S191: The commercialization agenda for next generation biofuels

The first wave of next generation (next gen) biofuel companies have completed IPOs (NASDAQ: CDXS, AMRS, GEVO, SZYM, KIOR, LUCA)  and have raised capital for establishing commercial operations.  These companies differ from the first generation ethanol companies in several important ways. Next gen companies have strong intellectual property portfolios that protect their processes; they can use feedstocks other than starch, sugar or plant oil; and they have diversified product streams that allow for rapid commercialization of lower volume, higher priced products such as specialty chemicals for the nutrition, personal care and surfactant markets.  Many are targeting “drop-in fuels” that are essentially gasoline/jet fuel replacements rather than additives.  Finally, all of these companies have formed numerous partnerships with large and global “channel to market partners”.   As commercialization continues what can we learn from the initial successes about how future companies will develop ?  What are the roles for venture investment and when and how should emerging companies think about capital formation ?  Is this just about biofuels or is there a much broader agenda of sustainability and value at play ?  These questions will be discussed in the context of reviewing emerging strategies to the commercialization of next gen biofuels.