Periodic Reporting for period 1 - ENZEYE (Bringing automated, real-time process control into the starch-based industry)
Période du rapport: 2019-01-01 au 2019-03-31
The industrial processing of starch to produce a myriad of products, including beer and bioethanol, goes through a first stage, in which the starch is extracted from cereals to be broken down into long chains of sugars by the action of enzymes. In a second stage, the sugars are fermented into ethanol in the presence of yeast. Nowadays there are no analytical tools available at industrial facilities providing detailed and real-time information on the concentration of sugars and other intermediates throughout the production of beer and bioethanol. In consequence, it is still not possible to monitor and optimise in real-time the different production stages, what turns into high production costs due to an excessive use of enzymes and heat, and low profit margins due to limited production yields. At Specshell we developed ENZEYE, the first inline control system to provide continuous and real-time information on the degradation of starch and the formation of intermediates throughout the production of the more than 600 products derived from starch. Our uniqueness is based on (1) the adaptation of mid-IR technology to the industrial setting, which enables for the first time to identify the dissolved species directly as the product flows, and (2) our proprietary chemometric libraries, converting the IR-absorption spectra data into parameters of interest for plant operators in real-time. After having successfully tested our solution at breweries, we decided to increase the versatility and robustness of our solution to introduce it in new markets.
The execution of this Feasibility Study has enabled us to assess the best business opportunities among the multi-billion starch industry. We have identified the bioethanol industry as the most challenging and promising sector to target. Adapting our technology to the needs of bioethanol producers will result in the most versatile and robust analyser fulfilling the demands from any other sector. We have planned a technical roadmap to incorporate several innovative components into our solution. Furthermore, we have designed an ambitious commercial and dissemination strategy that will boost the market uptake of the resulting analyser. The financial forecast carried out has also confirmed this great business opportunity.
The execution of this Feasibility Study has enabled us to assess the best business opportunities among the multi-billion starch industry. We have identified the bioethanol industry as the most challenging and promising sector to target. Adapting our technology to the needs of bioethanol producers will result in the most versatile and robust analyser fulfilling the demands from any other sector. We have planned a technical roadmap to incorporate several innovative components into our solution. Furthermore, we have designed an ambitious commercial and dissemination strategy that will boost the market uptake of the resulting analyser. The financial forecast carried out has also confirmed this great business opportunity.
The main actions taken and conclusions are:
Technical Viability
1. Update – current stage of development and re-definition of objectives. We have verified with our prospective customers (bioethanol producers) the adequacy of the technical actions planned. This has allowed us to incorporate their demands into our roadmap ensuring in this way the acceptance of our solution in the sector.
2. Detailed roadmap-to-market (Phase II work plan). We have organised the end-of-development of our solution in 7 WPs, to be carried out in a period of 18 months. We have assessed the risks associated to all the tasks within the 7 WPs and already defined contingency actions to minimise their impact.
3. Preparation of the Industrial Validations to guarantee a successful execution. The pilot tests to validate our solution in real environment have been planned in detail. We have already engaged all external partners that will participate in these validations, including end users, suppliers and subcontractors , and they have committed to the working calendar defined.
Market Feasibility, FTO and IP
1. Detailed global market analysis & Identification of further business opportunities. We have examined in detail the structure of the overall starch processing industry to identify the best business opportunities. This has allowed us to organise a sequential market introduction of our solution, focusing first in breweries and bioethanol production plants. We have also researched process control technology used to monitor the production lines and analyse our competitors.
2. In-depth analysis of the target market. We have carried out a detailed analysis of our two primary target markets, including size, tendencies, and biggest players. With brewers, we confired the business opportunity arising from the set-up of a database, as planned within our roadmap. We have analysed in detail current situation of bioethanol producers, paying special attention to the new European policy framework.
3. IP actions, FTO and certifications. We foresee that two new patents will be filled in as a result of this project. The FTO analysis discarded any conflicts and verified the relevance of early IP actions to block competence from bigger companies. We have also identified the required certifications for the product resulting from this project.
Commercialization Plan
1. Definition of the exploitation strategy. Well defined commercialisation plan for the period 2021-2025 in line with the new target market and taking into account the singularities of both sectors. Very ambitious dissemination plan including permanent contact with our end users as well as the maximisation of the impact of the industrial validations planned within this project.
2. Communication & Dissemination Plan. Confirmation of the potential of the industrial validations as the most relevant dissemination action. Scan of all relevant events and conferences of both beer and bioethanol sectors and selection of the most relevant ones.
3. Up-scaling of the production. Revision of the supply chain and first contacts with alternative companies. Well-defined plan for extending our internal production capacity, including a hiring proposition, to reach 100 units at the end of 2021.
Business Plan Elaboration
1. Revision of the pricing policy – revenue streams. Definition of new revenue streams including after sales services and exploitation of our Database. Assessment of tailored sales offers to key customers to increase the number of units sold per customer.
