Life begins at forty (thousand kilometers!) Innovative Agricultural - PowerPoint PPT Presentation

Life begins at forty (thousand kilometers!) Innovative Agricultural and Industrial Tire Development 3 rd – 4 th December 2015 Chris Twigg

>> The ‘Black Bear Team’, who we are, what we do and where we’re heading >> Environmental benefits of using Black Bear carbon black >> Deep dive into our technical value proposition 1

PASSIONATE PEOPLE THAT CHOOSE FOR BIG IMPACT “In fact we love carbon black so much, you better hope you don’t sit next to one of us at a dinner party…” 2

What we do.. “We choose to change the game by creating a better product in a sustainable way” From depleting our world… … to a Circular Economy 3

We asked ourselves.. “Does life actually end or begin at forty (thousand kilometers?)” At Black Bear we harvest, re-design/upcycle and re-fashion the high quality furnace carbon blacks hidden away in end-of-life tires 4

Where we are and where we’re heading.. Ongoing Q2 2016 2014 –2015 2013 –2015 International 2011-2013 R&D Successes 2010 DGC goes Live! Financial/Investment/ Roll-out R&D successes in Specialty Markets JV Successes Black Bear Founded rubber Markets Company 2011: Chris Pieter ter Kuile, Product First Black Bear Target 10 – 20 founded: Twigg joins as Martijn Lopes development in line goes live: additional Black partner Cardozo (CEO), specialty market Bear lines till Jan Jonkman Nederweert, and Joost segments: 2020 2011 – 2013: Netherlands Ronald Verberne Raimond join as R&D activities - Coatings producing 4.500 partners leading to tons/y carbon - Inks proven process Joint venture black - Polymers and rubber with Kargro products “Dutch Green Carbon (DGC)” DGC – on track established progress with first plant 5

Black Bear developed breakthrough technology to produce ‘green’, high quality carbon blacks Black Bear is able to Oil = ‘upcycle’ carbon black, oil and gas from waste tires… Gas Carbon Black … at high quality for many applications Coatings Inks Plastics & Rubbers Tires 6

Demand in carbon black market is diversified and BlackBear will compete in all segments Global Carbon Black market Specialties 1,2 Mton Coatings, Inks, Polymers, etc Technical Rubbers Targeting 3,6 Mton demanding dynamic applications Tires Improved 6,9 Mton performance ~12 Mton 7 Source: The Freedonia Group, Inc.

Given the vast quantities of waste tires globally, hundreds of regional lines can be built Western European feedstock market 100% = 2.850 ktons* To upcycle all tires in Europe would 150 require almost 200 200 lines production lines 1.100 Black Bear’s first ktons plant requires ~ 0,5% 2.850 of Western 1.100 European feedstock To upcycle all tires 500 globally would Land Incine- All Granulate Re-use require around 750 fill ration tires production production lines *After removal of steel Source: European Tire and Rubber Manufacturer’s Association, estimates 8

>> The ‘Black Bear Team’, who we are, what we do and where we’re heading >> Environmental benefits of using Black Bear carbon black >> Deep dive into our technical value proposition 9

CO 2 SAVINGS WORTH 1 MILLION TREES 10

Currently, production of carbon black causes severe environmental damages One ton of carbon black requires around • 2.000 to 2.500 liters of crude oil* Worldwide, approximately 12 mln tons of • carbon black is produced each year, causing emissions of 35 - 40 mln ton CO₂ Approximately 60% of carbon black is used • in tires Worldwide about 1 - 1,5 bln waste tires • are dumped, landfilled or burned , with them ~4,5 mln tons of carbon black is wasted into the environment *Currently under investigation as we learn that much higher amounts of crude oil or gas are often required to produce many specialty pigment grades 11

Re-using waste tires provides tremendous positive environmental impact Save 2.000 to 2.500 liters of crude • oil* per ton carbon black Save 5 tons CO₂ per ton carbon black • Produce green energy • Reduce air pollution by around 80% • (e.g. dust, CO, SO₂, NO₂, VOCs) With one BBC production line we put > 15 kton waste tires to valuable use and save more CO₂ than 1 million trees consume 12 *Currently under investigation as we learn that much higher amounts of crude oil or gas are often required to produce many specialty pigment grades

Recycling tires into carbon black strongly reduces CO₂ emissions and provides net energy A plant of 11 ktons feedstock recovers 4,5 CO₂ emission* CO₂ ton kton carbon black and (per ton carbon black) saves 21,6 ktons CO₂ 5 3,2 Energy production: 5 ktons high calorific oil & 2,5 6MW green electricity Reduction The CO 2 benefits can be 4,8 tons capitalized in various ways: 0 furnace • Sale of CO 2 credits BBC black BAT** • Sale of green energy; steam, gas or electricity -1,6 -2,5 * Source : Life Cycle Assessment by partners for innovation 2014 ** BAT: Best Available Technology 13

