GUA YULE (WHY -U-LEE); NOUN A woody desert shrub native to northern - - PowerPoint PPT Presentation

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GUA YULE (WHY -U-LEE); NOUN A woody desert shrub native to northern - - PowerPoint PPT Presentation

GUA YULE (WHY -U-LEE); NOUN A woody desert shrub native to northern Mexico and the southwestern United States, primarily T exas. Natural rubber can be extracted from the plants branches, bark and roots. The Case for Guayule - The


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SLIDE 1

GUA YULE (WHY

  • U-LEE); NOUN

A woody desert shrub native to northern Mexico and the southwestern United States, primarily T

  • exas. Natural rubber can

be extracted from the plant’s branches, bark and roots.

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SLIDE 2

The Case for Guayule - The Rubber-Centric View

  • 2015 Natural Rubber Production

Global = 12,300,000 MT Asia-Pacific = 11,300,000 MT US = 0

  • 2015 Natural Rubber Consumption

US = 1,700,000 MT  ~ 70% used for tires

Natural Rubber: 28%

Textile: 3% Chemical: 5% Steel: 15% Synthetic Rubber: 23% Filler: 26%

  • Tire Industry – Raw Material Use

Asia 8,747 93% Africa 482 5%

  • S. America

180 2% TOTAL 9,704 /1000ha % Total Production

Production by Region

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SLIDE 3

Overview: Natural Rubber Today

500% fluctuation in 5-years 100% increase in 10-months

  • Labor Rates
  • Competitive Crops
  • Supply-Demand Balance
  • Speculation
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SLIDE 4

Natural Rubber – The Situation

The single most important raw material for tire manufacturing is:

  • Biologically single sourced  A single species (Hevea Brasiliensis) supplies 100% of NR

 Clonal mono-cultures  Disease issues  Biodiversity

  • Geographically concentrated  93% of global supply from SE Asia

 Rapidly increasing labor costs  Competition with low-labor alternative crops (palm oil)  Climate change risk  Geo-Political issues / Political instability  Supply-demand imbalance as China/India demand grows

  • A Market Traded commodity subject to speculation and price-volatility

Fortunately …. Alternatives Exist

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SLIDE 5

Long Term Vision for Natural Rubber Supply – Biologically Diversified

Hevea

(Hevea brasiliensis)

Guayule

(Parthenium argentatum)

Sustainable

  • Biologically Diversified
  • Geographically Diversified

Russian Dandelion

(Taraxacum kok-saghyz)

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SLIDE 6

Hevea Tropical Climates Guayule Arid Climates Russian Dandelion Temperate Climates

Long Term Vision for Natural Rubber Supply – Geographically Diversified Sustainable

  • Biologically Diversified
  • Geographically Diversified
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SLIDE 7

Guayule History – 1900’s

  • Wild stands of guayule harvested.
  • 20 extraction plants by 1910.
  • 10,000 t of guayule rubber exported to US

in 1910 (24% of total import).

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SLIDE 8

Guayule History – 1920’s-1940’s 1920’s

  • Intercontinental Rubber Company – Rockefeller
  • Farms in US 7,500 acres.

1940’s

  • US had 30,000 acres of guayule under cultivation

by the end of the war. This was destroyed due to confidence that synthetic rubber would fully Replace natural rubber.

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SLIDE 9

Guayule History – 1980’s

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SLIDE 10

Bridgestone Approach to Guayule Rubber

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SLIDE 11

BRIDGESTONE CORPORATION

is the world’s largest tire and rubber company, operating in more than 150 countries around the globe

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SLIDE 12

Bridgestone Approach to Guayule Rubber

Bridgestone Biorubber Process Research Center (Mesa, AZ) Bridgestone Agro Operations Research Farm (Eloy , AZ)

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SLIDE 13

Agriculture Program and Associated Challenges

Goal

To create a crop that can effectively integrate into and compete within the existing agricultural economy

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SLIDE 14

Process & Rubber Product Optimization

We must balance technical needs, process complexity , up-time capability and investment to deliver a cost-competitive product

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SLIDE 15

Bio-Rubber Process Research Center - Site Aerial View

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SLIDE 16

Adopting a Bio-Refinery Approach

  • The process creates three products: rubber, resin and bagasse
  • Potential uses for additional products include:
  • Energy
  • Higher value commodity product (liquid fuels through pyrolysis, fermentation, other biochemical

processes)

  • High value product for tire industry (fillers, bio-monomers, compounding chemicals)
  • Consumer products (composite building materials)

HARVESTED

Field Dried Shrub (15% water) 100%

HARVESTED & DEFOLIATED

Defoliated Shrub 92%

Rubber = 5.5% Resin = 6.5% Water = 15% Bagasse = 73%

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SLIDE 17

Envisioning a New Domestic Industry

Agriculture:

Direct Seed 2 years Cutting harvest 1 2 years Cutting harvest 2 2 years Final harvest

Process: Products:

Bagasse 3.65 Million MT/yr Resin Rubber

  • Biomass with 9.5% Rubber (Dry

Weight Basis)

  • 2+2+2 cropping system
  • 10 MT Biomass per cutting (15%

moisture)

  • Acquisition cost < $153/MT
  • 487,000 acres harvested annually
  • $149 M annual farm revenue
  • 10 Factories (AZ, TX, NM, CA)

 1,390 MT/day processing rate  350 annual operating days  487,000 MT/yr biomass input

  • Tires
  • 440,000 MT/yr
  • $1.4B USD Revenue
  • 25% of US Demand
  • 285,000 MT/yr
  • $0.13 - $0.65 B

USD Revenue

Per Factory

  • 250 – 400 M gallons

ethanol + RIN’s

  • $0.9 - $1.4 B USD

Revenue

A $3.5+ Billion USD Industry at 25% scale

(domestic rubber basis)

  • $0.6 B USD Revenue
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SLIDE 18

Bridgestone – October 1st 2015

“FROM SEED TO TREAD: BRIDGESTONE REVEALS FIRST TIRES MADE ENTIRELY OF NATURAL RUBBER COMPONENTS FROM COMPANY’S GUAYULE RESEARCH OPERATIONS”

The Bridgestone Group will continue its research activities with guayule and various other raw materials with the aim of achieving its long-term environmental vision of shifting towards 100 percent sustainable materials in tires by 2050.

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SLIDE 19