- Email: [email protected]
Johnson Matthey: interim management statement
F O C U S Dow and DOE to invest in biomass-toethanol process Dow Chemical has signed a deal with the US Department of Energy’s (DOE) National Renewable Energy Laboratory for the joint development and study of the commercial feasibility of a biomass-to-ethanol process. The process will use a gasification technique to transform non-food biobased materials, including corn leaves or wood waste, into synthesis gas, which will be converted into a mixture of alcohols, such as ethanol, using a mixed alcohols catalyst from Dow. The partnership will work mainly on enhancing the catalyst and assessing the pilot-scale performance and commercial feasibility of an integrated facility. DOE has invested in a number of projects in 2007 in an effort to make the cost of cellulosic ethanol comparable to corn-derived ethanol by 2012. Meanwhile, Shell has raised its interest in Canadian biofuels technology company Iogen Energy from 26.5% to 50% to speed up their cellulosic ethanol work. Chemical Week, 21 Jul 2008 (Website: http://www.chemweek.com)
DSM heavily into enzymes On 11 Jul 2008, DSM announced the acquisition of the business and substantially all of the assets of Valley Research Inc of South Bend, Indiana. Through this acquisition, DSM further reinforces its leading global position in food enzymes. The acquisition has been finalized. Terms of the acquisition will not be disclosed now, as agreed between the parties. Valley Research Inc, a privately held biotechnology company founded in 1984, offers a broad range of enzymes, supported by technical laboratories and excellent production facilities. Its products are used in dietary supplements, dairy, juices, and wines. DSM Valley Research Inc will become part of DSM Food Specialties. The market for bioingredients, including food enzymes, has shown continuous volume growth in recent years, driven by a growing demand for healthy nutrition such as low-salt and low-fat foods, food safety, convenience, and the need for natural ingredients. The acquisition of Valley Research enables DSM Food Specialties to strengthen its product
SEPTEMBER 2008
O N
C ATA LY S T S
portfolio, while at the same time the company can now offer regional blending and solutions providing platforms to customers. Meuse-Rhine Journal, 15 Jul 2008, (186) (Wadsworth & Wadsworth Assoc, PO Box 42, NL-6245 ZG, Eijsden, The Netherlands. Tel: +31 43 4093719. Fax: +31 43 4098899. Website: http://www.meuse-rhinejournal.com)
DuPont and Genencor to make cellulosic ethanol DuPont and Genencor, a division of Danisco A/S, intend to spend $140 M for a jv that will produce ethanol from corn stover and sugarcane-based bagasse. The two firms will utilize Genencor’s enzyme technologies as well as the pre-treatment process and fermenting organism developed in collaboration with the National Renewable Energy Laboratory in the jv. A demonstration facility is expected to come online by 2009, and a commercial-scale plant by 2012. Chemical Engineering (New York), Jun 2008, 115 (6), 15
Genzyme reports strong 2Q 2008 growth Genzyme Corp reported strong sales and profit growth in 2Q ended Jun 2008, along with significant progress in its commercial and clinical programmes. Revenue increased 25% to approximately $1.171 bn for 2Q 2008 ($933.4 M in 2Q 2007). The increase was driven by growth across all areas of the business. GAAP net income was $69.6 M or $0.25/diluted share for 2Q 2008 (net income of $83.8 M or $0.31/diluted share in 2Q 2007). GAAP earnings in 2008 are expected to be approximately $2.2/diluted share Genzyme is one of the world’s leading biotechnology companies. The consolidated statements of operations (unaudited) for three and six months ended Jun 2007 and 2008; pre-tax charges for stock-based compensation expense and related tax benefits; condensed consolidated balance sheets data (unaudited) as on 31 Dec 2007 and 30 Jun 2008; and reconciliation of GAAP to non-GAAP earnings are in four tables. Genzyme Corp 2Q and 1H 2008 results, 23 Jul 2008 (Genzyme Corp, One Kendall Square, Cambridge, MA 02139, USA. Tel: +1 617 252 7500. Fax: +1 617 252 7600. Website: http://www.genzyme.com)
Grace reports 2Q 2008 financial results: Grace Davison For its 2Q 2008 (period ends 30 Jun 2008), the Grace Davison’s division of WR Grace & Co has reported net sales of $584.8 M ($524.2 M for its 2Q 2007), of which: refining technologies accounted for $285.8 M ($256.2 M), materials technologies $194.6 M ($170.1 M), and speciality technologies $104.4 M ($97.9 M); and pre-tax operating income of $68.5 M ($73.1 M). For its 1H 2008, this division has reported net sales of $1081.9 M ($991.8 M for its 2Q 2007), of which: refining technologies accounted for $522.7 M ($476.1 M), materials technologies $364.9 M ($329.7 M), and speciality technologies $194.3 M ($186.0 M); and pre-tax operating income of $130.8 M ($127.5 M). There is discussion of the business and of the results of this division. Grace Davison’s activities include speciality catalysts and materials used in a wide range of industrial applications. WR Grace Interim Report 2Q 2008, 23 Jul 2008 (WR Grace & Co, 7500 Grace Drive, Columbia, MD 21044, USA. Website: http://www.grace.com)
