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NexantThinkingTM
Biorenewables Financing Under the Microsope
Brochure April 2014
Special Reports
NexantThinkingTM
Special Reports
Biorenewables Financing Under the Microsope
Brochure April 2014
A50801.010. Special Reports
This Report was prepared by Nexant, Inc. (“Nexant”) and is part of the NexantThinking™ suite. Except where specifically stated otherwise in this
Report, the information contained herein is prepared on the basis of information that is publicly available, and contains no confidential third party
technical information to the best knowledge of Nexant. Aforesaid information has not been independently verified or otherwise examined to determine
its accuracy, completeness, or financial feasibility. Neither Nexant, Subscriber nor any person acting on behalf of either assumes any liabilities with
respect to the use of or for damages resulting from the use of any information contained in this Report. Nexant does not represent or warrant that any
assumed conditions will come to pass.
The Report is submitted on the understanding that the Subscriber will maintain the contents confidential except for the Subscriber‟s internal use. The
Report should not be reproduced, distributed, or used without first obtaining prior written consent by Nexant. Each Subscriber agrees to use
reasonable effort to protect the confidential nature of the Report.
Copyright © by Nexant Inc. 2014. All rights reserved.
www.nexantthinking.com
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Contents
Section Page
1 Introduction ............................................................................................................................. 1
1.1 Overview.................................................................................................................... 1
2 Report Scope ......................................................................................................................... 5
2.1 Objective.................................................................................................................... 5
2.2 Scope ........................................................................................................................ 5
3 Proposed Table of Contents................................................................................................... 7
4 Methodology ........................................................................................................................... 11
5 Nexant‟s Experience .............................................................................................................. 12
5.1 General ...................................................................................................................... 12
5.2 Assignments Undertaken Which Cover Biofeedstocks, Biochemicals, and/or
Biofuels ...................................................................................................................... 14
6 Contact Details ....................................................................................................................... 20
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Section 1 Introduction
1.1 OVERVIEW
Fossil fuels and petrochemicals are the building blocks of modern society. They are the raw materials for
chemicals, energy, and fuels. However, broad concerns about the economics of petroleum-based
feedstocks, the future of the global economy and the environment have brought about a new goal for
industries, consumers, and governments to strive towards in the twenty-first century: sustainability.
Consequently, some of the world's biggest players in the energy and petrochemical industries are seeking
to develop new feedstocks and products derived from bio-based materials. This trend has also fostered
efforts of a number of startups to commercialize innovative technologies for the production of bio-based
chemicals and fuels.
Biorenewables ventures typically face greater hurdles than petrochemical ventures on the path to
commercialization. The path to commercialization for biorenewables is typically more complex,
considering the necessity to prove performance and cost-competitiveness of these new, innovative
technologies at a scale comparable to that of petrochemicals and fossil fuels. The nature of this
commercialization process necessitates a significant infusion of capital at each stage of development to
ensure success. Obtaining financing is critical to the success of these ventures.
There are various mechanisms available to finance biorenewables ventures. Investment and support for
the biorenewables industry has come in the form of venture capital, private equity, investments by private
and public companies, acquisitions, joint ventures, government policies and grants, subsidies,
government loan guarantees, IPOs, bond and debt financing, and strategic partnerships. Figure 1.1
shows the shift in biorenewables investment from 2006 through 2012.
Figure 1.1 Biorenewables Investment 2006-2012
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012
Per
cent
of I
nves
tmen
ts
Without Chemical Aspect With Chemical Aspect
Source: Cleantech Group, Pew Trust, Nexant Research
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Section 1 Introduction
Investment has been shifting from biofuels to renewable chemicals. This is largely driven by the fact that
chemicals generally have higher values than fuels, indicating the higher attractiveness and the potential
for improved investment returns and a stronger likelihood of commercial success. Figure 1.2 displays the
price volume relationships across the fuels and chemical spectrum, showing that while lower volume,
chemicals are intrinsically higher value.
Figure 1.2 Price Volume Relationship
Many projects employing innovative technologies in the petrochemical, chemicals, polymers, and fuels
industries are partly or fully financed by large, profitable companies “on their balance sheets”. That is, the
equity in the project is provided by cash available in a company‟s accounts, or against its borrowing
power for “recourse” borrowing. This means if the project fails for any reason, such as technical or
market failures, the lenders can seek to recover their loan from the company. For “non-recourse” or
“project financed” projects, exhaustive due diligence is generally done by the lenders on all aspects of the
project.
