bio-energy with carbon capture and storage ( beccs ) is a future greenhouse gas mitigation technology which produces negative carbon dioxide emissions by combining bioenergy ( energy from biomass ) use with geologic carbon capture and storage .

the concept of beccs is drawn from the integration of trees and crops , which extract carbon dioxide ( co ₂ ) from the atmosphere as they grow , the use of this biomass in processing industries or power plants , and the application of carbon capture and storage via co ₂ injection into geological formations .

there are other non-beccs forms of carbon dioxide removal and storage that include technologies such as biochar , carbon dioxide air capture and biomass burial .

according to a recent biorecro report , there is 550 000 tonnes co ₂ / year in total beccs capacity currently operating , divided between three different facilities ( as of january 2012 ) .

in the ipcc fourth assessment report by the intergovernmental panel on climate change ( ipcc ) , beccs was indicated as a key technology for reaching low carbon dioxide atmospheric concentration targets .

the negative emissions that can be produced by beccs has been estimated by the royal society to be equivalent to a 50 to 150 ppm decrease in global atmospheric carbon dioxide concentrations and according to the international energy agency , the blue map climate change mitigation scenario calls for more than 2 gigatonnes of negative co ₂ emissions per year with beccs in 2050 .

according to stanford university , 10 gigatonnes is achievable by this date .

the imperial college london , the uk met office hadley centre for climate prediction and research , the tyndall centre for climate change research , the walker institute for climate system research , and the grantham institute for climate change issued a joint report on carbon dioxide removal technologies as part of the avoid : avoiding dangerous climate change research program , stating that " overall , of the technologies studied in this report , beccs has the greatest maturity and there are no major practical barriers to its introduction into today ’s energy system .

the presence of a primary product will support early deployment . "

according to the oecd , " achieving lower concentration targets ( 450 ppm ) depends significantly on the use of beccs " .

