IPCI (International Polyol Chemicals Inc) has been in business since 1985.  We are a Washington State research and development company focusing on developing new "green" chemical process technology.

IPCI and its Polyol Partners in Iceland and South Africa (details on partners below) have developed technology to produce industrial glycols (ethylene glycol, propylene glycol, butanediols and glycerin) from sugars of any type.

Up until now these products come from oil derivates.  In North America the preferred sugar of choice and cost is corn glucose (ADM, AE.Staley, Cargill, Corn Products).

CASCADE SUGAR RENEWABLES

Economic Development Summary

PETROCHEMICAL GLYCOLS & SPECIALTY SUGARS
FROM RENEWABLE CORN, DAIRY & WOOD FIBER SUGARS
By International Polyol Chemicals Inc. (IPCI) & The NW Hydrogen Alliance

Renewable Sugar To Glycol Chemicals Production Complex

Proposed Project:

Build $130 million chemical plant in Eastern Washington or Oregon

Annual Sales:

$100-120 million/yr doubling to $200 + million in five years

Jobs:

100-120 high quality jobs, 20 jobs supporting R&D

Technology Employed:

Hydrogenation & hydrocracking of sugar (Not to be confused with ethanol/gasohol from fermentation)

Annual Production:

100,000MT of glycols-widely used in industrial (plastics, polyesters, antifreeze), cosmetic & personal cares products and 13-17,000 MT alcohols.

Worldwide Annual Market:

17 million ton per year glycol market worldwide growing 3-5% per year.  Asia fastest growing market

Biomass Source Material:

Process uses readily available, inexpensive renewable sugars--glucose (corn syrup), lactose (cheese whey), sucrose (table sugar) or other sugars (e.g. from wood processing waste and straw).

Transportation Needs:

Uses all transportation advantages inherent in the Northwest -- national rail, Columbia barge, interstate trucking, Portland-Seattle seaport tanker facilities.

Subsidies Needed:

None, economic payback less than four years

International Partners:

International companies (from China and Japan as examples) will be participating in production, marketing and equity.

Local Partners:

IPCI, a Washington State corporation and the Northwest Hydrogen Alliance -- knowledgeable about Northwest energy, environmental and local economic development issues and Westfarms-source of sugars.

Status

Commercial Plant:

10,000 MT/yr plant in Changchun, China online October 2004

10,000 MT/Year Plant Changchun, China

Commerical Plant #2:

Second 200,000 MT/yr under construction Changchun, China targeted start 2006-2007.

Environmental

• Need 40-50acres, 700,000 MT steam/year, natural gas, power (10MW basic services), unit train unloading facilities, barge facilities

• Minimal waste water treatment, minor emissions, no hazardous waste

• Renewable sugars as feedstock--corn glucose from Midwest, lactose from Northwest cheese processors, sugars from wood fiber/straw & imported world cane sugar

• IPCI process is a net consumer of carbon dioxide, a greenhouse gas because the technology relies on renewable sugars for source material (photosynthetic user of carbon dioxide) instead of fossil fuels; glycols are currently produced entirely from oil and natural gas via propylene oxide and ethylene oxide intermediates

• Production and internal plant use of hydrogen offers possibility of kick-starting a Northwest hydrogen economy

• Production of hydrogen through electrolysis of water using power produced from renewable resources (hydro, wind, biomass, etc.) instead of natural gas would reduce carbon dioxide emissions further, produce oxygen as a byproduct increasing the greenness of the overall process, feedstock and product mix.

• Various production options for making hydrogen creates trade-offs between costs and environmental benefits

• Produces byproduct alcohols that can be used directly in gasohol

• Alcohols--possible portable hydrogen/fuel for emergency power generation

• Sugar to glycols process is inherently safe; hydrogen production safety state of the art.

Spin-Offs and Other Upside Benefits

• Glycol and hydrogen research, development and demonstration facilities

• Standalone hydrogen business

• Strong biomass alternative fuel, feedstock, renewable business lead for the state

• Direct new industry for Oregon, Washington, Idaho and Montana cheese processors.

• Fractionating whey to lactose sugars & whey proteins represents new business

• Sorbitol, glucose, food ingredient business for Northwest companies

• IPCI green technology potentially adaptable to produce a wide variety of green industrial chemicals, which may entitle us to a "green" premium.

Major Risks

• Economics of process depends on international oil prices, which set glycol prices.  At $16/bbl equivalent the IPCI process is breakeven compared to oil.  At current prices, the process is profitable

• International crisis in the Mideast could disrupt international glycols market

• Capital costs could rise with interest rates, New Orleans (Katrina) depressing returns

• Rapidly expanding plant production might exhaust local sugars leading to more dependence on imported world sugars or sugars from the Midwest

• High transportation costs (rail, barge, truck, tankers) could reduce competitiveness although higher fuel costs will be offset by higher glycol production values

• Higher power costs (impacting electrolytic production) could force more hydrogen made from natural gas, which increases carbon dioxide emissions

• Competitors may take market share with competing green technologies

IPCI/Lactech--Polyol Partners
Terry Brix, President IPCI/Lactech
P.O. Box 190
Blue River, Oregon 97413-0190
PH (541) 822-8400/FX (541) 822-8190
email:atbrix@earthlink.net

The Northwest Hydrogen Alliance
321 Alder Street #7
Portland OR 97232
PH (503) 228-5099
Jack Robertson, Chairman
email:jdnglobal@aol.com
PH (503) 228-5099

Preston Michie, Director
email:pmichie@Qwest.net
Cell (503) 804-7331

CASCADE SUGAR RENEWABLES

Environmental Project Summary

PETROCHEMICAL GLYCOLS
FROM RENEWABLE CORN, DAIRY & WOOD FIBER SUGARS
By International Polyol Chemicals Inc. (IPCI) & The NW Hydrogen Alliance

Renewable Sugar To Glycol Biomass Complex

Proposed Project:

Build $130 million chemical plant in Eastern Washington or Oregon

Annual Sales:

$100-120 million/yr doubling to $200 + million in five years.

