COMPOSTING

• SOIL
NOVAMONT PLANT
   IN TERNI




CAPACITY: 20000 ton/year   CERTIFIED ACCORDING TO ISO 9001 AND 14001


                                                        NOVAMONT CONFIDENTIAL
MATER-BI GRADES
PROCESSING TECHNOLOGIES
                                          g
                                     in
                                   rm
                               o fo
                              m
                            er
       Film            Th
                                                            es
     blowing                                       p articl
                                              na no

 extrusion
                                              foam
                                                     ing
               Injection
               molding




                                                NOVAMONT CONFIDENTIAL
NOVAMONT
      MAIN MARKET SEGMENTS
•   Agriculture
• Composting
• Food serviceware
• Hygiene
• Packaging
• Tires biofillers




                        NOVAMONT CONFIDENTIAL
MATER-BI GRADES           MATER-BI GRADES
 FOR WASTE BAGS            FOR MULCH FILM
• Yard waste and lawn
   & leaf bags


• Food and
  bio-waste bags




• Liners for restaurants


                                  NOVAMONT CONFIDENTIAL
SOME PROPERTIES OF MATER-BI
             STANDARD FILMS
TEST                  PROCEDURE          UNIT         MATER-BI      PE FILM
                                                      FILM
MFI                   ASTM D1238         dg/min       2-6           0.1-22
Strenght at break     ASTM D882          MPa          25-45         8-16

Elongation at break   ASTM D882          %            250-800       150-600
Young’s modulus       ASTM D882          MPa          100-450       100-200


Tear strength         ASTM D1938         N/m          30-150        60
Processability                           %            80-100        100

Permeability          LYSSY              gr30umm2*24h 500-1000      15
Compostability        CEN13432                        OK COMPOST    -
                      DIN54900                        DINCERTCO
In-use resistance:    VGS certificates   weeks        1-5           -
yard waste

                                                                   NOVAMONT CONFIDENTIAL
OTHER MATER-BI
 APPLICATIONS




          NOVAMONT CONFIDENTIAL
MATER-BI: MAIN CHARACTERISTICS

•BIODEGRADABLE AND COMPOSTABLE IN DIFFERENT ENVIRONMENTS


•PERFORMANCES COMPARABLE WITH TRADITIONAL PLASTICS

•PROCESSABILITY WITH STANDARD MACHINES AS FOR TRADITIONAL
PLASTICS

•HIGH BREATHABILITY (>1000 gr30um/24h m2 (ISO 2528 condition B)
WITH BIOLOGICAL BARRIER

•REDUCED ENVIRONMENTAL IMPACT (energy saving, resources saving,
reduction of greenhouse gas emissions (epd) ) VS STANDARD AND
BIODEGRADABLE NON RENEWABLE PLASTICS
ORIGO-BI TM: THE NOVAMONT
        POLYESTERS FROM RRM


  A RESULT OF THE INTEGRATION OF NOVAMONT’S
TECHNOLOGY ON RENEWABLE RAW MATERIALS FROM
  VEGETABLE OILS WITH EASTMAN’S TECHNOLOGY
  PLATFORM (EASTAR-BIO Patent portfolio, Know-how )
                     (8/2004)




                                       NOVAMONT CONFIDENTIAL
ORIGO-BITM vs MATER-BITM
                               Environmental Costs vs technical performances
Enivronmental Costs




                                             COMPLEXING
                                             AGENTS




                                                    ORIGO-BI


                                                     Mater-Bi


                                              Mater-Bi
                      starch


                                                Technical Performances
                                                                         NOVAMONT CONFIDENTIAL
TENSILE PROPERTIES
                                          -MODULUS vs ELONGATION AT BREAK-
                                                      COMPARATIVE DATA
                                    PLA
                                   PHB
                                 PS
M O D U L U S (M P a )



        3000
                                               PET

        2000
                                                                              PP
                                                                   ORIGO-BI
        1000
                                                       MATER-BI        HDPE
                                                                   PBS          ORIGO-BI
                                                        ORIGO-BI   MATER-BI PCL          ORIGO-BI
                         0                                                        LDPE EASTAR-BIO
                                                                       MATER-BI
                             0       100     200      300 400 500 600              700      800      900
                                                     ELONGATION AT BREAK (%)