carbon dioxide removal - methods - bio - energy with carbon capture and storage . . . bio - energy with carbon capture and storage , or beccs , utilises biomass to extract carbon dioxide from the atmosphere , and carbon capture and storage technologies to . . . grantham institute for climate change issued a joint report on carbon dioxide removal technologies as part of the avoid avoiding dangerous climate . . .
the role of bioenergy with carbon capture and storage ( beccs ) for climate policy .
bio - energy with carbon capture and storage - see also . . . energy portal sustainable development portal bioenergy biorecro carbon dioxide removal carbon negative climate change mitigation scenarios geoengineering list of emerging technologies low - carbon . . .
center for carbon removal ( 2016 ) . bioenergy with carbon capture and storage . available at urltoken . accessed september 19 , 2016
carbon capture , use , and storage technologies can capture more than 90 percent of carbon dioxide ( co 2 ) emissions from power plants and industrial facilities .
bio - energy with carbon capture and storage ( beccs ) is a greenhouse gas mitigation technology which produces negative carbon dioxide emissions by combining biomass use with geologic carbon capture and storage . the concept of beccs is drawn from the integration of trees and crops , which extract carbon dioxide ( co 2 ) from the atmosphere as they grow , the use of this biomass in processing industries or power plants , and the application of carbon capture and storage . beccs is a form of carbon dioxide removal , along with technologies such as biochar , carbon dioxide air capture and biomass burial .
mollersten k , yan j , moreira jr ( 2003 ) potential market niches for biomass energy with co2 capture and storage—opportunities for energy supply with negative co2 emissions . biomass bioenergy 25 ( 3 ) : 273–285
carbon storage atlas – fifth edition ( atlas v ) , u . s . department of energy
technologies that remove heat trapping carbon pollution from the atmosphere are now central to a lower risk strategy to avoid highly dangerous climate change . moving below zero : understanding bio - energy with carbon capture & storage includes a world first study examining the role of carbon removal technologies in national climate policy scenarios . carried out by leading economics firm jacobs skm , the modelling finds that bio - energy with carbon capture and storage , or bio - ccs using food wastes , sustainable forest biomass , or crop residues , has the potential to contribute significantly to climate change efforts in australia . for more information , visit urltoken
rhodes js , keith dw ( 2005 ) engineering economic analysis of biomass igcc with carbon capture and storage . biomass bioenergy 29 ( 6 ) : 440–450
canadell’s strongest bet is on carbon capture and storage , but instead of sucking it out of the air , he wants to see every facility that produces carbon dioxide equipped with technology to capture it at the release point .
energy 2050 - making the transition to a secure low - carbon energy system , earthscan .
thermochemical conversion of biomass also provides an important route to carbon - removing bioenergy + carbon capture and storage . this p roject in france led by energy major total isn’t planning to capture carbon emissions , but the learning from this project will be critical for future efforts that do incorporate capture systems .
beccs combines energy - generating biomass with geological carbon capture and storage . this pairing , in principle , produces negative co 2 emissions . reprinted with permission from ref . 16 , with permission from macmillan publishers ltd : nature communications , copyright ( 2014 ) .
global ccs institute ( 2016 ) . illinois industrial carbon capture and storage project . available at urltoken . accessed september 6 , 2016
a workshop on biofuels with carbon capture and storage was held in jakarta , leading to the definition of a common agenda that will be embedded in government activities through the efforts of a beccs task force with advisors from iiasa and the international energy agency .
almost two dozen commercial - scale carbon capture projects are operating around the world with 22 more in development .
some critics have also questioned the technology — dubbed “bioenergy with carbon capture and storage , ” or beccs — that marries together plants that pull carbon from the air as they grow , and industrial applications that process or consume those plants to generate energy , but also capture some of the resulting carbon and stow it within the earth .
the ipcc’s fifth assessment report has sparked debate about innovative carbon - removal technologies like bioenergy with carbon capture and storage ( beccs ) , and the role they could play in the fight against dangerous climate change .
annual energy outlook ( 2005 ) energy u . s . d . o . editor . 2005 . energy information administration
international energy outlook ( 2005 ) energy u . s . d . o . editor . 2005 . energy information administration
oxyfuel carbon capture : oxyfuel capture requires fossil fuel combustion in pure oxygen ( rather than air ) so that the exhaust gas is co 2 - rich , which facilitates capture .
above : the iea’s 2014 world energy outlook projections for necessary clean energy investment .
the climate institute ’s report on bio - energy identifies four major challenges to implementing bio - ccs . the first is incentive structures : incentives are needed to encourage large - scale deployment of all low - carbon technologies , but incentive mechanisms for carbon removal technologies in particular are in their infancy .
the concept of bioenergy and carbon storage ( becs or bio - ccs ) has been suggested as a means of producing carbon negative power ( i . e . removing carbon dioxide from the atmopshere via biomass conversion technologies and storage underground ) . carbon capture and storage ( ccs ) technology is currently at a demonstration phase , and research is mainly focused on reducing the costs of capture and storage so that it can be applied to a new generation of large - scale , power stations with lower emissions . however , in the future ccs could potentially be appled to a wide range of energy plants , including those incorporating co - firing or co - gasification of sustainable biomass feedstocks ( agricultural and wood wastes and energy crops ) , or even 100 % biomass energy plants , biofuel production facilities or biorefineries .
bio - ccs is where a carbon capture and storage ( ccs ) project is combined with an industrial facility that burns biomass to create energy , or uses biomass as part of an industrial process ( like a pulp factory for instance ) . biomass comes from living , or recently living , materials ; usually this is wood or other plant matter .
emitted by other sources . in this regard , beccs can be compared with the capture of co
post - combustion carbon capture : post - combustion capture typically uses chemical solvents to separate co 2 out of the flue gas from fossil fuel combustion . retrofits of existing power plants for carbon capture are likely to use this method .
in the future , the portfolio of large - scale carbon removal solutions will include : re / afforestation , ecosystem restoration , carbon sequestering agriculture , biochar , bioenergy with carbon capture and sequestration , direct air / seawater capture and sequestration , mineral weatherization , “blue carbon” strategies , and likely other techniques not yet proposed / published .
c2es and the great plains institute co - convene a diverse coalition of industry , labor , and environmental groups that support expanding deployment of carbon capture . other supporters of incentivizing carbon capture include the western governors association , southern states energy board , and national association of regulatory utility commissioner
interested in studying bioenergy research ? professor gail taylor is happy to be advertising a new phd opportunity in her group on bioenergy with carbon capture and storage . the project will be developing a framework to assess the impacts on uk and global
basalt formations and shale basins . these are also considered potential future geologic storage locations .
note that at equivalent carbon prices the scenario with ccs results in higher bioenergy production and use .
negative emissions occur where there is net removal of co 2 from the atmosphere . not emitting more co 2 into the atmosphere is the aim of most emission reduction technologies , but bioenergy associated with carbon capture and storage ( bio - ccs , or often called beccs ) is one of the few technologies that can deliver a net removal of co 2 from the atmosphere .
2017 : adm illinois industrial carbon capture & storage project . archer daniels midland began capturing co 2 from an ethanol production facility and sequestering it in a nearby deep saline formation . the project can capture up to 1 . 1 million tons of co 2 per year .
by contrast , research on natural geological occurrences of co 2 and experiences from ongoing carbon storage projects are showing that the expected duration of storage in geological formations will be very long , probably millions of years . 12 for details on retention times and storage security , see further section 3 . 4 .
commercial use of direct air capture machines for fuel synthesis can help pave the way for negative - emission direct air capture and sequestration projects . this news about the air - capture / fuel - synthesis collaboration between audi and climeworks is an encouraging sign .
bioenergy sustainability is essential . biomass needs to be sustainably and reliably sourced to avoid the negative effects outweighing the positive climate change benefits . this includes ensuring land use is not diverted away from forest and food production and into bio - energy crops .
there is a large - scale , integrated ccs project associated with bioenergy that is currently in the construction phase . this project is called the illinois industrial carbon capture and storage project and is located in decatur , illinois , usa . it is a corn - to - ethanol plant , which was commissioned in 1978 and is being retrofitted with ccs . there have also been several smaller scale bio - ccs projects in kansas , usa . ( gccsi , global status of beccs , 2010 )
the report notes that the national energy technology laboratory has found that no harmful induced seismicity has been associated with any of the global ccs storage demonstration projects as of february 2011 . we agree that all storage projects need to continue to monitor and address this issue throughout the life of ccs projects .
the energy department praised the initiative . “today’s announcement marks a major step forward for the advancement of industrial carbon capture and storage technologies , ” said doug hollett , acting assistant secretary for fossil energy . that’s the division of the department that invested $ 141 million into adm’s project as part of president obama’s economic stimulus bill in 2009 .
us energy information administration ( june 2016 ) . state energy data system ( seds ) : 2014 ( updates by energy source ) . available at urltoken . accessed september 10 , 2016
even as nations diversify their energy portfolios , fossil fuels are expected to meet a majority of the world’s energy demand for several decades . accelerating deployment of carbon capture technology is essential to reduce emissions from these power plants , and from industrial plants like cement and steel manufacturing .
the potential role for negative emissions from bio - ccs could be in the order of 10 gigatonnes of co 2 by 2050 ( the climate institute , 2014 ) . the longer the delay in climate change action , the greater the need for net negative emissions technologies like bio - ccs .
what do deep - sea bacteria have in common with your refrigerator ? both are the subject of research efforts concerning energy generation and use , and may become key factors in the way we think about energy . with climate change concerns coupled with a rising demand for power , researchers are striving to develop energy technology that will meet consumers’ needs while preserving the health of the environment .
the national research council ( nrc ) of the national academy of sciences released a report on june 15 , 2012 entitled
