Page 1  GLOBAL BIOENERGIES                                 Press PackageA breakthrough innovation to convert renewable res...
Page 2   1. Our mission : another way to hydrocarbons   a. A breakthrough technology…Global Bioenergies develops an indust...
Page 3Global Bioenergies has IP and is working on another five light olefins:                          An environmentally ...
Page 4     2. Targeting the huge market of the petrochemical        industryThe processes developed by Global Bioenergies ...
Page 5growth, and indeed the bioethanol market has doubled between 2003 and 2009. Thetechnological breakthrough brought fo...
Page 6   3. Understanding the revolution in bio-production   a. A brief history of bio-productionFor millennia, the sole p...
Page 7purity of biological isobutene allows us to improvethe quality of the derived products tolevels yet unseen in the fi...
Page 8   4. Industrialization   a. Past progressFounded in 2008, Global Bioenergies’ first challenge was to provide proof ...
Page 9   b. Schedule                     Development phases of the isobutene programSeveral challenges remain to be overco...
Page 10   5. Business model   a. Out-licensing the technology to industrialistsGlobal Bioenergies’ business model consists...
Page 11   b. Four agreements already signedEven before 2014, Global Bioenergies’ is open to granting license options. The ...
Page 12   6. Financial profile   a. FinancingA first round of financing was completed        In June 2011, the company car...
Page 13   7. Founders                                           Dr. Marc Delcourt, Chairman of the Board,                 ...
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Global Bioenergies

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Global Bioenergies

  1. 1. Page 1 GLOBAL BIOENERGIES Press PackageA breakthrough innovation to convert renewable resourcesinto hydrocarbonsGlobal Bioenergies is one of the few companies worldwide, and the only one in Europe,developing a process to convert renewable resources into hydrocarbons through fermentation.The Company’s most advanced program concerns the bio-production of isobutene, one of the mostimportant petrochemical building blocks that can be converted into fuels, plastics, organic glass andelastomers. On the isobutene program, Global Bioenergies currently focuses on improving the yieldof its process and preparing forthe phase dedicated to pilot testing. At the same time, the Company isworking on replicating this success on other members of the gaseous olefins family (propylene,ethylene, linear butenes, butadiene…), key molecules of the petrochemical industry.Global Bioenergies is listed on NYSE Alternext Paris (FR0011052257 – ALGBE) and is part of theNYSE Alternext Oseo Innovation Index.Press package September 2012
  2. 2. Page 2 1. Our mission : another way to hydrocarbons a. A breakthrough technology…Global Bioenergies develops an industrial process for the conversion of renewableresources into hydrocarbons. This process can use feedstock such as sugars, cereals,agricultural and forestry wastes or carbon monoxide e.g. from steel mill exhaust gas ormunicipal waste gasification. This feedstock is then used to produce isobutene from whichare derived fuels, plastics and elastomers such as those used in the production of tires.Compared to other biomaterials and biofuels such as ethanol, these products are identical tothose produced from fossil oil and therefore 100% drop-in. b. … which fits in with existing industrial infrastructures:A new route to such a molecule, which is today obtained exclusively from fossil oil, allowsindustrial continuity. Indeed, isobutene-derived fuels can be blended with fossil fuels at anyproportion. Therefore, today’s storage and distribution infrastructures are compatible withthese fuels and no further investment nor adaptation effort will be required from finalusers. Moreover, the biological production of hydrocarbons alleviates all the limitationsassociated with ethanol, a molecule corrosive for engines and pipelines which is bothdifficult to stock and characterized by low energetic density. c. Isobutene to start with… Isobutene is a gaseous olefin entering the production stream of various plastics, organic glass (Plexiglass®), synthetic rubber, lubricants and fuel additives. A total of fifteen million tons are produced each year from oil. d. … followed by a promising workflowIn addition to the development and industrialization of the isobutene process, GlobalBioenergies aims at replicating this first success by applying the same method to theproduction of other light olefins, the key building blocks of petro-chemistry.Press package September 2012
