by Jim Lane

COVID-19 has changed the way we do things…like drink more alcohol, wash our hands more, wear a mask, limit our gatherings and trips, but positive things have come about too. More time to connect with friends and family via online tools, a new respect for healthcare, agriculture and other essential workers, breathing cleaner air, and finding new ways to connect, entertain and innovate. Even in the bioeconomy, companies are doing the “pandemic pivot” and creating innovations to improve our future.

We’ve covered how the ethanol industry jumped in to save the day with hand sanitizer production, but today we look at how bioinnovator, Amyris (AMRS), is taking a different approach to fighting COVID-19.

In today’s Digest, how Amyris reminds us of David Bowie’s “Changes” song and how they are ‘turning to face the strange’ with their sugarcane-derived squalene vaccine adjuvant, how their business is not only surviving but thriving in today’s changing world, and more.

Fighting back with vaccines

First, let’s start with the big news from Amyris that they signed a binding term sheet for a planned COVID-19 RNA (ribonucleic acid) vaccine technology program with The Infectious Disease Research Institute (IDRI).

The program combines IDRI’s expertise in combating infectious diseases with Amyris’ fermentation platform technology, with the goal to create semi-synthetic squalene-based adjuvants at scale. IDRI’s RNA vaccine platform is expected to offer significant differentiated advantages over other RNA vaccines currently in development and will be further enhanced by a scalable Amyris adjuvant.

The Critical Role of Adjuvants in Vaccines

Adjuvants are added to vaccines as an excipient to enhance their effectiveness and are typically sourced from shark-based squalene, a non-sustainable and non-scalable resource. Amyris’ fermentation technology, which replaces shark-derived squalene with lower cost sugarcane-derived squalene, is capable of delivering greater availability facilitating access to adjuvants by large parts of the population. Amyris’ squalene is targeted to be functionally identical to shark-based squalene and will be certified as such as one of the last steps to commercialization.

“The combination of IDRI’s leading RNA vaccine platform technology combined with Amyris’ sustainably-derived adjuvant has the potential to lead on efficacy for a COVID-19 vaccine solution and potentially play a major role in other vaccine solutions to help mitigate potential future pandemics,” said IDRI’s CEO Dr. Corey Casper. “Without adjuvants, vaccines are not maximally effective, and a shortage of existing shark-based adjuvant supply could prove devastating in the future, underlining the importance of this anticipated partnership.”

“We are pleased to partner with IDRI to combat COVID-19 and deliver a significant breakthrough for vaccine technology into the future,” said John Melo, Amyris President and CEO. “We believe synthetic biology can play a significant role in scaling vaccines and therapies that meet the needs of global health crises. Making the world’s rarest chemistry available and affordable has been Amyris’ purpose since its founding in 2003. Soon after its founding Amyris partnered with the Bill and Melinda Gates Foundation and created an alternative supply source through fermentation for artemisinin, a first-line treatment for malaria that is still recommended by the World Health Organization today. Many organizations are working toward a COVID-19 vaccine solution, with uncertain outcomes. IDRI’s expertise in vaccines combined with our leading synthetic biology platform presents a real opportunity to deliver the most scalable and highest efficacy vaccine for COVID-19. We are focused on a second-generation solution that is better performing and can deliver a sustainable platform for vaccines to address future pandemics. We expect first commercial supply of our leading vaccine adjuvant by the end of this year and, assuming successful trials, could have a successful vaccine platform next year.”

Amyris and IDRI anticipate executing a comprehensive agreement after which additional details of the proposed program will be disclosed. In the interim, work on advancing the vaccine is continuing to ensure accelerated time to market.

Not just surviving but thriving

And while many biofuel, biomaterial, biochemical and other bio-related companies are struggling, Amyris has had a solid first half of 2020. They just announced their second quarter 2020 results demonstrating a record quarter for consumer brands with 3X revenue growth, the lowest cash operating expenses in five quarters, and $200 million private placement that significantly reduced debt and debt servicing expense.

Here are some more of their Q2 2020 highlights:

• Completed $200 million private placement during Q2; largest raise in the history of the company.
• Reduced debt by $121 million or 40% since start of 2020. Improves H2 2020 debt servicing cash costs by $30 million.
• Q2 Recurring Revenue for Consumer & Ingredients of $26 million more than doubled YOY. Record quarter for Consumer brands with revenue tripling YOY from strong online sales. Ingredients Revenue grew in excess of 50% year-over-year.
• Cash Operating Expenses of $43 million were the lowest in the five sequential quarters and down 6% versus prior year. Lower G&A and R&D expense was partly reinvested in consumer brands.
• Signed commercial partnership for Purecane in commercial baking applications with AB Mauri.
• Signed term sheet for a scientific partnership with Infectious Disease Research Institute (IDRI) to create RNA vaccine platform.

Reaction from the stakeholders

“Our business and our people have shown strong resilience during these unprecedented times. Keeping everyone safe has been our number one priority while continuing to grow revenue and improve operations. COVID has certainly had an impact in how we operate the business. For example, COVID has impacted progress with third party manufacturing,” said John Melo, President and Chief Executive Officer. “Lower consumer revenue from store closures was mitigated by consumers transitioning online. Our consumer brands saw record revenue in the quarter and, for the first time, was equal in size to our ingredients portfolio. We expect second half consumer revenue to more than double that of the first half of this year. This shift in our portfolio will continue with significantly larger sustainable and predictable product revenue relative to collaboration programs.”

