Adesso BioProducts AB - ETIP BioenergyPowerPoint-presentation Author Lars Lind Created Date...
Transcript of Adesso BioProducts AB - ETIP BioenergyPowerPoint-presentation Author Lars Lind Created Date...
Adesso BioProducts ABLars Lind
- 12 years production of sustainable biofuels
Stenungsund and Fredrikstad250 000 ton/y capacity
Adesso BioProducts AB
Turnover 2000 MSEK/year
12 years experience in production and sales of biofuels
The two most modern plants in Scandinavia with a combinedcapacity of 250 000 ton/year
Applications
-drop in fuels
-high blend B100 biodiesel
-heating and non-mobile
-chemistry
3
”Biorefinery financing Cv”:
40 years of experience in petrochemical industry, last 15 years in biobased development(Exxon, Unifos, Neste, Perstorp, Adesso)
Successes
• Investment within Perstorp in biodiesel plant,
• Acquisition of existing biodiesel plant
• MBO of biofuels business
Near misses
• Biojet fuel project
Studies
• Biomethanol, biobutanol
Two different business regimes compete:
Biofuels:
• Politically controlled• Mandates, quotas, tax incentives
Biobased chemicals
• Open, global, competitive• Fossil dominated
Biofuel market basics:
• The same molecule often exists as both fuel component and chemical building block (e.g. methane, methanol, ethanol…)
• Governments support biofuels via quotas, mandates or tax incentives
• Policy creates the market for biofuels, but at the same time limits it
• The biofuel market sets the price of biobased raw materials
• The fuel market is never bigger than the mandate
B100 growth;
Increased drop-in
% blending
volume
100
Ca 6,0 M m3
HVO, FAME
RME100
HVO100
ED95
Fossil diesel replacement in two dimensions
20 % quota; GHG compensated, politically controlled
Ca 500 000 m3
gasoilFAME
skatt tax
Diesel 80% RME 7 % RME100HVO 13+ %
10
5
Kr/l
Qouta drop-in diese pure biofuel
Quota diesel: fully taxed, more expensive than fossil dieselesel
Pure biofuel: tax incentivised cheaper than fossil diesel
FAME
tax
tax Market incentive
• Market above mandated• Competition/SME:s• Public transportation
A biofuels system need a strong floor;
- and three stable legs
Approved Vehiclesapproved for pure biofuels
Reliable productionfacilities
Infrastructure withfilling stations and availability
Political stability where CO2 emissions are priced
Biobased chemicals market basics
• Plastics, textile, lubricants, coatings, adhesives
• Dominated by fossil raw materials
• Biobased raw materials priced from fuels markets
• Emerging awareness and demand from end markets
• Mass balance issue
• Long value chains
Partnerships; Hållbarkemi2030, VSMK, Skogskemi
Investments in biorefineries – considerations
A big gap between long term visions and short term legislation
Biofuels
-huge complexity in all details regarding biofuels
-short term policy
-market caps
-view that something better is around the corner
Chemicals
-30 % more expesive than alternative
How to create a business model
• Strategic non-traditional business case
• Offtake risk moved to customer
• Customer-back end consumer´s paying power redistributed
• Truly edge are the products better in any way?
• Tax incentivised creates competitiveness
• Quota incentivised competitive sub-market
• CO2 fee would solve problem and create a level playing field
Business model related investment advices
Qouta market:
-Would not invest here, market capped
Tax incentivised market:
-excellent opportunity if incentive is predictable long term
Non-fuels market
-Huge opportunity, but high risk
-how to get a premium paid and howmto channel money back through value chain
Tack!