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NatureWorks LLC
BIO-BASED MATERIALS
February 22-23, 2005
Peter C. Clydesdale

peter_clydesdale@natureworksllc.com, OR
peter_clydesdale@natureworkspla.com
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NatureWorks LLC - a new vision, an
expanding start up, ...

NatureWorks was formed in 1997 with the
intent of creating a company to develop
more sustainable plastics from annually
renewable resources

This intent aims to meet the needs of today
without compromising the earths ability to
meet the needs of tomorrow
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with increasing resources
Since then weve grown to more than 200 people

The Blair, Nebraska polymer plant officially opened in
April 2002

300 (400) million pounds of PLA (LA) capacity is
available to serve the globe

A unique and extensive patent position has been built

3 primary commercial platforms - packaging, fibers
and consumer products - are in place today
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What is PLA?
PLA is a polymer made from lactic acid
Lactic acid is a natural product
It is found in the body, yogurt, & many other foods

Lactic acid is made from fermentable sugars
Sugars are found in plants
NW uses corn sugar (dextrose) today to make lactic acid

Sugars are made from CO
2
via photosynthesis
Photosynthesis involves carbon

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Is SUSTAINABILITY enough to drive
the adoption of bio-polymers?
Sustainability is a complicated topic
There is little agreement on what it means or how to
measure improvement
Many talk about it, only a few act on the talk
Although NW is involved with many innovative companies,
widespread brand adoption is critical long term
Brand adoption still depends on performance, cost, and the
availability of an efficient delivery / disposal infrastructure
The tide seems to be turning, though
Kyoto Protocol / Global warming
Rising oil prices
Pollution (white, air, water, other) concerns
Health & lifestyle issues
Corporate responsibility
AICHI Expo. (2005), Green Olympics (2008), Shanghai Expo. (2010)
Reduce Dependence on Petroleum
Reduce Environmental Footprint
Traditional raw material source

NatureWorks current
raw material source
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Renewable Resource Benefits
CO
2

+ +
NatureWorks
TM

PLA Mfg Process
+
Conventional Plastics
Mfg Process
Process Energy
+
Process Energy
Environmental Footprint Benefits
Measure all inputs and outputs in a
Life Cycle Analysis (LCA):
Raw materials, upstream and downstream
All products through manufacturing and product
use and disposal

Energy, CO
2
, other impacts on
environment
7146
2737
13030
2561
1852
4143
1820
-1500 -2800
-3000
-1000
1000
3000
5000
7000
9000
11000
13000
15000
Nylon 66 HIPS Cellophane* GPPS PP PET AM PLA Year 1 PLA Year 5 PLA Long
Term
PLA Net Green House Gas Emissions:
Cradle to Pellets
Lignocellulosic with Energy
Integration
PLA using fossil energy
56% less GHG
than PET
Fossil Resource Use &
GHG Emission Reductions
Example: PLA vs. PS Cups1
31% less fossil fuel use



32% fewer GHG emissions
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Up to Cup Production; Current Blair production data;
HIPS&GPPS; European Industry data, APME
Sustainable Materials Ideal
Renewable resource
Minimum environmental footprint
Small enough so the ecosystem can still balance
Completely recyclable
Carbon level
Material level
Safe ingredients
(both human and environment)
No persistent compounds
No negative impact on food supply
(enhance food and feed)
Scorecard
Does NatureWorks PLA Differ From
Traditional Plastics?
Renewable
Sustainable
Abundant
Carbohydrates
Iowa
Mid-west
Dirt
Bushels
Plant
Harvest
Fewer GH gases
Easy to biodegrade



Running out
Not sustainable
Scarce
Crude Oil
Iraq
Mid-east
Dinosaurs
Pump
Drill
Barrels
More GH gases
Difficult to biodegrade

vs.
vs.
vs.
vs.
vs.
vs.
vs.
vs.
vs.
vs.
vs.
vs.




US

PRC

JPN
Responsibility is the next big thing for
brands, and the ball is starting to roll
The landscape is rapidly changing for businesses

Consumers expect corporations to be more responsible

Consumers are looking for actions, not just words, when
it comes to corporate responsibility

Responsibility (or making a positive impact) is becoming
a necessary part of doing business in todays world
So, lets talk about responsibility ...
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Which brands will litter the planet,
and which will be responsible?
The same container that holds your soft
drink could become branded trash