Figure 1.3 shows the different types of project financing. Projects can choose from several different
financing structures. “Senior” or “bank debt” is generally the cheapest form of financing. Interest rates
and terms will vary but generally are in the mid-single digit range. However, the business will need to
supply the bank or lender with a form of collateral. This can be in the form of a first call on property, plant,
equipment, inventories, accounts receivable, or even a personal guarantee. For companies that do not
have a lot of hard assets or collateral, another common option is equity. Equity is considered the
preferred short term source of funds because there are generally no current interest payments required,
allowing young companies to invest in growth resources. However in the longer term, equity is
considered an expensive option for a growing company, as business owners must give up substantial
portions of their company‟s ownership in return for outside “risk equity”. Mezzanine financing is an
alternative to equity in these situations. Mezzanine debt is usually structured as a second lien term loan
with interest rates at 2 to 3 times that of traditional senior bank debt, along with an equity feature, such as
warrants. Since mezzanine financing is not directly tied to a borrowing base or an advance on accounts
receivable, the collateral requirements are much less stringent than that of senior debt, without having to
give up a large or controlling equity position.
Different financing mechanisms are appropriate at different stages of commercialization. Each financing
mechanism has its own pros and cons in overcoming hurdles typically faced on the path to
commercialization. The financing decision greatly impacts success or failure.
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Section 1 Introduction
Figure 1.3 Types of Financing
This study will address how biorenewables ventures succeed and fail, and answer the following questions
about biorenewables financing (excluding food, agricultural, and pharmaceuticals):
How are biorenewables ventures being funded or financed?
What are the pros and cons of each of the different financing modes?
Which ventures are being funded or financed?
Who is investing in biorenewables?
Who is financing biorenewables?
What sectors within biorenewables are growing?
How much is being invested, where, by who, in who, and how?
What is the typical path a company follows to fund the commercialization of its technology? What
are the different kinds of investment and financing that a company secures at different stages?
What companies have been successful in raising investments and why?
How does policy impact financing and investment?
What are the pitfalls? What is the „Valley of Death‟? Who does it affect? Who has survived it?
Who hasn‟t? Who is still there?
What hurdles do investors face when considering an investment? What metrics do they look for in
an attractive investment?
How can funding or financing decisions drive success or failure?
What are the common traits of success?
The study will provide subscribers with a solid background on global developments in biorenewables
(excluding food, agricultural, and pharmaceuticals) investment, financing, and industry directionality.
Nexant will analyze which specific subsectors of biorenewables and technologies are receiving attention.
Nexant will utilize its extensive network of primary and secondary resources to provide unique industry
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Revolving and term loans
Fully collateralized by tangible assets
Short term
Amortization schedules
May require personal guarantees
Generally 2nd Lien Term Loans
Requires positive cash flows
Long term capital with limited or no
amortization
Flexible and customized
May include warrants
May include liquidation, conversion,
callability, and voting rights
May carry dividend
Long term capital
No amortization
Dilutive
Highly dilutive, may result in loss of
control
May require board seats
Long Term Capital
No amortization
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Section 1 Introduction
insights into the challenges faced in commercializing biorenewables, with a dissection of investments
made, as well as case studies of both success and failure.
Nexant has assisted in numerous significant biorenewables techno-economic and financial due
diligences, investments, financing, acquisitions, IPOs and joint ventures, which is an invaluable
touchstone for the proposed analysis. Nexant‟s multi-client report will be useful to those private and
government organizations, either providing or seeking financing, and wishing to understand how
companies can make use of the different financing mechanisms available to them to successfully
commercialize biorenewables.
This prospectus describes Nexant‟s multi-client study, the scope of the proposed report, the methodology
to be used, and Nexant‟s qualifications to perform such a study. The study is expected to be completed
by the end of Q3 2014.
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Section 2 Report Scope
2.1 OBJECTIVE
The study objective is to analyze developments in biotech investment, financing, and industry
directionality. It will include analysis of investments made, as well as case studies of both success and
failure.
2.2 SCOPE
The study will survey and analyze investments and financing in the biotech sector (excluding food,
agricultural, and pharmaceuticals)
This report will analyze:
Who is receiving funding:
Technology types
Technology developers
In what regions/countries
How much funding is being received
In million U.S. dollars
Relative amounts
o To other sectors of biotech
o As compared to petrochemicals
Types and levels of financing
Debt vs. equity
What sectors and subsectors are receiving the most funding
Fuels vs. bulk chemicals vs. specialty chemicals vs. fine chemicals
Fungible products vs. functional replacements
Polymer related vs. non-polymer
Obstacles to financing and/or success
Valley of death
Technologies in “stealth mode”
Impacts of policy
Key metrics considered by investors
Stage at which each type of financing usually obtained
Industry trends and developments
Trends in funding
Trends in financing
Key acquisitions
Impacts of trends
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Section 2 Report Scope
How funding and financing decisions can drive success and failure
Case Studies of successes and failures in:
o Venture or early stage investing
o Private Equity
o Public or private company investment
o Acquisitions
o IPOs
o Loan Guarantees / Grants
Within this overall scope, the following regions will be investigated:
2.2.1 Regional Coverage
The report will focus on investment and financing activities in the following regions and countries with
significant activity:
North America
United States
Canada
Europe
Germany
United Kingdom
France
South America
Brazil
Asia
China
India
Malaysia
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Section 3 Proposed Table of Contents
Section
1 Executive Summary .............................................................................................................
