Welcome to the World’s most

advanced biorefinery!

Jerry Gargulak

Gudbrand Rødsrud

Martin Lersch

Rolf Andreas Lauten

Anders Sjøde

A Practical Discussion

•Borregaard Business Model and

History

•The Technology and Value of

Lignosulfonates

•BALI Pretreatment: Viable

Economic Business Model

Borregaard products in daily life

Bio fuel

Dust control

Construction

products

Paint

Food

Flavour Pharmaceuticals

Car batteries,

gaskets, care

products

Animal feed

Soil

conditioner,

fertilizers

Textiles, spectacle

frames

Gypsum Board

Copper pipe

Global presence

Borregaard 2010 Turnover: € 660 mill.

Employees: 1300 in

20 countries

Main office

Sales office

Production

LignoTech USA Inc.

• Part of LignoTech group since 1991

• Specialty Lignosufonate products

• Capacity: 75,000 MT dry solid/yr

• Powder and liquid products

• Proprietary process technologies

• Formulation capabilities

• 75 Employees

• North American Legal entity

– Multiple sales locations

– Administration and customer service

– R&D, Tech support and BD Functions

• Leading supplier of specialty cellulose

• Global leader in lignin performance chemicals, 50%+ market share

• Only producer of vanillin from lignocellulosics

• Production of lignocellulosic bioethanol since 1938 (20.000 m3/y)

• 100% renewable energy expected by 2013

True Biorefinery

From Paper Mill to Biorefinery

Oil or biomass – green or black carbon?

Sustainable

chemicals,

materials,

ingredients,

biofuel

GREEN CARBON BLACK CARBON

Borregaard site in Sarpsborg, Norway

Head office - R&D - Production

800 employees, 2.5 bn NOK turnover

From spruce: specialty cellulose, lignin

products, biovanillin, 2G bioethanol

Other raw materials: basic chemicals,

energy, fine chemicals

The Team

Further development of the biorefinery concept

BioMaterials - Polymers - Composites

BioChemicals - Flavours - Monomers - Proteins - Fine chemicals - Speciality chemicals

BioFuel - Bioethanol - Biodiesel - Biogas

BioEnergy - Electricity/Heat - Liquid Fuels - Pellets

Co

st/

pric

e

Low

High

Creati

ng

valu

es

Low

High

BIOREFINERY

When you have choices you can optimize.

BIOETHANOL

A Practical Discussion

•Borregaard Business Model and

History

•The Technology and Value of

Lignosulfonates

•BALI Pretreatment: Viable

Economic Business Model

Pulping

• Pulping is the separation of cellulose from lignin and other components

• Lignin is rendered soluble

• Insoluble cellulose is filtered off

12-Dec-11

Production of lignosulfonate Production of Lignosulfonate

Fermentation

ethanol

Worlds first sulfite ethanol plant

started in Sweden in 1909

• First sulfite ethanol plant ever opened 1909

in Sweden, Skutskär, Uppland

• 33 plants in operation in Sweden, only one in

operation after 1983: Domsjø, capacity of 15

000 m3/y

Source: Persson, Bertil. Sulfitsprit. Förhoppningar och

besvikelser under 100 år. Bjästa : DAUS Tryck & Media,

2007. ISBN: 91 7542 258-1.

0

10000

20000

30000

40000

50000

60000

70000

80000

1909 1914 1919 1924 1929 1934 1939 1944 1949 1954 1959 1964 1969 1972 1977 1982 1987 1992 1997 2002

tom 100% sprit

år

Den svenska sulfitspritproduktionen

17 Sulfite ethanol plants in Finland 1927 -

1977

Sources:

1. Biorefining in the pulp and paper industry.

Niemelä, Klaus. Flensburg : s.n., 2008. 5th

European Biorefinery Symposium.

2. Kaukoranta, Antti. Sulfittispiriteollisuus

Suomessa vuosina 1918-1978 (Eng:"Sulphite

alcohol industry in Finland in 1918-1978"). s.l. :

Paino Polar Oy, 1981. ISBN 951-9479-25-2.