Jobs:

100-120 high quality jobs, 20 jobs supporting R&D.

Technology Employed:

Hydrogenation & hydrocracking of sugar (Not to be confused with ethanol/gasohol from fermentation).

Annual Production:

100,000MT of glycols-widely used in industrial (plastics, polyesters, antifreeze), cosmetic & personal cares products and 13-17,000 MT alcohols.

Worldwide Annual Market:

17 million ton glycol market/year worldwide growing 3-5% per year.

Biomass Source Material: Process uses readily available, inexpensive renewable sugars -- glucose (corn syrup), lactose (cheese whey), sucrose (table sugar) or other sugars (e.g. from wood processing waste and straw).

Transportation Needs:

Uses all transportation advantages inherent in the Northwest -- national rail, Columbia barge, interstate trucking, Portland sea port facilities for tanker ships.

Subsidies Needed:

None -- economic payback less than four years.

International Partners:

International companies from US, Iceland, China and Japan willing to participate.  International companies (from China and Japan as examples) will be participating in production, marketing and equity.

Local Partners:

IPCI, a Washington State corporation and the Northwest Hydrogen Alliance, which is knowledgeable about Northwest energy, environmental and local economic development issues.

Environmental

• Need 40-50acres, 700,000 MT steam/year, natural gas, power (10MW basic services), unit train unloading facilities, barge facilities.

• Minimal waste water treatment, minor emissions, no hazardous waste.

• IPCI process is a net consumer of carbon dioxide, a greenhouse gas because the technology relies on renewable sugars for source material (photosynthetic user of carbon dioxide) instead of fossil fuels; glycols are currently produced entirely from oil and natural gas via propylene oxide and ethylene oxide intermediates.

• Process uses a diverse source of renewable sugars as feedstock -- corn glucose from the Midwest, lactose from the Northwest, imported world sugars and even sugars from wood waste and wheat and grass straw.

• Potential of reducing further carbon dioxide from hydrogen production by switching from natural gas to renewable power sources (hydro, wind, biomass).  Oxygen would be produced as a byproduct.

• Produces byproduct alcohols that can be used directly in gasohol.

• Alcohols -- possible portable hydrogen/fuel for emergency power generation or potential source of hydrogen for fuel cells or other uses.

• Minimal waste water treatment, no hazardous waste.

• All glycol production and hydrogen production safety issues manageable.

Status

Commercial Plant:

10,000 MT/yr plant in Changchun, China online October 2004.

Commerical Plant #2:

Second 200,000 MT/yr under construction Changchun China targeted start 2006-2007.

Spin-Offs and Other Upside Benefits

• Glycol and hydrogen research, development and demonstration facilities.

• Standalone hydrogen business.

• Direct new industry for Oregon, Washington, Idaho and Montana cheese processors.

• Strong biomass alternative fuel, feedstock, renewable business lead for the state.

• Fractionating whey to lactose sugars & whey proteins represents new business.

• Sorbitol, glucose, food ingredient business for Northwest companies.

• IPCI green technology potentially adaptable to produce a wide variety of green industrial chemicals which may entitle us to a "green" premium.

Direct Consumer Benefit Examples of "Green" Glycols:

• Autos using sugar based ethylene glycol and propylene glycol as replacement for petroleum based antifreeze.

• The liquid solvent system (propylene glycol based) in liquid household detergents replaced by sugar based propylene glycol.

• "Green" sugar based ethylene glycol replacing fossil based glycol in synthetic textiles ranging from polyester in suits and auto interiors to floor carpets.

• Personal care products ranging from shaving creams and underarm deodorants to hand lotions using sugar based propylene glycol and glycerin instead of fossil based glycols.

• Use of propylene glycols, and butanediols in resins and plastics for products as diverse as urethane foams to high performance plastics and plastic bottles.

Major Risks

• Economics of process depends on international oil prices, which set glycol prices.  At $16/bbl equivalent the IPCI process is not economic.  At current oil prices, economics favorable.

• International crisis could disrupt international glycols market.

• Capital costs could rise with interest rates.

• Rapidly expanding plant production might exhaust local sugars leading to more dependence on imported sugars or sugars from the Midwest.

• High transportation costs (rail, barge, truck, tankers) could reduce competitiveness although higher fuel costs will be offset by higher glycol production values.

• Higher power costs (impacting electrolytic production) could force more hydrogen made from natural gas.

• Competitors may take market share with competing green technologies.

IPCI/Lactech--Polyol Partners
Terry Brix, President IPCI/Lactech
P.O. Box 190
Blue River, Oregon 97413-0190
PH (541) 822-8400/FX (541) 822-8190
email:atbrix@earthlink.net

The Northwest Hydrogen Alliance
321 Alder Street #7
Portland OR 97232
PH (503) 228-5099
Jack Robertson, Chairman
email:jdnglobal@aol.com
PH (503) 228-5099

Preston Michie, Director
email:pmichie@Qwest.net
Cell (503) 804-7331

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