Glycell TM Technology for cost effective sugar intermediates. 12 th Annual World Congress on Industrial Biotechnology July 2015

Transcription

1 Glycell TM Technology for cost effective sugar intermediates 12 th Annual World Congress on Industrial Biotechnology July 2015

2 FORWARD looking statements This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. Persons needing advice should consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor. Certain statements made in this presentation are forward-looking statements. These forward looking statements are not historical facts but rather are based on Leaf Resources current expectations, estimates and projections about the industry in which Leaf Resources operates, and its beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, seeks, estimates, guidance and similar expressions are intended to identify forward-looking statements. and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those risks or uncertainties inherent in the process of developing technology and in the endeavour of building a business around such products and services. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Leaf Resources, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Leaf Resources cautions shareholders and prospective shareholders not to place undue reliance on these forwardlooking statements, which reflect the view of Leaf Resources only as of the date of this presentation. The forwardlooking statements made in this presentation relate only to events as of the date on which the statements are made. Leaf Resources will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority. 1

3 GLYCELL TM CS highlights Glycell TM CS is a disruptive technology that can reshape the economics of the production of cellulosic sugars Glycell TM process delivers ~ 30% reduction in cellulosic sugar costs cf. NREL dilute acid; 60% with co products on a fully costed basis Glycell TM process produces clean sugars opening up multiple markets co-product values can alter economics dramatically Leaf Resources offer an advanced technology package to integrate the Glycell TM process to various downstream process 2

4 Leaf - a Biorefinery focus The supply of low cost high quality sugars from cellulosic feedstocks is a key unmet need in development of a sustainable high value green chemical industry. Leaf has technology that answers these needs. We are focused on providing answers to a number of biorefinery objectives including: Developing pre-treatment requirements based on the efficiency and quality of feedstock, and; Providing new effective technology for better conversion of biomass to intermediates including C6 & C5 sugars, functional lignin and glycerol; Our low cost hybrid-organosolv pretreatment chemistry is powered by glycerol.

5 Bio(mass) refining value chain Pretreatment efficacy vs cost effec2veness Enzyme Performance limited by Pretreatment Outcome Cost Limited by feedstock (sugars) New and improved technologies and processes to bring about advanced biobased materials

6 BIObased Chemicals Market Market growing by 20% pa exceeding $500 billion by Predicted - 22% of $4 trillion chemical market in long term 2&3 Dupont, Proctor and Gamble 25% of sales by 2020 Lower cost cellulosic sugars improve economics against petroleum based chemicals Virtually every petroleum based chemical can be replaced by biomass derived intermediates 1 European Forum for Industrial Biotechnology 2 USA Department of Agriculture 3 DeloiNe & Corelli 5

7 Raw Resources = Biomass 5 billion tons available Enough for $750 billion worth of cellulosic sugars 1 Special biomass crops are being developed for arid areas Glycell TM process has been tested on grassy feedstock and hardwood i.e. both ends of the spectrum Australia alone has enough biomass for million ton Biorefineries 2 1 Based on a value of $250 per tonne 2 ParraN and Associates & Correlli Consul2ng 6

8 Glycell CS Key objectives Process focus Key proposi*on and compe**ve advantage Cellulosic sugars Produce low cost cellulose at any scale Maximise cellulose conversion to cellulosic sugars Clean enriched streams Separate C5 & C6 sugar enriched streams Glycerol recovery Profound effect on cost of sugars 8

9 Biomass flexibility Palm Empty fruit bunch fibre Bagasse 11

10 Pilot Plant scale data Pilot scale data from Andritz facility Springfield, Ohio Production rates of 4-6 BDTPD dep. on biomass

11 Enzymatic efficacy % % 99.45% 94% 98.08% % 109% 103% 80.00% 80.31% 83% 60.00% 40.00% 20.00% 0.00% 6 hrs 6hrs 24 hrs 18 hrs 2% solids 10% solids 2% solids 10% solids Bagasse Eucalyptus Bagasse sample A2 from ; Eucalyptus sample A8 from The saccarification (digestibility) procedure measures the efficacy of a given pretreatment based on a maximum enzyme loading and is reported as a percentage of the theoretical mass yield. Cellulase enzyme cocktail used was Cellic CTec3 (Cellic CTec3 is a registered trademark of Novozymes) at 20 FPU/g cellulose at 2% & 10 % cellulose weight loading applied to all samples.

