Routes to the summit: 3 keys to first commercial advanced biofuels, and beyond

The geographies

You can divide the world according to three questions.

1. Is there a lot of carbon feedstock (e.g. biomass, CO2, etc) that has high potential but currently is sold for low values, or wasted? 3 points for Yes.

2. Is there a carbon emissions regime — e.g. mandates, carbon taxes and so on. Discount renewables targets, think only in terms of obligations. 1 point for Yes.

3. Is there a long-term energy shortage looming — e.g. rapidly declining domestic sources of energy, or a fast-growing economy that will outstrip growth in domestic resources. 2 points for Yes.

4-6 points. This region is hot to trot on biofuels, and is probably rapidly developing already, or will be.

2-3 points. This region is looking into biofuels — likes it, but the economics or existing infrastructure will weigh heavily. It’s tough to deploy alcohol fuels, tough to aggregate feedstock. If the resources are there for the products produced — look for biofuels. Otherwise, think chemicals, fragrances, flavors, nutraceuticals and other high-margin, small-volume markets where niche plays will be the order of the day for some time to come.

0-1 points. This region may make a lot of noise about biofuels — but mandates and targets will ultimately be too soft to inspire investor confidence.

In today’s Digest, we explore the players that are in the financing game — and how they work, and what works for them – all via the page links below.