                                                                                         NOVAMONT CONFIDENTIAL
THE BIOREFINERY INTEGRATED IN THE TERRITORY

                       COMPLEXED
                        STARCH
•LOCAL RAW            TECHNOLOGY
MATERIALS
                   STARCH                       NOVAMONT
•SPECIALIZED
CROPS              NANOPARTICLES

•INNOVATION IN        POLYESTERS
THE TERRITORY         FROM
                      VEGETABLE OILS
•TERRITORY AS
A LAB
                                               S.I.N.C.R.O.
•IMPLEMENTATI
ON OF                 MONOMERS FOR
                      POLYESTERS AND           50-50 Joint Venture between
ADEQUATE
                      CHEMICAL
STANDARDS             INTERMEDIATES            NOVAMONT and C.A.M.P.O.
•READYNESS TO                                  (cooperative of 600 farmers
ABSORB NEW                                     belonging to COLDIRETTI)
TECHNOLOGIES
                 TRANSFORMATION OF CO/BY-
•NEW             PRODUCTS IN CO-MONOMERS AND
INITIATIVES      ENERGY




                   BIOREFINERY
CONCLUSIONS


1.   MATER-BI : A RANGE OF TAILOR MADE MATERIALS WITH
     EXCELLENT TECHNICAL PERFORMANCES.

2.   PRODUCTS DESIGNED FOR POSITIVE ENVIORNMENTAL
     IMPACT THROUGH THE FULL LIFE CYCLE (CRADLE TO
     GRAVE).

3.   ORIGO-BITM THE NEW FAMILY OF RENEWABLE
     POLYESTERS (30-70%) TO ENLARGE THE RANGE OF
     NOVAMONT’S TAILOR MADE MATERIALS AND TO FURTHER
     STRENGTHEN TECHNICAL, ECONOMIC AND
     ENVIRONMENTAL PERFORMANCES




                                               NOVAMONT CONFIDENTIAL
Thank you!