induced seismicity potential in energy technologies .
this report addresses potential induced ( human - made ) seismicity caused by such energy technologies as geothermal fluid production , enhanced oil recovery , hydraulic fracturing , and carbon capture and storage ( ccs ) .
“the significance of this is it is an upscale , more industrial scale injection on the order of a million tons of carbon dioxide per year , so this is a big step forward in terms of the commercialization of carbon capture and storage , ” said greenberg .
2009 : chaparral / conestoga energy partners’ arkalon bioethanol plant in kansas . the first ethanol plant to deploy carbon capture , it supplies 170 , 000 tons of co 2 per year to chaparral energy , which uses it for eor in texas oil fields .
coordinated decarbonisation efforts must include the development of additional technologies that ( 1 ) prevent and curtail emissions of co 2 , ( 2 ) result in carbon negative solutions , and ( 3 ) lead to safe and secure carbon storage .
one of the few places where a beccs plant can be seen in action on a large scale is in decatur , illinois , where the arthur daniels midland company ( adm ) has built a corn - to - ethanol plant that employs co 2 storage ( 8 ) . in 2009 , the us department of energy selected adm as one of 12 projects to develop carbon capture and storage at an industrial scale , through its industrial carbon capture and storage program . the next year , it was one of three projects to receive continued funding ( 9 ) . this year , it went into full production , capturing an estimated one million tons of carbon a year .
in mid - 2017 , a technical mission innovation ccus workshop will be hosted by the united states . the workshop will convene top experts to discuss breakthrough opportunities and find international rd & d synergies in carbon capture , geologic storage , and co 2 utilization .
there are many techniques , established ones as well as those under development , which have the potential of radically reducing co 2 emissions . examples include solar , wind , bio and geothermal energy ; decarbonisation of the transport sector ; increased energy efficiency and also the application of ccs technology on fossil fuels in power production and in industries . what sets beccs apart as a climate mitigation measure , is that it may result in permanent net negative carbon emissions . this is achieved as co 2 from the atmosphere , which has been locked into biomass , is stored underground . beccs combines the natural co 2 capture process in trees and plants , with the benefits of geological carbon storage , ccs .
bioenergy with carbon capture and storage ( beccs ) involves the conversion of biomass to energy , producing co 2 which is sequestered , transported and then permanently stored in a suitable geological formation . thus , a negative flow of co 2 from the atmosphere to the subsurface is established . the potential of beccs to remove co 2 from the atmosphere ( in addition to generating energy ) makes it an attractive approach to help achieving the ambitious global warming targets of cop 21 . beccs has a range of variables such as the type of biomass resource , the conversion technology , the co 2 capture process used and storage options . each of the pathways to connect these options has its own environmental , economic and social impacts . this study attempts to integrate these impacts into a three pillar sustainability framework ( 3psf ) approach . as an example , the 3psf approach is applied to bioenergy from organic waste collected from municipal solid waste ( msw ) . global and australian potentials for using municipal solid waste as resource for bioenergy and coupling it with carbon capture and storage ( beccs ) , was investigated . two beccs systems , municipal solid waste incineration with carbon capture and storage ( msw - ccs ) and landfill gas combusted in gas turbine with carbon capture and storage ( lfg - ccs ) were modelled . in the case of business - as - usual scenarios with no emission policy in place , the cost of electricity from both beccs options is higher than for unmitigated coal power generation . however , introducing renewable energy certificate or negative emission refunding schemes has a significant impact on the economic viability of these technologies . environmental impact assessments show that in the msw - ccs model , for each kg of wet msw incinerated around 0 . 7 kg co 2 , eq is removed from the atmosphere .
want to join the low carbon energy investor forum ? use the code “lcei15” for a 15 % registration discount .
as of 2017 , at least 21 commercial - scale carbon capture projects are operating around the world with 22 more in development . industrial processes where large - scale carbon capture has been demonstrated and is in commercial operation include coal gasification , ethanol production , fertilizer production , natural gas processing , refinery hydrogen production and , most recently , coal - fired power generation .
so let’s stop entangling ccs inappropriately with arguments against related energy systems , because we can decouple ccs from these system is we choose . if we keep conflating ccs with these other arguments , we risk throwing out the ccs baby with the coal bathwater .
more than half of the models cited in the intergovernmental panel on climate change’s fifth assessment report required carbon capture for a goal of staying within 2 degrees celsius of warming from pre - industrial days . for models without carbon capture , emissions reduction costs rose 138 percent .
2003 : core energy / south chester gas processing plant in michigan . co 2 is captured by core energy from natural gas processing for eor in northern michigan with over 2 million mt captured to date .
the goal of the carbon capture innovation challenge is twofold : first , to identify and prioritize breakthrough technologies ; and second , to recommend research , development , and demonstration ( rd & d ) pathways and collaboration mechanisms .
the global ccs institute has published its annual major report on the latest developments in carbon capture and storage ( ccs ) . the global status of ccs : 2015 presents the most comprehensive overview of large - scale ccs projects and policy developments , the importance of the upcoming international climate discussions , new technology developments and further progress towards the emergence of coordinated industrial hubs and clusters . in the latest report the growing importance of negative emissions technologies is highlighted . net negative emissions technologies including bio - ccs or bioenergy with ccs ( beccs ) are a group of technologies that result in an overall decrease in atmospheric greenhouse gas concentrations . in this insight the institute ' s alice gibson , principal manager capacity development , introduces bio - ccs .
early commercial applications of carbon capture focused on certain industrial processes that remove co 2 in concentrated streams as part of normal operations . for other industrial processes and electricity generation , current systems must be redesigned to capture and concentrate co 2 , usually using one of these methods :
global ccs institute large scale ccs facilities database , note : this database excludes four u . s . projects located in kansas and michigan and described above under “carbon capture milestones . ”
with carbon dioxide levels now 40 per cent above pre - industrial levels , it is critical that we begin the conversation now about how to sustainably integrate carbon - removal technologies into national climate policies with long - term carbon - reduction signals and deployment incentives . starting this now means we can address the risks and maximise the opportunities that carbon - removal technologies present .
“anything that can be attached to any plants that are emitting carbon , either it’s a full power plant , a bioenergy burning biomass to produce electricity or carbon capture storage that is associated to industrial processes which release carbon , ” he says . the captured carbon can then be disposed of deep underground in abandoned oil and gas wells , saline aquifers , or in the kind of geology that locks it away chemically .
keith dw , ha - duong m , stolaroff jk ( 2005 ) climate strategy with co2 capture from the air . climatic change 74 ( 1–3 ) : 17–45
these changes in trade of primary energy commodities have a profound effect on the regional economy , especially for fossil fuel exporting regions , as well as for national energy independence . figure 6 shows the share of energy traded compared to total domestic energy consumption ( negative numbers indicate import ) , an indicator of the reliance of regions on imported energy . again , unavailability of ccs technologies affects current energy exporters ( regions exporting fossil fuels ) by reducing their net energy exports , and favors those regions that produce and export biomass , such us the eastern part of the european union .
eighty - five per cent of ipcc scenarios ( or 101 of 116 scenarios ) consistent with the 2°c goal , require global net negative emissions before 2100 , typically through bio - ccs and afforestation ( sabine fuss et al , betting on negative emissions , 2014 ) .
the radical difference between negative carbon emissions and other energy systems becomes evident when looking at figure 5 . fossil fuels increase the amount of co 2 in the atmosphere in absolute terms . as fossil coal and oil , which are not part of the natural carbon cycle , are extracted and combusted , co 2 is added to the atmosphere . fossil fuels with ccs also increase the amount of co 2 , but not as much as without ccs . renewable energy generated by wind , solar , geothermic and hydroelectric power plants affects the carbon cycle to a very limited extent , once in operation . bio - energy emits as much carbon as the biomass previously captured . beccs however only emits parts of the previously captured co 2 , and the rest is permanently removed from the atmosphere .
this three - part series explores cee research on carbon capture , utilization , and storage ( ccus ) . part 2 continues by focusing on how ccus could impact the underground environment , while part 3 looks at efforts to develop a risk assessment framework for use in ccus operations .
the largest and most detailed techno - economic assessment of beccs was carried out by cmcl innovations and the tesbic group ( techno - economic study of biomass to ccs ) in 2012 . this project recommended the post promising set of biomass fuelled power generation technologies coupled with carbon capture and storage ( ccs ) . the project outcomes lead to a detailed “biomass ccs roadmap” for the u . k . .
developing sustainable and economically - viable carbon removal solutions will require significant investments in research and development .
carbon capture technology has been deployed at several industrial projects in north america dating back to the 1970s but its application to power generation is relatively recent .
armed with information about the opportunities and challenges of carbon removal , a broad coalition of business and environmental interests will emerge to support the development of carbon removal solutions — no entrenched interest gains from keeping carbon in the air , so no entrenched interests have an economic incentive to fight the development of carbon removal solutions .
2014 : saskpower boundary dam project in saskatchewan , canada . saskpower completed the first commercial - scale retrofit of an existing coal - fired power plant with carbon capture technology , selling co 2 locally for eor in saskatchewan .
1996 : sleipner co2 storage facility offshore of norway . this project captures co 2 from gas development for storage in an offshore sandstone reservoir . it was the world’s first geologic storage project . roughly 0 . 85 million tonnes of co 2 is injected annually for a cumulative total of over 16 . 5 million tonnes as of january 2017 .
besides carbon taxes and cap - and - trade programs , few other approaches to carbon pricing have been proposed . but the development of carbon removal solutions – i . e . processes that remove and sequester carbon from the atmosphere – could provide an opportunity for a new type of “pre - pay” carbon pricing system that avoids many of the pitfalls of today’s carbon pricing proposals .
