January/February 2012 Biorefining Magazine

INSIDE: A LEGAL PERSPECTIVE ON THE IPO PROCESS JANUARY/FEBRUARY 2012

Venturing

into the

Public

Space The IPO Trend and Why So Many Biorefining Firms Seek to Go Public Pages 14

Plus

The Tricky Nature of Government-Based Business Strategies Pages 18

www.biorefiningmagazine.com

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CONTENTS |

Ad Index 5 2

2012 International Biomass Conference & Expo

JANUARY/FEBRUARY ISSUE 2012 VOL. 03 ISSUE 1

FEATURES

2012 International Biorefining Conference & Trade Show

20

2012 Pacific West Conference & Trade Show

24

Algae Technology & Business

17

Burns & McDonnell

22

Novasep Process

16

Robert-James Sales, Inc.

14

FINANCE Venturing into the Public Space The lure of the IPO

BY ERIN VOEGELE

18

FEDERAL Why a Government-Based Business Strategy is Tricky When walking the government tightrope makes sense

BY LUKE GEIVER

CONTENTS

DEPARTMENTS 4

6

5

8

Editor’s Note

8

Continued Growth

BY RON KOTRBA

Advanced Advocacy

This Year Could Be a Game Changer

BY MICHAEL MCADAMS

9 11

Industry Events

Upcoming Conferences & Trade Shows

Legal Perspectives

The IPO Process

BY DEAN R. EDSTROM

Business Briefs

People, Partnerships & Deals

Startup

Biorefining News & Trends

Talking Point

Research, Process, Testing― Repeat

BY ROBERT BAILEY

JANUARY/FEBRUARY 2012 | Biorefining Magazine | 3

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EDITOR’S NOTE

EDITORIAL

Continued Growth

EDITOR Ron Kotrba rkotrba@bbiinternational.com ASSOCIATE EDITORS Erin Voegele evoegele@bbiinternational.com Luke Geiver lgeiver@bbiinternational.com Bryan Sims bsims@bbiinternational.com

RON KOTRBA, EDITOR RKOTRBA@BBIINTERNATIONAL.COM

COPY EDITOR Jan Tellmann jtellmann@bbiinternational.com

ART

After the congressional super committee failed to meet its deadline to agree on a bipartisan plan to cut federal spending and reduce the national deficit, the question for conventional and advanced biofuel producers was, how might this impact the chances of extending various expiring federal tax credits?

ART DIRECTOR Jaci Satterlund jsatterlund@bbiinternational.com GRAPHIC DESIGNER Elizabeth Burslie bburslie@bbiinternational.com

PUBLISHING CHAIRMAN Mike Bryan mbryan@bbiinternational.com

President of the Advanced Biofuels Association Michael McAdams said most people who still had any hope that these tax incentives would be renewed thought the best chance for an extenders package would be to attach one to the super committee effort. “How,” McAdams asked, “do you do an extenders package with no vehicle? Do you simply deficit finance it? That would be politically awkward following the public failure to reach a deficit deal. Or do you come up with offsets and try and move certain pieces to spur the economy?”

Despite the lack of tax code support expected this year, advanced biofuels and biobased chemicals will continue making headway in the marketplace. Lux Research generated a new report, titled “Nations Race to Build Alternative Fuel Capacity,” in which the lead author of the report, Andrew Soare, writes, “The market is shifting to secondgeneration fuels like renewable diesel and cellulosic ethanol. These fuels bypass the major logistical hurdles of first-gen alternative fuels, and investors, as well as governments, are realigning investment to grow capacity.”

The report projects that in 2015, next-generation renewables such as biobutanol, renewable gasoline, biojet and biocrude, will reach a combined 3.2 billion gallons, a respectable commercial volume for this emerging industry.

FOR MORE NEWS, INFORMATION AND PERSPECTIVE, VISIT BIOREFININGMAGAZINE.COM/BLOG/READ/BIOREFINING

ASSOCIATE EDITORS Erin Voegele writes “Venturing into the Public Space” on page 14, a featured article that dives into the IPO trend and determines what it all means for advanced biofuels, biobased chemicals and the biorefining sector at large.

Luke Geiver authors a feature article this month titled “Why a Government-Based Business Strategy is Tricky” on page 18, a story about when it’s right, or not so right, for biorefining firms to pursue government grants, loans and other funding.

4 | Biorefining Magazine | JANUARY/FEBRUARY 2012

CEO Joe Bryan jbryan@bbiinternational.com VICE PRESIDENT Tom Bryan tbryan@bbiinternational.com

SALES VICE PRESIDENT, SALES & MARKETING Matthew Spoor mspoor@bbiinternational.com EXECUTIVE ACCOUNT MANAGER Howard Brockhouse hbrockhouse@bbiinternational.com SENIOR ACCOUNT MANAGER Jeremy Hanson jhanson@bbiinternational.com ACCOUNT MANAGERS Chip Shereck cshereck@bbiinternational.com Marty Steen msteen@bbiinternational.com Bob Brown bbrown@bbiinternational.com Andrea Anderson aanderson@bbiinternational.com Dave Austin daustin@bbiinternational.com CIRCULATION MANAGER Jessica Beaudry jbeaudry@bbiinternational.com ADVERTISING COORDINATOR Marla DeFoe mdefoe@bbiinternational.com SENIOR MARKETING MANAGER John Nelson jnelson@bbiinternational.com

Customer Service Please call 1-866-746-8385 or email us at service@bbiinternational.com. Subscriptions to Biorefining Magazine are free of charge to everyone with the exception of a shipping and handling charge of $49.95 for any country outside the United States, Canada or Mexico. To subscribe, visit www.biorefiningmagazine.com or you can send your mailing address and payment (checks made out to BBI International) to: Biorefining Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You can also fax a subscription form to (701) 746-5367. Back Issues, Reprints and Permissions Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at (701) 746-8385 or service@bbiinternational.com. Advertising Biorefining Magazine provides a specific topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To find out more about Biorefining Magazine advertising opportunities, please contact us at (701) 746-8385 or service@bbiinternational.com. Letters to the Editor We welcome letters to the editor. Send to Biorefining Magazine Letters to the Editor, 308 2nd Ave. N., Suite 304, Grand Forks, ND 58203 or e-mail to rkotrba@bbiinternational.com. Please include your name, address and phone number. Letters may be edited for clarity and/or space.