1.1 OVERVIEW ...............................................................................................................
1.2 INVESTMENT AND FINANCE AMOUNTS ...............................................................
1.2.1 Global Overview ...........................................................................................
1.2.2 North American Overview ............................................................................
1.2.3 South American Overview ............................................................................
1.2.4 European Overview ......................................................................................
1.2.5 Asian Overview ............................................................................................
1.3 OBTAINING INVESTMENT AND FINANCING ........................................................
1.3.1 Types and Levels ........................................................................................
1.3.2 Obstacles .....................................................................................................
1.3.3 Stage of Development ..................................................................................
1.4 INDUSTRY TRENDS ................................................................................................
1.4.1 Overall Global and Regional Trends ............................................................
1.4.2 Trends in Investment ....................................................................................
1.4.3 Trends in Financing ......................................................................................
1.4.4 Trends in Policy ............................................................................................
1.4.5 Impact of Trends ..........................................................................................
1.5 COMPANY CASE STUDIES: SUCCESSES AND FAILURES .................................
1.5.1 Funding by Private Equity ............................................................................
1.5.2 Private or Public Company Investment ........................................................
1.5.3 Acquisition ....................................................................................................
1.5.4 IPO ...............................................................................................................
1.5.5 Loan Guarantee/Grant .................................................................................
1.5.5 Other.............................................................................................................
2 Introduction...........................................................................................................................
2.1 OVERVIEW ...............................................................................................................
2.2 SCOPE ......................................................................................................................
3 Investment and Financing Amounts .................................................................................
3.1 GLOBAL ....................................................................................................................
3.1.1 By Sub-Sectors ............................................................................................
3.1.2 By Technology Types ...................................................................................
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Section 3 Proposed Table of Contents
3.1.3 By Funding Type ..........................................................................................
3.1.4 By Region/Country .......................................................................................
3.1.5 Comparison to Petrochemicals Industry ......................................................
3.2 NORTH AMERICA ....................................................................................................
3.2.1 By Sub-Sectors ............................................................................................
3.2.2 By Technology Types ...................................................................................
3.2.3 By Funding Type ..........................................................................................
3.2.4 Country Case Studies: USA and Canada ....................................................
3.3 SOUTH AMERICA ....................................................................................................
3.3.1 By Sub-Sectors ............................................................................................
3.3.2 By Technology Types ...................................................................................
3.3.3 By Funding Type ..........................................................................................
3.3.4 Country Case Studies: Brazil .......................................................................
3.4 EUROPE ...................................................................................................................
3.4.1 By Sub-Sectors ............................................................................................
3.4.2 By Technology Types ...................................................................................
3.4.3 By Funding Type ..........................................................................................
3.4.4 Country Case Studies: Germany, UK, and France ......................................
3.5 ASIA ..........................................................................................................................
3.5.1 By Sub-Sectors ............................................................................................
3.5.2 By Technology Types ...................................................................................
3.5.3 By Funding Type ..........................................................................................
3.5.4 Country Case Studies: China, India, and Malaysia ......................................
4 Obtaining Investment and Financing .................................................................................
4.1 TYPES AND LEVELS ...............................................................................................
4.1.1 Debt Financing .............................................................................................
4.1.2 Equity Investment .........................................................................................
4.2 OBSTACLES .............................................................................................................
4.2.1 Valley of Death .............................................................................................
4.2.2 Policy Implications ........................................................................................
4.2.3 "Stealth Mode" ..............................................................................................
4.2.2 Key Metrics ...................................................................................................
4.3 STAGE OF DEVELOPMENT ....................................................................................
4.3.1 Early Stage ...................................................................................................
4.3.2 Midterm ........................................................................................................
4.3.2 Mature ..........................................................................................................
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Section 3 Proposed Table of Contents
5 Industry Trends ....................................................................................................................
