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Verbio technology review

Verbio: bio-energy technology review?

Verbio is a bio-energy company, founded in 2006, listed in Germany, producing bio-diesel, bioethanol, biogas and fertilizers. The company has stated โ€œwe want to be in a position to convert anything that agriculture can deliver to energyโ€. Our Verbio technology review is based on its patents. We find some fascinating innovations in cold mash ethanol, integrated with biogas production, and making biogas from lignocellulosic feedstock.


50-60% of Verbioโ€™s EBITDA has recently come from its bio-diesel. We think bio-diesel will see increasing competition for feedstocks and possibly also due to food shortages. Numerically, the largest focus in Verbioโ€™s patents was into metathesis catalysts (chart above), which is the rupturing and re-forming of C-C or C=C bonds, to โ€˜swapโ€™ the hydrocarbon tails, and produce a more varied range of outputs, especially in bio-diesel. But we found these patents to be disjunctive, and hard to de-risk.

40-45% of Verbioโ€™s EBITDA has recently come from bio-ethanol and bio-methane. And we found the patents here particularly interesting and high-quality. Verbio is using a cold-mash process, which results in 80% lower CO2/energy use than gasoline, and perhaps as much as 50% lower than US corn ethanol using hot mash processes. The patents explain how this is being achieved, including by combining bio-ethanol plants and bio-methane plants, then recirculating the stillage. Some nice flow diagrams are copied in our data-file. But most interestingly, halving the heat use on a bio-ethanol facility, and holding all else equal, would uplift its IRR by 3%, or conversely, lower its total production cost by 5%.

Converting lignocellulosic crop wastes into bio-methane is also covered in the patent library and by the company. This is likely to harness a particularly low-value feedstock (straw), and yield what will be, for the foreseeable future in European gas markets, a high-value product. The patents seem to overcome challenges in the breakdown of waxy coatings, โ€˜floating layersโ€™, and yields. These patents include some clear and simple details.

Overall our Verbio technology review yielded a mixed score, but this was due to a mix effect. Low carbon bio-ethanol production and forming biogas from lignocellulosic feedstocks seemed most interesting, and also appears to be the focus for new investment in the companyโ€™s EUR 300M capex plans.

Is there value in bio-energy technology? We see persistent shortages of hydrocarbons in the 2020s (model here). Energy Majors have also been acquiring biofuels companies in 2022, such as Chevron buying Renewable Energy Group ($3.2bn), BP buying Archaea ($3.3bn) and Shell buying Nature Energy ($2bn).

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