2. Update of financial forecast. Sales projections under three different scenarios showing a great business opportunity for our product.
3. Evaluation of investment (expected Phase II budget). Detailed budget for the Phase II including personnel costs, direct costs and subcontractors.
Technical Viability
1. Update – current stage of development and re-definition of objectives. We have verified with our prospective customers (bioethanol producers) the adequacy of the technical actions planned. This has allowed us to incorporate their demands into our roadmap ensuring in this way the acceptance of our solution in the sector.
2. Detailed roadmap-to-market (Phase II work plan). We have organised the end-of-development of our solution in 7 WPs, to be carried out in a period of 18 months. We have assessed the risks associated to all the tasks within the 7 WPs and already defined contingency actions to minimise their impact.
3. Preparation of the Industrial Validations to guarantee a successful execution. The pilot tests to validate our solution in real environment have been planned in detail. We have already engaged all external partners that will participate in these validations, including end users, suppliers and subcontractors , and they have committed to the working calendar defined.
Market Feasibility, FTO and IP
1. Detailed global market analysis & Identification of further business opportunities. We have examined in detail the structure of the overall starch processing industry to identify the best business opportunities. This has allowed us to organise a sequential market introduction of our solution, focusing first in breweries and bioethanol production plants. We have also researched process control technology used to monitor the production lines and analyse our competitors.
2. In-depth analysis of the target market. We have carried out a detailed analysis of our two primary target markets, including size, tendencies, and biggest players. With brewers, we confired the business opportunity arising from the set-up of a database, as planned within our roadmap. We have analysed in detail current situation of bioethanol producers, paying special attention to the new European policy framework.
3. IP actions, FTO and certifications. We foresee that two new patents will be filled in as a result of this project. The FTO analysis discarded any conflicts and verified the relevance of early IP actions to block competence from bigger companies. We have also identified the required certifications for the product resulting from this project.
Commercialization Plan
1. Definition of the exploitation strategy. Well defined commercialisation plan for the period 2021-2025 in line with the new target market and taking into account the singularities of both sectors. Very ambitious dissemination plan including permanent contact with our end users as well as the maximisation of the impact of the industrial validations planned within this project.
2. Communication & Dissemination Plan. Confirmation of the potential of the industrial validations as the most relevant dissemination action. Scan of all relevant events and conferences of both beer and bioethanol sectors and selection of the most relevant ones.
3. Up-scaling of the production. Revision of the supply chain and first contacts with alternative companies. Well-defined plan for extending our internal production capacity, including a hiring proposition, to reach 100 units at the end of 2021.
Business Plan Elaboration
1. Revision of the pricing policy – revenue streams. Definition of new revenue streams including after sales services and exploitation of our Database. Assessment of tailored sales offers to key customers to increase the number of units sold per customer.
2. Update of financial forecast. Sales projections under three different scenarios showing a great business opportunity for our product.
3. Evaluation of investment (expected Phase II budget). Detailed budget for the Phase II including personnel costs, direct costs and subcontractors.
ENZEYE, the first inline control system to provide continuous and real-time information on the degradation of starch and the formation of intermediates (sugars and organic acids) and final product (ethanol) throughout the beer and bioethanol production processes. The first version of our product has been tested in European, African and Mexican breweries and reported savings amounting €1million annually to each plant, thanks to a smarter dosage of raw materials and enzymes, improved temperature control, and increased conversion yields. Our first target market has been the brewing sector: ENZEYE enables the optimisation of their equipment and facilitates the production of batches of beers in a fast manner and immune to fluctuations of raw materials’ quality. Now the focal point is to introduce ENZEYE to the bioethanol sector, which has a critical role to play in the energy transition towards a low-carbon European transport sector. A highly efficient bioethanol production reduces CO2 emissions by more than 70% compared to fossil fuels. At Specshell we aim at becoming a key enabler in positioning Europe as a technological leader in the sustainable production of bioethanol.
ENZEYE will increase the productivity of large breweries by 5-15% equivalent annual revenues in the range of €10-35 million. Bioethanol plants operate with much smaller margins: ENZEYE has the potential to increase the annual productivity by 1-2% what accounts for €1-10 million extra revenues. Five years after market uptake, by 2025, we aim at having 750 ENZEYE units installed Europe, US and beyond. ENZEYE will also positively impact our company reporting revenues surpassing the €65 million in 2025, the 5th year after market uptake, and enabling the creation of up to 150 new positions.
ENZEYE will increase the productivity of large breweries by 5-15% equivalent annual revenues in the range of €10-35 million. Bioethanol plants operate with much smaller margins: ENZEYE has the potential to increase the annual productivity by 1-2% what accounts for €1-10 million extra revenues. Five years after market uptake, by 2025, we aim at having 750 ENZEYE units installed Europe, US and beyond. ENZEYE will also positively impact our company reporting revenues surpassing the €65 million in 2025, the 5th year after market uptake, and enabling the creation of up to 150 new positions.