Top Cdn BE: Financing Bioeconomy Ventures

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October 2, 2017,

Sixth Element is a boutique consulting firm, providing services on pro forma design and analysis, feasibility studies and business plans, technology/venture vetting and audits (see Projects for recent studies).  Our focus sectors are emerging biofuels and Indigenous bioeconomy ventures in the forestry sector, including lumber, logging and bioenergy.

Check out the Bioeconomy Conference Calendar.

For previous issues of Best Canadian Bioenergy Stories click here.

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This article is the introduction to a series of articles, reviewing the typical steps that investors consider before providing financial support to biofuels or biochemical projects. There is often disconnect between those seeking funding for new and emerging technologies, and those who can provide funds. Entrepreneurs often approach their requests for funding without providing the proper tools for understanding, evaluating and mitigating the risks of their projects. This series of articles is meant to bridge this gap, encouraging more investment into alternative and renewable fuels and chemicals projects… by Wayne Lee and Gerald Kutney.

Developing a pro forma projection for an investment opportunity is the first step for an entrepreneur seeking capital, and also the first screening level financing institutions use to evaluate such proposals. There are three fundamental areas of concern when preparing a pro forma analysis: focusing on critical near-term events, making the most accurate input assumptions and choosing an effective pro forma analysis platform... by Gerald Kutney.

A business plan contains basically only two major subjects:

  1. The business case for the investment: ROI and pro forma
  2. Risk management.

Keep in mind that investors review hundreds of business plans every year… by Gerald Kutney and Bob Kodrzycki.

Investors focused on renewable chemicals and fuels are looking for projects with the greatest commercial potential. However, within the plethora of potential projects in which to invest, there is a fog of virtual ventures. How do investors identify the best candidates? The decision process goes deeper than claims of “the best technology” and “high” return on investments. Whether a project uses an emerging technology or improves an existing process, a detailed competitive and strategic analysis of the project is needed… by Larry Bauer, Gerald Kutney and Bob Kodrzycki.

Ontario’s Independent Electricity System Operator recently announced it will offer contracts for 390 projects representing approximately 150 MW of small-scale renewable generation, including eight biogas projects. The IESO said the 390 contracts conclude the most recent procurement under the feed-in tariff (FIT) program, known as FIT 5. The selected projects include seven on-farm biogas projects, one municipal landfill gas project and 382 solar photovoltaic projects… by Erin Voegele.

Sept. 26, 2017 – Origin Materials has announced that it will locate its oxidation pilot plant at the Western Sarnia-Lambton Research Park in Ontario for terephthalic acid (PTA) and furandicarboxylic acid (FDCA) production. Origin recently purchased this asset from Eastman Chemical Company… by Origin Materials.

Sept. 26, 2017 – BioNB, New Brunswick’s bioscience agency, awarded ADI Systems the New Brunswick Bioscience Achievement Award on Thursday September 21 at the annual industry event, Innovation at the Market. Over 150 members of the business and research community gathered for the presentation of the award and the celebration of the substantial growth experienced by the province’s bioscience sector in recent years... by BioNB.

Sept. 29, 2017 – Two New Brunswick high schools are receiving an education in biomass boiler heating systems thanks to an initiative by the province to reduce its carbon footprint and promote the use of locally sourced wood.Sussex Regional High School in Sussex, N.B., a school of approximately 741 students ranging from Grade 9 to Grade 12, and Caledonia Regional High School in Hillsborough, N.B., which has approximately 310 students ranging from Grade 6 to Grade 12, both had the same issue that needed to be addressed: aging oil-heat boiler systems that required replacement... by Andrew Snook.

While legalization of marijuana has communities worried about under-age sales and impaired driving, Agriculture Minister Lana Popham has also had an earful about the threat of food-producing land being converted to feed the recreational cannabis market. Delta Mayor Lois Jackson quizzed Popham on the subject at a natural resources forum at the Union of B.C. Municipalities this week… by Tom Fletcher.

BioAmber’s Mission? To be a fast growing producer of chemical intermediates that uses sugars instead of fossil fuels and sells competitively priced, sustainable chemicals with strong profit margins and the cleanest environmental footprint in the industry. The latest? “We are pleased to report our second quarter 2017 results generated BioAmber’s largest quarterly revenue ever. Year to date we have experienced the greatest acceleration in new customers and new applications since our Sarnia facility was commissioned. Investments in our customer base are resulting in increased sales…  by Bioamber.

In the city of La Tuque in north-central Quebec, Bioénergie La Tuque (BELT) is making revolutionary strides to lead the way in the development of the bioenergy sector. With the support of a powerhouse team consisting of FPInnovations, CanmetENERGY, Université du Québec à Trois-Rivières (UQTR), Ecole Polytechnique, FORAC Research Consortium, the Quebec provincial government, and the federal government, its sights are set on developing a leading-edge biorefinery facility for the production of renewable diesel from forest harvest residues… by FPInnovations.

Wood waste is all around and ever increasing. As much as it pains tree huggers, we chop down trees to use them for buildings, paper, and seemingly everything in between. While some scientists say we have to cut down some trees in order to save them, others say we cut down too much. Regardless of which side of the fence you are on, the chopping continues and there are literally tons of wood waste left behind that doesn’t get used up, but we can all agree we should do something with that waste. Today, we look at the top 10 projects from around the world that are taking the leftovers and turning them into something valuable… by Helena Tavares Kennedy.