MetGen: Several Projects In Pipeline For $2bn Industrial Enzyme Market
By chance, I have met recently several Finnish companies operating in the new but growing cleantech segment of industrial enzymes for biowaste-to-energy applications. Enzymes are proteins that catalyze chemical reactions and that can be used as new materials for renewable energy solutions. The global industrial enzyme market is currently valued at $2bn with an annual growth rate of 3-5%, which is fairly moderate. However, the large M&A transactions increase the attractiveness of this segment. Examples of transactions in this area include, for instance, the buy-out of Indian Biocon's food industry enzymes unit by Novozymes for $115m in 2007 (story) and also the merger of US-based Celunol and Diversa in 2007 (story).
MetGen, based in Turku, is focusing on enzymatic technologies in industrial processes (meaning simply industrial enzymes) trial to increase energy efficiency in industrial biofuel production. The core customers include the pulp & paper industry, which have realized the potential of creating significant value from the current by-product/waste streams. In Finland and the Nordic countries, several industry leaders have ongoing R&D projects to convert industrial waste or wood waste into energy and cellulosic ethanol. MetGen, still at the development stage, has several interesting R&D projects in the pipeline in this segment. The company develops enzymes useful in areas such as biomass treatment for energy conservation in the pulp & paper industry, and bioethanol production.
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Interesting!
Finland has been a global leader in industrial enzymes for decades. Close cooperation between VTT and both Finnish as well as foreign industries has led to several applications over the years. Enzyme enhanced bleaching of pulp (for paper) became real in the early 90s. Other examples include enzymatic "stone washing" of jeans. Of course there also is a biotechnical way to produce the indigo that later needs to be washed away. Already in the 80s quite much research was done on conversion of biomass to ethanol. And today Genencor (now part of Danisco) still operates enzyme production plants in Hanko and Jämsäkoski.
But I'll never forget the day when a co-worker appeared at our morning coffee in the lab in those 90s with the stunning find that the Finnish market for pet food seemed larger than the global market for industrial enzymes. I'm sure both markets have grown, and I surely hope that the enzyme market has grown more, but I'm not surprised if the opposite is true.
Hey, thanks very much for great info Robert. Did not know it has so long history in Finland? This is very interesting area. The demand for clean process technologies for pulp&paper waste processing is clearly increasing but I've understood that enzymes could also compensate hazardous and expensive raw materials in some applications. Think the opportunities when it comes time to screen out more carefully about the whole life-cycle analysis!
You're welcome. I just happened to work in that area for quite a while, before moving to ICT ;). Keep on posting, all of you! Good work.
At times however, not very often I'd like to see slightly more perspective. In general startups should of course not feel hindered by historical events (and non-events) but I believe that a little more knowledge of what's been done, or tried, before you never can hurt.
Got it - thanks Robert. Very good comment, we are working for it.
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