Blue planet case study spreads

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BLUE PLANET

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A BIOMIMICRY CASE STUDY The commercialization story behind the cement production process that mimics coral reefs by using carbon as a building block

Published by Synapse by Biomimicry 3.8 Written by Biomimicry Business Intelligence

© 2017 Biomimicry Advisory Services & Biomimicry 3.8. All rights reserved.


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BIOLOGY

DESIGN

Coral reefs capture carbon dioxide from seawater and combine to create calcium carbonate.

Blue Planet carbon capture technology installed at Big Bend Power Station in ​Tampa, FL.

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Forward Biomimicry for Innovative Business Opportunities Biomimicry is not itself a product but a process, drawing on strategies observed in natural organisms and practices in order to spark innovation.

Biomimicry (from bios, meaning life, and mimesis, meaning to imitate) is a scientif ic design discipline that seeks sustainable solutions by emulating nature’s time-tested patterns and strategies. The core idea of Biomimicry is that nature,

08

CONTRIBUTORS & SUPPORTERS

06 13

EXECUTIVE SUMMARY

15

INDUSTRY OVERVIEW

19

COMPANY OVERVIEW

23

COMMERCIALIZATION PROCESS & STRATEGY

34

FINANCIAL STRATEGY

36

FORWARD

after 3.8 billion years of research and development, has already developed solutions to many of the problems facing industry, government and agriculture. Such problems include packaging, transportation, energy production, non-toxic chemistry, carbon sequestration, and crop production.

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CONCLUSION

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TEXT PLACEHOLDER

Contributors & Supporters RESEARCH AND EDITING Jacques Chirazi, Managing Director & Senior Editor, Biomimicry Advisory Services Constanza Jozami, Editor Gabriel Canale, Editor Cypress Lampe, Research Analyst Sierra Robbin, Research Analyst Simone Gagnon, Research Analyst Luca Vivo, Research Analyst

ADVISORS Rosibel Ochoa, Executive Director, UC San Diego von Liebig Entrepreneurism Center Stuart Valentine, CEO, Centerpoint Investing Beth Rattner, Executive Director, The Biomimicry Institute Hazel Henderson, CEO, Ethical Markets Certified B Corp Katherine Collins, CEO HoneyBee Capital Jamie Brown Managing Partner, Biomimicry Switzerland Douglas Kot, Senior Sustainability Professional, DNV GL Beth Brummitt, CEO, Brummit Energy Nicole Miller, Managing Director, Biomimicry 3.8

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Executive Summary Blue Planet is a California-based company that improves cement-production processes by producing emission control equipment that

TECHNOLOGY

captures the CO2 emissions released from

BENEFITS

cement plants and electrical generation plants. Their patented process mimics the chemical elements of coral’s building techniques, in which carbon dioxide and seawater combine to

APPLICATIONS AND

The applications of this technology are perfectly tailored to the industry’s localized plants and supply chains, and will be increasingly relevant as the

create calcium carbonate. Traditional methods

already booming concrete (and

of cement production require large amounts

therefore limestone aggregate)

of limestone, among other raw materials, but

industry is set to grow further in the future. Blue Planet

Blue Planet technology eliminates the need

customers will minimize the

for quarry mining because it taps into the CO2

for concrete production and

waste typically generated by industrial plants. By emulating a natural process that takes place in Earth’s oceans, Blue Planet unlocks a vast supply

amount of limestone needed while minimizing the amount of CO2 released as a result of industrial processes.

of raw limestone and can produce a calcium carbonate for a variety of applications. 12 | SYNAPSE.BIO

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+ =

SAND

GRAVEL

CRUSHED ROCK

OTHER AGGREGATES

CEMENT

WATER

CONCRETE

Industry Overview MARKET FOR CONCRETE With the global market for

In most areas concrete takes

worth an estimated $1 trillion

advantage of inexpensive local

US dollars, concrete is the

materials (sand, gravel, and

second most consumed and

water) and requires relatively

traded commodity on Earth,

small amounts of cement and

cling Concrete, retrieved from:

aggregates held together in a rocklike mass with a paste

after water1 . In the global

reinforcing steel, which may

http://www.wbcsd.org/Pages/

of cement and water. Possibly the most important material

market, Chinese companies

have to be shipped from other

EDocument/ EDocumentDetails.

parts of the country or inter-

aspx?ID=11133&NoSearchContext-

available for construction is reinforced concrete, which is

account for about half of total demand. Excluding China,

nationally. Aggregates make

concrete combined with steel. It is used in one form or another

there are an additional 6 multi-

up between 70-80% of the

for almost all structures, great or small.

