Multiple Markets for Renmatix Sugars
There is a strong drive to dramatically reduce the use of fossil fuels, which has been the primary factor in the growth of the biochemical and biofuel markets. Renmatix believes this shift is not cyclical. The cicular strains on the supply of oil are well documented. Geopolitical uncertainty in the supply of oil argues for a policy providing more energy security. The need to address warming adds to the desirability of renewable sources. Pressure on global food supplies make it unlikely that food sources can ever be usable for large scale chemical or fuel production.
These factors will drive increasing demand for renewable and sustainable, domestically produced bio-based materials from non-food sources that can be used to produce and commercialize biochemicals and biofuels.
Chemicals
Numerous companies are working to respond to the call for new solutions that will shape the global biochemical markets. All of them require affordable sugars as a starting point for the replacement of traditional petrochemicals with plant based feedstocks. Right now Brazilian sugar is the closest thing we have to an answer, but even Brazil doesn’t have adequate supply to serve growing international demand. Renmatix is working to provide the same kind of affordable economics everywhere. Renmatix is actively investing in the science that can deliver its Plantro™ Chemicals to market.
We believe the market is best served by providing the bio-building blocks needed to create the chemicals demanded by the market; chemicals such as polyethylene, surfactants, polypropylene, and ethylene glycol. In anticipation of this progressive shift, the investment community has taken notice and cash is flowing. Government support also fuels these new industries, helping these new industries to create new jobs and to accelerate growth opportunities. By helping companies transition away from their dependence on fossil fuels, Renmatix will help the world transition to truly renewable materials and paves the road for long healthy relationships with established chemical manufacturers and new clean-tech players alike.
Biotechnology Penetration in the Chemical Industry
| Year | Value | Penetration |
|---|---|---|
| 2000 (actual) | $67 billion | 5.3% |
| 2005 (actual) | $98 billion | 6.7% |
| 2010 (forecast) | $159 billion | 9.6% |
| 2025 (projection) | $1000 billion | 33% |
| Source: McKinsey and Company, 2006; MBI | ||
World Biobased Market Penetration 2010-2025
| Chemical Sector | 2010 | 2025 |
|---|---|---|
| Commodity Chemicals | 1-2% | 6-10% |
| Specialty Chemicals | 20-25% | 45-50% |
| Fine Chemicals | 20-25% | 45-50% |
| Polymers | 5-10% | 10-20% |
| Source: USDA, U.S. Biobased Products Market Potential and Projections Through 2025 | ||
Fuels
The EPA originally proposed a mandate for 22 billion gallons of cellulosic biofuels, in the United States alone, by 2022. Today the market suffers from severe capacity constraints. Under existing technologies, even with rebates and incentives, the economics just don’t work. As a result, the more immediate mandates were unrealistic and have been reduced accordingly. This emphasizes the pronounced need for cellulosic sugars that can be fermented into advanced biofuels at an affordable price. Renmatix has overcome the major obstacle to the most desirable path forward by demonstrating conversion, at competitive cost, of hardwood cellulosic feedstock into the Plantro™ sugars that lead to ethanol, butanol, and other biofuels.
Renmatix’s breakthrough achievements could not come at a better time. To satisfy the 2022 RFS mandates for cellulosic biofuels in America – industry will require 140 million tons of cellulosic sugars. And Renmatix will not stop with hardwood – to satisfy the large future demand we offer a solution that will scale to use other locally available biomass feedstocks, such as corn cobs and stover or switchgrass. Renmatix is working today to address future demand for biochemicals and biofuels by leveraging our adaptable technology to support the incorporation of additional non-food biomass feedstocks.
Source: Energy Independence and Security Act of 2007