HOUSTON, TX – October 17, 2012 – Glycos Biotechnologies, Inc. (GlycosBio), an international biochemical company focused on commercializing renewable, high-value specialty chemicals, today announced the appointment of Dr. Wan Abdul Rahaman bin Wan Yaacob to the Company’s Asia Board of Directors.  Dr. Wan has 40 years of experience in the biotechnology and rubber industries including both research and executive level positions.

“We are honored to have Dr. Wan as part of the GlycosBio Asia Board of Directors,” said Richard Cilento, Chief Executive Officer of GlycosBio.  “His in-depth knowledge of rubber and first-hand experience in the industry will be invaluable to GlycosBio as we move closer to completing the construction of our facility in Malaysia and beginning commercialization of GlycosBio’s biologically produced isoprene, Bio-SIM™.  We welcome Dr. Wan to the GlycosBio team and look forward to working with him.”

Dr. Wan is currently the Advisor of Biotechnology Initiatives for the Northern Corridor Implementation Authority in Malaysia.  He is also an Adjunct Professor in the Department of Biochemistry, Biotechnology and Biomolecular Science at the Universiti Putra Malaysia. Prior to his current roles, Dr. Wan was the Executive Vice President of Eco System for the Innovation Agency of Malaysia.

Dr. Wan began his career at the Malaysian Rubber Board where he worked for nearly 32 years holding a variety of positions including Deputy Director General, Research and Development from 2001 – 2005.  From 1998 – 2002, he served as CEO of the Tun Abdul Razak Research Center (TARRC), the UK R&D Company set up by the Malaysian Rubber Board to promote the application of Malaysian rubber and rubber products in Europe.

Dr. Wan’s extensive engagement in the rubber industry led to his appointment in 2004 as Chairman of the International Rubber Research and Development Board (IRRDB), an active group of 16 natural rubber research centers in the world focused on intensifying efforts in R&D for the global rubber industry.

“I am delighted to join GlycosBio’s Board of Directors,” said Dr. Wan.  “I have closely followed the activities of GlycosBio and its management team since I first met them in 2009 and it is a first class organization.  During my tenure as Chief Operating Officer of BiotechCorp, one of my responsibilities was to identify and bring companies to Malaysia in support of the government’s ‘National Biotechnology Policy’ and I’m confident GlycosBio’s microbial strains and related downstream engineering processes will allow the Malaysian rubber and palm oil industries to meet the market demands of the 21^st century.  GlycosBio is exactly the type of company I was looking for and I look forward to the opportunities ahead.”

A Fellow of the Academy of Sciences Malaysia, Dr. Wan is an active member of the Agriculture Committee and he is also the Chairman of the Emerging Technology Committee established by the Academy to advise the Malaysian Government on the related strategic direction for Malaysia.

Dr. Wan joins current GlycosBio Asia Sdn Bhd Board members including Paul Campbell, Chief Science Officer of GlycosBio; Richard Cilento, Chief Executive Officer of GlycosBio; and Walter Burnap, President and Chief Financial Officer of GlycosBio.

About Glycos Biotechnologies, Inc.

Glycos Biotechnologies, Inc. (”GlycosBio”) is an international biochemical company commercializing sustainable chemicals made from renewable feedstocks. Our molecules for the synthetic rubber industry are drop-in replacement chemicals that integrate seamlessly into existing petrochemical supply chains and end-markets offering economic performance and cost benefits greater than those available from conventional petrochemical processes.  GlycosBio’s technology platform upgrades non-food and waste feedstocks into high value specialty and intermediate chemicals. Renewable carbon sources such as waste fatty acids, crude glycerin and non-food sugar streams represent low-value, carbon-rich starting materials that are widely available today. For more information, visit www.glycosbio.com.

October 9-11, 2012
Duke Energy Center
Cincinnati, OH

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“We think we’re approaching the market at the right scale for the opportunity with an initial capacity of 10 kilo tonne per year in 2013. We think southern Malaysia is a good place to start this project. Beside feedstock, we have good market access and an overall sound business environment. There is respect for private property and IP rights and we feel we can safeguard our business interests there,” explained Robert Toker, Vice President, Partnerships and Market Planning, GlycosBio.

The company’s Bio-SIM product will be sold into the growing synthetic rubber market in the region. According to some estimates, including the European Forum for Industrial Biotechnology, the bio-based chemical market is expected to grow at over 20 per cent per year between now and 2017. The total value of the bio-based chemical market is expected to exceed $500 billion by 2017. GlycosBio has plans to develop four production facilities over the next 60 months.