Johnson Matthey: interim management statement On 22 Jul 2008, Johnson Matthey Plc issued an interim management statement. Commenting on current trading at the Annual General Meeting to be held on that day, Johnson Matthey has made a strong start to the new financial year. In 1Q 2008 (period ends 30 Jun 2008), revenues grew by 33%, sales excluding the value of precious metals increased by 12%, and profit before tax and amortisation of acquired intangibles was 22% higher than in the same period of 2007. Environmental Technologies Division’s sales and profits were well ahead of 2007. Autocatalyst sales continue to grow strongly in Asia, where the group is gaining share, although sales have fallen in North America reflecting a drop in the overall demand for cars and trucks. Argillon, which was acquired in Feb 2008, has made an encouraging initial contribution as demand for catalysts for the reduction of oxides of nitrogen (NOx) has grown across a range of markets. Process Technologies’ operating profit was well ahead with the very high price of
3
F O C US oil increasing demand for catalysts for hydrogen and methanol. Fine Chemicals & Catalysts Division has made a good start to the new year with growing volumes of catalyst products and increased sales of fine chemicals. Borrowings and interest were higher than in the first quarter of 2007/08 mainly as a result of the acquisition of Argillon. 2Q 2008 has begun well and the group has a strong order book. The company is benefiting from increasing global demand for products which reduce pollution and protect the environment. Despite increasingly difficult macroeconomic conditions JM expects profit before tax for the half year to 30 Sep 2008 to be well ahead of the same period last year. Press release from: Johnson Matthey Plc, 2-4 Cockspur Street, Trafalgar Square, London, SW1Y 5BQ, UK. Tel: +44 20 7269 8400. Fax: +44 20 7269 8433. Website: http://www.matthey.com (22 Jul 2008)
Novozymes 1Q 2008: continuing high growth in enzymes for bioethanol For its 1Q 2008 (period ends 31 Mar 2008), the Technical Enzymes segment of Novozymes A/S has reported sales of DKR 563 M (DKR 542 M for its 1Q 2007). Sales of technical enzymes rose by 15% in local currencies and 4% in DKR in 1Q 2008. The development in DKR was affected negatively by the dollar. Growth was primarily driven by sales of enzymes for bioethanol production, which rose more than the development in the US bioethanol market. Sales to the textile industry fell by approximately 13% in the quarter. This decline can be attributed to an unexpected strong and prolonged fashion for dark denim. Progress was made in the quarter outside the denim segment. Firstquarter developments in the textile industry imply that the overall outlook for growth in technical enzymes in 2008 is changed to 22-27% from 2530% in local currencies. Novozymes Interim Report 1Q 2008, 24 Apr 2008, 3,15 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark. Tel: +45 8824 9999. Fax: +45 8824 9998. Website: http://www.novozymes.com)
Novozymes: Beyond enzymes, the birth of a new bio-based industry One of the new areas within Novozymes’ BioBusiness is the
4
O N
C ATA LY S T S
conversion of renewable resources into chemicals. Novozymes will not produce the chemicals but will use its biotechnology expertise to help other companies produce chemicals. In Jan 2008, Cargill and Novozymes announced a joint agreement to develop technology enabling the production of acrylic acid via 3hydroxypropionic acid (3-HPA) from renewable raw materials. The partners will develop a fermentation process to convert glucose or other carbohydrate source into 3-HPA. At present, most acrylic acid is made by oxidising propylene. In 2005, almost half of the 3.1 M tonnes of crude acrylic acid was used to make glacial acrylic acid for superabsorbants. The major use of superabsorbants is in nappies (more than 1 M tonne/y). The remainder is used for acrylates for acrylic fibres, coatings, paints and inks. BioTimes (Novozymes’ Enzyme e-zine), Jun 2008, (2), 11 (Novozymes A/S, Krogshoejvej 36, 2880 Bagsvaerd, Denmark. Tel: +45 8824 9999. Fax: +45 8824 9998. Website: http://www.novozymes.com/biotimes)