a key technical challenge for bio - ccs is that biomass - fired power plants are usually smaller and more dispersed than coal plants , which may result in reduced economies of scale when compared to larger ccs plants .
carbon capture can achieve 14 percent of the global greenhouse gas emissions reductions needed by 2050 and is viewed as the only practical way to achieve deep decarbonization in the industrial sector .
rhodes js ( 2007 ) carbon mitigation with biomass : an engineering , economic , and policy assessment of opportunities and implications . engineering and public policy . carnegie mellon university , pittsburgh , p 344
beccs is a mitigation tool that can be added as a supplement to other measures , on top of bio - energy use . the application of beccs would make it possible to reach agreed climate targets at lower costs , and also involves considerable opportunities to raise the ambitions for the level of emission reductions and the pace of climate mitigation work . with ambitious beccs implementation schemes , countries such as
one approach gaining traction in recent years is generating bioenergy along with carbon capture and storage , known by the acronym “beccs . ” some argue that beccs occupies a key role in the global plan to fight climate change . although regarded as one of the most viable , cost - effective negative emissions technologies , there are still multiple major challenges to its widespread implementation .
the environmental advocacy group greenpeace recently released a report lambasting carbon capture and storage ( or “ccs” ) as “a false climate solution” that “ [ i ] n no uncertain terms…hurts the climate . ” the greenpeace analysis , however , made a number of assumptions that fit the conventional wisdom surrounding ccs , but when analyzed with greater scrutiny turn out to be deceptively misleading .
the candidate and training the phd will provide the student with an outstanding opportunity to work with world - leading energy and environment specialists and to gain a thorough training in ecosystems management , biological carbon and bioenergy science , gis , energy pathway analysis , systems modelling . the ideal candidate should have at least an upper second class degree and preferably a masters that combines biological , environmental or technological knowledge of relevance to the topic . strong quantitative / mapping skills would be of value .
energy is captured at a rate of approximately 1 , 000 tons per day and injected into a nearby oil field operated by core energy in the northern reef trend of the michigan basin .
the sustainability issue of beccs is complex in detail , as it involves both biomass as well as ccs systems , both of which involve many sub - systems . issues span from biomass availability and geologic storage capacities to water use , competition for land and risk of storage leakage .
yet the climate benefits of driving cars with corn - based ethanol instead of fossil fuels remain contested — even in combination with the ccs technology .
as atmospheric carbon dioxide rises above 400 parts per million ( ppm ) for the first time in human history , there’s even talk of direct capture of carbon dioxide , using huge versions of the atmospheric scrubbers that remove carbon dioxide from the air on board spacecraft .
results from the scenarios explored here show that the introduction of a climate policy likely to maintain climate change below about 2 °c will dramatically shift energy and biomass use and trade . in the 2 degree scenario primary energy use , shown in figure 4 , is considerably reduced compared to the baseline , as the carbon price leads to increased energy efficiency and reduced demand for final services . additionally , ccs significantly contributes to the portfolio of technologies deployed : ~ 17 gt co 2 yr −1 are stored using ccs technologies in 2050 , primarily for electricity and liquid fuels production , with beccs accounting for 50 % of it . about 31 gtco 2 yr −1 are stored using ccs in 2100 , with beccs responsible for 55 % . if ccs is not available the energy reduction is more pronounced ( a consequence of higher carbon prices ) , and renewables , nuclear and biomass take on a larger share of primary energy use , with biomass becoming the dominant energy source by 2100 .
while beccs is not as known a technology , conventional ccs ( carbon capture and storage ) has been increasingly discussed in recent years , and proposed as a key technology to mitigate co 2 emissions . in most contexts , ccs technology is commonly associated with large coal - fired power plants , but it can also be used to reduce emissions from , for example , gas power plants , steel mills and cement manufacturing plants .
both bioenergy and ccs face challenges in their deployment . large - scale use of bioenergy , for example , might lead to significant indirect land - use change emissions , and / or interactions with food prices and availability . while we have illustrated the effects of including beccs and ccs in the portfolio of mitigation options ( e . g . , lower carbon prices , lower food prices , etc ) , ccs technologies have not yet been deployed at large scale . such deployment may require the establishment of institutions and policies to support and regulate their use . moreover , additional technological challenges may arise with large scale ccs use ( e . g . , related to capture , transport , and storage of co 2 ) . however , the technological challenges do not appear to be fundamentally changed when ccs is combined with bioenergy compared to other applications . technological and institutional challenges related to large - scale bio - energy and ccs deployment need to be addressed before scenarios such as the ones presented in this paper could be realized .
in 2014 , investors allocated $ 310b in capital to clean energy projects according to bloomberg new energy finance , making up a significant portion of the ~ $ 1 . 5t in total global investment in energy supply as estimated by the international energy association ( “iea” ) . what’s more , the iea predicts we will need over $ 40t in cumulative energy investment by 2035 to meet energy needs , suggesting that the amount of capital needed to be deployed annually for clean energy projects will have to increase by an order of magnitude over the coming decades to meet the dual goals of preventing climate change and powering the world’s economy .
j . nucl . energy , part c plasma phys . ( 1959 - 1966 )
how to use waste heat at power facilities to reduce energy usage in water desalination .
oil and gas reservoirs ( enhanced oil recovery with carbon dioxide , co 2 - eor ) . oil and gas reservoirs offer geologic storage potential as well as economic opportunity by injecting co 2 to extract additional oil from developed sites . oil and gas reservoirs are thought to be suitable candidates for the geologic storage of co 2 given that they have held oil and gas resources in place for millions of years , and previous fossil fuel exploration has yielded valuable data on subsurface areas that could help to ensure permanent co 2 geologic storage . co 2 - eor operations have been operating in west texas for over 30 years . moreover , revenue from selling captured co 2 to eor operators could help defray the cost of capture technology at power plants and industrial facilities .
with this in mind , we set out to examine the role that beccs could play in australia . we teamed up with one of australia’s leading energy modellers – jacobs skm – to model how australia can adapt its behaviour and technologies to meet ambitious climate goals .
the role of carbon removal technologies and to allow this study to take place .
klemetsrud ( oslo ) waste management and energy recovery ccs project . available at urltoken . accessed september 19 , 2016
geoengineering monitor is a joint project of biofuelwatch and etc group , with support from heinrich boell foundation .
as the clean energy finance community grows , it also pioneers new ways to finance low - carbon energy projects . the past few years are no exception : publicly - traded yieldcos have flourished , asset - backed securitization has helped reduce cost of capital for distributed generation companies , and public - private partnerships have helped increase clean energy deal flow .
the pittsburgh region is a global hub of energy research and innovation with particular focus on fossil fuel ( coal , oil , natural gas ) , nuclear , and wind . all eess faculty are engaged in research to improve the environmental sustainability of conventional and unconventional fossil energy extraction and use . projects aim to enhance the understanding of environmental processes related to the protection of air , water , and land resources ; to develop new technology for reduced environmental impact ; and to develop energy transition strategies .
successfully testing and demonstrating ccs technologies under real - world conditions are important steps toward the eventual commercial deployment of ccs technologies . the technologies applied and lessons learned from this project will also support industry in the region looking to develop co 2 capture and transport infrastructure , whether it is for carbon storage or for enhanced oil recovery in the depleted oilfields of the illinois basin .
these financial innovations that enable low - carbon projects have enormous implications for “negative - carbon” projects that scientists increasingly project we will need but that have only just begun to develop . low - carbon technologies like energy efficiency and renewable energy have had several decades to de - risk technical , regulatory , and financial barriers , and sit well poised to expand rapidly . negative - carbon approaches must leverage as much of the experience of low - carbon projects as possible if they are to develop to appropriate scale quickly enough to prevent climate change .
there is strong bipartisan support to accelerate carbon capture deployment . in february 2018 , congress extended and expanded key financial incentives for investment in several advanced low - carbon technologies . the two - year budget package included the future act , sponsored by senators heidi heitkamp ( d - n . d . ) , shelley moore capito ( r - w . va . ) , sheldon whitehouse ( d - r . i . ) , and john barrasso ( r - wyo . ) . the legislation reforms and extends a federal tax credit to boost carbon capture , known as section 45q . the future act also allows for the first time use of the tax credit for capture of carbon monoxide from industrial facilities like steel mills , direct air capture of co 2 from the atmosphere , and for the conversion of captured carbon into useful products .
opponents to carbon removal will mostly object to the specifics of how carbon removal is accomplished / implemented , not to the overall need for carbon removal to fight climate change .
globally , power and industry account for about 50 % of all greenhouse gas ( ghg ) emissions . carbon capture , utilisation and storage ( ccus ) can achieve significant co 2 reductions from power plants ( fuelled by coal , natural gas , and biomass ) and industrial applications ( figure 1 ) . industrial applications of ccus include upstream oil and gas production , cement production , iron and steel production , and fertilizer manufacturing . these large ( > 100 , 000 t co 2 / yr ) point sources of co 2 emissions have few alternative options for significant reductions . efforts to integrate bioenergy with ccus also represent a pathway to negative emission technologies , which models suggest will become increasingly important in achieving deep decarbonisation . technology could capture co 2 from , for example , the waste stream of bioenergy facilities for storage .
a portfolio of traditional greenhouse gas mitigation measures ( renewable energy , energy efficiency , avoided deforestation , etc . ) and a portfolio of gigatonne - scale carbon removal solutions ( both biological and chemical ) are necessary to limit temperature increases to 2 degrees c if we also want to avoid geoengineering .
pre - combustion carbon capture : fuel is gasified ( rather than combusted ) to produce a synthesis gas , or syngas , consisting mainly of carbon monoxide ( co ) and hydrogen ( h 2 ) . a subsequent shift reaction converts the co to co 2 , and then a physical solvent typically separates the co 2 from h 2 . for power generation , pre - combustion carbon capture can be combined with an integrated gasification combined cycle ( igcc ) power plant that burns the h 2 in a combustion turbine and uses the exhaust heat to power a steam turbine .
