Biofuels Digest – Daily Biofuels News – FREE Subscription – the latest on algae, jatropha, cellulosic ethanol and drop-in renewable biofuels is a post from: Biofuels Digest

Joule’s Helioculture process mixes sunlight and CO2 with highly engineered photo synthetic organisms, which are designed to secrete ethanol, diesel or other products.

However, unlike algae and other current biomass-derived fuels, the Helioculture process does not produce biomass, requires no agricultural feedstock and minimizes land and water use. It is also direct-to-product, so there is no lengthy extraction and/or refinement process.

The breakthrough was made possible by the discovery of unique genes coding for enzymatic mechanisms that enable the direct synthesis of both alkane and olefin molecules – the chemical composition of diesel. Production was achieved at lab scale, with pilot development slated for early 2011.

Because its organisms are being engineered to directly secrete hydrocarbon molecules, Joule will avoid costly steps such as large-scale biomass collection, energy-intensive degradation, or other downstream refinement. In addition, Joule’s process requires just marginal, non-arable land, no crops and no fresh water.

More about Joule:

Joule Biotechnologies: 50 Hottest Companies in Bioenergy candidate profile

Joule narrows list for pilot plant to five towns; seeks CTO

Joule Biotechnologies announces process to convert CO2 to fuel; scalable; 20,000 gallons per acre; parity with $50 oil

Fuel from Thin Air? Joule reports direct microbial conversion of CO2 into hydrocarbons; no biomass, no extraction, no refinement is a post from: Biofuels Digest

So What’s New?  Marketing Your Strategic Direction

Position Only For Growth is the first PROFITS principle.  For our purposes, growth is profitability, expansion, or other ways you may define success in your industry – in this case, bioenergy.  When you Position Only For Growth, any change you make keeps you focused on sustainable profitability.

Think about your company.  Is it time to refocus your direction – or can you better position yourself without making major changes in your strategy?  Many times, a company only needs to make its purpose/mission/vision more clear.  In our continuing series about Codexis Inc., we continue to examine some of the important best practices the company follows as it positions itself more clearly.

Positioning is an ongoing best practice.  It is not something you do once.  As your market and industry evolve, be sure to shift your focus and/or rethink your marketing message and approach to your customers and other stakeholders.  Some of these positioning actions will influence your approach to the market:

Þ   Market to shape our strengths

Þ   Strengthen strategic relationships

Þ   Highlight your competitive advantage

Þ   Speak to the media

Once again, using Codexis as our example, we examine some of their practices as the company goes to market in licensing its technology and providing other avenues for customer growth.

Market to shape your strengths

Many times, bringing new people into the organization, or changing the structure in your existing organization, sends a signal to the market that the company is repositioning.  This helps people pay attention and gather information about company positioning changes.  This year, Codexis refocused major roles to alert the market that Codexis is more than a technology platform with two very different divisions.  The message is that Codexis is integrated with a common platform.

Recently, Codexis reframed the role of its Senior Vice President, Research and Development, Dr. Dave Anton with responsibility for R&D activities for both the company’s bioindustrials and pharmaceuticals businesses. His previous responsibilities included only Codexis Bioindustrials.  Codexis is positioning itself as a strong science company and moving beyond its emphasis in technology.  Since Codexis already has technology credibility, the company is evolving to an applications company.

The company also announced that John Grate, Ph.D., previously Senior Vice President, Technology and Innovation and Chief Technology Officer, became Senior Vice President, Science and Innovation and Chief Science Officer.  Though the changes may appear subtle, they highlight the company’s marketing shift to the importance of science applications, in addition to technology,  in all divisions.

For example, instead of featuring development of new technologies and practical applications, John Grate, also in a new role, has responsibility for creating and leading a productive R&D team addressing the challenge of climate change with next generation biofuels.  Furthermore, Codexis, in its press release stated that Dr. Grate provided outstanding leadership, driving our directed evolution platform beyond the legacy technology and on to commercial scale in the pharmaceuticals industry, and launching our program in biofuels.

