Working with Downstream Processors and Brand Owners to Advance a New - - PowerPoint PPT Presentation

Working with Downstream Processors and Brand Owners to Advance a New BioBased Materials

Atul Thakrar January 28, 2013

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• Green & Rapidly Growing VC-funded Chemistry Company

– Founded in late 2006 in Minnesota, USA on the notion of combining Levulinic Acid (LA) and Glycerol into ketals – Delivering new to the world materials, not green routes to existing molecules – Series C: Funded by SABIC/PNB/KV/MLSF/DSM in 2012

Who is Segetis

L-Ketals

HO OH O O

succinic acid

HO OH O

3-hydroxypropionic acid

OH O NH2 HO O

glutamic acid aspartic acid

OH HO O O NH2 HO OH OH

glycerol

O O HO

4-hydroxybutyrolactone itaconic acid

HO OH O O O O OH

levulinic acid

O O OH O HO

2,5-furandicacboxylic acid

OH OH OH OH OH

xylitol

OH OH OH OH OH OH

sorbitol

HO OH OH OH OH OH O O

glucaric acid

O O HO O OR

Top 12 US DOE renewable chemicals

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Future

Water Treatment: ~$3Bn

• Flocculants
• Reverse Osmosis Membranes

Auto/Industrial: ~$25Bn

• Interior Foams
• Coatings/Adhesives
• Plastics

Construction/Plastic: ~$15Bn

• Paints/Coatings
• Insulation
• Wire & Cable

Consumer: ~$23Bn

• Surfactants
• Superabsorbent Polymers
• Personal Care/Bedding

Plastics: ~$11Bn

• Construction
• Toys
• Medical

Current

Consumer: ~$1Bn

• Household Cleaners

Auto/Industrial: ~$2Bn

• Solvents
• Cleaners

Levulinic Ketal Platform Materials

>1,000 Compositions

Segetis Platform  Robust Opportunity Pipeline

Segetis Converts Renewable LA Feedstock to New, High-Value Chemicals

Cellulosic Biomass Levulinic Acid (LA) Sugar

From lab scale to commercial sales in 4 years

Family of Products

• Renewable feedstocks
• Diverse feedstocks
• Thermochemical

conversion uses known processes

• Materials that compete
• n performance, not just

green

• Markets open to change

O O R2 OR1 O

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Starting Checklist for Commercialization of New Chemicals

 Does the new chemical do anything useful?  Who needs that benefit?  How does the performance compare to

• ther alternatives?

Buyer Practical Economics Ability to supply Ability to sell

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Powerful and effective non-toxic solvents with low odor Broad Solvency Efficient Coupling Low, Tunable Volatility

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Excellent grease-cutting and polymer solvency Non-VOC, non-flammable, CARB LVP-exempt Stabilizes multi-component formulations Promotes wetting and cleaning

“This technology is a breakthrough that takes Method’s performance and sustainability to the next level,” said Adam Lowry, Method Co-Founder and Chief Greenskeeper. “We’re incredibly proud of this innovation because it solves one of the traditional problems in green cleaning — how do you clean effectively without dirty solvents? Instead of formulating around the problem as others must, Method delivers powerful solvency in our products through renewable alternatives.”

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method - an innovative producer of home cleaning products on shelves across the US

Method & Segetis Teamwork

European Union Restricted use Former workhorse phthalates essentially banned US & Canada Restricted use Japan Restricted use

Health concerns with phthalates

  Regulatory agencies have restricted use of phthalates  And the pressure is mounting

High Volume Plasticizers: Drive to Replace Phthalates

Consumers are demanding change



US on a path to a ban: “These [phthalate] assessments will inform EPA’s decision …potential control measures may include a ban….” -US EPA, FDA, & CPSC joint program EU taking steps to expand the phthalate ban

Toxic Moms: 12 Scary Chemicals in Women's Bodies …"plasticizer" compounds found in pregnant women's bodies….Phthalates have been linked to liver cancer and reduced sperm counts. CBS News 1/21/11

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Georgia Gulf (Axiall Corporation) & Segetis Teamwork

This is an exciting collaboration that combines Segetis' proprietary technology with Georgia Gulf’s vinyl compounding expertise to customize formulations that deliver unique performance profiles,” said William

• H. Doherty, vice president – vinyl

compounds at Georgia Gulf.