hydrolysis. The biggest hurdle in this area is obtaining cheap enzymes but there is also a problem with finding pentose-fermenting organisms. The raw materials will be Swedish forestry waste and bagasse, a waste product from sugar cane ethanol production. Sekab is planning to develop and sell technology for the production of ethanol from bagasse. The company’s plans for large scale plants for producing ethanol from forestry raw materials in Norrland, Sweden, have been moved further into the future. Instead of there being 3 commercial scale plants in place by 2009, there should be one 6000 tonne/y demonstration plant online by 2011. Sekab estimates it will take 5-8 yr to develop a commercial technology for second generation cellulose ethanol. In the meantime the company is investing billions of SKR in the production of traditional sugar cane ethanol in Africa. Kemivarlden Biotech med Kemisk Tidskrift, Jun 2008, (6), 10 (in Swedish)
Qatar: GTL catalyst production in Qatar Perstorp launches biotech project Swedish speciality chemicals firm Perstorp has begun two five-year projects to research renewable alternatives for fossil fuel raw materials. Together with Lund University and other partners in the industry, the firm will utilize almost $6 M from the Swedish government research fund to study the manufacture of natural raw materialsbased 3-hydroxypropionic acid and propionic acid. The research partners will also develop production methods for immobilized biocatalysts. Chemical and Engineering News, 30 Jun 2008, 86 (26), 19-20 (Website: http://www.cen-online.org)
Sekab switches to enzymes for production of cellulose ethanol. The Swedish energy authority Energiemyndigheten has made available SKR 33.8 M to the biofuels firm Sekab over a period of 2 years for the second part of its research project to develop technology for the production of cellulose ethanol. For the first 2 years the company focused on weak acid hydrolysis but now there will be a change of direction and much greater emphasis on enzymic
The first catalyst manufacturing plant in Qatar has been commissioned by Süd-Chemie. The catalysts, which will be marketed in the Arabian Gulf states, will be utilized in the conversion of natural gas into diesel via the gas-to-liquids (GTL) technologies, and other technologies for natural-gas derived higher grade chemicals. So far, a low double-digit million euro figure has been spent by Süd-Chemie in the plant. The company has 20 workers in Qatar. Nitrogen + Syngas, Jul/Aug 2008, (294), 10
Verenium awarded US Department of Energy grant to fund Jennings, LA, demonstration-scale plant. Verenium Corp has been awarded a grant from the US Department of Energy (DOE) under a $40 M programme to support the development of small-scale cellulosic ethanol biorefinery plants. The company will now begin discussions with the DOE to determine the amount of the award. Demonstrationscale facilities are a critical development step to scaling and validating cellulosic technology as the industry advances toward the
SEPTEMBER 2008
DSM heavily into enzymes On 11 Jul 2008, DSM announced the acquisition of the business and substantially all of the assets of Valley Research Inc of South Bend, Indiana. Through this acquisition, DSM further reinforces its leading global position in food enzymes. The acquisition has been finalized. Terms of the acquisition will not be disclosed now, as agreed between the parties. Valley Research Inc, a privately held biotechnology company founded in 1984, offers a broad range of enzymes, supported by technical laboratories and excellent production facilities. Its products are used in dietary supplements, dairy, juices, and wines. DSM Valley Research Inc will become part of DSM Food Specialties. The market for bioingredients, including food enzymes, has shown continuous volume growth in recent years, driven by a growing demand for healthy nutrition such as low-salt and low-fat foods, food safety, convenience, and the need for natural ingredients. The acquisition of Valley Research enables DSM Food Specialties to strengthen its product
SEPTEMBER 2008
O N
C ATA LY S T S
portfolio, while at the same time the company can now offer regional blending and solutions providing platforms to customers. Meuse-Rhine Journal, 15 Jul 2008, (186) (Wadsworth & Wadsworth Assoc, PO Box 42, NL-6245 ZG, Eijsden, The Netherlands. Tel: +31 43 4093719. Fax: +31 43 4098899. Website: http://www.meuse-rhinejournal.com)
DuPont and Genencor to make cellulosic ethanol DuPont and Genencor, a division of Danisco A/S, intend to spend $140 M for a jv that will produce ethanol from corn stover and sugarcane-based bagasse. The two firms will utilize Genencor’s enzyme technologies as well as the pre-treatment process and fermenting organism developed in collaboration with the National Renewable Energy Laboratory in the jv. A demonstration facility is expected to come online by 2009, and a commercial-scale plant by 2012. Chemical Engineering (New York), Jun 2008, 115 (6), 15
