Nano Crystalline Cellulose: A Canadian Adventure



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The Domtar-FPInnovations Joint Venture for Nano Crystalline Cellulose Nano Crystalline Cellulose: A Canadian Adventure September 2012 Rene Goguen, Vice-President Manufacturing

CelluForce Background information The Demonstration plant and team The process The product Applications development strategy September 2012

CelluForce Background information The Demonstration plant and team The process The product Applications development strategy September 2012

Background info Incorporated in August 2010 Head Office in Montréal QC 40 employees entirely dedicated to nanotechnology The result of a Joint-Venture agreement between 2 major players in the Forest Industry September 2012

Our Shareholders FP Innovations Leadership through innovation. A strengthening of the Canadian forest sector sglobal competitivenessthroughresearch, knowledge transfer and implementation 300 scientists, 550 employees through $95 million budget Domtar The largest integrated manufacturer and marketer of uncoated freesheet paperin NorthAmericaand the second largest in the world basedon production capacity Revenues of $5.9 billion CAD, 9000 employees 5

The Journey Build the world s first Demonstration plant for the precommercial production of NCC, $46 M investment in order to: Introduce a new wood-based nanomaterial Master the manufacturing process Develop business partners in several applications and sectors Create a significant new market Build / Licence commercial plants

Our Partners Federal( NRCan) -Via TT (PSDO): -Via PPGTP: Provincial (MRNF) $ 23,2 M $ 11,2 M $ 12,0 M $ 10,2 M 7

CelluForce Background information The Demonstration plant and team The process The product Applications development strategy September 2012

CelluForce - The team The Start-up team 9

The CelluForce demonstration plant Production capacity: 1 000 kg/day Processscaled-up fromfpinnovationspilot lab Construction managed by Domtar engineering Fast-track project due to funding requirements: 14 months from groundbreaking to completed process

Demonstration plant exterior 11

Sept 28 2010 :Relocation of underground services

Jan 2011: Foundations complete just before winter!

May 2 2011: Assembly of building structure

May 24 2011: Wood use in process area roof

May / June 2011: Cover picture Pulp and Paper Canada Magazine

September 30th, 2011: Ready for commissioning

Finished Building Interior 18

Finished Building Interior 19

Demonstration plant specifics 35,000 ft² building Separateareas for: Dry processing High acidconcentration 11 unit operations, 10 suppliers Highlyinstrumented Full DCS control, in-house programming Effluent spillcollection / neutralizationsystem Biogasgenerationsystem

CelluForce Background information The Demonstration plant and team The process The product Applications development strategy September 2012

CelluForce NCC process Dried pulp from Domtar Pulp preparation Reaction Filtration Drying& Packaging Dry NCC to customer Makeup acid Acid preparation Acid concentration Dilute Acid Recovery Biogas system Effluent treatment

Process specifics ProcessInputs: Bleached kraft pulp Mill services: Process Water Acid(93% H2SO4) Caustic Steam Electricity, air Processoutputs: Process effluent to mill treatment system Finished product 200/500 kg bags

CelluForce Background information The Demonstration plant and team The process The product Applications development strategy September 2012

A Canadian Development 1960s : Université de Montréal Dr R.Marchessault Discovery of NCC properties 1990s: McGill University Dr. Derek Gray and team Laboratory evaluations 2000s: FPInnovations-Dr. Richard Berry and team Continued laboratory evaluations Developed pilot lab process Scaled up process to Demo plant 2010: FPInnovations-Domtar Joint Venture = CelluForce

Origin of forest sector nanotechnology crystalline region microfibril : amorphous region acid hydrolysis H 2 SO 4 date Cliquez et modifiez le texte TEM image of cotton nanocrystals 26

By SEM Ajouter un titre

New products and process improvement with nanocrystalline cellulose Rheology Strength Magnetism Path Optical Properties Self Assembly High Surface Area 28

High reinforcement potential Density (g/cm 3 ) Tensile strength (MPa) Young s modulus (GPa) Elongation at break (%) NCC 1.5 10,000 150 6.7 SWCNT 1.2 30,000 1054 6 MWCNT 2.6 30,000 1000-1280 12.5 Carbon 1.7 4,000 230-240 1.4-1.8 Kevlar 29 1.44 2,800 183 4 Aramid 1.4 3,000-3,150 63-67 3.3-3.7 E-glass 2.5 2,000-3,500 70 2.5 S-glass 2.5 4,570 86 2.8 302 Stainless steel 7.75-8.05 1,280 210 Kraft softwood ~1.5 ~700 ~20 ~2-4 Cotton 1.5-1.6 287-800 5.5-12.6 ~7-8 Jute 1.3-1.45 393-773 13-26.5 1.16-1.5 Flax 1.50 345-1,100 27.6 2.7-3.2 29

Our Product NCC Crystalline typical dimensions: 100 nm long, 5 nm wide 30

Toxicitytesting Rat Acute Oral Toxicity Test No effects on survival or pathology Ajouter un titre LD50 > 2000 mg NCC/kg Rabbit Acute Dermal Irritation Test No signs of irritation Primary irritation index: 0 Rat Acute Inhalation Toxicity LD50 was observed to be > 0.25 mg NCC/L Skin Irritation Skin Sensitization 28-dRat Feeding Study Invitro test for Gene Mutations Invitro test for Chromosomal damage Invivo test for chromosomal damage

CelluForce Background information The Demonstration plant and team The process The product Applications development strategy September 2012

General Applications 33

Further examples of general applications Water soluble cellulosic polymers Cosmetics Paints and coatings Construction materials Detergents Oilfield industry Polymerization Engineering Paper making Textile industry Foodstuffs 34

Target Attributes Strength enhancement; weight reduction Increased productivity Improved barrier performance (e.g., gas barrier in liquid packaging) Rheology enhancement and control Improved reactivity

Our Mission We harness the power of nature s basic elements to transform your product performance 36

Segmentation: Mapping our Clients Orientation Externally Driven Self reliant Relationship Collaborative L/M H/L H/L Strategic alliance 1 2 3 Opportunistic 4 5 6 M/H H/M H/L Internally Driven 7 8 9 L/M L/M L/L 37

Current Sector Focus Coatings and paints Composites Films and Barrier Textiles Adhesives Nonwovens Rheology Modifier (e.g., oil muds, concrete) Rubber CelluForceInc.

Intellectual Property(IP) Shareholders strength Licence (FPI) IP development Collaboration: Customers, suppliers, FPI, Universities, ArboraNano, NanoQuébec Building a strong IP base 39

Strategic Vision Market-driven product development Sustainable applications based on NCC for: Enhanced performance Lower overall material costs To deliver short-and medium-term advantages to the market place CelluForce Inc. CONFIDENTIAL

Driving our future Together 41

CelluForce - The team The Management team Jean Moreau, President and CEO Richard Berry, VP and CTO René Goguen, VP Manufacturing Maryse Morin, Accounting and Administrative Manager Alain Richard, Demo plant manager Daniel Morisset, Demo plant coordinator Wadood Hamad, Principal scientist Jack Miller, Business development Greg Maloney, Business development Rod Badcock, Business development Raman Nayar, Business development 42