1. business and industrial
2. chemicals industry
3. plastics and polymers

Creating markets for bio-plastics
Value drivers and targeted applications
Marc Verbruggen
Bangkok – October 2014
1
Topics
• NatureWorks
• Value drivers for bio-plastics
• Targeted applications
© 2014 NatureWorks
2
Who we are
•
World’s leading bio-polymer player
− 150,000 ton plant in Blair, NE
− Significant manufacturing know-how
and an extensive IP position
•
•
•
•
Jointly owned by Cargill and PTTGC
Proprietary portfolio of Ingeo biopolymers & intermediates
Ingeo - competitive on a cost and
performance basis with traditional plastics
(PS, PET)
Superior environmental characteristics
− Lower carbon footprint , low fossil energy
− Additional end-of-life options
•
Established global market channels
− Over 100,000 ton in annual sales volume
− Commercial partnerships with global brands
© 2014 NatureWorks
3
General Ingeo/PLA Property Comparison
Ingeo
GPPS
PET
PP
Mpa
53
45.5
58.6
35.9
%
6
1.4
5.5
350
Tensile Modulus
Gpa
3.6
3.03
3.45
1.31
Izod Impact
J/m
16
21.4
26.7
48.1
Tg
C
55-60
102
74
-20
Melting Point
C
125180
None
270
165
g/cc
1.24
1.05
1.35
0.9
Tensile Strength
Elongation at break
(%)
Density
* Properties measured on 3.2 mm thick injection molded tensile bars. Specific properties pertain to Ingeo 2003D
© 2014 NatureWorks
4
Ingeo Technology Platforms
8-series
Foam
7-series
Blow Molding
6-series
Fibers/Non-woven
4-series
Film
3-series
Injection Molding
2-series
Thermoforming
Lactide Monomer
© 2014 NatureWorks
5
Bulk Truck
Bulk Railcar
1 MT Super Sack
750 kg Box
© 2014 NatureWorks
6
Where is Ingeo in the Market ?
Rigids
Food Serviceware
Nonwovens / Fibers
Durables
Films
Lactides
Incubator
© 2014 NatureWorks
7
Supported by a broad & growing Ingeo distribution network
Europe, Middle East, Africa
•
Resinex (EU 27 countries)
•
Resinex BMY (Turkey)
•
Protea (South Africa)
•
Jolybar (Israel)
Asia Pacific
•
PTT Polymer Marketing (Thailand)
•
BP Consulting (Japan)
•
Unic (China)
•
First In Colours (Philippines)
•
Seeplas (Australia)
•
Poynter Agency (New Zealand)
Americas
•
Nexeo (USA & Canada)
•
Jamplast (USA)
•
Promoplast (Mexico)
•
Cromex (Brazil)
•
Oxiquim (Chile & Peru)
•
Quimicoplasticos (Colombia)
•
Cosalco (Costa Rica)
© 2014 NatureWorks
8
Tangible Commitment to the A/P Region
New Asia Pacific Regional Headquarters
Blair, NE
USA
Rayong Province
Thailand
•
Bangkok, February, 2013. NatureWorks
1st Asia Pacific regional headquarters established
– Warehousing and logistics capabilities, customer service, finance staff,
•
Engineering Underway for plant II in the region
Investments reinforce NatureWorks' commitment to the region and its
support of accelerating Asian market growth
© 2014 NatureWorks
9
Markets for bio-plastics:
A decade in the market – Some take-aways:
• Most (all) bio-plastics compete against commodity plastics
– Developed & optimized over the last 50 years
– Large & global asset base, established converter network
• Except for legislated applications, carbon footprint reduction has
failed to gain much traction as a value driver (no “green premium”)
– Consumers are confused and/or don’t see value (packaging)
– Brands have largely not succeeded positioning “carbon footprint” as a
brand differentiator.
• Bio-plastics are increasingly recognized as “just” plastics
– Compete on price/performance
– AND THAT WORKS FINE FOR A BIO-PLASTIC SUCH AS PLA
© 2014 NatureWorks
10
Three Era’s of Bioplastics
Forming
“Bioplastics
are for
Biodegrading”
•
•
Norming &
Performing
Storming
Biobased = exception
Litter focused
1990’s
“Bioplastics
sequester
Carbon”
•
Carbon footprint
focus
2000’s
“Bioplastics
=
Plastics”
•
•
•
Biobased = expectation
Performance is king
“biodegradable” where
it’s the highest good
2010’s
© 2014 NatureWorks
11
Plastics Consumption (%)
100
60
11
80
50
40
5
PC
Nylon
ABS
PS
7
PET
9
LDPE
18
PVC
17
Our End Applications
58Bn lbs/$50Bn
LLDPE
HDPE
1
3
4
60
Total Addressable Market (Bn lbs.)
14.5
14.0
Films / Cards
Cards
Films
Apparel
Home Textiles
Fibers /
Non-wovens
30
Non-Wovens
40
13.6
20
PP
12
5.9
Food
Serviceware
5.9
Fresh Food
Packaging
3.6
Beverage
10
25
0
Durables
20
0
Durable Goods
Folder Cartons
Food Packaging
Serviceware
Bottles
© 2014 NatureWorks
12
The value drivers for each bio-plastic (and plastic)
must be clearly defined
“The 3 P’s for Ingeo PLA”
Properties
•
Broad and
adjustable physical
property set
Price
Preferences
Favorable yields,
 Lower carbon
footprint and energy
usage
Economies of scale
 Health Concerns
Sugars vs oil
Feedstock hedging
capabilities