Genzyme reports strong 2Q 2008 growth Genzyme Corp reported strong sales and profit growth in 2Q ended Jun 2008, along with significant progress in its commercial and clinical programmes. Revenue increased 25% to approximately $1.171 bn for 2Q 2008 ($933.4 M in 2Q 2007). The increase was driven by growth across all areas of the business. GAAP net income was $69.6 M or $0.25/diluted share for 2Q 2008 (net income of $83.8 M or $0.31/diluted share in 2Q 2007). GAAP earnings in 2008 are expected to be approximately $2.2/diluted share Genzyme is one of the world’s leading biotechnology companies. The consolidated statements of operations (unaudited) for three and six months ended Jun 2007 and 2008; pre-tax charges for stock-based compensation expense and related tax benefits; condensed consolidated balance sheets data (unaudited) as on 31 Dec 2007 and 30 Jun 2008; and reconciliation of GAAP to non-GAAP earnings are in four tables. Genzyme Corp 2Q and 1H 2008 results, 23 Jul 2008 (Genzyme Corp, One Kendall Square, Cambridge, MA 02139, USA. Tel: +1 617 252 7500. Fax: +1 617 252 7600. Website: http://www.genzyme.com)
Grace reports 2Q 2008 financial results: Grace Davison For its 2Q 2008 (period ends 30 Jun 2008), the Grace Davison’s division of WR Grace & Co has reported net sales of $584.8 M ($524.2 M for its 2Q 2007), of which: refining technologies accounted for $285.8 M ($256.2 M), materials technologies $194.6 M ($170.1 M), and speciality technologies $104.4 M ($97.9 M); and pre-tax operating income of $68.5 M ($73.1 M). For its 1H 2008, this division has reported net sales of $1081.9 M ($991.8 M for its 2Q 2007), of which: refining technologies accounted for $522.7 M ($476.1 M), materials technologies $364.9 M ($329.7 M), and speciality technologies $194.3 M ($186.0 M); and pre-tax operating income of $130.8 M ($127.5 M). There is discussion of the business and of the results of this division. Grace Davison’s activities include speciality catalysts and materials used in a wide range of industrial applications. WR Grace Interim Report 2Q 2008, 23 Jul 2008 (WR Grace & Co, 7500 Grace Drive, Columbia, MD 21044, USA. Website: http://www.grace.com)
Johnson Matthey: interim management statement On 22 Jul 2008, Johnson Matthey Plc issued an interim management statement. Commenting on current trading at the Annual General Meeting to be held on that day, Johnson Matthey has made a strong start to the new financial year. In 1Q 2008 (period ends 30 Jun 2008), revenues grew by 33%, sales excluding the value of precious metals increased by 12%, and profit before tax and amortisation of acquired intangibles was 22% higher than in the same period of 2007. Environmental Technologies Division’s sales and profits were well ahead of 2007. Autocatalyst sales continue to grow strongly in Asia, where the group is gaining share, although sales have fallen in North America reflecting a drop in the overall demand for cars and trucks. Argillon, which was acquired in Feb 2008, has made an encouraging initial contribution as demand for catalysts for the reduction of oxides of nitrogen (NOx) has grown across a range of markets. Process Technologies’ operating profit was well ahead with the very high price of
3
F O C US oil increasing demand for catalysts for hydrogen and methanol. Fine Chemicals & Catalysts Division has made a good start to the new year with growing volumes of catalyst products and increased sales of fine chemicals. Borrowings and interest were higher than in the first quarter of 2007/08 mainly as a result of the acquisition of Argillon. 2Q 2008 has begun well and the group has a strong order book. The company is benefiting from increasing global demand for products which reduce pollution and protect the environment. Despite increasingly difficult macroeconomic conditions JM expects profit before tax for the half year to 30 Sep 2008 to be well ahead of the same period last year. Press release from: Johnson Matthey Plc, 2-4 Cockspur Street, Trafalgar Square, London, SW1Y 5BQ, UK. Tel: +44 20 7269 8400. Fax: +44 20 7269 8433. Website: http://www.matthey.com (22 Jul 2008)