national corporations that

volume of concrete and 80 to

together account for about 40%

95% of the volume of Asphaltic

of demand, with the remaining

Concrete . Building codes

http://www.nrmca.org/concrete/

portion accounted for by local

around the world require that

data.asp

companies. In the U.S., the

the aggregate shall consist

service life. A special feature of concrete is its ability to be

market value of the ready-mix

of “hard, strong, durable�

cast into an extraordinary variety of shapes from simple slabs,

concrete industry is estimated

particles. Weak particles are

at approximately $30 billion2.

not acceptable and should not

Concrete is a mixture of sand, gravel, crushed rock, and other

Concrete is a low-maintenance, low-cost material, with a long

beams, and columns, to great arches and shells.

3

1 World Business Council for Sustainable Development. Recy-

Key=true 2 National Ready Mix Concrete Association. Ready Mixed Concrete Production Statistics, retrieved from:

3 Limestone Products, image retrieved from: http://geology.com/ usgs/limestone/

be used where the strength of the concrete is a primary requirement.

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INDUSTRY OVERVIEW

INDUSTRY OVERVIEW

LIMESTONE AS A DOMINANT AGGREGATE MATERIAL Since aggregates are less

flint, greywacke, and the like.

for use in construction.

using limestone as the main

expensive than cement, it is

About 80% of aggregates used

Because of its range of useful

aggregate are able to produce

desirable to use as much of

in the concrete industry come

physical properties, it is easily

specimens with compressive

them as possible. Both fine

from sedimentary rocks.

adapted for use in a variety

strengths up to 5,000 psi

of structural and architectural

(35MPa). Because limestone

aggregates (sand) and coarse aggregates (gravel or crushed

Limestone, as used by the

applications. In the United

aggregate is normally

stone) are used. Natural gravel

minerals industry, is any rock

States of America, limestone

comprised of 100% crushed

and sand are usually dug

composed mostly of calcium

has been used extensively

rock fragments, an increased

or dredged from a pit, river,

carbonate (CaCO3). Limestone

in building construction and

amount of surface area is

lake, or seabed. Breaking

is used to produce Portland

has demonstrated excellent

available for the cement and

down quarry rock, boulders,

cement, as aggregate in

durability to normal weath-

aggregate to bond more effec-

cobbles, or large-size gravel

concrete and asphalt, and in

ering, and is a tried and proven

tively. Limestone aggregate is

produces crushed aggregate.

an enormous array of other

building material. Hard, durable

also generally suitable for use

Sedimentary rocks are the most products such as glass, soil

limestone aggregate is capable

in Asphaltic Concrete and is

cost effective of all rocks used

conditioner, white pigments,

of producing concrete of

economically feasible when the

for aggregate in the concrete

medicines, and cosmetics.

medium compressive strength

absorption rate is relatively low

industry: within this family of

Limestone is one of the most

as used in normal struc-

(less than 2.5%).

rocks we can find natural sand,

common types of rock in the

tural applications. Generally,

gravel, sandstone, limestone,

world and is widely exploited

concrete mixtures made

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Sample of Natural Soft Pumice & Recycled Concrete Substrate for Carbonate Coating Process

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The largest biological structure on Earth is the Great Barrier Reef. It is a mechanism that grows upon itself using the time-tested technique of biomineralization: the process by which organisms produce minerals to harden and expand upon existing tissues.

Company Overview BIOMINERALIZATION EXPERT AND PROFESSOR IN THE BIOCHEMICAL ENGINEERING DIVISION AT STANFORD, DR. BRENT CONSTANTZ REALIZED HE COULD REPLICATE THE NATURAL PRODUCTION OF ARAGONITE. MIMICKING MARINE BIOMINERALIZATION,

For 750 million years, the polyps of ocean ecosystems have used carbon dioxide and saltwater chemistry to produce aragonite in the

CONSTANTZ AND HIS TEAM COMBINED CO 2 WASTE WITH AN ALKALINE SOLUTION OF OSMOTIC ORIGIN TO PRODUCE CARBONATES. THESE CARBONATES ARE SIMILAR TO THEIR AQUATIC COUNTERPARTS, AS THEY ARE COMPRISED OF CALCIUM CARBONATE, OR LIMESTONE.

form of coral or shells4. As it turns out, these

Constantz’ research has

efficient as well; traditional

production; pollution from

natural structures have the same limestone-

profound implications for the

cement plants’ carbon dioxide

transportation is minimized and

modern construction industry.

by-product would be replaced

quarry land is protected from

With an effectively unlimited

with oxygen and fresh water

the environmental impacts of

supply of carbon dioxide from

as by-products . Not only does

mining.

industrial processes such as

adopting this method of on-site

power plants, the quantity of

carbon sequestration mitigate

potential limestone product

the amount of CO2 emissions,

is also effectively unlimited.

it creates ripples that affect the

The process becomes more

traditional method of aggregate ing-and-resources/ip-motion/

based properties as concrete.