this is where negative emissions technologies come in . the term covers everything from reforestation projects to seeding the stratosphere with sulphates or fertilising the ocean with iron fillings .
most future scenarios of the energy systems needed to avoid dangerous climate change involve the removal of atmospheric carbon dioxide later this century ( referred to as a ‘negative emissions’ technology ) . beccs is currently the only technology with the potential to remove carbon from the atmosphere at a global [ … ]
plants absorb co 2 from the atmosphere and use this co 2 to grow , through a process called bio - sequestration . this is part of the natural carbon cycle . when these plants are combusted to produce energy , or are processed in an industrial facility ( e . g . pulp plants ) , the co 2 is released back into the atmosphere . energy produced from biomass is usually accounted for as ‘carbon neutral’ , because it absorbs the co 2 , but then that co 2 is released back into the atmosphere when combusted or processed .
misleading assumption 3 : underground storage of carbon is required for sequestration . does carbon have to be stored underground ? no . we can turn it into cement , plastics , or any number of other solid products . will there be issues with storing large volumes of solid carbon above ground ? probably . but we can get around the geologic sequestration problem if we wanted to accomplish this goal .
professors jeanne vanbriesen and kelvin gregory develop technology and fundamental understanding of the implications and applications of microbiology for environmental processes . research is focused on bioenergy , nanotechnology , environmental restoration and improving fossil energy extraction .
policies should include a reward system for carbon - removal technologies such as carbon pricing with credits , or escalating performance standards . in australia , this could be as part of the current energy white paper process , but also setting targets of 25 per cent reduction from 2000 levels by 2020 and around 60 per cent by 2030
figure 6 . global net trade of fossil fuel and biomass energy as fraction of domestic consumption by gcam region in 2010 and in 2100 . 100 % includes 100 and above .
professors chris hendrickson and costa samaras , in collaboration with faculty from engineering and public policy , mechanical engineering and the robotics institute , study the environmental impacts of hybrid and plug - in electric vehicles . research aims to guide the energy - related decisions of policy makers and consumers , and focuses on life cycle implications , battery technology , vehicle systems , and public policy .
even the most optimistic models of climate change suggest a sobering reality : making a significant dent in carbon emissions may require removing carbon from the atmosphere , not just mitigating it . “the math tells us we need carbon - removal processes of some kind , ” says julio friedmann , principal deputy assistant secretary for the office of fossil energy at the us department of energy .
washington — a u . s . department of energy ( doe ) - funded project demonstrating the commercial viability of carbon capture and storage ( ccs ) in the illinois basin has reached its halfway point , injecting 500 , 000 metric tons of a planned 1 million metric tons of carbon dioxide ( co 2 ) in a deep saline formation . the illinois basinâ€“decatur project , conducted by the midwest geological sequestration consortium , is part of the development phase of doe ' s regional carbon sequestration partnerships initiative , which is developing and validating ccs technologies as part of a national strategy to reduce greenhouse gas emissions and mitigate climate change .
keith dw , rhodes js ( 2002 ) bury , burn or both : a two - for - one deal on biomass carbon and energy . climatic change 54 ( 3 ) : 375–377
as expected , the study also reaffirmed the need for zero - emission renewables and other low - carbon technologies to play a key role regardless of whether beccs becomes viable or not . for example , energy efficiency and other renewable energy sources like wind and solar are required to reduce electricity emissions by 50 per cent in 2030 across all scenarios .
the release of carbon dioxide into the atmosphere by human activity is caused both by extraction and combustion of fossil fuels and by clearance of forests where large amounts of carbon are stored as biomass . carbon sequestration through reforestation ( long - term storage of carbon in plants and trees ) , offers potential to remove carbon dioxide from the atmosphere . reforestation is not only about maximising the amount of carbon stored per unit of land area . for example , to protect biodiversity and preserve habitat , a mix of plant species is desirable , as opposed to monocultures . see sustainable forestry initiative ( us ) and sustainable foresty and the european union . latest publications on ccs can be found here .
keith dw ( 2000 ) geoengineering the climate : history and prospect . annual review of energy and the environment . annu rev 25 ( 1 ) : 245–284
the oceans are of particular interest for negative emissions because of their enormous capacity for carbon dioxide . one proposal is to fertilise the oceans with powdered iron or olivine . this boost in important nutrients leads to an increase in phytoplankton which , when it dies , decomposes and sinks to the seafloor , taking the carbon with it .
to achieve the climate change mitigation objectives agreed at the cop21 in paris , most future emission scenarios assume the large - scale deployment of still - unproven and poorly understood technologies for removing co2 from the atmosphere . one of the most likely candidates for bringing about these ‘negative emissions’ is beccs , or bioenergy with carbon capture and storage , which promises to convert large amounts of bioenergy crops into combustible fuels , utilize them for energy generation , capture the released co2 and permanently store it underground . policy makers are largely unaware of the assumptions that current models are built on , or of the social consequences that the deployment of beccs , at the scale needed , would entail . this presentation gives an overview of some main trends in the development of beccs and highlights current and future concerns .
the advent consortium : urltoken advent ( addressing valuation of energy and nature together ) is a 5 year research project funded by nerc as part of the rcuk energy programme . it involves a consortium of seven partner institutions and aims to develop conceptual frameworks and modelling tools to integrate the analysis of prospective uk energy pathways with considerations relating to the value of natural capital . this will include quantifying the implications of differing future uk low - carbon energy pathways for stocks of natural capital ( e . g . groundwater and natural habitats ) and for the provision of ecosystem services ( e . g . irrigation , visual amenity , recreation . ultimately , the project seeks to provide both public and private sector decision makers with tools that allow them to take a whole - systems perspective on energy futures in a way that integrates energy and environmental considerations . developing future research capacity at the interface of energy and environmental research is an important objective of advent . to this end eight phd studentships of 3 - 4 years duration are being funded from nerc and consortium partner resources . the holders of these studentships will benefit from being part of a large research team and associated project activities , including a series of workshops to provide advanced research training .
it assessed the technology gaps and the likely time - scales involved for implementation . the findings have informed further work and projects in both our bioenergy and ccs programmes . biomass conversion to power combined with ccs could provide the uk with substantial net negative co2 emissions .
other negative - emission technologies have not moved beyond theoretical studies or small - scale demonstrations . alternative and adjusted agricultural practices , including biochar , may increase carbon uptake in soils ( 9 ) . it may also be possible to use direct air capture to remove co2 from the atmosphere via chemical reactions , with underground storage similar to ccs . enhancing the natural weathering of minerals ( rocks ) may increase the amount of carbon stored in soils , land , or oceans . introduction of biological or chemical catalysts may increase carbon uptake by the ocean . new technologies , designs , and refinements may emerge over time .
my posting frequency has been slower than i’d like over the past few months as i’ve worked with an amazing team of advisers and partners to get the center ready for launch , but our team at the center plans to post content with greater frequency on the new site . what’s more , out website ( urltoken ) aims to provide our community with a growing range of tools to continue the dialogue on carbon removal , discover new information about promising carbon removal solutions , and share information with other communities that are passionate about sustainability , fighting climate change , and cleantech entrepreneurship .
international energy agency ( ccs unit ) , indonesia’s presidential delivery unit ukp4 , iiasa nmo for indonesia .
later this month , many low - carbon financial success stories will be on display at the low carbon energy investor forum 2015 in downtown san francisco . i’m excited to be speaking at the event , as the agenda includes conversations on emerging financial innovations , technology developments , and policy support needed to scale low - carbon developments .
today , there is growing bipartisan support for governments across the world to price carbon emissions . moving from theory to practice , however , has proven challenging , as the two leading approaches to pricing carbon , carbon taxes and cap - and - trade programs , only cover about 12 % of all carbon emissions globally today .
if carbon taxes and cap - and - trade programs continue to languish as politically infeasible , however , we will need some way to efficiently reduce net carbon emission levels . and even if other carbon pricing systems do take off , a complementary “pre - pay” policy could prove beneficial for stimulating early commercial demand for carbon removal solutions . as such , investing today in research and development to lower the cost of carbon removal approaches and to improve the efficiency of monitoring and verification efforts would have an enormous payoff if it led to a politically feasible “pre - pay” carbon policy .
) and from carbon credits created through programs , such as the low - carbon fuel standard enacted by the state of california . carbon credits are sold in california for $ 120 a ton , meaning that if adm pipes one million tons of carbon underground every year , they will reap $ 120 million per year in the low - carbon california fuel market .
we are gaining great traction over at the center for carbon removal . make sure to check out our blog and follow us on twitter @ carbonremoval , and continue the carbon removal conversation there !
1986 : exxon shute creek gas processing facility in wyoming . this natural gas processing plant serves exxonmobil , chevron , and anadarko petroleum co 2 pipeline systems to oil fields in wyoming and colorado and is the largest commercial carbon capture facility in the world at 7 million tons of capacity annually .
read how iiasa works with research partners across the globe to deliver world - class research .
items in spiral are protected by copyright , with all rights reserved , unless otherwise indicated .
the facility operated by ethanol giant archer daniels midland , dubbed the illinois industrial carbon capture project , arrives at a time of uncertainty for the u . s . and global biofuels industry . it faces growing competition from electric vehicles , and continuing struggles to move beyond so - called “first generation” feedstocks like corn , which can create conflicts with food supplies .