In addition, Black Bear’s carbon black has huge other positive environmental impacts Comparison of Environmental Impact – Index* Competing Furnace Carbon Black 100 -33 BBC: Total Impact BBC: Particulate matter 2 formation BBC: Fossil Depletion -29 15 BBC: Human Toxicity * Source : Life Cycle Assessment by partners for innovation 2014 14

Detailed Life Cycle Assessment (comparison vs. virgin carbon black ‘ furnace’ process) Impact Category Unit/ton ConventionalCarbon BlackBear Carbon Black Black Process Process Total impact Pt 416 -137 Climate change kg CO2 eq 3180 -1650 Human toxicity kg 1,4-DB eq 351 54 Ionising radiation kBq U235 eq 356 -102 Terrestrial acidification kg SO2 eq 24 0.3 Photochemical oxidant function kg NMVOC 18 0.6 Source: Particulate matter formation kg PM10 eq 6.8 0.1 Independent Agricultural land occupation m2a 26 5 Life Cycle Urban land occupation m2a 5.2 1.3 Natural land transformation m2 1.8 -0.6 Assessment by Terrestrial ecotoxicity kg 1,4-DB eq 0.120 0.009 Partners for Freshwater ecotoxicity kg 1,4-DB eq 9.8 1.7 Innovation Marine ecotoxicity kg 1,4-DB eq 12.0 1 Water depletion m3 955 -567 Metal depletion kg Fe eq 87 47 Fossil depletion kg oil eq 2093 -610 Freshwater eutrophication kg P eq 0.240 0.119 Marine eutrophication kg N eq 0.579 0.000 Ozone depletion kg CFC-11 eq 0.434 0.180 15

>> The ‘Black Bear Team’, who we are, what we do and where we’re heading >> Environmental benefits of using Black Bear carbon black >> Deep dive into our technical value proposition 16

Key fundamental properties of the carbon blacks tested and compared Property Test Unit BBC T30 BBC T30S N330 N660 N347 Method BET ASTM m²/g 86 77 78 35 85 D6556 STSA ASTM m²/g 69 62 75 34 83 D6556 OAN ASTM cm³ /100g 96 88 102 90 124 D2414 Total inorganic content DIN % 12 - 16 30 - 35 < 1 < 1 < 1 51719 SiO₂ content in ash DIN EN % 5 - 7 24 - 26 0 0 0 15309 17

Not unexpectedly the new BBC grades behave similar to ASTM N300 types in rubber compounds 18

BBC T30 imparts higher mechanical reinforcement than N330 with lower modulus and a step-improvement in dynamic performance >> For all values: high = good Tested in ASTM D3192 • (carbon black evaluation in natural rubber) Tan delta by DMTA • temperature sweep, frequency 1 Hz, strain 2% 19

BBC T30S provides comparable/improved mechanical performance than N660 at a slightly lower modulus and enhances dynamic performance with a marked improvement in flex fatigue >> For all values: high = good Tested in ASTM D3192 • (carbon black evaluation in natural rubber) Tan delta by DMTA • temperature sweep, frequency 1 Hz, strain 2% Crosslink density (MH-ML) • adjusted to compensate the effect of silica The 25% silica content in • BBC T30S is receptive to silane-coupling. For example, the addition of 1.5% silane (Si69) will increase tensile modulus M300 by around 30% in SBR recipes 20

Compared with N347 an 80:20 blend of N330:BBC T30 imparts better abrasion and tear resistance with a marked improvement in dynamic performance >> For all values: high = good • Tested in ASTM D3192 (carbon black evaluation in natural rubber) • Tan delta by DMTA temperature sweep, frequency 1 Hz, strain 2% 21

In conclusion, we seek launching partners within the Agricultural Tire Sector with a flare for Innovation, and a desire to improve their tire performance in the ‘greenest’ way possible! We believe: 1. Our upcycled carbon blacks can improve tire performance in the areas of durability and reduced rolling resistance 2. We will drastically improve your carbon footprint!! 22

….and we are firm believers that “life begins at .000 km!” 23

>> Black Bear Carbon was co-funded by the Eco-Innovation Initiative of the European Union >> We express our thanks to Trelleborg Wheel Systems (Rome) who participated in the Eco-Innovation project by evaluating and proving the value of Black Bear products in agricultural tires 24

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