5.1 OVERALL GLOBAL AND REGIONAL TRENDS ......................................................
5.1.1 Global ...........................................................................................................
5.1.2 Regional .......................................................................................................
5.1.3 Sectorial .......................................................................................................
5.2 TRENDS IN INVESTMENT .......................................................................................
5.2.1 Global ...........................................................................................................
5.2.2 Regional .......................................................................................................
5.2.3 Sectorial .......................................................................................................
5.3 TRENDS IN FINANCING ..........................................................................................
5.3.1 Global ...........................................................................................................
5.3.2 Regional .......................................................................................................
5.3.3 Sectorial .......................................................................................................
5.4 KEY ACQUISITIONS ................................................................................................
5.4.1 Global ...........................................................................................................
5.4.2 Regional .......................................................................................................
5.4.3 Sectorial .......................................................................................................
5.5 TRENDS IN POLICY .................................................................................................
5.5.1 Global ...........................................................................................................
5.5.2 Regional .......................................................................................................
5.5.3 Sectorial .......................................................................................................
5.6 IMPACT OF TRENDS ...............................................................................................
5.6.1 Global ...........................................................................................................
5.6.2 Regional .......................................................................................................
5.6.3 Sectorial .......................................................................................................
6 Company Case Studies: Successes and Failures ............................................................
6.1 PRIVATE EQUITY .....................................................................................................
6.1.1 Successes ....................................................................................................
6.1.2 Failures .........................................................................................................
6.2 PRIVATE OR PUBLIC COMPANY INVESTMENT ...................................................
6.2.1 Successes ....................................................................................................
6.2.2 Failures .........................................................................................................
6.3 ACQUISITION ...........................................................................................................
6.3.1 Successes ....................................................................................................
6.3.2 Failures .........................................................................................................
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Section 3 Proposed Table of Contents
6.4 IPO ............................................................................................................................
6.4.1 Successes ....................................................................................................
6.4.2 Failures .........................................................................................................
6.5 LOAN GUARANTEE/GRANTS .................................................................................
6.5.1 Successes ....................................................................................................
6.5.2 Failures .........................................................................................................
6.6 OTHER ......................................................................................................................
6.6.1 Successes ....................................................................................................
6.6.2 Failures .........................................................................................................
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Section 4 Methodology
The evaluations are based on Nexant‟s in-house information and contacts with experts and stakeholders
in the industry. Commercial information is developed from Nexant‟s extensive in-house databases,
augmented with selected regional fieldwork. Market projections are developed based on Nexant‟s in-
house modeling systems and experience.
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Section 5 Nexant’s Experience
5.1 GENERAL
Nexant uses multidisciplinary project teams drawn from the ranks of our international staff of engineers,
chemists, economists and financial professionals, and from other Nexant groups to respond to the
requirements of each assignment. Most of the consulting staff possesses credentials in both scientific
and commercial disciplines plus substantial industrial experience. The collective talents of our staff are
strategically located and closely linked throughout the world, resulting in valuable insights gained through
a variety of perspectives.
Nexant is an international consultancy and is dedicated to assisting businesses within the global energy,
chemical, plastics, and process industries by providing incisive, objective, results-oriented management
consulting. Over four decades of significant activity translates into an effective base of knowledge and
resources for addressing the complex dynamics of specialized marketplaces. By assisting companies in
developing and reviewing their business strategies, in planning and implementing new projects and
products, diversification and divestiture endeavors and other management initiatives, Nexant helps clients
increase the value of their businesses. Additionally, we advise financial firms, vendors, utilities,
government agencies and others interested in issues and trends affecting industry segments and
individual companies.
The Nexant Group was formed as an independent global consulting company in 2000, combining a
number of companies that had a long history of providing consultancy services to the chemical and
refining-related industries. Nexant‟s experience covers all aspects of project development relating to
major refinery, petrochemical, and polymer investments, ranging from grassroots plants to revamps of
existing process units. Nexant‟s key offices serving the petrochemical and downstream oil sectors are
located in New York, Houston, London, Bangkok, and Bahrain, and locations for other offices are shown
in Figure 5.1.
Figure 5.1 Nexant Office Locations
From major multinationals to locally based firms and governmental entities, our clients look to us for
expert judgment in solving compelling business and technical problems and in making critical decisions.
San Francisco
White Plains, NY
Tokyo
Washington
London
BangkokHouston
Main Offices
Representative Offices
Buenos Aires
Singapore
Seoul
Beijing
Shanghai
Bahrain
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Section 5 Nexant’s Experience
Nexant‟s clients include most of the world‟s leading oil and chemical companies, financial institutions, and
many national and regional governments. Nexant, Inc. is active in most of the industrialized countries of
the world, as well as in most of the developing areas including the Middle East, Africa, and East and
Southeast Asia.
Major annual subscription programs are:
Process Evaluation/Research Planning (PERP)
Petroleum & Petrochemical Economics (PPE) – United States, Western Europe, and Asia
Polyolefin Planning Service (POPS)
The PERP program covers technology, commercial trends, and economics applicable to the chemical
industry. The program has more than 40 subscribers, including most of the major international chemical
companies. Many of the processes to be analyzed in this multi-client study have been assessed in the
PERP program.
The PPE program provides historic and forecast analysis of the profitability, competitive position, and
supply/demand trends of the global petroleum and petrochemical industry. The program includes
capacity listings and analysis, global supply, demand and trade balances, profitability, competitiveness,
and price analysis and projections for all the major petrochemical value chains. The PPE program is
supported by an internet-based planning and forecasting tool that provides online access to the database
behind the reports of the PPE program.
