Outline

• Introduction to Borregaard • Running a biorefinery • Added value • Looking ahead Orkla 2012

ORKLA Sales: approx 8 bill EUR 30, 000 employees

Orkla Brands Orkla Aluminium Orkla Solutions Investments

Share Portfolio Market Real Estate

• Foods Nordic •Sapa AB • Brands Nordic •Heat Transfer • Brands International •Building System • Food Ingredients Integrated business model

Borregaard’s biochemicals are sustainable and environmentally friendly substitutes to petrochemicals

Borregaard is a global leader in bio based chemicals. Strong innovation efforts increase the value added to our customers. Borregaard products in daily life

Bio fuel Construction Pharma- Food Car batteries, Animal feed products ceuticals Flavour tyres, care products

Soil Textiles, spectacle Dust control Paint conditioner, frames fertilizers

Market leader in global niche markets

Product Portfolio Sales distribution Specialty Fibers  Leading supplier within global niches  Strong positions in Europe and globally aawithin selected applications  Microfibrillar Lignin  #1 and only global supplier of lignin-based products  Unique technical and application expertise Fine Chemicals /  Market leader of x-ray contrast media Pharma/Ingredients intermediates  Supplier of intermediates /APIs to major pharmaceutical companies Ingredients  Leading supplier of vanilla flavours Americas 25 % 23 % Other Bioenergy  Bio Ethanol (2G) 2 %  Bio Energy Europe Asia  Bio Gas 50 %  Hydropower  Basic Chemicals Global presence

Borregaard 2011 Turnover: EUR 550 mill. 1200 employees in 20 countries

Main office Sales office Production Borregaard LignoTech Lignin based products – applications

Production , England, , , Czech Republic, USA, , .

Applications • Construction • Agro Chemicals • Soil conditioning • Batteries • Gypsum and brick manufacturing • Dyes dispersants • Mining Borregaard Ingredients Food and fragrance products

Production Norway

Products • , ethylvanillin, etc

Applications • Functional food • Dairy products • Snacks • Bakery • Sweets and chocolate • Perfume Borregaard Synthesis Pharma – fine chemicals

Production Norway

Products • Pharmaceutical intermediates • Aminoalcohols • Diphenols

Applications • Pharmaceuticals • X-ray contrast media • Misc. From paper mill to an integrated biorefinery

Prodction cont Production stopped Key learnings From manual labour to competency driven Running a biorefinery Green business of the future?

Raw Material Processes Products

Natural Reduced emissions High performance Renewable Energy conservation/renewable energy Substitutes oil based Non toxic High raw material utilisation products Risk management

Feedstock and logistics Complexity

Operations in Norway

• 20 plants • Includes supply chain and infrastructure Integration Integration

1200

1000 G W h 800

- 600 s t 400 e a m 200

0 2001 2004 2007 2010 2013

Bio/recycling/waste Oil

Reduced energy costs and improved environmental footprint Added value Feedstock efficiency

100 KG Biomass structure – a business opportunity?

Micro fibrillar cellulose Cellulose fibres for Logs Width: 10-100 nm chemicals Width: 10 – 50 cm Length: 2000 μm Width: 20-60 μm Length: 3 – 10 m Length: 2-3 mm

Plant cells Width: 20 – 60 μm Length: 0,15 – 0,6 Polymer chains mm 10 – 100 Å

Planks Glucose monomers Width: 2 – 25 cm 1-5 Ångstrøm Length: 3 – 5 m

Know your markets

Paste of China clay (kaolin) in water - addition of lignin Value added utilization of biomass

How we spend fossil carbon today How we need to spend green carbon in the future to achieve sustainability

FLEXIBLE - We do need carbon CONVENTIONAL TRANSPORT 30% STATIONARY - Use for materials INDUSTRY H/P and chemicals PROCESS & GOODS 40% We do not need carbon

STATIONARY- RESIDENTIAL SERVICES H/P 30% Use other renewable alternatives for heat/power Looking ahead

Source:WEF Innovate biorefinery the ”Borregaard way” Innovate existing and new value chains Oil or biomass – bio-based or fossile carbon?

BIO-BASED FOSSILE CARBON CARBON Microfibrillar cellulose

Standard Fibers De-fibrillation Micro Fibers

Length: 2-3 mm Controlled de-fibrillation Length: up to 100 μm Width : 20-60 μm Width : 10-100 nm • High aspect ratio Aspect ratio:  150 Aspect ratio:  10 000 Small surface area • Very large surface area Large surface area

2% in water Unique properties

2% in water The BALI technology

• A process for production of tailor made lignins • Unique system for supplying in solution without inhibitors • Potential to produce 2nd generation biofuels and biochemicals with very low carbon footprint and with high cost efficiency • Based on a proven biorefinery concept

High purity fiber

Step 2

Sugar in solution Step 1

Lignocellulose Water soluble lignin e.g. bagasse Norway demonstration center Conclusion