Continued Melo, “We have executed on commercial and scientific strategic partnerships such as Purecane in commercial baking applications with AB Mauri and to create an RNA vaccine platform with IDRI. Our focus on improvement of operational economics as it relates to scale-up of both new ingredients and our young brands continues, and we made significant progress on improving our capital structure. During Q2, we raised $200 million from a private placement with high-quality investors of which 70% were new and 90% with a health care, biotechnology and/or long orientation.”

Strategic Priorities

The strategic priorities Amyris set out at the start of 2020 support their goals for growth, sustained cash generation, and profitability.

Full Year 2020 Outlook

When looking to the future, no one can predict what it holds but Amyris notes “Based on current estimates, the full year Sales Revenue target indicates approximately 44% growth versus 2019 GAAP sales revenue of $153 million, and approximately 80% versus 2019 recurring sales of $104 million. Based on expected sales mix, Gross Margin is expected to be between 55-60% of revenue. Adjusted EBITDA is expected to turn positive during Q4 of this year. COVID continues to present significant uncertainties to which we do not have full visibility.”

Bottom Line

While most companies in the bioeconomy are throwing out the crystal ball completely, it doesn’t mean companies are just giving up on predicting what might happen and preparing for all sorts of scenarios. And that’s what sets successful companies apart from others – the savviness to work with the current situation and make the best of it, going outside the box or comfort zone to come up with creative ways to survive the current time, and the vision to consider possible future challenges, creating scenarios and action items for each of them and being prepared yet adaptable and flexible for whatever may come.

So whether you prefer the classic David Bowie “Ch-ch-changes, Turn and face the strange, Ch-ch-changes” song or the more modern Sigma version “This ain’t what I signed up too, This ain’t right, it’s no good, No good, oh, Everything is changing”, remember that while there are lots of changes going on, some of them are good.

Jim Lane is editor and publisher  of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

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by Jim Lane

In California comes the news that synthetic biology leader Amyris (AMRS) is stepping out to help fight COVID-19. Amyris may be more well known for its sustainable ingredients for the Health & Wellness, Clean Beauty and Flavors & Fragrances markets, but as you all know, things have changed a lot over the last few months and Amyris is now launching a hand sanitizer to help address the high demand triggered by COVID-19. Additionally, the company has completed initial testing of a leading vaccine adjuvant.

Amyris is leveraging its existing capabilities to fast track the availability of a safe and clean No Compromise Pipette Baby branded hand sanitizer that can be used by everyone. This product is focused on high performance cleaning while being healthy for your hands. Consistent with its core values, Amyris will not price its hand sanitizer at a premium, and plans to donate part of the supply to front-line health staffers and medical personnel.

In partnership with the Infectious Diseases Research Institute (IDRI), Amyris has completed initial testing of its fermentation-derived squalene as a vaccine adjuvant. The company is in active discussion with a leader in the pharmaceutical industry to target broad application of Amyris squalene in flu and potential COVID-19 vaccines.

Reactions from the stakeholders

John Melo, President and CEO of Amyris, commented: “We are committed to No Compromise products, formulations and ingredients. Our hand sanitizer is a great example of swiftly applying our market-leading squalane moisturizer to an immediate need. We expect to produce an estimated 30,000 units in the first weeks and to expand production quickly. First shipments are expected as early as next week. The product will be available to the public on PipetteBaby.com.”

Continued Melo, “Building on our historical success with an antimalarial treatment, we are currently reviewing several of our fermentation-based molecules for potential efficacy in the treatment of COVID-19. We are quickly moving several of these into testing. In addition, we are currently ahead of expectations for our product shipments this quarter. During these unprecedented times, we are working hard at Amyris to keep our people safe and healthy while continuing to support the needs of consumers and making the world healthier.”

Bottom Line

Amyris isn’t the only one in the bioeconomy to jump in and change course to help the world fight against COVID-19. If you’ve not heard, NuGenTec is looking for Distillers to help supply Ethanol for Hand Sanitizers in California and said they have two automated bottling lines waiting for ethanol to produce 8oz and 16oz gel type hand sanitizers. And as we reported earlier this week as well, Aemetis is one of those companies jumping into the hand sanitizer market, even as transport fuel demand falls off, driving fuel ethanol prices into an all-time low range of around $0.70 per gallon.  Aemetis (AMTX) said its 65 million gallon per year ethanol plant near Modesto, California has begun shipments of 200 proof alcohol for use in the production of hand sanitizer. There are many others doing this out there too, and that gives us hope that the bioeconomy will do what it takes to survive challenging times while also being a proponent for good.

Jim Lane is editor and publisher  of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

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by Jim Lane

If you’ve not heard, NuGenTec is looking for Distillers to help supply Ethanol for Hand Sanitizers in California! We have two automated bottling lines waiting for ethanol to produce 8oz and 16oz gel type hand sanitizers, they write. You can learn more here.

And as we reported this morning, Aemetis (AMTX) is one of those companies jumping into the market, even as transport fuel demand falls off, driving fuel ethanol prices into an all-time low range of around $0.70 per gallon.

