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Now Available! Global Algae Producers, Projects, Ventures, Technologies, Investors, and Market Forecasts

The Algae 2020 study is a fact-filled guide designed for investors, producers, entrepreneurs, governments, researchers, consultants and executives. 

Algae 2020
provides a comprehensive roadmap for the commercialization of biofuels, drop-in fuels, biochems and biomass markets based on site visits with more than 40 organizations.

Algae 2020
provides detailed case studies of leading companies, projects, ventures, public-private partnerships, research labs, and provides a set of scenarios, business strategies, market forecasts and an outlook for algal biofuels and biomass product commercialization to the year 2020.


The Executive Summary of Algae 2020 study Vol 2 follows below

The global biofuels industry is entering a transitional era of emerging opportunities and
considerable challenges in reaching 2020 targets. The global economic recession is already
shaking out many of the would-be players in a crowded algae space, and favoring new
players with improved strategies. Why are some algae companies attracting capital, and
scaling up their enterprises while others continue to peer into the “valley of death” from the
laboratory to the pilot phase?

From 2008 through 2011, Emerging Markets Online (EMO) set out to find how leading
companies in the algae business are beating the odds and adapting to rapid changes in
markets, regulations and technologies. Over the course of two years, EMO visited with
dozens of algae producing facilities, laboratories and pre-commercial projects to find out
what it takes to qualify for investment and gain an advantage as an aspiring algae producer.

During this time, EMO also ran collaborative R&D workshops and participatory webinars with
support from leading minds from the Biofuels Digest, the American Biofuels Council, the
National Algae Association, Biofuels International, start-up incubator the Houston
Technology Center; winners of government grants for US DARPA and DOE contracts, as well
as thoughtful guidance and insight from members of the Algal Biomass Organization, the
European Algae Biomass Association, the National Biodiesel Board, and every major oil and
gas company invested in the algae industry.

In short, the endeavor spanned stakeholders in nearly every aspect of the algal biomass
business. Biofuels Digest Editor Jim Lane provided a foreword and guidance on leaders in
advanced biofuels companies and insights on business models for growth. The results were
published in Algae 2020, a strategic guide for investors and technology developers in 2009,
and will continue with an updated study on more recent findings in January 2011.

Based on the results of this massive collaborative undertaking, it is absolutely clear that for
any algae producer or advanced biofuels company to receive investment, and grow out of
the lab into a commercial enterprise, the practice of strategic due diligence across a range
of domains is paramount to success. This requires dedicated research, development,
collaboration and diversification to prepare for rapid, transitional changes in regulations,
mandates, markets, technologies and subsidies.

Four Keys to Algal Biofuels Investment
The key findings from Emerging Markets’ continuing R&D efforts in Advanced Biofuels reveal
four common elements are critical for any algae company to attract investment and survive
in uncertain regulatory and market conditions.

The companies that have successfully attracted capital and graduated from the lab into pilot and demonstration projects have four fundamental elements in common:

1. The production of advanced biodiesel, ethanol, and fungible drop-in fuels.
2. The ability to demonstrate proof of concept to investors beyond the lab/bench scale.
3. Most utilizing molecular biology or advanced systems engineering platforms.
4. A diversified portfolio of fuels, advanced biodiesel and ethanol fuels, drop-in biofuels,
biojet fuel, green chemicals and biopolymers.





Proof of Concept
Of the 80 or so companies involved in the algae space, less than 25 have moved from stage
1 in the laboratory to stage 2 at the pilot phase during the economic recession. Few have
been able to convince investors to risk placing $1 million USD or more to make this
necessary transition.



If an algae venture is not (a) able to demonstrate and prove its
technology works on a small scale or (b) produce more than 1000 tons of algal biomass or
at least 100 gallons of algal oil with its partners, it is unlikely investors will take serious
notice. Notably, some companies have been able to attract investment based on initial proof
of concept at the lab/bench scale via strategic partnerships, early-stage VC money, and
government grants.


Advanced Algal Biodiesel, Ethanol & Drop-In Fuels
A common theme is found among the leaders of the field that have progressed into pilot and
demonstration scale projects. In addition to biodiesel and ethanol, these organizations are able to produce drop-in replacement fuels from microalgae, and blue-green algae also known as cyanobacteria and other microbes. Drop-in fuels from created from algae and other forms of biomass are the molecular equivalent of kerosene or JP8 aviation fuels, diesel and petrol and are otherwise known as green diesel or renewable diesel, bio-gasoline or green gasoline.

What explains the rising investment trends in advanced algae biofuels during an economic recession? Mandates and markets. In the biggest markets in Europe, the U.S., Brazil, China and India, government mandates are requiring large oil and gas refiners to blend in biofuels to their existing infrastructure. In 2008, the U.S. government enforced mandates for ethanol. By the end of 2011, the corn ethanol industry will soon approach the “blend wall” at 10 percent of total gasoline consumption or nearly 13 billion gallons. E15 adoption remains uncertain and, if implemented, is likely to be restricted by investment costs in infrastructure development (pipeline, storage) and costs of installing E85 pumps.

