Green Biologics, new investment in next generation biofuels

Oxford, UK, October 2007

Green Biologics (GBL), an Oxfordshire industrial biotechnology company developing ‘next generation’ biofuels, has raised £1.58 million. The funding round involved existing shareholders as well as new investors, Carbon Trust Investments and Oxford Capital Partners who led the investment round. The Company has also marked the opening of a new laboratory facility at its headquarters at Milton Park, Oxfordshire.

GBL is developing Butafuel™, a superior and more sustainable liquid biofuel for transportation. ButafuelTM is based on an alcohol called butanol produced by a naturally occurring microbe in a sugar fermentation process that was first commercialised in the UK during the First World War but largely displaced by the 1960s with a cheaper petrochemical method. In addition to butanol, the fermentation process also produces acetone, an important solvent and chemical precursor for polymers and plastics.

GBL is ‘recommercialising’ the bio-butanol fermentation process by applying its skills in microbiology, molecular biology and fermentation, and has developed novel microbes and advanced high temperature fermentation processes. In addition, the Company targets waste feedstocks for fermentation from agricultural and industrial processes, such as paper and pulp, sugar processing, biodiesel production and food waste. This reduces the need for expensive waste treatment and diverts waste away from landfill. Utilisation of waste feedstocks for fermentation is more sustainable and environmentally friendly than use of food crops such as sugar beet, sugar cane, maize and wheat, the current feedstocks for bio-ethanol, a “first generation” biofuel. By optimising the fermentation process, and using cheaper waste feedstocks, GBL aims to achieve a two to three fold reduction in cost.

Green Biologics will use part of the new funding for a scaled-up, pilot demonstration of its proprietary fermentation process for bio-butanol on a range of model waste feedstocks in its extended laboratory facilities.

Dr Edward Green, Founder and Chief Executive Officer, of Green Biologics said: “We are delighted to have secured the new investment we need to scale up our butanol fermentation process. It is great to have the support of our existing shareholders and we welcome Carbon Trust Investments Limited and Oxford Capital Partners on board as new investors.

Dr Victor Christou, Investment Manager at Oxford Capital Partners, said: “Strong IP and know-how coupled with a unique technology skill base and proprietary micro-organism library means that Green Biologics is one of the most promising companies in the rapidly growing global biofuels sector. Oxford Capital Partners’ support for this Oxfordshire business reflects our confidence in the Green Biologics technology and together we aim to build another world class business based in the Oxford technosystem.”

Biofuels are increasingly being adopted by key industry players in response to climate change proposals and the demands of environmentally aware consumers. In 2006 BP and Dupont announced plans to collaborate with British Sugar to manufacture butanol in the UK. BP provides a route for butanol into the transport fuel market and aims to blend butanol with conventional fossil fuels.

In addition, in an attempt to curb C02 emissions, the European Commission has proposed that biofuels should make up 10% of total fuel sales by 2020 which represents a huge increase in the market for biofuels. Within the UK, the Renewable Transport Fuel Obligation will, from April 2008, require fuel suppliers to ensure that 2.5% of their total fuel sales are made up of biofuels, rising to 10% by 2020. The Government intends that butanol should count as a renewable transport fuel under the RTFO.

Information for editors

Please contact:
Joanne Telford
Oxford Capital Partners
Tel: 01865 860 760
jtelford@oxcp.com
www.oxcp.com

About Oxford Capital Partners

Oxford Capital Partners is a science and technology venture capital firm with extensive experience in investing in and supporting businesses with high growth potential. Oxford Capital Partners looks for the best opportunities, backing exceptional entrepreneurs and investing across all stages of development, from start-up to IPO. Leveraging its extensive networks, Oxford Capital Partners assists portfolio companies in accessing international markets in Europe, the US, Middle East and Asia. Oxford Capital Partners is the manager of four Oxford Gateway Funds and oversees a portfolio of over 25 companies in a range of technology sectors, including ICT, clean technologies, life and physical sciences.

Oxford Capital Partners was named Venture Capital House of the Year 2005 at the Unquote Awards.

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