- Email: [email protected]
Top 20: the growth story continues
F O C U S Texas Pacific Group (TPG). Beta Renewables launched the world’s pioneer facility for the commercial biomass-to-ethanol operations in Crescentino, Italy, in Oct 2013. The plant features the Proesa technology that allows the generation of bioethanol from agricultural residues using Novozymes’ enzymes. The facility will process around 200,000 tonnes of biomass to manufacture 40,000 tonne/y of ethanol. The company also plans to pursue biochemical production through collaborations with Codexis, Genomatica, Gevo, and others. Beta Renewables’ technology will also be used in four other plants in Brazil, China and the US. Other future plans include a dedicated enzyme manufacturing unit in Brazil to serve the Brazilian/Latin American cellulosic ethanol market. Novozymes will supply the enzyme requirements of its three large-scale ethanol facilities in Brazil and the US in 2014. A map shows the potential of biomass to reach 914 M tonnes available in eight selected regions worldwide. Original Source: Chemical Weekly, 29 Jul 2014, 203-204 (Website: http://www.chemicalweekly.com) © Sevak Publications & Chemical Weekly Database P Ltd 2014
Top 20: the growth story continues Novozymes South Asia has reported a 15.7% revenue growth to Rup 397 crore in FY 2014. The company expects a 12-15% expansion for its enzyme business in the local detergent, food/beverage and textile markets, along with an active biofuel segment as the Indian government plans to raise ethanol blend in fuels to 20%. (1 crore=10 M; 1 lakh=100,000). Original Source: Biospectrum, 11 Aug 2014 (Website: http://www.biospectrumindia.com) © Cyber Media (India) Ltd 2014
Novozymes Inc increases 2014 profit outlook On 14 Aug 2014, Novozymes, the world’s largest producer of industrial enzymes, announced its results for 1H 2014. Organically, sales grew by 8% (4% DKR, 8% LCY). Sales growth slowed down during the period as expected after a strong 1Q 2014 and due to a higher comparable level in 2Q 2014. EBIT grew by 19%, and the EBIT margin increased by 3.5
4
O N
C ATA LY S T S
percentage points to 28.1%. The higher EBIT margin was driven by a one-time positive impact of roughly 2 percentage points from The BioAg Alliance and a significant improvement in underlying earnings. Free cash flow came in strongly at DKR 3417 M due to the positive onetime impact from The BioAg Alliance and a relatively low level of CAPEX in the period. The full-year sales growth outlook is maintained. Full-year expectations for EBIT and net profit growth are increased to 9-11%, up from 8-10%. Expectations for ROIC, including goodwill, are adjusted to approximately 22%, up from 21-22%. Lastly, expectations for free cash flow are revised upward by DKR 500 M, mainly as a result of lower expectations for net investments in 2014 and a higher positive impact from The BioAg Alliance. Original Source: BioSpace, 14 Aug 2014, (Website: http://www.biospace.com)
PQ Corp to be split Asset management firm Carlyle Group plans to split the US-based speciality chemical company PQ Corporation, after failing to sell it for approximately $3 bn. Instead of selling it through an IPO deal, Carlyle is now considering an outright sale agreement involving PQ’s industrial catalysts, performance chemicals and speciality glass materials businesses, in separate transactions. BASF, Umicore, WR Grace and Johnson Matthey reportedly expressed their interest on PQ’s industrial catalysts division. The performance chemicals and speciality glass materials businesses are likely to be divested to private equity firms and PQ’s previous owner, CCMP Capital Advisors, is reportedly intending to acquire the assets. Original Source: Chemical Weekly, 26 Aug 2014, 178 (Website: http://www.chemicalweekly.com) © Sevak Publications & Chemical Weekly Database P Ltd 2014
Really green ethanol from Beta Renewables The first company to reach commercial scale production of cellulosic ethanol was Beta Renewables in Crescentino, Italy. Its patented Proesa process technology subjects the biomass to high
temperature and pressure, enabling the necessary separation of the cellulose and hemicellulose from the lignin, followed by subsequent enzymatic treatment releasing simple sugars which are fermented by yeast into ethanol. The lignin and biogas derived from the processes are recovered and used as fuel in the boiler, generating heat and power. The success of Crescentino plant, which became operational in 2012, resulted in the construction of several cellulosic plants. The plants that are presently under construction include Alpha Project and CanEnergy in the US and Granbio in Brazil, using energy grasses, wheat straw, and corn stover as feedstocks. In early 2014, the technology was also licensed in China (Fuyang Bioproject). Many other industry participants have also progressed to commercial scale production with their cellulosic ethanol process technologies: Inbicon in Denmark, Enerkem in Canada and Raizen in Brazil. In the US commercial scale cellulosic plants will begin production in 2014: Abengoa Bioenergy in Hugoton, KS, US, PoetDSM in Emmetsburg, IA, and Dupont in Nevada, IA. The cellulosic ethanol will both be used as fuel and feedstock for the production of biobased chemicals, a fast emerging industry. Original Source: Nickel (Nickel Development Institute), Jul 2014, 29 (2), 8 (Website: http://www.nickelinstitute.org) © Nickel Institute 2014
