Cherry 2005

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Unlocking the magic of nature Enzymes: Advances in Sustainable Industrial Processes and Bioenergy CDMA Fall Meeting Philadelphia, PA 29 September, 2005 Joel R. Cherry, Ph.D. Director, Bioenergy/Biotechnology Novozymes, Inc. overview of the versatility and the environmental advantages of enzyme technology.

Transcript of Cherry 2005

Page 1: Cherry 2005

Unlocking the magic of nature

Enzymes: Advances in Sustainable Industrial Processes and BioenergyCDMA Fall Meeting

Philadelphia, PA29 September, 2005

Joel R. Cherry, Ph.D.Director, Bioenergy/Biotechnology

Novozymes, Inc.

overview of the versatility and the environmental advantages of enzyme technology.

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Growth by innovation - new products, applications, markets to drive sales growth of 8-9%

Business areaBusiness area

Technical enzymesTechnical enzymesTechnical enzymes

Food enzymesFood enzymesFood enzymes Feed enzymesFeed enzymesFeed enzymes MicroorganismsMicroorganismsMicroorganisms TotalTotal

Main marketsMain markets

Detergent, starch, textile, fuel ethanol,pulp&paper, leather,personal care, fats&oils

Detergent, starch, textile, fuel ethanol,pulp&paper, leather,personal care, fats&oils

Detergent, starch, textile, fuel ethanol,pulp&paper, leather,personal care, fats&oils

Baking, brewing, winejuice, food specialities

Baking, brewing, winejuice, food specialities

Baking, brewing, winejuice, food specialities

Animal feedAnimal feedAnimal feed Cleaning, plant care, waste treatment

Cleaning, plant care, waste treatment

Cleaning, plant care, waste treatment

Industrial biotechIndustrial biotech

Market shareMarket share

45-50% (combined)45-50% (combined)45-50% (combined)

30-35%30-35%30-35% 45-50%45-50%45-50% 50%+50%+50%+ Approx. 44%Approx. 44%

Novozymes - Biotech-based world leader in enzymes & microorganisms

New growth areas: Pharma discovery and production:• Antimicrobial peptides• mAb production• allergy vaccines

Novozymes, 2004• Revenues: >$1 billion, world-wide sales• ~3,000 employees• Major sites:

• Denmark (Headquarters)• US (N.C., CA, NY)• China, Japan, Brazil, France, Switzerland

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Novozymes created the enzyme market

Novozymes sales

DKKbillion

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Introduction of new applications

1974 Esperase First extremophile enzyme1984 Maltogenase First recombinant enzyme, starch1988 Lipolase First commercial lipase, detergent1997 Kannase First low temperature and soft water protease, detergent2000 Mannaway New enzyme class for stain removal, detergent

Examples:

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Novozymes’ Vision

“We imagine a future where ourbiological solutions create the

necessary balance between better business, cleaner environment and

better lives”

Intentionally left blank

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The Novo Family, circa 1925, Denmark

Holding Company

Industrial Biotechnology

The Novo Nordisk Foundation

Pharmaceuticals

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Our enzymes are used everywhere

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• Economic growth• Great costs to Nature

threatening to growth for future generations

The Industrial Revolution

The Industrial Evolution

Conventional industry

Biotechnology Unlocking the Magic of Nature

Using our knowledge about living systems to create innovative solutions

• Economic growth• Less costs to Nature

enabling growth for future generations

Towards sustainability

We think of ourselves as a business to change things – for the better. We want to play a role in the development towards sustainability. The change boils down to pushing ”the industrial evolution” concept – to move from the industrial revolution to the industrial evolution. For more than a century, global industry has looked to machines to revolutionise industry. This has been extremely succesful – it has created economic growth but it has been achieved at great cost to nature and people everywhere. It has been disturbing natures recycling of resources to a level which is threatening to the opportunities for growth for future generations. At Novozymes we believe the time has come to evolve this traditional way of thinking and to use modern biotechnology to drive this evolution of global industry forward. Thus The industrial evolution is about biotechnology. At Novozymes we are talking about unlocking the Magic of Nature. Because biotechnology is about using and developing the knowledge we have about living systems in Nature to create innovative solutions - and that will enable economic growth – but do so at less costs to Nature than the conventional technology – so that instead of threatening the opportunities for further growth we are actually strengthening these opportunities.