  3. 3. Page 3Global Bioenergies has IP and is working on another five light olefins: An environmentally friendly processEach kilogram of fossil oil used results in the emission of about 3.1kg of CO2 in theatmosphere. On the other hand, the use of biologically produced hydrocarbons will allow asignificant reduction in greenhouse gas emissions. Indeed, whereas fossil hydrocarbonsfollow a linear industrial route from the ground (as oil) and into the atmosphere (as CO2) viaa succession of rigs, refineries and end users, the route taken by biologically producedhydrocarbons is cyclic. Atmospheric CO2 is taken-up by plants; plants are converted byfermentation into hydrocarbons which are consumed by end users releasing the CO2 whichcan then re-enter the cycle. Thermochemical or CO2 biological processes Carbohydrates Fuels and polymers Photosynthesis Fuels and CO2 polymers Fossil resourcesReductions in greenhouse gas emissions will be comprised between 0 and 70% dependingon the plants used. It is important to note that, thanks to a simpler process which does notrequire distillation, the emission reduction will be greater than for bioethanol.Press package September 2012
  4. 4. Page 4 2. Targeting the huge market of the petrochemical industryThe processes developed by Global Bioenergies are a solution to the decline of oil reservesand favor the development of a sustainable industry based on renewable resources. a. The light olefins marketLight gaseous olefins are the main building blocks for the production of plastics, elastomers,fuel additives and a multitude of commodity and specialty chemicals. Together, thesehydrocarbons make up a market totaling over 300 billion dollars. b. The isobutene market15 million tons of isobutene are currently produced each year, representing a market of morethan 25 billion dollars. The product tree of isobutene encompasses applications in the fieldsof fuels and commodity chemicals. c. Focus on various isobutene applications  BiofuelsBiofuels represent globally 44 million tons of oil equivalent1 (35 million tons frombioethanol and 9 million tons from biodiesel) which represents a mere 1.1% of the 4,000million tons of oil consumed each year. This means there is a huge potential for market1 2008 numbersPress package September 2012
  5. 5. Page 5growth, and indeed the bioethanol market has doubled between 2003 and 2009. Thetechnological breakthrough brought forward by Global Bioenergies and the drop-in nature ofthese new biofuels (no blending restrictions with conventional fuels, no need to modifyexisting storage, transport and distribution infrastructures) will facilitate the expansion ofthese markets.  Synthetic rubberButyl-rubber is the main application of isobutene in the field of commodity chemicals. It isthe only gas-tight rubber and is used to manufacture balls and the inner chamber of all tires.Approximately 900 thousand tons of high purity isobutene are consumed each year for theproduction of butyl-rubber.  Organic glassThe original processes developed for the production of organic glass (Plexiglass ®) usedacetone and cyanohydrin and therefore had large ecological footprints. Today, around 40% oforganic glass is produced from isobutene and requires around 400 thousand tons ofisobutene.Press package September 2012
  6. 6. Page 6 3. Understanding the revolution in bio-production a. A brief history of bio-productionFor millennia, the sole product obtained in large quantities from sugar was alcohol.The 20th century has witnessed the developmentof various bioprocesses allowing theproduction of new compounds from sugars:  n-butanol, a commodity chemical used as a solvent, has been produced in large quantities by bacteria belonging to the Clostridrium genus.  antibiotics, produced by fungi of the Penicillium genus,  amino acids used as animal feed (threonine, lysine…),  biodegradable plastics (PHA),  citric acid.These bioprocesses took advantage of fermentation by natural microorganisms, which werethen improved by classical iterative strain selection techniques.Recent advances in genetic engineering have widened the scope of applications: through theintroduction of numerous genetic modifications, it is now possible to increase the productionof a targeted compound up tolevels compatible with its industrialization. Several companieshave therefore developed processes based on improvements of natural routes present inorganisms which initially produced low levels of the products of interest.This approach to improve the existing biological pathways, although successful in manycases, cannot be applied to the production of light olefins since microorganisms do