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EVENTS CALENDAR |

Pacific West Biomass Conference & Trade Show

April 16-19, 2012

January 16-18, 2012

San Francisco Marriott Marquis San Francisco, California With an exclusive focus on biomass utilization in California, Oregon, Washington, Idaho and Nevada—the Pacific West Biomass Conference & Trade Show will connect the area’s current and future producers of biomass-derived electricity, industrial heat and power, and advanced biofuels, with waste generators, aggregators, growers, municipal leaders, utility executives, technology providers, equipment manufacturers, investors and policy makers.

(866)746-8385 www.biomassconference.com/pacificwest

International Biomass Conference & Expo

April 16-19, 2012 Colorado Convention Center Denver, Colorado A New Era in Energy: The Future is Growing Organized by BBI International and coproduced by Biomass Power & Thermal and Biorefining Magazine, this event brings current and future producers of Bioenergy and biobased products together with waste generators, energy crop growers, municipal leaders, utility executives, technology providers, equipment manufacturers, project developers, investors and policy makers. It’s a true one-stop shop—the world’s premier educational and networking junction for all biomass industries. Early Bird registration rate expires March 5.

(866)746-8385 www.biomassconference.com

International Fuel Ethanol Workshop & Expo

June 4-7, 2012

Minneapolis Convention Center Minneapolis, Minnesota Evolution Through Innovation Now in its 28th year, the FEW provides the ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-tobusiness environment. As the largest, longest running ethanol conference in the world, the FEW is renowned for its superb programming—powered by Ethanol Producer Magazine. Presentation ideas are being accepted online through Feb. 10.

(866)746-8385 www.fuelethanolworkshop.com

Colorado Convention Center Denver, Colorado

The Largest Biomass Industry Networking Event in the World!

Sponsorships and Exhibit Space

Now Available

The International Biomass Conference & Expo is anticipated be even larger than last year’s successful event. With an anticipated 1,500 attendees, 230 exhibitors, 120 speakers and 60 sponsors, you’ll experience firsthand why the majority of our past exhibitors and sponsors have walked away with valuable contacts and sales leads.

Register Today and Grow Your Future.

CONTACT US: 866-746-8385 service@bbiinternational.com Follow Us: twitter.com/biomassmagazine

A New Era in Energy: The Future is Growing Sponsors as of December 8, 2011

International Biorefining Conference & Trade Show

November 27-29, 2012 Hilton Americas - Houston Houston, Texas Organized by BBI International and produced by Biorefining Magazine, the International Biorefining Conference & Trade Show brings together agricultural, forestry, waste, and petrochemical professionals to explore the value-added opportunities awaiting them and their organizations within the quickly maturing biorefining industry. Contact a knowledgeable account representative to reserve booth space now.

(866)746-8385 www.biorefiningconference.com JANUARY/FEBRUARY 2012 | Biorefining Magazine | 5

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ADVANCED ADVOCACY

This Year Could Be a Game Changer Full funding of $510 million government commitment, renewed tax support still needed

BY MICHAEL McADAMS

E

lections hav have consequences— an old but true adage in Washington. America’s domestic biofuels industry experienced firsthand diminishing support for the entire renewable energy sector as a consequence of the 2010 election. A quick look at recent national polls and you’ll find support for renewable energy decreasing, although it remains above 50 percent. The coming year will see a debate between candidates of all sizes, shapes, parties and views, a milestone opportunity for the greater renewables industry. An opportunity that demands pulling together of resources across the board to make sure candidates and voters understand the importance of America building and maintaining a broad renewables portfolio approach to our nation’s energy, economic and national security policies.

There are no silver bullets in the traditional hydrocarbon or renewable sectors. As I have continued to write, we all must work together and provide a balanced approach to the fuels we will use.

Significant accomplishments in the advanced biofuels sector were seen in 2011.

The Dynamic Fuels plant in Louisiana has fully powered up, the impetus to the U.S. Navy’s December announcement of placing the world’s largest advanced biofuel order, 425,000 gallons. The military has flown its most sophisticated, powerful jet fighters on biojet, from the F-16 and F-18, and the first cross-country commercial flight occurred from Seattle to Washington, D.C.’s, Reagan National Airport. We’ve also seen a number

6 | Biorefining Magazine | JANUARY/FEBRUARY 2012

of companies break ground for commercial plants or announce agreements to do so.

But this is just the beginning, the tip of the iceberg for what we can do longterm for the nation in the area of liquid transportation fuels. The cornerstone of the U.S. effort starts with the renewable fuel standard (RFS) and the federal government’s commitment to mandate the use of more than 15 billion gallons in today’s marketplace.

Not bad for a law that was just signed in 2007 and implemented in 2010. But the key to delivering on the promise of advanced biofuels is staying the course. It is providing a stable, predictable public policy framework.

It cannot be a politically motivated, mercurial policy that ebbs and flows. It is only with this stable regulatory framework that investors will make the choice to enter into the commercial funding of these projects that will operate for years to come. We must continue to actively work with both federal and state governments to build this future. We can ill afford to see other countries around the globe outspend and deploy the innovative technologies developed in the U.S., rather than deploying them ourselves.

So as we say goodbye to 2011 and hello to 2012, there are a number of outstanding items that could make that future more likely here at home. The most significant is the full funding of the MOU between the U.S. Departments of Defense, Energy and Agriculture to spend $510 million to build first-of-its-kind, commercial, advanced drop-in renewable fuel plants. At deadline both defense and energy pieces for FY 2012 needed funding. Under the best circumstances this would mean some funds might be forthcoming by year’s end.

A second set of issues involves the tax code. I suspect when Congress adjourns, no fewer than four of the provisions that provided tax credits to the renewable fuels industry will have expired. That will mean we are exactly where we were in 2010 for a number of producers in the advanced biofuels pool. Obviously, we will need to have a serious effort to create support for tax support for this industry, particularly if the incumbent industries are afforded support.

Our national energy policy should address each of the portfolio pieces by recognizing their state of commercial development.

Last, we managed to preserve a small amount of money to be continued under the energy title of the Farm Bill. This area will also need continued support if we are to have any type of significant support in the growing of energy crops and their use in biomass conversion technologies.

As you can see, there is a lot on the line and many moving parts. Be it Republican or Democrat, these are not partisan programs for the future of renewable energy in the U.S. We should be a world leader in this space and everyone from Oklahoma to Maine ought to openly discuss and support building the advanced biofuels space. But you, the reader, also have to be engaged by talking to all types of candidates about your support for this industry, and the policies that support it.