This all means that the development towards industrial evolution is a development towards sustainability

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The Use of Enzymes Contribute to Sustainable Development

Enzymes:• Are biological catalysts in the form of proteins that

drive chemical reactions in the cells of living organisms

• Are very specific catalytic properties

• Work at mild conditions and only small quantities are required• Are fully biodegradable• Are made from renewable resources

• e.g., glucose, starch, soy, protein

• Excess biomass is used as soil conditioners and fertilizers

• Improve product quality• Save water, energy, chemicals and waste• Speed up production processes• Enable novel products

e.g., cellulase

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Our enzyme technology and production

Leading-edge biotechnology expertise• Enzymes sourced from nature• World’s largest strain collection

• Bacteria, Fungi• Recombinant production • Diversity generation:

• Strong screening tools/capabilities • Engineering• Shuffling

è We have the ability to find the right enzyme to do the job !

State-of-the-art production with continued optimisations and economies of scale• 5 strategic production sites globally• Site DK is world’s largest plant for

enzymesè We have the ability to produce the

right enzyme in the amount needed !

Native enzyme Improved alkaline activity

Altered specificity

Improvedthermostability

• More than twenty commercialized protein engineered enzymes

Activity, Performance, Stability, Compatibility, Specificity, Temperature, pH, Pressure Chelants, New activities, Expression

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Endoproteases:Subtilisin-proteasesTrypsin-like proteasesAcidic proteases

Exoproteases:Peptidases (amino-, carboxy-,di-, tri-

peptidyl)AmylasesGlucoamylasesPullulanasesIsoamylasesEndo CellulasesExo CellulasesBeta-glucanasesXyloglucanasesXylanases

MutanasesDextranasesAlginate lyasesPectin esterasePectin lyasesPectate lyasesPolygalacturonasesRhamnogalacturonase

sArabinanasesGalactanasesLipasesCutinasesEsterasesPhospholipasesLaccasesPeroxidasesHaloperoxidasesOxidases

CatalasesTransglutaminasesLactonohydrolasesPhytasesGlutaminasesLactasesAlpha-galactosidasesCyclodextrin glycosyl transferasesAlpha-acetolactate decarboxylasesDisulphide isomerasesNitrilasesUreases …just to mention a few !

…ability to find or create THE correct enzyme activity for the application

Novozymes: A wealth of enzymes

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The benefits of using enzymes

Enzymes in Sustainable Development

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Enzymes for the Detergent Industry

• Lower temperature (from 60oC to max. 40oC)

• Energy savings in Denmark (28,000 tons coal/yr)

• Less phosphate and chemicals in the environment

• Enzymes are biologically degradable

• More gentle to fabrics

e.g., proteases, amylases, lipases, cellulases, mannanases

e.g., Stainzyme• Stainzyme is a carbohydrate degrading enzyme, which allows efficient removal of stains at washing temperatures as low as 300C.• If the average washing temperature in Europe is decreased from 400C to 300C a saving corresponding to 1/3 of the electricity-consumption from household washing will be achieved

Electricity consumption from household washing in Europe is around 50 TWh a year, or 1½ times the total electricity consumption in Denmark or 10 times the yearly electricity production of Barsebäck.

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Enzymes for the Textiles Industry•Decrease/eliminate use of pumice stones•Decrease/eliminate pumice dust•Decrease/eliminate fabric damage•Increased fabric tensile strength•Decrease waste effluent•Increased garment life•Decreased pills, fuzz•New fashion looks

•Eliminate use of oxidizing agents or sodium hydroxide•Eliminate pressure cooking•Decrease/eliminate fabric damage

Amylase

Laccase

•Decrease/eliminate chlorine and other bleaching agents•New fashion looks•Eliminate use of pumice stones

Cellulase

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Enzymes for the Baked Goods Industry

• Fungal alpha-amylase: Increases loaf volume and improves eveness of crumb structure.