The POPS program provides reports on the global polyethylene and polypropylene industry. It is
recognized globally as the benchmark source for detailed information and analysis on current
commercial, technical, and economic developments in the polyolefins industry. Coverage includes:
capacity listing and analysis, detailed consumption, supply/demand, trade, operating rates, price
forecasts, technological developments, new products, inter-material substitution, and regional
competitiveness.
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Section 5 Nexant’s Experience
5.2 ASSIGNMENTS UNDERTAKEN WHICH COVER BIOFEEDSTOCKS, BIOCHEMICALS, AND/OR BIOFUELS
5.2.1 Single Client Studies
Nexant has undertaken the following techno-economic and financial due diligence assignments in bio-
based chemicals, fuels and feedstocks, as well as technology, economic, market and business strategy
assessments in bio-based chemicals, fuels, and feedstocks:
5.2.1.1 Due Diligences For Multinational Banking Syndicates towards IPOs
In advance of IPOs, Nexant performed comprehensive techno-economic analysis, including assessing
technology and markets. In such capacities, Nexant has investigated and evaluated multiple conversion
technologies; including cellulose hydrolysis as well as thermochemical platforms for products from
biomass, and algae based and isoprenoid based product platforms.
Sugar-fed Yeast Fermentation Technical and Market Due Diligence – Nexant performed a
technical and market due diligence on a U.S. sugar-fed yeast fermentation process producing
isoprenoid hydrocarbons; assessed process platform, demonstration and commercial plant
designs for Brazil – this IPO closed
Heterotrophic Algae Fermentation Technical and Market Due Diligence – Nexant performed
a technical and market due diligence on a U.S. sugar-fed heterotrophic algae fermentation
process and first of a kind project to produce tailored oils with a wide range of applications from
chemicals, to food, to personal care – this IPO closed
Biomass Gasification Technical Due Diligence – Technical due diligence on a novel
gasification process to produce renewable fuels from municipal solid waste-derived syngas in the
U.S.
Cellulosic Ethanol Fermentation Technical Due Diligence – Technical due diligence on a
novel cellulosic ethanol fermentation process in the U.S.
Cellulosic Butanol Fermentation Technical Due Diligence in China – Technical due diligence
on a novel Chinese cellulosic fermentation butanol process
In-silico Fermentation Technical Due Diligence – Technical and market due diligence on a
U.S. in-silico fermentation platform and renewable chemicals project – this IPO closed
Catalytic Metathesis Technical and Market Due Diligence – Technical and market due
diligence on a U.S. process platform and project to employ proprietary catalytic metathesis to
convert fatty acids or alcohols to more functional, higher-value products for global deployment –
this IPO closed
5.2.1.2 Due Diligences For Venture Capital, Private Equity Investors or Other Lenders
Techno-Economic and Market Due Diligence on Thermophilic Autothermal Fermentation –
Nexant conducted a techno-economic and market due diligence on a novel Canadian “Enhanced
Aerobic Thermophilic Autothermal” fermentation process and a first of a kind commercial project
that was built in New Jersey to convert food wastes and other putrescible wastes to special
fertilizer, organic fungicide, and soil amendment, utilizing a tax-exempt New Jersey Economic
Development Authority Solid Waste Revenue Bond, and bank loans, and other private financing
Techno-Economic and Market Due Diligence on 3 dry-mill grain ethanol plants – For a
consortia of multi-national banks, Nexant conducted techno-economic and market due diligences
on three projects to build dry-mill grain ethanol plants in various European countries using
conventional licensed technology
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Section 5 Nexant’s Experience
Technology Adaptation Techno-Economic Due Diligence – For a U.S. private equity firm,
Nexant conducted a techno-economic due diligence on a process facility to adapt a European
technology to a U.S. facility to clean recycled PET bottles for re-use in food packaging or
beverage bottling
Biodiesel Transesterification Techno-Economic and Market Due Diligence – For a
consortium of U.S. and multinational banks, Nexant conducted a techno-economic and market
due diligence on a unique biodiesel (FAME) transesterification process, as well as supply logistics
for waste fats, oils, and greases, business model, and project deployments at various US sites