    NOVAMONT CONFIDENTIAL

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Novamont Power Point

  • 1. Novamont Pioneer in Development of the Bioplastics Market Ontario BioAuto Council-CPIA April 2, 2008
  • 2. Presentation Outline • Novamont History • Mater-Bi™ • Novamont’s new achievements- Origo-Bi™ NOVAMONT CONFIDENTIAL
  • 3. NOVAMONT ORIGINS -THE LIVING CHEMISTRY PROJECT (1989)- FERRUZZI MONTEDISON MONTECATINI ERIDANIA FERTEC BEGHIN SAY (DONEGANI (FERRUZZI RESEARCH AND (VILVOORDE INSTITUTE) TECHNOLOGY) RESEARCH CENTER •HIMONT (PP) •CERESTAR •MONTEFIBRE (STARCH) (PET) •CEREOL (OILS) •VEDRIL (PMMA) •ERIDANIA- •MONTEFLUOS BEGHIN SAY (FLUORINATED INTEGRATION OF CHEMISTRY (SUGAR) POLYMERS) AGRICULTURE AND •CENTRAL SOIA •FARMITALIA ENVIRONMENT •PROVIMI •AGRIMONT •AGRA •ETC. •ETC. NOVAMONT CONFIDENTIAL
  • 4. NOVAMONT HISTORICAL BACKGROUND • 1989: FERTEC formed by MONTEDISON starting as a spin-off of IGD (Donegani Institute) (Main projects:materials, paper additives, biodiesel fuel, cobuilders for detergency, craking of carbohydrates) • 1991: merger of FERTEC in NOVAMONT • 1994: NOVAMONT focus on materials • 1996: NOVAMONT acquired by BCI (Banca Commerciale Italiana) merchant bank (today BancaIntesa, the major Italian banking group) and INVESTITORI ASSOCIATI (the largest private equity fund in Italy) NOVAMONT CONFIDENTIAL
  • 5. NOVAMONT PROFILE • Market pioneer and leader in the sector of biodegradable materials with focus on renewable resources • Tailor-made materials for a wide range of industrial applications (composting, packaging, hygiene, agriculture, food serviceware, tires) under the tradename Mater-Bi™ • Focus on research and development as the driving force of Novamont industrial development (>10% of turnover , more than 30% of the human resources dedicated to research) • More than 100 articles, about 80 patent families, 9 awards, >90ML$ of investment NOVAMONT CONFIDENTIAL
  • 6. NOVAMONT PATENT PORTFOLIO 100 2001: EXCLUSIVE LICENCE OF BIOTEC’S PATENTS IN THE SECTOR OF FILM INDUSTRY n° PATENTS 1997: ACQUISITION OF ALL WARNER LAMBERT PATENT PORTFOLIO 0 1989 1991 1993 1995 1997 1999 2001 2003 2005 YEAR NOVAMONT CONFIDENTIAL NOVAMONT CONFIDENTIAL
  • 7. NOVAMONT APPROACH TO BIOPLASTICS TECHNOLOGIES AT LOW ENVIRONMENTAL RENEWABLE IMPACT RESOURCES LIVING CHEMISTRY FOR QUALITY OF LIFE TAILOR MADE MATERIALS FOR APPLICATIONS CONTRIBUTION TOTHE ECONOMICALLY AND SOLUTION OF ENVIRONMENTALLY ENVIRONMENTAL/ SUSTAINABLE TECHNICAL/ ECONOMICAL ISSUES OF A SECTOR OF APPLICATION NOVAMONT CONFIDENTIAL
  • 8. NOVAMONT TECHNOLOGY CORN STARCH KERNEL DESTRUCTURIZED STARCH MILLING + CHEMICAL MODIFICATIONS AMORPHOUS AMYLOSE AND AMYLOPECTINE COMPLEXED STARCH + POLYMERIC COMPLEXING AGENTS NOVAMONT CONFIDENTIAL
  • 9. MATER-BI AEROBIC BIODEGRADATION UNDER CONTROLLED COMPOSTING CONDITIONS EN 13432 100 Biodegradation 90 80 70 (CO2/ThCO2) 60 50 Pure cellulose 40 Mater-Bi(100um) 30 20 Mater-Bi % 10 (1mm) 0 0 10 20 30 40 50 60 Time ( Days) NOVAMONT CONFIDENTIAL
  • 10. MATER-BI GRADES FOR FILM -BIODEGRADATION BEHAVIOUR- TOTALLY BIODEGRADABLE IN DIFFERENT ENVIRONMENTS: • INDUSTRIAL COMPOSTING (EN13432, ASTM 6400-99,UNI15782) • HOME COMPOSTING • SOIL
  • 11. NOVAMONT PLANT IN TERNI CAPACITY: 20000 ton/year CERTIFIED ACCORDING TO ISO 9001 AND 14001 NOVAMONT CONFIDENTIAL
