Nexant Complete Report template...Brochure April 2014 A50801.010. Special Reports This Report was prepared by Nexant, Inc. (“Nexant”) and is part of the NexantThinking™ suite

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

Special Reports: Brochure Biorenewables Financing Under the Microsope

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A50801.010.

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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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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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

Ris

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rn T

o L

end

er /

Inve

sto

r

Ris

k To

Bu

sin

ess

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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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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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 ............................................................................................


3.2.3 By Funding Type ..........................................................................................

3.2.4 Country Case Studies: USA and Canada ....................................................

3.3 SOUTH AMERICA ....................................................................................................

3.3.1 By Sub-Sectors ............................................................................................


3.3.3 By Funding Type ..........................................................................................

3.3.4 Country Case Studies: Brazil .......................................................................

3.4 EUROPE ...................................................................................................................

3.4.1 By Sub-Sectors ............................................................................................


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 ............................................................................................


3.5.3 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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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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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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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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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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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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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

[email protected]

Or

Attn: Mr. Chirag M. Kothari

Analyst

Tel: + 1-914-609-0346

Fax: + 1-914-609-0399


ASIA

Nexant (Asia) Ltd

22nd Floor, Rasa Tower 1

555 Phahonyothin Road

Kwaeng Chatuchak, Khet Chatuchak

Bangkok 10900

Thailand

Attn: Tiankanok Sirichayaporn

Senior Consultant

[email protected]

Or

Attn: Heidi Junker Coleman

Global Programs Support Manager

Tel: + 1-914-609-0381

Fax: + 1-914-609-0399


mailto:[email protected]





Nexant, Inc. San Francisco New York Houston Washington London Frankfurt Bahrain Bangkok Shanghai Beijing Kuala Lumpur www.nexant.com www.nexantthinking.com

http://www.nexant.com/

http://www.nexantthinking.com/

Documents

Nexant Complete Report template...Brochure April 2014 A50801.010. Special Reports This Report was prepared by Nexant, Inc. (“Nexant”) and is part of the NexantThinking™ suite