Meredian April 2014 Newsletter

MEREDIAN, INC. NEWSLETTER APRIL 2014
APRIL 2014 NEWSLETTER
Paul Pereira
Over the past month tremendous attention has been
paid to Meredian and our Fields of Gold. Many
newspapers and reporters have approached Greg
Calhoun about this majestic looking beautiful crop and
its purpose. Apart from its blooming beauty this Canola
crop serves a very distinct purpose in the vertical
integration of our supply chain. Meredian is the only
company worldwide that has begun to successfully
demonstrate the seamless integration into or input
feedstock. The Canola seeds are harvested and then
crushed for its oil content, which is then transferred
into the large fermentation tanks for Meredian’s
microorganisms to feed on and produce the PHA, which
is a biopolymer replacement for petro plastic. A very
exciting time in the journey and history of Meredian as
we move to harvest of these fields of gold.
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When asked to write an article about what it was
like to run the Danimer Production facility I
thought what better way to illustrate that than
give you the view from the production
operator’s perspective.
Nothing is more
rewarding for me as a manager to see their hard
work and dedication turn raw materials into a
high quality, functional finished product that our
customers have confidence in.
We have a total of four operators on staff. They
typically work a five-day workweek with 2 men
per shift and 12 hours per shift for each 24-hour
day. They are primarily responsible for running
two reactive extrusion lines, which are capable
of producing approximately 40000 lbs. each of
finished resin per day.
Pictured above are our operators from left to right: Darren Holt, Brian Dodson, Philip Moore and Greg McCullough
Additional responsibilities include staging, blending, and feeding raw materials, performing daily standard operating
procedures, carrying out quality control checks, as well as all shipping, receiving, cleaning, and daily maintenance
required for operation. Our production team prides itself on running a lean manufacturing plant and I am particularly
proud of our operators for their hard work and dedication in making it happen.
At the end of the day our goal is to make a high quality, functional, low cost product for our customers; a product that
Danimer and our shareholders can have confidence that our operators can successfully deliver.
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MEREDIAN, INC. NEWSLETTER APRIL 2014
Don Phillips
break apart with one of us preparing the tank for
loading and the other one handling the product to be
processed. As the product is being introduced into the
processing tank, paperwork and a unique batch
identifier is created. This product is concentrated, so
we dilute to a standard solids concentration in the
vessel, which will be used to calculate our lysis
treatment amounts and project our “day-two” process
times. The first portion of the lysis treatment is added
as the vessel heats up to our enzyme treatment
temperature; we must also balance the pH for optimal
enzyme activity. Once pH and temperature have
stabilized, enzyme treatment begins. While the
enzymes are incubating, we have some time to clean up
our work areas and prepare materials and equipment
for subsequent processing steps. We may also use this
Pilot production is spearheaded by Lead Operator,
David Mazzei, and Process Development Engineer, Mark
Kasilus. Internally, we lovingly refer to them as team
DaviMar, a play on the DaniMer company name.
DaviMar champions the motto “we’ll be here” in
reference to the near around-the-clock schedule
intermediate scale PHA production requires. They are
currently focusing on the downstream processing (DSP)
of the larger scale runs produced by Tate & Lyle while
Don Paul’s team is installing our own larger scale (5,000
gallon) fermenter in the pilot area that will expand our
pilot production capabilities by 5 fold. Here is a day
(actually a couple of days) in the life of team DaviMar:
Planning and Scheduling
We begin DSP of a batch by first discussing data and
observations from previous loads to determine supply
needs and evaluate time requirements. In short, our
DSP consists of lysis (breaking open of the cells),
separation, dewatering, and drying. Processing days will
range from 10 to 24 hours in length depending upon the
point within the production process and the amount of
product in a batch. Based on recent throughput
increase and sequencing improvements, we are
currently set at a 10 hour “day-one”, with a return visit
by one of the staff for an additional hour, followed by a
12-18 hour “day-two” depending on the efficiency of
processing.
PHA wet cake formed via pressure filtration.
time to continue investigating and evaluating items
related to the 5,000 gallon fermenter coming on-line.
After a set incubation period, we sample, document
information, and make the next lysis addition. We will
use the data collected for modifying process
parameters and determining the final lysis addition
time, which will run overnight.
