Global business from research in the BioRefine and Water areas. Dr. Heidi Fagerholm Chief Technology Officer
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1 Global business from research in the BioRefine and Water areas Dr. Heidi Fagerholm Chief Technology Officer November 26 th, 2012
2 Our purpose: Reducing the gap between global water demand and supply 2
3 A global two billion euro chemicals company Sustainable extraction of natural resources Oil & Mining: EUR 8 billion market Role of water continuously rising Efficient and advanced processing of biomasses Water and energy efficiency Clean water cities, industries, water systems Paper: EUR 10 billion market Increased recycling, new products, emerging markets Municipal & Industrial: EUR 10 billion market Rising environmental regulation/awareness 3
4 Water Technology in Kemira Utilisation of ferrosulfates New aluminium products Renewable rawmaterials Research related to customers water Sludge processes Development of comprehensive solutions Optimization of water chemicals New technologies -removal of oxygen -adsorbents -disinfection & oxidation Water Reuse and Membrane technologies Resource Efficient Biomass Utilisation Sustainable Water Chemistry PRODUCT- & PROCESS DEVELOPMENT CUSTOMER ORIENTATION COMPREHENSIVE SOLOUTIONS CENTER OF WATER EFFICIENCY EXCELLENCE 4
5 Kemira s Product Portfolio Coagulants Polymers Sizing and strengths Electrolysis Peroxygens Biocides Defoamers Dispersants and antiscalants Corrosion inhibitors Organic acids 5
6 Research & Development is a critical enabler for organic growth and further differentiation Targeting sustainable 2-3% annual revenue contribution In 2011, R&D results generated EUR 40 million additional revenue from: Novel Antiscalants Next generation Biocides Desalination chemicals Key competence area: Water quality and quantity management. 330 experts working in R&D Strong IP portfolio: 330 patent families, 1350 patents Global R&D hosts four centers: Espoo (FIN), Atlanta (US), Shanghai (China), Sao Paulo (BRZ) 6
7 Our R&D Focus Focus on wet-end and biomass value chain based offerings. Products and applications for unconventional sources of oil, gas and mining. Chemicals for bioprocesses, membrane technology and water reuse. Manufacturing technology improvement and analytics. Atlanta, GA Sao Paolo Espoo Shanghai 7
8 Water Reuse Objectives New chemicals to enhance desalination for sea, brackish and waste water New technology and products for wastewater reuse applications Enhance water recycling by chemistry and intelligent remote diagnostics in water intensive industries Drivers Water scarcity deepens in the world Water supply costs increase Contents Water reuse chemistry, including removal of microconstituents, antiscaling, disinfection, nutrient recycling Chemistry for membrane applications 8
9 Resource Efficient Biomass Utilization Objectives Develop technological concepts for biomass processing to improve raw material, water and energy efficiency Study utilization of water chemistry and chemicals to enhance biomass utilization Drivers Government support for environmentally friendly technologies Improvements in bioprocess technologies make them competitive against conventional processes Green values and sustainability valued by customers Content New chemistry concepts: to enhance biomass preservation to enhance biomass based production for own production processes 9
10 Sustainable Water Chemistry Objectives Developing a technology base for sustainable business Creating profitable new business through bio-based, biodegradable and recycle-based products & concepts Drivers Changes in customer needs & regulatory environment Approaching oil scarcity & relatively higher price Competitive dynamics in certain raw materials Content Towards sustainable development Projects for more sustainable chemistries for polymer synthesis Projects for applications of sustainable polymers Projects for sustainable application concepts Projects for sustainable value addition on recycled raw material value chains 10
11 Contents of Forest and SWEET programmes Biorefinery Biofuel Biogas SWEET Water intensive biorefineries Forest industry Biorefineries Biopower plant Waste water Pulp mill Process water Sludge Biochemicals Electricity, heat Paper/ Board/ Tissue Raw water Biochemicals Intelligent controlling systems Green chemistry WQQM (Water Quantity and Quality management) Deposit control Wastewater treatment Fresh water etc 11
