HORIZON 2020 EUROPEAN UNION FUNDING FOR RESEARCH & INNOVATION

PEF, a 100% bio-based polyester: Synthesis, Properties & Sustainability GJ Gruter, Avantium

Avantium introduction

YXY Technology (PEF, next generation polyester)

PEF properties

PEF markets

Development – Pilot Plant/ Road to commercialization

New Chemistries: Mekong Technology (MEG)

New Chemistries: Zambezi Technology (2G glucose)

Summary

2

Agenda

Avantium Business Units

3

YXY technology

development Catalysis R&D

systems & services

Profitable, cash-flow positive &

growing business

Next generation bio-based

furanic monomer and polymer

technology

New Chemistry

project portfolio

Innovative routes from biomass

to chemicals

- Lignocellulosic (2G) glucose

- Direct route to MEG from

carbohydrates

Avantium profile

Advanced Technology Foundations:

– High-throughput catalyst discovery & development

Biobased Chemicals Company:

– YXY: Cost effective catalytic process to convert plant based feedstock into chemical

building blocks: FDCA and Levulinics and materials: PEF

– Mekong: Cost effective catalytic process to convert C6 carbohydrates to MEG

– Zambezi: Cost effective high purity glucose from lignocellulosic biomass.

The Coca-Cola Company, Danone, ALPLA YXY partners for the development of 100%

bio-based PEF bottles. Wifag-Polytype for PEF thermoformed products. New

partnerships for PEF films and fibers (carpets) initiated.

Privately held: supported by Swire, TCCC, Danone, ALPLA, Sofinnova, Capricorn, ING,

Aescap, Aster (€35M financing round closed summer 2014).

150+ employees, Headquarters in Amsterdam, Pilot plant in Geleen, the Netherlands

Planned commercial production of PEF in 2018 4

PEF - The Next Generation Polyester

5

FDCA

C6-Sugars Crude oil

Confidential

PTA bioMEG MEG

Today:

BioPET

20% Plants

Yesterday:

PET

100% Fossil

Tomorrow:

PEF

100% Plants

Options overview by atom efficiency (theoretical max weight yield from C6 carbohydrates)

6

MEG

GEV

O T

PA

C2 = ethylene

O2

O2

O2

O2

O2

O2

O2

O2

O2

O2

O2

H2O

H2O

H2O

CO2

CO2

CO2

PEF has barrier !

7

PEF: the Next Generation Polyester

Superior performance over PET:

– O2 barrier: 10x improvement

– H2O barrier: 2x improvement

– CO2 barrier: 4x improvement

Improved Thermal Stability

– Tg: ~88°C 12°C higher than PET

Excellent Mechanical Properties:

– Tensile Modulus PEF : 1.6* PET

Significant reduction in carbon footprint*

– 70% lower carbon emission

– 65% lower NREU

* Patel et al. Energy Environ. Sci. 2012, 5, 6407 8

Carbon dioxide

(CO2)

4x

Water (H2O)

2x

Oxygen (O2)

10x

Improved Crystallization Behavior No co-monomer needed to

reduce crystallization rate.

PEF exhibits well behaved stress-strain curves and strain hardening

behavior.

PEF rheology comparable with typical PET grades

PEF heat distortion temperature is ~12°C higher than PET (77°C

PEF vs 65°C for PET)

Hydrolytic stability similar as PET

9

Additional properties

YXY Technology The New PEF Supply Chain

10

MMF FDCA PEF oxidation

polymerization

processing

dehydration

Existing PET assets Existing ISBM assets

PEF can be Produced in Existing PET Assets

Chemical catalytic process

Cost competitive at industrial scale

Proven at pilot plant scale

Fit with existing assets

Existing

thermoforming

assets

YXY Technology Demonstrated at Pilot Plant

11

Location: Chemelot site (‘Brightlands’) in Geleen, the Netherlands

Start operations: December 2011

Name plate capacity: 20 tpy crude MMF; 5 tpy pFDCA isolated; expansion

planned

Objective: demonstrate YXY technology scale-up and produce volumes FDCA for

application development

Organization: 24/7 operational, under full control and ownership of Avantium

From lab scale to pilot plant scale

Targeting Multi-Bn$ Markets - create market Pull

12

PET Film 5 mT

Rigid thermoformed

packaging

Flexible packaging

PET Fibers 43 mT

Carpet

Clothing

Tire cords

=

=

PET Bottles

18 mT

PET Film

5 mT

PET Fibers

43 mT

= PET Bottles 18 mT

Expected market growth

7-8% p.a.