“Day-One” of Downstream Processing
Day one of DSP is dedicated to lysis of our cells to
liberate our PHA material for purification. We begin by
ensuring all utilities are on-line; this includes steam
generation, clean steam generation, the chilled water
loop, and distillation. After this is accomplished, we
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MEREDIAN, INC. NEWSLETTER APRIL 2014
David Mazzei & Mark Kasilus aka “DaviMar
MEREDIAN, INC. NEWSLETTER APRIL 2014
Throughout the day, we continue to monitor process water distillation, perform manual blow downs on the steam
systems, and evaluate process input needs to ensure we experience no loss of production due to insufficient supplies.
We must also continue researching process improvements and finalize reports related to previous runs, presenting data
in a form that allows constructive discussions on improvements that can be made. We utilize any downtime to evaluate
and improve upon the overall quality of the material produced, as well as determining ways to reduce “day-two”
processing times.
“Day-Two” of Downstream Processing
“Day-two” consists of executing the remaining three process steps: separation, dewatering, and drying.
Streamlining “day-two’s” activities is a focus on “day-one”, with multiple information gathering performed during
operation so that communication with vendors and improvements can be made to the rates at which the material can
be processed. Each step requires set-up and teardown as well as clean-in-place (CIP) activities for all equipment used.
Separation is the most time intensive section of the process, typically requiring 12-14 hours to complete; however, the
product collected from separation is much more concentrated and nearly impurity free.
The high concentration of PHA and high purity level allows us to move to our dewatering step where we form a wet cake
via filtration equipment and wash out any remaining impurities (see Figure 1 below). We then place our wet cake in a
desiccating dryer to remove all moisture from our PHA. It may take several days to fully dry our product before we can
weigh it into Mylar bags and seal them up for storage. In the meantime, we will begin processing our next load.
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Imagine that you developed a unique technology that is
in high demand to fill an unmet need in the fastestgrowing segment of an industry that is expanding
globally. For most companies, this will never be more
than a dream. For our teammates and investors at
Meredian Holdings Group this dream is starting to
come true.
This dream is coming true because of the incredible
commitment and dedication of the Meredian Team
who developed an idea that was only a proof-ofconcept into a commercially feasible manufacturing
process and a product portfolio that is mere weeks
away from the start of commercial scale production.
The benefits from this technology (biopolymers that
replace plastics) to our investors, our community, and
our team are embodied in the value chain that begins with agricultural crops and ends with a useful biopolymer article
in the hands of consumers. We refer to this process as “agrofacturing”. Through the process of agrofacturing
(converting agricultural crops into valuable articles) Meredian Holdings Group provides a large portfolio of unique and
valuable products for our strategic customer-partners.
Along the journey from idea to large-scale agrofacturing, Meredian Holdings Group has created dozens of jobs that
require highly skilled individuals who earn above average wages. High wage earners in turn, generate value in our
community because of the economic impact of their investments and purchases. Individuals in our community can look
forward to the opportunity to find interesting, rewarding work without having to move away from family and friends.
For the Meredian Team, our investors, and our community, the future looks very promising. Our journey has just
started, and we have not yet reached our cruising altitude. However, we are well on our way, and we have had a
positive boost this past year as additional investment has enabled us to reach the final stages of plant construction and
startup. We have celebrated another profitable year in our DaniMer business and look forward to the same result in our
Meredian business.
The next stages of our journey are bright with opportunity and we look forward with great enthusiasm as we continue
our adventure to realize the potential represented by the business of Meredian Holdings Group.
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MEREDIAN, INC. NEWSLETTER APRIL 2014
Daniel Carraway
MEREDIAN, INC. NEWSLETTER APRIL 2014
Dr. Isao Noda
Poly(lactic acid) (PLA) and poly(hydroxyalkanoate) (PHA)
are both aliphatic polyesters which can be made from
100% renewable resources. Although there are certain
similarities between the two, because of the polyester
nature, these two bioplastics are also very different in
many ways. It is useful to make a brief comparison
between the two.
