AYES2010 - Per Dahlen

Scaling-up Synthetic Biology in

Southeast Asia

ISSB presentation

Zürich • Bombay • Singapore

ISSB presentation

Per Dahlen, Partner

Portelet Asia Pte. Ltd.

up Synthetic Biology in

Southeast Asia

ISSB presentation


ISSB presentation

Per Dahlen, Partner

Portelet Asia Pte. Ltd.

Copyright and disclaimer

Portelet Asia Pte. Ltd. is happy to let those who want to, use and redistribute the information in this presentation as long as you add Portelet Asia Pte. Ltd. (www.portelet.com) as the source of your information. Thank you.

The information in this document is for informative purposes only, Portelet Asia Pte. Ltd. should not be held responsible for the accuracy of the data presented in this document

The purpose of this document is to share our view about the future of Biofuels in Southeast Asia and to serve as a The purpose of this document is to share our view about the future of Biofuels in Southeast Asia and to serve as a platform for discussions with potential clients, partners and other parties interested in this business opportunity

The information described in this document may be protected by one or more U.S. patents, foreign patents, or pending applications.

Portelet is a registered trademark of Portelet Holdings Pte. Ltd. Product and brand names used in the document may be trademarks or registered trademarks of their respective owners. Any such trademarks or registered trademarks are the sole property of their respective owners.

The information in this document is provided “as is” without warranty of any kind, either express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or noninfringement.


infringement.

This document could include technical inaccuracies or typographical errors.

All strategic and product statements in this document are subject to change at Portelet Asia Pte. discretion, including the right to alter or cancel features, functionality, or release dates.

Changes to this document may be made at any time without notice.

© 2010 Portelet Asia Pte. Ltd.

Portelet Asia Pte. Ltd. is happy to let those who want to, use and redistribute the information in this presentation as long as you add Portelet Asia Pte. Ltd. (www.portelet.com) as the source of your information. Thank you.

The information in this document is for informative purposes only, Portelet Asia Pte. Ltd. should not be held responsible for the accuracy of the data presented in this document

The purpose of this document is to share our view about the future of Biofuels in Southeast Asia and to serve as a The purpose of this document is to share our view about the future of Biofuels in Southeast Asia and to serve as a platform for discussions with potential clients, partners and other parties interested in this business opportunity

The information described in this document may be protected by one or more U.S. patents, foreign patents, or

Portelet is a registered trademark of Portelet Holdings Pte. Ltd. Product and brand names used in the document may be trademarks or registered trademarks of their respective owners. Any such trademarks or registered trademarks are the sole property of their respective owners.

The information in this document is provided “as is” without warranty of any kind, either express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-


This document could include technical inaccuracies or typographical errors.

All strategic and product statements in this document are subject to change at Portelet Asia Pte. Ltd.’s sole discretion, including the right to alter or cancel features, functionality, or release dates.

Changes to this document may be made at any time without notice.

a unique Capital Services & Investment Boutique

• Corporate Finance, Wealth Management and Fund Management

• Established 1998, Cleantech investments since 2006

Portelet

• Established 1998, Cleantech investments since 2006

• Invests in Feedstock, Conversion and Supporting technologies

• Internationalization and Growth Acceleration of Technologies

• Mostly focused on Southeast Asia and India

• Team, Business Model, Sustainability, Scalability and Exit

Zürich • Bombay • SingaporeZürich • Bombay • Singapore

Boutique

Corporate Finance, Wealth Management and Fund Management

Established 1998, Cleantech investments since 2006Established 1998, Cleantech investments since 2006

Invests in Feedstock, Conversion and Supporting technologies

Internationalization and Growth Acceleration of Technologies

Mostly focused on Southeast Asia and India

Team, Business Model, Sustainability, Scalability and Exit


Industrial Biotechnology

The Industrial Biotechnology Framework

“MAGIC”FeedstockB

ug

s


Pro

cess

The Industrial Biotechnology Framework

85 mbpd

Chemical

Fuel

Target


Strong EU fuel imports very likely given the economicsEU and US biotech companies must seek deployment and growth in low cost regions

Second generation ethanol production comparing production in Europe to Southeast

Asia (USD/ton ethanol in Rotterdam)