4 Interview with Brent Constantz. “Brent Constantz Builds Cement Like Corals Do", retrieved from: https://www.youtube.com/watch?v=L-hST0dKMwY8

5

5 United States Patent and Trademark Office. Calera, retrieved from: http://www.uspto.gov/learncalera

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COMPANY OVERVIEW

COMPANY OVERVIEW

VALUE PROPOSITION Ever since cement was first

for 5% of total carbon dioxide

combination of cement powder,

made in the United States

emissions. As the second most

water, and aggregate, this

in 1871, the process behind

consumed substance in the

process would supply 2/3 of all

production has remained

world, demand for cement will

ingredients needed for cement

relatively the same. Portland

only increase over time, with

production. The resulting

Cement, which accounts for

about 3 tons used per person

limestone product can either

99% of the cement used today,

annually. Re-inventing this

function as aggregate or be

begins as limestone and shale.

process will have substantial

processed and sold as cement

After transport from the quarry,

implications for the economy

powder. Overall, this process

these materials are ground,

and the environment, not only

not only mitigates the amount

blended, and ground again in

in the U.S., but worldwide as

of CO2 released, it also turns

a plant before they are burned.

well.

material that would otherwise

The result is taken out of the

have been discarded as waste

kiln and then packaged to

Blue Planet technology will

into a resource that allows

ship. As a by-product, 1 ton

make the cement-making

cement companies to forego

of CO2 is produced for every

process much more efficient.

financially and environmen-

ton of cement produced. This

The company plans to use

tally costly mining operations

means that 1 ton of CO2 is

carbon dioxide by-products as

while acquiring the exact same

released for every 21 bags of

raw materials in the production

ingredient for use in cement

cement produced. Overall,

of limestone. The CO2 is

production processes.

cement production accounts

captured at the source and

divalent ions for coating and supplementary cementitious materials

for 1% of the greenhouse

combined with an alkaline

Top Right | Pilot Skid Gas Liquid System

gasses emitted in the U.S.

solution to create the calcium

every year. Worldwide, CO2

carbonate required to supply

emissions from the cement

cement’s limestone ingredient.

production process account

As concrete is made from the

20 | SYNAPSE.BIO

Top Left | Sample of Natural Soft Pumice & Recycled Concrete Substrate for Carbonate Coating Process Top Middle | BP converts pails of plant-generated waste to reformer solution generating the necessary

Bottom Left | CaCO3 coated sample of red pumice using the BP Process vs. uncoated red pumice Bottom Right | Researcher studies different polymorphs of carbonate in coating using ATR-FTIR

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COMPANY OVERVIEW

ORGANIZATIONAL STRUCTURE

BRENT CONSTANZ

Brent Constanz Founder & CEO, Blue Planet Ltd.

Headquartered in Los Gatos,

board of directors alongside

California, Blue Planet is

three other members. Board

comprised of a small team of

members Greg Kats, Bill Dorey,

fourteen in-house employees,

and Ralph Currey provide

along with twenty-five consul-

expertise in their specialties

tants and the entire scientific

which range from construction

advisory board from Calera

to clean energy. The Scientific

at the time of writing. The

Advisory Board members all

Management Team comprises

have PhDs in their respective

six Blue Planet employees,

fields including, but not limited

including Constantz, with Ray

to: geochemistry, chemical

Harris serving as President.

engineering, earth and ocean

Harris previously held Presi-

sciences, and biology. Among

dential and CEO terms with

these noted scientists are

a construction company, as

Gordon Brown who is the

well as with renewable energy

Chair of the Department of

companies such as Mesa

Geological & Environmental

Power.

