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100% Bio-Based EPICHLOROHYDRIN 100% Bio-based EPICHLOROHYDRIN 17 July 2018 at BIO World Congress Hideyuki TSUKII Outline • Company Introduction • 100% Bio-based Epichlorohydrin • New Business Development • Success Stories • ProBioTracker Advanced Biochemical (Thailand) Co., Ltd. Advanced Biochemical (Thailand) Co., LTD • ABT is owned by Vinythai Public Company Limited, a leading Chlor-Alkali and PVC producer based in Thailand 58.78% 24.98% Public shareholders 16.24% *information as of 11 May 2017 • ABT operates the first world scale bio-based epichlorohydrin plant (100 kt/y) in Map Ta Phut industrial estate since February 2012 Advanced Biochemical (Thailand) Co., Ltd. Portfolio and Financial Information Advanced Biochemical (Thailand) (Bio-based Epichlorohydrin) Vinythai 2017 Sales Revenue is 600 MUSD Advanced Biochemical (Thailand) Co., Ltd. Business Domains of AGC Group (established in 1907) Sales/Operating income(2017) AGC Group Unite: Billion USD (13/1.1) ( Forex. Rate ; 1 USD = 112JPY ) Chemicals Electronics & Display Glass (3.9/0.6) (2.3/0.24) (6.6/0.24) Chlor-alkali & urethane Display Flat Glass (2.5 /N.D.) (1.8/N.D.) (3.1/N.D.) -Caustic soda -Float flat glass -Urethane materials -LCD glass substrates -Low-E glass -Gases & Solvents -PDP glass substrates Heat-absorbing glass etc. --Vinyl chloride etc. etc. Fluorochemicals Electronics Materials Automotive Glass & Specialty chemicals (05/N.D.) (3.4/N.D.) (1.5/N.D.) -Fluorinated resins -Optical filters for Displays -Optoelectronics materials -Laminated glass -Agrichemicals and pharmaceuticals etc. -Tempered glass etc. 6 Global Ranking except for China - EPI (as of 2017) AGC group has 152 KMT capacity after Vinythai M&A. # Shareholder Site locations Capacity (ECH: KMT) 1 Olin US, Germany 550 2 AGC Group Japan, Thailand 100 152 3 LFC Korea 115 4 FPC Taiwan 100 5 INOVYN France 85 6 Hexion Netherland 80 7 Osaka Soda Japan 72 Others 337 Total 1,339 【Source： AGC Analysis】 Advanced Biochemical (Thailand) Co., Ltd. Bio-based EPICHLOROHYDRIN Bio-based Petro-based 【Source： Green Chemicals Blog】 Advanced Biochemical (Thailand) Co., Ltd. Competitive “Drop-in” for Petro-based EPI • 100% bio-based epichlorohydrin produced from vegetable glycerol via an innovative and patented technology. It is a drop-in for petro-based EPI • Glycerol is a by-product of manufacturing biodiesel and oleochemicals • EPI is used as an intermediate of epoxy resins and other derivatives. Epoxy resins are used in the following applications: Coatings Electronics Composites Adhesives • Other epichlorohydrin derivatives include surfactants for home & personal care, water treatment and paper chemicals Advanced Biochemical (Thailand) Co., Ltd. The Most Sustainable EPICHLOROHYDRIN • A comparative, cradle-to-gate Life-Cycle Assessment of Bio-based vs. petro- based EPI was conducted in 2012 and peer reviewed by Dekra Consulting. • For each kg consumed (vs. petro-based EPI), the carbon footprint is lowered by 2.56 kg CO2 eq. or 61% reduction including biogenic CO2. based EPI • ABT has been certified by Roundtable on - Sustainable Biomaterials (RSB) since Bio 2015. Advanced Biochemical (Thailand) Co., Ltd. Bio Content Analysis (14C) Advanced Biochemical (Thailand) Co., Ltd. New Business Development * ABT welcomes co-development Growth Project Advanced Biochemical (Thailand) Co., Ltd. Mitsui Chemicals Launched Bio-based Optical Lens Monomer • The world’s first bio-based material for eyeglass lenses • DoGreen MR-174 is a USDA certified bio-based product scoring an 82% biomass rating • Reducing 326 kg of CO2 emissions per 100kg of 1.74 resin produced when compared to regular 1.74 material production 【Source： Cherry Optical, Inc】 Advanced Biochemical (Thailand) Co., Ltd. ProBioTracker - The Innovative Partnership with AkzoNobel and EY Petro-based EPI Epoxy resin • 2013 - AkzoNobel increased the use of producer 1 manufacturer 1 renewable raw materials in its paints and coatings by progressively increasing the use of epoxy resins based on bio-based Epoxy resin manufacturer 2 EPI from ABT • 2016 - EY CCaSS joined forces to develop an online platform to track the bio- Epoxy resin based material along the value chain Petro-based EPI manufacturer 3 producer 2 even without physical segregation or when it is converted to another rd 3 party calculation of “Chain of substance Custody” and online bio-based certificate by EY Climate Change and • 2017 - probiotracker.com was launched Sustainability Services • 2018 - ProBioTracker is under trial by ABT, a number of epoxy resin manufacturers and AkzoNobel Advanced Biochemical (Thailand) Co., Ltd. “Techno Driven” – Aiming for 100% Bio-based Epoxy Resin Bio-based content can be increased up to 100% by substitute BPA with renewable sources: • Cardanol: renewable aromatics extracted from cashew nutshell • Lignin: lignocellulose in plants’ cell wall, it is one of the most promising alternative for BPA • Rosin: naturally found in pines and conifers, extracted by distillation of tall oil, a by- product of the Kraft pulp process • Isosorbide: derived from corn, commercially available • Furan Di-Carboxylic Acids: from fructose, through dehydration and oxidation process • Itaconic acid (fermentation of glucose), Gallic acid (derived from plant) and others Advanced Biochemical (Thailand) Co., Ltd. Conclusion ABT produces 100% bio-based epichlorohydrin by patented technology, is a market competitive drop-in for petro-based EPI It is the most sustainable EPI in terms of CO2 emissions and process environmental performance Use of bio-based epoxy resins enable downstream industries to reduce its carbon footprint, while increasing the bio-content of finished products Advanced Biochemical (Thailand) Co., Ltd. Thank you for your attention Hideyuki TSUKII Email: [email protected] Prakit Sangthonganotai Email: [email protected] Follow our bio-based epichlorohydrin on LinkedIn Advanced Biochemical (Thailand) Co., Ltd..
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