Here’s to the new year and our success!

Author: Michael McAdams President, Advanced Biofuels Association (202) 469-5140 Michael.McAdams@hklaw.com

TALKING POINT

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Research, Process, Testing―Repeat Is there a science to financing science?

BY ROBERT BAILEY

C

all me a heretic, but biofuel is not a nearterm substitute for petroleum. Recent shale oil discoveries, efficient drilling technologies, and a boon of natural gas have moved the U.S. to energy positive for the first time in 65 years. This is no time, however, to stop. Biofuels and earth science are identifying critical renewable sources and methods of obtaining both fuel products and food.

As in any bold challenge to old thinking, the biofuels industry is running into resistance to funding. The Valley of Death is where concepts lie in finance limbo between proven results and funding to commercialize. Investors like to fit science into their world. Wrong fit puts pre-commercial science in a gridlock where economic innovation and scientific growth stagnate. It happened with the first American power generation, but the inventors figured out the solution. In 1884 Thomas Edison’s partner, Elihu Thompson, said, “The Dynamo is not the system, nor the regulator, nor the lamp, nor the lines and switches, but the whole entity must be compared with another entity, under conditions which represent real, out-andout commercial usage” (from Maury Klein’s “The Power Makers”). Edison and his partners realized they were working toward a complete solution. Educating the public and policymakers on practical aspects of electrical energy was a distraction, but it piqued investor interest. Sound familiar? It should. Today’s hurdles are similar.

The success incentives in science and finance are somewhat different today.

Private equity, hedge funds, and venture capital resources may or may not be knowledgeable about specific process technologies. Near-term profit projection tickles most investors’ interests more.

Biofuel operations require monitoring and ongoing improvement throughout the system if the enterprise is to commercialize and grow. This is simply Edison’s own science in business balancing act, updated— knowledge in money.

To prepare our “science clients” for financing, we review three stages: research, process and testing. We call the fourth the “shampoo step,” repeat. The logic behind each is straightforward. Research: scientists and investors exhaustively study and probe their materials. Process: the scientific process carefully monitors the process steps; investors use management models to gauge whether their money is achieving the objectives. Testing: peer review is often a step in commercializing scientific findings; the investor necessarily reviews customers’ preferences and buying patterns.

The scientific process is exacting.

The investment management process, while somewhat less exacting, is critical to commercial and financial success. Getting understanding of the relationship between them is mandatory. Randy Komisar, partner at Kleiner Perkins Caulfield Byers, advises innovators to create a management dashboard. In “Getting to Plan B,” he describes it as a necessity “to constantly iterate to find a path that will work.”

With the exception of Vinod Khosla and John Doerr, funders are not fond of experimentation. To scientists, however, it’s the secret sauce to their next-generation

business. One scientist and client told me, “It’s amazing how creative you get when you don’t have money.”

A few months ago, I introduced two clients into a conversation about combining their respective science and technology, for business reasons. One has an algal process.

The other is a Midwestern multifeedstock biofuels producer. They had individually worked through the research, process and testing stages. Both have exceptional business plans and credentials. The joint venture idea came from the dashboard I conceived for them.

The repeat stage led us to indexing the cost of variable feedstocks against the algal oil; offsetting variable commodity costs may enable us to closely manage operating profits of each business. Only by turning the mathematical and scientific problems upside down did we arrive at this business concept. We are no Einsteins, but our imaginations should begin to payoff for investors in a quarter of the original time. This idea was also derived out of a science lesson from Michio Kaku, a founder of string theory and author of “Physics of the Future.” Recently he spoke about the recession and the limits of zerosum thinking. His reference was primarily directed at politicians. Science doesn’t work that way, said Kaku. “Science makes more pie.” In one real-life situation, my own onpaper calculations suggest that our investors may find their rewards highly satisfying, and lucrative.

Author: Robert Bailey Biofuel Financing Advisor/Broker, Trusted Advisory (646) 472-5213 rbailey@trustedadvisory.com

JANUARY/FEBRUARY 2012 | Biorefining Magazine | 7

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LEGAL PERSPECTIVE

The IPO Process The long, arduous filing routine is worth the wait for some

BY DEAN R. EDSTROM

I

POs are back in biorefining! Why? Because biorefining presents attractive opportunities in a growth industry. In the past 15 months, initial public offerings have been completed

by Amyris, which is modifying microorganisms to produce pharmaceuticals; Gevo, an isobutanol producer; Solazyme, a producer of algae-based oils; and KiOR, which plans to convert nonfood biomass into crude oil. And new offerings are in the pipeline by REG, the nation’s largest biodiesel producer; Genomatica, a biotech manufacturing process developer; and BioAmber, a biobased chemical manufacturer.

Two principal motivations to do an IPO are raising capital and providing a liquid market for stockholders. Collateral benefits include the ready ability to return to the markets for additional equity or debt financing, the opportunity to use publicly traded stock as currency for acquisitions, the availability of tradable stock for employee compensation plans, the perception of stability to lenders and the enhancement of the company’s public image. Disadvantages include the cost of continuing compliance with Securities and Exchange Commission regulations, management time for compliance and attention to markets, and the scrutiny to which public companies are subject.

An IPO must be registered with the SEC, which will review and comment on the disclosure in the prospectus for the offering.

This can require several amendments to the registration statement. Exhibits to the registration statement include the company’s governing documents and all agreements that are considered material to the investment decision to be made by investors.

Advance planning is critical. The company

8 | Biorefining Magazine | JANUARY/FEBRUARY 2012

needs to be properly structured from a legal standpoint and attractive to public markets.

Delaware incorporation is not essential but should be considered. The capital structure should be tailored to present and future needs. Most companies will authorize both common and preferred stock. The governance structure will be revised to provide outside director positions on the board, establish board committees, develop governance procedures and adopt compensation plans and policies to satisfy SEC and stock exchange requirements and meet public market expectations. The markets will also expect management to have the talent required for success. Audits must be available to satisfy the SEC’s financial disclosure requirements. This may require a change in the company’s audit firm and the restatement of previous financial statements. All significant contracts and relationships should be reviewed and, if possible, changed to assure investors that the business is well-managed and stable. Debt financing agreements should be positioned to provide the resources required for the foreseeable future.

Companies commencing an IPO will likely engage an underwriter to sell the offering whose compensation is a commission reflected in a discount from the public offering price.