Sciences at Stanford and Michael F. Doherty, professor

All board members have

of Chemical Engineering at UC

decades of experience in their

Santa Barbara.

prospective fields. Constantz and Harris serve on the

22 | SYNAPSE.BIO

Commercialization Process & Strategy

EARLY DEVELOPMENT

Blue Planet is preceded

and concrete with reinforced

by green cement company

material (US 8,906,156 B2). Due with an osmotic process to

Calera, also founded by Brent

to the inability of the US to sign

create the alkaline solution

Constanz. Calera ran from

the Copenhagen Agreement,

required to react with CO2 and

2007 to 2010, operating in a

and China’s subsequent

form the limestone. In doing so,

15,000 square foot facility with

reneging on the Agreement,

the company reduces capital

146 employees, funded by

the venture capitalists funding

and operating costs by about

approximately $182,000,000

Calera were forced to change

40%.

in venture capital. Calera was

directions and focus instead on

a pioneer in its field, operating

higher margin ventures.

with progressive technology

electro-chemistry approach

Further differences include workforce makeup; Calera

and 328 patents, but without

Blue Planet became Calera 2.0,

was composed of a relatively

a carbon priceline. These

with the key difference in the

large team of 146 employees,

patents focus on methods and

sequestration process; while

while Blue Planet operates

compositions using calcium

Calera used electro-chemistry

with a team of around fourteen

carbonate. This includes

to solidify carbon dioxide gas

full-time employees, twenty-five

patents for the construction

into calcium carbonate cement,

consultants, and the entire

panel to sequester carbon

Blue Planet creates the product

scientific advisory board from

dioxide (US 8,869,477 B2) and

via an aqueous solution. Blue

Calera.

the composition of the cement

Planet replaced Calera’s

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TEXT PLACEHOLDER

COMMERCIALIZATION PROCESS & STRATEGY

than $25 billion (domestic

themselves accounting for 50%

limestone valued at $20 per

of all newly mined aggregate.

metric ton). In the same year,

The top-ranking cement

the United States imported

production company, Lafarge,

about 430,000 metric tons

reported a 27% turnover in

of industrial limestone and

the Middle East and Africa, a

limestone products, valued

21% turnover in both Western

at about $2.2 billion. Most of

Europe and North America,

these imports were Portland

and 18% turnover in Europe.

cement .

While the world demand for

8

LIMESTONE

TARGET SECTOR & MARKET ANALYSIS

Commodity, retrieved from: http:// geology.com/usgs/limestone 9 The Economist. Ready-Mixed Fortunes, retrieved from: http:// www.economist.com/news/busi-

We expect the production and

expected to rise 5.2% per year

ness/21579844-worlds-cement-gi-

sale of aggregate to remain

from 2010-2015, secondary

ants-look-set-recoverybut-will-it-be-

relatively stable in areas with

aggregates such as sand,

durable-ready-mixed-fortunes

well-developed infrastructure

gravel, and crushed stone

such as the United States and

were expected to rise to 7.1%

is the largest producer of

71% of that total is limestone.

Western Europe. With this in

per year over the same time

consumes between five and

construction aggregates in

With these numbers we

mind, and considering the

interval9.

ten percent of the global

the United States: In 2007,

can estimate that the world

relatively flat rate of population

production of industrial

it produced $3.3 billion

consumes approximately

and economic growth in these

Portland cement is essential

limestone. Large infrastructure

in revenue. However, the

24.85 billion tons of limestone

areas, we expect aggregate

to the building industry, but

projects are already spending

aggregate market is highly

yearly, valued at about $500

production to continue

despite the abundance of

billions on the purchase of

fragmented, with 69% of the

billion. In 2007, crushed

increasing, but at slower rates.

limestone in the United States,

limestone, and even more on

market share being accounted

limestone accounted for 68%

Areas experiencing indus-

limestone shortages have

the costly methods required

for by small, local companies.

of all crushed rock produced

trial growth such as Eastern

become more frequent in

in the United States. Domestic

Europe, Africa, Asia, and the

recent years. This is a result at

the quarries to the infra-

Currently, the world mines an

production of industrial

Pacific region will experience

least in part of the increasing

structure construction sites.

average of 35 billion metric

limestone was about 1.3 billion

the largest leap in product

scarcity of new areas suitable

Vulcan Materials Company

tons of rock every year; about

metric tons, valued at more

sales, with India and China

for quarrying operations.

24 | SYNAPSE.BIO

and Versatile Industrial Mineral

construction aggregate was

The United States presently

to transport limestone from

8 Geology. Limestone: A Crucial

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TEXT PLACEHOLDER

CEMENT

COMMERCIALIZATION PROCESS & STRATEGY

TARGET SECTOR & MARKET ANALYSIS

trillion in 2015 and to US$10.3

The top six companies leading

trillion in 2020. Cement is a

the worldwide industry in

fundamental material for the

decreasing order are Lafarge

construction industry and

(France), Holcim (Switzerland),

its demand is highly likely

CNBM (China), Anhui Conch

to increase in this scenario.