© WOC News

HOUSTON, TX – March 6, 2012 – Glycos Biotechnologies, Inc. (GlycosBio), an international biochemical company focused on commercializing renewable, high-value specialty chemicals, today offered its’ long-range view of the trends that may shape the renewable chemicals market.  Topping the list is the expansion into Asian markets as a reaction to the demand for renewable materials and a result of population growth, economic development and associated resource scarcity.  In addition, GlycosBio asserts that a continued critical analysis of the economic viability of using sugar as a feedstock for biochemical production will take center stage.

With analysts like Lux Research predicting the bio-based materials and chemicals market to grow 140% to $19.7 billion in 2016 with production capacity expanding from 3.8 million tons to 9.2 million tons, the opportunity for biochemical companies to grow operations and begin commercialization is real.

According to Rich Cilento, Chief Executive Officer of GlycosBio, “The renewable chemicals industry is emerging quickly and within this decade is set to take its place alongside existing petrochemical supply chains.  Great strides have been made in the development of platforms and technologies to convert green carbon feedstocks into bio-based chemicals however developing commercial projects is very challenging.  Few companies are ready to take this step, lacking the technical package as well as the financial and project development capability to go to market at commercial scale.  With macroeconomic volatility and uncertainty acutely present and a range high profile set backs this trend will continue.  Expansion opportunities and investment into growing markets like Asia will be required and targeted strategies built on specific biochemical output need to be considered.”

Emerging Trends for Renewable Chemicals

Asian markets will become attractive investment targets

Industrial biotechnology solutions developed on a sugar-based approach have primarily focused on the U.S. and South America natural resource base. The industry’s move to explore new feedstock options outside the sugar value chain, combined with Asian market access and selective government interventions in the form of direct funding for the industrial biotechnology sector will continue to highlight Asia’s profile as an opportunity market.  These trends will also reveal the emergence of several globally competitive bio-based chemical hubs.

Demand for new bio-based chemicals will emerge

As the population expands, economies develop and resource intensity escalates along with the requirements placed on natural and human systems.  People, especially throughout Asia, are upgrading their life style and material well-being.  Perhaps the most prominent example of this is the move from using motorbikes for transportation to the use of automobiles.  Asian consumers are beginning to purchase vehicles for the first time and in turn driving the demand for tires.

The synthetic rubber market is growing rapidly.  According to recent reports from CEIC, Bloomberg and Erste Group Research, there will be around 1.4bn cars on the roads by 2020, 50% more than today.  In China alone, there will be 120 cars per 1,000 inhabitants by the end of the decade, up from 40 cars per 1,000 people today.

To support this market, the need for intermediate chemicals that are polymerized and integrated into tires will increase exponentially, specifically the need for isoprene, a key building block of synthetic rubber.

Comparative advantage of non-sugar feedstock strategy will continue to be understood and accepted

Competition for scarce resources, especially in Asia, will lead to supply constraints on conventional biofuel and biochemical feedstocks such as sugar and starch.  Non-food sustainable carbon sources from existing agricultural processes will be the only sustainable and readily available choices.

In addition, biochemical and biofuel companies will no longer be able to rely on the static assertion that inexpensive biomass sugars will become available at scale and at economic costs.

According to Cilento, “The economic viability of making biologically derived isoprene from sugar fails at 17 cents per pound.  We believe this is will be the new baseline for sugar prices, challenging the financial stability of technologies using sugar.  In addition, generation 2 feedstocks such as cellulosic or biomass sugars tend to price at a slight discount to generation 1 sugar-based feedstocks while commodities typically price at a slight discount to alternatives or substitutes.  We believe this will hold true for generation 2 sugars.  Investors in and companies developing generation 2 or biomass sugars, as well as land holders, will want to maximize their return on investment and this can only be done by pricing generation 2 feedstocks at a nominal discount to generation 1 sugars.”

GlycosBio is on schedule to complete its first commercial facility in 2013.  It will be located in Johor, Malaysia at Bio-XCell, a government-supported biotechnology park with a targeted biochemical output of isoprene.

About Glycos Biotechnologies, Inc.

Glycos Biotechnologies, Inc. (GlycosBio) is an international biochemical company focused on the commercialization of advanced metabolic engineering and microbial strain development which when combined with the development of related engineering processes convert multiple, low-value feedstocks into a range of high value sustainable chemicals. By designing a portfolio of differentiated microorganisms and related engineering processes, GlycosBio’s bioconversion technology produces a diverse set of chemicals, including substitutes for fossil fuel derived petrochemicals, meeting the growing global demand for clean, environmentally safe biochemicals.  For more information, visit www.glycosbio.com.