The shortage is real

If you’ve been trying to buy hand-sanitizer, it’s been hard to find. Here in Digestville, we’ve been making our own from 25 percent Aloe Vera and 75 percent rubbing alcohol. Most authorities have emphasized a 2:1 alcohol to Aloe Vera ratio, but Aloe Vera has also been hard to find near Digest HQ. On Friday, a shipment arrived but it was the industrial bags that go in large dispensers at offices and hospitals, not the individual spray bottle variety.

The catalyst

The catalyst? In response to the Coronavirus Disease 2019 (COVID-19) pandemic, the Alcohol and Tobacco Tax and Trade Bureau (TTB) created exemptions allowing certain alcohol fuel permit holders to sell ethanol (alcohol) for use in the production of hand sanitizers.

Consequently. Aemetis, Inc. said its 65 million gallon per year ethanol plant near Modesto, California has begun shipments of 200 proof alcohol for use in the production of hand sanitizer, which is in a significant shortage created by the worldwide spread of Coronavirus (COVID-19).

“Can’t hand sanitizer save the industry now?”

As an Argus media reporter asked at an emergency RFA online press conference on the coronavirus crisis, “why can’t the whole industry pivot to industrial ethanol production? Why can’t hand sanitizer save the industry now?”

The response from Randy Doyal, CEO, Al-Corn Clean Fuel, based in Minnesota was that there would be less vodka but more hand sanitizer coming in the next week to 10 days.

The good news

As Raymond James’ Pavel Molchanov observed this week, “Just as automakers converted their plants to supply tanks and fighter jets during World War II, and those same companies are now looking at supplying ventilators, many other enterprises amid the COVID-19 crisis are looking for creative ways to address the public health emergency. Here is one that, we admit, we would not ordinarily think about: producing hand sanitizer from corn ethanol.

“Aemetis, an early entrant into this market, points to prospective pricing of $70+ per gallon (yes, really). Amid oil prices at nearly 20-year lows, well below $30/Bbl, it goes without saying that ethanol prices are depressed: currently around $1.00/gallon. Selling into the hand sanitizer market can offer pricing that is 70x higher. Yes, you read that right. To be sure, the economics vary on a site-by-site basis, based on (among other things) proximity to hand sanitizer production facilities. Aemetis (AMTX), which produces ethanol in California, has the advantage of being located on the West Coast, and last week it became one of the first ethanol players to take advantage of the Treasury’s authorization. From our conversation with Aemetis, here is the economic proposition, in general terms… Retail stores are selling hand sanitizer at around $1.50/ oz. Of that, $0.50 goes to the retailer and distribution, $0.20 for packaging, and $0.20 for the compounder. That leaves $0.60 for the ethanol feedstock. With 128 ounces in a gallon, the implied selling price is upwards of $70/gallon.”

Raymond James rates this as as “a textbook ESG business opportunity” for which the economics look very lucrative. “At a time when ethanol prices are ultra-depressed due to the oil price meltdown, this is a fascinating, below-the-radar opportunity for ethanol producers, including Green Plains,” Molchanov writes.

Some market sizing

Hmm. Let’s quickly demolish the thought that this is anything but a small-scale opportunity.

The recommended usage, by the CDC, is 1.5 mL per application. Assuming, say, two usages per day by everyone in the United States, that would add up to around 45 million gallons of sanitizer over the next 6 months. Now, sanitizer is around 1/3 alcohol — so consider the maximum market size to be around 30 million gallons.

That’s US ethanol production for about 17 hours.

Now, we’ve assumed a perfect market. Imperfections abound. Two could make the market bigger, and that’s over application or simply stocking up on extra hand sanitizer. But many more factors could make the market smaller. First, not every person in America may hand-sanitize twice a day – they might wash their hands, do nothing, or the expected usage may not apply to children or people sheltering in place. Also, there are the existing suppliers of industrial alcohols. And, there is the problem of offtake contracting, manufacturing, shipping, retail display contracting and so forth.

And, the more ethanol producers that qualify for this market, the lower the price will go. Not to mention that the entire market is predicated on a waiver granted by the Alcohol and Tobacco Tax and Trade Bureau. And we know how reliable the US government has been on waivers that are friendly to the US ethanol industry.

To pivot entirely to producing hand sanitizer, every adult in the United States would have to sanitize more than 625 times per day.

Doesn’t mean it’s not a clever, niche opportunity. A 60-million-gallon ethanol plant like Aemetis’ Keyes facility could switch over say 33 percent of its production over the next 6 months or so, and the potential upside is very lucrative. So long as everyone doesn’t jump into the market and crash the price. Which presumably they will.

Donation in the offing

Some producers are simply donating ethanol to support the community.

Today, we hear that two Iowa Renewable Fuels Association members sent the first donated shipment of Iowa ethanol and glycerin to the state of Iowa to be used by Iowa Prison Industries for the production of hand sanitizer during the national shortage. The donation is made by Iowa ethanol producer Absolute Energy and Iowa biodiesel producer Western Iowa Energy. The Iowa Renewable Fuels Association (IRFA) worked with Iowa Prison Industries to secure the shipment of these products and other necessary ingredients. Templeton Rye is also providing distilled water for the project. The finished product will be distributed free of charge by the state of Iowa for priority use.

Reaction from the stakeholders

“Aemetis is moving quickly to help address the significant demand for hand sanitizer products in light of the COVID-19 pandemic during this time of national emergency,” said Andy Foster, President of Aemetis Advanced Fuels Keyes, Inc. “As the WHO and CDC strongly recommend the use of hand sanitizer products to help prevent the spread of Coronavirus, Aemetis is utilizing our ethanol production capability to address the current shortage of hand sanitizer by increasing the supply of high-proof alcohol used in the manufacturing of sanitizer products,” said Foster.