(China), Heidelberg Cement

In 2014, the world industry

(Germany), and JIdong (China).

produced an estimated of

China is well represented in

retrieved from: https://books.

4,180 million metric tons of

the global market, claiming

google.com/books?id=zNicd-

cement, worth US$411.7 billion.

six out of the top ten cement

kuulE4C&printsec=frontcover#v=o-

About 2%, 83.3 million metric

companies worldwide12.

nepage&q&f=false

tons, worth US$8.2 billion,

Focusing for a moment on

was produced in the United

the US market, Atlanta-based

States. Cement consumption

Oldcastle Inc. is the largest

is expected to grow 5% this

producer of cement in the US

year and 6.5% in 2016. Outside

with a 2014 revenue of $20 billion13.

10 Industrial Materials And Rocks: Commodities, Uses, and Markets,

11 Portland Cement Association. Research and Development Information, retrieved from: http:// cement.org/astmc01/reference16. pdf

Limestone makes up about 5%

production, which would further risen sharply as developing

China, which accounts for

of Portland cement in the U.S.

reduce the price of concrete

countries urbanize and indus-

half of global demand and

but can increase up to about

considering that transportation

trialize: they now consume

production and is mainly

CEMENT PRODUCTION

Cement Companies, retrieved from:

35% in Europe. Cement is a

costs can add up to 15–35% of

90% of the world’s cement

served by local firms, six vast

BY COUNTRY WITH THEIR

http://www.globalcement.com/

bulky and cheap material, so

the delivered price 11.

output, and this share is likely

international firms—Buzzi,

INSTALLED QUANTITY (MT) 12

magazine/articles/741-top-20-glob-

to continue growing.

Cemex, Heidelberg, Holcim,

it is appropriate to produce

12 Global Cement. Top 20 Global

al-cement-companies

Italcementi and Lafarge—

1. China . . . . . . . . . . . . . . . 1452

As stated by the Construction

together account for 40% or so

2. India. . . . . . . . . . . . . . . . . 3 0 1

is its high entry cost: a new

Intelligence Center (CIC), the

of the market. Holcim, based

3. USA. . . . . . . . . . . . . . . . . . 114

to transport that it rarely travels

cement plant producing one

global construction industry

in Switzerland, now rakes in

4. Turkey . . . . . . . . . . . . . . . 82

more than 200 miles (320

million tons a year, which is

has regained growth

around 70% of its profits from

5. Russia . . . . . . . . . . . . . . . . 80 tle-big-moat-in-teresting-company

km) by road, so its markets

the smallest worth building,

momentum. The global

the developing world; Lafarge,

6. Vietnam. . . . . . . . . . . . . . . 73

tend to be local10. Blue Planet

costs around $200 million

construction industry is

of France, is not far behind12.

7. Iran . . . . . . . . . . . . . . . . . . . 71

technology further encourages

USD. In recent years, demand

projected to grow from US$7.4

8. Japan . . . . . . . . . . . . . . . . 70

the localization of cement

in emerging economies has

trillion in 2010 to US$8.5

9. Brazil . . . . . . . . . . . . . . . . . 69

in vast plants close both to

One of the main challenges

limestone quarries and to

for new cement production

customers. Cement is so costly

13 Seeking Alpha. OldcastleBig Moat, Interesting Company, retrieved from: http://seekingalpha. com/article/3084386-oldcas-

10. Pakistan. . . . . . . . . . . . . . . 65

26 | SYNAPSE.BIO

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TEXT PLACEHOLDER

COMMERCIALIZATION PROCESS & STRATEGY

BLUE PLANET PRODUCTS & SERVICES

AGGREGATES

TARGET SECTOR & MARKET ANALYSIS

Aggregates are the most mined

Through 2017, worldwide

of US$19.8 billion. The North

materials in the world. Aggre-

sales of construction aggre-

American market is expected

gates are either used in their

gates are forecast to expand

to grow at a rate of 4.2 percent

raw form or serve as composite

5.8 percent per year to 53.2

annually, with production

materials in the production of

billion metric tons. The market

reaching 4.4 billion metric tons

concrete and asphalt. Markets

is predicted to expand further

by 2022.

for aggregates include private

to 66.2 billion metric tons by

residential construction,

2020. The Chinese and Indian

commercial construction, and

market represent the greatest

publicly funded infrastructure

expansion opportunities. In

projects, with the latter

2014, total U.S. construction

consuming the most aggre-

aggregate production rose to

gates for use in highway and

an estimated 2.1 billion metric

road construction.