PHA is a semicrystalline polymer with the melt
temperature ranging from almost 180 oC (PHB
homopolymer) to much lower temperature between
120 and 150 oC for medium-chain-length (mcl) branched
Nodax™ class PHAs offered by Meredian Bioplastics.
PHA hardens by crystallization, which traditionally has
been a somewhat slow process. Meredian’s proprietary
additives can accelerate the crystallization rate
comparable to that of polypropylene. Because of the
presence of crystals scattering light, PHA is typically
opaque or translucent. Meredian’s mcl-branched PHAs
are ductile and tough plastics, resembling
polypropylene or polyethylene. Depending on the
branch content, PHA can take a very broad span of
mechanical properties ranging from relatively hard resin
suited for fiber spinning, tough plastics for molded
articles, soft and drapable film materials, as well as
almost elastomeric soft composition.
PLA is a clear hard and brittle material with the glass
transition temperature (Tg) found about 55 to 60 oC.
The material hardens quickly as the temperature is
lowered below Tg. This property is helpful in molding
processes. The physical property resembles that of
clear polystyrene. However, it softens at a temperature
much lower than that of polystyrene, which limits
certain end-use applications.
The technology
introduced by Danimer Scientific greatly improved the
thermal stability of PLA, but optical clarity may be
compromised. PLA can also be crystallized to have
higher thermal stability if properly annealed well above
the Tg.
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As PHA is produced by bacteria as an energy storage
medium, it can also be eaten by bacteria as energy
source. Thus, PHA is in a true sense biodegradable.
Unlike many other chemically synthesized aliphatic
polyesters, such as for example BASF’s Ecoflex™, PHA is
biodegradable with or without oxygen. This anaerobic
biodegradability is very unique to PHA class of
bioplastics. PLA by itself, on the other hand, is not
biodegradable. However, PLA can be hydrolyzed
gradually in the presence of moisture to oligomeric
form, which in turn can be biodegraded. Thus, even
though PLA is not biodegradable, it is regarded as
compostable.
undergoes rapid hydrolysis. PHA also undergoes some
level of thermal degradation above 150 oC, and the rate
of degradation dramatically increases above 180 oC
even without any trace moisture.
Some property differences between PLA and PHA can
be surprising. For example, the barrier property of PLA
against moisture, oxygen, and CO2 is not that great.
PHA, on the other hand, exhibits unusually high barrier
property against oxygen, CO2 as well as various odors.
Soft and heat sealable films made of Meredian’s
Nodax™ class PHA with high barrier property may
provide intriguing opportunity of applications.
The obvious difference between PLA and PHA also may
provide an interesting opportunity to combine the two
bioplastics to obtain new composite materials with
novel properties previously not achievable. Different
degradation mechanisms can be judiciously combined
to control the degradation rate of products. Different
solidification rate and temperature can be combined to
assist the production process and end-use range. In
short, PLA and PHA are not competing at all but actually
truly complementary sisters of the bioplastics family.
The moisture-induced spontaneous degradation of PHA
by hydrolysis can become a double edged sword, as it
may also affect the stability of not only the end
products but also the resin itself. Proper removal of
moisture prior to processing and isolation from
moisture for prolonged storage will be usually required
for PLA. Interestingly PHA is surprisingly robust against
room temperature spontaneous hydrolysis. At an
elevated temperature, say above 100 oC, PHA
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PLA is chemically synthesized by a
conventional
polymerization
reaction of the monomers, either
lactic acid or more commonly
lactide derived from lactic acid.
Lactic acid, which can take either L
form or D form depending on the
chirality,
is
produced
by
fermentation of sugar or starch,
and subsequent inversion if
necessary, as the building block of
PLA. Thus, PLA is classified as a biobased plastic. In contrast, PHA is
biosynthesized directly as polymer
material by the fermentation of
lipids
or
saccharides
by
microorganisms. PHA is harvested
from bacteria, which accumulate this class of polyesters as energy storage medium in a manner similar to fats and oils in
higher organisms. Thus, PHA is not only bio-based but also biosynthesized polymer.
The IPO preparation. Internal controls and Sarbanes Oxley.
The Main Facility ramp up
It’s Raining PHA.
Henkel update
Scan to learn more about Meredian
Explore our website at www.meredianinc.com filled with insightful reources
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