Welle - Bioindustrial Partnership of Minnesota
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Presentation by Tim Welle of the BioBusiness Alliance of Minnesota at the July 20, 2011 meeting of the MN Chemical Regulation and Policy Project Work Group.
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Welle - Bioindustrial Partnership of Minnesota
- 1. BioIndustrial Partnership of Minnesota Environmental Initiative Chemicals Regulation Working Group July 20, 2011
- 2. Project Sponsors Enriching Minnesota’s Future through the Biosciences
- 3. Agenda •  Introduction •  Project Overview •  Biorefinery Development •  Agriculture-based opportunities •  Downstream market Development Enriching Minnesota’s Future through the Biosciences
- 4. The BioBusiness Alliance of Minnesota •  Industry led, non-profit organization •  Partners with industry, academia and economic development groups to stimulate growth in Minnesota •  Supports growth in six targeted industries Medical Devices Food Biologics/Biopharma Renewable Energy Animal Health Renewable Materials Enriching Minnesota’s Future through the Biosciences
- 5. Project Partners •  Great Plains Institute •  LifeScience Alley Non-partisan, non- Largest state-based profit corporation based trade association in Minneapolis focused on serving the life sciences industry. Mission: to accelerate the transition to a sustainable, prosperous, low-carbon economy. Enriching Minnesota’s Future through the Biosciences
- 6. Renewable Materials Value Chain Overview Biorefinery Farmers/Foresters Development Chemicals Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
- 7. D2025 Recommendations Renewable Materials •  Support market development efforts for the renewable materials value chain » Renewable Materials Summit: Emerging Markets in the Upper Midwest •  Position Minnesota as a world leader in biorefinery operations Liquid Fuels Markets Farmers/Foresters Biorefinery Chemical Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
- 9. The BioIndustrial Partnership of MN •  Hypothesis: The industry is commercializing technologies, and there are enough companies forming that any MN biorefinery could find a partner to enter the industry. •  Expected Implementation Actions: » Education of business and community leaders. » Identify assets and market MN to external partners. » Policy development. •  Regulatory issues. •  Financial assistance. Enriching Minnesota’s Future through the Biosciences
- 10. Project Methodology •  Q2 2011: Project Definition » Assemble Core Team and develop clear understanding of industry •  Q3 2011: Community Dialogue » Share global trends and gather information •  Q4 2011: Publication » Minnesota Roadmap for BioIndustrial Development •  2012: Education and Implementation » Act on strategic direction Enriching Minnesota’s Future through the Biosciences
- 11. Core Team •  ~21 Members across value chain » Biochemical companies » Ethanol General Managers » Engineering/Design Firms » Legal and Financial Service Providers » Government •  Industry Dominated Enriching Minnesota’s Future through the Biosciences
- 12. Building an industry… $ $ Feedstock Technology Off-take Policy Enriching Minnesota’s Future through the Biosciences
- 13. Roadmap Preview
- 14. Roadmap Outline •  Biorefinery Development •  Trends •  Opportunities Biorefinery •  Strategic Direction •  Downstream Market Development »  Chemicals »  Fuels Chemicals Industry- End Product •  Trends Retail, End Uses Formulators Manufacturing •  Opportunities •  Strategic Direction •  Agricultural-based Supply Chain Partnerships •  Trends •  Opportunities Farmers/Foresters Biorefinery •  Strategic Direction •  Forest-based Supply Chain Partnerships •  Trends •  Opportunities Farmers/Foresters Biorefinery •  Strategic Direction •  Policy Analysis and Recommendations
- 15. Biorefinery Development Liquid Fuels Markets Farmers/Foresters Biorefinery Chemical Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
- 16. Integrated Biorefinery •  DDGs Food/Feed •  Nutraceuticals •  Food grade oil •  Ethanol Fuels •  Butanol •  Drop-in fuels Chemicals •  Materials and •  Additives Plastics •  Solvents
- 17. Example: Bio Iso-butanol •  Iso-butanol Drop-in •  Jet Fuel Fuels •  Diesel •  Gasoline Chemicals and •  C4 Platform Plastics Enriching Minnesota’s Future through the Biosciences
- 18. Volatile and increasing fossil fuel prices Source: ICIS; http://www.icis.com/Articles/2011/06/27/9471601/Bio-based-intermediates-will-reduce-price- volatility.html
