Project Team Mekani - University of California, Berkeleyei.haas.berkeley.edu/education/c2m/docs/Biofuels from Tobacco.pdf · FOLIUM Farms Crude Oil Extraction ... Nicotine . High

Team

Drop-in Biofuel from Tobacco Leaves

Folium

What Is The Problem?

First Generation Biofuel

Compete with Food Crops

“Blend Wall” Limits

Impact on Engines

Regulation & Reality

500

500

0

500

1,000

1,500

2,000

1,000

RFS 2 Mandate

2,000

Million Gallons

Advanced Biofuels Volume

Others

Biomass Based Diesel

Cellulose

500

991

500

0

500

1,000

1,500

2,000

EPA Mandate

1,000

9

RFS 2 Mandate

2,000 2,000

1,000



Million Gallons

Others


Cellulose

500

991

464

500

0

500

1,000

1,500

2,000

1,000

Results

-58%

834 9

RFS 2 Mandate

370

0

EPA Mandate

2,000

1,000

2,000

Others


Cellulose



Million Gallons

The Solution: Tobacco Reimagined

FOLIUM Farms Crude Oil Extraction

Existing Crude Oil Refineries Existing Liquid Fuel Infrastructure

FOLIUM Plants

2nd Generation Biofuel Issues

1. Scalable Ability to exploit existing infrastructures

2. Compatible Ability to be a drop-in fuel

3. Cost vs. Profit Ability to diversify revenue streams

The Team Behind the Technology

Avinash Kevin David Dario Leo

Program Director: Jonathan Burbaum

Folium Advantages

1. Scalable Exploit Existing Infrastructures

2. Compatible Drop-in Fuel

3. Cost vs. Profit Diversify Revenue Streams

Tobacco Plant

Folium Innovation

Products

Problem Solution Folium Response

The Plant

Up to 20% of Leaf Mass is Oil

High Leaf / Stem Ratio

Seed

350,000 Acres of Tobacco in U.S.

Core American Product

Seed Farming

The Plant



Not a Food Crop

Decoupled from Corn Price

Fluctuations

Core American Product

Seed Farming Market

350,000 Acres of Tobacco in U.S.