Media Contact:
Suzanne Tormollen
Atingo Public Relations
281.785.1280
suzanne@atingo.com

I’ve been in Orlando since Saturday for the 2012 National Biodiesel Conference & Expo. If there’s any readers who don’t know, I’ve not only been the editor of Biorefining Magazine since the fall of 2010, and its biannual supplement Algae Technology & Business launched in spring 2011, but I’ve also been editor of Biodiesel Magazine since 2009 and writing for Biodiesel Magazine since 2005.

Days before coming down to Orlando I realized I was out of my Biodiesel Magazine business cards, so I brought a stack of Biorefining Magazine business cards. I wasn’t too worried, considering this was the 7th National Biodiesel Conference in a row that I’ve been to, and many people at the conference affiliate me with our biodiesel product line.

What pleasantly surprised me was, as I passed out Biorefining Magazine business cards to biodiesel acquaintances and new faces, how many people were familiar with Biorefining Magazine and subscribe to it regularly, or read it online and receive our weekly newsletter. I thought I would have to explain to everyone what it is and why my business card didn’t say Biodiesel Magazine on it, but that, thankfully, wasn’t the case.

While the ethanol and biodiesel industries have little in common other than both being renewable fuels, that’s not the case with biodiesel and advanced biofuels and biobased chemicals. After all, biodiesel is the U.S.’s first commercially available advanced biofuel. The coproduct from biodiesel production is glycerin, which many biorefining firms such as GlycosBio are using to produce biobased chemicals.

These are just a few of the many items that the biodiesel and biorefining space have in common. Here at the conference I asked a few representatives of one of the big chemical companies that supplies sodium methylate catalyst to biodiesel producers if they’re keeping an eye on the biobased chemical markets. I asked because I have not heard of any news from this company about them getting into the market, as many other chemical companies are. Their response was, they can’t afford not to.

US-based biochemical producer GlycosBio has begun building its first commercial facility in southern Malaysia.

The plant will be used to produce anhydrous ethanol and targeted biochemicals based on demand.

GlycosBio’s bacterial fermentation platform can convert a variety of renewable, non-food feedstocks including crude glycerin from southeast Asia and palm oil derivatives from the region into higher value biochemicals, such as Bio-based Synthetic Isoprene Monomer (Bio-SIM).

Isoprene is a critical component of synthetic rubber and is globally in short supply.

‘We think we’re approaching the market at the right scale for the opportunity with an initial capacity of 10kT/year in 2013 – we can go bigger in the future,’ explains Robert Toker, the company’s WP for partnerships.

‘We’re looking ar a 19 month phase one build and a mid-2013 commissioning window. We think southern Malaysia is a good place to start this project. Aside from feedstock, we have good market access and an overall sound business environment. There is respect for private property and IP rights and we feel we can safeguard our business interests there.’

The company’s Bio-SIM product will be sold into the growing synthetic rubber market in the region. As Toker explains: ‘The tyre market supply chain drives the isoprene monomer market. The demand fundamentals are sound with new cars and tires on the road in emerging markets such as China, Indonesia and India and significant supply constraints. The petrochemical complex at Jurong Island in Singapore is a stone’s throw from our location and we can touch all of Asia from our facility.

According to some estimates, including the European Forum for Industrial Biotechnology, the bio-based chemical market is expected to grow at over 20% per year between now and 2017. The total value of the bio-based chemical market is expected to exceed $500 billion (€ 385 billion) by 2017.

GlycosBio has plans to develop four production facilities over the next 60 months.

Houston-based biochemical firm Glycos Biotechnologies Inc. has selected Toyo Engineering & Construction Sdn Bhd (Toyo Malaysia) to provide engineering, procurement and construction services for its future commercial-scale industrial biochemical production facility, currently in development, in Johor, Malaysia. GlycosBio’s facility will be constructed in Bio-XCell, a government-backed biotechnology park that’s focused on the advancement of industrial and healthcare biotechnology in Malaysia.

According to Richard Cilento, CEO of GlycosBio, site work is underway in preparation for the arrival of initial pieces of equipment by first quarter 2012. Construction of the facility is scheduled for completion by second quarter 2013.

