COLLABORATION TO DRIVE INNOVATION: MODERN BIO-REFINERIES

CRIBE Lignin Work ShopMontreal, September 2019

MATTI HEIKKILÄCTO

EUROPEAN UNION

Goals• promote peace, its values and the well-being of

its citizens• offer freedom, security and justice without

internal borders• sustainable development based on balanced

economic growth and price stability, a highly competitive market economy with full employment and social progress, and environmental protection

• combat social exclusion and discrimination• promote scientific and technological progress• enhance economic, social and territorial

cohesion and solidarity among EU countries• respect its rich cultural and linguistic diversity• establish an economic and monetary union

whose currency is the euro.

EUROPEAN UNION

Goals• promote peace, its values and the well-being of its

citizens• offer freedom, security and justice without internal

borders• sustainable development based on balanced

economic growth and price stability, a highly competitive market economy with full employment and social progress, and environmental protection

• combat social exclusion and discrimination• promote scientific and technological progress• enhance economic, social and territorial

cohesion and solidarity among EU countries• respect its rich cultural and linguistic diversity• establish an economic and monetary union whose

currency is the euro.

HORIZON 2020

Horizon 2020 is the biggest EU Research and Innovation programme ever with

nearly

80 €B of funding available over 7 years (2014

to 2020) – in addition to the private investment that this money will attract.

It promises more breakthroughs, discoveries and world-firsts by taking

great ideas from the lab to the market.

Excellent Science

Societal Challenges

Industrial Leadership

BIC is the private partner in the BBI JUA € 3,7 billon public-private partnership

About Bio-based Industries Joint Undertaking (BBI JU)• Public-Private Partnership (PPP) with European Commission (Horizon 2020)• PPP aims to invest € 3.7 billion in bio-based innovation (2014 to 2020)

About Bio-based Industries Consortium (BIC)• BIC represents the private sector in the BBI JU• > 220 industry members (from 45+ in 2013): across the value chain and sectors, of

which over 80% SME• > 160 Associate members e.g. universities, think tanks, R&D clusters

Our Mission• Build new bio-based value chains• Create favorable business and policy climate to accelerate market uptake

INNOVATION SYSTEM

EU•Values

H2020•Budget and Objectives

BBI•Industry leadership•Creates the Vision•Chooses the projects that match bio-based industry needs

BIC•Creates the strategy•Creates the content for the calls

•Chooses BBI Board•Promotes networking

Project Consortiums•Operative action:•R&D•Pilots•Demos •Flagships

Companies:•Commercialization•Employment•Implementing the values

Unchanging 7 Years 1 Year 1 Year 6 Months 1 Month

INNOVATION SYSTEM

EU•Values

H2020•Budget and Objectives

BBI•Industry leadership•Creates the Vision•Chooses the projects that match bio-based industry needs

BIC•Creates the strategy•Creates the content for the calls

•Chooses BBI Board•Promotes networking

Project Consortiums•Operative action:•R&D•Pilots•Demos •Flagships

Companies:•Commercialization•Employment•Implementing the values

Unchanging 7 Years 1 Year 1 Year 6 Months 1 Month

Money comes from H2020 and the participating companies

INNOVATION SYSTEM

EU•Values

H2020•Budget and Objectives

BBI•Industry leadership•Creates the Vision•Chooses the projects that match bio-based industry needs

BIC•Creates the strategy•Creates the content for the calls

•Chooses BBI Board•Promotes networking

Project Consortiums•Operative action:•R&D•Pilots•Demos •Flagships

Companies:•Commercialization•Employment•Implementing the values

Unchanging 7 Years 1 Year 1 Year 6 Months 1 Month

Companies report to consortiums who report to European Commission and BBI to track progress

INNOVATION SYSTEM

EU•Values

H2020•Budget and Objectives

BBI•Industry leadership•Creates the Vision•Chooses the projects that match bio-based industry needs

BIC•Creates the strategy•Creates the content for the calls

•Chooses BBI Board•Promotes networking

Project Consortiums•Operative action:•R&D•Pilots•Demos •Flagships

Companies:•Commercialization•Employment•Implementing the values

Unchanging 7 Years 1 Year 1 Year 6 Months 1 Month

BBI also tracks the actual costs including additional investments, and created value within the industry. BBI reports to European Commission to track impact of funding

METGEN AND BBI JU FUNDING - A SUCCESS STORY

• BBI JU and BIC open innovation approach is aligned with MetGen’s own strategy: to be the best in what we are doing and collaborate for getting maximum impact through our solutions on consumers, society and environment

• MetGen only applies for projects where we have a clear role, and our activities are according to our strategy.