3. Niemelä, Klaus. Private communication. s.l. :

VTT TECHNICAL RESEARCH CENTRE OF

FINLAND , 2010.

1977 last sulfite ethanol production Early 1990’ies Last sulfite mill in Finland stopped production

Composition of crude LS solids

% RANGE

SOFTWOOD HARDWOOD

LignosulfonateHexose SugarsPentose SugarsMiscellaneous Hemicellulose, Sugar Acids Resins and Extractives

65146

123

52520

203

12-Dec-11 Page 19

Sulfite Pulping

Three dimensional structure

20 nm

Typical size exclusion curve

1000 nm 20 nm

Particle Size of Lignosulonates

30.04.03 -

Page21

Dispersing Agricultural formulations Concrete Ceramics, refractories Dyestuffs Gypsum board Oil drilling muds Pigments Carbon black Water treatment & industrial cleaning

Some Applications

Binding Briquetting bricks Dust control Paper & board Particle board Pelleted feeds

Other Emulsion Stabilization Batteries Cement Retarders (oil well) Soil conditioner Protein Bypass Flotation aid

Interfacial Agent

• Common denominater in these applications is that lignosulfonate is

used as an interfacial substance.

• This means that an application specific system (emulsion, suspension,

formulation) is manipulated or processed to concentrate lignosulfonate

at the interfaces between solid particles or oil droplets and suspending

medium (usually water)

• Once located at the interface, lignosulfonates performs.

• Lignosulfonates are present and used at interfaces, i.e. liquid-solid,

liquid-liquid, liquid-gas, solid-gas

• Lignosulfonate may or may not adsorb onto an interface. There has to

be an affinity between lignosulfonate and the interface in question. A

low affinity can be overcome by processing techniques.

Lignosulfonate

Lignosulfonate - emulsifier and dispersing agent

Flow table test

stabilize emulsions

disperse color pigments

disperse pesticides

Lignosulfonate

Concrete Additives

• Additives for concrete admixture formulations

• Water reducer for concrete

– Stronger, lower cost concrete

• Borresperse®, Norlig®, Wanin®, Wafex®, Ultrazine®

Essential Component for Lead Acid Batteries

• Modified Lignosulfonate –Vanisperse A

• Maintains charge capacity

• Improves cold cranking

• Longer lifetime

Improve life

0

3,200

0.0 0.3 0.6Vanisperse A Dosage:

% on weight of leady oxide

Lif

e @

41 C

Increase cold crank ability

20

33

0 0.3 0.6Vanisperse A Dosage:

% on weight of leady oxide

Co

ld C

ran

k @

-18 C

III BLT Latin

America March 8th-10th,

2007

Page 27

Organic Expanders

Increase the surface area of negative active material yielding

sponge lead

Preserve fine, porous lead crystal structure on cycling

Promote formation of small lead sulfate crystals on discharge

Promotes formation of a porous lead sulfate layer

No Organic 0.5% Vanisperse A

Images from D. Boden

A Practical Discussion

•Borregaard Business Model and

History

•The Technology and Value of

Lignosulfonates

•BALI Pretreatment: Viable

Economic Business Model

Sugar platform pathways – how to choose?

Hydrolysis processes

• Dissolving cellulose and hemicellulose leaving hydrolysis lignins undissolved

– Strong acid

– Weak acid

– Enzymatic

– Microbial

– Supercritical water

Pulping processes

• Dissolving lignin and (hemicellulose) leaving cellulose undissolved

– Kraft

– Soda

– Sulfite

– Solvent

– Extrusion

Lignin quality depends strongly on process and biomass source

Hemicellulose/xylan form and quality depending on process

Hydrolysis Lignin (S)

Hemi- Cellulose (L)

Cellulose (L)

Lignin (L)

Hemi- Cellulose (L)

