Greg Jenkins, CEO. Biochemical Production: The Keys to Sustainability

Size: px

Start display at page:

Download "Greg Jenkins, CEO. Biochemical Production: The Keys to Sustainability"

Ginger Walsh
6 years ago
Views:

1 Greg Jenkins, CEO Biochemical Production: The Keys to Sustainability

commercializing a major technology breakthrough in cellulosic biomass

2 Ciris - Producing Biochemicals from Cellulosic Biomass Focused on the Transformation of Residual Materials into Biochemicals Ciris is commercializing a major technology breakthrough in cellulosic biomass conversion Shareholders include top venture capital firms as well as industry-leading strategics 2

3 Ameridia ARI Siemens Veolia Hazen ADI KMX Merrick HDR World-Class Science and Engineering Globally recognized team, research facilities, analytical tools, and Oak Ridge NREL Argonne EERC Engineering & EPC partners leveraging multiple disciplines National Laboratories 9 PhDs 31 highly-qualified professionals & contractors 83 patents 1 Ciris Team & Facilities Ecole Polytechnique Federale de Lusanne FP Innovations 13,000 ft 2 state-of-the art facility, DNA sequencer, automated bioreactors, continuous and batch reactor equipment Software & Analytical Tools Aspen Plus Tribal LIMS Retrosynthesis Horizon Tech Purdue Colorado State Colorado School of Mines Univ. of Kentucky Universities & Institutes Michigan Biotech Institute Univ. of Puerto Rico Univ. of Costa Rica 1. Includes patents issued as well as applications pending/in process 3

Sustainability - A Global Challenge The world is facing major challenges brought on by the growing population and demand for resources Demand for food will stress productive capacity Soil and water

4 Sustainability - A Global Challenge The world is facing major challenges brought on by the growing population and demand for resources Demand for food will stress productive capacity Soil and water quality must be maintained to meet food demand The food vs. fuel argument is intensifying Energy and chemical demand place greater strain on fossil sources and the environment Concentration of energy resources adds to uncertainty and conflict 4

5 Global Demand for Chemicals is Increasing Reliance on Fragile, Concentrated Petroleum Supplies Increasing Share of Petroleum used for Chemicals Production Advancements in Biochemical Technology Will Reduce Reliance on Petroleum for Chemicals Production Source: BP, OPEC 5

6 Sustainability What are the keys? (in 10 minutes or less) 6

Key #1 - Don t Suspend Disbelief Building a Sustainable Business Requires a Clear Eyed View of Assumptions + In a world of massive and growing population, is it logical and sustainable to think food

7 Key #1 - Don t Suspend Disbelief Building a Sustainable Business Requires a Clear Eyed View of Assumptions + In a world of massive and growing population, is it logical and sustainable to think food supplies can be directed to fuel production? Slowing increase in crop yields vs. growing population would say no + Can high fuel prices be expected to support bio fuel prices without interruption? Decades of commodity price cycles including most recent drop in oil prices would suggest no + Are government subsidies a reasonable basis to sustain investment capital? Nearly every source of market based capital says no + Will consumers actually pay a green premium for sustainable products? Only the highest income and most socially conscientious consumers say yes, in other words, no 7

Key #2 - Adhere to Market Fundamentals Market Fundamentals Lead or Limit the Move to Sustainability + Meaningful contributions to sustainable energy and chemical supplies require social and economic

8 Key #2 - Adhere to Market Fundamentals Market Fundamentals Lead or Limit the Move to Sustainability + Meaningful contributions to sustainable energy and chemical supplies require social and economic benefits Durable economic returns in all commodity price cycles are required to attract meaningful capital Long project payouts requiring product prices at the high end of range are not financeable without artificial guarantees or subsidies; i.e., non-sustainable Requiring the perfect scenario of social consciousness, available capital, demand growth and government support is a bridge too far Oil Price-Volatility 8

9 Key #3 - Solving the Scale Challenge Project Scale - Where Plant Economics Meet Reality + To date cellulosic processes have required scale that is at odds with the waste feedstock supply and risk tolerance of capital Economic returns have required scale often exceeding supplies of low cost feedstock When feedstock is adequate for large scale, long EPC processes extend time that capital is at risk which then requires higher returns + Burning unconverted lignin to generate electricity is inefficient The scale required to economically produce power from residual lignin usually exceeds the available lignin stream Requires supplemental fuel for the boiler investment to be economic The result is an inefficient power plant vs. a cellulosic conversion plant 9

10 Key #4 - Avoiding the Concentration of Assets Sustainability Requires Avoiding the Current Challenges Faced in the Energy/Chemical Value Chain Highly concentrated supplies Diversified supplies Massive Scale Moderate scale 10

Key#5 - Collaboration & Integration Early Stage Industry Advancements Benefit from Joint Development and Joint Ventures + Limited pool of capital to support the evolution of technology makes for a

11 Key#5 - Collaboration & Integration Early Stage Industry Advancements Benefit from Joint Development and Joint Ventures + Limited pool of capital to support the evolution of technology makes for a heavy lift Joint development can lighten the load + Layer on technology components vs. developing each additional stage The true bio-refinery - following the petroleum refinery model Early stage companies can gain from joint venture development and demonstration 11

12 Chemical Production from Biomass is Sustainable Adherence to these Keys is Essential to Economic and Socially Sustainable Biochemical Production + Environmental: Utilize waste biomass, NOT food crops Shift chemicals production away from petroleum sources Don t burn residual material from process-no harmful emissions Close the environmental process: Residual material used as fertilizer replaces petroleum-based fertilizer + Social: Multiple benefits for health, local industry & economy Contribute to improved air, water and soil quality Establish local industry and creates jobs Support farmers: Adds additional value to agricultural products Reduce concentration of assets to reduce overall supply risk Ciris has established a major sustainable opportunity based on commitment to these keys 12

13 Thank You! Contact Us / 9155 East Nichols Avenue, Suite 200 Centennial, Colorado cirisenergy.com

TOWARDS A BIOBASED ECONOMY IN EUROPE: A ROLE FOR CEI

TOWARDS A BIOBASED ECONOMY IN EUROPE: A ROLE FOR CEI Presentation by Giorgio Rosso Cicogna, CEI Alternate Secretary General Steering Platform on Research for Western Balkan Countries Belgrade, 6 December