GlycosBio’s commercial facility is being developed in several phases with the first having an annual production rate of approximately 10,000 metric tons (22 million pounds) anticipated to be reached by 2014 with a subsequent scale-up to 30,000 metric tons (66 million pounds) by 2014, according to Cilento. The company’s target product, isoprene, will be derived from crude glycerin sourced from the local Malaysian palm-based biodiesel market and “other distressed oils,” Cilento said, that are either imported or created in country. Isoprene is a key monomer that can be used in the synthetic rubber market.

“Because we’re in Malaysia there’s a large latex [rubber] industry there, as well as Singapore and China, where our product will be going to higher value synthetic rubber products such as latex gloves, medical gloves and other specialty rubber applications,” Cilento told Biorefining Magazine.

While isoprene is the company’s target building block, GlycosBio will initially utilize the facility to validate the ability to produce ethanol from crude glycerin. The company then plans to further demonstrate its flexible technology platform at commercial scale using a range of feedstocks, including fatty acids. Full production of GlycosBio’s facility is expected to follow with the production of isoprene from crude glycerin.

When operational, according to Cilento, it’s anticipated that approximately 10,000 metric tons (22 million pounds) of ethanol would be produced from about 20,000 metric tons (44 million pounds) of crude glycerin at the new Bio-XCell industrial park facility.

“Big picture, the strategy in our company is we use a nonsugar, nonfood-based feedstock,” Cilento said. “We’re not in the Midwest and we’re not in Brazil. As a result of that strategy, we’re uniquely able to be in Asia because a lot of the byproducts both from the palm oil industry (fatty acids) as well as from the biodiesel industry (crude glycerin) are big products in Asia.”

Cilento added that locking in Toyo as its EPC on the new facility will ensure the company stays ahead of its competitors within the biorefining space.

“Another strategy is getting commercial as quickly as possible,” he said. “That’s why this plan is so important for us because we think many of our competitors continue sort of the science experiment and they’re not able to either finance or see their way to a commercial site. Early 2013 is a pretty short timeframe compared to most peers, even public peers at this point.”

GlycosBio first announced its intention to expand operations in Malaysia in 2010 through its partnership with Bio-XCell and is the first U.S.-based company to begin construction at the industrial park in Johor. Once online, Cilento said the future facility will serve as the prototype for subsequent commercial biorefineries that can be deployed in other regions of the world.

“Our objective is to deploy another production plant in Asia—in addition to this one—within the next four to five years, as well as two plants in North America,” Cilento said.

In addition to the Bio-XCell project, GlycosBio is working closely with BiotechCorp, the national agency set up by the Malaysian government for the development of biotechnology in Malaysia. The company also earned BioNexus status earlier in February, which is a recognition awarded by the Malaysian government to qualified companies that participate in and undertake value-added biotechnology activities in Malaysia.

HOUSTON, TX – December 12, 2011 – Glycos Biotechnologies, Inc. (GlycosBio), an international biochemical company focused on commercializing renewable, high-value specialty chemicals, announced it has chosen Toyo Engineering & Construction Sdn Bhd (Toyo Malaysia) to provide engineering, procurement, and construction (EPC) services for its industrial biochemical production facility located in Johor, Malaysia.

GlycosBio’s commercial facility will be constructed in Bio-XCell, a government-supported biotechnology park focused on the advancement of industrial and healthcare biotechnology in Malaysia.  Construction of GlycosBio’s plant is scheduled for completion in Q2 2013.

GlycosBio’s President, Walt Burnap, joined executives from Toyo and Bio-XCell including Rizatuddin Ramli, CEO of Bio-XCell and Toji Kawakami, Managing Director Toyo Malaysia at an event on December 6^th in Malaysia during which they disclosed the details of the new relationship.

“TOYO is known and respected for its expertise in building facilities dedicated to the production of petrochemicals and biochemicals and has an impeccable track record of success,” said Burnap.  “We are confident that GlycosBio’s facility will be built with the highest level of quality to aid us in our goal of supporting Southeast Asia’s synthetic rubber market.  The contract award to TOYO represents another milestone in GlycosBio’s path toward becoming a leader in the production of biochemicals.”

GlycosBio’s commercial facility is being developed in several phases with a production rate capacity of up to 30,000 metric tons per year being reached by 2014 with a subsequent scale-up to 90,000 metric tons. Targeted biochemical for GlycosBio’s plant include isoprene, a key building block molecule used in the synthetic rubber market. GlycosBio will initially utilize the facility to validate the ability to produce industrial ethanol from crude glycerin. The company will then further demonstrate its flexible technology platform at commercial scale using a range of feedstocks including fatty acids.  Full production of GlycosBio’s facility will follow with the production of isoprene from low-value renewable feedstocks readily available in Malaysia.