BPA free
Phthalates free
Acrylonitrile free
Styrene free
Cradle to cradle
economics
© 2014 NatureWorks
13
Properties: Over the last 10 years, NatureWorks has
optimized Ingeo grades towards specific applications
Nonwovens / Fibers
Key Properties




Range of melting
points/crystallinity
levels
Tunable hydrolysis
Hydrophilic / moisture
wicking
Inherent odor
resistance

UV resistance

Low bonding temp
Rigids
Key Properties
Durables
Key Properties
Food Serviceware
Key Properties
Films
Key Properties

Stiffness

Stiffness

Stiffness


Gloss, transparency

Miscibility

Compostability


Printability

Improved flow


Chemical resistance

Weight reduction (vs.
PET)
High versatility for
injection, extrusion
and coating
processes


Stiffness
High gloss and
transparency
Dead fold / twist
retention
Grease, oil and aroma
barriers

Chemical resistance

High throughput
© 2014 NatureWorks
14
Ingeo Innovations
in Fibers/Nonwovens
© 2014 NatureWorks
15
Ingeo Innovations in
Flexible Films
© 2014 NatureWorks
16
Shrink Films
© 2014 NatureWorks
17
Ingeo Innovations in
Food Serviceware
© 2014 NatureWorks
18
In Food Service, Ingeo provides a
tool for organics diversion
© 2014 NatureWorks
19
And what about colleges, high
schools, airports, hospitals, ….
And if it works in the North America,
what about the rest of the world?
© 2014 NatureWorks
20
3D Printing: Ingeo Performance in a (rapidly) emerging market
•
•
•
•
Low polymer thermal shrinkage means high
resolution printing of the most complex parts
Strong Ingeo fusing performance means it’s
easy to use and performs well on most
prints
Low Ingeo melt point means safer, lower
temperature printing.
Very low emissions with Ingeo means no
unpleasant odors
© 2014 NatureWorks
21
Improved Stiffness for Heat Resistant Ingeo Parts
Improved Stiffness with Crystalline Ingeo
for Practical Temperature Range of Hot
Foods
Modulus (Mpa)
100
~40% increase
in stiffness
80
High
Productivity
Grade
60
40
20
Incumbent
0
60
70
80
90
100
Temperature, °C
110
© 2014 NatureWorks
120
22
With related reduction in the manufacturing time
required to produce the heat resistance part …
Existing Ingeo Grades
New High Productivity Ingeo Grades:
~ 70% shorter cycle times
Temperature
© 2014 NatureWorks
23
Price: Ingeo can compete with rigid plastics (PS, PET) since:
1: Sugar-to-polymer yields allow for feedstock
cost competition with oil
2: Plant yields, CAPEX, OPEX are comparable with
PS/PET
Polymer
Technology
Overall
Process Yield
Kg sugar for
1 kg polymer
Bio PLA (Ingeo)
Sugar to PLA via lactic
acid and lactides
80%
1.25
Bio PP
Sugar to ethanol to
propylene to PP
47%
2.14
Bio PET
Bio MEG + Bio PTA from
sugar
36%
2.77
Bio PE
Sugar to ethanol to
ethylene to PE
31%
3.22
© 2014 NatureWorks
24
PET/PS/Ingeo Feedstock Cost Comparison
$250
PET
Cost of Oil ($/bbl)
$200
Above lines,
Ingeo wins
$150
PS
$100
Material
Indifference Curve
$50
$0
$0.00
Below lines,
PET/PS wins
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Cost of sugar (c/lb)
PET Analysis from McKinsey margin models, CMAI, February 2006
© 2014 NatureWorks
25
PET/PS/Ingeo Feedstock Cost Comparison
$250
Cost of Oil ($/bbl)
$200
Above lines,
Ingeo wins
$150
For Example
• When sugar cost ~$.17/lb, the cost
of feedstock per lb of Ingeo is the
same as the cost of feedstock per
lb of PS when oil is ~$50/barrel
• OPEX and CAPEX are
PS similar.
