Industrial Use of Canola Oil Opportunities and Challenges
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Transcript of Industrial Use of Canola Oil Opportunities and Challenges
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Industrial Use of Canola OilOpportunities and Challenges
Bill McNeillThe Dow Chemical CompanyMarch, 2007
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Slide 2WCM/March 22, 2007
About Dow …
A science and technology leader with annual sales of $49 billion
Founded in 1897 by Herbert H. Dow in Midland, Michigan
Supplies more than 3,300 products to customers in 175 countries
From 156 manufacturing sites in 37 countries
Employs 43,000 people globally
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Slide 3WCM/March 22, 2007
The Dow Chemical Company
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Slide 4WCM/March 22, 2007
Serving Many Markets with Essential Solutions
Food/FoodPackaging
22%
Personal/Household Care
16%
Building Maint/Construction
11%
Automotive/Transportation
9%
Home Care/Improvement
10%
Paper/Publishing
7%Furniture/
Furnishings4%
Electronics/Entertainment
3%
Health3%
Water Purification
2%
Hydrocarbons & Energy
12%
Miscellaneous1%
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Slide 5WCM/March 22, 2007
Strategic Themes
Set the Standard for Sustainability
Drive Financial Discipline and Low Cost to Serve
Invest for Strategic Growth
Build a People Centric Performance Culture
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Slide 6WCM/March 22, 2007
Trends Driving Renewable Feedstocks
High Cost and Volatile Hydrocarbon Feedstocks
Changing The Game
Energy and Raw Material Security
Climate Change – Increasing Cost of Carbon Emissions
Sustainability – LOHAS Consumer Segment
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Slide 7WCM/March 22, 2007
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Slide 8WCM/March 22, 2007
Soy Polyols
Soy Oil FAME + Glycerine (by product)
Dow Technology
Polyol+ Isocyanate
Polyurethanes
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Slide 9WCM/March 22, 2007
Control Foam Soy Foam
Enhanced Whiteness
Exposed ExposedCovered Covered
Better Performance
Better Moisture Resistance
Alternate PolyolSoy Polyol
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Slide 10WCM/March 22, 2007
Glycerine to Epichlorohydrin
Seed Oil FAME + Glycerine (by product)
Epichlorohydrin + BPA Epoxy Products
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Slide 11WCM/March 22, 2007
Renewable Project Risks to Manage
Raw Material SupplyConversion Technology Market Acceptance
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Slide 12WCM/March 22, 2007
Renewable Feedstock Options
Sugar & Starch Fats & Oils Biomass
• Refined global commodity• 150 MMT• 12-25 ¢/lb
• Refined global commodity• 150 MMT• 15-40 ¢/lb
• Crude Product• Developing supply chain• 100 Giga T
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Slide 13WCM/March 22, 2007
Conversion Technologies
GasificationFermentation
Chemical Processes
Syngas
Alcohols Ethylene
Ethanol Chemicals PolyolsEpichlorohydrinPropylene GlycolSurfactantsLubricantsPolymers
Renewable Feedstocks
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Slide 14WCM/March 22, 2007
Market Acceptance
New Products
• Significant Improvement in cost/performance required
• Customer Driven
Increasing Risk and DifficultyIncreasing Risk and Difficulty
Equivalent in Application
• Expanded Offering• Customer Validation
Now with Renewable Plastic
Exact Replacements
• Cost saving is driver• Defend against new
competitors
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Slide 15WCM/March 22, 2007
Critical Issues
Business Strategy Feedstock Availability/Cost Various Feedstock Cost Scenarios Drop in Replacement vs. New Product Process Development Required Platform vs. Single Molecule Freedom to Practice Technology Sustainable Differentiation
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Slide 16WCM/March 22, 2007
Chemicals from Renewable Feedstocks Advantages
Potential Low Cost Feedstock Diversification Potential for Better Performance Reduced Environmental Impact Expanded Business Models Growing Consumer Demand
Challenges Complex Supply Chain Distributed Business Model Established Petrochemical Products New Conversion Technologies Coal Cost, Cost, Cost
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Slide 17WCM/March 22, 2007
150 MM Lbs PLA expansion vs. 19 Billion Lbs PE new capacity 20 MM Lbs Soy Polyols vs. 12 Billion lbs of PO produced per year 150,000 MT Glycerin-Based EPI Vs. 1,400,000 MT capacity
8th annual Bioplastics Conference, 6-7 Dec 2006, Frankfurt
by 2010 --- 0.9-1.6% of petroleum based plastics will be replaced with bioplastics,
by 2020 --- the percentage could be 1.25-2.5%.
2005 – 2008 --- global capacity for bioplastic increases from 360,000 to 600,000 t/yr
It Will Take Time -
Changing the Game …
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Slide 18WCM/March 22, 2007
Changing the Game …
Now First generation biofuels PDO PLA polymers
1 – 5 years By-product glycerin to chemicals Seed oil-based Polyols Ethanol to olefins
PHA, PHB polymers Butanol, Succinic Acid from sugar
5 -10+ Years Second Generation Biofuels Bio-refineries, industrial chemicals Bio Engineered crops for chemicals
WCM/March 22, 2007WCM/March 22, 2007
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Thank you!
Questions.