In the U.S., gasoline is the dominant fuel representing approximately 130 million gallons of consumption per year. Most oil and gas companies facing blending mandates, and auto manufacturers and transport companies considering fleet-wide upgrades to E15 or E85 wish to find fungible fuels that are compatible with existing engines, pipelines, storage systems and petrol stations.

The aviation industry faces similar challenges. In 2012, U.S. airline carriers flying into Europe will have to endure imminent carbon penalties, and can not use traditional ethanol and biodiesel fuels in their engines or at high altitudes. Advanced drop-in fuels provide answers to systemic problems and challenges in regulations, infrastructure and sustainability criteria. It is a tall order to fill, and most algae producers have barely scratched the surface in this regard to date with the exception of a few.

Investment Trends — Experience Matters
To meet the specs for advanced drop-in fuels, petrochemical engineers will tell you every
molecule counts. In response, molecular biology pioneers are leading the charge in
developing platforms from algae, cyanobacteria, and microbes to turn carbohydrates
(biomass) into hydrocarbons (fuels). This is one of the reasons Sapphire Energy has
attracted more than $100 million in investment on the concept of green gasoline and
aviation, and why Solazyme has been successful in attracting more than $100 million by
deploying a diverse platform for producing drop-in aviation fuels, green diesel, green
chemical and polymers and biodiesel.

This trend also explains BP’s $10 million investment in experienced algae producer Martek,
and Exxon-Mobil’s unprecedented $600 million collaborative R&D venture with Synthetic
Genomics to create drop-in fuels and biochemical products from advanced molecular and
biochemical engineering methods.


Global Diversification, Partnerships Key to Success
In a world of fast-changing regulations, there is a lot at stake in the biofuels arena. At the
start of 2010, uncertain and impending sustainability criteria in the EU and U.S. first generation biodiesel and ethanol markets are effectively limiting the growth of traditional biodiesel and ethanol markets.



The full impact of these regulations in the EU and the U.S. continues to present a major risk
for first-generation biofuels stakeholders, as seen in the 2010 CARB announcement and
2009 EPA biodiesel impacts. This was highlighted in the 2008 study Biodiesel 2020, and
articles in Biofuels Digest, Forbes, Renewable Energy World, The Futurist, and Biofuels
International as a message to biodiesel and bio-refining companies to diversify feedstock
inputs and fuel outputs or face the consequences of fast-changing and often unfriendly
national and state government sustainability regulations.


Algae - Advanced Biofuels Investments
In the capital markets, investors have far more confidence in market demand as a measure
of long-term opportunity in transport fuels and petrochemical derivatives. For this reason,
the early leaders in advanced algal and microbial fuels are diversifying and targeting
existing petrol, diesel and aviation markets, as well as related biofuels markets for green chemicals, polymers and power generation. The diversification of biofuels companies beyond
one fuel — ethanol and biodiesel — to include a portfolio of advanced biofuels represents a
wise long-term strategy to inspire investor confidence.



Over the next decade, the U.S., EU and the big emerging markets of China, India, Brazil
and Africa will demand more energy. Governments and investors are keen to see more
algae producers rise to the challenge, demonstrate proof of concept, and deliver on
promises for advanced biodiesel, ethanol, biojet and drop-in fuels.


This article is a complimentary excerpt from Algae 2020 study Vol 2 (2011 update)

 


  

Summary, Contents and
Order Form (
PDF, 3MB)

Now Available! Global Algae Producers, Projects, Ventures, Technologies, Investors, and Market Forecasts

The Algae 2020 study is a fact-filled guide designed for investors, producers, entrepreneurs, governments, researchers, consultants and executives.  Algae 2020 provides a comprehensive roadmap for the commercialization of biofuels, drop-in fuels, biochems and biomass markets based on site visits with more than 40 organizations.

Algae 2020
provides detailed case studies of leading companies, projects, ventures, public-private partnerships, research labs, and provides a set of scenarios, business strategies, market forecasts and an outlook for algal biofuels and biomass product commercialization to the year 2020.
 

 

Academic Members of Algae and Biofuels Associations receive an additional $100 Discount, by noting discount codes NAA, ABO, EABA, ABA, NBB, RFA on the order form. 

Please note the offer is only available for the Print version of the Algae 2020 Study to non-profit organizations, or emails with a name.edu, gov, mil, etc for verification.


To order: visit www.emerging-markets.com or

Email:  info@emerging-markets.com

Tel:  +1 713 429 4905 (Houston, TX)

 

 Media Coverage of the Algae 2020 Survey

Excerpts of initial findings from the Algae 2020 study have been featured in Forbes Magazine, Biofuels International, the Biofuels Digest, Renewable Energy World, The Houston Chronicle, and the Daily Telegraph UK.


About Emerging Markets Online

Emerging Markets Online (EMO) is a global biofuels and energy intelligence firm. EMO provides strategic business development advisory services, market research studies, management reports, and expert industry databases. 

Emerging Markets Online has been the recipient of Forbes Magazine’s prestigious “Best of The Web” award seven times consecutively. 

For more information, or to receive a price list for EMO products and services, visit
http://www.emerging-markets.com or call +1 713 429 4905 (Houston, TX)
 

 
 

 

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