• Maltogenic alpha-amylase:Increases shelf-life.

• Glucose oxidase:Oxidizes free sulfhydryl groups to make weak doughs stronger and more elastic.

• Lipase:Dough conditioning by producing more uniform, smaller crumb cells and silkier testure and whiter crumb color.

• Xylanase:Dough conditioning and improved crumb structure.

• Protease:Weakens the gluten to provide better dough for biscuits.

Without Novamyl

With Novamyl

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Scourzyme • Substitutes harsh chemicals (NaOH, peroxide)• At lower temperatures • With less consumption of wateras compared to the traditional chemical cleaning process

Textiles: Scourzyme applicationScourzyme is a pectin degrading enzyme that removes impurities in natural cotton.

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LCA is about comparing the environmental impacts of 2 or more alternative systems satisfying the same demand

Life Cycle Assessment

LCA User BenefitSystem 1 (enzymatic)

System 2 (chemical)

LCA addresses a wide range of environmental impacts:

Consumption of resources Chemicals, energy, water, land use

Emissions with global impact potential: Global Warming Stratospheric Ozone Depletion

Emissions with local/regional impact potential:

Acidification Nutrient Enrichment Summer smog Toxicity

Cotton production

Fermentation

Formulation

Substrate production

Knitting Scouring

Auxiliaries (chelator and soda ash)

Scourzyme LRecovery

Auxiliaries (NaOH, acetic acid and surfactant)

Energy (electricity and heat)

Water

Bleaching/Colouring

Using the cloth

• LCA only considers the environmental impact

• LCA addresses the whole production system, from cradle to grave; from production of raw materials to handling of waste

e.g., Flow diagram, Scourzyme

if we want to claim that enzyme technology contributes to a sustainable development we need to demonstrate that the environmental load of producing the enzymes is outbalanced by the environmental benefits of using the enzymes.

advantages which typically outweigh the load of producing the enzymes in the order of magnitude 10-100 times

An LCA provides the bass for choosing the environmentally most attractive process from a number of alternative processes providing the same service.

Scourzyme is a pectate lyase which is used in the textile milling industry for the removel of the waxy impurities found in native cotton.

The overall objective is to evaluate the environmental impact of substituting the conventional chemical process for scouring of cotton with a process based on application of Scourzyme

Key assumptions: the type of scouring process does not influence the down stream processing of the fabric (bleaching and dyeing) and the use phase of the fabric. The type of scouring process does not influence the amount of raw cotton produced.

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LCA is about comparing the environmental impacts of 2 or more alternative systems satisfying the same demand

Life Cycle Assessment

LCA User BenefitSystem 1 (enzymatic)

System 2 (chemical)

LCA addresses a wide range of environmental impacts:

Consumption of resources Chemicals, energy, water, land use

Emissions with global impact potential: Global Warming Stratospheric Ozone Depletion

Emissions with local/regional impact potential:

Acidification Nutrient Enrichment Summer smog

• LCA: from cradle to grave

Environmental impacts:

Global warming potential

Acidification potential

Smog formation potential

Nutrient enrichment potential

Emission to the environment:

CO2

CO

NOx

SOx

VOC

CH4

NO3

PO4

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Scouring of knitted cotton fibre

Source: Öeco-Institute e.V. March 2003

Scourzyme application - the environmental impact

Based on case study in the Chinese market.

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Examples of environmental benefits incl. contribution from enzyme production Normalised data (expressed as person equivalents)