The underwriters will have counsel to assist in diligence review, statement preparation and preparing the underwriting agreement. The company’s counsel will assist in positioning the company for the offering, coordinate delivery of diligence materials to the underwriters, draft the registration statement, supervise filings with the SEC, negotiate the underwriting agreement and complete the closing. The company’s audit firm will review and report on its financial results.

Existing stockholders will sometimes offer

securities already held by them in tandem with the primary offering by the company. If so, the offering stockholders and their own counsel will also have a role.

Preparing for an IPO can take months, even years. The real kickoff is the selection of the lead underwriter to manage the offering.

This will be followed by the underwriters’ diligence investigation. A stockholders’ meeting will likely be required to approve changes to the company’s governance documents. Diligence, final positioning and registration statement preparation can take three months or more.

After the registration statement is filed, the primary focus will be responding to SEC comments, but amendments will also update financial statements and reflect changes in the business. SEC review will normally require at least three months but significant issues can cause the offering to be in registration for considerably longer. During this period, the underwriters conduct a “road show” to introduce the company to potential investors.

Contrary to popular wisdom, the SEC does not approve the registration statement or offering. Rather, it indicates that it has no further comments and is willing to allow registration to go effective and the offering to commence.

Assuming the company and underwriters agree on the offering price, the underwriting agreement is signed, the offering becomes effective with the SEC, the final prospectus is made available, final commitments by the ultimate purchasers are made, the offering is closed and the company receives the offering proceeds, all within a week.

Author: Dean R. Edstrom Partner Attorney, Lindquist & Vennum PLLP (612) 371-3955 dedstrom@lindquist.com

BUSINESS BRIEFS People, Partnerships & Deals

Honeywell Process Solutions has signed on to support the scale-up of a dropin biofuels process technology developed

by California-based AliphaJet Inc. As part of the agreement, Honeywell will invest in the company via the supply of engineering services and equipment. AliphaJet will use Honeywell controls, instrumentation and advanced solutions, including its Experion Process Knowledge Systems and UniSim process simulations and field instrumentation. AliphaJet’s technology features a proprietary catalytic process that can covert renewable oil feedstock into drop-in hydrocarbon fuels, including biobased jet and diesel. Unlike many other biojet production technologies, AliphaJet’s is able to remove all the oxygen from the feedstock without the need for substantial amounts of hydrogen or co-location at a traditional oil refinery. AliphaJet’s pilot-scale facility is scheduled to be operational within 12 months.

The proposed plant will likely be located adjacent to an existing biodiesel plant in the Midwest.

Codexis Inc. introduced its own line of cellulose enzymes, trademarked CodeXyme Cellulase enzymes, designed to convert biomass to sugar. The launch Bolsen marks Codexis’ introduction to the global cellulose enzyme market, what is projected to be one of the largest industrial enzyme market. Codexis is in the final stages of customization of CodeXyme Cellulase enzymes with current partners.

The company expects to have commercial samples for customers in the chemicals industry broadly available in the second half of this year. In July, Codexis announced a broad collaboration with Chemtex, an M&G Group company, to develop and

produce sustainable detergent alcohols for use in the household products market. In the collaboration, CodeXyme Cellulase enzymes will be used to produce second-gen detergent alcohols from biomass. In May, Codexis announced successful 20,000 liter production of cellulase enzymes using the trademarked Codexis CodeXporter enzyme production platform. In other company news, Wes Bolsen has left Coskata Inc. to join Codexis as its vice president and chief marketing officer.

Working closely with the Iowa Economic Development Authority and the Nevada Economic Development Council, Mentor, Iowa-based Thesis Chemistry has selected a 40-acre site within the West Industrial Park of Nevada, Iowa, for a proposed biorefinery center that will produce a range of biobased chemicals derived from corn stover lignin from instate cellulosic ethanol production. Subject to financial and economic incentives, planned new buildings within the industrial park complex include an initial biorefinery, a corporate headquarters office building and a chemical research and development laboratory. Thesis Chemistry also plans to establish a pilot facility in conjunction with the Biomass Energy Conversion (BECON) research center, also located in the West Industrial Park. Phase one will be the production of the oxoaromatic compound vanillin used as a flavoring agent. The second will be cresols, used as disinfectants or deodorizers. The third will be the production of phenols, and the fourth will be the production of butanes and other fuel additives. Thesis Chemistry teamed with De Pere, Wis.-based Smet

Construction Services in June to design and construct its first biorefinery, which is anticipated to be in production by early 2014.

Toronto-based CORE BioFuel Inc. successfully completed testing the final stage of its wood-to-biogasoline process via catalytic conversion of dimethyl ether (DME) into benzene-free, 94-octane green gasoline. This is the remaining noncommercialized step in CORE’s patent-pending process with contract partner RECAT Technologies Inc., a commercial spin-off of the University of Western Ontario. Specifically, CORE is commercializing a patent-pending variant of ExxonMobil’s methanol-to-gasoline process, trademarked the MelnichukKelly-Stanko Fuel Synthesis Process (MKS Process). The company modified the process by incorporating advanced indirect gasification modules developed by Energy Products of Idaho, creating an exothermic reaction for sufficient electricity and steam generation to power the process. CORE further improved the process by eliminating the methanol step entirely. It devised a route that can effectively and efficiently produce biogasoline straight from DME via a robust zeolite-based catalytic reaction without the need for further upgrading to meet retail pump 92-octane requirements.

Algae systems provider Algae.Tec Ltd. has signed a collaboration contract to build its first algae biofuels production facility in Asia. The facility will be built in Sri Lanka in conjunction with cement and building materials company Holcim Lanka Ltd. Algae.Tec stated that Holcim Lanka was attracted to its systems as a way of reducing its carbon footprint through channelling waste CO2 into the algae growth system and generating biofuel at below market cost.

The facility will initially include a produc-

JANUARY/FEBRUARY 2012 | Biorefining Magazine | 9

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BUSINESS BRIEFS

tion plant of five photobioreactor modules.

Holcim will then evaluate incorporating such a system at a much larger facility. Algae.Tec stated that it expects the technology could be rolled out at other sites. The photobioreactor modules are assembled at the Australian company’s U.S. manufacturing plant, the Algae Development & Manufacturing Centre, in Atlanta.

