Driving the Alliance to the next Success Level! Bernard West and James Lee © Sustainable Chemistry Alliance SCA Continuum of Success •2001 Ontario Government report •2002 to 2008 Ontario Chemistry Value Chain Initiative •2008 to 2013 Sustainable Chemistry Alliance / BIC •2013 - 2018 SCA / BIC Phase 2 High level Interrupt! • A key announcement from Ottawa last week • Adapting the agenda of the AGM to tap your expertise at lunch time. • Leave here with a summary of your advice and help. • The Key Note presentations will provoke our thinking (c) Sustainable Chemistry Alliance 3 A Key Announcement from Ottawa • SCA is a part, a highly successful part, of a CECR. • CECR is a Centre of Excellence for COMMERCIALISATION and Research. • 11 CECRS funded 4 years ago • BIOINDUSTRIAL CENTRE [BIC] was one, with $15 million invested by Ottawa. • BIC has two partners, SCA and the Research Park/WU. • SCA had $ 7.5 million • So what is the fuss about the announcement? (c) Sustainable Chemistry Alliance 4 08/04/2015 5 Competition 2013 Centres funded in the first Competition have the opportunity to apply for: 1.An extension to its funding period, and 2.Additional funding All Centres competing for additional funding will also be considered for an extension of their funding period. 08/04/2015 6 Today’s meeting is a great opportunity for You and Us! • • • • We are very successful invested $5.5 M marched to $138 M. Plus Jobs 252 full time, 1100 indirect and 600 construction. Helped by a tremendous network, many in this audience. Now have the opportunity to move up a notch. • WE ARE READY! • We refreshed the SCA Strategic plan two years ago. • We updated the Business Plan early this year. • Contacting a list of stakeholder needed to validate our Business Plan. • TODAY is a golden opportunity for you feedback and advice. Sustainable Chemistry Alliance • We want some of you(c) to join us a partners. 7 Competition 2013 Goal Places emphasis on enhancing impact of all Centres and supporting those with potential to remain sustainable after the CECR grant funding. Sustainability: Can be achieved using a range of models (partnerships, memberships, support from other governments, and revenue.) 08/04/2015 8 CECR Program Criteria – Benefits to Canada – Track Record and Potential of the Applicants – Strength of the Business Plan Centres requesting additional funds will be assessed on the three criteria. However, to receive additional funding – the Strength of the Business Plan will depend on the right partners 08/04/2015 9 Not a Renewal: Emphasis on CECR Business and Sustainability Plans Additional funding will be awarded only to Centres that can demonstrate a clear plan to self-sustainability. Centres successful in the competition will: •have a robust business plan •a viable sustainability strategy •a clear demonstration of gradual reduction in its reliance on CECR Funding. SCA plans to be clearly independent and sustainable 08/04/2015 10 Competition Timeline Spring 2012 June 15, 2012 October 1, 2012 Mid to Late October, 2012 Competition Announced Letter of Intent (LOI) Full Application deadline November 2012 Review by the PSAB November 2012 Decision by the NCE Steering Committee Winter 2012-13 Announcement of CECR 2013 competition results January/ February 2013 Funding Agreements and Amendments circulated for signatures March 2013 Funding starts 08/04/2015 Expert Review Panels 11 BioIndustrial Centre BIC has to Apply • SCA success has been the key factor in the success of BIC. • SCA Fund has had a goal to be self-sufficient from the OCVCI days! • We have plans to meet the CECR expectations. • • • • Overall we have great strengths and some weaknesses. Must maintain the FUND. Need to bring in a number of “partners”. Also need to create a membership category. • You all have been our “network” • SCA success has come significantly from our networking. • Now