Biofuels 2013, The Year of Capital

January 2, 2013 |

Launching a year-long focus on capital and investment — featuring a sneak preview of the new BioInvest Digest, and an expanded Big Dialogue on capital and investment at ABLC 2013.

Plus, a look at the impact of last night’s US fiscal cliff deal.

Technology, market, price, management, feedstock, and policy – these are always vital. But here in Digestville, we see capital as the overwhelming issue for 2013.

Capital-raising activity is increasing sharply, and will increase more as projects move towards global deployment at industrial scale.

YearofCapital

It’s just math, and the march of time. In 2008, in the wake of the passage of the Energy Independence and Security Act, it would take $100 million to support 20 companies through the their earliest pre-pilot stages.

But it would take, today, $4 billion to support each of those 20 in building out a first commercial project.

Meanwhile, the US seeks to double its biofuels production by 2022. Brazil is expanding the cultivation area approved for sugarcane by a factor of seven times. China seeks to increase its production capacity by a factor of nearly 10 over the next decade. The cost of building all this capacity – some 40 billion gallons — will be more than $250 billion.

Risk and Reward

So that’s the capital outlook, which makes the information need very acute and very simple?In a word, risk.

What’s the best way to evaluate ventures? What structures best manage technology, market, price, management, feedstock, and policy risk? What projects are feasible, and when, based on what parameters?

Today’s Special issue — and coverage all year

In today’s Special Issue marking the beginning of a year-long focus on risk and capital in industrial biotech:

The DEAL. The “Fiscal Cliff” deal just passed on Capitol Hill – what does it mean for industrial biotech?

The INFO. A sneak preview of BioInvest Digest, a new weekly debuting today at 2pm ET, that will serve those investing or lending, or considering equity or debt options, in industrial biotechnology. From the small retail investor to the major project financier. Who is investing where, when, why and how.

YOUR SAY. At ABLC in Washington, DC this April, we are expanding our Big Dialogue on capital and investment in industrial biotech. What’s needed? In today’s Digest 30-Second Poll, its your chance to help speakers and moderators understand your issues – how would you like to see the dialogue at ABLC structured to best meet your needs?

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