Dan Verser, Co-Founder, ZeaChem

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Slide Deck from 'Cleantech One-on-one' at EntrepreneurTrek Mar 21 at Stanford GSB

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Dan Verser, Co-Founder, ZeaChem

  1. 1. Entrepreneur Trek - Stanford March 21, 2009
  2. 2. <ul><li>Venture Backed Startup </li></ul><ul><li>Founded in 1998: Two Guys in a Pickup </li></ul><ul><li>A Round 2006: Established Lab in Menlo Park: Two VC Firms </li></ul><ul><li>B Round 2008: 4 VC Firms </li></ul><ul><li>Strategic Partners </li></ul><ul><li>25 People: Menlo Park, Denver </li></ul>ZeaChem
  3. 3. <ul><li>3 rd Generation Cellulosic Ethanol </li></ul><ul><li>Demonstration of Technology </li></ul><ul><ul><li>Lab </li></ul></ul><ul><ul><li>Pilot </li></ul></ul><ul><ul><li>Demonstration Plant </li></ul></ul><ul><ul><li>Commercialization </li></ul></ul><ul><li>New Products </li></ul>ZeaChem’s Business
  4. 4. Why Renewable Based Fuels? <ul><li>145 Billion Gallon Gasoline Market in U.S. </li></ul><ul><li>Energy Security from Domestic Resources </li></ul><ul><li>Ethanol offers Advantages as a Component of Gasoline Pool </li></ul><ul><ul><ul><li>Renewable Based </li></ul></ul></ul><ul><ul><ul><li>Easily Transportable Liquid Fuel </li></ul></ul></ul><ul><ul><ul><li>Compatible with Gasoline </li></ul></ul></ul><ul><ul><ul><li>High Energy Content and High Octane </li></ul></ul></ul><ul><ul><ul><li>Compatible with Existing Automobile Technology </li></ul></ul></ul><ul><ul><ul><li>~6.0 Billion Gallons Today </li></ul></ul></ul>
  5. 5. Ethanol’s Problems Using Legacy Technology <ul><li>Poor Economics - Requires Subsidy </li></ul><ul><li>Questionable Environmental Performance - Requires Almost as Much Non-renewable Energy to Produce as It Contains - ER = 1.3 </li></ul><ul><li>Limited Expensive Raw Material Resource for the Current Technology – Corn </li></ul><ul><li>“ Food vs Fuel” & Indirect Land Use </li></ul>
  6. 6. Cellulosic Ethanol & One Approach to Solve the Problem at One Level
  7. 8. ZeaChem Process Flow Feedstock Ethanol Hydrogenolysis Fermentation + Recovery Gasification = H 2 Recovery + Energy Acetate Ester Hydrogen
  8. 9. How does it Fit into the Rest of the World? The Value Chain
  9. 10. Raw Material
  10. 11. The US sweetener industry
  11. 12. Large, Liquid Available Woody Feedstock Market <ul><li>Viewed favorably with respect to “food vs. fuel” debate </li></ul><ul><li>Taking advantage of increasingly liquid & transparent timberlands market </li></ul><ul><li>Forest acreage generally large corporate farms </li></ul><ul><ul><li>Located closer to end user markets & transportation infrastructure </li></ul></ul>
  12. 13. Woody Feedstock Reliability <ul><li>Hybrid poplar trees chosen as 1 st feedstock </li></ul><ul><ul><li>Commercially grown in established forests </li></ul></ul><ul><ul><li>Fast growing </li></ul></ul><ul><ul><li>Significant yield enhancement possible </li></ul></ul><ul><li>1 st Biorefinery co-located with existing GreenWood Resources (GWR) tree farm </li></ul><ul><ul><li>Partnered with GWR, an established leader in hybrid poplar tree farming </li></ul></ul><ul><ul><li>Co-location minimizes inbound freight </li></ul></ul>Saw Log or Pulp Chip Management Biofuels Management
  13. 14. Tomorrow’s Energy Farm <ul><li>Plant 1,500 trees/acre </li></ul><ul><li>Wait 3 years </li></ul><ul><li>Continuous harvest with combine </li></ul><ul><li>Transport to refinery with no further transfers </li></ul><ul><li>No replanting required: coppice system </li></ul><ul><ul><li>Re-sprouts from stump </li></ul></ul>CONFIDENTIAL
  14. 15. Poplar Trial Aerial View <ul><li>A composite shot using remote control camera mounted on helium balloon </li></ul><ul><li>Variety of responses to soil conditions very apparent from above </li></ul>
  15. 17. Biomass Yields Matter SOURCE: © Ceres, Inc. All Rights Reserved. Used with Permission. * graphic not to scale *
  16. 18. Is There Enough Land?
  17. 19. Technology Can Solve “Food vs. Fuel” Debate Technology will Provide ~10X Improvement in Land Productivity! Enables 30% Renewable Fuels from Current Lands ZeaChem + Auto Eff. 15 BDT/ac/yr 135 gal/BDT 25 mi/gal 50,625 mi/ac/yr 1 st Gen Cellulosic 7.5 BDT/ac/yr 90 gal/BDT 14 mi/gal 9,450 mi/ac/yr Farm Yield Factory Yield Auto Eff. Land Prod. Corn Ethanol 150 Bu/ac/yr 2.7 gal/bu 14 mi/gal 5,670 mi/ac/yr ZeaChem 15 BDT/ac/yr 135 gal/BDT 14 mi/gal 28,350 mi/ac/yr
  18. 20. Environmental Performance
  19. 21. Energy Yield
  20. 22. CO 2 Footprint Comparison ZeaChem Biomass Corn Dry Mill Total CO 2e : 1.45 lb/gal Total CO 2e : 12.54 lb/gal
  21. 23. Potential Product Portfolio Cellulosic Biomass <ul><li>Two Fundamental Alternatives </li></ul><ul><li>Change organism </li></ul><ul><li>Change downstream chemistry </li></ul>ZeaChem’s Technology <ul><li>C3 Chain </li></ul><ul><li>Lactic Acid </li></ul><ul><ul><li>Propylene Glycol </li></ul></ul><ul><ul><li>Acrylic Acid & Esters </li></ul></ul><ul><li>Propionic Acid </li></ul><ul><ul><li>Propylene </li></ul></ul><ul><ul><li>Methacrylic Acid & Esters </li></ul></ul><ul><li>C2 Chain </li></ul><ul><li>Acetic Acid </li></ul><ul><li>Ethyl Acetate </li></ul><ul><li>Ethanol </li></ul><ul><li>Ethylene </li></ul><ul><li>Ethylene Glycol </li></ul><ul><li>C4 Chain </li></ul><ul><li>Butanol </li></ul><ul><li>C6 Chain </li></ul><ul><li>Hexanol </li></ul><ul><li>Hexene </li></ul>Current Platform
  22. 24. Some Lessons <ul><li>Persist </li></ul><ul><li>Build on Your Experience </li></ul><ul><li>Have a Team </li></ul><ul><li>Focus on What You do Best </li></ul><ul><li>The Business is Bigger than Your Company </li></ul><ul><li>Timing </li></ul>
  23. 25. Questions & Discussion

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