Using enzyme technology has advantages which typically outweigh the load of producing the enzymes in the order of magnitude 10-100 times Novamyl:person equivalents:Each time we use 1 kg Novamyl (extra) we save CO2 emission corresponding to 3870 kg CO2 equivalents.Each time we use 1000 kg Novamyl (extra) we save CO2 emission corrersponding to 3870 t CO2 equivalents (1000 kg is chosen arbitrarily)1 average world citizen causes an emission of approximately 8 t CO2 equivalents annuallyThus the saving of 3870 t CO2 correspond to the CO2 emission from approximately 470 people.Thus for each time we are using 1000 kg Novamyl (extra) and save 3870 t CO2 equivalents - we could be 470 more people on this earth living a life like the rest of us - without any influence at all on the global warming.Sustainability is about allowing more people a life at a higher living standard - without increasing the environmental load. It is about diminishing the environmental load of our activities to allow more people have such activities. The savings of bread produced is the single most important contributor to the result. Thus the reduced wheat production (incl. use of fertilizer) can explain 49 % of the reduction of the global warming potential, 49% of the acidification potential and almost 100% of the nutrient enrichment potential. However, for the effects on energy the savings on crude oil (for transport) and heat for baking becomes important. 40% of the energy saving is related to crude oil. The savings of polyethylene packaging material contributes 12% to the energy savings. The creation of summer smog is almost exclusively related to the emission of ethanol from the bakeries.Pulp: smog – disadvantage using enzyme. The smog formation in the thermo mechanical pulp application is highlighted because this is a negative impact - the only case among those listed here where we actually have a disadvantage of using enzymes. The explanantion that we get this negative contribution is the following:When we save energy in the pulping process we obtain less heat for other purposes. Thus we need to generate some heat. We do this by combustion of wood chips - which gives rise to smog formation. However, if you take a look at slide 3 - the normalised data (that is expressed as person equivalents) - the importance of this negative effect is very low. The importance is almost 1000 times less than the positive effect on global warming.Enzymes diminish the pollution of the environmentAn LCA study has demonstrated that 1 kg of Scourzyme can reduce the emission of nutrient salts to the aquatic environment with 2,3 kg phosphate equivalents. If all European cotton (incl. Turkish) was pretreated the savings would correspond to the emission of nutrient salt pollutants from approximately 400.000 people.Enzymes save energyNZ51054 is an endo-mannanase product used for thermomechanical pulping. 1 kg enzyme product can process 13 t of pulp and reduce the energy consumption with 24.400 MJ. By treatment of 1 million t pulp energy corresponding to the annual consumption of 12.000 people will be saved.Enzymes increase yieldLecitase Ultra is a phospholipase used for removal of the phospholipids from vegetable oil. The use of Lecitase Ultra increases the yield of oil leading to savings in the agricultural production of oil seeds. Savings in agricultural production typically have great environmental benefits –including the savings originating from the environmental load of for instance fertilizers, pesticides and transportation.The LCA study has been build on a specific soybean oil plant in the US. For each day this plant is in operation the savings in CO2-emission correspond to the annual emission from 30 people or from driving 61.000 miles. Enzymes save non-renewable resourcesPhytase is used in animal feed as a replacement of inorganic phosphate. Phosphate is a limited resource, which are used by all living organisms. By using 1 kg of Ronozyme P5000 CT 30 kg of phosphate is saved. The average annual per capita consumption is estimated to be 22 kg phosphate. The savings originating from providing phytase to the 23 million pigs in Denmark represent phosphate savings corresponding to the yearly consumption of phosphate for about 1 million people.Enzymes substitute harsh chemicals

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Enzymes can reduce the pollution of the aquatic environment

Pulp & paper

• Lipase for stickies control

• Protease for biofilm removal

• Cellulase/amylase for de-inking

Leather industry

• Lipase for degreasing

• Protease for deharing

Food industry

• Lipase for interesterification of fat

• Protease/peptidase for hydrolysis of vegetable proteins

Enzymes can save energy

Detergents

• Enzymes in detergents for low temperature washing

Pulp&Paper

•Lipase for pitch control in the paper industry (reduction of down time)

Textile

•Pectinase for pretreatment of cotton

Juice

• Pectinase for juice manufacturing

Brewing

• Hemicellulase for brewing (viscosity reduction)

Enzymes can save agricultural raw materials

Fats&Oils

•Phospholipase for removal of the phospholipids from vegetable oil

• Lipase for interesterification of fat

Juice

•Pectinase for juice-production

Feed

•Cell-wall degrading enzymes for animal feed

Food

•Protease for treatment of meat

• Lactose oxidase for up-grading of whey

Textiles

•Pectinase for pretreatment of cotton

Enzymes can save money!