12 Fermentable sugars - 2l biostat testing Sugars support microbial growth with no inhibition Ferment 1 Ferment 2 Ferment 3 Organism P. holstii S. cerevisiae E. coli Media (2L) Tryptone 5g/L Tryptone 5g/L Tryptone 10g/L Yeast Extract 6g/L Yeast Extract 6g/L Yeast Extract 5g/L MgSO4.7H2O 1g/L MgSO4.7H2 O 1g/L NaCl 10g/L Leaf Glucose 44ml/ KH2PO4 5g/L KH2PO4 5g/L Solution L Leaf Glucose Solution 44ml/ L Leaf Glucose Solution 44ml/L Antifoam C 1ml/L Antifoam C 1ml/L Antifoam C 1ml/L ph Temperatur e 30 C 30 C 37 C Agitation 300rpm 300rpm 300rpm Air flow 4L/min 4L/min 4L/min Glucose Concentration (g/l) Time (hours) S. cerevisiae Optical Density (600nm) Glucose Conc (g/l) Optical Density (600nm) Glucose concentration (g/l) Glucose Concentration (g/l) Time (hours) P. holstii Time (hours) E. coli Optical Density (600nm) Optical Density (600nm) Glucose Conc (g/l) Optical Density (600nm) E. coli Glucose Conc (g/l) E. coli Optical Density (600nm)

13 Glycerol recovery - SMBC ARi simulated moving bed chromatography (SMBC): Pilot Testing at the ARi pilot facility.. Project development, supervision and engineering from lab to industrial scale implementation. ARI pilot study over 4 weeks confirms that >95% of the glycerol in the filtrate is recoverable by SMB chromatography at ca. 95% purity

14 Greenfield design case Glycell model vs Dilute acid model Common Class 5 estimate 367,200 tonnes (d.b.) p.a. at $66.10/dry tonne 60% debt funding at 8% over 10 years CapEx spend over 3 years and revenue commencing mid-year 3 Dilute acid model (NREL design report) Normalised to 80% cellulose to glucose efficiency Capital required for enzyme production removed and purchase of enzymes included in OpEx Independent modeling by

15 Greenfield design case excluding coproduct benefit 27.3% advantage of Glycell over normalised NREL model (net of ROI and CapEx) Represents a $0.082/kg saving

16 BUSINESS Model Licensing: Technology access fee (set on individual basis) Royalty per ton of sugar (% of $ sugar cost) Leaf will embrace a capital light strategy as appropriate Leverage existing demonstration plants JV s being looked at & will depend on each situation Strong base IP position across: Production of cellulose from biomass Production of sugars from biomass Hybritech Flexible production of pulp or cellulosic sugars 15

17 QUALITY MANAGEMENT suited to task Ken Richards Managing Director Alex Baker COO Dr Marc Sabourin EVP BD(Americas) Dr Les Eyde VP R&D Directors! 30 year track record in managing, growing and transi2oning high growth ASX and private companies! Over 20 years industry experience & leadership, science and technology Life science and industrial biotech including three listed companies! 29 years professional experience in research & development, innova2on, process engineering excellence and project execu2on including 25 yrs with Andritz! 25 years professional experience in research and development, industrial sugar chemistry & product development, AUT task leader for IEA task 39! Dr Jay Hetzel (Chairman), Charles Wilson & MaNhew Morgan 16

18 GLYCELL TM CS Recap Glycell TM CS is a disruptive technology that can reshape the economics of the production of cellulosic sugars Glycell TM process delivers ~ 30% reduction in cellulosic sugar costs cf. NREL dilute acid; 60% with co products on a fully costed basis Produces high yield cellulose with less degradation products; Excellent enzymatic conversion of cellulose to sugars. Glycell TM process produces clean sugars opening up multiple markets co-product values can alter economics dramatically 17

19 Leaf Resources Ltd (LER) Capital structure and shareholdings Ord Shares on Issue m Options (10c exercise) 5.25M Current Price $0.17 Market Cap $19.27M Top 20 Shareholders 54.0% Board & Management 25.4% Cash 1 Enterprise Value $1.8m $17.5M Source: ASX Trading Plaiorm, July Ground floor entry into a company with world class technology enabling fast growing mul:ple markets 1 Based on 4c for 31st December