  • 12. MATER-BI GRADES PROCESSING TECHNOLOGIES g in rm o fo m er Film Th es blowing p articl na no extrusion foam ing Injection molding NOVAMONT CONFIDENTIAL
  • 13. NOVAMONT MAIN MARKET SEGMENTS • Agriculture • Composting • Food serviceware • Hygiene • Packaging • Tires biofillers NOVAMONT CONFIDENTIAL
  • 14. MATER-BI GRADES MATER-BI GRADES FOR WASTE BAGS FOR MULCH FILM • Yard waste and lawn & leaf bags • Food and bio-waste bags • Liners for restaurants NOVAMONT CONFIDENTIAL
  • 15. SOME PROPERTIES OF MATER-BI STANDARD FILMS TEST PROCEDURE UNIT MATER-BI PE FILM FILM MFI ASTM D1238 dg/min 2-6 0.1-22 Strenght at break ASTM D882 MPa 25-45 8-16 Elongation at break ASTM D882 % 250-800 150-600 Young’s modulus ASTM D882 MPa 100-450 100-200 Tear strength ASTM D1938 N/m 30-150 60 Processability % 80-100 100 Permeability LYSSY gr30umm2*24h 500-1000 15 Compostability CEN13432 OK COMPOST - DIN54900 DINCERTCO In-use resistance: VGS certificates weeks 1-5 - yard waste NOVAMONT CONFIDENTIAL
  • 16. OTHER MATER-BI APPLICATIONS NOVAMONT CONFIDENTIAL
  • 17. MATER-BI: MAIN CHARACTERISTICS •BIODEGRADABLE AND COMPOSTABLE IN DIFFERENT ENVIRONMENTS •PERFORMANCES COMPARABLE WITH TRADITIONAL PLASTICS •PROCESSABILITY WITH STANDARD MACHINES AS FOR TRADITIONAL PLASTICS •HIGH BREATHABILITY (>1000 gr30um/24h m2 (ISO 2528 condition B) WITH BIOLOGICAL BARRIER •REDUCED ENVIRONMENTAL IMPACT (energy saving, resources saving, reduction of greenhouse gas emissions (epd) ) VS STANDARD AND BIODEGRADABLE NON RENEWABLE PLASTICS
  • 18. ORIGO-BI TM: THE NOVAMONT POLYESTERS FROM RRM A RESULT OF THE INTEGRATION OF NOVAMONT’S TECHNOLOGY ON RENEWABLE RAW MATERIALS FROM VEGETABLE OILS WITH EASTMAN’S TECHNOLOGY PLATFORM (EASTAR-BIO Patent portfolio, Know-how ) (8/2004) NOVAMONT CONFIDENTIAL
  • 19. ORIGO-BITM vs MATER-BITM Environmental Costs vs technical performances Enivronmental Costs COMPLEXING AGENTS ORIGO-BI Mater-Bi Mater-Bi starch Technical Performances NOVAMONT CONFIDENTIAL
  • 20. TENSILE PROPERTIES -MODULUS vs ELONGATION AT BREAK- COMPARATIVE DATA PLA PHB PS M O D U L U S (M P a ) 3000 PET 2000 PP ORIGO-BI 1000 MATER-BI HDPE PBS ORIGO-BI ORIGO-BI MATER-BI PCL ORIGO-BI 0 LDPE EASTAR-BIO MATER-BI 0 100 200 300 400 500 600 700 800 900 ELONGATION AT BREAK (%) NOVAMONT CONFIDENTIAL
  • 21. THE BIOREFINERY INTEGRATED IN THE TERRITORY COMPLEXED STARCH •LOCAL RAW TECHNOLOGY MATERIALS STARCH NOVAMONT •SPECIALIZED CROPS NANOPARTICLES •INNOVATION IN POLYESTERS THE TERRITORY FROM VEGETABLE OILS •TERRITORY AS A LAB S.I.N.C.R.O. •IMPLEMENTATI ON OF MONOMERS FOR POLYESTERS AND 50-50 Joint Venture between ADEQUATE CHEMICAL STANDARDS INTERMEDIATES NOVAMONT and C.A.M.P.O. •READYNESS TO (cooperative of 600 farmers ABSORB NEW belonging to COLDIRETTI) TECHNOLOGIES TRANSFORMATION OF CO/BY- •NEW PRODUCTS IN CO-MONOMERS AND INITIATIVES ENERGY BIOREFINERY
  • 22. CONCLUSIONS 1. MATER-BI : A RANGE OF TAILOR MADE MATERIALS WITH EXCELLENT TECHNICAL PERFORMANCES. 2. PRODUCTS DESIGNED FOR POSITIVE ENVIORNMENTAL IMPACT THROUGH THE FULL LIFE CYCLE (CRADLE TO GRAVE). 3. ORIGO-BITM THE NEW FAMILY OF RENEWABLE POLYESTERS (30-70%) TO ENLARGE THE RANGE OF NOVAMONT’S TAILOR MADE MATERIALS AND TO FURTHER STRENGTHEN TECHNICAL, ECONOMIC AND ENVIRONMENTAL PERFORMANCES NOVAMONT CONFIDENTIAL
  • 23. Thank you! NOVAMONT CONFIDENTIAL