notproduce light olefins in nature. b. Global Bioenergies’ technological breakthroughFrom day one on, Global Bioenergies’ objective has been the setting up of metabolicpathways allowing the conversion of sugars into light olefins, a group of molecules up tothen unreachable through bio-production.The initial “discovery” phase of the isobutene program, initiated in early 2009, wascompleted mid-2010. It resulted in the discovery of the enzymes that compose the isobutenebiosynthesis pathway, each of them catalyzing previously undescribed reactions.By delivering the proof of this concept, Global Bioenergies has opened new perspectives forindustrial biology, an industry destined to replace a significant part of the traditionalchemistry over the coming decades. Indeed, isobutene produced by Global Bioenergies’process is of greater purity than the isobutene purified from oil refinery streams whichis contaminated by molecules similar in nature and therefore difficult to isolate. The highPress package September 2012
  7. 7. Page 7purity of biological isobutene allows us to improvethe quality of the derived products tolevels yet unseen in the field of polymers where isobutene purity is most critical.This breakthrough technology is protected by a portfolio of several submitted patentapplications covering various aspects of the technology. The company is either co-owner orexclusive licensee of these patents. c. A competitive advantageOne key differentiation factor of Global Bioenergies resides in the gaseous nature of itsfermentation -- a more efficient method than traditional liquid fermentation.Fermentation to a gaseous product presents two principal advantages:- No product-associated toxicity is observed since the product does not accumulate in the fermentation broth. This is critical as toxicity induced by the final product is one of the main constraints limiting the development of bioprocesses. This difficulty is entirely avoided thanks to the gaseous fermentation approach.- Downstream purification efforts are dramatically reduced. This confers a major advantage over the production of liquids such as bioethanol, which require an energy-intensive additional step such as distillation or liquid from liquid extraction.These advantages will result in reduced costs and an improved environmental balance, inparticular when compared to bio-ethanol, bio-isobutanol or bio-butanediol.Press package September 2012
  8. 8. Page 8 4. Industrialization a. Past progressFounded in 2008, Global Bioenergies’ first challenge was to provide proof of concept for theisobutene production process. With this task successfully accomplished, the companyreleased a first prototype in 2010.Over the 2010 to 2011 period, Global Bioenergies has struck four industrial agreements andsuccessfully carried out its initial public offering on the NYSE Alternext.In July 2012, the company initiated the first trials in a laboratory pilot, based on a larger scalefermenter (42L) and in an environment more similar to industrial production. The next phase,running from May 2013 till the end of 2014 will be dedicated to performing trials in theindustrial pilot. The commercial production of biological isobutene is scheduled to begin in2017.June 2012: - more than half of the development has been accomplished, - beginning of industrialization: laboratory pilot, to be followed by industrial pilot.Press package September 2012
  9. 9. Page 9 b. Schedule Development phases of the isobutene programSeveral challenges remain to be overcome by Global Bioenergies:  Developing and industrializing the isobutene process.  Adapting the process to second generation feedstock: agricultural, forestry, domestic and industrial wastes.  Replicating the success on isobutene to the development of similar processes targeting other olefins.Press package September 2012
  10. 10. Page 10 5. Business model a. Out-licensing the technology to industrialistsGlobal Bioenergies’ business model consists of granting exclusive licenses on definedapplications of a given light olefin (for example: bio-isobutene used to manufacture organicglass), potentially limited to a particular market (for example: bio-isobutene used tomanufacture butyl-rubber for gas-tight chambers exclusive of the usage in balls). For fuelapplications, these licenses can possibly include a geographical aspect.In general, licenses should be granted once the processes will have reached industrial scalevalidation, which is foreseen for 2014. This will ensure negotiations are carried out under themost beneficial circumstances.Global Bioenergies intends to grant those licenses in exchange of the following payments::  an upfront payment at the construction of each production site proportionally corresponding to 10m€ per 100kt production capacity, and  royalties on the value of the produced molecule (e.g. isobutene), comprised between 2% (fuels) and 5% (commodity chemicals).Discussions are ongoing with over one hundred industrialists from these four sectors.Press package September 2012