Jim Lane is editor and publisher  of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

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by Helena Tavares Kennedy

It began with beef without the cow, even leather without the cow, and now we wave goodbye to pork from the pig with the news that Impossible Foods has launched pork made from plants.

Not only that, but Impossible Foods is going beyond the Impossible Whopper and expanding their work with Burger King in a new Impossible Croissan’which using Impossible Sausage made from plants as well. That will be available in only some Burger King locations starting in late January.

What’s in it?

Impossible Foods says their new pork protein is mostly made with soy protein, coconut oil, sunflower oil. The company says “It’s got all the tender, juicy, versatile flavor and texture of pork, and it’s made from plants.” While it’s similar to the ingredients as Impossible Beef, it isn’t exactly the same (like no potato protein or heme). Here’s the ingredient list for Impossible Pork:

Water, Soy Protein Concentrate, Coconut Oil, Sunflower Oil, Natural Flavors, 2% Or Less Of: Methylcellulose, Cultured Dextrose, Food Starch Modified, Salt, Yeast Extract, Soy Leghemoglobin, Mixed Tocopherols (Vitamin E), Soy Protein Isolate, Zinc Gluconate, Spice, Sodium Ascorbate (Vitamin C), Niacin, Thiamine Hydrochloride (Vitamin B1), Pyridoxine Hydrochloride (Vitamin B6), Riboflavin (Vitamin B2), Vitamin B12.

What about nutrition? Impossible Pork contains no gluten, no animal hormones and no antibiotics. It has 16g protein, 3mg iron, 0mg cholesterol, 13g total fat, 7g saturated fat and 220 calories in a 4-oz. serving. For reference, conventional 70/30 pork from animals contains 17g protein, 1mg iron, 86mg cholesterol, 32g total fat, 11g saturated fat and 350 calories in a 4-oz. serving.

So why are they taking on the pig now?

“We chose Impossible Pork as our next product because pork is the most popular meat in the world, accounting for about 38% of meat production worldwide. Impossible Pork allows pork-lovers to keep enjoying their favorite ground pork recipes, but in a way that’s better for the planet.”

“Like all animal meat production, making food from pigs comes with a high environmental cost.”

Pat Brown, Founder and CEO said in a launch video that it’s a pivotal moment for Impossible Foods as they introduce this second completely new product. He said that while beef is more popular in the U.S., pork is more popular globally so that is why they chose pork as their new product launch so that they can make an impact globally, referring to animal-based meat as having a “catastrophic environmental impact.”

However, don’t get too excited and start asking every restaurant or grocery store for the Impossible Pork as they have yet to say where or when it will be available, only saying on their website that “We’re still putting the finishing touches on Impossible Pork, so you won’t see it on menus just yet.” Impossible Foods launched products in U.S. grocery stores, as reported in The Digest in September, but you’ll just have to wait a little longer for Impossible Pork.

Is Impossible Pork really that different from Impossible Burger?

Yes, according to the company…and it has a lot to do with your senses.

First, “ground pork is lighter in color than beef: light pink when it’s raw, and light brown or grey when it’s cooked. Its smell and taste are milder than ground beef, with a juicy, chewy, fatty mouthfeel. You can expect the same savory, umami, melt-in-your mouth, can’t-wait-for-another-bite experience from Impossible Pork Made from Plants.”

Beyond Impossible…

Impossible Foods isn’t the only making some headway in the meat alternative, mainstream world.

Just last week, McDonald’s announced that they are expanding Beyond Meat plant-based burger trials in Canada with the aim to look at feasibility in the U.S. in the future, giving some competition for the Burger King Impossible Whopper. Also, as reported in The Digest just last week, Impossible Foods broke off supplier talks with McDonald’s because it can’t currently meet the production volumes that the fast food giant would need. Either way, this might just become a divisive debate like Pepsi vs. Coke or Red Sox vs. Yankees…we can see the family fights already brewing.

Also last week, The Digest reported that Subway launched the new Beyond Meatball Marinara sub in Canada – and not just in a small test market, but in thousands of locations across Canada. You can check out The Digest’s Multi-Slide Guide to Beyond Meat here.

And remember in November, The Digest reported that Air Protein introduced the world’s first food made out of air…yes, air! Well, if you want to get more technical, they made it out of the elements found in the air we breathe and was inspired by NASA’s closed loop carbon cycle concepts for long-journey space missions.

It’s not just Air Protein in California either, as scientists in Finland are on top of the “food from air” game too with Solar Foods’ pilot plant. Their take is making protein from soil bacteria that feed on hydrogen split from water by electricity – which if the electricity is made from solar or wind power, then we are talking zero emissions food production.

Bottom Line

What next? Impossible Chicken? Impossible Turkey? Why not! Consumer awareness of the environmental impact of meat production is increasing and some look for meat alternatives as a health choice so it’s not surprising to see the rise in innovation and demand from companies like Impossible Foods, Beyond Meat, Air Protein, and others. So keep an eye out as you never know what new food innovation may arise next!

