First published in Cleantech Infocus: 2010 - Equity Deals of the Year, January 2011. Copyright Cleantech Investor Ltd
The most significant deal in the biofuel sector in 2010 was the agreement in February between Shell and Brazilian ethanol producer, Cosan, to enter into a joint venture involving a merger of the Brazilian assets of the two companies (in the case of Shell, certain assets in Brazil only) and an equity injection by Shell into the combined company of $1.6 billion. However, that deal only cleared regulatory approval in the EU at the start of January 2011 and the final documents are still to be signed.
Brazil aside, biofuel deals in 2010 were notable for an emphasis on next generation technology. NASDAQ saw two significant IPOs, Amyris Biotechnologies and Codexis. Of these, Amyris is focusing on Brazil and next generation technologies for sugarcane, and the other, Codexis, has received investment from Shell – and Shell’s stake will be held by the Cosan/Shell joint venture once it is approved.
In the US, LS9 and Gevo, both focused on innovative next generation biofuels – and both believed to have been considering an IPO – settled for raising private funding.
A number of failed or postponed fund raising efforts featured on the news wires during the year – notably in the algae biofuel space. These included PetroAlgae, which filed for an IPO in the US, and Algae.Tec, which was understood to be planning to list on the ASX.
In the broader bioenergy space, Canada’s Plasco Energy Group, which has developed plasma technology for the conversion of municipal solid waste, raised $110 million in July.
Codexis Inc.
IPO - NASDAQ
Codexis shares were listed on NASDAQ in April, raising $78 million. The company works with enzymes for industrial processes and has developed biocatalysts, or ’super enzymes’, which perform to custom specifications on a commercial scale. Codexis works with Shell in the development of second generation biofuels. It also has a host of pharmaceutical industry clients and is developing technology for carbon capture in coal-fired power plants, in collaboration with Alstom.
Amyris Biotechnologies Inc.
IPO - NASDAQ
September saw the IPO of biofuels company Amyris Biotechnologies on NASDAQ. The shares were issued at a price of $16 and the company raised $85 million. Amyris, based in California, has developed a synthetic biology platform for the production of fuels and chemicals. It has stated that its first commercial products will be renewable speciality chemicals and transportation fuels produced in Brazil using sugarcane as feedstock.
LS9 Inc.
Venture Capital Fund Raising
California-based LS9 raised US$30 million in a Series D funding round led by BlackRock. Existing investors, including Flagship Ventures, Khosla Ventures, Lightspeed Venture Partners and CTTV Investments, also participated. LS9 has developed a fermentation process using “DesignerMicrobes™” for converting biomass into “UltraClean™” fuels. LS9 fuels are engineered to have higher energetic content than ethanol or butanol and fuel properties that are essentially indistinguishable from those of gasoline, diesel or jet fuel.
Gevo Inc.
Strategic Private Investor
Gevo, based in Denver in the US, has secured funding from German speciality chemicals company, Lanxess, alongside existing investors. The investment from Lanxess follows on from an investment by Total. Gevo is developing biorefinery systems including a platform for the production of isobutanol – a petroleum substitute. The company is understood to be planning an IPO. Venture investors in Gevo have included Khosla and Virgin Green Fund.
Plasco Energy Group Inc.
Private Equity Funding
Ottawa, Canada-based Plasco Energy Group raised $110 million in July. The funding round was led by Ares Management LLC, which committed $100 million. Plasco is launching its Plasco Conversion System technology, which converts municipal solid waste into energy. The company, which has a long track record of working with plasma technologies, is developing waste conversion facilities at locations in North America, Europe and China.
The company had previously raised $135 million in investments, since 2005, from a group of investors including Black River Asset Management, RAB Capital and Rose Corporation.
| Next > |
|---|