The Plant



Folium Innovation: The Foundation

1. Produces Alkanes and Terpenes

2. Enhances Photosynthetic Pathways

3. Improves CO2 Uptake

Folium Traditional Tobacco

Folium Innovation: The Impact

Higher Oil Content

More Biomass per Plant

Denser Planting

Drop-in Fuel =

Lower CAPEX and OPEX

10% of US Tobacco Acreage =

14M Gallons: 16% of Total US Drop-in Biofuels

Lower Cost Bigger Scale

Folium Innovation: The Results

Easiness of Implementation

Mar

ket A

ttrac

tiven

ess

High

Low

Hard Easy

1. Market Size 2. Profitability 3. Growth 4. Competitive Landscape

1. Entry Barrier 2. Regulation 3. Technological Synergies 4. Operational Synergies

Products: Market Assessment


Dyes

Antitumor Medication

Mar

ket a

ttrac

tiven

ess

Paper

Feedstock

Concrete

Coenzyme Q10

BioHeat

Bio Gasoline

Vitamin K2

Power Gen

E-Cigarette

Aromatics

Bioplastic

Insulation

Jet Fuel

Bio Diesel

Oil Solanesol Cellulose

Quinone Nicotine

High

Low

Hard Easy



Dyes

Antitumor Medication

Mar

ket a

ttrac

tiven

ess

Paper

Feedstock

Concrete

Coenzyme Q10

BioHeat

Bio Gasoline

Vitamin K2

Power Gen

E-Cigarette

Aromatics

Bioplastic

Insulation

Jet Fuel

Bio Diesel

Oil Solanesol Cellulose

Quinone Nicotine

High

Low

Hard Easy


Solanesol

Oil

Cellulose / Protein

Products: The Winners

$ 3 – 6 / Gallon

$ 500 – 1,000 / Ton

Fuels

Coenzyme Q10

Vitamin K2

Feedstock

Bioplastic

Product Market Price

$ 100 – 1,000 / Kg

M

argi

ns

Bio Diesel

Jet Fuel

Coenzyme Q10

Bio Gasoline

Bioplastic

Feedstock

Vitamin K2

Volume

Cellulose

Oil Solanesol

High

Low

Low High

Products: The Winners’ Applications

M

argi

ns

Vitamin K2

Bio Gasoline

Bioplastic

Feedstock

Coenzyme Q10

Volume

Jet Fuel

Bio Diesel

Cellulose Solanesol Oil High

Low

Low High

Early Stage Markets with 40% CAGR


Jet Fuel

Bio Diesel

Bio Gasoline

Coenzyme Q10

Bioplastic

Feedstock

Vitamin K2

Mar

gins

Volume

Cellulose

Oil Solanesol

High

Low

Low High

Growing market with unclear regulation



Volume

Coenzyme Q10

Vitamin K2

Mar

gins

Feedstock

Bioplastic

Bio Diesel

Bio Gasoline

Jet Fuel

Solanesol Oil

Cellulose

High

Low

Low High Mature Markets with low margin


Growing market with unclear regulation


3.6

2.6

Oil Soybean

5.5

Folium

6%

45%

Harvesting

Planting

Processing

Growing

Costs

9K

38%

12%

10K

Revenues

10%

Revenue & Cost Per Hectare Crude Price Comparison $ / Gallons $ / Hectare

An Attractive Business Case


Folium

5.5

Oil

2.6

3.6

Soybean

45%

67%

Growing

Harvesting

10%

14%

Costs

9K

38%

6%

10K

Planting

12% Processing

18%

Revenues


Solanesol

Cellulose


Folium

5.5

Oil

2.6

3.6

Soybean

45%

67%

Growing

Harvesting

10%

14%

Costs

9K

38%

6%

10K

Planting

12% Processing

18%

Revenues


Solanesol

Cellulose

Tobacco Crude


2.6

5,5

Tobacco Crude

Soybean

3.6

Oil

10K

45%

10%

Processing Harvesting

18%

14% Growing

12%

9K

67%

Costs

Planting

Revenues

38%

6%


Solanesol

Cellulose

Tobacco Crude

Flexible Pathways to Scale

Start Up Grow Maturity

CoQ/ Vitamin K2 Biofuels Bio-plastics Jet Fuel

Market Continues to Grow

Folium Cellulose Meets Industry

Needs

Military Regulation is

Finalized

Regulations and Petroleum Prices

Remain Favorable

Mar

kets

Tr

igge

r

Why Folium Can Succeed

1. Drop-in Fuel Reduction of OPEX and CAPEX



2. American Crop Ease for farmers to adopt and reach scale




3. Decoupled from Food Market Reduction of volatility on prices (and margins)





4. Diverse Set of Products Hedge on oil price fluctuation





4. Diverse Set of Products Hedge on oil price fluctuation

5. Sound Product Roadmap Availability of high margin markets required in the scale-up process

Questions?

FOLIUM: Drop-In Biofuel from Tobacco Leaves

Business Case

2.6

Oil

5.5

Tobacco

4.7

Soybean

Harvesting

38%

12%

Costs

6%

45%

Revenues

10K 10%

Growing

Planting

Processing

9K

Revenue & Cost Per Hectare Crude Price Comparison

Oil

$/gallons $ / Hectare

ETHANOL MARGINS

BIODIESEL MARGINS

FOLIUM

FOLIUM

Source: EIA

What are the genetic modifications in Folium?

1. Produces Alkanes and Terpenes

36

2. Translucent Leaves

3. More Efficient Photosynthesis

The scientists need to take tradeoff on what is the best strategy to maximize the value of their technology

37

Focus only on oil Oil and other products based on Quantity

Oil and other products based on Quality Greenhouse

Crude Crude

Cellulose / Lignin

Solanesol

Crude

Cellulose / Lignin

Nicotine

Proteins

Cellulose /Lignin

5 markets 14 markets 14+ markets 20+ markets

Viable Strategies

Quinone

38

A long list of applications has been identified and assessed with a structured process to select a short list of promising ones…

Attractiveness Assessment

External Drivers

Market value Market growth Price/ volumes range Competitive pressure Regulatory

landscaoe

Internal Drivers

Technology fit Operation fit

- Stage 1-

Mirror module for x-ray telescope for far stars and other un-explored universe objects analysisX-Ray telescope

Space & Terrestrial

Panels for terrestrial telescope operating at microwave wavelengthAntenna - MWPanels for terrestrial telescope operating at visible wavelengthAntenna - VisibleMirrors module for planetary observation systemsOther planet observationMirrors module for earth observation systemsOther earth observationMirrors for optical guidance systems for robots and remote control devices in space environmentGuidance system for exploration Mirrors for communication systems between satellites (e.g. Free space optics - FSO)Communication