Helena Tavares Kennedy is a writer for Biofuels Digest, where this article was first published.  Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

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by Jim Lane

In hand we now have the latest earnings reports from what you might call the 8 Pathfinders – eight publicly traded stocks whose second quarter results offer insights into the health and performance of the advanced bioeconomy as 2019 heads towards its closing crescendos.

Our 8 Pathfinders – In the world of global renewable diesel at scale, Neste (Neste.HE); pure-play enzymes, Novozymes (NVMB); In pharma and synbio, Codexis (CDXS); as a hybrid play in advanced fuels, Aemetis (AMTX); in advanced marine and jet fuels, Gevo (GEVO); for biodiesel and hydrocarbons, Renewable Energy Group (REGI); in advanced began foods, Beyond Meat (BYND), and for a diversified ethanol and nutrition play, Green Plains (GPRE).

At Neste

As CEO Peter Vanacker, noted: “Neste’s solid financial performance continued. We posted a comparable operating profit of EUR 367 million in the second quarter, compared to EUR 277 million in the corresponding period last year. Renewable Products’ quarterly sales and production volumes were the highest ever. The renewable diesel market continued to be favorable, but feedstock prices increased as communicated earlier. Our sales volumes were 745,000 tons, and this new quarterly record was also supported by the excellent operational performance at the refineries. The higher sales volume had a positive impact of EUR 79 million on the comparable operating profit year-on-year. The comparable sales margin averaged at USD 568/ton, which was 12% higher compared to the corresponding period last year, leading to a positive impact of EUR 32 million on the operating profit. During the second quarter 65% of volumes were sold to the European markets and 35% to North America. During the quarter our renewable diesel production facilities operated at a very high average utilization rate of 105%, based on the nominal capacity of 2.9 Mton/a. The share of waste and residues was 77% of the total renewable raw material inputs.”

Outlook: Developments in the global economy have been reflected in the renewable fuel, feedstock and oil markets; and volatility in these markets is anticipated to continue. Vegetable oil price differentials are expected to vary, depending on crop outlooks, weather phenomena, and variations in demand for different feedstocks. Global oil product demand growth is expected to continue at a lower rate than in 2018, while global refining capacity additions are expected to grow driven by large projects in Asia and the Middle East. Based on our current estimates and a hedging rate of approx. 80%, Neste’s effective EUR/USD rate is expected to be within a range 1.14-1.16 in the third quarter of 2019.

At Novozymes

Novozymes “confirmed on all fronts following the adjustments communicated on June 6,” with First-half year-on-year (y/y) organic sales growth of -3%: Household Care -2%, Food & Beverages -2%, Bioenergy -4%, Agriculture & Feed -6%, Technical & Pharma +2%. EBIT margin 30.0%. Net profit up 1 percentage point (y/y).

CEO Peder Holk Nielsen said, ““Our half-year sales performance is not satisfactory, but as expected, following the revised full-year outlook on June 6. Softness in US agriculture and some emerging markets, including the Middle East, has created headwinds. We’re confident sales growth will accelerate in the second half of the year as the Freshness platform, BioAg and Bioenergy all step up, and the Middle East comparison eases.”

At Codexis

As CEO John Nicols noted: “Product revenue increased a very solid 68% over the prior-year period with strong contributions from Merck, Urovant Sciences and four additional global Top 25 pharmaceutical customers. R&D revenue was spread across an increasingly wider base of customers including Nestlé Health Science, four global Top 25 pharmaceutical customers, and two new customers in two new verticals. We also secured a dedicated R&D project team working with another new global customer targeting an entirely different molecular diagnostics application class for Codexis. Additionally, we are delighted with Casdin Capital’s $50 million investment in Codexis, as announced in June. We appreciate their confidence and their recognition of the versatility of our CodeEvolver platform technology.

Q2 revenues were $12.3 million, compared with $13.5 million for the second quarter of 2018. Product revenue was $6.2 million, up 68% from $3.7 million for the second quarter of 2018, with the increase reflecting customer demand for enzymes for both generic and branded products.The net loss for the second quarter of 2019 was $6.5 million, or $0.12 per share, compared with a net loss for the second quarter of 2018 of $3.7 million, or $0.07 per share.

Codexis is affirmed its financial guidance for 2019 for revenues are expected to be $69-$72 million; and product revenues are expected to be $26-$29 million.

At Aemetis

Aemetis’ reported in Q2 $11.1 million of revenue from India operations during the second quarter of 2019, representing a 106% increase from the prior year quarter.  Aemetis said it continues to advance its ultra-low carbon California cellulosic ethanol biorefinery, which is expected, upon completion, to add approximately $80 million of high margin revenues. Utilizing thousands of tons of waste wood from California’s Central Valley, the Aemetis cellulosic ethanol biorefinery is expected to produce the state’s lowest carbon ethanol fuel and reduce greenhouse gas emissions in the process.

At Gevo

Gevo reported $5.1M in quarterly revenue, a $4.7M EBITDA loss and ended the quarter with cash and cash equivalents of $29.2 million. The company entered into an agreement with Air TOTAL for Gevo to supply its sustainable aviation fuel to Air TOTAL for use and distribution in France and other parts of Europe.  With the finalization of this new supply contract, Gevo will initially supply Air TOTAL SAF from the South Hampton facility in Silsbee, Texas and eventually from the expansion of Gevo’s advanced biofuels production facility in Luverne, Minnesota plant which is expected to be constructed in the next several years. Gevo also reported successful completion of the Port of Seattle renewables trial, and a trial with Virgin Australia.

