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
SYNAPSE.BIO | 21
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
SYNAPSE.BIO | 23
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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