Lets Show you our Business Plan Outline (c) Sustainable Chemistry Alliance 12 Vision Canada is a global leader in innovative, environmentally sustainable, chemical products, technologies and processes, by becoming one of the top three bio-based economies in the world. (c) Sustainable Chemistry Alliance 13 Achieving our Vision, Delivering on our National Mandate A B By connecting companies and investing in sustainable chemistry Supporting development of biohybrid chemistry clusters • Creating sustainable jobs, environmental sustainability, economic wealth • Through strategic investments and connectivity though the business value chain SE3 VALUE DRIVEN (sustainable economics, sustainable employment, environmental sustainability) … This is what we do FOCUSED ON DELIVERING COMMERCIALIZATION Opportunities Successful Results (c) Sustainable Chemistry Alliance More Opportunities Positioned to do More, Repeat 14 Our Results $138 M Matching Investments A Balanced Sustainable Chemistry Portfolio BioHybrid Clusters Sustainable Chemistry Alliance Job Creation • 252 Full Time • 1100 Indirect • 600 Construction $5.5 M Seed Environmental Sustainability (c) Sustainable Chemistry Alliance 15 B. Creating BioHybrid Chemistry Clusters A. Investing in Sustainable Chemistry British Columbia Edmonton • • • • 1 investment 4 in pipeline • Alberta • 5 in pipeline Saskatoon • Prairies • 5 in pipeline • Ontario • • • • • • 10 investments 27 in pipeline 3 commercial demo plants 2 more demos in 2012 1 major $80M biobased plant Sarnia BioHybrid Cluster Quebec and Atlantic • CO2 Capture + Conversion Upgrading and Energy Infrastructure Agri and Forest Biomass • Developing global leadership, converging fossil and biobased industry, focusing on long term sustainability Internationally Renown Agricultural Reputation Potash Mining and Energy Infrastructure Agri Biomass Sarnia Lambton • • • • First BioHybrid Chemistry Cluster Petrochemical, Energy, Manufacturing Infrastructure Close to Markets Agri and Forest Biomass Montreal 3 in pipeline Nation Wide Focus Global Reach (c) Sustainable Chemistry Alliance • • • • Abundant Hydro Power Energy, Manufacturing Infrastructure Close to Markets Forest Biomass 16 Connecting to Accelerate Commercialization Government Business and Technical Services Invested Companies Energy BioHybrid Clusters Forestry Finance Prospective Investments Industry Not for Profit R&D Agriculture Sustainable Chemistry Alliance (c) Sustainable Chemistry Alliance 17 Filling Critical-to-Success Gaps with our Connectivity – Partners, Expertise, Financing Life Sciences Provincial Government Federal Government University of Western Ontario University of Waterloo Agricultur al Research Institute of Ontario Ontario Research Fund Agricultur e Adaptatio n Council BioProduc ts Discovery Centre Grain Farmers of Ontario BioIndustri al Centre University of British Columbia Calgary University University of Toronto Chemical Industry Association Canada University of Ottawa Lambton College Agris Cooperati ve Ontario Federation of Agricultur e Canadian Plastics Institute Association Canadian Petroleum Products Institute FP Innovation s OntarioAgr iculture and Agri Foods Canada Guelph University CRIBE MaRs National Research Council Suncor Renewabl e Energy NOVA Chemicals DuPont BioteCana da Green Centre Canada Ethyl Corporati on Canada Light Source SCA OBAC CCEMC LANXESS Soy 20/20 Ontario BioAuto Council Auto21 SGF Sugar Beet Associatio n Centre for Demoncra cy National Bank SCA SCA Tecsar CORE BioFuel Worely Parsons Paton Controls Jacobs MacQuari e CIBC World Markets Duropar AGF/Acuit y BDR Azule Centre for Innovativ e Studies Byron Securities Jacobs Securities Zeton SNC Lavalin IUPAC Alberta Innovates Scotia Capital Front Street Capital MacKie Research EcoSynthet ix Investeco BioAmber EcoSynthet ix INEOS Ontario Power Generation TransAlta S4CO2 