The future is

BIOREFINING
Case Chempolis
Pasi Rousu, President Chempolis Asia-Pacific

OUR MISSION
We develop and deliver technologies capable of refining biomasses economically into high-quality products while minimizing environmental impacts and maximizing social benefits

In order to live sustainably on this planet, we need to make more efficient use of global resources. We are stepping up to the challenge! (CEO Esa Rousu, Chempolis Ltd.)

BUSINESS IDEA
Deliver formico biorefineries, which make Sustainable Results using NonWood* and Non-Food** biomasses

* Non-Wood biomasses are mostly residues from agriculture, or naturally available fast growing plants: straw, bagasse, grasses, bamboo etc. ** Non-Food biomasses are mostly residues from food production: straw, corn, cotton & cassava stalk, bagasse, empty fruit bunches, wood residues etc.

THE BIOREFINING TECHNOLOGY CORPORATION

Biorefinery Head quarters R&D Centre Land area 8,5 ha Floor area 14 000 m2

Chempolis is private independent medium sized company (est. 1995) who supplies sustainable globally patented biorefining technologies, which has been acknowledged by World Bank, DoE, UPM, BASF and many customers formicofib the non-wood fibre technology formicobio the cellulosic ethanol technology

3G formico BIOREFINERY
Non-Food and Non-Wood biomass

Papermaking and textile fibres

3G formico
biorefinery

from Cellulose

Glucose, Bioethanol, Biobutanol, Bioplactics

from Cellulose

Xylose, Biochemicals
from Hemicelluloses

Lignin

power plant* or gasification

Power Steam

Fertilizer
from Ash

*) NOTE: Integration of existing power plant in pulp, paper, sugar, palm oil, ethanol etc mill infra to lignin combustion

CHEMPOLISS PRODUCTS
formicofib technology for the production of non-wood
papermaking fibres (technology transfer)

formicobio technology for the production of non-food

cellulosic ethanol (technology transfer)

Deliver formico systems for biorefineries (cooking,

distillation and control systems)

Supply EPC-services for biorefinery projects (Customer buy

machinery and chemicals from local suppliers independently according to Chempolis specifications)

SUMMARY
3G formico biorefining technologies are the future, but available today
Sugar platform High conversion of products gives 25-40 % higher sales revenues than current or competing technologies Approx 20-50 % lower operation cost than current or competing technologies Energy self-sufficient low carbon technology Effluent free with minimal water use

Social, Environmental & Economical sustainability

BUSINESS DEV. PHASE 1

Establishment of Chempolis in 1995
Development of basic technology and learning the markets First entries to USA & Latin America, India and China 1995-1998 alone and with one engineering company

Start focusing on China 1998

First agreements 2000, which did not finally realize Lack of risk finance and environmental legislation was not development well No control of environmental legislation

Subsidiary in Shanghai in Finchi 2007

Well connected, supply chain Time for clean tech; realisation of first projects

LESSONS LEARNT IN ASIA

China is still big opportunity but...
Generally very diffucult as all big competitors are there Local companies with low cost structure competite with you Selling of technology/IPR is a challenge! Good time for clean tech

India will be big opportunity but...

Each province is different Lack of implementation

Shouth east Asia is an opportunity

Big opportunities and less competition Easier than China

LESSONS LEARNT IN ASIA

How to get good customers?
Asia is big opportunity, with 3 billion population How to find the target customer? How to find the decision maker and get paid?

Each country is different

Politics, religions, lucky numbers... Legistelation, business licenses, approvals, company set up etc.

ENTRY STRATEGY

BUSINESS DEV. PHASE 2

Thailand Q2/2010 Vietnam, Malaysia and India Q3/2010 Indonesia and Philippines Q2/2011 Venture capital search in Singapore & HK Q3/2011

Latin America Q3/2011 Eastern Europe 2012 Africa 2012

FINPROS ROLE
Business opportunity check; yes or no go Deeper market access study & entry strategy Meeting arrangements and follow up Legal entity and reqruiting Prestige & networking services Venture capital search

WHY CHEMPOLIS DECIDED WORKING WITH FINPRO?

Each market is different Located in key growing markets and areas Well connected professional network with Finnish goverment status Opening the customers and goverment doors, which very difficult to SMEs in Asia Easy, fast and cost efficient

The future is

BIOREFINING
Thank You! pasi.rousu@chempolis.com Mob + 66 80 818 4862