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00 Source: SEKAB, Accenture, McKinsey, MPOB, Novozymes, Poyry, compiled by Portelet


$-

$100.00

$200.00

$300.00

EU SEA

Strong EU fuel imports very likely given the economicsEU and US biotech companies must seek deployment and growth in low cost regions

� For 2nd generation ethanol, with

an average feedstock price of EUR

105 per ton (USD 136/t), this

Second generation ethanol production comparing production in Europe to Southeast

Profit before tax

Shipment to EU

CapEx

OpEx

Enzymes

105 per ton (USD 136/t), this

translates into a total feedstock

cost of EUR 362 per ton ethanol,

60% of today's sales price of EUR

600 per ton ethanol.

� Given high investments in

processing plants and higher

operating costs required for 2nd

generation ethanol production

(enzymes), any large-scale

deployment may not be feasible

without significant subsidies.

� The UK is proposing a EUR 0.30

, compiled by Portelet


Enzymes

Feedstock

� The UK is proposing a EUR 0.30

per litre subsidy which would

make the business an interesting

investment opportunity, but only

with subsidies.

� Deploying the 2nd generation

biofuel technology in a developing

country alters the economics

fundamentally

Evolution of Plantations in Southeast Asia

Continuous evolution in search of higher returns per Hectare

Revenue per Ha

Rubber


Gambir

1830

Evolution of Plantations in Southeast Asia

Continuous evolution in search of higher returns per Hectare

Palm Oil

Energy Crop?


2010

Looking 10 years into the future…

Revenues per Ha of plantation - USD

300,000,000 Source: MPBO, ViaSpace compiled by Portelet

Average Palm Mill in MY:

100,000,000

150,000,000

200,000,000

250,000,000

2015?

Average Palm Mill in MY:

410 Operational Mills

225,608 ton FFB/year

20.21% CPO yield

11,180 Ha of plantation

20.18 ton FFB per Ha


-

50,000,000

CPO today CPO + Fronds & Trunks

2010

Looking 10 years into the future…

2020?

Biofuel

CPO2015?

2020?


CPO + Fronds & Trunks Energy Crop

140

160 Source: : EIA, December 2009 historic prices and short-term forecast

The price of Crude Oil for the past 5 yearsCrossed USD 50.00/bbl barrier 5 years ago – the average price of oil has been USD 70.00/bbl

20

40

60

80

100

120


0

Jun

24

, 2

00

5

Sep

24

, 2

00

5

De

c 2

4,

20

05

Ma

r 2

4,

20

06

Jun

24

, 2

00

6

Sep

24

, 2

00

6

De

c 2

4,

20

06

Ma

r 2

4,

20

07

Jun

24

, 2

00

7

term forecast

The price of Crude Oil for the past 5 yearsthe average price of oil has been USD 70.00/bbl


Sep

24

, 2

00

7

De

c 2

4,

20

07

Ma

r 2

4,

20

08

Jun

24

, 2

00

8

Sep

24

, 2

00

8

De

c 2

4,

20

08

Ma

r 2

4,

20

09

Jun

24

, 2

00

9

Sep

24

, 2

00

9

De

c 2

4,

20

09

Radical advancements in Biotechnology

“Create and test 10,000 of engineered yeast strains each week...!”

Improvements in DNA sequestering are driving down the costs of whole

genomes creating a new “Moore’s Law” – Base pairs sequenced per dollar

10

100

1000

10000

100000

1000000

10000000 Source: George Church, Harvard University

Note: Dollar figures refer to reagent costs

1995

Gel electrophoresis:

USD 3.0 bn

2005

Capillary

electrophoresis: USD

50 M

2009

Ligation: USD 1k-5k

Polymerization: USD 50k

2011: USD 100


0.01

0.1

1

10USD 3.0 bn

Radical advancements in Biotechnology

“Create and test 10,000 of engineered yeast strains each week...!”

� In the fast-moving field of synthetic

biology—a discipline that looks to

Improvements in DNA sequestering are driving down the costs of whole

Base pairs sequenced per dollarbiology—a discipline that looks to

rewrite the DNA of microorganisms as if

it were computer code—the California

laboratories of Amyris are considered

state of the art

� Researchers create and test tens of

thousands of engineered yeast strains

each week

� The company employs nearly as many

PhD yeast geneticists as all the

universities in Brazil

MIT Technology Review – April, 2010

2009

5k

Polymerization: USD 50k

2011: USD 100


Image source: Wikicommons, Peel, M. C. and Finlayson, B. L. and McMahon, T. A. (2007).

