Biofuels in an hour of peril and unparalleled opportunity
At our next industry get-together, we look at biofuels and bio-based products in their hour of maximum peril and opportunity – are you prepared?
At no time in its short, turbulent history have the biofuels and biomaterials industries gone through a period of threat and opportunity like 2012, with the possible exception of the 2013 season coming up fast.
On the threat side – fundamental challenges to foundational industry programs: RFS2, loan guarantees, the Title III program in advanced drop-in military biofuels, the energy title in the Farm Bill, the EU’s biofuels targets, and Brazilian ethanol blending levels in the face of poor sugar harvests. Just to name a few.
On the opportunity side – groundbreakings of first commercial plants based on both both thermocatalytic and enzymatic technologies, the opportunities for wholesale conversion of the ethanol fleet to isobutanol; the onset of E15 ethanol blending in the US; extensive flight testing in aviation biofuels; and, perhaps most significantly, expansion from a handful of target molecules to hundreds through the proliferation of new strategics, and projects in renewable chemicals, and bio-based materials.
Biofuels manufacturers have expanded their capabilities to embrace jet fuels, lubricants and engine greases, lacquers, adhesives, paints, tires, hoses, plastic bottles, pet foods, cookies, ice creams, flavors, butter, cooking oils, household cleaners, industrial absorbents, detergents, soaps, medicines, shampoos, cosmetics, fragrances, lotions, floor and ceiling tiles, candles, containers, and fertilizers.
One of our favorite slides, from the Solazyme road show, highlights the extent to which producers have moved into a host of related molecules that are revolutionizing the usage, financing, policy framework, partnership structure of the industry.
They are made now not only for the garage, but the kitchen, laundry, bathrooms, and bedrooms, and for industrial use.
They are made from not only traditional crops, but agricultural, forest, municipal, industrial and liquid waste streams; and new energy crops, from macrocrops like switchgrass, miscanthus and jatropha to microcrops such as algae, are expected to rapidly develop throughout the decade.
Industrial biotechnology is, in short, changing daily life – which is why governments from the US to China, Southeast Asia, Australia, Brazil, India and the EU, not to mention elsewhere in Africa, the Middle East, Asia-Pac and the Americas are grappling to ensure their share of the emerging bio-economy.
How big is the bio-economy? Best estimates we have seen are in the $13.5 trillion range – that’s today. Given the changes in the $3 trillion petroleum industry – not to mention the plant oils, animal fats and sugars markets – and their value-add applications.
Turning opportunity into reality
What do these trends mean to you? What opportunities are there, from field to wheels and field to front door – for you, in the creation of this rapidly expanding value chain?
We explore those topics with you each day in the Digest. Twice a year, we invite the industry to come together for a few days of real dialogue, dealmaking, and trend sharing and assessment. There ought to be a place, we thought, where absolutely everyone would get together in one place, at one time.
Our fall season get-together is called Advanced Biofuels Markets, and today we are announcing officially in the Digest some of the details of that gathering in San Francisco, on October 29-31.
Why come?
There are five goals that delegates to ABM and ABLC generally cite.
- Generating visibility and credibility
- For producers, networking for offtake, feedstock and financing
- Keeping up with the competition and industry trends
- For industry suppliers, finding new customers
- Renewing ties with policymakers and partners
Why come now?
This upcoming year is one where we see leaders starting to separate from the pack – whether it is successful IPOs, first commercial projects, blue-chip partners, or landmark financing – we see it in every sector of the industry. And it is happening fast.
For example, two years ago there were some great technologies developing fast in the world of isobutanol, but capacity was limited to some pilot- and demonstration-scale work by Gevo, Butamax and others.
Look at today. More than 1 billion gallons in capacity – either actively in conversion of belonging to announced early adopter groups.
Just a few years ago, the major investors in commercial-scale biofuels were, generally, groups of farmers determined to stabilize the commodity pricing cycle for cane and corn. Today, 30 of the Fortune 100 are invested in the production biofuels and bio-based materials, or their distribution.
And it may be unsurprising on some levels to see BP, Shell, Valero and companies like Dow and Dupont through their agribusiness sections – but what about Roquette, Dow Chemical or Coca-Cola?
An international community
In all, its a gathering point for what you might style as “the biofuels community” – and we are working hard to foster a transition from a community that gathers for a few days each spring and fall, to a living, 365-day community, through our TAKEOFF program.
This year, ABLC and ABM attendees automatically become members of TAKEOFF – focused offtake, feedstock and financing, and also on sharing vital industry information about all aspects of the industry’s development.
For example, TAKEOFF members have access to our 24/7/365 online networking tools – think of it as a LinkedIn for biofuels – a connecting and door-opening mechanism for partnership development. TAKEOFF members, as respected industry insiders, have enhanced voting privileges in competitions such as the 50 Hottest Companies in Bioenergy. This summer and fall, special enhanced editions of the Advanced Biofuels Project Database are available to members – with rich company, project and product detail. And more enhanced editions to come.
At ABM this year
We’ll be continuing to announce speakers throughout the summer, but in keeping with our tradition of having the C-level rock stars of biofuels on the stage, we are delighted to announce today the first tranche of event speakers, including:
Jonathan Wolfson, CEO, Solazyme
Patrick R. Gruber, CEO, Gevo
Gary Luce, CEO, Terrabon
Jim Macias, CEO, Fulcrum
Tom van Aken, CEO, Avantium
Ed Dineen, CEO, LS9
Rich Hamilton, CEO, Ceres
Kirk L. Haney, CEO, SG Biofuels
Daphne Preuss, CEO, Chromatin
Jennifer Holmgren, CEO, LanzaTech
Jim Imbler, CEO, Zeachem
Jeff White, CFO, Virent
Brooke Coleman, Executive Director, Advanced Ethanol Council
Brent Erickson, Executive Vice President, Biotechnology Industry Organisation
Tom Buis, CEO, Growth Energy
Mary Rosenthal, Executive Director, Algal Biomass Organization
Roger Wyse, Managing Director, Burrill & Co
A new element – BioBase
This year, to recognize the growing importance of bio-based products and materials, we’ll be staging a new showcase, BioBase. Unlike fuels, bio-based products cannot rely primarily on blending into the existing fuel streams – and consumer and channel partner marketing outreach is imperative and require product showcases and demonstrations, which will bring this year to ABM.
To learn more
All the details about ABM are located at a pretty useful website created by our partners in staging ABM, Green Power Conferences, well known by most of you for producing World Biofuels Markets in the EU and now in Sao Paulo.
Over the next weeks we’ll be announcing the remaining speakers – and, by the way, companies interested in sponsorship of visibility programs at ABM should contact Bill Lundberg here.
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