To: C E D who wrote (258 ) 1/4/2000 9:33:00 PM From: Sector Investor Read Replies (1) | Respond to of 336
Now lets link a few pieces together: "Studies over the last several months indicate that HPBS will be a lower-cost and potentially biodegradable building-block in the manufacture of detergents. " "then our scientists and engineers found that the novel enzymes they are creating have heretofore unknown properties ." " Refiners are interested in this technology because oxidative extraction of polynuclear aromatic sulfur compounds from these "cracked stocks" increases their value and reduces downstream refining costs. EBC believes that surfactant manufacturers will be enticed by the low-cost feedstock and the possible intrinsic environmental friendliness of chemicals produced via a biological pathway. One of the markets EBC has been targeting, the linear alkyl benzene sulfonate ("LAS") market, is currently a four billion pound per year market with a 4% average annual growth rate. EBC's new product could displace or alternatively, reduce the use of benzene and possibly eliminate the need for a costly sulfonation step in the manufacture of a LAS substitute. The substitute product has physical and chemical properties similar to LAS. EBC plans to partner with an existing surfactant manufacturer to evaluate and develop this new commercial application of its technology." Then from today's post: "Also, they have confirmed to me that they are in active discussions with a major chemical/refining company for the rights to the HPBS co-product. While I don't know how close they may be to actually announcing a deal, this has the potential to alter the entire paradigm of this story. Recall that up until now, the essential question has been whether or not the biocatalyst can be refined to hit the 50 PPM level. If a chemical deal can be consummated, it may well mean that the chemical/refining company simply wants access to the BDS process to generate the HPBS co-product for commercial use, irrespective of whether or not the 50 PPM level can be attained through BDS! To put it another way, this chemical company/refiner might potentially use BDS in the first desulfurization pass to get as much of the sulfur out of diesel fuel as possible using BDS and then use their existing HDS facilities to get down to 50 PPM." ********** I don't think we have to only consider this as BDS must be commercially viable first then other aspects come into play later, the way the Polaris report reads. If they are even "close" to commercial viability now and they have a chemical customer interested in the surfactant properties as well, plus the pressure of the new EPS guidelines and dates, they may well be able to get the ball rolling very soon.