• The rest is scale…
$100
$50
$0
$0.00
Below lines,
PS wins
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Cost of sugar (c/lb)
Cellulosic sugars
Gen 3 sugars
PET Analysis from McKinsey margin models, CMAI, February 2006
© 2014 NatureWorks
26
We are committed to feedstock diversification:
Performance materials made by transforming whatever are the right,
abundant, local resources
Investment in innovation and R&D collaboration to grow our Ingeo feedstock portfolio.
GENERATION I: 1st step
GENERATION I: 2nd step
GENERATION II
GENERATION NEXT
Where we are today
Where we are going now
Next 3-5 years
And next?
Dextrose from corn starch
Sucrose from locally
abundant materials such as
sugar cane
Lignocellulosics: Sugars
from bagasse, wood chips,
switch grass or straw.
CO2 to lactic acid
technology?
“Bridging Crops”
CH4 to lactic acid
technology?
© 2014 NatureWorks
27
Ingeo Innovations in
Rigids
© 2014 NatureWorks
28
Plastics by Preference: The Brandowner View
• In non-legislated markets/applications, “carbon
footprint” does not create a “green premium”
• Health & safety perceptions with some plastics
increasingly drive materials substitution
–
–
–
–
“BPA free
“Phthalates free
“Acrylonitrile free
“Styrene free …
Greenpeace’s “Pyramid of Plastics”
© 2014 NatureWorks
29
Ingeo Innovations
in Durables
© 2014 NatureWorks
30
Danone’s Stonyfield - in their own words:
“IMPACT OF INGEO CONVERSION”
• Carbon savings
Environmental
• 75% reduction in CO2 emissions
• Equivalent to 1,320 MT CO2/year savings
• Ingeo out performs polystyrene
•
•
•
•
Stronger/less breakage
Performance
Better lid adherence
Lower temperature filling (less energy use)
Maintained line speed and shelf life
• Addresses consumer concerns
• Well received by key opinion leaders
Consumer
• Reduction in human toxicity
& Cost
• Did NOT increase our retail price
Stonyfield CEO Gary_Hirschberg, Innovation Takes Root Conference Keynote:
“Inventing a WIN--WIN--WIN--WIN-­WIN FUTURE”, February 21, 2012
© 2014 NatureWorks
31
Market Presence
2005 – 2013
Footprint in the market
6X
1 Billion lb
Milestone
aggregate volume
in the market
as of 2013
© 2014 NatureWorks
32
Market
MarketPresence
Presence– in the bigger picture
2005 – 2013
Footprint in the market
Today
Startup &
Market
Seeding
1 Billion lb
Technology &
Milestone
Intellectual
Operations
Established
Poised for 6 X
Strong
Growth
Property
Established
1990-2001
4k -8k mt
pilot plant
2002-2005
2002 -140k mt
facility @ Blair.
2003 -largest
lactic acid plant
aggregate volume
in the market
2006-2013
2014 - forward
as of 2013
2006 - 24/7 Blair
operations at Blair
2013 – 150k ton
expansion
Expanding
customer &
product base.
Plant 2
© 2014 NatureWorks
33
Ingeo Commercialized Applications throughout Asia
South Korea
China
• Mulch film
• Shopping bags
Films
Durable
Taiwan
3D
Printing
Rigids
Nonwovens
Japan
Food Service
Rigids
Fibers
Durable
Thailand
Australia / New Zealand
1-in- 5 coffee cups is
made of Ingeo
Rigids
Food Service
Food Service
Foam
© 2014 NatureWorks
34
Dairy Home’s Yoghurt Cup
Avitez’s Bottle
Doi Chaang’s Cup
Chaho’s Cup
© 2014 NatureWorks
35
Naturally advanced materials made from locally
abundant and sustainable natural resources
Thank you
Marc Verbruggen
NatureWorks LLC
www.natureworksllc.com
@natureworks
Like us on Facebook
Connect with us on LinkedIn
www.natureworksllc.com
© 2014 NatureWorks
36