Production of Cellulosic Sugars Technical Due Diligence – For a U.S. venture capital firm,
Nexant performed a technical due diligence on a European process platform and demonstration
project to produce cellulosic sugars for fermentation to ethanol or other products, with a view
towards deployment in the U.S. and elsewhere
Production of Cellulosic Sugars Technical Due Diligence – For regional banks, with a USDA
loan guarantee, a technical due diligence was done on a project utilizing a European process to
produce cellulosic sugars from a seasonally varying set of biomass feedstocks for fermentation to
ethanol in a commercial integrated biorefinery at a U.S. site
Novel Pyrolysis Technical and Market Due Diligence – Nexant performed a technical and
market due diligence on a first of a kind installation of a modular microwave-assisted pyrolysis
process to convert contaminated mixed plastics wastes (such as discarded agricultural film) to a
range of value-added liquid hydrocarbons such as lube oils, naphtha, and waxes, towards
investment in additional modules and facilities at other sites
Para-xylene Technical Due Diligence – Nexant performed two rounds of technical due
diligence, first with a bench-scale demo, and a second with a running pilot plant, on a novel multi-
step thermochemical process to convert with high yield and selectivity waste cardboard and other
cellulosic post-consumer wastes to para-xylene
Nano-catalyst Technical and Market Due Diligence – Financed by the prospective investor,
Nexant conducted a technical and market due diligence and assisted in developing process
concepts and business models for monetizing a unique bio-based platform for multi-functional
nano-catalyst design and production, and towards obtaining seed financing from this high-profile
venture capital firm and its syndicate
N-butanol Technical and Market Due Diligence – For a CleanTech/biotech-focused venture
capital firm, Nexant performed a technical and market due diligence on an improved version of
the classic ABE clostridium-based n-butanol fermentation and its first commercial design
5.2.1.3 Due Diligences For Strategic Business Investors and Prospective Partners
Advanced Biobutanol Process Technology, Economic, and Market Due Diligence - For a
prospective investor in this technology development, Nexant performed a broad-based feasibility
study/due diligence with the full cooperation of the developer providing R&D data and existing
business models for critique. Butanol was examined for its proposed fuel potential as well as for
its large existing market as a solvent and chemical feedstock. The economics of the incumbent
petrochemical route was compared
Yeast Fermentation Technical and Market Due Diligence – For a Brazilian investor/
prospective partner, Nexant performed a technical and market due diligence on a US sugar-fed
yeast fermentation process producing isoprenoid hydrocarbons, with evaluation of process
platform status, demonstration assessment, and assessment of potential to feed cellulosic sugars
in Brazil
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Section 5 Nexant’s Experience
Succinic acid Fermentation Market Due Diligence – For a foreign investor, Nexant performed
a market due diligence on a novel succinic acid fermentation process and the first commercial
plant design in a biorefinery in the U.S.
Saccharification of Cellulosic Biomass Technical and Market Due Diligence – For a U.S.
banking syndicate and with a U.S. federal loan guarantee, Nexant performed a technical and
market due diligence on the applicability of a U.S. company‟s enzymatic system for
saccharification of cellulosic biomass in a specific cellulosic ethanol facility and in other processes
Algae Technology Techno-Economic and Market Due Diligence – For a Southeast Asian
national Energy and Petrochemical company, Nexant performed a techno-economic and market
due diligence on an algae technology with a unique PBR system and its proposed fuel and
renewable chemical product slate
Syngas to Chemicals and Fuels Techno-Economic Due Diligence – For a major Asia-based
diversified chemical giant, Nexant performed a techno-economic due diligence on a novel U.S.-
New Zealand technology, with an assessment of pilot plant scale-up, and competitive issues for
their process platform that utilizes a bacterial fermentation to convert CO and CO2 in stack gases
and waste-derived syngas to produce a range of fuels and chemicals
Plasma Gasification Techno-Economic and Market Due Diligence – For a leading
multinational airline, Nexant performed a techno-economic and market due diligence on a U.S.