In Inpro’s Wall and Door Protection Products

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Starting Checklist for Commercialization of New Chemicals

 Does the new chemical do anything useful?  Who needs that benefit?  How does the performance compare to

• ther alternatives?

Buyer Practical Economics Ability to supply Ability to sell  How do you make the chemical at large scale?  Supply chain

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Building Production Experience & Capacity

0.25 Million lbs/yr Objectives:

• 1. Process development
• 2. Support market validation

Segetis (Pilot Scale) - 2009

3+ Million lbs/yr Objectives:

• 1. Demonstrate scale-up

utilizing existing assets

• 2. Supply strategic customers

Demonstration Plant - 2012 Next Stage – Commercial Plant

Securing Cost-Effective Levulinic Acid Feedstock

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• Existing production in China uses corn cobs
• Conversion from sugar being validated by Segetis
• Process for wood conversion piloted

Wide Range of Feedstock Options

Corn Cobs Sugar Wood Municipal Waste

Feedstock collection/handling Inefficient

 

Needs development Large Scale



Small



Needs development Validated conversion technology Documented



Concept Underway

Starting Checklist for Commercialization of New Chemicals

 Does the new chemical do anything useful?  Who needs that benefit?  How does the performance compare to

• ther alternatives?

Buyer Practical Economics Ability to supply Ability to sell  How do you make the chemical at large scale?  Supply chain  IP landscape  Regulatory clearance

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Product Clearance: Registration & Toxicology

• No Segetis materials were modeled to be persistent, bioaccumulative or

toxic

• First round of toxicology shows Segetis’ products are

– Non-toxic – Non-mutagenic – Not a skin sensitizer – Low ecological risk

• Second round of toxicology testing underway

Segetis solvents are US TSCA, listed with Canadian NDSL and REACH registered

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• In comparison to petro-based

alternatives: 1. Save 2 gallons of gasoline per gallon of Segetis product 2. Save 7 tons of CO2-equivalents per ton of Segetis product

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Segetis Materials Enhancing Sustainability Profile

3rd Party LCA modeled “field to product” by Boustead Consulting Ltd

Solid Patent Protection

7 non-US patents allowed/issued: 15 active PCT cases that will all be nationalized in the next 2 years: >15 patent families in the portfolio : > 35 total active patents : > 200

US patents allowed/ issued

US 8,053,468; US 8,026,378; US 8,084,635; US 8,178,701; US 8,188,030; US 8,318,814 16

Starting Checklist for Commercialization of New Chemicals

 Does the new chemical do anything useful?  Who needs that benefit?  How does the performance compare to

• ther alternatives?

Buyer Practical Economics Ability to supply Ability to sell  How do you make the chemical at large scale?  Supply chain  IP landscape  Regulatory clearance  Economies of scale to drive cost to produce  Competitive market dynamics

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Building from a Solid Foundation

• Translated market engagement to commercial successes
• Scaled products to commercial production facilities
• Gained regulatory clearance for products
• Created line of sight options for large-scale LA supply
• Broad IP protection
• New technologies in the pipeline

Practical Economics in progress: Time to grow through improvements in scale

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Key Lessons – New Materials Introduction

• Focus development in areas that require wholesale change
• Get early validation - choose strategic partner that can provide

feedback and turn into a purchase order.

• Appropriate balance in resources between technology and

market development

– Establish a customer pipeline to have big customers ready for economies of scale – Focus technology pipeline efforts on building IP, not commercialization, and be prepared to rapidly advance once the company gains momentum

• Creative business models
• Prepare to change/adjust rapidly …. but have focus!

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