“We are pleased to have the opportunity to work with GlycosBio on the construction of their biochemical facility in Malaysia,” said Kawakami.  “TOYO as a Global company has more than 50 years of experience in engineering and constructing facilities for clients across a wide range of industries around the world. As we do for all clients, TOYO will design, build and commission for GlycosBio a quality state-of-the-art facility always emphasizing health, safety, security and the environment.  We envision this project will be delivered on time with optimum cost as we have successfully done in many of our previous projects and completed cost efficiently.”

“GlycosBio will play a significant role in strengthening our value chain for industrial bioprocess and biomanufacturing within the Bio-XCell ecosystem. Apart from human capital development and expanded investment opportunities, its technology will be a critical contributor to Malaysia’s near and long-term industrial and biotechnology goals,” said Ramli.

GlycosBio first announced its intention to expand to Malaysia in 2010 through its partnership with Bio-XCell and is the first US-based company to begin construction at the industrial park in Johor, Malaysia.  GlycosBio is also working closely with BiotechCorp, the national agency set up by the Malaysian government for the development of biotechnology in Malaysia. GlycosBio also received BioNexus status in 2011, a recognition awarded by the Malaysian Government to qualified companies that participate in and undertake value-added biotechnology activities in Malaysia.

About Glycos Biotechnologies, Inc.

Glycos Biotechnologies, Inc. (GlycosBio) is an international biochemical company focused on the commercialization of advanced metabolic engineering and microbial strain development which when combined with the development of related engineering processes convert multiple, low-value feedstocks into a range of high value sustainable chemicals. By designing a portfolio of differentiated microorganisms and related engineering processes, GlycosBio’s bioconversion technology produces a diverse set of chemicals, including substitutes for fossil fuel derived petrochemicals, meeting the growing global demand for clean, environmentally safe biochemicals.  For more information, visit www.glycosbio.com.

About Toyo Engineering & Construction Sdn Bhd

Toyo Engineering & Construction Sdn Bhd (Toyo Malaysia) is a leading and experienced EPCC contractor providing solutions to meet the demands of our clients in the areas of petrochemical, chemical and general industries in Malaysia.

From Basic and Front End engineering to undertaking the entire lifecycle of the project, we utilize our strong technical capabilities and abundant experience as an engineering contractor.  Our philosophy is to meet our client’s complete satisfaction as we strive to create value together with our clients and to grow and prosper with them.

At Toyo Malaysia, we maintain the flexibility to accommodate to our clients’ requirement and we strive to improve efficiency and productivity by implementing best practices in the industry.  We ensure that safety is our highest priority in all projects we undertake.

With our MS ISO 9001:2008 & OHSAS 18001:2007 certifications, we maintain high values and practice our corporate OSH & QMS policies. We have coveted numerous recognition and awards as a result of maintaining an excellent safety record and successfully adherence to strict policies.  Since year 2000, Toyo Malaysia has successfully completed all our projects without LTI.

About Bio-XCell

Bio-XCell is a biotechnology park and ecosystem hub for industrial and healthcare biotechnology, with a focus on manufacturing and R&D. Developed by Malaysian Bio-XCell Sdn Bhd, a joint venture company between BiotechCorp and UEM Land, the park is slanted to be the new regional biotech hub of Asia. Capitalising on value propositions of both its shareholders, Bio-XCell provides comprehensive infrastructure, services, incentives and benefits to drive the growth for the biotechnology sector.

Strategically located in Nusajaya, Iskandar Malaysia, the resource-rich state of Johor, Bio-XCell provides global connectivity through the network of five seaports and two international airports, all within 59kms. For information or leasing inquiries, log on to www.bio-xcell.com.

Media Contact:

Suzanne Tormollen
Atingo Public Relations
(281) 785-1280
suzanne@atingo.com

Specifically, synthetic biology start-ups – which develop novel organisms ranging from Escherichia coli (E. coli) to yeast – have attracted the most funding since 2004: $1.84 billion or 28.4% of the total. Investment dipped just 16.7% from $436.5 million in 2007 to $358.3 million in 2009, and investments actually peaked last year at $447.0 million, representing 25% growth over 2009. Driving this growth were companies with novel and flexible technologies to make both fuels and chemicals, such as Solazyme ($60 million Series D), LanzaTech ($18 million Series B), and LS9 ($30 million Series D). Since those 2010 transactions, Solazyme and several other venture-backed companies in the space have launched successful IPOs (Client registration required).