redox brands was a marketing company formed in 2000 by todd wichmann and richard owen , former executives with the multinational consumer products firm procter & gamble ( p&g ) .

the company 's first product was oxydol brand purchased from p&g .

p&g would continue manufacturing oxydol and provide back office support .

redox had won out over private label companies in the purchase of oxydol .

biz was purchased in an auction from p&g in the summer of 2000 .

forbes estimated that oxydol was sold for $ 7 million and biz for greater than $ 40 million .

in one year , oxydol sales were 800 % greater than when acquired .

in march 2001 , allied capital made its first investment in redox and made an addition investment in august 2002 .

in 2002 , wichmann left redox for another startup , healthpro brands .

allied capital acquired chempro , inc. in march 2006 .

allied then merged redox and chempro , inc. , with the resulting company being renamed cr brands .

redox brands

chempro , inc . will be merged with redox brands , a majority - owned portfolio company of allied capital , to form cr brands , inc .
chempro is a consumer products company that manufactures and markets branded and private label heavy - duty household cleaning products . its primary brands include mean green , pine power and magnum power . with the merger of redox brands , its primary cleaning / detergent brands of biz and oxydol will fall under chempro ' s production .
allen mcintyre of spartanburg ' s chempro has been named chief executive officer of cr brands , and rich owen from redox has been named chief operating officer .
allied originally invested in redox in march 2001 . it followed up with another investment in august 2002 . owen and redox co - founder todd wichmann have a minority stake in the company . wichmann left redox in 2002 to start healthpro brands inc . , which has licensed fit fruit and vegetable wash from procter . but he still holds his original ownership in redox .
chips off the p . & g . block ; can a start - up clean up with cast - off brands ?
that makes redox a small part of allied ' s $ 2 billion portfolio , napoli said .
besides , many industry experts say , giants like procter & gamble do not shed brands unless they have a good reason to do so .
chips off the p . & g . block ; can a start - up clean up with cast - off brands ? - the new york times
in some ways , redox ' s timing could not be better : behemoths like p . & g . , hoping to assuage wall street ' s anxiety over sagging earnings , are becoming more aggressive in dropping brands that are no longer among the market leaders .
two former procter & gamble co . executives formed the west chester - based consumer products firm in 2000 . it bought the oxydol and biz brands from procter shortly after .
first , instead of buying the leader in small markets - - a model exemplified by aurora foods inc . , which has bought brands including duncan hines , log cabin and van de kamp ' s , with some success - - they will buy small brands in large markets . that way , they can focus on competing for customers rather than trying to expand a market .
he and mr . owen had just quit their jobs at p . & g . to form redox brands inc . , a company that specializes in buying once - famous laundry and cleaning brands that giants like their former employer are discarding . their first - - and so far only - - purchase was procter & gamble ' s oxydol laundry detergent brand , in a deal that calls for p . & g . to continue to be involved in the product . the financial terms of the deal have not been disclosed .
chempro sells its products through discount stores , as well as through grocery chains . redox sells its products primarily into the mass and grocery channels .
mr . wichmann , the redox president , and mr . owen , the chief operating officer , also say they have two distinct tactical advantages .
and as companies like proctor & gamble and unilever scramble to shed old brands , mr . wichmann and mr . owen have a steady stream of product offerings from which to choose . in addition to oxydol , for example , p . & g . recently put biz , a bleach detergent , up for sale . ( the men would not comment on whether redox was considering acquiring it . )
their professor , sandy eustis , was impressed by their enthusiasm but did not like their business plan . he voiced concerns that have since been echoed by redox ' s critics .
it makes more sense this year to harvest your investments ,
he said .
redox is doing well , and the pricing is attractive , so it would be logical .
when we decided to take our company to market we knew we had a pretty good base . with us servicing our core stores and redox in the midwest and southwest we ' re a much stronger company .
redox seems like one of the investments that has worked out for them ,
napoli said .
this year , prices for buyouts have gone up , so if they have the chance to sell some of those , it would make sense .
robert napoli , an analyst who tracks allied capital for piper jaffray & co . in chicago , said he wouldn ' t be surprised if allied tried to sell redox . allied has sold some investments this year as the market for selling private companies has improved .
although p . & g . would not comment on its relationship with redox or the specifics of the deal , it said in a prepared statement that oxydol , which represented a minute portion of company sales , ' ' no longer provided a strategic fit . ' '
spartanburg , sc — chempro inc . , a chemical company started in spartanburg 16 years ago as a manufacturer of cleaning supplies , has been acquired by allied capital corp . for $ 99 . 2 million , according to an article on the spartanburg herald - journal ”s website , urltoken . chempro will merge with redox brands , a majority - owned portfolio company of allied capital , to form cr brands inc . , according to the article . in the article , john shulman , managing director of allied capital , said : “the combination of chempro and redox represents a major strategic opportunity for both companies . from the opportunity to cross - sell products through their complementary channels , to the significant operational advantages from streamlining production , purchasing and distribution , the combination of these businesses makes enormous sense . ” click here to read the full article . for related information , click here . to return to today”s news , click here . to discuss this topic with other industry professionals , click here . for a free subscription to cm e - news daily tm , the daily news service for the building maintenance industry , click here . for a free introductory subscription ( or subscription renewal ) to cm / cleaning & maintenance management® magazine , the leading publication for the facility maintenance and contract cleaning industries , click here .
the combination of chempro and redox represents a major strategic opportunity for both companies ,
said john shulman , managing director of allied capital .
from the opportunity to cross - sell products through their complementary channels , to the significant operational advantages from streamlining production , purchasing and distribution , the combination of these businesses makes enormous sense .
p . & g . was impressed by their plan . company officials even spoke to venture capitalists on their behalf , the pair said , and a group of investors led by the meriwether capital corporation in new york agreed to finance redox . the deal for oxydol was completed in a month , and both men were allowed to keep their jobs until it was done .
under the deal , procter & gamble , arguably the american consumer products company with the greatest influence among retailers , will still take care of the ordering , shipping and billing systems used for oxydol , which will continue to be made at a p . & g . plant . it also has an undisclosed minority stake in the company . redox , based in the cincinnati suburb of west chester , ohio , will be making the strategic decisions .
the cost of allied ' s investment in redox was listed at $ 22 . 2 million june 30 , according to allied ' s form 10 - q filing with the securities and exchange commission . that was mostly through debt securities and preferred stock , but it also includes a $ 3 . 2 million loan and warrants worth about $ 500 , 000 . its total investment is now valued at $ 25 . 35 million , according to the filing , thanks to an increase in the value of its preferred stock .
lately , mr . owen and mr . wichmann have been busy preparing oxydol for the first redox ship date this september . and in a recent conference call , they discovered some of the difficulties of being so closely tied to procter & gamble . for every 600 boxes sold , the men want to give retailers 300 boxes free . p . & g . ' s system is not configured to handle free boxes , so they have to find another way to distribute them . they are also working on formulating a liquid detergent , and preparing a radio campaign .
chempro , inc . , a company that started in spartanburg 16 years ago as a producer of cleaning supplies , has been acquired by allied capital corp . for $ 99 . 2 million .
this company is a real nice story ,
mcintyre said .
i grew up in this company when i came to spartanburg 16 years ago . we took some pretty good products and pushed hard .
chempro retains its 75 employees . it is headquartered in spartanburg and has a warehouse in cowpens . mcintyre said he expects growth to occur .
we produce the products so there will be some growth . we ' re landlocked here ( 141 venture blvd . ) . cowpens is an option . but we have time to see what we need to do ,
mcintyre said .
we ' ve sold our product to family dollar , dollar general and wal - mart so we have a solid base ,
mcintyre said .
allied capital ' s acquisition financing took the form of debt and common equity .
