Alliance continues progress towards the development and
commercialization of cost-competitive
100 percent bio-based
plastics for use in beverage bottles

PEARL RIVER, N.Y.–(BUSINESS WIRE)–Anellotech, a sustainable technology company pioneering the production
of cost-competitive renewable chemicals and fuels from non-food biomass,
today announced that Japan-based Suntory Holdings Limited, one of the
world’s leading consumer beverage companies, has invested an additional
$9 million in Anellotech’s Bio-TCat technology. This latest tranche,
which is part of a new $15 million package based on Anellotech achieving
specific milestones, brings Suntory’s total investment in Anellotech to
more than $25 million to date.

Anellotech’s Bio-TCat Process will produce cost-competitive renewable
aromatic chemicals (benzene, toluene and xylenes, “BTX”) from non-food
biomass for use in manufacturing plastics such as polyester, nylon,
polycarbonate, polystyrene, or for renewable transportation fuels.
Anellotech recently announced the completion of the commissioning of its
25 meter tall TCat-8 pilot plant, and has commenced the critical
development program to validate process economics and obtain necessary
data for commercial plant design.

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.

“We have made significant progress achieving key milestones in
commissioning the TCat-8 pilot plant, and are now ready to begin the
next stage of the development program including the production of
prototype test samples of renewable bio-chemicals for ultimate
conversion to bio-based plastics,” said David Sudolsky, President and
CEO of Anellotech. “Suntory is a leader in its commitment to
environmental sustainability. With its continued investment in
Anellotech’s technology, and together with our development partners, we
will demonstrate a scalable and cost-effective route to bio-paraxylene
production. Our innovative technology will advance the development and
commercialization of the world’s first cost-competitive bio-based
aromatics production for bio-plastics for consumer products.”

In 2014, the Suntory Group established its Environmental Vision toward
2050 and set targets toward 2020 to provide clear direction to its
environmental management based on its corporate tagline “Follow Your
Nature.” Suntory is committed to promoting innovative technology
solutions to reduce environmental impact through the entire value chain
in accordance with its mission – To Create Harmony with People and
Nature. Suntory’s Environmental Vision will take on the following
challenges toward 2050:

• Preserving and regenerating the natural environment in Suntory’s major
  business countries
• Halving the environmental impact generated by Suntory’s business
  activities by 2050 in such areas as water consumption at company
  plants, and CO2 emission throughout the entire value chain

Suntory Group recognizes the social and environmental impacts that
containers and packaging cause and considers the environment in the
entire product life cycle – from planning and product design to
transport and post-consumption recycling. The company has implemented a
wide range of initiatives focused on dramatically decreasing the amount
of resources that it uses and is actively introducing renewable
resources as a measure to limit its environmental impact as much as
possible. For plastic bottle containers, Suntory Group aims to replace
petroleum-derived raw materials with renewable raw materials as much as
possible.

“We are very pleased to play an important role in helping Suntory
advance its environmental vision as the Bio-TCat technology will help
enable Suntory to reduce its use of petroleum-derived packaging and
reduce its carbon footprint,” added Sudolsky. “Anellotech anticipates
that the Bio-TCat Process can produce renewably-sourced aromatic
chemicals with significant reduction in greenhouse gas emissions
compared to their identical petroleum-derived counterparts, helping
brand owners and others achieve their corporate environmental
sustainability goals.”

Sudolsky concluded, “Anellotech’s technology has end use applications
for a range of consumer products, including clothing/textiles, food and
beverage packaging, automobiles, adhesives, coatings, consumer
electronics, detergents and tires. We look forward to partnering with
innovative consumer product companies and brand owners that are seeking
first mover advantage with a renewable technology that offers unique and
compelling environmental and cost benefits, especially for benzene-chain
bio-plastics which are complementary to Suntory’s interest in p-xylene.”

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 such as
polyester, nylon, polycarbonate, polystyrene, or for renewable
transportation fuels. Bio-TCat’s cost-competitive advantage results from
the use of non-food biomass such as wood or agricultural residues, and
an efficient and economical catalyst as the only significant inputs.

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

Contacts

Anellotech Inc.
David Sudolsky, +1 845-735-7700
[email protected]
or
ICR
Cory
Ziskind, +1 646-277-1232
[email protected]