CEO Pat Gruber noted “the pieces necessary to drive Gevo’s business are falling into place.  We believe we are making real progress on refinancing our secured debt, securing offtake agreements for our advanced renewable biofuel products and advancing manure biogas and wind projects to decarbonize our Luverne Facility.  Evidence of our progress include the supply agreement with Air TOTAL.  In addition, we are working on securing a loan for up to $45 million that could be used, in part, to pay off our current secured lender.

At REG

REG reported 197 million gallons sold, 127 million gallons produced, revenues of $560.6 million and adjusted EBITDA of ($42.3 million).

REG’s average selling price per gallon was $2.70, a decrease of 13.2% resulting primarily from lower biodiesel prices, which were down $0.55 per gallon from the second quarter of 2018. The lower biodiesel prices resulted from customers’ preference to take on smaller share of the benefit of a potential BTC reinstatement, and from lower ULSD prices. D4 RIN prices in the second quarter of 2019 were $0.16 per RIN lower on average compared to the second quarter of 2018. The Company produced 126.8 million gallons of biomass-based diesel during the quarter, a 2.0% increase.

CEO C.J. Warner noted:  “The challenging margin environment continued in the second quarter as a result of uncertainty around both the BTC and small refinery exemptions. Within this context, our underlying performance was strong with a 15.0% increase in gallons sold and a 2.0% increase in gallons produced. We continue to believe that the BTC will be reinstated, which will reward our strong operational performance. On the non-operating front, we are pleased that we finalized the sale of our Life Sciences business and paid off our 2019 convertible notes without financing, primarily from cash on hand.”

The Company estimates that if the currently lapsed BTC is retroactively reinstated for 2019 and 2018 on the same terms as in 2017, REG’s Adjusted EBITDA would increase by approximately $81.0 million for the quarter.

At Beyond Meat

BYND reported net Q2 revenues of $67.3 million, an increase of 287%; gross profit was $22.7 million, or 33.8% as a percentage of net revenues, net loss was $9.4 million, or a loss of $0.24 per common share, compared to net loss of $7.4 million, or a loss of $1.22 per common share in the year-ago period; and adjusted EBITDA, which is a non-GAAP financial measure, was $6.9 million compared to an Adjusted EBITDA loss of $5.6 million in the year-ago period.

CEO Ethan Brown said, “We are very pleased with our second quarter results which reflect continued strength across our business as evidenced by new foodservice partnerships, expanded distribution in domestic retail channels, and accelerating expansion in our international markets. We believe our positive momentum continues to demonstrate mainstream consumers’ growing desire for plant-based meat products both domestically and abroad,”

Brown said that Q2 growth was driven by an increase in sales volumes of products in the fresh platform across both retail and restaurant and foodservice channels, driven by expansion in the number of retail and foodservice points of distribution, including new strategic customers, international customers, and greater demand from existing customers.

At Green Plains

Green Plains reported a Q2 net loss of $45.3 million compared with net loss of $1.0 million, or $(0.02) per diluted share, for the same period in 2018. Revenues were $895.9 million for Q2 compared to compared with $986.8M for Q2 2018.

CEO Todd Becker noted, ““We continued to face a challenging ethanol margin environment compounded by a reduced run rate early in the quarter as we emerged from a first quarter production slowdown that impacted our financial performance,” commented Todd Becker, president and chief executive officer. “We believe that maintaining a strong balance sheet while continuing to reduce operating expenses through our Project 24 initiative, should give us the financial stability to withstand any elongated margin weakness the industry may face.”

“While our company and industry have been hit hard by government policy, geopolitics and oversupply, we are not waiting for the recovery to happen. We will continue to transition this platform to high protein animal feed production as a growing driver of more predictable and stable earnings, beginning with the completion of our high protein project in Shenandoah, Iowa in late 2019.”

Becker confirmed an LOI to sell a minimum of 50% of its cattle subsidiary for $75M. He also said that Project 24 remains on course “in lowering our operating expenses to an estimated 24 cents per gallon across our ethanol platform.

Looking at the Sector

So there we have it, choppy waters. Fast growth at Beyond Meat, confidence and strong growth in renewable diesel crisis in first gen US ethanol and biodiesel, lackluster growth in enzymes, particularly in agriculture. Synbio product revenues continue to be small but fast-growing, as we see at Codexis; Indian biodiesel finally performing as long expected, but slow development within Aemetis’ cellulosic ambitions. Gevo continues to zig and zag in search of the capital to realize its ambitions in marine and jet, with significant offtakers showing increased interest in the platform.

The bottom line, the more advanced the technology (Beyond, Neste, Codexis), the better the results for this quarter. For a number of years there has been a real increase in the dependence of the industry on its more established companies and sectors, such as first-gen ethanol, biodiesel, and conventional protein. The pendulum has been singing towards “advances via advanced” and it will be interesting to see how the second half of the year shapes up.

For sure, the Trump Administration is just killing farmers, advanced manufacturing and domestic renewable fuels. EPA has been a thorn in the industry’s side ever since the agency was handed responsibility for administering the Renewable Fuel Standard, but never more so than now. The distress is real, though companies that saw the headwinds are doing better than others. As Green Plains’ Todd Becker observed, “we are not waiting for the recovery to happen.”