UOP and Qatar Petroleum develop technology for treating natural gas A research and development agreement for liquefied natural gas (LNG) production has been signed by UOP Llc, a Honeywell company based in Des Plaines, IL, US, and Qatar Petroleum (QP). In the agreement, UOP and Qatar Petroleum will devise new costeffective purification methods for natural gas that would allow conversion of natural gas into liquid form for transport. UOP offers separation equipment and technology that uses membranes for removing contaminants like water, carbon dioxide and sulfur from natural gas. Original Source: Membrane Technology, Apr 2014, 6 (Website: http://www.membrane-technology.com) © Elsevier Ltd 2014
OCTOBER 2014
Top 20: the growth story continues Novozymes South Asia has reported a 15.7% revenue growth to Rup 397 crore in FY 2014. The company expects a 12-15% expansion for its enzyme business in the local detergent, food/beverage and textile markets, along with an active biofuel segment as the Indian government plans to raise ethanol blend in fuels to 20%. (1 crore=10 M; 1 lakh=100,000). Original Source: Biospectrum, 11 Aug 2014 (Website: http://www.biospectrumindia.com) © Cyber Media (India) Ltd 2014
Novozymes Inc increases 2014 profit outlook On 14 Aug 2014, Novozymes, the world’s largest producer of industrial enzymes, announced its results for 1H 2014. Organically, sales grew by 8% (4% DKR, 8% LCY). Sales growth slowed down during the period as expected after a strong 1Q 2014 and due to a higher comparable level in 2Q 2014. EBIT grew by 19%, and the EBIT margin increased by 3.5
4
O N
C ATA LY S T S
percentage points to 28.1%. The higher EBIT margin was driven by a one-time positive impact of roughly 2 percentage points from The BioAg Alliance and a significant improvement in underlying earnings. Free cash flow came in strongly at DKR 3417 M due to the positive onetime impact from The BioAg Alliance and a relatively low level of CAPEX in the period. The full-year sales growth outlook is maintained. Full-year expectations for EBIT and net profit growth are increased to 9-11%, up from 8-10%. Expectations for ROIC, including goodwill, are adjusted to approximately 22%, up from 21-22%. Lastly, expectations for free cash flow are revised upward by DKR 500 M, mainly as a result of lower expectations for net investments in 2014 and a higher positive impact from The BioAg Alliance. Original Source: BioSpace, 14 Aug 2014, (Website: http://www.biospace.com)
PQ Corp to be split Asset management firm Carlyle Group plans to split the US-based speciality chemical company PQ Corporation, after failing to sell it for approximately $3 bn. Instead of selling it through an IPO deal, Carlyle is now considering an outright sale agreement involving PQ’s industrial catalysts, performance chemicals and speciality glass materials businesses, in separate transactions. BASF, Umicore, WR Grace and Johnson Matthey reportedly expressed their interest on PQ’s industrial catalysts division. The performance chemicals and speciality glass materials businesses are likely to be divested to private equity firms and PQ’s previous owner, CCMP Capital Advisors, is reportedly intending to acquire the assets. Original Source: Chemical Weekly, 26 Aug 2014, 178 (Website: http://www.chemicalweekly.com) © Sevak Publications & Chemical Weekly Database P Ltd 2014
Really green ethanol from Beta Renewables The first company to reach commercial scale production of cellulosic ethanol was Beta Renewables in Crescentino, Italy. Its patented Proesa process technology subjects the biomass to high
temperature and pressure, enabling the necessary separation of the cellulose and hemicellulose from the lignin, followed by subsequent enzymatic treatment releasing simple sugars which are fermented by yeast into ethanol. The lignin and biogas derived from the processes are recovered and used as fuel in the boiler, generating heat and power. The success of Crescentino plant, which became operational in 2012, resulted in the construction of several cellulosic plants. The plants that are presently under construction include Alpha Project and CanEnergy in the US and Granbio in Brazil, using energy grasses, wheat straw, and corn stover as feedstocks. In early 2014, the technology was also licensed in China (Fuyang Bioproject). Many other industry participants have also progressed to commercial scale production with their cellulosic ethanol process technologies: Inbicon in Denmark, Enerkem in Canada and Raizen in Brazil. In the US commercial scale cellulosic plants will begin production in 2014: Abengoa Bioenergy in Hugoton, KS, US, PoetDSM in Emmetsburg, IA, and Dupont in Nevada, IA. The cellulosic ethanol will both be used as fuel and feedstock for the production of biobased chemicals, a fast emerging industry. Original Source: Nickel (Nickel Development Institute), Jul 2014, 29 (2), 8 (Website: http://www.nickelinstitute.org) © Nickel Institute 2014
UOP and Qatar Petroleum develop technology for treating natural gas A research and development agreement for liquefied natural gas (LNG) production has been signed by UOP Llc, a Honeywell company based in Des Plaines, IL, US, and Qatar Petroleum (QP). In the agreement, UOP and Qatar Petroleum will devise new costeffective purification methods for natural gas that would allow conversion of natural gas into liquid form for transport. UOP offers separation equipment and technology that uses membranes for removing contaminants like water, carbon dioxide and sulfur from natural gas. Original Source: Membrane Technology, Apr 2014, 6 (Website: http://www.membrane-technology.com) © Elsevier Ltd 2014
OCTOBER 2014