Anellotech Achieves Key Process Technology Operating Milestone; Receives Additional $6 Million Investment from Suntory

March 28, 2018

PEARL RIVER, N.Y.–(BUSINESS WIRE)–Anellotech,
a sustainable technology company pioneering the Bio-TCat™ process for
production of cost-competitive renewable chemicals and fuels from
non-food biomass, today announced a key operating milestone, achieving
two weeks of continuous operation of its seven-story tall TCat-8 pilot
plant, producing aromatics (primarily benzene, toluene, and xylenes)
from loblolly pine feedstock. Anellotech also secured an additional $6
million investment from Suntory Holdings Limited, which was part of a
previously announced $15 million package. Suntory’s total investment in
Anellotech’s program is now more than $30 million.

The Bio-TCat Process’s cost-competitive renewable aromatic chemicals are
“drop in” replacements for their identical petroleum-derived
counterparts, and can be used in manufacturing plastics such as
polyester, nylon, polycarbonate, polystyrene, or for renewable
transportation fuels. The low carbon footprint of Bio-TCat products can
help chemical producers and consumer brand owners meet challenging
corporate environmental sustainability goals.

Having recently announced completion of commissioning of the TCat-8®
pilot plant located in Silsbee, Texas, Anellotech has begun an extensive
development program to optimize process variables, validate process
economics, confirm catalyst long-term performance, and obtain the
critical data for commercial plant design. As these studies continue,
TCat-8 is producing evaluation quantities of renewable aromatic
chemicals for conversion into bio-based polymer prototypes and for
bio-fuel certification programs.

“We have demonstrated continuous, stable operation of the TCat-8 pilot
unit over a two week period as the first key step in demonstrating
Bio-TCat’s commercial viability,” said Dr. Charles Sorensen, Chief
Technology Officer of Anellotech. “In a relatively short time period,
our pilot plant has generated a large amount of high-quality data which
gives us confidence that we will be able to achieve our longer-term
operational goals. Continuous catalyst circulation, the injection of
solid biomass feedstock into the reactor, and several internal recycle
loops create numerous complexities that Anellotech engineers and
scientists, together with our R&D partners IFPEN and Johnson Matthey,
have successfully addressed.”

The alliance with Suntory, one of Anellotech’s principal strategic
investment partners, began in 2012 with the goal of enabling the
development and commercialization of cost-competitive 100 percent
bio-based plastics for use in beverage bottles. Suntory currently uses
30 percent plant-derived materials for its Mineral Water Suntory
Tennensui brands and is pursuing the development of a 100 percent
bio-based PET bottle through this alliance, as part of its commitment to
sustainable business practices.

Anellotech continues to seek additional strategic partners to support
its development and participate in the future success of Bio-TCat™
technology. With Suntory’s strong interest in paraxylene, Anellotech’s
technology provides a unique complementary opportunity for companies
interested in using bio-benzene or toluene to reduce greenhouse gas
emissions associated with the manufacture of polymers and products such
as ABS, nylons, polycarbonates, polyurethanes, detergents, and other
aromatic-containing products currently made from petroleum.

About Anellotech

Anellotech is developing the Bio-TCat™ process to produce
cost-competitive renewable aromatic chemicals (benzene, toluene and
xylenes, “BTX”) from non-food biomass for use in making plastics,
including polyester, nylon, polycarbonate, polystyrene, or for renewable
transportation fuels. Bio-TCat’s cost-competitive advantage results from
the use of non-food biomass (including wood or agricultural residues),
and an efficient and economical catalyst as the only significant inputs.
Anellotech’s R&D program includes process studies to confirm Bio-TCat’s
viable process economics, long-term operability, and carbon footprint
reduction in comparison to petroleum-derived BTX. Anellotech is
currently evaluating loblolly pine and eventually other sustainable
bio-feedstocks at its seven-story tall TCat-8® pilot plant operated
within the South Hampton Resources chemical plant in Silsbee, Texas. The
R&D program will generate bio-based BTX samples for use in making
prototype samples of PET polymer for bio-based bottles and
bio-benzene-based polymers such as ABS, polycarbonate and polyurethane
for strategic investors.

By using renewable and readily available non-food feedstock materials
the Bio-TCat process is less expensive compared to bio-based processes
relying on sugar as a feedstock, and avoids competition with the food
chain. These renewable products are expected to be produced and sold
profitably either against identical, petroleum-derived BTX counterparts,
or as renewable fuel blend stocks. Anellotech complements its
world-class R&D team with in-depth, highly-interactive, and long-term
alliances with leaders in process development, catalysis, engineering
design, and licensing to accelerate development and drive
cost-competitiveness. IFPEN is our process development and scale-up
partner, Johnson Matthey is our catalyst development partner, and Axens
is our partner for industrialization, commercialization, global
licensing and technical support. Industry-leading strategic partners in
the BTX supply chain, including Suntory and Toyota Tsusho, as well as
other confidential strategic investors, also have provided funding to
Anellotech. To learn more, please visit: www.anellotech.com