But investors shouldn’t ignore other flexible technologies. Investment in thermochemical processes (pyrolysis, gasification, torrefaction) did not trail far behind synbio. Technologies in this category account for 43.3% of the funding thus far in 2011. Representative companies include Virent and Elevance, whose catalytic processes produce a range of fuels, rubbers, oils, and plastics. Technologies capable of using agricultural, solid, or gaseous waste, such as LanzaTech, GlycosBio, and Ignite Energy, present further opportunities for investors.

There are many factors that go into building a successful biorefining operation. According to Martha Hilton, a commercial development leader at Segetis Inc., the formation of effective partnerships is one of the most important. “If you don’t have partnerships, you are going to die,” she said.

Segetis is a green chemistry company that produces chemical building blocks. “In our pipeline we do have proof-of-concept actual molecules—and probably for the most part technology—either in the submitted, or being submitted, phase with surfactants, lubricants, polyols, and thermo plastics.” However, the company’s first focus has been on levulinic ketal esters that can readily be extended with alcohols, esters and amines.

“One of the things we have done is we have partnered on both ends of this,” Hilton said, from how to use wood pulp feedstock to produce levulinic acid that meets the specific needs of end users, to those who need a biobased lubricant that meets certain performance or end-use requirements. “We partner with that,” Hilton said. “That’s how we stay alive, with joint development agreements.”

One area of focus for Segetis is plasticizers. ”We have leaned heavily on the director of marketing to keep our molecule vendors and our bright R&D folks focused on what can make money,” Hilton continued. “We all know a technologically brilliant widget that you can’t sell isn’t going to keep a company sustained.” The combination of existing phthalate producers consolidating, as well as the fact that phthalates themselves have been under scrutiny, has opened up an opportunity. This is especially true, Hilton said, since there is been growth in the biopolymer industry.

Hilton spoke about her company and its operations at the International Biorefining Conference & Trade Show in Houston Sept. 15. Rob Toker, vice president of partnerships and market research at Glycos Biotechnologies Inc., and David Demirjian, president and CEO and co-founder of zuChem Inc., also spoke on a panel titled “Refining the Market for Biobased Chemicals” with Hilton.

“Geography really is destiny,” Toker said. His company has operations both in Houston and Malaysia. Houston is a great place to do business for us, he said. There is great access to human capital, and engineering talent that comes out of the downstream petrochemical community and the Texas medical center. He said Malaysia is also a great place to operate. “We think [the region] has great market access, great access to human capital, and we are very pleased with the business environment in Malaysia,” he said. “There is a respect for intellectual property and there is a strong regulatory environment and a strong legal environment that we benefit from. There is labor flexibility, which we appreciate, an obviously there is a natural resource base.”

While many companies in the renewable chemicals space are focused on the use of sugar or starch as feedstock, GlycosBio is not. Rather, the company’s Malaysia project is largely focused on the use of glycerin coming out of the regional palm industry. “The Bio-Xcell project is the project in southern Malaysia,” Toker said. “We have a phase one that is in construction right now…and there is phase two expansion that we are actively marketing to finance partners and strategic partners.”

GlycosBio aims to produce monomers for the synthetic rubber industry. “We are committed to isoprene,” Toker said. “We think isoprene is a terrific opportunity. Isoprene goes into all tires…On the supply side, natural latex rubber is very expensive…compared to historic trends, and we see that as persisting. That’s why we are in Asia. That is where the demand is. That is where the capital investments are.”

Demirjian’s company, alternatively, is focused on the development of glycochemicals that can be manufactured as coproducts to biofuel production, such as ethanol. The chemicals targeted by zuChem will serve the human health and nutrition markets.

zuChem is specifically targeting xylitol production. Xylitol is a specialty product that can be used to sweeten gum and confectionary products. “Xylitol is part of the $1.5 billion polyol market,” Demirjian said. “Sorbitol dominates this market because it is so cheap to produce.”

Xylitol is currently made through a chemical hydrogenation process, using pure xylose as feedstock. The problem is that pure xylose is rather limited in supply, and is very expensive. “What zuChem’s bioprocess does is…takes hemicelluloses…and does a fermentation to get xylitol,” Demirjian said. “So, we have a less expensive starting material and a pure product at the other end.”