lifescience alley conference
TRANSCRIPT
LifeScience Alley ConferenceWhat's New in Green
December 2009
OUR PANEL
2
Olga Selifonova, Founder and Vice President of Corporate Development
• Segetis
Luca Zullo, PhD, Co-Founder and CEO• BioCee
Rob Janzen, PhD, PAg, Vice President, ClimateCHECK• ClimateCHECK
Jon Hjelm, Vice President, Clean Technology and Renewables Investment Banking
• Piper Jaffray & Co. (moderator)
OVERVIEW AND PROGRAM
3
• Introduction of Panel• Definitions of Green
• Environmentally Sound Practices (climate/energy, recycling…)
• Green Biobased Technologies (biofuels, bioproducts…)• Financing Commercialization – Status of Movements• New View on Economics of Green• Evolving Business Model in New Economic Environment• Q&A• Wrap-up
OVERVIEW AND PROGRAM
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• Introduction of Panel• Financing Commercialization – Status of
Movements• New View on Economics of Green• Evolving Business Model in New Economic
Environment• Q&A• Wrap-up
POOLS OF AVAILABLE CAPITAL
1Private Equity
VC Later Stage Hedge fund Project
Equity
Each Pool can be Stage-of-Development dependant Execution is Best when all Pools are Open
2“The Washington Capital Markets”
Grants Tax Benefits State Help Loan
Guarantees
3Strategic Investors
Big Oil Energy
Companies Chemical
Companies
4The Public Market
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Overview
GOVERNMENT CAPITAL MARKETS
• Continued focus on supporting technologies across multiple platforms: biomass, solar, biofuels, and others
• Support not only through production tax credits, but increasingly with grants and loan guarantees
• Continuing to get clarity on how technologies work and seeing capital deployed• Investors are getting more comfortable with potential opportunities to leverage
Key Announcements Selected Companies• Recovery Act awards for electric
drive vehicle battery component manufacturing
• Treasury/DOE announce surpassing $1 billion in direct payment awards
• $300 million into Clean Cities Grant
• ARPA-E selects 37 projects for over $151 mm in funding
• Solyndra– Secures $535m federal loan guarantee to build a
500MW factory• Fisker
– Granted $529m to develop two alternative energy vehicles
• A123– Awarded $249m grant from DOE for
manufacturing initiative• BioCee
– Receives a $2.2-million ARPA-E grant from the US Department of Energy
• Nordic Windpower– Receives $16m loan guarantee to expand a wind
turbine assembly factory
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AVERAGE DEAL SIZE IN MAJOR VC-BACKED SECTORS
Source: Clean Tech Network
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The average deal size in the cleantech space has declined since the financial crisis, while other sectors were less affected
PRIVATE CLEAN TECH INVESTMENT
Source: Clean Tech Network
Global Clean Tech Venture Capital Investment Q1 2006 – Q3 2009
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PERCENTAGE OF CLEANTECH VC INVESTMENT BY TECHNOLOGY
Source: Clean Tech Network
The Solar Sector reclaimed its position as the top recipient of cleantech VC funding in Q3 2009; Transportation fell below solar with just over 25% of funding
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BIOFUELS INVESTMENT
Source: Clean Tech Network
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BIOFUELS INVESTMENT
Source: Clean Tech Network
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Total VC Investment in Biofuels by Sub-Sector
BIOBASED CHEMICALS/MATERIALS LANDSCAPE
Thermo-Chemical Origin
Bio-technological Origin
Petroleum/Natural based
Fats/proteins Starch/Sugars
Lignocellulosics- Bagasse- Wood- Straws, StoverOthers- Pectins- Chitosan- Gums
Animals
Vegetable- Oils- Glycerol
PLAPHA’s Nylon 11PE/PPAliphaticPolycarbonateCellulose acetateThermoplasticStarchAcrylics
- Oils - Casein- Whey- Gelatin
PCLPolyestersStarch blends Nylon 6,10Nylon 6,12 PBSPTT
Agricultural Feedstocks
Polysaccharides
L-ketalsFuranics
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GREEN MATERIALS COMPANIESMid-1990s Early 2000s TodayNatureWorksNovamont
NatureWorksNovamontCargillDuPontMetabolixPlantic
NatureWorksNovamontDuPontCargill (BiOH)MetabolixPlantic SegetisAvantiumBioenergyBraskemDrathsElevanceGenomaticaNovomer
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AUDIENCE Q AND A
Q AND A
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