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Ingeo Innovations: Providing Ingenious Solutions Through Collaboration (Sept. 18, 2009)

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Ingeo Innovations: Providing Ingenious Solutions Through Collaboration (Sept. 18, 2009) Ingeo™ Innovations Providing Ingenious Solutions through Collaboration Brian S. Glasbrenner NatureWorks LLC [email protected] 952-742-0568 Sept 18th, 2009 1 1 Consumers expect retailers and brands to take small steps on their behalf to provide them with more environmentally friendly products. Biopolymers can transform packaging from a functional commodity cost item to a differentiable marketing feature. • Truth in Marketing • Not Green washing 2 Why Bioplastics? Environment Economics Net GHG emissions (CO2 equivalents / kg polymer) $1.00 $150 IngeoNGT 0.8 $130 Po lyp ro pylene 1.9 $0.90 LDPE 2.1 PET am 3.2 $110 $0.80 PET ssp 3.4 Polystyrene GPPS 3.4 $90 Polystyrene HIPS 3.4 $0.70 Polycarbonate 7.6 USD/Lb $70 Nylon 6 7.9 PET NA USD/Barrel Nylon 6,6 7.9 $0.60 $50 $0.50 $30 WTI Oil $0.40 $10 2000Economics2001 2002 of:2003 2004 2005 2006 2007 2008 • Oil- vs. Plants feedstock • Waste Management • Global Warming 3 Need for innovation? Approximately 2.5 billion barrels of oil are used for plastics. "It is estimated that 4% of the world's annual oil production is used as a feedstock for plastics production and an additional 3-4% consumed during manufacture." * According to the EIA (Energy Information Administration) in 2008 the world produced 31.2 billion barrels of oil. ** * http://www.wasteonline.org.uk/resources/InformationSheets/Plastics.htm ** http://tonto.eia.doe.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=5&pid=53&aid=1 4 Why bioplastics? …ECONOMICS $1.00 $150 $130 $0.90 $110 $0.80 $90 $0.70 USD/Lb $70 USD/Barrel PET NA $0.60 $50 $0.50 $30 WTI Oil $0 40 $10 2000 2001 2002 2003 2004 2005 2006 2007 2008 Economics of: • Oil- vs. Plants feedstock • Waste Management • Global Warming 5 The Future? “$4 per Gallon Gas Prices Affecting Entire Nation” U.S. News and World Report – June 2008 6 Who We Are . • Established in 1997 with JV between Cargill & Dow Chemical Company • 100% owned by Cargill Inc • .Strong Technology Position (global IP portfolio) • World’s first and largest bio-plastics manufacturing facility – 140,000 metric ton name plate capacity – 2nd production line operational by 1Q-2009 • Technology can be found today for more then 20 applications , in more then 70,000 store shelves around the globe under the Ingeo™ brand name 7 Converter Partners Carbon dioxide and water Plants sugar manufacturing (dextrose) 8 8 plants We believe in the 4R’s 100% annually -Renew -Reduce renewable resources -Reuse -Recover (multiple options) recovery science industrial plant sugars composting transformed into Ingeo™ chemical recycling production environment Ingeo™ fibers and less fossil fuel natural plastics are use created climate less greenhouse gas emissions 9 Cheese & Yogurt Meat Eggs & Dairy Dry Grocery Dry Grocery Bakery Dry Grocery Dry Grocery Frozen Produce Deli Checkout Floral and Gifts 10 10 Cheese & Yogurt Meat Eggs & Dairy Dry Grocery Dry Grocery Bakery Dry Grocery Dry Grocery Frozen Produce Deli Checkout Floral and Gifts 11 11 • Performance • Environmental Benefits • Marketing Advantage 12 Evolving the IngeoTM eco-profile Further future improvements associated with: • Production using cellulosic based feedstock FUTURE • Further process optimization • On site renewable energy (e.g. wind, biomass) Long term • Plant II (Not covered in this slide deck) Ingeo 2009 represents the “Next Implementing Generation”, cradle-to-pellet Ingeo Now production system: Ingeo 2009 • Based on a package of technology improvements, e.g. new lactic acid technology. • Implementation started in 2009. PAST We created an entirely new production system for polymers based on renewable resources. Ingeo 2005 represents the 2005 Ingeo in 2005 cradle-to-pellet Ingeo production system (= the benchmark). 13 A broader comparison Comparing environmental footprint: Greenhouse Gas Emissions PlasticsEurope ACC data Ingeo in 2009 0.8 60% Reduction Ingeo 2009 - current technology 1.3 from ’05 – ‘09 Ingeo in 2005 2 2 PVC (suspension) 1.9 1.4 Polypropylene 1.9 1.9 LD Polyethylene 2.1 75% Improvement 2.5 PET (amorphous) 3.2 over PET PET (SSP) 3.4 2.8 Polystyrene (HIPS/GPPS Avg) 3.4 Polycarbonate 7.6 Nylon 6 9.1 Nylon 66 7.9 012345678910 from cradle to polymer factory gate in kg CO2 eq. / kg polymer • Ingeo: Vink E.T.H. et all. The eco-profiles for current and near-future NatureWorks® polylactide (PLA) production. Industrial Biotechnology, Volume 3, Number 1, 2007, Page 58-81. (GWP100 factors according to IPCC (CO2 =1, CH4 =23 N2 O=296) • PlasticsEurope; www.lca.plasticseurope.org • ACC: Franklin Associates, revised final report, December 2007, Cradle to gate life cycle inventory data of nine plastic resins, prepared for the Plastics Division of the American Chemistry Council. 