Biochemicals

Jim Lane As many technologies pivot or delay, one train keeps chugging on its route to biosuccinic acid, and markets like BDO, resins and polyols. What is it about the business model that keeps on working? What can every integrated biorefinery learn from its approach? In Minneapolis, BioAmber (BIOA) just announced a contract to supply a minimum of 80% of PTTMCC Biochem’s total bio-succinic acid needs until the end of 2017. PTTMCC Biochem is a joint venture established by Mitsubishi Chemical and PTT, Thailand’s largest oil and gas company, to produce and sell polybutylene succinate (PBS),...

Jim Lane Solazyme undergoes Focus Reassignment Surgery and re-emerges as TerraVia. Industrials to spin off, nutrition the focus now. The what, the why, and the “why now?” In California, Solazyme (SZYM) said that it is now focusing exclusively on food, nutrition and specialty ingredients, renaming the company TerraVia. Having elevated CEO and co-founder Jonathan Wolfson to the Executive Chairman post, the company says it is on the hunt for a food-business CEO, and has raised $28M from a group of foodie investors including Glenhill Capital, VMG Partners, PowerPlant Ventures, ARTIS Ventures, Simon Equities and several influential food industry...

Jim Lane What makes Amyris (AMRS), Amyris? We look at the products, the evolution of the story, the partners, the focus on yield, and deeper into the story of Rate. “I mean, man, whither goest thou? Whither goest thou, America, in thy shiny car in the night?” “Whither goest thou?” echoed Dean with his mouth open. We sat and didn’t know what to say; there was nothing to talk about any more. The only thing to do was go.” Jack Kerouac, On the Road Amyris experienced last month what CEO John Melo referred to as “our...

Jim Lane Portrait of a breakout: Amyris (AMRS), Cosan (CZZ) JV Novii launches “next generation of revolutionary oils” touting “unmatched value” and “unbeatable economics” In California, Novvi unveiled two new 100 percent renewable base oil products, a 100 percent renewable polyalphaolefin (PAO) Group IV and a 100 percent renewable version of its NovaSpec Group III+ base oil. Both will be manufactured at the company’s production facility in Houston. Base oils are blended with additives to make the engine oils and lubricants sold on the market today. So, here’s the technical scoop. Novvi’s 100 percent renewable...

Jim Lane From Colorado, news has arrived that Gevo (GEVO) is now selling paraxyleme to Toray (TRYIF), one of the world’s leading producers of fibers, plastics, films, and chemicals. It’s producing PX from isobutanol, one of its three molecules in production (the others are jet fuel and iso-ocrane) at its complex in Silsbee, Texas. Toray expects to produce fibers, yarns, and films from Gevo’s PX. While any new molecule attached to a major customer relationship is always big news for any producer this has special significance. Let’s review exactly why....

Jim Lane In California, Amyris announced positive cash flow of $1.7 million in the first quarter despite negative currency effect of $1.2 million. Overall, Amyris recorded Q1 2015 non-GAAP cash revenue inflows of $30.3 million, compared with $17.9 million for Q1 2014. Total Q1 2015 revenues were $7.9 million, an increase of 30% compared with same quarter last year. Cash, cash equivalents and short-term investments of $44.9 million at March 31, 2015, an increase from $43.4 million at December 31, 2014. “We’re pleased with our continued execution toward diversifying and growing our revenue base through an expanding...

by Debra Fiakas CFA Since the end of August last year shares of renewable chemicals developer Amyris (AMRS:  Nasdaq) have been in a steady decline.  Since falling through a line of price support near the $2.50 price level in early December 2014, it appears there is no safety net for AMRS.  The stock set a new 52-week low in the third week in January 2015.  Unfortunately, a popular technical indicator, the average directional index, is providing a very strong indication that the stock could fall even further.   With its stock chart providing no hints at a reversal in...

Jim Lane A Biofuels and Biobased investment primer: An 18-combination, 8-character system for classifying bio investments Here’s our investment primer on how to size up the risks and the rewards and tune them to meet your goals. And, a system for organizing opportunities. So, you’re thinking about investing in bio? Here’s the good news – you’re not alone. Here’s the bad news – you’re not alone. There are retail, private equity, hedge fund, sovereign wealth, strategic, grower, VC and institutional investors snooping around too, and making active investments. For one thing, carbon’s making a comeback as the...

by Debra Fiakas CFA Plastic is everywhere  -  our homes and offices, the cars we drive, our personal items, food containers and even our dental fillings.  Plastic is also toxic.  Dioxins, BPA (bisphenol A) and PCBs (polychlorinated biphenyl), both of which are critical chemicals in plastics, have been identified as endocrine disruptors, upsetting hormonal balance, triggering the growth of tumors and interfering with sexual development in fetuses. Even people who deliberately avoid plastics are exposed to the toxicity.  For example, we ingest BPA when eating fish that lived in waters contaminated with plastics.  Remember that ‘island’...

Jim Lane Despite a dismal beginning to earnings season, as Amyris, Arcadia disappoint, the Eco-Emirates of Emeryville look set for huge expansion in 2016. In California, Amyris (AMRS) reported Q4 revenues of $9.6mn and a net loss for Q4 of $41.9 million ($34 million after elimination of non-recurring items), well below Wall Street consensus estimates of $32.4 million. “The fourth quarter resulted in our best renewable product sales quarter to date during 2015 while also highlighting our challenge in completing our product finishing and shipping in time for one of our customers,” said Amyris CEO John Melo,...

Jim Lane In California, Amyris (AMRS) reported Q1 revenues of $13.0M compared with $8.8M for Q1 2016, and touted the “significant increase in product sales, primarily in the personal care and health and nutrition markets, offset by a slight decline in collaboration revenue.” Collaboration revenues contributed $4.7M and product sales added $8.3M for the quarter. Big Q1 miss vs analyst expectations As Jeff Osborne at Cowen & Co noted, “Amyris reported revenue of $13.0mn, well below our estimate of $37.1mn due to much lower collaboration payments than we had anticipated. Management has highlighted that these payments can...

Jim Lane IIn California, American Refining Group has committed to a 33.3% equity investment into Novvi , a joint venture of Amyris (AMRS) and Cosan (CZZ). Both Amyris and Cosan will continue to hold share ownership stakes in Novvi, together with ARG. It’s not a tiny market by any means. The global markets for base oils and lubricants, are expected to reach $42 billion and $70 billion in size, respectively, by 2020, according to Amyris. For ARG: Why Novvi, why now? Think novel performance. It goes in two directions. First, there’s low-carbon performance customers want...

by Debra Fiakas, CFA In recent weeks management from Global Bioenergies (ALGBE: EURONEXT)made the rounds among New York City investors. The French specialty chemical developer is trying to win new friends in the U.S. for its bio-isobutene made through the fermentation of organic materials. Isobutene, also called isobutylene, is a four-molecule hydrocarbon that is a foundational chemical in a wide range of common products from gasoline additives to cosmetics. Until recently, isobutene was made exclusively in the crude oil refinement process. It is one of the many by-products of crude oil refining that helps pad the profit margins of big oil...

It is earnings season and bio-catalyst developer Codexis (CDXS:  Nasdaq) is expected to report fourth quarter and year-end 2017 financial results in the coming weeks.  The three analysts who regularly publish estimates for the company expect a nickel profit in the quarter on $23 million in total sales of the company’s custom protein catalysts.  Codexis is still perfecting its proprietary platform technology called CodeEvolver, but has already delivered an array of unique enzymes that help drive critical biological processes for its customers. Codexis does not have a good track record in terms of meeting the consensus estimate.  The company has only cleared the...