Frequently Asked Questions
What is Industrial Biotechnology Corporation?
Industrial Biotechnology Corporation (IBC) provides products, services and technologies based on the use of renewable resources as an alternative to petroleum products and traditional manufacturing methods. IBC production processes are economical, eco-efficient and feature sustainable practices. IBC accomplishes this through the ALCHEMx Production Platforms™ which systematically integrate technologies, manufacturing, and distribution with our supply chain partners. Cosan SA is IBC’s renewable resource provider and joint venture partner. Located in Brazil, Cosan is the world’s largest provider of sugarcane based ethanol.
What are the IBC operating affiliate companies?
Renewable Chemical Corporation (RCC) produces chemicals using sugarcane as the feedstock source material instead of petroleum feedstock. RCC plans to produce these renewable chemicals, customized to the specific sustainability and pricing requirements of the consumer packaging, bio-energy, agricultural, biopesticides, biomaterials and biopolymer industries. Our feedstock provider and joint venture equity partner is COSAN SA.
Renewable Fuels of America Corporation, (RFAC) imports and distributes Brazilian sugarcane-based ethanol. Sugarcane is considered the leading cost efficient, energy balanced and environmentally sustainable fuel source when compared to fossil and other alternative fuels. Unlike corn based ethanol, sugarcane does not rely on a competing food source, and yields twice as much ethanol per acre. RFAC maximizes available trade benefits and leverages existing ethanol distribution networks and infrastructure in those coastal areas logistically and economically favorable to a port entry distributor/supplier. Cosan is RFAC’s feedstock provider and joint venture equity partner.
IBC Technologies Inc. acquires, develops, licenses, and integrates intellectual property that enable the favorable economic implementation of renewable and sustainable biotechnologies.
What is ethanol?
Ethanol is ethyl alcohol, the alcohol contained in beverages. It has many medical, consumer, and industrial applications. Chemically, it consists of two carbon atoms, five hydrogen atoms, and one hydroxyl group. As opposed to gasoline, ethanol is a pure substance consisting of only one type of molecule: C2H5OH. Ethanol is commonly produced in a hydrous (containing water) and an anhydrous (dry) form. The water content of anhydrous ethanol is approximately 0.5 percent by volume, while hydrous ethanol, the ethanol sold at fuel stations is roughly 5 percent water by volume. In the industrial production of ethanol, the hydrous grade is the one that comes directly from the distillation tower. Producing anhydrous ethanol requires an additional processing stage that removes most of the water contained in the fuel.
What are the advantages of ethanol-based plastics?
Traditional plastics are made from petroleum feedstocks. The soaring cost of oil has driven the need for less expensive alternative sources. Cosan-supplied ethanol is a renewable resource derived from sugarcane grown in Brazil. Not only is ethanol made from sugarcane renewable, sources indicate that it will reduce over-all carbon emissions for the plastics industry.
Who would purchase these renewable-based plastics?
Major international corporations are making powerful commitments to increase the use of renewable and sustainable products and packaging and reducing their overall carbon footprints. They recognize that plastics made from renewable sources such as sugarcane based ethanol help meet these goals.
What are the advantages of sugarcane based Ethanol?
There are many. Sugarcane produces 7 times as much ethanol per acre as corn. The waste material after the cane called bagasse is burned to fuel the ethanol manufacturing process and provides additional energy that is supplied to the grid, thereby further reducing energy costs. Manufacturing plants that derive ethanol from corn require additional energy for conversion process from petroleum or natural gas. In addition, corn is a highly resource-intensive crop, consuming approximately 45% of all the fertilizer and pesticides used in America. The vast majority of those products are derived from petroleum.
Does Cosan grow sugarcane in rain forest areas?
No. Brazilian rainforests are located in the Amazon region and on Brazil’s southeastern coast. Cosan does not maintain fields in these areas.
Does Brazilian sugarcane-based ethanol compete with food crops?
No. The amount of land used for ethanol production amounts to only 0.3% of the land area in Brazil. It is estimated that Brazil has approximately 250 million additional acres of land suitable for food crops that is not currently used, none of which includes protected rain forest areas.
Is it true that ethanol has a negative energy balance, i.e., the energy we use to produce it (sugarcane growing, transportation, industrial processing) is greater than the energy contained in ethanol for use in engines?
No. That analysis applies only to ethanol that is produced from corn. The energy used in the production of ethanol from sugarcane is much lower. In Brazil’s sugarcane industry, the ratio between the renewable energy produced and the fossil energy used is 8.9. In other words, the potential energy output from sugarcane-derived ethanol is 8.9 times higher than the energy that went into producing it. That figure is the highest among all liquid fuels produced from biomass around the world.
What are the energy-balance ratios for alternative fuels?
The ratio for various biodiesel grades ranges from 2.0 to 3.0. The ratio for corn-derived ethanol is 1.3 to 1.8. In fact, it has been estimated that the ratio at the beginning of the American corn program was negative, ie., less than 1. The process of producing the corn-ethanol consumed more energy that the ethanol could give back. For beet ethanol (such as that produced in Germany) or wheat ethanol (in some European countries), the ratio is approximately 2.0; sweet sorghum, used in African production, achieves a ratio of 4.0. The main reason for the strongly positive ratio provided by the Brazilian ethanol is because the sugarcane industry does not use any fossil energy in the ethanol production process - only the sugar-cane bagasse, the plant material remaining after sugarcane stalks are crushed, is used. As a result, the production process (as well as the product) in Brazil features much greater sustainability than those of other countries.
Is IBC publicly traded?
Yes, Industrial Biotechnology Corporation is a public company that trades on the Pink Sheets OTC under the trading symbol: IBOT. Anyone can buy or sell Industrial Biotechnology Corporation public stock at most stock brokerage companies. All major quotation systems provide price quotations for IBOT.
When and why was Industrial Biotechnology created, and what was is the company’s history & background?
IBC was formed to commercialize technologies licensed from Rice University and Oxford University in the fall of 2005. IBC, as a developmental stage biotechnology company, spent its first 2 years focused exclusively on the scientific development and economic feasibility of the technologies and related sales, strategic partnering and marketing efforts. In March 2007, the company deemed the technologies commercially unfeasible based upon economic and scientific results and data and general feedback from various chemical industry relationships. The company subsequently surrendered the technologies previously licensed and halted all University sponsored research contracts. In the 2nd quarter of 2007, the company commenced feasibility studies and due diligence of renewable (derived from ethanol) chemicals as an alternative to petroleum. As a result of the lack of business success of the previously licensed technologies and ongoing working capital cash requirements, the company and its shareholders suffered significant dilution in the second half of 2007. The company underwent a financial recapitalization & strategic reorganization with a subsequent 4016 to 1 reverse stock split in December 2007. This was done to facilitate the capital requirement needs of the company and refocus on the new business model shift presently in progress.
Where are you located?
Industrial Biotechnology Corporation
2033 Main St., Suite 400
Sarasota, FL 34237