tons, representing a total value

28 | SYNAPSE.BIO

Blue Planet products are all

process with varying states of

derived from their patented

saltiness, and nearly potable

process of converting captured

water is a by-product produced

carbon into marketable

on site. Their carbon capture

limestone. This limestone can

and mineralization technology

either be processed further

will remove two of the EPA’s

to create Portland cement

six criteria listed pollutants,

and eventually concrete, or

SO2 and lead. Finally, Blue

be used as a white pigment

Planet intends to demonstrate

for albedo-inspired roofing

its product at selected sites

materials and paint products.

including electricity generating stations powered by coal or

In addition to tangible products,

natural gas, cement plants,

Blue Planet also provides

petroleum and/or biofuel

specific services including CO2

refineries.

capture, water management, criteria pollutant removal, and emitter projects. Of course, the necessary capture of carbon dioxide has implications for the state, federal, and international Cap-andTrade programs. Three types of water are used in the input

BLUE PLANET TECHNOLOGY IMPLEMENTED AT BIG BEND

Blue Planet’s carbon sequestration module installed at Florida’s Big Bend generation plant will determine the technology’s economic feasibility on a large scale. Big Bend is a 1.7 gigawatt plant located in Tampa, and is one of about 10,000 similar installations Blue Planet technology could be installed. Beginning in the spring of 2016, Blue Planet aims to produce 100,000 tons of aggregate per year at the large commercial power plant and expand to 1.5 million tons by 2017. Currently, Blue Planet is undergoing the DOE loan-guaranteeing process to finance their carbon capture and limestone production plant in Florida.

SYNAPSE.BIO | 29


COMMERCIALIZATION PROCESS & STRATEGY

COMMERCIALIZATION PROCESS & STRATEGY

PRICING MODELS Blue Planet sells the emission

Revenue is negotiated

The company is also exploring

Shifting Towards “Producers

that is fraught with technical

regulations, the global

control equipment necessary

between the plant and Blue

other pricing options. Right

Will Prosper” | Facing

difficulties, unclear ownership

manufacturing partner will

for cement plants and electric

Planet; the Florida plant has

now the emitter owns the

today’s climate crisis, experts

and property rights, and runs

license the carbon seques-

power producing companies

agreed to pay $60 per ton.

equipment and pays Blue

believe that monetizing CO2

the risk of eventual and easy

tration units and build the

to convert their CO2 waste to

Currently the plant is producing

Planet a royalty based on

could potentially be the only

emission re-release. Avoiding

plants all over the world. The

limestone aggregate. Road

limestone at a rate of 21,000

carbon dioxide captured and

approach that could make a

this method, Blue Planet

cement plants would purchase

building is a multi-billion-

tons per year, but are expected

the amount of aggregate

difference. The mission of Blue

creates a monetizable product

the licensing fees for the

dollar market, with aggregate

to increase to 100,000 tons/

produced. However, other

Planet is to focus on solutions

out of initial carbon emissions.

equipment and pay per ton of

costing between $25 and $70

year in 2016 and 1.5 million

relationships are currently

that could capture at least one

This process effectively

CO2 sequestered in addition to

per ton. The albedo inspired

tons/year by 2017. The total

being worked out in which Blue

billion tons of CO 2 , although

transforms the common and

a royalty.

products for roofing cost

amount an emitter will pay

Planet would own and market

it’s only a small step towards

controversial legal principle

between $400–$500 per ton

Blue Planet depends on both

its own technology while

the ten billion total tons that

of ‘polluters will pay’ to the

As seen in the above section,

of material. Despite albedo

the quantity of CO2 that is

receiving the revenue directly.

must be captured to mitigate

more optimistic and entrepre-

Blue Planet is still experi-

products’ higher price, the

captured, as well as quantity of

Another global manufacturer is

the crisis.

neurial outlook ‘producers will

menting with the exact pricing

albedo market remains smaller

product distributed.

in talks to license Blue Planet

prosper’.

and licensing model. Current

because the product is not

technology to build, operate,

Biosequestration is a frequently

ordered in as large a quantity

and essentially personally own

used model, and involves

Blue Planet’s sales model is

whether Blue Planet will

as the aggregate needed for

a carbon-capturing, limestone-

the absorption of carbon

unique in that the company

install and own its own carbon

road construction.

and nearly-potable-water-pro-

emissions into organic matter.

would own its own carbon

sequestration technology, or

ducing power plant.