Strategic advantage being in the Tropics

…but also logistical advantages compared to other tropical regions


Peel, M. C. and Finlayson, B. L. and McMahon, T. A. (2007).

Strategic advantage being in the Tropics

…but also logistical advantages compared to other tropical regions


Potential: Casson (2007) cites numbers on degraded land from the Indonesian Ministry

of Forestry, which has classified over 23 million ha as degraded land.

(1997) estimated the total area of total area of ImperataImperata

million ha in Indonesia). This compares to roughly 10 million ha of globally harvested

oil palm plantations today.

WWF, Ecofys – September 2010


(2007) cites numbers on degraded land from the Indonesian Ministry

of Forestry, which has classified over 23 million ha as degraded land. Garrity et al.

ImperataImperata Grassland in Asia at 35 million ha Grassland in Asia at 35 million ha (8.5

million ha in Indonesia). This compares to roughly 10 million ha of globally harvested



Giant King Grass – VIASPACE Inc.

6 month to harvest – 100-135 ton Biomass per Hectare per Year


Information provided courtesy of: ViaSpace Inc. – USA (www.viaspace.com)

April-2009

VIASPACE Inc.

135 ton Biomass per Hectare per Year

August-2009


November-2009

USA (www.viaspace.com)

http://www.claas.co.uk/countries/generator/cl-pw/en/products/forage_harvester/jaguar_980

930/video_animation/video/start,lang=en_UK.html


pw/en/products/forage_harvester/jaguar_980-


One processing plant + 625Ha plantation = USD 15MOne processing plant + 625Ha plantation = USD 15M

Total investment USD 15MTotal investment USD 15M

ReRe--investing during 8 yearsinvesting during 8 years

USD 2,000,000,000 annual revenuesUSD 2,000,000,000 annual revenues



Total investment USD 15MTotal investment USD 15M

investing during 8 yearsinvesting during 8 years




Current plans for Project Financing

Expected USD +100bn available by 2015 in Southeast Asia

Southeast AsiaUSA/EU

REF-1

USD 500MREF-1

USD 500MREF-1

USD 500MREF-1

USD 500MREF-1

USD 500MREF-1

USD 500MREF-1

USD 500MREF-1

USD 500MREF-1

USD 500M

ADB/P8

USD 2bn2007-2010

US/EU VC-funds

USD 2.3 bn

IB-tech 1

USD 100M

IB-tech 2

USD 80M


SPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100M

IB-tech 3

USD 120M

IB-tech n

USD XXM

Current plans for Project Financing

Expected USD +100bn available by 2015 in Southeast Asia

2012 – USD 10bn (x5)

Renewable Energy

Private Equity Funds

2011 – USD 2bn

Fund-of-Funds

ADB + P8

PT Green Investments

USD 1bn


USD 100MUSD 100MUSD 100M1

USD 100M

SPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100MSPV-1

USD 100M

2013 – USD 60bn (x6)

Project financing +

Debt financing (60-70%)

2014 – USD +100bn (?)

Oil, Chemical, Agri

Tremendous potential, but need to act now…

• Oil-price will remain above USD 70/bbl

• Biotechnology will change our lives

Conclusions

• Biotechnology will change our lives

• Energy crops are here today – 100tpy/Ha is possible

• The money will be there, it is all about the plan

• 2nd generation Biofuels starts through Palm biomass (Ag Waste)

• Technology is looking for opportunities, abundant opportunities

• Implementation likely to be faster then we think….


• Southeast Asia is the ideal region for 2

moving now…

Tremendous potential, but need to act now…

price will remain above USD 70/bbl

100tpy/Ha is possible

The money will be there, it is all about the plan

generation Biofuels starts through Palm biomass (Ag Waste)

Technology is looking for opportunities, abundant opportunities

Implementation likely to be faster then we think….


Southeast Asia is the ideal region for 2nd generation biofuels, let’s get

Thank [email protected]


Thank [email protected]


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