• The programme has provided an ideal opportunity for MetGen to increase the TRL levels of our products.

• As part of the BBI JU and BIC, a SME can collaborate with large industry players. As a result, MetGen has great opportunities to prove their place in the new value chain(s).

• We have been able to move forward in three key areas: • demonstration and deployment of novel technologies to enable new chemicals, building blocks,

materials and consumer products to commercial level; • developing value-chains linking biomass production to B2B and B2C markets; • and setting up flagship biorefinery

• We are fully convinced that a institutional private-public partnership for the bio-based industries is the best system to date to provide industry leadership to public funding.

METGEN’S ”WHY”

PULP AND PAPER

RENEWABLE CHEMICALS

BIOMATERIALS

VOLUME OFCELLULOSIC

BIOMASS

Platform Chemicals / Plastics / Fuels

Lignin-based polymers // Fibre / Nanocellulose

Packaging /Tissue / Paper

WASTE WATER & SIDE STREAMS

Clean water / Biogas /Chemical building blocks

MISSION: EMPOWER INDUSTRIES TO GET MOST OUT OF BIOMASS

METGEN’S ”WHAT”ENZINE® TECHNOLOGY PLATFORM

• FAST: Industry leading short development cycle

• FLEXIBLE: Tailored enzyme design approach to meet challenging industrial conditions

• ADAPTABLE: Can produce large amounts of different enzymes, cost-effectively and supply globally

• PROVEN: Developed several novel and IP protected enzymes from concept to validation at industrial scale and production

UniqueCombination

Identified Customer Challenge

Piloting and scale-up

Technical support

Industrial supply of enzyme

Designing, cloningand screening

Applicationtesting

METGEN’S ”HOW”FINDING WHERE ENZYMES CAN HELP

SUBSTRATEVarious feedstocks and

pre-treatmentsLIGNO™

SUGARutilization

FermentationPURECO™

BIOCHEMICALconversions

Chemical building blocksPURECO™

Side streams and environment

Water & BiogasFORICO™FORCI™

HYDROLYSIS& de-toxification

Sugar platformSUNO™

LIGNO™

Enzymatic technologies work seamlessly with chemical and mechanical solutions creating a full value-chain

METGEN’S “HOW” ADRESSING VALUE-CHAINS THROUGH OPEN INNOVATION

LIGNIN

FIBRE

MARINE DIESEL & FUEL ADDITIVES

POLYMER APPLICATIONS

SUGARS

RENEWABLE PLASTIC

CHEMICAL BUILDING BLOCKS

FIBRE MODIFICATION & PROPERTY IMPROVEMENTS

INHIBITOR RESISTANT GLUCOSE BIOCONVERSION

HYDROLYSIS SOLUTION + DETOXIFICATION & LIGNOLYTIC ENZYMES

LIGNOLYTIC ENZYMES

NEW PRODUCTS

VALUE-CHAINS

45 25

M€100PARTNERS60

PROJECTS11MORE SUSTAINABLE

PAPER & PACKAGING & NEW MATERIALS

LIGNIN FRACTIONATION & MODIFICATION TECHNOLOGY

ENZYMATICALLY TREATED LIGNIN PRODUCTIZATION REPLACING OIL

APEX SME Instrument

National level

support for R&D

Market Uptake

LIGNIN RELATED R&D

METGEN AND EU FUNDING

BIOrescue RIA

ButaNexT RIA

ReTAPP Fast Track to Innovation

BIOFOREVER Demo

VEHICLE Demo

SWEETWOODS Flagship

UNRAVEL RIA

WoodZymes RIA

FALCON RIA

SCALE UP

CROSS SECTOR COLLABORATION

MULTIPLE VALUE CHAINS

DIVERSIFY ACTIVITIES AND

BROADEN PORTFOLIOS

PRODUCTS TO MARKET

METGEN HAS BEEN AWARDED

IN TOTAL 12.7 M€ AS EU H2020 GRANTS FOR

11AMBITIOUS PROJECTS

ACKNOWLEDGEMENT OF PUBLIC EU H2020 FUNDING

These projects have received funding from the Bio Based Industries Joint Undertaking under the European Union’s Horizon 2020 research and innovationprogramme under grant agreements No: SWEETWOODS (792061), WoodZymes (792070), UNRAVEL (792004), BIOrescue (720708), BIOFOREVER (720710).FALCON and ButaNexT have received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreements No(720918) and (640462). APEX has received funding from the European Union’s Horizon 2020 SME-instrument under grant agreement No (666346).