- 19. The signals of momentum? •  8 IPO’s in the last year2 » Financial markets are supporting the industry •  Green chemistry sector lead MN in VC investments for Q2 2011 •  Global biochemicals industry: $585 billion by 20301 » Up to 17% of global chemicals market » 5-10% average annual growth •  5 billion pounds of chemicals by ~20153 •  RFS2: 22 billion gallons of advanced biofuels by 2022 1 http://www.icis.com/Articles/2010/06/21/9368973/biochemical-market-forecasts-suggest-strong-growth.html 2 http://biofuelsdigest.com/bdigest/2011/06/03/myriants-125m-ipo-the-complete-digest-analysis/ 3 PiperJaffray Analysis
- 20. New targets for bio-based chemicals •  Innovation is enabling new commodity chemicals » New to the world chemicals •  Segetis’ Javelin Technology •  Reluceo’s XLK Polymer » Improved access to existing chemicals •  Succinic Acid •  Glucaric Acid •  “New” chemicals can depend on other innovations in the final products » Risk for slower growth » Without significant improvement in functionality, they may not have the critical mass to survive
- 21. Minnesota Biobased Materials Family Tree Rivertop BioAmber Reluceo XL Terra 2009 - 2011 Renewables Est. 2009 Est. 2009 Est. 2009 Est. 2010 Plymouth Golden Valley Golden Valley Green Harvest Draths Segetis Pine River Gevo Technologies 2005 - 2009 Est. 2005, 20 emp. Est. 2006, 30 emp. Petrochemicals Est. 2009, 50 emp. Est. 2007, 1 emp. Okemos, Michigan Golden Valley Est. ~2009. Luverne, MN and CO Bloomington Cargill BioH Natureworks Elevance Cargill 1997 - 2004 Est. 2003, 35 emp. est. 1997, ~100 emp. Est. 2004, 45 emp. Industrial Oils Plymouth Minnetonka Chicago, IL Minnetonka Cargill Resins 1980s - 1990s Minnetonka Currently not located in Minnesota
- 22. Opportunities and Concerns •  Opportunities » Intermediate chemicals the key targets » MN Strengths to build on: •  Cluster of companies has developed in the state •  Use the medical device industry as a proxy •  Strong suite of service providers that understand and support the industry •  Concerns » MN lacks experienced chemical industry executives » Scale-up capital and speed » Cost of regulatory compliance and toxicity testing can squelch innovation
- 23. Strategic Needs- BioIndustrial Manufacturing •  Assistance in financing through “valley of death” » Government grants are difficult » Lack of focused venture capital » Other states are moving more aggressively to support the industry •  Regulatory issues •  University policies to encourage faculty start-ups •  More clean-tech incubators in the state
- 24. Agriculture Opportunities Liquid Fuels Markets Farmers/Foresters Biorefinery Chemical Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
- 25. Agricultural-based Supply Chain •  Biorefinery Development •  Trends •  Opportunities •  Strategic Direction •  Downstream Market Development »  Chemicals »  Fuels •  Trends •  Opportunities •  Strategic Direction •  Agricultural-based Supply Chain Partnerships •  Trends •  Opportunities Farmers/Foresters Biorefinery •  Strategic Direction •  Forest-based Supply Chain Partnerships •  Trends •  Opportunities •  Strategic Direction Enriching Minnesota’s Future through the Biosciences •  Policy Analysis and Recommendations
- 27. End Market Development Liquid Fuels Markets Farmers/Foresters Biorefinery Chemical Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
- 28. Downstream Market Development •  Biorefinery Development •  Trends •  Opportunities •  Strategic Direction •  Downstream Market Development »  Chemicals Liquid Fuels »  Fuels Markets •  Trends •  Opportunities Chemicals Industry- End Product Strategic Direction Retail, End Uses •  Formulators Manufacturing •  Agricultural-based Supply Chain Partnerships •  Trends •  Opportunities •  Strategic Direction •  Forest-based Supply Chain Partnerships •  Trends •  Opportunities •  Strategic Direction Enriching Minnesota’s Future through the Biosciences •  Policy Analysis and Recommendations
- 29. Proposal for coordination •  Targeted discussions on regulatory impacts •  Perspectives and ideas to grow the industry •  Participate in implementation efforts Enriching Minnesota’s Future through the Biosciences
- 30. Thank You! Tim Welle twelle@biobusinessalliance.org 952-746-3845
- 31. Biofuels becoming biochemicals companies. •  Replace the entire barrel of oil Source: Peter Keeling. Center For Biorenewable Chemicals