It also states that Dr. Grate is advancing biocatalysis technology globally to expand Codexis technology platform through innovation, licensing and acquisition, and creating new markets focused on protecting the environment.

The challenge, emphasizing the focus on climate change with next generation biofuels is more targeted than previously.  Also, by highlighting the advance of biocatalysis technology and expansion of the technology applications and licensing/acquisitions and creating new markets focused on protecting the environment, we can see how Codexis is repositioning the company and its direction for future growth.

As you think about repositioning for growth, mentally make note of your customers.  Which customers are in the best position for future growth?  Do any of these customer companies offer you opportunities in terms of supplier relationships, customers and/or customer relationships?  Think about whether these companies afford you with potential growth opportunities. If these are important relationships, what can you do to foster growth for strengthening your relationship with them?

Strengthen strategic relationships

When companies form strategic relationships, there appear to be opportunities for everyone involved.  Is this true in your case?  Are there companies that you keep your focus on?  What makes them a good, potential strategic partner?  Do they have resources and will they share these resources with you?  Are these potential market driven relationships or product driven relationships?  Do you have relationships with your customer’s customers?  Are there areas of mutual respect?  Do you share important customer information?  What would it take for your partnership to develop further?”

Shell and Codexis are expanding a collaboration that started in November 2007 to investigate the research of new biocatalysts to convert biomass directly into components similar to gasoline and diesel.

Shell also increased its equity stake in Codexis and will take an additional seat on the company’s board.  This new development provides both Shell and Codexis with a better sense of direction and the opportunity to highlight its competitive advantage.

Highlight your competitive advantage

A competitive advantage can be anything you possess and can use as influence. Additionally, stakeholders view this competitive advantage as valuable.. This competitive advantage must be unique to your company.   And as a first adopter, in any area, you may have an edge over your competition.  What is unique about your company, product and services?  How can you position your message with greater clarity and broader market reach?  If nothing comes to mind that provides you with a competitive advantage, you may want to retire your business.  A ‘me too’ company just won’t be good enough.

Codexis prominently highlights its competitive advantage on its website.  It effectively lays out how the technology works and is complete with diagrams. The website also formats the competitive advantage in a readable and clearly displayed list of key features, along with an overall statement of competitive advantage.

Codexis’ website prints that its ‘technology creates significant value for its customers by improving chemical development productivity while reducing cost and environmental impact.  Working with Codexis can yield competitive advantages for partners in several significant ways.’

It goes on to highlight its five key competitive advantages:

• Proprietary and disruptive Technology Platform
• Multiple major target markets
• Partnerships with global industry leaders
• Capital efficient business model
• Diversified and visible revenue base

Communicate who you are to the industry. Highlight areas that you offer that your competition does not.  Emphasize processes that work and are unique.

As long as you are providing the information, the media can be your friend.  They may even be willing to promote you at no fee, if you can be an interesting feature that offers practical advice.

Speak to the media

Take the opportunity to get publicity and get your name out in front of customers and potential customers.  Below is an example of how Codexis CEO, Alan Shaw, spreads the word about Codexis and demonstrates openness and flexibility to attract interested customers and other stakeholders.

Codexis CEO, Alan Shaw speaks to the media and clarifies key points and interests about Codexis.  For example, on August 11, 2009, Reuters published an article about Codexis and the coal market.  It stated…”Coal companies, governments and environmental activists are hoping for breakthrough technologies that will help trap, transport and bury underground carbon dioxide, the main greenhouse gas blamed for global warming.”

Shaw, then let it be known that Codexis is now actively looking for a partner to help the company market an enzyme that helps capture carbon dioxide from smokestacks of coal-fired power plants.  He remarked, “Coal is not going anywhere fast. There’s an urgent need to take carbon dioxide out of coal-fired power stations.”

In a somewhat bold statement, Shaw said the company, which also counts General Electric Co and Pfizer Inc as shareholders, has successfully completed testing its product in the last couple of months and is looking to commercialize the technology.