Transition is in the air — it is a Year of Living Endangeredly.

Jim Lane is editor and publisher  of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

The post Living Endangeredly- Q2 Biobased Earnings Roundup appeared first on Alternative Energy Stocks.

In late August 2018, sustainable ingredients developer Amyris (AMRS:  Nasdaq) staged a successful secondary offering by a selling stockholders, Foris Ventures and Vivo Capital Fund.  In conjunction with the offering the company raised $46.0 million in new capital through the exercise of warrants held by existing shareholders.  Last week the shares closed over 40% higher than the $6.25 deal price.  The chief executive officer lauded shareholders for their support and apparent endorsement of the company’s game plan to commercialize sustainable alternatives to petroleum-sourced materials used in fragrance, health and beauty products.

Amyris leadership should celebrate its loyal shareholders given how far the company drifted from its earliest promises to investors.  Amyris scientists had developed renewable farnesene from sugar cane using genetically modified yeasts and planned to make it the base chemical building block for a variety of products dependent upon petroleum-based inputs.   At inception in 2003, Amyris raised capital to develop a ‘drop-in’ synthetic transportation fuel based on its core expertise in converting plant sugars in to hydrocarbon molecules.  In 2010, the company’s prospectus for its initial public offering featured a smart diagram of its business model with shiny eighteen wheelers delivering jet fuel to large aircraft. That same business model illustration included a laundry list of renewable chemicals that could be parsed from the company’s chemicals knowhow.

One by one the markets have been discarded as uneconomic  –  at least for Amyris.  Transportation fuels was the first target be left by the roadside.  Despite partnering with Sao Martinho S.A., a Brazilian sugar cane grower and ethanol producer, to co-locate chemicals production next to its facilities, Amyris ‘capital light’ strategy proved too burdensome to turn a profit in the long-term.

By the time Amyris came to investors for its most recent transaction, target markets had been entirely revised to focus on the health, beauty, flavors and fragrances markets.  True enough many consumer products are dependent upon materials and ingredients sourced from petroleum. The company’s proprietary renewable farnesene molecule has broad application for skincare, cosmetics, fragrances and flavors.  Importantly, these appear to be among the few end-markets that afford high enough prices to return a profit on the commercial version of Amyris’ process.

In the three months ending June 2018, Amyris reported $23.2 million in at its topline.  Renewable products were only 28% of the mix at $6.6 million.  The cost of those products was a whopping 90% of sales.

Fortunately, royalties and licenses represented $6.9 million or 30% of total sales and grants and collaborations another $9.7 million or another 42%.  Contribution margins on these revenue sources are substantially higher, providing better coverage of operating expenses than the skimpy 10% delivered by renewable products.

Yet Amyris is still not profitable.  The company continues with an ambitious research and development program at a spending rate near $60 million per year. Sales, general and administrative expenses are also running about $80 million per year with current staffing and operational infrastructure.  Some of the investments in market penetration and business development may prove out in the future.  The company recently announced new deals and agreements that would take the company into health and nutrition products.  The company’s own Biossance brand of beauty products is also expanding into the popular Sephora cosmetics chain in its JC Penny sites.

In the meantime, the numbers depict a company still searching for its footing.  At the end of June 2018, Amyris was capitalized with $171.4 million in debt, including $67.8 million owed to related party.  The company has also taken in $1.1 billion in equity capital, but is running a deficit of $255 million.  The $46 million that Amyris just took in improves the picture somewhat.  There is also something to be said for clearing up the number of outstanding warrants.  However, the deep deficit is troublesome after sixteen years in development.

What is even more worrisome is the continued steep cash requirement to keep operations going.  Amyris burned through $53 million in the first six months of 2018.  The company had $14.1 million in cash on its balance sheet at the end of June 2018 and just before the secondary offering by its venture capital supporters. With only about $60 million in the bank after the recent warrant exercise, shareholder goodwill may need to stretch across another capital raise before the end of the year.

Debra Fiakas is the Managing Director of Crystal Equity Research, an alternative research resource on small capitalization companies in selected industries. Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.

The post Can Amyris Find The Ingredients Of Success? appeared first on Alternative Energy Stocks.

by Jim Lane

The Top Line. In California, Amyris (AMRS) reported Q2 GAAP revenue for the second quarter of 2018 of $24.8 million, compared with $25.7 million for the second quarter of 2017. Grants and collaborations revenue was $11.4 million for the second quarter of 2018 compared with $10.3 million for the year-ago period. The company noted that Q2 revenue was $24.8 million compared with the same period in 2017 of $21.7 million when adjusted for the low margin product sales on contracts assigned to DSM (DSM.AS). This reflects 15% growth on an absolute basis. GAAP net loss for the first half was $89.1 million compared to $47.6 million in 2017. Non-GAAP net loss for the first half of fiscal year 2018, excluding the non-cash items mentioned, was $47.5 million compared to a non-GAAP net loss for the first half of 2017 of $68.7 million.

The Big Highlights. The company Announced plans to partner with BGI, one of the world’s largest genomics companies in a new joint venture to discover, develop and commercialize human microbiome-targeting health and nutrition products in Greater China. The company also signed its Universidade Católica Portuguesa Porto Campus and AICEP Portugal Global agreement valued up to $50 million including investment funding and incentives allotted across parties involved. The grant provides funding to explore utilization of waste streams from fermentation to develop new products and applications while also advancing Amyris’s artificial intelligence (AI) and Informatics platform. And the company successfully launched Biossance brand in Brazil with sales doubling expectations within first 6 weeks. CEO John Melo said that the company’s natural sweetener product opportunity gained significant traction during the second quarter and we have the customers in place to sell all of our supply over the next three years.

