ELORIN Bio-Breakfast Series
October 28, 2005
Dr. Gord Surgeoner
Ontario Agri-Food Technologies
Here’s to the crazy ones.
The misfits. The rebels. The trouble makers. The round pegs in
the square holes. The ones who see things differently.
They’re not fond of rules. And they have no respect for the
status quo. You can praise them, disagree with them, quote
them, disbelieve them, glorify or vilify them.
About the only thing you can’t do is ignore them. Because they
change things. They invent. They imagine. They heal. They
explore. They create. They inspire. They push the human race
…While some see them as the crazy ones, we see genius.
Because the people who are crazy enough to think they can
change the world are the ones who do.
“Think Different” ad campaign
• Goods and services for commerce at
• Recognize social / cultural /
Value Discovery (VD)
• Academia – Queen’s / others
• Private sector (PSA Composites /
• Ontario Research Fund – +$500 million
• OMAF - $1 million – University of Guelph
contract – bioproducts
• Competitive - Renewable Fuels Fund, New
• Lots on Federal
• Agriculture/Agri-Food Canada
• Industry Canada
• Canadian Sustainable Development Technology
More detail More detail
Less and less about more and more!
More and more about less and less!
• Discovery is global, implementation is
local; therefore, >98% of global
discovery occurs elsewhere. G. Penner
• Intelligence gathering is critical
• A major area of weakness
• Born and raised in Canada syndrome
Value Capture (VC)
• Venture capital – Dynex Capital
• Future Link Life Sciences & Emerging
Technologies Fund (labour sponsored)
• Agricultural Adaptation Council
• Culture – legal, accounting, personnel,
• Physical – food-grade rail facility
• Receptor of products (e.g. biodiesel)
• $66 million provincial commercialization fund
• Cautionary – start-up capital is often difficult
The BIOX Corporation Announces Development of
60 Million Litre Biodiesel Facility
FOR IMMEDIATE RELEASE – June 6, 2004
HAMILTON, ONTARIO - At a press conference today BIOX Corporation, announced the company's intention to scale up their existing 1 million litre pilot plant to
a 60 million litre per annum facility. "We have been successfully producing ASTM standard biodiesel at our 1 million litre pilot plant from a variety of feedstocks
for well over a year now and it is time to scale up to 60 million litres showcasing this unique Canadian technology. We've decided to make this significant
investment here in Hamilton" said Tim Haig, President and CEO of BIOX.
Recently the Prime Minister has said that Kyoto is just a first step and that to realize Canada's true environmental goals we must embrace innovative
technologies. The federal government has supported the development of biodiesel and other renewable technologies through the provision of federal excise tax
relief and other industrial development programs. Ministers Goodale, Keyes and Valeri will be present to discuss these initiatives and possible future directions
of the federal government.
The BIOX Process is a method for turning any feedstock, including vegetable oils, agricultural seed oils, waste animal fats, greases and recycled cooking oils
into ASTM D6751 and/or EN 14214 grade biodiesel fuel at a cost competitive with petroleum diesel. Prior to the development of the BIOX Process, traditional
methods of producing biodiesel were slow, expensive and inefficient.
"Dr. David Boocock, Past Chairman of the Chemical Engineering and Applied Chemistry Department, University of Toronto, has transformed the production
process through the selection of inert co-solvents that generate an oil-rich one-phase system. This reaction is over 99% complete in seconds at ambient
temperatures, compared to previous processes which required several hours. Continuous processes are now feasible and proven" explained Haig.
BIOX Corporation is a privately held Canadian company headquartered in Oakville, Ontario. When completed, the Hamilton facility will increase the North
American supply of biodiesel by approximately 50%. "This is an important day for the environment as a result of the tremendous greenhouse gas reductions
realized through the use of biodiesel. It is an important day for Canadian farmers as biodiesel production creates new markets for their crops and products. It's
an important day for Canada because it moves us, as a nation, that much closer to reaching our Kyoto commitments" said Haig.
Sustainable Development Technology Canada, an arm's length not-for-profit foundation created by the Government of Canada, has approved a $5M
contribution in principle towards the development of the BIOX Process.
W E Ontario
Network Eastern Lake
Value Expansion (VE)
• PSA Composites – first product west coast.
• Wellington Polymer
• Double capacity
• Lorama Chemicals
• Paint resin
• Inks – contract
• Food glazes
• VOC-free paint
• Key is
• Infrastructure – roads, access to
• Business climate
– energy costs
Opportunity for Canada
Moving from R&D to Commercialization
Oriented polymers is a new field of plastic composites that have immense
potential in the construction and automotive industries. PSA Composites
Inc. has developed, over the last 15 years, a new class of materials for
which the first patents have been issued. The first materials to be
commercialized are woodfibre/plastic composites (WPC's) with a density
between that of softwood and hardwood. This 2nd generation WPC is
twice as strong as 1st generation WPC's or half the weight for the same
functionality. First-generation WPC's have grown in the last 10 years
from zero to US$750 million/year with Mobil Oil's spin-off company, Trex,
leading the way with US$191 million sales in 2003.
One of the largest North American forest product companies wants to
commercialize our technology as quickly as possible and is indicating that
it will sell at least US$150 million/year of our material within five years.
The production plants to do this can be in Canada or the U.S.A.
PSA Composites has just received private sector investment of
US$3 million to commercialize this technology and is currently examining
the timing and location for the construction of three manufacturing plants
in North America – one west coast, one east coast, and one central.
PSAC has licensed the technology to Green Forest Engineered Products
in Nevada, Missouri and full production is taking place leading to market
evaluation. Production has occurred at a commercial scale.
Value Attraction (VA)
• Bringing companies to Canada /
Ontario / Kingston
• Toyota – discovery/finance offshore
• Access to markets (location)
• Business climate (infrastructure/taxes)
• Company synergies
• Discovery intelligence – Sun Grant U.S.
• Companies (global) interested
Not in my term of office!
The MaRS Discovery District
Port Colborne, Ontario
Value Retention (VR)
• Driving out costs; finding value co-
• e.g. – Plant JBL – 6 tonnes aspergillus, 20
tonnes diatomaceous earth/day
• problem – General Manager - No!
- opportunity looking for solution!
- feeds back to discovery
• Who is asking Dupont/Casco how we let you
compete at global board tables?
• Ag Policy Framework Innovation – 5
• BIOENTERPRISE Corporation
• MaRS Landing
• Soy 20/20
• Ontario Agri-Food Technologies
• Over $8 million will be invested, with
• New public policy initiative
Question: how much investment in each
category as a percentage?
Unless you try
to do something beyond
what you have already
you will never grow.
“The world can only be
grasped by action, not
mathematician, television presenter
“Act in a way that will
make the future indebted