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So much for enzymes and existing processes…

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Biotechnology will have no greater impact on the daily lives of the people of the world

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Plenty of oil…why worry?

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Source: United Nations, World Population Prospects, The 1998 Revision; and estimates by the Population Reference Bureau.

Just as oil declines, population peaks…

Oil will never run out, it will just become prohibitively expensive……in our lifetimes, or our children’s lifetimes.

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Historical and projected development of the grain-based fuel ethanol production

81 83 85 87 89 91 93 95 97 99 '01 '03 `05

`07

`09

Billi

on li

tres

/yea

rYear:

30

25

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0

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China

Europe

Aver

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rowt

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Novozymes’ 2004 estimate

Dette er den historiske udvikling af hele det amerikanske ethanol marked gennem de seneste 20 år med en gennemsnitsvækst på ca. 5% frem til 2001.

Denne vækst er sket under betingelser hvor der ikke har været særlig bevågenhed og efterspørgsel. Vores estimater peger på en langt højere vækst 20% p.a. for de næste 5 år vil være realistisk.Det kan vi sige ret præcist da vores estimater bygger primært på den stærkt forøgede aktivitet vi ser for planlægningen og bygning af nye tør formalings fabrikker I USA. Man erkender allerede dette I stigningen fra 00 til 01.

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Ability to significantly impact petroleum consumption depends on biomass utilization

0

37.5

75.0

112.5

150.0

Billion gallons / yr

Corn (today) Corn (max) MTBE replacementCorn (max) + StoverTotal BiomassBaseline gasoline demand

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Issues: BioethanolEnvironmental

• Biofuel is a sustainable and almost CO2-neutral energy source

• Fuel ethanol can replace MTBE as octane booster in gasoline 10 US states have successfully banned MTBE (ex. California, New York

and Connecticut), creating a 1.4 billion gallon per year market• Fuel ethanol - as a fluid energy source for the transport sector - is

the only alternative to gasoline (except from biodiesel and gas)• Already two type blends of ethanol/gasoline on the

market • blends of 10% ethanol and 90% gasoline = E10• blends of 85% ethanol and 15% gasoline = E85

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Unlocking the magic of nature

BioEnergy Project $17.8 million/4 years

Novozymes Biotech, Inc.National Renewable Energy Labs

US Dept of Energy

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Converting biomass to fuel ethanolBiomass

Pre-treatment

Fermentation

Ethanol

Processedbiomass

(cellulose)

Glucose

Enzyme hydrolysis(cellulases)

Starch

Currently:Starch to ethanol

Costs 10X too much!

Enzyme hydrolysis(alpha-amylase)(glucoamylase)

72% Starch 10% Cellulose/Hemicellulose 9% Protein 4% Oil 4% Other

38% Cellulose32% Hemicellulose 17% Lignin13% Other

Acid pretreated corn stover56% Cellulose5% Hemicellulose28% Lignin13% Other

Facts: (for background information only)

•Grant in January 2001 from NREL / US DoE worth up to USD 14.8 million over three years (with milestones) to develop more efficient cellulases for degradation of cellulose from biomass into fermentable sugars. About 27 scientists in the US, but also groups in DK and China. Novozymes to keep all IPRs due to 20% self-contribution.

Fuel ethanol is a sustainable and CO2 neutral fuel source and can replace MTBE as oxygenate in gasoline (MTBE originally replaced lead, but is now polluting the ground water reservoirs). Fuel ethanol is also able to supplement normal gasoline as basic fuel for the transportation sector

•Several US states are phasing out the use of MTBE; California from 1 January 2003 (>2 million litres in excess demand), New York from 2004. In addition, the following states either have implemented or will implement a reduction in use of or a phase out of MTBE: Arizona, Colorado, Connecticut, Illinois, Iowa, Kansas, Maine, Michigan, Minnesota, Nebraska, South Dakota and Washington. Currently, ethanol is subsidized from government side for use as fuel, but when replacing MTBE, the costs of using ethanol is either on or below current MTBE costs

•Current business, from starch to ethanol: Enzyme competitors are Genencor, EBS, Alltech. US fuel ethanol output per year around 2 billion gallons (6.8 billion litres), growing >20 per cent per year

•Worldwide market around 20 billion litres from sugarcane or starch (in the form of corn, wheat, barley, cassava, etc.)

