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 Cellulose 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 Norway, England, Germany, Spain, Czech Republic, USA, South Africa, Brazil. Applications • Construction • Agro Chemicals • Soil conditioning • Batteries • Gypsum and brick manufacturing • Dyes dispersants • Mining Borregaard Ingredients Food and fragrance products Production Norway Products • Vanillin, 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. Chemical industry 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 sugar 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 .