The opportunity is for brands to start
actively (and publicly) working toward
eliminating the negative repercussions of
their commercial success
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Many audiences have
opinions & influence, and are
starting to force the issue
with influential brands ...
Brands adopting NatureWorks PLA
realize its an opportunity to show
that they are becoming more
responsible, too
So, lets talk about bio-based or
biodegradable materials ...
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What are the longer-term prospects?
Category growth is expected to exceed 13%
per annum over the next 3 years
Global demand is forecast at more than
338,000 tons by 2008
U.S. market value alone is worth more than
$490 million today
Market globally is being driven by:
Increase of fit-for-use applications - computer cases, H2O bottles, etc.
More competitive price structure - oPS vs oPLA film (U.S.)
Greater government / legislative traction - e.g. Taiwan, Korea, JPN
More unified biodegradation standards - MOU between Japan, EU, US
and China has led to more + global interactions
Increase in collaborative R&D efforts - HDT, PLA foam, PLA alloys, etc.
Higher levels of consumer education/wealth, & user adoption
Fredonia Group, December 2004; NW internal
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Types of biopolymers


Plant Based: Manufacturers:
Polylactic acid (PLA) NatureWorks LLC
Mitsui (Lacea)
Toyota
Polyhydroxyalkanoate
s
Procter & Gamble (Nodax), Metabolix
Plant-based starch Novamont (MaterBi)
Rodenburg Biopolymers (Solanyl)
Plantic Technologies (Plantic)
Oil Based: Manufacturers:
Polyesters BASF (Ecoflex)
Eastman (Eastar Bio) - now Novamont
Blends: Manufacturers:
Starch blends Novamont (MaterBi)
Source: IBAW
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Current Market Share
13
6
2
11
7
15
2
42
PLA
Novamont
National Starch
BASF
Eastman
Dupont
Solvay
Others
Frost & Sullivan, 2003
Biopolymers open up new options
for an old problem -- disposal
WHERE IT COMES FROM WHERE IT GOES

PET Bottles
Recycling
Trash/landfill
Incineration
NatureWorks PLA -
sugar
PET & PS
FOAM - oil
Product
NatureWorks PLA
Industrial compost
Recycling
Incineration
Hydrolysis
Trash/landfill

PS Foam
Trash/landfill
Incineration
So what are the road blocks...?
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Key Challenges

Poor experiences in the past with bio-
based materials
Starch / poly-olefin blends, inferior performance, etc.

Risks of trying something new
PLA a virtual drop in on PET and PS lines

Perception of higher costs (material,
switching, etc.)
Efficiencies are improving so that high oil prices - while
helpful - are not really required to make the sale
PLA density / down gauge advantages versus PET





Key Challenges (contd)
Physical recycling & disposal
Large volumes are needed to develop a dedicated
infrastructure, but some companies are finding solutions

Lots of talk, not much action
Governments need to move more from research to retail
Plenty of eco talk, little eco walk, lots of eco bullets

GM Issue
No GM can be found in PLA (3rd-party certification)
There is no advantage to having GM in PLA
A road to a sustainable future is better than no road at all

PLA is a significant step toward a
better future. It uses an annually renewable resource,
instead of petroleum, to make one of the worlds most
common materials, plastic.
PLA represents a significant step
change that consumers seem to desire.
-- PLA reduces petroleum dependency &
GHGs, and is a positive step toward more
sustainable manufacturing.
-- PLA has distinct disposal advantages
over comparable petroleum-based plastics.
-- Raw material can be replenished every
100 days instead of every 100 million years.
-- PLA represents an opportunity for
positive change at major brand owners.
--- NatureWorks is committed to continued
process improvement to enhance the
environmental profile of its operations and
products.
A product of fermentation and distillation,
PLA only requires a commercially
available source of plant sugar.
PLA does not contain any
genetic material.
-- Like other plastics, PLA is carbon
based. The ultimate carbon source
is corn, not crude oil.
-- PLA has been certified to be free
of any genetic material by
GeneScan Inc., recognized by both
government and NGOs as the
leading authority for testing food,
feed and raw materials.
-- If desired, customers can contract
directly with growers for an offset
amount of identity-preserved corn.
-- To succeed in the global market, a
large-scale, stable sugar source is
needed that allows PLA to be price
competitive today with PET, and
eventually, PS.
-- Corn is the least expensive and most
abundant source of commercially
available sugar in the world today.
-- Even at full global capacity, NW will
use less than .005 percent of the annual
U.S. corn crop.
So where is this thing headed...?
Biopolymers like NatureWorks PLA
can be points of inspiration and
differentiation to help brand
companies rethink material choices
in order to build new (and better)
brand attributes.
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NATURAL, SAFE, FRESH - made from nature, ideal for food packaging
END-OF-LIFE - corn-to-compost; burns cleaner, may be recycled
BEAUTIFUL - can be transparent like glass, or opaque like ceramic
DETAIL - can be easily and deeply embossed
TEXTURE - easy to twist and fold; stiff
PATINA - unique abrasion resistance
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Brands are starting to pay attention to
emotional attributes as much as they do
the physical ones
POP Banners / Posters
Your food
comes from
nature.
Now so
does your
container.
Brands are starting to hear the call ...
Let me win; if I cannot, let me
be brave in the attempt.
- Motto of the Special Olympics
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www.natureworkspla.com