•Future business, if successful, from cellulose to ethanol (enzyme hydrolysis; cellulose to starch, then liquefaction and saccharification to fermentable sugar). The result is lower production price and higher competitiveness also when compared to gasoline (without subsidy)

•Markets: US fuel ethanol to grow >20 per cent per year. EU to implement goals (for bio fuels, not only ethanol), 2% of all transportation fuels in 2005, 6% in 2010 and 20% in 2020. China introduced fuel ethanol as gasoline replacement in 2001 and is set to increase capacity significantly, largest ethanol plant; >700 million litres in capacity at one single plant - has large excess capacity in some agricultural grains like corn

•Enzyme market potential: 2005; USD 60 million, 2010; USD 200 million (both are conservative estimates)

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New tools for an old industry

How can Novozymes make enzymes less expensive?

Reduce enzyme production costs by:• Reduced cost feedstocks• Reduced enzyme recovery• On-site production• Increased fermentation yield

Increase enzyme activity on a per gram basis by:• More thermostable enzymes • Higher specific activity • Optimization of cellulase enzyme mix

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Bioinformatics•New fungal cellulases•Homologue analysis

Proteomics•Novel secreted proteins

Microarray•Novel mRNA’s

Directed Evolution•Rational design•Regio-specific mutagenesis•Random mutagenesis•Shuffling•Screening!!!

Fungal Expression•Expression of new genes•Fermentation

Biochemical Characterization•Protein purification•Substrate specificity •Thermostability•Synergy

Fungal Expression•Fungal host development•Fermentation optimization

Bioenergy Project Organization

A multidisciplinary approach was taken on the project using many different NZ biotech tools (read slide).Microarray, proteomics and bioinformatics fed novel genes into both expression work, to test their biochemical characteristics on converting biomass to glucose, as well as these genes being fed into the directed evolution technology – which was used to make them more active or with higher temperature stability.In the end, all wild-type and/or protein engineered enzymes were put back into the recombinant host, Trichoderma reesei, for co-expression and final testing on biomass conversion to glucose (which is then fermented to ethanol by yeast). The process is either a hybrid or simultaneous saccharifiaction/fermentation.

Using microarray analysis, over 728 biomass-induced clones were identified in a cDNA library and sequenced. Sequence analysis revealed 170 non-redundant genes, many of which were recognizable carbohydrate-active enzymes.

Sequence analysis revealed 170 non-redundant genes, many of which were recognizable carbohydrate-active enzymes. In addition, genes encoding hemicellulases, lignin-active enzymes, carbohydrates transporters, and others were identified. 24 genes without significant homology to previously cloned genes were found that could not be assigned a function. These proteins are of significant interest as they may represent previously uncharacterized enzymes involved in efficient lignocellulose breakdown.

Proteomics was used on the same T. reesei samples used in microarray experiments to help pinpoint those proteins that are both secreted and present in large abundance celluloytic fungi grow on cellulosic substrates. This method relies on the separation of proteins on a two-dimensional electrophoretic gel Several proteins were identified with increased expression on PCS in T. reesei and multiple proteins were a number of fungi that were chosen due to their ability to degrade PCS. Directed Evolution:Natural Diversity:

Identified, cloned and expressed cellobiohydrolases, endoglucanases, and β-glucosidasesBioinformatics, Proteomics, Microarrays, Fungal Expression, Protein Chemistry : Discovery of naturally occurring enzymes with improved thermal stability

Creating Diversity in the Laboratory: Directed EvolutionScreen for improved residual activity following thermal denaturation: β-glucosidaseScreen for improved enzyme activity at higher temperature: CBHI

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Significant biochemical improvements in cellulase efficiency have been made over the

> 6X

Expression of four recombinant proteins in production host

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Cost comparison after recent achievements: Grain vs. biomass in USD/gallon ethanol