“We need a partner and are actively talking” to companies, he said, citing a huge interest in the market for such a technology. “The market is meeting us more than halfway.  ….A company like GE could be a great partner,” Shaw said, but he declined to say if Codexis was in talks with the industrial conglomerate.  Shaw said the company plans to aggressively scale-up its plans for the carbon market in 2010.

As you can see, Shaw put the market on notice about what it needed and wanted to be a market leader in this arena.  This is what market leaders do.

In Summary

Today’s topic, Position Only for Growth, is one of the seven Bioenergy PROFITS Principles.  As you Position Only for Growth, market to shape our strengths, strengthen strategic relationships, highlight your competitive advantage and speak to the media, you engage in some of the most powerful best practices.

This series highlights proven principles to running your business more effectively (from the newly released book, Run Your Business like a Fortune 100: 7 Principles for Boosting PROFITS, by Rosalie Lober, Ph.D.) and illustrates best practices and history of the successful company, Codexis.

Codexis develops biocatalysts for the pharmaceutical and biodiesel industries. Its technology produces biofuel from plant material and works with other markets to use its technology to manage CO₂ emissions from coal-fired power plants and to treat wastewater.

Bioenergy PROFITS Principles: Position Only For Growth, and Codexis is a post from: Biofuels Digest

According to a report in Reuters, the EPA is reportedly warning that it may not meet an expected December 1st deadline for a decision on allowing E15 ethanol to be blended with the gasoline supply. According to the Reuters report, EPA “is still reviewing test results on how the higher blend rate would affect engines “across the board,” — including cars, trucks, snow mobiles, motor boats and lawnmowers.”

The news comes amidst signs of revival of ethanol capacity. In South Dakota, Tenaska BioFuels and Tri-State Financial signed a two-year tolling deal that will result in a restart of ethanol production at the 26 Mgy North Country Ethanol plant, which was idled 13 months ago and languished in bankruptcy proceedings. Under the tolling agreement, Tenaska will purchase corn and natural gas and own the ethanol and distillers grains produced by the plant.

Meanwhile, INEOS Bio announced commencement of an advanced biofuels feasibility study for a plant proposed for the company’s Tees Valley site in the UK. The $5.83 million feasibility study, which includes detailed engineering design work, will inform an investment decision in 2010 for a commercial facility. The INEOS Bio process is a combined thermochemical and biochemical technology for the production of ethanol and renewable power from a wide range of low-cost carbon materials, including biodegradable household and industrial wastes, using an anaerobic fermentation step, through which naturally occurring bacteria convert gases derived directly from biomass into ethanol. The process supports high recycling and high landfill diversion rates.

EPA wavers on E15 waiver deadline, as ethanol awakens: overcapacity looming anew? is a post from: Biofuels Digest

Based in: New York
2008-09 rank: Unranked

Business:

Extraction of corn oil from ethanol co?product. Transesterification — integrated refining upgrade for corn oil extraction facilities

GreenShift develops and commercializes clean technologies designed to integrate into and leverage established production infrastructure and distribution channels to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co?product reuse, and reducing the generation of wastes and emissions. Over 20% of the U.S. ethanol industry is using GreenShift’s patented and patent?pending extraction technologies today.

Past Milestones

A. Complete financing for construction of new facilities based on patented and patent?pending corn oil extraction technologies.

B. Form strategic partnerships to accelerate and amplify execution of go?to?market strategy for corn oil extraction technologies, and to enhance the development of pilot and bench stage technologies.

C. Restructure $40 million in historical debt raised during 2004?2007 to develop and commercialize extraction and refining technologies.

Future Milestones

A. Build value for GreenShift’s clients and shareholders by building as many corn oil extraction facilities as possible, as quickly as possible, with a view towards achieving 100 million gallons per year of installed corn oil extraction capability within 5 years.

B. Continue to improve upon patented and patent?pending corn oil extraction and related technologies (i) to maximize yield, (ii) to decrease cost, energy and carbon, and (iii) to enhance the value proposition to GreenShift’s clients and shareholders.