Focused scouting of potential technology trends/ new applications for advanced mirrors in DUV lithographyNon EUV lithography applications

Mirrors for medical devicesMedical devices

Other Optical Devices

Mirror modules for metrology instrumentsReflective optical instruments-visibleReflective optical resonator for synchrotron plantsSynchrotronMirror modules for metrology instrumentsReflective optical instr. - UV to X rayReflective Optical Resonator for Free Electron LaserFree Electron LaserReflective Optical Resonator for Lasers Laser systemsComplex metallic mechanical components with e-forming technology (e.g. combustion chamber nozzle,… ) Non optical metallic componentsOthers non Optical

Reflective optical mirrors for concentrated solar power plants collectorsSolar thermal plants concentrators Solar Optical mirrors for photovoltaic collectorsConcentrators for solar photovoltaic

Panels for photovoltaic or solar thermal plantsPhotovoltaic and solar therm. panels

Mirrors for optical guidance systems for missiles, robots and other remote control devicesGuidance SystemMirrors for multi-spectral surveillance systems (e.g. bomb detection, people reconnaissance, man portable devices,…)Surveillance & targeting (Ground)Mirrors for multi-spectral surveillance systems or Targeting systems for helicopter and airplanesSurveillance & targeting (Airborne)

Defense

Normal Incidence Collectors for EUV lithography (LPP)Collectors (NIC)Mirror modules for laser/thermal annealing in thermal processingThermal processingIlluminator pack module for EUV lithographyIlluminatorsModule to definitely direct the laser on the waferParticle Beam Optics (PBO)Wafer inspection mirror modules to monitor and verify specifics Wafer Inspection

Mirrors for communication systems for military solutions (e.g. Free space optics - FSO)Communication

Grazing Incidence Collectors for EUV lithography (DPP)

Short Description

Collectors (GIC)

Application

Semiconductors


Space & Terrestrial



Mirrors for medical devicesMedical devices

Other Optical Devices

Mirror modules for metrology instrumentsReflective optical instruments-visibleReflective optical resonator for synchrotron plantsSynchrotronMirror modules for metrology instrumentsReflective optical instr. - UV to X rayReflective Optical Resonator for Free Electron LaserFree Electron LaserReflective Optical Resonator for Lasers Laser systemsComplex metallic mechanical components with e-forming technology (e.g. combustion chamber nozzle,… ) Non optical metallic componentsOthers non Optical

Reflective optical mirrors for concentrated solar power plants collectorsSolar thermal plants concentrators Solar Optical mirrors for photovoltaic collectorsConcentrators for solar photovoltaic

Panels for photovoltaic or solar thermal plantsPhotovoltaic and solar therm. panels

Mirrors for optical guidance systems for missiles, robots and other remote control devicesGuidance SystemMirrors for multi-spectral surveillance systems (e.g. bomb detection, people reconnaissance, man portable devices,…)Surveillance & targeting (Ground)Mirrors for multi-spectral surveillance systems or Targeting systems for helicopter and airplanesSurveillance & targeting (Airborne)

Defense


Mirrors for communication systems for military solutions (e.g. Free space optics - FSO)Communication


Short Description

Collectors (GIC)

Application

Semiconductors


Space & Terrestrial





Short Description

Collectors (GIC)

Application

Semiconductors


Space & Terrestrial





Short Description

Collectors (GIC)

Application

Semiconductors

Long List of Xxx applications

IN

Additional opportunities identified in the course of interviews and market scouting

OUT

Clear technology limitation Clearly no

concrete market opportunity

Main Sources

Possibility of using Technology capabilities in different sectors Internal interviews and available

information External interviews Team analysis

Short list for detailed analysis

Final Long List

Low High

Internal MLT Factors

Medium

Low

High

Exte

rnal

Mar

ket F

acto

rs

Med

ium

1 2

3

5 9

8

16

17

20

4

6 …

…

- Stage 2-

Short list of xxx prioritized

applications

List of more relevant new applications to be analyzed in details in terms of strategic opportunities

ILLUSTRATIVE

- Stage 3-

Short List of Opportunities

Project Team Mekani - University of California, Berkeleyei.haas.berkeley.edu/education/c2m/docs/Biofuels from Tobacco.pdf · FOLIUM Farms Crude Oil Extraction ... Nicotine . High

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