plasma gasification technology and first of a kind gasification complex in Europe to produce bio-
jet fuel and other hydrocarbon fuels by gasification of municipal solid waste
Biomass Gasification Market and Financial Due Diligence – For a strategic investor, Nexant
conducted a market and financial assessment of a biomass gasification technology and its
business plan for commercial operation in the field, which included civilian and military
applications
Biomass to Chemicals Techno-Economic Due Diligence – Nexant conducted a techno-
economic due diligence on a novel technology seeking to catalytically convert biomass
feedstocks into fungible chemical intermediates, and downstream integration to drop-in
replacement derivatives such as polyolefins
5.2.1.4 Other Technology, Economic and Market Assessments
Financial Due Diligence - Analysis of a renewable route to succinic acid and potentially to adipic
acid and other valuable green chemical intermediates. Examines technology, intellectual
property position, market potential, and competitor positioning
“Forest Refinery” Industry Evaluation - A U.S. national laboratory retained Nexant to assess
the technical and economic feasibility of a forest refinery designed to manufacture chemical
products from trees. The analysis screened a variety of biomass conversion technologies and
compared the production costs and energy consumption levels of each route to conventional
routes. Processes evaluated included fermentation, lignocellulose separation, lignin conversion
and gasification
Hunest Biorefinery Market Study - A project to revitalize a former Nitrokemia site in Hungary to
convert circa 200,000 tons per year of biomass into biopolymers, green solvents, and
intermediates. Nexant was engaged to undertake a market study of the commercial opportunities
for the project covering mainly pricing and the European market in order to guide the company in
developing its marketing strategy for the project
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Biochemical Opportunities in the United Kingdom - The National Non Foods Crops Centre
(NNFCC) engaged Nexant to provide a focused analysis of renewable chemical opportunities in
the United Kingdom. The project was in part undertaken to gain a better understanding of the
opportunities for the United Kingdom to integrate renewable feedstocks into its chemical
manufacturing base. Nexant‟s analysis was used to support the development of research and
development programs in both academia and industry organizations
Fermentation Routes to Adipic Acid: Petrochemical Competitive Benchmarking - For a
developer of fermentation routes to Adipic Acid (nylon intermediate), this study was to provide
analyses of conventional petrochemical routes, issues over nitric oxide emissions, and other
critical factors
Sustainability and Plastics - Client was interested in understanding how increased awareness
of environmental issues and of the related initiatives might impact the polyolefins business in the
future and asked Nexant to provide a high level review of the following conventional polymer
displacement threats to conventional polymers: biodegradable polymers, bio-based polymers,
and recycling. The main focus was on polypropylene in North America, but wider issues were
also considered
Fermentation Routes to Bio-Succinic Acid/BDO – In a series of studies for a number of
different stakeholders, Nexant evaluated technologies, markets, and competition for fermentation
routes being developed for this potential raw material for polybutylsuccinate, 1,4-butanediol, and
other chemicals derivatives, and compared to petrochemical routes
PLA – For this key renewable, biodegradable commodity polymer, polylactic acid, or polylactide
(PLA) made from corn or sugar substrates, Nexant evaluated production technologies and
markets for a number of different stakeholders
Chemicals by Depolymerization of PHAs: Petrochemical Competitive Benchmarking – For
a developer of fermentation and crop-based PHA (polyhydroxyalkanoates) production that was
exploring the feasibility of depolymerizing these natural polyesters to make commercial chemicals
(monomers, intermediates, solvents, etc.), Nexant provided analysis of the same C3 and C4
chemicals production via petrochemical routes, and assisted in developing process and cost
models of the speculative depolymerization routes
Hydrocarbon Fuels and Chemicals via Sugar Fermentation: Process Development
Assistance – For a biotech developer of sugar fermentation routes to C5 hydrocarbon-based
(isoprene homologues) for vehicle fuels, chemical intermediates and specialty chemicals, this
was a series of three projects to provide assistance, including process flow sheet and capital
expenditure review, troubleshooting, and cost reduction strategies, product recovery studies, and
process safety analyses
Biopolymers for Beverage and Food Packaging – For a U.S.-based, leading, multinational
beverage and food company, Nexant performed a study of the technical and economic feasibility
of using, and issues around, selected bio-based polymers for packaging in the future, including
PLAs, PHAs, green polyethylene, and others. For this, evaluated and compared three radically
different emerging routes to green p-xylene production for feeding production of green PTA to
react with green MEG to make 100 percent green PET bottle (and fiber) resin
Bio-ethylene for Beverage and Food Packaging – For another U.S.-based, leading,
multinational beverage and food company, Nexant performed a study of the technical and
economic feasibility of using, and issues around, green polyethylene. For this, Nexant evaluated
and compared green MEG production for PET bottle (and fiber) resin
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Biopolymer Value Chain – Investigate renewable feedstocks for biopolymers, biopolymer
compounding and polylactide
Fermentation Propanol to Green Propylene – Confidential - This report identifies discusses
four routes to producing propylene from renewable feedstock (corn, sugarcane, and glycerine).