14 A broader comparison Comparing environmental footprint: Non-renewable Energy Requirements PlasticsEurope ACC Ingeo in 2009 35 Ingeo 2009 - current technology 42 30% Reduction from Ingeo in 2005 50 ’05 – ‘09 PVC (suspension) 59 64 Polypropylene 73 77 LD Polyethylene 77 49% Improvement 69 PET (amorphous) 80 over PET PET (SSP) 82 89 Polystyrene (HIPS/GPPS Avg) 87 Polycarbonate 113 Nylon 6 120 Nylon 66 138 0 20 40 60 80 100 120 140 160 from cradle to polymer factory gate in MJ / kg polymer • Ingeo: Vink E.T.H. et all. The eco-profiles for current and near-future NatureWorks® polylactide (PLA) production. Industrial Biotechnology, Volume 3, Number 1, 2007, Page 58-81. • PlasticsEurope; www.lca.plasticseurope.org • ACC: Franklin Associates, revised final report, December 2007, Cradle to gate life cycle inventory data of nine plastic resins, prepared for the Plastics Division of the American Chemistry Council. 15 A broader comparison Comparing Environmental Footprints: Total Water Use Ingeo target 9720 11 Ingeo 2009 - current technology 17 21 Ingeo in 2005 321721 • Ingeo: Vink E.T.H. et all. The eco- profiles for current and near- PVC (suspension) 9 56 Process water future NatureWorks® polylactide (PLA) production. Industrial Polypropylene 5 38 Biotechnology, Volume 3, Cooling water Number 1, 2007, Page 58-81. LD polyethylene 3 44 PET (amorphous) 5 61 Irrigation water • Fossil based polymers: PlasticsEurope; PET ( SSP) 5 57 www.lca.plasticseurope.org PS (HIPS/GPPS average) 10 129 Polycarbonate 14 129 Nylon 6 14 177 Nylon 66 167 495 0 100 200 300 400 500 600 700 Water use [kg / kg polymer ] 16 Our Journey With “End of Life” Ca DOC Grant for Sortation 09 20 Primo Expanded Demonstration EU Based Lactic Acid Test FCR first results 08 20 Dirty Bale Test NRC Update Primo Demonstration Education Model Vision statement 07 20 NRC Meeting Denver RONZ PSO/Good Water Webinar on LCA Telluride 06 NRC Meeting Atlanta 20 PETCore Tech Comm. NGO Meeting in Blair Bale Spec announced APR Meeting 05 NRC Meeting Minneapolis BIOTA Launch Sortation test w/TiTech 20 Oakland Coliseum EU NGO Meeting NGO Meeting in SFO 04 Composting certification APR Meeting 20 SEED Development 3 00 2 Industrial Recycling in Blair SPC Formation Meetings 17 NatureWorks LLC Efforts within SPC • Sustainable Packaging Coalition - http://www.sustainablepackaging.org/index.htm • NatureWorks LLC is one of six founding members of the SPC • Active member in general membership • Active member in the labeling subcommittee SPC’s Labeling Project will consist of two phases, the first of which is covered in this Brief: • Creation of visual communication concepts for a “Label” with the intent of conveying to consumers what they should and should not do with packaging after its use. • Eventual adoption with the hope that this information will shape consumer disposal & purchase habits and result in increased recovery of packaging materials. The SPC Labeling Project seeks to work with and receive feedback from retailers, industry, manufacturers, government, and waste/recyclables managers to eventually adopt the visual communication system that will be developed through the project. 18 NatureWorks LLC Efforts in Recycling • Various group membership. – Association of Postconsumer Plastic Recyclers (APR) – National Recycling Coalition (NRC) – Sustainable Packaging Coalition (SPC) – Bioplastics Recycling Consortium member – Biodegradable Products Institute (BPI) – European Bioplastics Association EuPA) • NIR sorting at plant scale – PET stream purity – PLA stream isolation • Manual sorting technology development • Website materials – End of Life vision – Education for end of life • ASTM member and participation – Unique material code for PLA – ASTM D20, D20.95, D20.95.01 • End market development – Polymer grade lactic acid – Other applications 19 NatureWorks Efforts in Composting • Standard guidelines for composting revolve around four basic criteria: – Biodegradation – Material characteristics – Disintegration – Ecotoxicity • Ingeo has been certified by BPI as compostable under the ASTM D6400-04 standard • Japan: – Ingeo has received certification under ISO 16929 through the Biodegradable Plastics Society of Japan • Europe – Ingeo has received DIN CERTO EN 13432 certification in Europe 20 The D20-95.02 Task Group . The ASTM Organization ASTM ASTM has D-20 ~ 130 committees . Plastics D-20.95 D-20 Plastics, has . Recycled . ~23 Subcommittees Plastics D-20.95.01 D-20-95-02 D-20.95 has established D-20-95-03 SPI Resin Code SPI # 7 SPI # 1 3 task groups Transfer (Sawyer) (Pecorini) 21 Does recycling immediately mean it is better? • Post Consumer Recycled PET • Virgin Ingeo Biopolymer 22 Results for climate change 19.9 g Ingeo 38.6 Ingeo 2009 >35% Reduction Clamshell 100% rPET 58.6 19.9 g PET 71.5 50% rPET Clamshell 0% rPET 84.4 020406080100 CO2 equivalents
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