Transcript TransFerm + 2%-4% Additional Yield

Mascoma Corporation
A focus on learning and deployment
Bill Brady, President & CEO
April 2014
Mascoma Confidential
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Mascoma Advanced Bioconversion
- We are focused on commercializing our Consolidated Bioprocess (CBP) yeast products,
and Process Technologies that leverage the power of our CBP yeast products
- We believe that our CBP Technology will eventually drive all bioconversion of biomass to
petroleum replacements
- Through this process, We will redefine the enzyme delivery business
- We are driven by Innovation, Speed, and Collaborative Partnerships
Mascoma Confidential
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various cellulosic
1
Produce ethanol from various
biomass feedstock sources
sugar cane
corn
biomass feedstock
Strategically, this is how we are growing the company (1)
Today
ethanol
2
propanol
Produce products
beyond ethanol
advanced molecules
molecule
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Strategically, this is how we are growing the company (2)
Business
Segment
MGT
(Mascoma Grain
Technology)
Time to market
Value to
Capital Req’d Cust./Mascoma
now
low
good
later
high
great
“Making corn ethanol better”
Mascoma Brazil
“Addressing Brazil’s ethanol
expansion problem”
Americas
Region
Cellulosic
“$.50/gallon cost savings … addresses
fundamental enzyme cost problem”
Mascoma
Chemicals
“Bio IPA addresses the world C3 shortage issue”
Mascoma Confidential
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We Have Developed Several Products to Serve the Needs of our Target Markets
Business
Segment
Product(s)
The “Mascoma
Advantage”
MGT
(Mascoma Grain
Technology)
TransFerm Yeast
TransFerm
Yield + Yeast
50% enzyme
reduction
Enzyme
reduction plus
3% Yield Boost
Cane Boost
Yeast
C5E Process
Technology
2 – 5% Yield
boost from Cane
20% Yield boost
from bagasse C5
CBP5x / CBP56x
Yeasts
DP Yield+
Process
technology
$.30 - .50/gallon
savings
Increase
“dissolving pulp”
capacity plus C5
to ethanol
“bolt on”
cellulosic
conversion to
G1
infrastructure
Mascoma Brazil
Americas
Region
Cellulosic
G1/G2 Leverage
Process
Technology
Mascoma
Chemicals
CBP IPA Yeast
Low cost
conversion of
glucose/acetic
acid to
isopropanol
(IPA)
Mascoma Confidential
2 Billion Gallons Produced
20% Share of Market
Customers/Partners
in Development
6 Customer
Development Projects
Product in
Development
5
Our MGT Product Line Creates Significant Potential Value for Customers
TransFerm
TransFerm
Yield +
“MGT 1.2”
and Future
Generations
GA Enzyme Displacement
• Cost Savings
TransFerm + 2%-4% Additional Yield
• Improved Conversion Of Sugar; Advanced
Enzymes
TransFerm Yield + plus
Additional Yield
• Further Advancement In
Enzymes And Metabolism
Gross Incremental Value (¢/gallon)
Key Assumption: Ethanol Price of $2.50/gal
?-?
$0.08-0.10
16
14
12
$0.04-0.06
8¢ - 10¢
10
8
Under
Development
6
4
$0.01-0.02
2
1¢ - 2¢
0
TransFerm
Transferm
Future Gen
Yield +
For a Typical 100 Million Gallon/Year Ethanol Plant –
WITH NO CAPITAL REQUIRED:
•
TransFerm Could Create ~$1MM - $2MM of Incremental Annual Value
•
Transferm Yield + Could Create ~$8MM – $10MM of Incremental Annual Value
Mascoma Confidential
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The Business Concept : CaneBoost products produce large volumes of low cost ethanol
Industry wide impact of Mascoma products on ethanol production in Brazil
Marginal Cost of additional ethanol prior to fees ($/gal)
Additional Ethanol Produced
(MM m3/annum)
1.50
15.0
Marginal production cost
6.25
Volume impact
1.25
12.5
Average production cost of EtOH in Brazil1 = 1.03
1.00
10.0
6.25
7.5
0.75
0.50
5.0
0.25
2.5
0.75
(~150 m gals)
0.50
0.0
0.0
1.0
1.1
Existing Bagasse
Energy
Cane
5.0
•
1Valdez,
•
2Estimated
C (2011), USDA, Brazil’s Ethanol Industry looking forward, http://www.ers.usda.gov/media/126865/bio02.pdf
capex of between $1.5 and $2.5/annual gallon additional ethanol capacity
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Bio-IPA competitive on the existing supply curve
Benchmarking against the supply curve assuming various raw
material sources1,2,3,4.
IPA cash production cost
($/metric tonne)
IPA demand
(1800 ktonne)
1200
1000
800
IPA cash production cost from corn ($747)
600
400
IPA cash production cost from bagasse xylose ($210)
200
0.00
0
500
1000
1500
2000
Cumulative production (‘000 metric tonnes)
PDH (integrated)
Naphtha cracker (integrated)
Refinery Splitter (integrated)
Un-integrated producer
1 Volumes
estimated from: Burridgge, E. (2009) ICIS, Chemical Profile: IsoPropanol:
http://www.icis.com/Articles/2009/11/02/9259817/chemical-profile-isopropanol.html. 2 Cash cost of production estimated assuming a 95%
yield of IPA from propylene and a cash cost of $200/ton for other operating expenses. 3 Each individual companies facilites were
investigated to determine whether they were vertically integrated and which feedstocks they used to produce propylene.
4 if the IPA production was not vertically integrated with the propylene production it was assumed that market price was paid for propylene
(this is currently $1350 per ton), for the purpose of these calculations we selected $1300 per metric tonne.
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