Algae company OriginOil Inc. has appointed Thomas H. Ulrich to its board of advisors. Most recently Ulrich was an Idaho National Laboratory advisory scientist working with OriginOil to create a strategic partnership between the two, and he launched the first Cooperative Research and Development Agreement between OriginOil and INL. OriginOil stated that Ulrich has been a key supporter of its technology, and that “he offers tremendous value to the company as a highly regarded thought leader in the field of biomass and bioenergy.” Ulrich worked with OriginOil to help design, implement, and complete its first phase CRADA in February 2009, which resulted in what the company calls “an unprecedented energy balance model bringing algae-based fuels one step closer to reality.” Ulrich has more than 25 years of experience in planning, securing funding, executing projects as a group leader and principal scientist in private industry and at INL. M a s s a ch u s e t t s based cellulosic ethanol developer Qteros Inc. has gone through a reduction in staff, and longtime CEO John McCarthy “has stepped down,” confirmed the Sawka newly appointed CEO Mick Sawka. Prior to becoming CEO,

10 | Biorefining Magazine | JANUARY/FEBRUARY 2012

Sawka was Qteros’ senior vice president of commercial development and engineering where he was responsible for developing and executing the company’s global commercialization strategy, including spearheading Qteros’ commercial development and partnering initiatives, as well as leading the company’s engineering and process design efforts.

Calif.-based bioplastic producer Cereplast Inc. has announced a three-year distribution agreement with GAMA Plastik AS to supply bioplastic resin in Turkey. GAMA Plastik plans to purchase 200 metric tons a month of the biobased resin this year, with a significant purchasing increase in 2013. Cereplast anticipates generating revenue from the agreement within the next 90 days. GAMA Plastik will be purchasing bioplastic resin from both Cereplast’s compostable and sustainable lines of materials. GAMA Plastik, a leading plastic trader located in Istanbul, will use the biobased resins to produce films and injection molded products. The resin material to fulfill GAMA Plastik’s orders will initially be produced at its Indiana factory.

Cereplast is also working to develop a factory in Europe expected to be operational by late 2012. Once the new production facility comes online, it will likely be used to fulfill orders from Europe.

Developer of next generation bio n-butanol Cobalt Technologies appointed Bob Mayer as chairman of its board of directors and CEO. With more than 30 years of experience in the chemicals and biotech sectors, Mayer joins Cobalt to lead the company as it focuses on developing commercial facilities globally. As Chairman and CEO, Mayer will be responsible for setting strategic direction, cultivating partnerships and driving the company to profitability. Mayer, who has extensive experience growing businesses within the biotech sector as the former executive

vice president of Danisco, will also lead the development of strategic business relationships and fundraising for the company. Most recently he was the CEO of Genencor International Inc. Additionally, Mayer will join Cobalt’s board of directors with significant board experience. He currently serves on the board of Edeniq Inc., a biofuels company, and Kalesec Inc. He formerly served on the board of Martek Biosciences Inc. prior to its sale to DSM earlier this year. Mayer started his career as an assistant professor of chemical engineering at Massachusetts Institute of Technology.

Ineos Bio has selected international engineering company AMEC to be its global license support engineering firm. AMEC will work with Ineos Bio in developing engineering design packages for future Ineos Biotechnologies licenses. AMEC will be playing a major role in the scale up of the company’s technology. AMEC is the engineering, procurement and construction provider for Ineos Bio’s first commercial-scale facility in Vero Beach, Fla. That plant, which is expected to begin operations during the second quarter, will be capable of producing 8 million gallons of cellulosic ethanol per year, along with 6 megawatts of renewable electricity. AMEC was chosen to serve as Ineos Bio’s global license support engineering firm for several reasons, including its global presence and ability to serve a global license base. Ineos Bio expects to begin licensing its cellulosic ethanol technology this year, and AMEC will ensure the engineering designs for these facility are optimized and customized for each site location.

SHARE YOUR INDUSTRY BRIEFS To be included in Business Briefs, send information (including photos and logos if available) to: Industry Briefs, Biorefining, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203.

You may also fax information to (701) 746-8385, or e-mail it to rkotrba@bbiinternational.com. Please include your name and telephone number in all correspondence.

PHOTO: SUNDROP FUELS INC.

STARTUP

Biorefining News & Trends

Dropping By U.S. Sen. Mark Udall, D-Colo., (right) visits Sundrop Fuels’ research and pilot facility in Broomfield, Colo., with CEO Wayne Simmons (left).

Drop-In Fuel Hotspot

Sundrop Fuels has big plans in Louisiana―and beyond Colorado-based Sundrop Fuels Inc. has agreed to purchase about 1,200 acres of land near in Rapids Parish, La., for the planned construction and operation of a biorefinery that will use locally sourced woody biomass to produce up to 50 MMgy of sulfur-free, low benzene green gasoline.

To pay for the proposed $500 million project, Sundrop Fuels intends to sell tax-exempt private activity bonds that don’t carry with them financial obligation from state or local authorities, and investments from strategic partner Chesapeake Energy Corp., the nation’s second-largest natural gas provider.

Venture capital firms Oak Investment Partners and Kleiner Perkins Caulfield & Byers will also help cover project costs. The company expects to break ground by fall and be in full production by mid-2013. Sundrop

Fuels spokesman Steven Silvers says negotiations with feedstock suppliers are underway while offtake agreements have not been executed yet.

Sundrop Fuels’ green gasoline platform is based on its patented, trademarked RP Reactor, a radiant particle heat transfer technology that generates temperatures of more than 1,300 degrees Celsius to convert woody biomass into syngas, which is then converted into finished biobased gasoline via ExxonMobil’s well-established methanol-togasoline synthesis production process. With the ability to use natural gas, electricity or concentrated solar energy to power the RP Reactor, Silvers says Sundrop Fuels’ use of high-temperature heat transfer to drive endothermic gasification results in higher yield of biofuel per ton of biomass feedstock

than other traditional gasification methods.

“What we do is strip hydrogen molecules from natural gas then combine them to the biomass feedstock that’s being gasified,” Silvers tells Biorefining Magazine. “This provides for a 2-to-1 [hydrogen to carbon] ratio while at the same time letting us produce 50 percent more biofuel than we could with biomass alone. Virtually every molecule of carbon used becomes liquid fuel. No carbon is wasted.”

With a pilot facility in Colorado demonstrating its technology, Sundrop Fuels intends to develop a commercial-scale biorefinery capable of producing about 200 MMgy, anticipated to be in operation by 2016.

