Lignin in the Future

1. Lignin in the Future Gaps in the Path Forward H.T. DelliColli Ph.D. Principal R-Theta Consulting LLC

2. Objective • The development of a commercially viable technology based on unsulfonated lignin has, to date, been unsuccessful. • Reasons for this lie in the basic paradigms used by the R&D, Business Development and Marketing elements within the lignin community and the potential users of this technology • It is the purpose of this presentation to identify and delineate these issues and hold them up for discussion.

3. A Few FactsThe Reality of the Lignin World • Approximately 50 Million metric tons of lignin are produced annually by the world’s pulp mills and biorefineries • 1.1 million metric tons of lignin are sold and used as sulfonated lignin • < 10,000 metric tons of unsulfonated lignin are sold annually • In other words, 2.2% of the available lignin is converted to “items of commerce” • Why?

4. Some Somewhat Disturbing Facts….which deserve examination! • 67 yearselapsed between the first powered flight by the Wright brothers and the first lunar landing ( is lignin chemistry more difficult than rocket science?) • 155 years have elapsed since Drake’s first oil well in Pennsylvania • 174 years have elapsed since the “discovery” of lignin and todays commercial utilization of less than 2% of available material • WHY?

5. There are significant barriers to the commercialization of unsulfonated lignin • There are major gaps amongst the various components within the lignin community • These need to be identified and dealt with

6. Some Reasons for our Failures • Over reliance on the pulp and paper industry for commercialization • Successful early application of lignosulfonates • Commercialization of lignosulfonates at costs well below their performance driven or real value • Unfortunate tie-ins to current lignin applications • Market research…Too little – Too late – and not deep or strategic enough • Failure to treat lignin as a discrete chemical feed stock

7. Reasons for the Current Status of Lignin in the Marketplace • Dilusional economics and wishful thinking • Lack of parallelism with the development of coal and petroleum based chemicals • Failure to marry chemistry and chemical engineering • Paucity of “Chemical Horse Sense” within the biorefinery community • Failure to treat lignin as a chemical feedstock

8. Reasons for the Current Status of Lignin in the Marketplace • Lack of a clear and coherent understanding of what lignin is • Too many “high school science projects” • Lack of adequate funding • Excessive government regulation • Too many “lignin experts as a function of available funding”

9. Current Lignin Applications

10. More Reasons • Lack of a clear and coherent understanding of what lignin is based on who is asking the question • Too many papers, texts, and presentations beginning with the statement “lignin has a complex structure and is highly variable” • Failure to marry the chemistry and chemical engineering related to lignin production

11. A Definition to Move Forward With • Lignin is a biobased strongly associative molecular agglomerate which can be chemically and/or physically derivatized to produce polyelectrolytes and a multitude of useful chemical substances…….when treated with the respect due a chemical feedstock

12. Even More Reasons • Lack of parallels with the development of coal and petroleum based chemical products (Have we learned from experience?) • Failure to marry chemistry with chemical engineering for product manufacture (Javelins and shot putters!) • Failure to treat lignin as a discrete chemical feedstock

13. Biomass Petroleum Coal Black Liquor Coal Tar Distillate/Residue Lignin Filter Cake Separation Isolation Purification Modification Separation Isolation Purification Modification ??

14. Still More Reasons • Incomplete/inaccurate information and ignoring fundamentals (technical issues) • Paucity of “chemical horse sense” within the biorefinery community. • Lack of strategic thinking • Reliance on out-dated information • Excessive regulation at all levels

15. A Bit of Advice • Reports alone are not enough! • Concrete examples improve the chances of finding industry support with potential for successful commercialization. • Include interaction with your IP/licensing function and develop a reasonable policy for technology transfer.