$0

$1.75

$3.50

$5.25

$7.00

StarchCellulose 1999Cellulose 2004

3-D Column 13-D Column 2Biomass3-D Column 4EnzymesDepreciation of capital3-D Column 7TotalGasolinegasoline, $/gal3-D Column 12

USD

/gal

lon

EtO

H p

rodu

ced

Improvements:Mix of:• enzyme engineering• novel enzymes• process changes

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Biorefineries

Abundant Biomass Feedstocks

• Corn stover

• Wheat, barley, rice straw

• Trees

• Grasses

• Saw dust

• Ag residues

• Municipal solid waste

Conversion Processes

• Fermentation

• Gasification

• Combustion

• Co-firing

Biorefinery Uses

• Fuels:

• Ethanol

• Renewable Diesel

•Power:

• Electricity

• Heat

•Chemicals

• Plastics

• Polymers

• Solvents

• Chemical intermed.

• Adhesives

• Fatty Acids

• Pharmaceuticals

• Dyes, pigments, paint

• Surfactants, Etc.

•Food and Feed

Inexpensive sugars

Enzymatic hydrolysis

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Enzymes In Action:Contributing to Sustainable Development

Goodbye to…• Solvents• Acids• Oxidizing Agents• Chlorine• Food Chemicals• Sulphides• Pumice• High Temperatures• High Energy

Requirements

Hello to…• Reduction in aquatic

environment pollution• Reduction in agricultural

production burden• Reduction in energy

needs• Reduction in petroleum

dependancy

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The Biotech Effect (in billions of dollars)

Sector Market Size

Biotech ImpactBiotech Impact

Current 2010

Fine Chemicals $50 15% 30% - 60%

Polymers $250 1 6 - 12

Bulk Chemicals $300 3 6 - 12

Specialty Chemicals

$400 0 - 15 0 - 50

Total $1,000 5% 10% - 20%

Source: McKinsey & Co.; Chem Week 11Feb04Impact dependent on:• Technology development / Acceptance• Overall demand / Price competitiveness• Feedstock prices• Policy framework

Fine chemicals (pharmaceutical & chemical intermediates)

Polymers (polyesters, nylons, plastic additives)

Bulk chemicals (ethanol, ethylene, acetic acid)

Specialty chemicals (enzymes, surfactants, flavours, fragrances)

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Biotechnology - Added value to the chemical industry

Impact of industrialbiotechnologyCost reduction• Raw materials

• Process costs

• Investments

Additional revenues•New products • Value-added processes

Sustainable development

• Reduction in aquatic environment pollution

• Reduction in agricultural production burden

• Reduction in energy needs

• Reduction in petroleum dependancy

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Microorganisms, the art of our business

sustainable development

Enzymes are unlocking the Magic of Natures Own technologyThe Magic of Nature is the magic of the natural ecosystems operating to maintain balance and proper recycling of the resources of the Earth. The industrial revolution has influenced this natural balance significantly - to an extent which requires new technological platforms for continued economic growth.Unlocking The Magic of Nature is about biotechnology, about using and developing our knowledge about living organisms and systems to create solutions, which are more acceptable to the environment than current production technology. Enzyme technology is an example of modern biotechnology. This article demonstrates that enzyme technology represents a technology platform which can enrich many different industries with new and more sustainable technologies. The platform both offers a variety of potential products as well as advanced production-technology, which enables quick development of competitive products. The potential of enzyme technology in a sustainability perspective builds on this broad applicability. There are already developed so many enzyme applications that alone a higher penetration of these will contribute significantly to a better environment. However, hopefully a broader knowledge about the potential of enzymes will also foster the development of completely new and more radical solutions in support of our need for continuous economic growth. To Novozymes Unlocking the Magic of Natures own Technology is about expanding the use of enzymes to established and completely new industries. It is about transforming the traditional standards of industry to the benefit of nature and mankind and it is about dialogue with potential customers, scientists and regulatory authorities who can help us unlock the full potential of our technology. We imagine a future where the industrial revolution is replaced by an industrial evolution building on the multiple opportunities offered by enzyme technology.