Cellulose (S)

SOLID

SOLID

LIQUID

LIQUID

Pretreatment challenges

• Lignins bind to enzymes

– high enzyme dosage required for acceptable yield/reaction time

– prevents recycling

• Lignins are often impure and often strongly condensed

– unattractive feedstock for chemicals

• Unfavorable mass balance

– low yield of valuable product

– large fraction of feedstock used for energy production

Inspired by today’s existing biorefinery Borregaard has

developed a modified chemical pretreatment that

addresses these issues

BALI™ process in a nutshell

Feedstock handling

Pretreatment

Lignin processing/ marketing

Hydrolysis

Product purification

Fermentation

BALI – a significant simplification and spin-off opportunity

Lignin Cellulose Energy Lignosulfonate Sugars for fuel or chemicals

BALI vs Woodpulp biorefinery:

- Significantly reduced raw material cost - Reduced complexity and capital requirement - Value creation from lignin compared to other processes - Generates growth opportunities Change in business model for Lignosulfonate

Improved competitiveness through value creation

Traditional woodpulp Biorefinery

BALI

Biorefinery

Low cost raw material

High cost raw material

Dose-response curves with Novozymes

Cellic® CTec2

0 %

20 %

40 %

60 %

80 %

100 %

120 %

140 %

0 2 4 6 8 10 12

Glu

can

co

nve

rsio

n

Enzyme dosage % v/w (Cellic® CTec2 from Novozymes)

BALI acid pretreated bagasse

24 hours

48 hours

72 hours

0 %

20 %

40 %

60 %

80 %

100 %

120 %

140 %

0 2 4 6 8 10 12

Glu

can

co

nve

rsio

n

Enzyme dosage % v/w (Cellic® CTec2 from Novozymes)

BALI alkaline pretreated bagasse

24 hours

48 hours

72 hours

6.3% glucan loading

DS: 9.2% DS (acid) and 11.3% (alkaline)

50 °C, 200 rpm in shaking incubator

50 mM sodium citrate buffer at pH 5

50 g total reaction mass in 100 mL flasks

0.01% NaN3 for microbial control

Sugar analysis by HPLC

(> quantitative yield due to underestimation of

glucan in raw material analysis)

Novozymes comment:

”This is probably among the best

10-15% of all results we have seen”

Cost and complexity

Time to market

R&D Lab and miniplant

Pilot plant Full scale plant (green – or brownfield)

BALI project: Next steps

• Development and test of concept • Choice of technology • Analytical methods • Initial product tests

• Scale up • Adapt and improve technology • Process optimalization (reduce VC) • Test products to external customers • Base case for dimensioning full scale plant

• Commercial production

• Several plants

2007-2011 2011-2013 2014 -

Pilot : • Necessary for further technology development

Feedstock handling

Pretreatment

Product purification

Hydrolysis Fermentation

Lignin processing

Pilot demonstration plant

• Location: Sarpsborg, Norway

• Flexible feedstock

• Flexible process conditions

• 1 metric ton dry matter/day (50 kg/h)

• Commissioning expected May 2012

• 800 m2 total area

• Total cost approx 24 mill USD

• Continous operation

BALI Pilot – Status construction

Concrete work ready:

22 September

Steel structure ready:

25 October

Sealed building:

15 November

Building finished:

January 2012

Funding

BALI • PILOT

Biomass2Products Borregaard receives 19 mill NOK from the Norwegian Research Council (2009 – 2012) EuroBioRef Borregaard receives 3.0 M € from FP7 through the EuroBioRef consortium (2010 – 2013) Pilot plant 58 mill grant from Innovation Norway. BIL Board approval 72 mill NOK Technoport award for innovative environmental technology

BALI SUMMARY

• BALI pretreatment process, enables good economy in a biorefinery

• A good solution for a limited number of biorefineries

– market for lignin performance chemicals is not unlimited

• Borregaards strategy is to produce biochemicals, not biofuels