12 Kemira s focus in Biorefinery Raw material/ interest Knowhow /products 12
13 Kemira s participation in BioRefine Programme / 4 PROJECTS 1. REBU Water use in bioprocesses 2. Bioprocesses in Resource efficient utilisation of biomass 3. REBU Biofuels stream in Resource Efficient Biomass Utilisation 4. Recovery of organic acids from biomass Heidi Fagerholm / R&D and Technology 11/26/
14 Biofuels: Biomass Utilization Value Chains e.g. Algae Biogas production Biodiesel production CO 2 Light O 2 Nutrients (Waste) water Algae cultivation Biomass 0,2 % Water reuse Sludge separation Bio-sludge > 2 % Dewatering Biomass Bioethanol production Biochemicals production Nutrient recycling Animal feed Biogas reactors Yield improvement Reactor efficiency improvement Improvement in the purity of the gas Stability of the process improvement Nutraceuticals Algae separation experiments Coagulation / flocculation Online quality controls 14
15 Sustainable chemistry Recovery of organic acids Compound Raw materials World demand from dilute water solutions 1/2 Main targets in project To make the biomass based chemical production sustainable and economically feasible FORMIC ACID ACETIC ACID (methanol) carbon monoxide water methanol carbon monoxide (kt) To utilize side streams for recovery of organic acids Development of a feasible recovery process for organic carboxylic acids from dilute water solutions Development of fermentation process for propionic acid with recovery process Biological processes are often challenging for production of specific products in high concentrations PROPIONIC ACID ethylene carbon monoxide hydrogen oxygen 310 Component Pine Birch Lignin Aliphatic carboxylic acids Formic acid 6 4 Acetic acid 4 8 Glycolic acid 2 2 Lactic acid Hydroxybutanoic acid 1 5 3,4-Dideoxypentonic acid Deoxypentonic acid 1 1 Xyloisosaccharinic acid <1 3 Glucoisosaccharinic acid 7 3 Others 2 1 Other organics 6 11 Inorganics Heidi Fagerholm / R&D and Technology 11/26/
16 Sustainable chemistry Recovery of organic acids from dilute water solutions 2/2 Best achievements: Development of technology concept for recovery of formic acid from dilute water streams A successful proof of concept for fermentation of propionic acid with recovery process Increase the efficiency of fermentation processes by improved yield and biomass separation with tested chemicals in industrial scale 16
17 Biogas Enhancement Anaerobic Digestion 1/2 Key drivers Global need for sustainable biofuels from renewable sources Biogas production is increasing strongly Organic waste is not allowed to landfill in EU in future Feasibility for Kemira Production of Biogas by anaerobic digestion is highly water-intensive Strong position in iron coagulants Other chemicals cross selling fit very well with existing product portfolio. Heidi Fagerholm / R&D and Technology 11/26/
18 Biogas Enhancement Anaerobic Digestion 2/2 Achievements & Highlights Construction of lab facilities for Kemira and VTT Networking with several partners; e.g. Jyväskylä University, Hämeenlinna University of Applied Sciences (HAMK), Linköping University, biogas producers etc. Proof of BDP concept for industrial and agricultural biogas processes Fe coagulant is part of the patented BDP concept which Kemira develops for boosting biogas process 18
19 Enhancement of Bioethanol Production Feasibility for Kemira Development of products especially for sugar cane and lignocellulosic ethanol processes. The enhancement can be achieved e.g., by effective foam control, non-antibiotic contamination control, increasing enzymatic hydrolysis of lignocellulosic biomass. Achievements & Highlights Contamination control currently in large scale industrial trial in Brazil Antifoam industrial trial is expected in near future in US. VTT as research partner. 19
20 Lessons learned Broad competencies, knowledge & resources enable multidisciplinary approach Companies need research partners even in the future Commercialization of emerging biotechnologies remains a challenge (risks relating to whole value chain) Only economically competitive new sustainable technologies and chemistries will survive 20
21 THANK YOU! 21
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