76 percent of biofuels execs more bullish than in 2010; strong job, revenue growth expected
In Florida, Biofuels Digest reports that 76 percent of bioenergy executives are more optimistic both about their organization’s prospects for growth and industry growth, than 12 months ago, and that 72 percent are more optimistic about the industry’s prospects than at this time in 2010.
The findings were among the highlights of the Q2 2011 Bioenergy Business Outlook Survey conducted by the publication and co-sponsored by the Biotechnology Industry Organization (BIO). The quarterly survey drew responses from 409 Digest subscribers.
Highlights from the survey include:
Revenue growth
Respondents said that they expect their firms to grow by a median 11.6 percent over the next 12 months, up from a median of 6.58 percent in the Q1 survey. Industry revenue is expected to grow 8.45 percent, down slightly from 8.81 percent in the spring survey.
IPO activity
72 percent of respondents said that they expect to see more completed IPOs in the next 12 months, compared to the past 12. In the past 12 months, the IPO window has re-opened, with Codexis, Amyris, Gevo and Solazyme completing industrial biotech IPOs, and KiOR is expected to price this Friday.
Job growth
The median job growth rate expected, over the next 12 months, is 4.2 percent, down from 8 percent in the Q1 survey.
Financing
54 percent of respondents tried for new financing in the past 12 months, up from 42 percent, and 40 percent were successful in obtaining.
Growth drivers
48 percent said that new technology was a growth driver for them, up from 40 percent, while 41 percent credited new partnerships, up from 31 percent. 37 percent pointed to new finance and 20 percent to more aggressive marketing, up from 29 percent and 15 percent in the last survey.
Policy
Despite clouds over government activity in the US, 39 percent said government mandates and tax credits would be a key growth drover, up from 32 percent in the spring, and 67 percent described the government attitude as supportive, up from 63 percent in the spring survey.
Among preferred policies, executives pointed strongly towards neutral legislation, with 42 percent citing this as a major driver, up from 26 percent in spring. 41 percent pointed to better loan guarantee programs, up from 30 percent in the spring, while 30 percent indicated blender pumps assistance, compared to 22 percent in the previous survey.
Fuels
Among fuels, 67 percent of executives said they expect cellulosic ethanol, to reach 1 billion gallons by 2020, up from 52 percent in spring. Other feedstocks gaining sharply, biobutanol, renewable diesel (up sharply from 50 to 67 percent), renewable gasoline and military biofuels. Algal fuel dropped back from 29 percent to 26.
Category: Fuels