The company has a grand vision of 1 billion gallons of production capacity by 2020.

—Bryan Sims JANUARY/FEBRUARY 2012 | Biorefining Magazine | 11

|

STARTUP

Strategic Expansion

viously committed to the program, which was created in June 2010. Amyris plans to contribute at least $65 million to R&D of the renewable diesel program, according to an 8-K filing through the SEC in late November. Total owns approximately 21 percent of Amyris.

“With this expanded relationship with Total’s vast distribution network, as well as Total’s stated commitment to invest in production units, we expect to be able to codevelop products and, ultimately, deliver a global supply of sustainable renewable fuels at commercial scale,” says John Melo, president and CEO of Amyris.

In addition to the expanded R&D collaboration, Total and Amyris formed a 50/50 joint venture that will allow the two companies to have exclusive rights to produce and market

Global partnership drives commercialization of renewable diesel, chemicals If Amyris’ biobased farnesene, trademarked Biofene, isn’t a household name by now, it will be soon. The Emeryville, Calif.based biotech outfit and French energy giant Total expanded their ongoing research and development collaboration to which Total will contribute an additional $105 million to the existing $180 million the two companies pre-

renewable diesel and jet fuel worldwide and entail nonexclusive rights to other biobased products based off Amyris’ Biofene platform, such as drilling fluids, solvents, polymers and specific biolubricants. The venture is expected to launch by first quarter this year.

The creation of the joint venture “will strengthen Total’s position in the global renewable diesel market, which is projected to nearly double in size to 32 million tons in 2020 from 17 million tons in 2010,” says Philippe Boisseau, president of gas and power at Total.

—Bryan Sims

Synthesizing a Better Algae

PHOTO: IOWA STATE UNIVERSITY

Genetically modified algae increases biomass by up to 50 percent

Improving Output Martin Spalding, professor in the Department of Genetics, Development, and Cell Biology and associate dean for research and graduate studies in the College of Liberal Arts and Sciences at Iowa State University, has discovered a way to increase the biomass production of algae cells.

12 | Biorefining Magazine | JANUARY/FEBRUARY 2012

Those in the biofuel industry often think of algae as a future source of oil for conversion into biodiesel and hydrocarbon fuels.

Researchers, however, say that algae may become an important source of feedstock for carbohydrate-based processing.

A team of researchers at Iowa State University has developed a technique that can increase the carbohydrate-based biomass of algae by up to 80 percent. A more energy intense version of the technique can also be used to increase the oil fraction of the biomass by approximately 50 percent.

According to the researchers, the improvements are made possible by expressing certain genes in algae that increase the amount of photosynthesis in the plant, leading to greater biomass production. A combination of two genes is used to create this increase in biomass as long as the algae is able to access sufficient carbon dioxide,

says Martin Spalding, a professor in ISU’s Department of Genetics, Development and Cell Biology.

The two genes, LCIA and LCIB, are usually expressed in nature in environments that have relatively low levels of carbon dioxide.

They allow the algae to capture and channel more carbon dioxide from the air into the cell, which keeps the algae alive and growing.

The genes, however, shut down in environments with high carbon dioxide levels.

The research conducted by Spalding’s team has shown that when these genes are expressed in areas of abundant carbon dioxide, the cells can produce significantly more biomass than would be otherwise possible.

The researchers can also increase the oil production of algae cells by using some existing mutated genes, but that process requires more energy. The patent-pending technology is available for licensing. —Erin Voegele

STARTUP |

Refining Environmental Efficacy, Applications

Finnish renewable diesel producer Neste Oil started up its 800,000-ton-per-year (240 MMgy) refinery in Rotterdam in September, and the company didn’t stop there.

Together with the Port of Rotterdam and the Rotterdam Climate Initiative, Neste Oil has also launched a trial where a port authority patrol boat will record 1,000 hours of operating time powered by Neste Oil’s NExBTL renewable diesel. The pioneering trial will measure exhaust emissions, such as SOx and NOx, and engine performance of the patrol boat, as well as gather operational experience.

“Our NExBTL fuels have already shown what they are capable of in terms of performance and lower emissions on the road and in the air, and now we will have the opportunity to see how our renewable diesel performs in marine use as well,” says Kaisa

The Business of Biobutanol Acquisitions, patent infringement disputes continue

Eastman Chemical Co. ventured into the biobutanol space in November when its subsidiary Eastman Renewable Materials LLC acquired TetraVitae Biosciences Inc. and its assets. TetraVitae Biosciences is a developer of biobutanol and bioacetone, which are platform intermediates in the production of a variety of products, including coatings, molded plastics and personal

PHOTO: NESTE OIL

How Neste Oil is going above and beyond renewable diesel production

Fuel Data Renewable diesel producer Neste Oil has several ongoing emissions-related projects collecting data and reducing VOCs during fuel loading.

Hietala, Neste Oil’s vice president of marketing.

Meanwhile, Neste Oil made a major environmental investment in October at its refinery harbor in Porvoo, Finland, by installing a system for recovering volatile organic compounds (VOCs) when gasoline is loaded at the harbor. The new system, expected to

be commissioned by the end of 2013, will reabsorb VOCs into gasoline during loading with the help of two absorption tanks and related equipment at the harbor, after which the gasoline used will be returned to the refinery for reuse. —Bryan Sims

care products. The company’s technology features the use of Clostridium Beijerinckii BA 101, a proprietary, mutant, nongenetically modified organism. To date, TetraVitae Bioscience’s process has been demonstrated through the retrofit of a corn ethanol demonstration facility at the National Cornto-Ethanol Research Center at Southern Illinois University.

“This announcement is a demonstration of Eastman’s continued investment in innovation and our commitment to delivering sustainable solutions to our customers,” says Greg Nelson, senior vice president and chief technology officer of Eastman. “I am confident that TetraVitae’s patented biocatalysis technology will provide Eastman an excellent platform for the development of a range of

biobased processes that will strengthen our sustainable product offerings.”

