Crossing the Chasm to Commercialization
Strategic Partnerships
2016 BIO Latin America Conference
Sao Paulo, Brazil
October 27th, 2016
We Live in a Different World…
Health &
Wellness
Profitability
It’s no longer a
choice; we must
achieve all three
Sustainability
Challenging for “green” technologies
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S2G Vision…
Sugar-free
sweetener for
healthy snacks
and foods
Sustainable raw
materials for
packaging and
products
High value-add
for biorefinery
C5 sugars
Profitable
projects
Partnerships are important to cross
the chasm to commercial projects
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S2G Biochemicals Inc.
Founded in 2009
HO - Vancouver, Canada
Privately held
15 full-time/contract employees
Proprietary sugar conversion
technology
 Validated technology at pilot and
commercial scales





Cost-effective and
economical conversion
technology for biochemicals
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Co-production of Xylitol & Glycol
Non-food C5 sugars
from biomass
Conditioning
• Remove
contaminants from
crude sugar liquors
or glycerol
Waste glycerol from
biomass (optional)
Hydrogen
Catalytic
Hydrotreating
• Converts sugar to
xylitol & mix of
biochemical glycols
Product
Separations
• Production of
purified end
products.
• Drop in
petrochemical
replacements
Co-production of Xylitol
and Bio-glycols
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S2G Xylitol & Bio-Glycol Process
 Breakthrough technology
 Co-production of xylitol &
bio-glycols
 Sustainable – profitable,
carbon efficient, healthy.
 Proven at pilot and commercial
scale
 Value-add conversion process
for cellulosic sugars
• 4-year development
program
• $10+ million investment
• Developed in partnership
with Mondelēz International
• Patent pending & ready for
commercialization
 US commercial project in
development
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Competitive Advantages
Feedstock
Yield
Coproducts
• Sugars from biomass residues
• Low cost – available sugars
• Unique conditioning processes
• Highest xylitol recovery
• Highest carbon yield - glycol
• Product mix can be adjusted
• Biochemical glycols
• Maximizes product yield from biomass
• Additional revenue and margin
Broad patent protection filed
S2G has exclusive worldwide rights
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Value Add – C5 Sugars
C5
Liquors
•Xylose
•Arabinose
•Glucose
•Mannose
•Plus lignin,
ash, etc.
Xylitol
• $3,000+/MT
• 140,000 MT/yr
• $0.6 B/yr
Superior to
Propylene
Glycol
• Avg. $1,750/MT
• 2,000,000 MT/yr
• $4 B/yr
Ethylene
Glycol
• Avg. $1,000/MT
• 15,000,000 MT/yr
• $25 B/yr
Ferment
• Competes with C6 sugars
• Lower yield/higher cost
• Value is capped
•$1500/MT
Sorbitol •2,200,000 MT/yr
•$4 B/yr
… or
burn
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Commercial Plants
Large-scale, profitable projects
•
•
•
•
•
10,000  100,000+ MT/yr of C5 sugars
$20 million  $200+ million revenue
33+% margin
25+% unlevered margin
$50 million  $300 million capital
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Strategy
Attract Strategic Partners & Investment
 Obtain off-take for products
 Secure feedstock supply
 Build scalable first commercial plant
– Leverage existing assets
 License/build follow-on facilities
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Strategic Partnerships
 Global snack-food
partner
 Off-take partner
 Engineering partner
 Specialty US chemical
producer/operating
partner
 Existing infrastructure
to leverage
Secure Supply & Offtake
 C5 Sugar Sources:
 Pulp mills
 Cellulosic Ethanol Plants
 Biorefineries
 Several NA existing sources identified
 Feedstock supply commitments in progress
 Xylitol offtake – Mondelēz
 Glycol offtake – Local bio glycol market
Scalable First Commercial Plant:
Project “BlueBelle”
 Pennakem Site Memphis, TN, USA
 Existing
infrastructure
 Site of July 2016
commercial campaign
 Leverage chemical
process familiarity
 Central mid-west
location
Timeline
2016
• Project
Development
2017
• Engineering
• Demonstration
2018
• Construction of
1st Plant
2019
• Startup
Phase 1
• Expansion
2020
• Startup
Phase 2
• Project
Development
2nd Plant
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Questions?
Kent Smith, P.Eng.
Director, Projects
[email protected]
S2G Biochemicals Inc.
Vancouver, BC CANADA
www.s2gbiochem.com
[email protected]
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