  11. 11. Page 11 b. Four agreements already signedEven before 2014, Global Bioenergies’ is open to granting license options. The idea is toselect one player in a given field, for whom an exclusive negotiation period is reserved untilthe process has reached a pre-agreed development stage. Furthermore, such an option comesalong with an information right and a right of first offer.Overall, four such deals have been signed. The first three do not entail a definitive transfer ofexploitation rights, in accordance with Global Bioenergies’ model for the isobutene programwhich does not foresee such licenses before 2013. Partner Object Big American industrialist (USA) Granting a license option. Collaboration agreement to strengthen German car manufacturer their sustainable development activities. Feasibility study regarding the bio- LanzaTech (New Zealand) production of isobutene from carbon monoxide.The readiness of major industrial groups to contribute to the Company’s development inexchange of well limited rights confirms their strong interest in the process even before itsindustrialization.The Company has also signed an agreement of a different nature with the Polish industrialgroup Synthos. Given that Global Bioenergies wanted to reserve the funds raised during theIPO in June 2011 principally for the development of the isobutene process, all R&Dprograms targeting other light olefins had to principally rely on alternative financing. Theagreement signed with Synthos in July 2011 has allowed the financing of a new programdedicated to the biological production of butadiene. This early-stage funding was agreedupon in exchange for the definitive concession (subject to future payments) of rights on someof the bio-butadiene applications. Rights for the other applications remain with GlobalBioenergies.Press package September 2012
  12. 12. Page 12 6. Financial profile a. FinancingA first round of financing was completed In June 2011, the company carried out anby Global Bioenergies in February 2009 IPO on NYSE Alternext in Paris, resultingand resulted in raising 3.2 million euros in a capital increase of 6.6 million euros.from Masseran Gestion (now Seventure Overall and since its founding, GlobalPartners, subsidiary of Natixis), the capital Bioenergies has collected a total of 14risk arm of Caisse d’Epargne (now BPCE). million euros in successive rounds of capital increases. On December 31st 2011, the Company’s shareholders’ equity amounted to 6.1 million euros. During the 6 month period from July to December 2011, Global Bioenergies had operational charges of 1.8 million euros. The Company’s current cash and equivalents correspond to a visibility of more than a year. b. The shareholdersThe Company had been founded by Marc The two founders still have a strongDelcourt and Philippe Marlière in equal presence in the capital. Their sharesshares. Masseran Gestion, the historical represent the essential part of their wealthinvestor, today owns 39.9% of the and it is therefore expected that they wouldCompany and, in principal, is not supposed actively defend the valuation of theto undertake an exit in the near future since Company.the invested funds are still “young”.The 20.4% free-float contains theinvestment of two industrialists, CristalUnion and Synthos. The “active” free-floattherefore corresponds to only 12.9%,which explains the weak liquidity on thestock market.Press package September 2012
  13. 13. Page 13 7. Founders Dr. Marc Delcourt, Chairman of the Board, CEO and Cofounder: After his scientific training (Ecole Normale Supérieure, PhD in Molecular Biology in Canada), Marc Delcourt turns towards R&D activities in the field of bioprocesses and founded in 1997 the industrial biotech company Biométhodes. He left Biométhodes in 2008 to found Global Bioenergies. Dr. Philippe Marlière, scientific cofounder, had set up one of the first synthetic biology groups in the world in the 1990s. He has since pursued his scientific work in biotechnology companies that he has founded or cofounded. Philippe leads Global Bioenergies’ Scientific Advisory Board.ContactsGLOBAL BIOENERGIESMarc DELCOURT – CEOLiliane BRONSTEIN – CFOCourriel : invest@global-bioenergies.comTel: + 33 (0) 1 64 98 20 50Press package September 2012

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