Vive Cycle Capital Renix BioHybrid Clusters Shell CF Industries Spectra Energy Pembina Energy Growth Works GreenCore Woodland BioAmber NewAlta (c) Sustainable Chemistry Alliance Invested Companies Prospective Investments 18 SCA Pipeline of Sustainable Chemistry Based Opportunities SE3 Sustainable environment, employment, economics Opportunities (c) Sustainable Chemistry Alliance Successful Results More Opportunities Positioned to do More, Repeat 19 Opportunities Successful Results More Opportunities Positioned to do More, Repeat …The Future 3 SE3D Fund Commercialization Investment Fund • Sustainable Environment • Sustainable Jobs • Sustainable Economics The “Go-To” Organization for Sustainable Chemistry outcome 1 resources SCA BioHybrid Chemistry Clusters Convergence of Sustainable and NonRenewable Industry • Realization of SE3 • Global leadership in action • Advancing the bioceconomy (c) Sustainable Chemistry Alliance platforms SCI Ventures Sustainable Chemistry Commercial Innovation Ventures 2 •World-class transformation of BioIndustrial Innovation Centre •Bench to Pilot to Commercialization Ventures •Solutions for imminent commercial application 20 Achieving our Vision Program Delivery SCI Ventures SE3D Fund SCA • Perpetuate by reinvesting exits, Self sustaining • Creation of a parallel shadow fund providing returns to strategic SE3D investor partners • Pay dividend to Government BioEconomy Shadow Fund • Formation and launch of early stage companies • Provide access to criticalto-success domain expertise and experience • Leverage network of sustainable chemistry and bioeconomy focused Canadian incubation and industry innovation centres Strategic Partners •Investments that shadow SE3D •Founding SCIV partners from Fund industry, not-for-profits and government •BioEconomy investors from biomass sector, industry, (c) Sustainable Chemistry Alliance economic development • SE3D Fund, SCI Ventures • BioHybrid Chemistry Clusters • Become the “Go-To” organization for sustainable chemistry commercialization • National Focus, Global Reach World Class Delivery •Building on success 21 Next 8 Months TODAY AUTUMN Q1/2013 Engage stakeholder, Develop more partners Program funding and recapitalization process Decisions November Keep delivering with existing working capital, Pre screen, Keep deal flow (c) Sustainable Chemistry Alliance Mobilization, renew organization Execute and Deliver More 22 Task for Today • You have to agree that SCA has been a great success and • We have developed a good basis for moving up a new level • At lunch we have tables with facilitators from the SCA board • Steve Bolt will pose a couple of specific questions • We will have a feed-back session at the end of the meeting • Steve will finish with a summary of input and our follow up. • THANK YOU ALL FOR BEING A CONTINUING PART OF OUR SUCCESS! (c) Sustainable Chemistry Alliance 23 Board Member Connect with Us www.suschemalliance.ca • Murray McLaughlin President and CEO SCA Executive Director BIC murraym@suschemalliance.ca 519-383-8303x347 | 519-550-5525 • Steve Bold – CoChair Retired Executive, Dow Chemical Company Bernard West – CoChair Retired President, Rhone Poulenc, Canada Colours and Chemicals, CanSolv Murray McLaughlin President and CEO, SCA Paul Clark President, Vision Gain, Retired executive NOVA Chemicals, Dow Chemical Cam Harris VP, Technology, SNL Lavalin Sandy Marshall President and Managing Director, Lanxess Canada Gord Surgeoner President, Ontario Agri-Food Technologies Sam Kanes Retired Executive, Scotia Capital Jean Hamel VP, FP Innovations George Mallay General Manager, Sarnia Lambton Economic Partnership Richard Paton President and CEO, Chemical Industry Association Canada Bill White Retired CEO, DuPont Canada James Lee Portfolio Manager jlee@suschemalliance.ca 519-383-8303x247 | 519-381-7745 (c) Sustainable Chemistry Alliance 24