Bio-propylene, bio-based chemicals, biological route, biotechnology, genetically modified
organism (GMO), bacteria are included in the study
Chemicals from Corn - This was a broad-based study for the National Corn Growers
Association (NCGA), funded by the U.S. DOE, to identify and screen chemicals that could be
feasibly produced from corn. The study considered a wide range of potential sugars, and
fermentation-derived acids, alcohols, and other building blocks, but emphasized fuel ethanol
derivatives, including basic petrochemicals, solvents, intermediates and specialties, and
application of the Reactive Distillation technology sponsored by the NCGA. The basic economics
of ethanol production and potential improvements, economies of scale, logistics, and other
production and value chain issues, are addressed in the study
5.2.2 Multiclient Work
During the past ten years, Nexant has completed a number of major multi-subscriber studies. Selected
multi-subscriber studies which included coverage of biochemicals and biofeedstocks include:
PERP Report 2013-S1 Project Development and Financing: Keys to Success – This report
covers the key steps to a successful project implementation, from screening and feasibility
studies, front end engineering design (FEED) and securing financing, through engineering,
procurement, construction (EPC) and plant commissioning
Cellulosic Sugars: Unlocking Biomass’ Potential – A study of the emerging biotechnology,
processing technologies and economics of producing and recovering commodity sugars and/or
direct products (e.g., ethanol) from cellulosic biomass as well as a comparison to conventional
routes
Bio-Based Chemicals: Going Commercial – A survey of the emerging biotechnology,
processing technologies, announced project capacities, and a risk adjustment of these
announced capacities. This included coverage of commodity monomers and polymers, as well
as emerging polymers (e.g., succinic acid and/or 1,4-butanediol for polybutylene succinate)
Biotransformation Routes to Specialty Chemicals – Includes consideration of conversions of natural oils, fatty acids, fatty acid esters, fatty alcohols and fatty amines, and fermentation technologies and commercial overviews of many bio-based product markets
Liquid Biofuels: substituting for petroleum – A study of the technical, commercial and
strategic outlook for the production of liquid biofuels that can substitute for conventional
petroleum-derived gasoline and diesel fuels that seeks to answer questions about feedstock
availability, technological developments for primary biofuels as well as competitiveness with
conventional petroleum fuels
Plants to Plastics – A study of the emerging biotechnology, processing technologies and
economics of producing and recovering commodity polymers such as polyethylene,
polypropylene, polyethylene terephthalate, and others as well as a comparison to conventional
routes
PERP Report 09/10S4 Biobased Commodity Feedstocks – A study of the technology, and
economics of producing commodity biofeedstocks; work from this report will be updated and
greatly expanded upon in the current report
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PERP Report 06/07S11 “Green” Polyethylene – A study of the emerging biotechnology,
processing technologies and economics of producing and recovering polyethylene, and a
comparison to conventional routes
PERP Report 07/08S11 “Green” Polypropylene – A study of the emerging biotechnology,
processing technologies and economics of producing and recovering polypropylene, and a
comparison to conventional routes
PERP Report 06/07S4 Glycerin Conversion to Propylene Glycol – A study of the emerging
biotechnology, processing technologies and economics of producing and recovering propylene
glycol from glycerine, and a comparison to conventional routes
PERP Report 08/09S11 Plants as Plants (PHAs) – A study of the emerging biotechnology,
processing technologies and economics of producing and recovering
polyhydroxyalkanoates(PHAs), as an alternative to conventional polyesters
PERP Report 00/01S3 Biotech Route to Lactic Acid/Polylactic Acid – A study of emerging
biotech routes to lactic acid and polylactic acid. Processing technologies, and economics of
producing and recovering lactic acid and polylactic acid are investigated
PERP Report 08/09S7 “Green” Acetyls – A study of emerging biotech routes to acetic
chemistry. Processing technologies, and economics of producing and recovering acetates are
investigated
PERP Report 09/10S8 “Green” Glycols and Polyols – A study of emerging biotech routes to
glycols and polyols (e.g., propylene glycol and sorbitol). Processing technologies, and economics
of producing and recovering glycols and polyols are investigated
Bio-Acrylic Acid and Derivatives – A study of the emerging biotechnology, processing
technologies and economics of producing and recovering bio-acrylic acid as well as a comparison
to conventional routes
Nexant‟s Energy and Chemical‟s Advisory division has also completed a number of definitive studies on
specific regions. These studies have analyzed the business structure and opportunities for many of the
chemicals covered in this proposed study within the context of a changing economic environment. In
addition to these studies, Nexant‟s Energy and Chemical‟s Advisory division maintains a global
commercial and techno-economic database covering the principal petrochemicals, intermediates, and
polymers.
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Section 6 Contact Details
USA
Nexant, Inc.
44 South Broadway, 4th Floor
White Plains, NY 10601-4425
U.S.A.
Attn: Mr. Steven R. Slome
Senior Consultant
Tel: + 1-914-609-0379
Fax: + 1-914-609-0399
e-mail: [email protected]
EUROPE
Nexant Limited
1 King's Arms Yard, 1st Floor
London EC2R 7AF
United Kingdom
Attn: Anna Ibbotson
Principal
Or
Attn: Mr. Chirag M. Kothari
Analyst
Tel: + 1-914-609-0346
Fax: + 1-914-609-0399
e-mail: [email protected]
ASIA
Nexant (Asia) Ltd
22nd Floor, Rasa Tower 1
555 Phahonyothin Road
Kwaeng Chatuchak, Khet Chatuchak
Bangkok 10900
Thailand
Attn: Tiankanok Sirichayaporn
Senior Consultant
Or
Attn: Heidi Junker Coleman
Global Programs Support Manager
Tel: + 1-914-609-0381
Fax: + 1-914-609-0399
e-mail: [email protected]
Nexant, Inc. San Francisco New York Houston Washington London Frankfurt Bahrain Bangkok Shanghai Beijing Kuala Lumpur www.nexant.com www.nexantthinking.com