Meanwhile, Butamax Advanced Biofuels LLC announced the U.S. Patent and Trademark Office issued reexamination decisions regarding one of its foundational patents—U.S. Patent No. 7,993,889 (’889 Patent)—which Butamax asserts has been infringed upon by Gevo Inc. The USPTO has agreed to grant Gevo’s petition to reexamine the ‘889 Patent, and recently denied reexamination of a separate Butamax patent, U.S. Patent No. 7,851,188. A hearing on a motion for a preliminary injunction to halt Gevo’s infringement is scheduled for early this year. —Erin Voegele

JANUARY/FEBRUARY 2012 | Biorefining Magazine | 13

|

FINANCE

14 | Biorefining Magazine | JANUARY/FEBRUARY 2012

FINANCE |

Venturing

into the

Public

Space

Biorefining companies continue to file IPO statements as venture capital funding trends downward

BY ERIN VOEGELE

Industry leaders consistently remark that initial public offerings (IPOs) defined the biorefining sector for 2011. At least five companies, including Codexis Inc., Solazyme Inc., Gevo Inc., Amyris Fuels LLC, and KiOR Inc., have successfully entered the public space, while numerous others have IPOs pending with the Securities and Exchange Commission. As Michael McAdams, president of the Advanced Biofuels Association, recently pointed out to Biorefining Magazine, those that have gone public have done so “with great success.” He says the trend has been amazing and it shows few signs of slowing. In November, BioAmber Inc. became the latest biorefining company to file a registration statement with the SEC for a proposed IPO. In a recently published analysis, Lux Research noted that several factors—including the IPO trend—demonstrate evidence that certain segments of the biorefining industry are maturing. According to the Lux Research report, “Seeding Investment in the Next Crop of Bio-Based Materials and Chemicals,” big-ticket acquisitions, IPOs and other examples indicate the biochemical field is rapidly maturing. It also indicates that venture capital funding in the biochemical segment will soon peak and start to decline. Mark Bünger, a Lux Research director and lead author of the report, stresses that’s not a bad thing. “That is really just how venture funding works,” Bünger says, noting that when investors start seeing good returns they often want to make additional contributions. In the venture capital space, when investments start making returns, it generally means the field is maturing. But Bünger says it also means companies that go public will begin to crowd out their earlier-stage counterparts.

JANUARY/FEBRUARY 2012 | Biorefining Magazine | 15

|

FINANCE

Most companies go public to rapidly raise large amounts of capital. Pavel Malchanov, an energy analyst at financial services company Raymond James, says the advanced biofuels and biochemicals sector is by definition an early-stage industry. “What we have seen from the five IPOs that have priced in the past 18 months is that investors are open to putting money in early-stage, pre-revenue, and certainly pre-earnings companies,” Malchanov says. More than a dozen additional biorefining firms have filed registration statements with SEC for proposed IPOs, but those IPOs haven’t gotten priced. Malchanov says that is not surprising given what has happened in the broader stock market in recent months.

Greg Lynch, an attorney and chair of the transactional group at Michael Best & Friedrich says success of the biorefinining sector in public markets has been rather unique. “Unlike the broader market, I think this is one sector that has gone reasonably well,” he says. “I anticipate it will continue to do so for the near-term. I also think that the successful IPO market will help attract more venture capital because they can see an easier path to future fundraising.” Lynch notes, however, it may be pre-emptive to try to predict which companies will enjoy long-term success in the public markets. “Successfully is a tough question to answer,” he says. “You may not know, even within the first six or 12 months whether it’s a successful IPO. I think there will continue to be companies who can successfully raise money in the IPO market in the next six months or so. The real issue is whether the money they will raise will be sufficient to get them to cash flow break even [if] the public markets sour on advanced biofuels.” If that happens, Lynch

says that it could be very challenging for companies to raise capital in public markets.

Lynch also says companies filing IPOs might face slightly different investor expectations. “I think it will be much harder in the future for pre-revenue companies to raise significant amounts of money in the public markets,” he says. He also points out that companies with flexible platforms in both the biobased chemicals and fuels markets will continue to see an advantage. He also stresses companies that are further along in technical development will be attractive to investors since they require less capital to realize commercial success.

Some biorefining companies that have filed IPOs feature these multiplatform production abilities, but others are pure players focused on one market segment. “As more companies in the space go public it will provide investors an opportunity to leverage whatever specific markets that they want,” Malchanov says. The chemicals industry represents a multitrillion dollar global market. “There is a tremendous variety of products in the chemicals industry that individual renewable chemical companies can focus on,” Malchanov says. “There is a lot of diversity in this industry and that will continue to be visible as these IPOs are getting priced.”

There are several factors beyond raising significant capital that make filing an IPO attractive. Lynch says for one, earlier investors may be looking for a liquidity event or ability to sell their shares. “I’d caution companies to not overemphasize that reason for going public at this point,” he says. Drawbacks and advantages of going public should both be considered. “Currently there are attractive valuations and in

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some respects it’s easier to raise money in public markets in this sector than it is through venture capital and private equity markets,” Lynch says. “Some of the downsides are that it is significantly more burdensome from an accounting and legal regulatory oversight [perspective].”

For example, the disclosure requirements are much more significant.

“If the company either can’t follow through on its expectations from a commercialization strategy, or if the overall markets go south, it could be very hard.” In essence, a company could be stuck with the burdens of being a publically traded entity without enjoying some of the most significant benefits.

Bünger says companies considering going public need to offer more concrete business plans to potential investors. “Your funding opportunities better be more closely tied to revenue than to just a good idea or technology,” he says. Malchanov also stresses it is imperative to understand how potential investors evaluate IPOs in the biofuels space. First, he says that a company must have evidence its concept has been proven out at pilot or demonstration scale. Also, a company should be prepared to answer questions by investors regarding yield and technology, and how close those figures are to what’s required to be commercially competitive.

Malchanov notes investors expect to see a credible, transparent roadmap of scale-up activities, and how they lead to positive cash flow and profitability. This involves disclosing details regarding target production economics and capacity expansion costs, and how expansion will be funded along with scale-up timing and cost reduction plans.

Investors will evaluate the existence of strategic partners, including

those who offer financial support to expand production capacity and those involved in offtake agreements. He also says investors will want to know about any exclusivity provisions in partnership agreements.

Finally, Malchanov says access to feedstock will be a concern. For traditional feedstock such as sugar or oilseeds, investors want to know if it can be obtained at preferential pricing, or if long-term contracts are viable. If the feedstock is cellulosic, he says they want to know if the pricing structure is clear. Malchanov says these criteria provide an evaluation framework for how investors assess IPO candidates. He says that companies should ideally meet all of these elements before deciding if an IPO is right for their operations.