C. Make a meaningful contribution to shifting the corn ethanol industry into increased economic and environmental sustainability by demonstrating the commercial viability of GreenShift’s full backend Fractionation technology portfolio in collaboration with strategic partners.

Model:

GreenShift licenses its patented and patent?pending corn oil extraction technologies to corn ethanol producers in return for the right to purchase the extracted oil for the life of the use of the technology. GreenShift earns money by buying and selling or refining the extracted oil. The price paid for the oil corresponds to a substantial premium to the value of the oil to participating ethanol producers prior to extraction. At this rate, GreenShift retains about 20% of the value of the extracted oil.

Quotable quotes:

“GreenShift’s primary competitive advantage is its use of its technology positioning to deliver powerful competitive advantages to the renewable fuels industry –increased sustainability, reduced cost, reduced energy, and reduced carbon, all through the industry’s existing production assets.

“With a majority of plants adopting GreenShift’s patented and patent?pending corn oil extraction technologies, and with an estimated 11.5 billion gallons of ethanol produced,the ethanol industry could be saving about 100 million MMBtu per year while producing more than 2.8 million tons of inedible corn oil per year (over 736 million gallons). The result at current market prices is staggering: the ethanol industry could be producing over $1.1 billion, in additional profit today by using GreenShift’s corn oil extraction technologies.

Metrics:

GreenShift’s Corn Oil Extraction Technologies increase biofuel yields per bushel of corn by7% while reducing the energy and greenhouse gas (GHG) intensity of corn ethanol production by more than 21% and 29%, respectively. These benefits correspond to increased ethanol producer income of about $0.12 per gallon of ethanol produced at current market prices, and can be realized for less than 10% of the capital cost of the host ethanol plant.

The Hot 50 for 2009-10 will be released Tuesday, 12/1. Between now and then, you’ll see profiles of potential candidates in the Digest, and you’ll have a chance to vote for your favorites. Reader response will count for 50 percent of a company’s overall score in the preparation of the rankings. The remaining 50 percent is voted by a panel of experts.

GreenShift: 50 Hottest Companies in Bioenergy candidate profile is a post from: Biofuels Digest

Today in Biofuels Opinion: “The pathway that I think is likely to be the winner is enzymatic hydrolysis.” is a post from: Biofuels Digest

The writers suggest that  forgoing extraction of oil and gas reserves in remote or sensitive places could be an important piece to a larger global strategy designed to limit carbon emissions and that this Initiative “is the first real offer to do just that.”

According to estimates by Ecuadorian official , avoiding the exploitation of the ITT oil fields, will keep 410 million metric tons of CO2 out of the atmosphere. Under the proposal, Ecuador seeks $350 million for each of the next 10 years in alternative revenue. Ecuador’s intent is to sell certificates linked to the value of the unreleased carbon. However, critics say that the carbon offsets would not reduce global CO2 if traded on the global carbon market. Germany is reported to be considering a $50-$70 million donation towards the project.

Pros and cons of Ecuadorian carbon offset proposal; is avoidance the same value as CO2 reduction is a post from: Biofuels Digest

The BBU said that Brazilian biodiesel industry has a total capacity of 952 million gallons per year at 43 facilities, but 50 percent of current capacity was offline due to low demand. Production is expected to reach as high as 630 million gallons in 2010.

Brazilian Biodiesel Union says new B10/B20 standard will increase demand by 660 Mgy is a post from: Biofuels Digest

BioCube passes initial tests; compact biodiesel processor moves to Papua New Guinea for field trials is a post from: Biofuels Digest

In 2008, Malaysia produced 17.7 million tons of crude palm oil and exported RM65.2 billion (US $17.6 billion) of palm oil products, with a yield of 3.9 tons of oil per hectare per year. The consortium included Orion Genomics, MOgene, The Genome Center at Washington University, Macrogen, and Adelaide, and GeneWorks.

Genes sequenced for three oil palm species; improvements in yield, disease resistance mooted is a post from: Biofuels Digest