Global Bioenergies produces a biobased isobutene offering an alternative to petroleum-derived isobutene. The company announces that it has been unable to finance its 2,500-ton plant dedicated to the cosmetics market, in a general context described by the company as highly unfavorable to the financing of industrial firsts.
Global Bioenergies now wishes to focus its activities primarily on the production of Sustainable Aviation Fuel (SAF), with a model of industrial partnerships.
"Despite all our efforts over the last few months, and in the conviction that we have presented the most mature case possible, we have come to the realization that we are unable to finance our plant project. Like all industrial firsts, this project necessarily involves risks at various levels. The prospect of a significant return on investment linked to the cosmetics market should have helped convince private investors to commit to the project, but we have to admit that this is not enough under current political, economic and financial conditions. Today, infrastructure investors are limited to less risky industrial replica projects.1 and projects more directly focused on energy markets", says Samuel Dubruque, Chief Financial Officer of Global Bioenergies.
"Global Bioenergies regrets that this project has not been carried out, and draws the necessary conclusions: the Company will not be carrying out its own plant project in the short or medium term, and will focus all its efforts on a partnership model. The intrinsic value of the process developed by Global Bioenergies is not diminished by the non-realization of this first industrial project designed to meet the needs of the niche cosmetics market. Our main ambition remains to produce much larger volumes of SAF, in order to reduce the carbon footprint of the aviation sector and combat global warming, now an absolute priority. To achieve this, a technology partnership is the best way forward.explains Marc Delcourt, the company's co-founder and CEO.
The technology developed by Global Bioenergies to produce isobutene from natural resources is one of the solutions certified by ASTM, a global standards organization. According to the company, the market for sustainable aviation fuel is now in the start-up phase, and will really accelerate in 2030, when the European mandate increases to 6 % (i.e. around 3 million tons/year) and US production reaches the "Grand Challenge" target of 3 billion gallons per year (i.e. 9 million tons/year).2.
The French biotech company, which aims to contribute to the achievement of these objectives on both sides of the Atlantic, maintains its intention to serve niche markets, particularly cosmetics.
1- Successfully scaling up cleantech in France (website-files.com) - Cleantech for France
2- Sustainable Aviation Fuel Market Outlook - June 2024, SkyNRG