80tons / day

Sustainable hardwood biomass

SWEETWOODS PROJECT43 M€ INTEGRATED BIOREFINERY FLAGSHIP

LIGNIN

SUGARS

SWEETWOODS Project is granted 21 million euros in funding under the EU’s Horizon 2020 programme’s Bio-Based Industries financial instrument.

Bio-IBN2G Ethanol

Fructose & Glucosone PLA

Xylitolfor Renewable Platform

chemicals, including bioplastics such as PEF

& PBF

BiocompositesElastomeric foams

Polyurethane foamsCosmetics

Carbon nanofiberCar tires

AromaticsResin for MDF,

plywood, paints…And many others

METNIN™ END-USER APPLICATIONS

RESINS BARRIERS AND COATINGSPOLYMERS

FROM FOREST TO BRANDS – WHERE METNIN™ FITS?

New BiorefineriesExisting Pulp

Mills with lignin

LIGNIN SEPARATION

TECHNOLOGYe.g. LignoBoost

LIGNINMODIFICATIONw/ METNIN™

CHEMICAL & MATERIAL

COMPANIES

BRANDSe.g. Coca-Cola,

IKEA, LEGO, Nike

Refining lignin is not in the core of pulp mills business

Forestry companies are not interested or able to bridge the gap to chemical and material companies

First step is isolation and purification of the lignin stream

Lignin isolation and purification is only justified for avoiding boiler investments

This is potential capital investment for P&P companies IF there is market uptake

Key step is to tailor specific fractions to match the industry requirements

Not only the size by degree of function, dispersion, solubility, inorganic content, morphology, TG, and odour are tailored

Various fractions can be made and their ratio can be controlled to match the market demand

Already running product development and pending results ready for Letter of Commitment / off-take agreements

Reliable/credible supply-chain is already being built

Brands have a clear drive towards sustainable materials

Progress ongoing to get Letters of Interest and Support from the brands to show leadership in the bio-based economy.

RESPONSIBILITES & OPPORTUNITIES ON MANY LEVELS

• National and International funding agencies benefit from a system where the industry defines the necessary scientific, technical, and business model innovations– Not the bureaucrats, lobbyist, politicians, or individual companies– Value-chains are the new way to create and hold on to value

• Each company benefits from adopting a collaborative open innovation model– Lose the not-invented-here syndrome– More can be achieved when you triangulate with others

• Everything starts on individual level– You have more power than you think– Be audacious– Start now

BIO-BASED INDUSTRY REVOLUTION REQUIRES ONLY ONE MORE THING:

COLLABORATION!

MATTI HEIKKILÄCTO

matti@metgen.com

ENZYMATIC LIGNIN VALORIZATION WITH METNIN™ TECHNOLOGY

METNIN™

METNIN™ IMPACT ON LIGNIN

Key-component of METNIN™ is a lignolytic enzymesolution with optimal performance in high pH (~11)

METNIN™ enables more efficient and more specificoxidation of lignin, generating highly active ligninfractions and leading to fractionation, demethylation andfunctionalization.

e-

ENZYME IMPACT ON LIGNIN

·

·

Stable smaller MW fragments; monomers, dimers, oligomers

Demethylation Depolymerisation

Polymerisation

Repolymerisation

Lignin Polymer

Increased number of reactive sites

More conjugated structures

Further oxidation

Active radical

reactive intermediates

ENZYME IMPACT ON LIGNIN

·

·

Stable smaller MW fragments; monomers, dimers, oligomers

Demethylation Depolymerisation

Polymerisation

Repolymerisation

Lignin Polymer

Increased number of reactive sites

More conjugated structures

Further oxidation

Active radical

reactive intermediates

ENZYMATIC LIGNIN FRACTIONING PROCESS

MET-MICRO LIGNIN

MET-ULTRA: MET-NANO:

INSOLUBLEFRACTION

PROCESS IMPACT ON LIGNIN

BATCH MODE:Strong repolymerization (in minutes)• Can be controlled with pH• Non-controlled process• Will happen in industrial concentrations

CONTINUOUS MODE:Controlled depolymerisation process• Small mw particles removed from reaction• Allows for more efficient depolymerization• Repolymerization completely prevented

CONTROL OVER THE MOLECULAR WEIGHT (MW) AND STABILITY:

METNIN™ IMPACT ON LIGNIN

FRACTIONATION DEMETHYLATION ACTIVATION

Analysis provided by Prof. N. Labbéet al. Department of Forestry, University of Tennessee, USA.