allied capital corporation , a washington , d . c . - based business development company with total assets of more than $ 4 billon , invests in american companies seeking a long - term financial partner and access to managerial resources often unavailable to smaller companies .
the company ' s private finance portfolio includes investments in more than 100 companies that generate aggregate revenues of more than $ 10 billion and employ more than 90 , 000 .
jim fair can be reached at 562 - 7267 or jim . fair @ urltoken
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todd wichmann and richard owen barreled into the procter & gamble headquarters last month and were about to head upstairs when the security guard stopped them .
waiting for permission to enter a place they had worked almost all their adult lives felt ' ' bizarre , weird , ' ' mr . wichmann ( pronounced wick - man ) said as he fiddled with his red visitor ' s badge .
but building a strong company out of a collection of jilted labels is tough going . other companies , notably in the food industry , have tried ; few have succeeded .
' ' buying an orphaned brand isn ' t necessarily a challenge , ' ' said david a . goldman , director of equity research at suntrust equitable securities . ' ' consolidating them into one entity that makes sense , has operational efficiencies , and has critical mass , well , that ' s another matter . ' '
oxydol was p . & g . ' s oldest brand of laundry detergent , introduced in 1927 . while it has a long history - - it sponsored the ' ' ma perkins ' ' radio show , the first so - called soap opera , in 1933 - - naysayers doubt that a rich heritage convinces consumers to buy a detergent .
' ' the question is : is oxydol such an ancient brand that it is valueless and not worth it to revive it ? ' ' said clive chajet of chajet consultancy , a branding consultant in new york . ' ' as far as i ' m concerned , they ' re starting from scratch in a category where it ' s hard to differentiate one brand from another . ' '
sales of oxydol have been sinking over the decade and are dwarfed by those of the market leader , p . & g . ' s tide .
despite all this , mr . wichmann , 30 , and mr . owen , 31 , are convinced they will succeed . their aim is to increase oxydol ' s share of the $ 6 billion market for liquid and powdered detergent to 2 percent in the next five years from its current one - tenth of a percent . ( by comparison , mr . wichmann said , tide now has around 35 percent of the market . )
though they are dealing in an old - economy business , they say , they are helped by some new - economy factors . the expansion of contract sales makes it easier for them to hire a company to sell their products . internet technology allows them to hold ' ' virtual ' ' meetings with business contacts , slashing travel costs .
second , they can tailor their packaging and pricing to fit the needs of smaller retailers , something that larger , bureaucratized companies cannot do .
' ' twenty years ago or even five years ago , there was no way to do what we ' re doing , ' ' mr . wichmann said . ' ' we want to be a virtual organization . we don ' t want any plants . we don ' t want any money going to fixed assets . ' '
he can make such a bold statement in part because he has p . & g . in his corner .
mr . wichmann and mr . owen acknowledge that their former employer influences their decisions . ' ' our relationship with p . & g . is very important and we do live by their rules , ' ' mr . wichmann said .
though bitten by the entrepreneurial bug early on , the men were , after all , trained by the company whose employees are widely known as ' ' proctoids , ' ' distinguished by their efficiency and obedience .
mr . owen and mr . wichmann met as interns at the company in the summer of 1991 , both researching laundry detergents . they cemented their relationship when they returned after graduating the next year . though both started at p . & g . as chemical engineers , mr . wichmann , who worked on oxydol early on , later went into marketing while mr . owen joined the sales and finance side .
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they started business school together in 1994 , attending xavier university at night . for their final project , the pair designed the american detergent corporation , a hypothetical company that bought oxydol from procter & gamble - - a brand they said they chose somewhat randomly .
' ' i said , ' why would you want to go into a business that ' s dominated by huge players ? ' ' ' recalled dr . eustis , who is now executive director of the center for adaptive management , a nonprofit research group in cincinnati . ' ' it ' s a slow - growth , mature industry dominated by large players who spend huge sums of money on consumer marketing and advertising , and that presents real difficulties for a smaller , entrepreneurial company . ' '
the men were not deterred . when the announcement of the oxydol sale popped up on the office intranet in march , mr . wichmann knew he had to talk to mr . owen .
p . & g . had long neglected oxydol ; the detergent did not even have the company ' s fixture of a brand manager to babysit the product . though p . & g . did not see much of a future for the brand , the two men did .
while he drove home the night of the announcement , mr . wichmann called mr . owen from his cell phone . all he needed to say was , ' ' hey , rich , american detergent corporation might be in business . ' '
as they hatched their plans over the weekend , mr . wichmann said , they found themselves in a chicken - and - egg situation .
they had to persuade p . & g . to sell the brand to them instead of to an established company with deep pockets . ' ' we knew we needed to have a big angle for procter & gamble to want to do this , ' ' mr . owen said . ' ' this thing had to be much bigger than just oxydol . ' '
to do that , they needed to assure p . & g . that they had strong backers . but to get those backers , they had to convince venture capitalists that p . & g . was intent on completing the sale . they also needed to keep their identity a secret so that if the deal did not go through , they would still have their jobs .
' ' there really was this covert operation going on , ' ' mr . owen said . mr . wichmann decided they needed some outside help , so he called dr . eustis , who referred him to robert buechner , a childhood basketball buddy and cincinnati lawyer .
the lawyer was intrigued with their idea . he helped them write an anonymous bid and began introducing them to venture capitalists , bankers and accountants .
during their lunch breaks and before and after work , mr . wichmann and mr . owen would meet with potential backers . they decided to wear khakis and shirts , the unofficial procter & gamble uniform , to those meetings .
' ' if you wear a suit at procter and gamble , that ' s a sign you ' re interviewing , ' ' mr . wichmann said . ' ' i didn ' t want to tip my hand . ' '
after two months of sub rosa maneuvering they had to reveal that they were the anonymous bidders for oxydol at p . & g . ' s demand . the men made a point of telling their respective bosses on the same day .
' ' i actually had one of my bosses say , ' rich , have you thought this through ? ' ' mr . owen said . ' ' ' what happens if procter & gamble considers you a competitor ? ' i thought , i ' ve got my family and my resume . ' '
they are trying hard , meantime , to establish their own identity , separate from procter & gamble .
their first trip back to p . & g . went well . former colleagues kept dropping by , curious how mr . owen and mr . wichmann were making out in what they call ' ' the real world . ' '
while they were getting ready to leave their meeting , mr . owen noticed a small green packet of oxydol on the shelf . ' ' you guys were supposed to turn over all of the product ! ' ' he teased the p . & g . representative . she and the partners shared a laugh .
as he walked toward the elevator , mr . owen slipped the oxydol packet into his back pocket .
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investment firm allied capital corp . is looking to sell its controlling stake in the company , according to sources .
the timing is better now for allied to sell some of its companies than it has been for a while , napoli added .
allied aims to sell its portfolio companies at a significant gain after it holds them for a period of time . it typically buys controlling equity stakes in firms that generate strong cash flow . it often holds its shares for five to 10 years before exiting , allied said on its web site .
wichmann also wouldn ' t be surprised by a sale , given allied ' s structure of getting its investment out of a firm after a while .
like any private company , anything is for sale at any point ,
wichmann said .
nothing is imminent that i know of , but allied has to sell at some point .
it received a windfall earlier this year when it sold cincinnati - based hillman cos . inc . that sale in march to equity firm code hennessy & simmons brought $ 510 million . sale proceeds to allied totaled $ 244 . 3 million , according to the filing . it realized a net gain of $ 150 million . that was allied ' s largest capital gain ever , it said .
hillman was one of allied ' s largest investments . allied still holds $ 42 . 3 million in hillman debt .
allied also has an investment in cbs personnel holdings inc . , a cincinnati - based temporary staffing service provider . allied provided $ 20 million in subordinated debt financing oct . 5 for cbs ' acquisition of venturi partners .
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snack brands australia ( sba ) is one of the largest suppliers of snack foods in australia and acts as the main competitor to the long established the smith 's snackfood company , currently a subsidiary of the american company pepsico .