While advanced biorefining companies are relatively new to the public markets, Lynch notes that several first-gen biofuels firms went public in the past. One of the most significant differences between those and the current crop of advanced biorefining companies filing IPOs is that the first-generation companies were already profitable when they filed IPOs. The same is not true in the advanced biorefining sector. “While [these companies] have significantly more potential than some of the first-generation IPO companies, they are also much further away from commercialization and profitability,” he says. Only the future will tell to what extent that potential is realized.

Author: Erin Voegele Associate Editor, Biorefining Magazine (701) 540-6986 evoegele@bbiinternational.com

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JANUARY/FEBRUARY 2012 | Biorefining Magazine | 17

|

FEDERAL

Self Defense Chief of Naval Operations Adm. Gary Roughead, left, and Gen. James F. Amos, right, speak with President Barack Obama back in March 2010 following the president’s address at Andrew’s Air Force Base about the Navy’s F/A-18 Green Hornet.

Since then, the U.S. military has shown continued support for advanced biofuels.

PHOTO: U.S. NAVY MASS COMMUNICATION SPECIALIST 2ND CLASS CLIFFORD L.H. DAVIS

18 | Biorefining Magazine | JANUARY/FEBRUARY 2012

FEDERAL |

Why a

Government-Based

Business Strategy is Tricky Experts say it’s counterproductive, but biorefining firms continue on with government

BY LUKE GEIVER

The government is a tricky organization to work with. At least that’s what Pamela Serino, director for the quality and technical support office at the Defense Logistics Agency (Energy) told a ballroom full of prospective advanced biofuel producers at a conference this fall. Serino was there to explain how her team at the DLA would go about awarding the advanced biofuel contracts created when the U.S. DOE, the USDA and the U.S. Navy announced they would award up to $510 million to a number of future biorefinieries that could supply biobased jet or marine fuel.

JANUARY/FEBRUARY 2012 | Biorefining Magazine | 19

|

FEDERAL

Serino makes it very clear that the process won’t be easy.

The DLA acts as the main contractor for many government entities such as the U.S. Navy, and the selection process was “a little touchy” she says, because “if [advanced biofuel producers] can’t meet the contract requirements, it is going to come back to us and the customer won’t be happy.” With these newer fuels, she adds, “there are some that just don’t exist yet, so we are actually awarding contracts on a prayer kind of thing.”

Of course, Serino isn’t entirely correct—there are some fuel providers such as Solazyme or Dynamic Fuels that have already provided renewable jet fuel for use in several U.S. commercial flights. But her sentiments on government partnerships do highlight one of the most complex directions a nascent biorefining firm may take on its path to commercial development and prosperity. As Serino says, working with government is “tricky,” and without going too far into the current political atmosphere and economic climate this past year, expecting Congress to agree on any sort of legislation that would immediately bolster the advanced biofuels industry would be like expecting the major oil companies to voluntarily give up their tax subsidies. It could happen, but not likely.

Company builders and government grant writing experts spoke with Biorefining Magazine and gave their take on when walking the government tight rope makes sense, and when it doesn’t.

20 | Biorefining Magazine | JANUARY/FEBRUARY 2012

Sam Nejame helps his clients enter and evaluate new markets or, in some cases, create them. He’s managed process design projects for Pfizer, GE and the Department of Defense, and today, he says, he helps companies apply for grants, loans and loan guarantees. A major part of Nejame’s job is working with people like Serino, but for him working with government isn’t always productive. “Nondilutive capital can be alluring,” he says. “If you can get help building your demo plant or first commercial facility and it makes sense, sure, do it. But,” he adds, “even now government opportunities are just one source of funding. No company should base its business plan solely on winning government money.”

Russell Howard, CEO of Oakbio and one of the founding members of Codexis Inc. and, before that, several other companies, shares the same popular belief with Nejame. “It may be seductive to work on an exciting grant-funded project,” he says. “Grants provide nondilutive funds that may be used to build value in core technology, develop product concepts, or advance product development at scale.”

But working with, or through, a government-based organization or grant as a means to company growth can be counterproductive.

“Executives need to understand it’s a time-consuming process and it distracts from running the business,” Nejame says, adding that some people see it as marketing. “If the grant is not core to their mission I tell them not to pursue it. It’s great when it works, but there’s no such thing as free money.”

FEDERAL |

Howard believes that a government-backed business strategy makes sense, but only for the right companies. Mature firms that can explore areas not in tune with their core values have the ability to invest time and research into a grant, but for a small company, this can be extremely tenuous. “The very low probability of funding,” Howard says, “coupled with the weeks of effort and opportunity cost involved in chasing funds that may not materialize, is a profound cost for small innovator companies.”

Nejame’s and Howard’s perspectives are fairly clear regarding what government support companies should or shouldn’t focus on.

Large companies with the financial wherewithal to devote time and research into markets that might not be in line with the company vision could, and should, seek out the services of people like Serino.

But for smaller companies, pursuing government assistance isn’t worth the chase.

Nejame’s advice for the smaller companies, or even those simply looking to find the funding to continue on the path to commercialization, starts with existing relationships. “Later-stage companies will need to look to their existing VCs. You’ve got to keep making milestones and giving the guys with the bucks reason to keep you alive,” Nejame says, adding, “Strategic money is smart money. Expect to see more acquisitions. And of course, the public markets will open again.

Institutional investors will have a shot at these lottery tickets. Some companies will fail, but others are going to pay off at big multiples.”

Nejame’s sentiments of prosperity to come, one that isn’t directly linked to a government strategy, sounds appealing and is highlighted even more by Howard. “What the government may be able to promise one day may evaporate one election cycle or years later,” he says. So, as both seem to show, working with and focusing a business strategy based on government-anything seems detrimental to commercialization and financial stability. Or as Serino says, it seems “tricky.”

Even with very few companies that can actually supply the quality, high-volume quantities of renewable jet fuel to the U.S. Navy or the U.S. Air Force, included in Serino’s speech in that ballroom in October, she also noted that there were already roughly 100 applicants looking to win government contracts. So why would so many biorefining firms look to enter into such “tricky” ground?

Nejame offers his perspective. “Well, the U.S. Air Force isn’t going to go Chapter 11 like we saw with American Airlines,” he says.

“Obviously, the military has a need and a history of paying top dollar for new technologies.”

Author: Luke Geiver Associate Editor, Biorefining Magazine (701) 738-4944 lgeiver@bbiinternational.com

JANUARY/FEBRUARY 2012 | Biorefining Magazine | 21

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