Novozymes 1Q 2008: continuing high growth in enzymes for bioethanol For its 1Q 2008 (period ends 31 Mar 2008), the Technical Enzymes segment of Novozymes A/S has reported sales of DKR 563 M (DKR 542 M for its 1Q 2007). Sales of technical enzymes rose by 15% in local currencies and 4% in DKR in 1Q 2008. The development in DKR was affected negatively by the dollar. Growth was primarily driven by sales of enzymes for bioethanol production, which rose more than the development in the US bioethanol market. Sales to the textile industry fell by approximately 13% in the quarter. This decline can be attributed to an unexpected strong and prolonged fashion for dark denim. Progress was made in the quarter outside the denim segment. Firstquarter developments in the textile industry imply that the overall outlook for growth in technical enzymes in 2008 is changed to 22-27% from 2530% in local currencies. Novozymes Interim Report 1Q 2008, 24 Apr 2008, 3,15 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark. Tel: +45 8824 9999. Fax: +45 8824 9998. Website: http://www.novozymes.com)
Novozymes: Beyond enzymes, the birth of a new bio-based industry One of the new areas within Novozymes’ BioBusiness is the
4
O N
C ATA LY S T S
conversion of renewable resources into chemicals. Novozymes will not produce the chemicals but will use its biotechnology expertise to help other companies produce chemicals. In Jan 2008, Cargill and Novozymes announced a joint agreement to develop technology enabling the production of acrylic acid via 3hydroxypropionic acid (3-HPA) from renewable raw materials. The partners will develop a fermentation process to convert glucose or other carbohydrate source into 3-HPA. At present, most acrylic acid is made by oxidising propylene. In 2005, almost half of the 3.1 M tonnes of crude acrylic acid was used to make glacial acrylic acid for superabsorbants. The major use of superabsorbants is in nappies (more than 1 M tonne/y). The remainder is used for acrylates for acrylic fibres, coatings, paints and inks. BioTimes (Novozymes’ Enzyme e-zine), Jun 2008, (2), 11 (Novozymes A/S, Krogshoejvej 36, 2880 Bagsvaerd, Denmark. Tel: +45 8824 9999. Fax: +45 8824 9998. Website: http://www.novozymes.com/biotimes)
hydrolysis. The biggest hurdle in this area is obtaining cheap enzymes but there is also a problem with finding pentose-fermenting organisms. The raw materials will be Swedish forestry waste and bagasse, a waste product from sugar cane ethanol production. Sekab is planning to develop and sell technology for the production of ethanol from bagasse. The company’s plans for large scale plants for producing ethanol from forestry raw materials in Norrland, Sweden, have been moved further into the future. Instead of there being 3 commercial scale plants in place by 2009, there should be one 6000 tonne/y demonstration plant online by 2011. Sekab estimates it will take 5-8 yr to develop a commercial technology for second generation cellulose ethanol. In the meantime the company is investing billions of SKR in the production of traditional sugar cane ethanol in Africa. Kemivarlden Biotech med Kemisk Tidskrift, Jun 2008, (6), 10 (in Swedish)
Qatar: GTL catalyst production in Qatar Perstorp launches biotech project Swedish speciality chemicals firm Perstorp has begun two five-year projects to research renewable alternatives for fossil fuel raw materials. Together with Lund University and other partners in the industry, the firm will utilize almost $6 M from the Swedish government research fund to study the manufacture of natural raw materialsbased 3-hydroxypropionic acid and propionic acid. The research partners will also develop production methods for immobilized biocatalysts. Chemical and Engineering News, 30 Jun 2008, 86 (26), 19-20 (Website: http://www.cen-online.org)
Sekab switches to enzymes for production of cellulose ethanol. The Swedish energy authority Energiemyndigheten has made available SKR 33.8 M to the biofuels firm Sekab over a period of 2 years for the second part of its research project to develop technology for the production of cellulose ethanol. For the first 2 years the company focused on weak acid hydrolysis but now there will be a change of direction and much greater emphasis on enzymic
The first catalyst manufacturing plant in Qatar has been commissioned by Süd-Chemie. The catalysts, which will be marketed in the Arabian Gulf states, will be utilized in the conversion of natural gas into diesel via the gas-to-liquids (GTL) technologies, and other technologies for natural-gas derived higher grade chemicals. So far, a low double-digit million euro figure has been spent by Süd-Chemie in the plant. The company has 20 workers in Qatar. Nitrogen + Syngas, Jul/Aug 2008, (294), 10
Verenium awarded US Department of Energy grant to fund Jennings, LA, demonstration-scale plant. Verenium Corp has been awarded a grant from the US Department of Energy (DOE) under a $40 M programme to support the development of small-scale cellulosic ethanol biorefinery plants. The company will now begin discussions with the DOE to determine the amount of the award. Demonstrationscale facilities are a critical development step to scaling and validating cellulosic technology as the industry advances toward the
SEPTEMBER 2008