sba was formed in august 1998 and is owned by parent company snack foods limited .

the company was acquired by universal robina ( urc philippines ) in 2016 .

snack brands australia

a complete range of products and services snack brands australia , company . all information about snack brands australia , company in sydney ( australia ) .
the package of brands and subsidiaries was named ' snack brands australia ' and was sold to dollar sweets holdings , which is now snack foods limited .
australia ' s second largest salty snacks maker snack brands australia for au $ 600 million ( us $ 460 . 55 million or
snack brands australia ceo , mr paul musgrave , said the urc acquisition is a growth oriented transaction .
snack brands australia is an australian snack food manufacturer . snack products are marketed using brands including thins , samboys , kettles , cc’s , french fries , cheezels and the real mccoy’s range including jumpy’s and burger man . snack brands is an 100 % australian owned and operated company .
snack brands australia has grown topline at a compounded annual growth rate of 7 . 4 % in the past 4 years , while its
consolidated snacks trades under the company name snack brands australia , which is the second largest player in australia ' s salty snacks market , with a total market share of close to 30 % .
snack brands australia is a young , 100 % australian owned and operated company , having acquired some of australia’s iconic snackfood brands such as thins , samboy , cc’s , french fries , cheezels and more . each of the brands have a truly unique australian history and hold a special place in the minds and hearts of aussie snackers . combined with the real mccoy’s range including jumpy’s and burger man , the new snack brands australia is predicting strong growth for the snack category .
snack brands australia is a young , 100 % australian owned and operated company that in mid 2008 acquired some of australia’s iconic snackfood brands such as thins , samboy , cc’s , french fries , cheezels and more . each of the brands have a truly unique australian history and hold a special place in the minds and hearts of many australians . combined with the real mccoy’s range including jumpy’s and burger man , snack brands australia has experienced strong growth since 2008 and is now ranked number 2 in australia within the snack foods category .
according to ibisworld , snack brands is the second largest chip manufacturer in australia , behind frito - lay australia , holding around 11 . 4 per cent market share . its brands include cc’s , thins , kettle , natural chip company , cheezels , and samboy . earlier this year snack brands introduced us - based potato rings range , hoop las , to the australian market .
the corporate world is a complicated business , and not one we need to concern ourselves with here . just as pepsi - co own frito - lay and frito - lay own smiths crisps , plus numerous other famous national brands around the globe , snack brands australia appears to own several traditional australian potato chips and snack brands .
with this acquisition , urc said it plans to create a wider footprint in the oceania region , with snack brands australia serving as an anchor in the
highly competitive
australian market .
gokongwei said snack brands is
completely synergistic
with urc and griffin ' s foods , which is new zealand ' s number one snack foods company . griffin ' s was acquired by urc in november last year for
to keep this brief ; snack foods limited was formed in 1999 by owners the campbell soup company , which was in turn a subsidiary of arnott ' s biscuits . in 2008 , campbell arnott ' s sold arnott’s snackfoods to the real mccoy snackfood co . the company is now known as snack brands australia .
chip manufacturer , snack brands australia , has been sold to one of the largest branded consumer food and beverage product companies in the philippines , universal robina corporation ( urc ) , with the deal understood to be worth $ a600 million .
the gokongwei - led snack food maker told the philippine stock exchange ( pse ) on wednesday , august 17 , that its offshore subsidiary urc international company limited entered into an agreement with consolidated snacks pty ltd to acquire 100 % of its shares in snack brands australia in a cash - free , debt - free deal .
urc , a publicly listed company on the philippine stock exchange , will continue to operate snack brands as an independent operation , with management and manufacturing jobs retained .
across the globe , for more than 130 years , quaker brands have served as symbols of quality , great taste and nutrition . launched in australia in 2011 , quaker markets a range of easy to use porridges containing australian grown oats , milled at our quaker mill in perth , western australia .
while we continue to push for innovation as an anchor to sustain our growth , the opportunity came at the right time to acquire a company like snack brands ,
gokongwei added .
bluebird has grown to be the leading snack food manufacturer in new zealand , marketing successful brands like bluebird potato chips , doritos , grain waves , twisties , rashuns , and burger rings .
cio paul knox joined the company in june 2008 and with his team , set about putting in place the new it infrastructure and applications that were needed by the company to move forward in the fast moving fmcg industry . after a thorough search through the it industry , harbour it was selected to partner with snack brands to implement the new it strategy . since the implementation , harbour it has continued to monitor and manage the snack brands it infrastructure . with people and warehouses in every state to support snack brands also utilises the harbour it help desk services on a 24 / 7 basis .
while snack brands is only 9 years young , you’ll no doubt be familiar with our brands and what we do . we are one of australia’s leading snack food companies and are constantly on the lookout for the very best talent . we encourage a culture that is exciting , challenging and we strive for innovation in everything we do . our aim is for our employees to share in our success , enjoy our products and reap the benefits of their hard work within a supportive environment where work / life balance is encouraged .
advisers to snack brands in this transaction have been corporate advisory firm , intrinsic partners , and law firm , king & wood mallesons . the acquisition is subject to approval by the foreign investment review board .
smith’s chips were first manufactured in australia in 1931 by mr . frank smith and an associate , george ensor . smith had originally established the smith’s product and name in the uk , before moving to australia to set up the business here .
eat up . the acquisition deal gives urc a strong western snack manufacturer to incorporate into its vast asian distribution network .
today pepsico australia & new zealand encompasses four business units : the smith’s snackfood company , the quaker oats company , pepsico beverages and bluebird foods .
we ' re growing really fast , which means heaps of exciting career opportunities , backed up by some iconic brands .
the categories of both snack brands , urc , and griffins are fully complementary and will offer a wider range of on trend , on the go , ready to eat snacking categories namely biscuits , wrapped snacks , and salty snacks ,
gokongwei said .
“in a world of cloud suppliers , there are many who will happily rent you space at cheap prices . where harbour is different is that they are a full service value add supplier . we also know where our applications reside and who is looking after them . ”paul knox , cio , snack brands
we make australia ' s favourite snacks including cc ' s , cheezels , chickadees , french fries , jumpy ' s , kettle , natural chip company , samboy and thins chips .
pepsico has operated in australia and new zealand for several decades . schweppes australia , under license , has manufactured and distributed pepsi , pepsi max , pepsi light , mountain dew , 7 up and gatorade – the latter brand being acquired globally in 2001 . in new zealand pepsi products , including pepsi max and mountain dew and gatorade are manufactured and distributed under license by frucor .
this gives urc – the food and beverage arm of philippine conglomerate jg summit holdings incorporated – a strong western snack manufacturer to incorporate into its vast asian distribution network .
after consulting with the team at harbour it and working through the various options that included a traditional approach of installing larger more powerful servers in house , it became obvious that the indicative capital spend would exceed one million dollars . furthermore , that spend would only provide some of the technology that would be needed over the next 3 to 4 years . at this point , harbour proposed that snack brands move part of their platform to the newly built harbour it cloud service as a hybrid model . no capital was necessary and snack brands could move to a monthly operational expense subscription model resulting in a “pay as you go , pay as you need” outcome .
harbour it awarded mid - market partner of the year at cisco australia and new zealand’s partner insight awards harbour it has been awarded the mid - market partner of the year award at the . . .
at snack brands we value our people . we know they are our greatest asset and that we have a deeply dedicated , passionate group who can follow their instincts , take initiative , push forward , and grow with us . whether you are looking for a role in sales and marketing , product development , human resources , finance , or information technology , we’ve got you covered .
snack brands runs microsoft ax as its erp application and although it has been proved to be a very robust and reliable application , its hunger for disk space was becoming apparent . the speed in which it was dealing with the thousands of transactions expected of it was starting to slow and this was impacting on the data entry staffs ability to process orders in a timely manner . an additional problem for paul was that snack foods was only half way through its normal cycle time for it spending ( 2010 ) with funding for a refresh some two years off and a large asset ( servers ) still remaining on the balance sheet .
as the end of the current snack brands it cycle is approaching and the remaining equipment is nearing end of life , it has now been agreed that the remaining applications will also be moved to the harbour it cloud environment . paul sees that additional benefits will be obtained including easier management , a more complete and robust disaster recovery option and the option to turn services on and off as needed with just one phone call .
in recent years the smith’s snackfood company has launched many new products including the successful red rock deli brand – the leading hard bite premium potato chip brand and grain waves the delicious whole grain chip ; and made strategic acquisitions including sakata rice snacks australia and cool pak popcorn . the company has also conducted highly successful consumer promotions like smith’s ‘do us a flavour” and doritos “make an ad make a fortune” as well as producing great advertising campaigns including grain waves ‘grainy guy” and sakata “australia’s favourite rice cracker……naturally . ”
gatorade is the global leader in sports nutrition . in australia , as is the case globally , gatorade has a long association with sport including involvement with cricket , soccer and rugby league . gatorade regularly consults with authoritative sources , actively supports research into hydration and diet and participates in programs that encourage sports development and activity through involvement with the australian institute of sport , the sports dieticians association of australia , and the victorian institute of sport . the gatorade brand was launched into the new zealand market in 2011 .
in september 2012 pepsico launched a new , revolutionary product – pepsi next targeted for the next generation of cola drinkers . this product is unique to australia in its recipe with a great cola taste and 30 % less sugar and is sweetened naturally using stevia .
the smith ' s snackfood company markets popular brands like smith ' s chips , doritos corn chips , twisties , sunbites grain waves and popcorn , red rock deli , nobby’s nuts , parker’s pretzels , cool pak and sakata rice crackers ; the quaker oats company who offer a range of easy to use porridges . pepsico beverages includes the successful pepsi max , mountain dew and gatorade brands and bluebird foods markets bluebird savoury snacks .
the reason it exists at all , is because after the smith ' s snackfood company was bought out by frito - lay , the american owned company agreed with the australian competition and consumer commission to divest a range of brands to prevent unfair trading practices resulting from a monopoly .
all very complicated , but suffice it to say that while it means the history of some of these brands are now lost in time , the new set - up includes the following brand names : cc’s , cheezels , chickadees , french fries , jumpy’s , kettle , natural chip co . , samboy and thins .
these chips were originally made in 20 gas fired cooking pots , and packed by hand . in 1932 , smith’s potato chips ( australia ) was formed and sold its early chips in three penny packets , 24 in a tin . the legendary “twist of salt” sachet was contained in these packs before pre - salting was introduced in later years . in 1945 , a continuous cooker process was introduced to replace the individual cooking pots . in 1960 the production of a one shilling pack for movie theatres and a box pack for four shillings was initiated .
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urltoken
your all time favourite australian snacks are ready to be enjoyed with family and friends . the crisp corn crunch of cc ' s . the irresistible crisp of thins . the naturally delicious crunch of kettle chips . all your favourites !
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our growth has been spectacular - from less than 15 million packets in 1996 , we now produce over 200 million packets per annum .
74 % of australian households buy at least one of our products every year .
even though we have professional management , we are very much a family business .
we make 4 million packets of chips a week , which is over 200 million a year – that’s a lot of enjoyment and fun we bring to snackers every day . from sourcing raw materials to manufacturing and delivering the end product , our supply chain plays a vital role in getting our chips to customers and consumers . from operations , engineering , logistics and planning , procurement , quality , to safety – we can offer you endless opportunities to develop your career .
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“what this achieves for the business is to take australian manufactured product , with its distinct food security advantage , into asian markets with the benefit of an established distribution force , ” mr musgrave said .
“it means there are no intended job losses but instead a stronger growth path with a new partner and the prospects of adding new urc product categories from new zealand to our local markets . it is also expected to be a positive for many of snackbrands suppliers such as potato and corn growers , ” mr musgrave said .
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) , in a bid to eat up a bulk of the oceania market .
the transaction has been approved by both companies ' board of directors and is expected to close by september 30 this year .
urc said the transaction is still subject to the approval of the australian foreign investment review board ( firb ) and the fulfillment of customary closing conditions .
urc in the past 3 years has started to look for strategic options on acquisitions or partnerships given the emerging competitive challenges being brought upon by the lifting of trade barriers and the attractiveness of the region where we operate ,
urc ceo lance gokongwei said in a regulatory filing .
vietnam , thailand , indonesia , malaysia , singapore , hong kong , and china .
on the heels of the acquisition announcement , shares of urc inched down by 0 . 16 % to p183 . 80 as of 3 pm on wednesday . – urltoken
increased speed of applications that has solved the problem of slow order entry and an increase in the operational capacity of data entry staff .
the remaining equipment was able to remain in house till the completion of the current it cycle ( 2012 ) .
paul noted that the implementation of the cloud solution had been a smooth seamless process and was totally painless . harbour it drove and project managed the whole transition and delivered on the outcomes that had been agreed to . from a security point of view , it was important for paul to know where his applications and confidential information were going to reside and that they would be given the highest level of attention .
ransomware has certainly been in the news lately and harbour it has been re . . .
“being a midsized company , we look for suppliers that can deliver a personalised sales and technical service . harbour it is an easy to deal with supplier who has a proactive , self - managed approach . we get the speedy responses we require delivered with high levels of customer service . ”
“harbour it were very forthcoming about what they could do and very upfront about the investment . they know what they are talking about”
i’m a cfo – not a techie – and to make decisions i need information in a form i understand . moving away from techspeak has helped clarify my business needs . harbour it has done it really well”
ransomware has certainly been in the news lately and harbour it has been receiving reports of an increased number of incidents related to infections with the ‘cryptolocker’ trojan and variants across australian companies . this malware is highly destructive . . .
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over the years there were several changes of ownership and many new products were added to the original potato chip range including nobby’s nuts , burger rings , twisties , and parker’s pretzels . in august 1998 , the smith’s snackfood company was purchased by pepsico .
it all began in 1898 , when a young pharmacist in north carolina , named caleb bradham was experimenting with combinations of spices , juices and syrups , trying to create a refreshing new drink . he succeeded beyond all expectations , inventing the beverage known around the world as… . . pepsi cola . today , pepsico is one of the largest beverage companies in the world , with a huge range of popular products .
locally the pepsi brand has participated in several iconic campaigns including the “pepsi taste challenge” as well as celebrity endorsements that were linked to pepsi as “the choice of a new generation . ” pepsi was also the first brand to give away an ipod an hour in the “win an ipod an hour” promotion .
pepsi max has been instrumental in establishing sugar free cola consumption amongst australian & new zealand males . in 2009 , pepsi max became pepsico’s 19th billion dollar global mega brand . historically , it is has been supported with television advertisements featuring the campaign line “maximum taste , no sugar” as well as targeted promotions like pepsi max “cash or car” promotion and pepsi max “money or your mates” together with sponsorship of the pepsi max racing team .
bluebird’s story began in 1947 when a young entrepreneur , les saussey , started selling popcorn and later potato chips , at the western spring speedway in auckland . the popularity of his bluebird chips quickly grew and he soon expanded his range of flavours to include ready salted , salt & vinegar as well as chicken . back then you could buy a packet of bluebird chips for 9 pence !
advertising featuring the bluebird penguins are a much loved part of the company’s history . the bluebird penguins are crazy about bluebird chips and are always trying to get their flippers on them ! the company has also run highly successful promotions including “the nation’s chip” – cheesymite and “do us a flavour” as well as the “kiwi as” range of limited edition flavours .
making the best tasting chips remains at the heart of everything bluebird does . that’s why bluebird is new zealand’s favourite chip !
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