While biosequestration does

sequestration units. Instead

whether they will be willing to

decrease emissions in the

of investing in a new CO2 or

sell the technology and future

short-term, and has a real

sulfur scrubber, which has to

benefits of the technology to

potential to make significant

go through a public utilities

other companies outright.

impact, it is a costly technology

commission and stringent

30 | SYNAPSE.BIO

negotiations will determine

SYNAPSE.BIO | 31


COMMERCIALIZATION PROCESS & STRATEGY

COMMERCIALIZATION PROCESS & STRATEGY

GROWTH & CONSTRAINTS

FUTURE POTENTIAL MARKETS

The current phase of plants run

world is immense, and they

plants. On August 3, 2015, the

Blue Planet is currently

a prohibitive cost from the

The company is currently

at two megawatts, producing

create a tremendous and previ-

Obama administration passed

operating in the United States,

Caribbean, Georgia, and other

looking to deploy a plant in

more than 20,000 tons of

ously untapped market for Blue

the Clean Power Plan, which

where carbon emission

places far away from Florida

Canada - the second largest

aggregate, and $1.2 million

Planet. There are five thousand

puts forward lower Carbon

regulations are undergoing

construction sites, Blue Planet

exporter of electric power

in revenue. Scaling up to ten

large carbon dioxide emitters

Pollution Standards for energy

implementation. Major market

can offer Florida the chance

(677 TWh)16 and a country

megawatts, the next phase of

in the world, and another two

plants and strongly incen-

potential exists in infrastructure

to neutralize its carbon output

where a strong regulatory

plants will generate a revenue

thousand smaller ones. All in

tivizes companies to consider

projects; rock is 80% of

while simultaneously lowering

system already exists. Another

of about $105 million. These

all, up to ten thousand sites

carbon capture schemes such

concrete and 95% of asphalt,

transportation costs. Blue

area of focus is in Florida

two phases are slated for

around the world stand to profit

as Blue Planet’s14. At the time

the most used materials in

Planet intends to demonstrate

starting spring 2016, where an

completion over the next five

from Blue Planet products and

of writing, the US Clean Power

construction. For locations

economic feasibility through its

anticipated 100,000 tons of

years, but eventually Blue

services. Blue Planet’s current

Plan was under review by the

that don’t have rock as a

operations at the Florida plant

aggregate will be produced

Planet aims to build a 150

market is about 25% cement

EPA for suspension, revision,

natural resource, importing

and then shift its focus towards

in 2016, increasing to 1.5

megawatt plant, which has the

producers and 75% electric

or revocation following an

construction materials over

expanding into international

million tons in 2017. This is an

potential to produce 1.5 million

power producers. Of these

Executive Order by the Trump

long distances is timely and

markets like China.

important step for Blue Planet

tons of aggregate.

two groups, the cement sector

administration .

costly, both for the customers

15

prefers Blue Planet to build, Blue Planet holds an advantage own, and operate a carbon

because it will determine

and the environment. For this

Because Blue Planet

whether or not this carbon-

reason, Blue Planet’s products

technology thrives where

capture system is feasible on a

and services will have a signif-

cement production thrives,

large scale.

icant competitive advantage

its potential markets should

in places like Florida, which

parallel the potential markets

due to its location just above

for cement. Blue Planet should

in this particular field, as they

capture system, whereas the

have held strong intellectual

utilities companies would

property rights long before

usually rather license the

anyone else began working

technology. Growth for the

in the industry. The number of

company is aided by U.S. policy

15 https://www.feder-

sea level does not contain an

look towards future markets in

carbon dioxide emitters in the

that encourages cleaner power

alregister.gov/docu-

abundance of aggregate or

Asia and the Middle East, and

ments/2017/04/04/2017-06522/

places to mine rock. Instead

particularly big players such as

review-of-the-clean-power-plan

of importing the materials at

China and India.

32 | SYNAPSE.BIO

14 http://www.epa.gov/cleanpowerplan/fact-sheet-overview-cleanpower-plan

16 http://www.nrcan.gc.ca/sites/ www.nrcan.gc.ca/files/energy/files/ pdf/2014/14-0173EnergyMarketFacts_e.pdf

SYNAPSE.BIO | 33


Financial Strategy FUNDING SOURCES

FUTURE POTENTIAL FINANCIERS

Since its conception, Blue Planet’s founders wanted to ensure that control of the company would