PEF Performance Enables Penetration of Existing and New Markets

13

Current markets:

New markets:

glass aluminum carton foil

First PEF T-shirts of 100% recycled PEF bottles

Made from 100% Recycled PEF

100% Biobased

Conventional polyester dyeing

technology

Conventional polyester spinning

technology

14 Thesis Dolmans ITA, RWTH 2013

Safety

Food Contact Safety studies finalized:

– Polymer and monomer are safe

– EFSA petition filed in 2013; positive opinion

published 2014

– FDA registration under preparation

Safety studies FDCA monomer to support

REACH registration:

– Monomer is demonstrated to be safe

– REACH registration completed 2013

15

Recycling

Goal: find the optimal end-of-life solution for PEF polymer

– Close collaboration with recycling community and partners

End goal: PEF to PEF recycling:

– Mechanical recycling: demonstrated (similar to PET)

– Chemical recycling: demonstrated PEF depolymerization

– Conducting sorting trials at PET recyclers

– Conducting trials of potential effects of PEF in rPET streams

16

Why is PEF attractive for brand owners

17

‘Why is PEF, a Next Gen Polymer Interesting?’

Cost benefit

Potential to reduce need for expensive barrier technologies and

light weighting

Consumer benefit

More packaging choices; longer shelf life

Environmental benefit

Reduction in carbon footprint

Supply Chain benefit

Different sourcing options from biobased feedstock; retrofit in

non-economic assets

YXY Technology Road to Commercialization

18

Pilot Plant scale Commercial scale Industrial scale

On stream On stream 2018 On stream in >2020

Name plate capacity:

5tpa PEF

Name plate capacity:

5-50 ktpa

Name plate capacity:

>200 ktpa

Goal: prove technology Goal: commercial launch of

PEF Bottle by partners

Goal: roll-out of PEF bottles

through beverage markets

Owned & Operated by

Avantium

Own & Operate and/or Joint

Venture

Licensing model for global

deployment of technology

Avantium Business Units

19

YXY technology

development Catalysis R&D

systems & services

Profitable, cash-flow positive &

growing business

Next generation bio-based

furanic monomer and polymer

technology

New Chemistry

project portfolio

Innovative routes from biomass

to chemicals

- Lignocellulosic (2G) glucose

- Direct route to MEG from

carbohydrates

Hurdles for scale bio-based

chemicals adoption

Cost: inefficient (petro-based)

conversion routes

Sustainability: need 2G supply

for long term sustainability

Quality: no cost competitive

high-purity 2G-glucose available

Avantium New Chemistry Research – our vision

20

Avantium has found efficient routes from 2G feedstock

to bio-chemicals based on its leading chemical catalysis know-how

Theoretical yield from sugar

67% 29%

FD

CA

(P

EF

)

87%

ME

G (

via

Hyd

rog

en

oly

sis

)

100% 46%

PlantBottleTM program by Coca-Cola and its stated goal to

reach 100% use of Bio-MEG in all its PET bottles generates

a market of at least 1 million ton per year by 2020

MEKONG:

One step conversion from C6 to Bio-MEG

21

Today Bio-MEG is produced in a four-step process that was

optimized for fossil feedstock, leading to significant price

premium over petro-MEG C6

MEG Hydration

Fermentation Dehydration

Oxidation Avantium has developed a one-step, highly selective

hydrogenolysis conversion from C6 sugars (cellulose, starch and glucose) to MEG, enabling high carbon efficiency (>2 MEG per C6) leading to a potential cost lower than today’s bio- and petro-MEG price

Avantium is open for partnering for scale-up to pilot-demonstration scale and commercial scale

C6

MEG

Hydrogenolysis

Signficant 1G glucose is produced for use in Bio fuels,

supported by mandates and subsidies. Most 2G glucose

is not pure enough for Bio-Chemicals and not cost

competitive without incentives.

ZAMBEZI:

High purity 2G (non-food) glucose competitive with 1G

22

A large market demand is building for high purity 2G-

glucose for various bio-materials and chemical

intermediates

Avantium has further developed proven high-acid/low-

temperature conversion of ligno-cellulose to 2G-glucose with

unprecendented purity, cost competitive with 1G-glucose,

opening up the biochemical space for large scale 2G use

Avantium is seeking investors and partners to complete

the development and build the supply chain

Summary

PEF: The Next Generation Polyester

– Superior barrier performance, mechanical- and thermal properties

– Reduced carbon footprint

– Recyclable

– Cost competitive at industrial scale

Collaborating with The Coca-Cola Company, Danone, ALPLA, and

Wifag//Polytype to launch the first PEF packaging on the market in 2018

New partnerships to develop applications for PEF films and PEF fibers

and other FDCA applications

Preparation of first commercial FDCA plant ongoing

Open to start new collaborations on bio-MEG and 2G glucose 23