white biotechnology needs green backing! · malaysian industrial biotech expansion ... and wellness...
TRANSCRIPT
Dr. Ganesh M Kishore, PhDSpruce Capital Partners
MLS CF I and II
MontrealJuly 2015
White Biotechnology Needs Green Backing!
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MLSCF
MLSCF I, A $162M fund, fully committed
MLSCF II, first closing at $150M in late 2014 and working towards a $200-250M final close by late 2015
Spruce Capital Partners (Drs. Wyse, Kishore and Mr. Young) and Xeraya Capital, co-manage MLSCF funds
Investing globally in innovation-led in biogreentech ventures
Addressing major opportunities in energy, food, feed, materials and wellness
MLSCF I Strategy and Execution
Improving feedstock productivity
Harvesting natural resources sustainably
Efficiently converting biomass to feedstocks
Addressing gaps in supply – feedstock mix
Next generation fine & specialty chemicals
Health Care Investments, pertinent to ASEAN – LSO, Sentinext, Cerca, BLSCF III
Malaysian Industrial Biotech Expansion – MYBIOMASS; SD-VERDEZYNE, CJ
MLS II Strategy and Status
Addressing Unmet and/or Underserved opportunities in Agriculture –
Changing paradigm for industrial biotechnology –
Leveraging Data Analytics, Sensors, Robotics and Automation in Agricultural value chain – UNDER WAY
Human and Animal Nutrition to improve Health and Wellness
Innovative applications for biochemicals – food industry; materials and fibers
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Major megatrends shape investments in life sciences
Middle Class expected to be 4.9Billion people by 2030; 1.8 Billion today
Consumption by this middle class expected to be $35 Trillion more than today ($21 T now)
Most consumption growth in Asia (>75% growth)
Growth in areas of Energy, Food, Materials, Health and Wellness 30-60% growth by 2030)
Population contributes another billion people
Understanding of Genome, enabled by IT, Miniaturization and automation
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AND CREATE SUBSTANTIAL OPPORTUNITIES FOR COMPETITIVE
ENTERPRISES
Agriculture has to address both Quantity and Consistency
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60% of farms in US experienced Drought in 2012
Corn – Average Yield of 123.4 Bu vs. 165 Bu per a
Soy – Average Yield of 35.3 Bu per a vs. 43.9 Bu per a
July 11, 2015
Divergent technologies are converging to address the need and opportunity in agriculture – Improved Genetics
Improved Genetics
Biotechnology
Molecular Breeding
Cell biology
7Third wave of technology convergence
The convergence of technologies is not limited to improved genetics – it extends into the value chain
Increased Yield,
productivity, quality,
Sustainability
Robotics, Automation
Sensors
Improved Genetics,
Chemistry, Biologicals,
Nutrients
IT
8Bigger, Faster, More Intense
Modified from E. Pennisi Science 327, 802-803 (2010)
Nutrient content & qualityNo sex
Indicators of stress; stress tolerance
More cropPer drop Shelf life
Nutrient response
light response/efficiency- Duration of Photosynthesis
Pest resistance
Opportunities for Crop Improvement
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Applications of BioDirect Technology
Initial Focus – Pest control
Longer Term - Quality
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N-Fix – Food Grade Bacteria
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Naturally occurring, Nitrogen fixing bacteria from sugarcane (inter-cellular) - takes up and uses Nitrogen from the air
Applied to the cells of plants (intra-cellular) via the seed - provides every cell in the plant with the ability to fix Nitrogen
Nitrogen fixing bacteria intracellularly into plants via the seed -replaces around 60% of plant’s Nitrogen needs
N-Fix is neither genetic modification (GM) nor bio-engineering
Seed dressing & soil inoculant can be easily mass produced through normal fermentation
Tran
sfo
rmin
g A
gric
ult
ure
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We are migrating from mechanization to automation
Enabled by Big Data Capabilities
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The Emerging Bioeconomy Is Reshaping The Chemical IndustryIncreasing Convergence Of Petro/Oleo/Bio Companies To Biogreentech Innovation Addressing Demand for Green and Responding to Broad Market Drivers
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CONVERGENCE TOWARDS INNOVATIONS IN BIOGREENTECH,
NANOTECH, SUSTAINABILITY
Market Demand
O&G Feedstocks & Refiners Petro-chemical Companies
Bio Feedstocks & Refiners Oleo/Bio-chemical Companies
Note: Companies represented on this slide are only a subset of examples for each category
Ven
ture
Cap
ital
B
acke
d In
no
vato
rs
Market Drivers
Regulatory Trends,Price Volatility,
Diminishing Natural Resources
Technology at commercial scale – world’s first Iso Butanol Plant
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The Pathway for biosynthesis of rebaudiosides in Yeast – Fine Chemical Production
Enormous Market – most oil from wells is unrecovered! Biology and Oil Recovery
>$2 billion annual value creation from 1% market capture2
2/3 of resources typically left behind1
>$70 trillion value2
2 $90 oil
EIA International Energy Annual Report 2006. Unrecoverable reserves several times higher than 1.2 trillion bbls
8 billion bbls annual production from candidate reservoirs worldwide
1.2 trillion bblsconventional reserves worldwide1
2/3 of reservestypically left behind
Glori Energy is using biotechnology to harvest oil
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For start ups
Significant opportunities remain in agriculture:
Input reduction
Pest protection Yield protection
Light efficiency
CO2 fixation efficiency
Yield genes Yield enhancement
Breeding, Germplasm
Cell biology Consistent Yield
IT, Automation
Plants as factories Differentiated Grains
For Start Ups
Significant Opportunities in Specialty and Fine Chemicals and Enabling Platforms:
Conversion of C1 and C2 substrates to innovative products with applications in food, feed, chemical and material industries
Reducing fermentation time and increasing concentrations of substrates and products
Nutritional, Wellness products in Human and Animal Nutrition
Pest Control Agents with unique modes of action; materials with unique properties etc.
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Key Take Home Messages:
Innovation in Bio Green technology is essential for global Nutrition, Energy and Material Security – population, economic growth & climate change
Green Biotechnology has enabled superior pest control – still need to address the calorie needs and protein needs of seven billion plus people
Securing consistent and higher yield remains an imperative for Bio Economy
Developments in synthetic biology and chemistry enable the improved productivity of agriculture and forestry feedstocks and leveraging them for both fuel and chemical applications
First generation of White Biotech products continue to expand; Second Generation of White Biotechnology products are addressing the issues of scale up and capital
Regulations and public support is essential for the emergence of bioeconomy
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