Blue Planet currently has two key partners: a large global equipment company and an EPC, which

remain in the hands of the scientists and engineers behind the projects. Founder Brent Constanz

is an engineering, procurement, and construction firm. The company also just completed Series B

himself completed Series A funding singlehandedly, putting in about $1,500,000 of his own money

fundraising at $5,000,000 dollars; most of the investors at this level are involved in environmental

to secure the licensing agreement and hire the initial workforce. The company also received

sustainability in some way. Backers include executives of construction companies and a NASDAQ-

funding from a number of individuals who invested between $250,000 and $5 million each; many

traded power generation company. Relying on this network of industry experts is something that

of these individuals include the scientists, engineers, and other members of the workforce behind

Blue Planet is hoping to continue to do in its financing future.

the project. Blue Planet plans to use money from an upcoming Series C round of fundraising to expand the company beyond R&D by expanding partnerships in global markets, business devel-

At present, the company is embarking on its Series C round of fundraising, otherwise known as

opment, and government affairs.

the ‘corporate round’. The company is seeking investments and partners from cement companies and other firms involved with the purchasing of resources for the process. Between ten and fifteen

WORKING WITH THE RIGHT INVESTORS

Blue Planet’s main difficulty in terms of financial stability is a calculated avoidance of accepting

million dollars are expected to come through in the next series of funding. Interest from well-known investors is being generated through an initiative called ‘Beyond Coal’17.

capital from certain kinds of investors. Instead of depending on funds from venture capitalists, whose goals in the long run might diverge from those of the company, Blue Planet plans to

ATTRACTIVENESS FOR INVESTORS

continue looking for funding from investors who are determined to make meaningful investments

Within the next five years, Blue Planet plans to have the ten megawatt plant up and running;

that not only provide a return on investment, but also make the world a better place. While this puts

revenue is projected to be about $105 million. Even before this happens, the two megawatt plant

Blue Planet at a distinct advantage in terms of control and decision-making, it may put the nascent

will produce around $1.2 million in revenue. The company just received approval for a B1 round

company at risk of bottlenecks created by insufficient capital availability.

of funding, and has garnered interest from several well-known financiers looking to invest in innovative and impactful energy initiatives.

17 http://content.sierraclub.org/coal

34 | SYNAPSE.BIO

SYNAPSE.BIO | 35


Conclusion

After improving Calera’s prototype, Blue Planet was able to successfully create an alkaline-based process that converted CO2 waste into limestone aggregate. The company currently plans to complete installation of their technology at the Big Bend power plant in Florida to use as a model for future clients. However, Blue Planet’s sales model is not set in stone; they will use future negotiations to decide whether or not they wish to extend the current royalty-based sales model or transition towards selling the license as well as the operating authority. Blue Planet will continue to seek power plants interested in sequestration technology, especially in foreign markets such as China and Canada. Blue Planet expects revenue for the Florida plant to reach $105 million and combined with additional revenue from B1 funding it will be able to more resources towards promotion of their product in foreign markets, while not neglecting further R&D. For now, Blue Planet has a strong competitive advantage in the carbon sequestration industry because they hold the patent rights to high-level intellectual property.

Lessons Learned WORK WITH THE RIGHT INVESTORS

Too much reliance on venture capitalists proved deadly for the prototype company, Calera. Blue Planet instead receives series C funding, which allows it to steer and grow the company beyond R&D and into new markets. TUNE IN TO ATTITUDES ON CARBON EMISSIONS

While not a deciding factor in the success or failure of an environmentally conscious company, policy both at home and abroad can constrain businesses or help them grow. Perhaps some of Blue Planet’s increased success is due to stricter requirements for power plants’ carbon dioxide and other greenhouse gas emissions. Overall, political as well as public culture determines whether companies swim with or against the current. In this case, Blue Planet is seemingly able to capitalize on growing environmental sentiment and additionally more stringent laws regarding pollution. RIGHT SIZE THE TEAM

Large teams are not necessarily an asset. Constantz was able to streamline the number of employees when transitioning from Calera to Blue Planet; the result has been a smaller team that has been able to work more efficiently and flexibly without compromising the quality of the product. VALIDATE THE CONCEPT

Focusing on one application of the technology, the Big Bend plant in Florida, is beneficial for the company because it will determine whether or not the model they currently have, as well as the relationship the company has with the plant, will be a model for future business relationships. The case study can be used as a tangible example for future companies interested in purchasing Blue Planet’s sequestration technology. 36 | SYNAPSE.BIO

SYNAPSE.BIO | 37


For more information about Blue Planet Blueplanet-ltd.com Jane Ricci Business Manager, Blue Planet Ltd. 100 Cooper Ct. Los Gatos, CA 95032 (408) 458-3902 jane@blueplanet-ltd.com BiomimicryBusinessIntelligence.com

by Biomimicry 3.8

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