1. 01.04.04 - Page1 BIOBASED INDUSTRIAL MATERIALS AND OPPORTUNITIES Industrial use of biomass from forestry Gudbrand Rødsrud R&D Director Borregaard LignoTech

2. 01.04.04 - Page2 Borregaard LignoTech Sales: NOK 1440 mill Plants: 12 Employees: 520* Borregaard ChemCell Sales: NOK 1870 mill Plants: 2 Employees: 880* Borregaard Synthesis Sales : NOK 850 mill Plants: 5 Employees: 400* BorregaardBorregaard Fine-chemicalsFine-chemicals Specialty- Specialty-chemicals chemicalsOtherareasOtherareas Denofa Sales : NOK 1650 mill Plants: 2 Employees: 250 Borregaard Energy Sales : NOK 350 mill Power plants: 3 (+DNN) incl. Internal sales Borregaard NEA Sales : NOK 330 mill Plants: 2 Employees: 170 Borregaard Business areas 2003 * incl. prod./maint. Employees at Borregaard Sarpsborg

3. 01.04.04 - Page3 Borregaard Production- and sales units Head office Production Sales- / rep. office

4. 01.04.04 - Page4 Borregaard ChemCell and Borregaard LignoTech Wood based chemicals in an integrated concept VANILLIN (Norway) LIGNIN SPECIALITY- CELLULOSE ETHANOL CO 2 Bio energy (bark, side streams from the production, biogas from the waste water treatment) Wood 1000 kg 50 kg 45 kg 3 kg 400 kg YEAST (Switzerland) 20 kg Wood yard Digester Etanol- plant Vanillin- plant (Yeast) Lignin- plant Bleeching plant Drying machine Applications (end products) CelluloseLigninVanillin EthanolYeast Construction materialsConcrete additivesFoodCar careFood CosmeticsAnimal feedPerfumesPaint/ varnish(taste enhancer) Food DyestuffPharmaceuticalsPharmaceutical industryFeed (proteins) TabletsOil-well additives Paint / varnishBatteries TextilesBriquetting Paper

5. 01.04.04 - Page5 Industrial use of biomass from forestry today Lignin based specialty chemicals Burning (Energy and chemicals recovery) Pollution (Dumping into sea or rivers) Pollution (Dumping into sea or rivers) Lignin 30% Fibres 45 % Sugars 25% Pulp for paper Xylitol Yeast Ethanol CO 2 Specialty cellulose for chemicals SoyPass

6. 01.04.04 - Page6 Future industrial use of biomass from forestry Lignin based specialty chemicals Burning (Energy and chemicals recovery) Lignin 30% Fibres 45 % Sugars 25% Pulp for paper Xylitol Yeast Ethanol CO 2 Specialty cellulose for chemicals SoyPass Bioplastics Ethanol fuel Basic chemicals (diols) Phenolic chemicals Pollution Fiber for plastics SoyPreme

7. 01.04.04 - Page7 Lignin based plastics - Lignopol CHARACTERISTICS 100% based on renewable resources Will degrade in a compost, but not in use Can be processed in standard equipment for plastics like injection molding or extrusion Excellent for veneering, same thermal expansion coefficient as wood CHALLENGES Odour Colour (brown)

8. 01.04.04 - Page8 Bypass fat for ruminants - SoyPreme® Fats protected from hydrogenation in the rumen => unsaturated vegatable fat in milk Healthier fatty acid profile in dairy products. Spreadable butter straight from the fridge Has been proven to bring Omega-3 fatty acids into milk

9. 01.04.04 - Page9 BorreGro soil conditioner Using natures own mechanisms

10. 01.04.04 - Page10 Future industrial use of biomass from forestry Borregaards Fields of Interest Lignin based specialty chemicals Burning (Energy and chemicals recovery) Lignin 30% Fibres 45 % Sugars 25% Pulp for paper Xylitol Yeast Ethanol CO 2 Specialty cellulose for chemicals SoyPass Bioplastics Ethanol fuel Basic chemicals (diols) Phenolic chemicals Pollution Fiber for plastics SoyPreme