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Addressing the Clean Energy Challenge
Presented to Calit214 May 2009
green chemistry by design
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Revolutionizing Industrial Biotech
• Addressing consumer demandfor renewable energy and green alternatives
• Developing profitable biobasedprocesses for converting biomass into fuels & chemicals
• Providing sustainable solutionsfor our future energy and material needs
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Transformation to a Product Focused Business
2005 2007 2008
CODA Genomics (UCI spin-off)
Generated $3MM in revenue
Sharpened focus to industrial biotech
Developed codon optimization tools & supplied genes to pharma and industrial biotech
Technology validated by +100 customers
Expanded metabolic engineering capability
New management team with experience in target market
Leverage unique technical advantage
CODA Genomics’ Founders: Prof. Wesley Hatfield & Prof. Rick Lathrop
Verdezyne Employees (former CBRL researchers)
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The Prize: Fermentation Market
6% of the world’s current chemicals are bio-based – Chemical Week
20% of the chemical market could be biobased – DuPont, Dow Chemical
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Industry Cries for Raw Material Diversity
• DOE predicts: $50 –200/bbl
• Need to change our dependency– Rolling cyclicality has
been disrupted– Petroleum is highly
volatile– Prices >> last century
• Change = Opportunity
Oil Spot (FOB $/bbl)
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Ingredient #1: Provide a cost effective alternative to petroleum (i.e. sugar)
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Green Chemistry Sequesters Carbon Dioxide
• CO2 captured from the atmosphere is sequestered into durable and useful products.– Vs. incinerated for fuel
• Dow Polyethylene Example– Each ton produced from
sugarcane removes 2.1 tons of carbon dioxide from the atmosphere
– in contrast the traditional method puts 1.8 tons of carbon dioxide into the atmosphere.
Ingredient #2: Green chemistry provides net environmental benefit
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Green Business Creates Bucks
• 80% of consumers are concerned about environmental impact (Procter & Gamble 18 Mar 09)
• 26% of consumers are actively seeking (TNS Study)
• 54% of shoppers consider environmental sustainability in their buying decisions (Grocery Manufacturers Association)
• Price is the biggest barrier
Ingredient #3: Provide a cost advantage and drive adoption rate
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Creating the Renewable Value ChainPetroleum Refining Cracking Processing Products
Agriculture Milling Fermentation
1. Improving the productivity of existing fermentation
2. Enabling cost-advantaged petrochemical replacements
3. Developing novel chemicals previously unattainable
Metabolic Engineering of Fermentation Organisms
Creating Profitability
• Proprietary Fermentation Platform
• Tools that make us faster & more efficient than our competition
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Accelerating Development of Fermentation Processes
• Synthetic gene libraries introduce enzymatic diversity into any metabolic pathway
• Combinatorial assembly enables simultaneous amplification of unlimited number of pathway gene variants
• Biological selection identifies the most productive combination of pathway genes
Combinatorial PathwayEngineering Robust
Production Host
Fermentation Processes
Protein Design Algorithms
Synthetic Gene Libraries
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Building Great Partnerships
Align Incentives• Unique targets minimize
competitive alternatives• Provide lead user with market
advantage• Commercialization thresholds to
avoid decision delays• Shared Risk α Shared Return
Be Informed yet Flexible• Partnering early entrenches partner
support– Decision cycles are fast tracked
• Partnering later maximizes value capture
– Negotiate from a position of strength