Jim Lane is editor and publisher  of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

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by Jim Lane

The Top Line. In Denmark, Novozymes (Copenhagen:NZYM-B; OTC:NVZMY) reported 4% organic sales growth for the first half and a 5 percent jump in Q2 with bioenergy reporting a 14% jump. Overall, net profit grew 5% and the company affirmed its 2018 guidance. Sales dipped to DKK 7,018m from DKK 7,278m, and EBITDA was flat at DKK 2,464m, although we primarily attribute that to currency shifts.

The Big Highlights. Growth in Food & Beverages and Agriculture & Feed; Bioenergy particularly strong. Good ramp-up of recent product launches. +7% organic sales growth in emerging markets; Freshness & hygiene platform in Household Care developing according to plan with first commercial product available in stores in the Philippines.

Peder Holk Nielsen, President & CEO of Novozymes: “Overall, I’m satisfied with our performance in the first half year. Bioenergy performed very well, whereas Household Care was softer than expected. Our innovation pipeline is solid, and a stronger commercial and emerging market focus is paying off. We’re launching a new, exciting product for animal health, and both our freshness & hygiene platform for laundry and the new corn inoculant are making good progress. And while uncertainty around global trade and agricultural markets persists, we remain committed to our 2018 guidance.”

Jim Lane is editor and publisher  of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

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by Jim Lane

The Top Line. In the Netherlands, Corbion (CRBN.AS; CSNVY) reported H1 2018 sales of € 439.2 million, a decrease of 4.9% compared to H1 2017, entirely due to negative currency effects. Organic sales growth was 3.1%. EBITDA excluding one-off items in H1 2018 decreased by 19.0% to € 71.5 million due to negative currency effects and the inclusion of the Algae Ingredients business. Organic EBITDA excluding one-off items increased by 1.2% in H1 2018.

The Big Highlights. The acquisition of the Algae Ingredients business (TerraVia assets + SB Renewable Oils joint venture) has added an algae fermentation platform to Corbion. In H1 2018, the main focus areas for the algae platform were (1) to bring the SB Renewable Oils production facility and its products to Corbion standards and specifications. Corbion noted that the algae fermentation technology itself is performing as – and in some cases even better than – expected; (2) to restart the demo plant in Peoria (successfully completed in February); and (3) the relocation of the laboratories to a new location in San Francisco. In June Corbion acquired the remaining 49.9% interest in the SB Renewable Oils joint venture (Orindiúva, Brazil).

The second half of 2018 should see the start-up of the Total Corbion PLA joint venture plant in Thailand.

“I am happy to report that we have seen a continuation of improving organic sales growth rates in our Food business segment which returned to growth in Q2 after a challenging period,” comments Tjerk de Ruiter, CEO. “In the first half year, Corbion performed within the sales growth rate target bandwidth of our Creating Sustainable Growth strategy. Margins in Ingredient Solutions remained at a healthy level of around 20%. As expected, our profitability in Innovation Platforms is adversely impacted by the inclusion of the newly acquired Algae Ingredients business which is in an early stage of development. We believe that this platform offers many exciting growth opportunities for Corbion, leveraging our expertise of running industrial scale organic acid operations”.

Jim Lane is editor and publisher  of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

The post Biofuels & Biobased Earnings Roundup: Corbion appeared first on Alternative Energy Stocks.

by Jim Lane

The Top Line. In the Netherlands, Royal DSM (Amsterdam: DSM.AS; US OTC:KDSKF; US ADR:RDSMY) reported a good H1 with organic sales growth in underlying business estimated at 10% and adjusted EBITDA growth of underlying business estimated at 7%, with sales of €4,794 million and adjusted EBITDA of €771 million.

The Big Highlights. Nutrition: an estimated 8% underlying organic sales growth and Adjusted EBITDA growth of underlying business estimated at 6%. Materials: 7% organic sales growth and Adjusted EBITDA growth of 5%. DSM also confirmed its full year outlook 2018, as provided at Q1 2018, and expects an Adjusted EBITDA growth towards 25% and a related higher ROCE growth

Feike Sijbesma, CEO/Chairman DSM Managing Board, commented: “Our ongoing focus on driving above market growth while pursuing efficiency initiatives and maintaining capital discipline, continues to drive our results. Following a strong start to the year, we are very pleased to report very good H1 results, with organic growth above market across all our businesses, and strong underlying Adjusted EBITDA growth despite significant foreign exchange headwinds. During the quarter, we also took another important step in monetizing our partnerships through announcing our exits from Fibrant and DSM Sinochem Pharmaceuticals. Our business conditions remain strong and we reiterate our full year 2018 outlook.

“We are convinced our recent strategy update will create enhanced organic sales growth and continued EBITDA momentum, as DSM evolves further towards a purpose-led, science-based company in Nutrition, Health and Sustainable Living. The step-up in our dividend for 2018, already reflected in the interim dividend, demonstrates our confidence in our future earnings growth.”

Jim Lane is editor and publisher  of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read  Biofuels daily read by 14,000+ organizations. Subscribe here.

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