SELECTED CHARACTERISTICS OF THE LIGNIN MW FRACTIONS

FRACTION Mw (kDa)

-OHtotal(mmol/g)

-OHphenolic (mmol/g)

-OHaliphatic (mmol/g)

TGA T5% (°C)

Tg(°C)

Crude lignin* 7.5-8.3 4.4 1.6 2.9 203 170-182

MET-MICRO** 10.7 6.8 1.7 4.4 241 N/A

MET-ULTRA** 2.2 7.7 1.7 4.7 247 141

MET-NANO* 0.6 7.3 3.4 3.0 252 95

*Analysis by lignin provider**Analysis by Latvian State Institute of Wood Chemistry (Riga)

DISPERSITY, POLARITY, & HYDROGEN BONDING

The results for the dispersive (δD), polar (δP) and hydrogen bonding (δH) interactions terms of the HSPs as well as the radius of a Hansen solubility sphere (R0) are given below.

METNIN ULTRAACID PRECIPITATED

METNIN ULTRA

CONDITIONS IMPACT ON FRACTIONS

CHARACTERISTIC OF ENZYME ACTIVATED LIGNIN CAN BE MODIFIED TO FIT THE APPLICATION, INCLUDING ODOR AND COLOR

LOWER TG / SOFTER & FLEXIBLE MATERIALS

MORE SOLUBLE TO SOLVENTS

MORE SOLUBLE TO WATER

MORE STRENGTH

NOVEL LIGNIN FORMULATIONS – EXAMPLE CASE

Highlights

External sizing Internal sizing

Formulations with different lignin fractions

Water contact angle – achieved above 120⁰ for lignin based materials

Sizing, Barriers, Structural strength aids, cosmetic applications, coatings, adhesives, etc

ENZYMATIC LIGNIN REFINING ADDS VALUE

FROM FOREST TO BRANDS – WHERE METNIN™ FITS?

New BiorefineriesExisting Pulp

Mills with lignin

LIGNIN SEPARATION

TECHNOLOGYe.g. LignoBoost

LIGNINMODIFICATIONw/ METNIN™

CHEMICAL & MATERIAL

COMPANIES

BRANDSe.g. Coca-Cola,

IKEA, LEGO, Nike

Refining lignin is not in the core of pulp mills business

Forestry companies are not interested or able to bridge the gap to chemical and material companies

First step is isolation and purification of the lignin stream

Lignin isolation and purification is only justified for avoiding boiler investments

This is potential capital investment for P&P companies IF there is market uptake

Key step is to tailor specific fractions to match the industry requirements

Not only the size by degree of function, dispersion, solubility, inorganic content, morphology, TG, and odour are tailored

Various fractions can be made and their ratio can be controlled to match the market demand

Already running product development and pending results ready for Letter of Commitment / off-take agreements

Reliable/credible supply-chain is already being built

Brands have a clear drive towards sustainable materials

Progress ongoing to get Letters of Interest and Support from the brands to show leadership in the bio-based economy.

BASIC ENGINEERING PACKAGE

BASIC ENGINEERING PACKAGE

INVESTMENT COST AND CASH FLOW

PLANT CAPACITY (feed) 20t DS/ day

INVESTMENTBUILDING 1060k€EQUIPMENT 1780k€OTHERS 1350k€TOTAL INVESMENT COST 4190k€

CASH FLOWOPERATING DAYS 350days/ yearRAW MATERIAL UTILIZATION 70%RAW MATERIAL COST 200€/t DSOPERATING COST 100€/t DSPRODUCT PRICE 800€/t DS

INCOME 3920k€/ yearRAW MATERIAL COST -1400k€/ yearOPERATING COST (including enzymes) -490k€/ yearCASH FLOW 2030k€/ year

METNIN™ TECHNOLOGY SUMMARY

• Technology has reached commercial maturity• Enabling groundbreaking and novel new lignin-based materials• Techno-economic assessment and basic engineering indicate commercial

feasibility • Large network of existing collaboration partners working at every stage of

the value-chain – including end users – prove the market pull

• MetGen is looking for licensors, off-takers, and strategic collaboration partners to accelerate the industrial commercialization of the technology