Global Bioenergies has received 13 letters of intent from French and international industrial leaders for purchases totaling 49,000 to 64,000 tons of isobutene and derivatives annually. This covers the total production capacity of the planned IBN-One plant, a joint venture with Cristal Union, the fourth-largest sugar producer in Europe.

The letters of intent come from the cosmetics, specialty fuels, road fuels and air transport industries.

More than half of the letters of intent and a significant share of capacity (about 20%) are earmarked for high added-value niche markets in specialty fuels and cosmetics. Several of the letters of intent include price indications that confirm the potential for isobutene derivatives to fetch prices far higher than their oil-derived counterparts.

The internal return rate (IRR) is around 18% in our base case scenario, well above average for industrial projects. This IRR would be even higher under optimistic scenarios, with greater demand from high-premium market segments. The investment bank Vulcain is assisting IBN-One in putting together the financing package and identifying financial partners for the project.

—Bernard Chaud, CEO of IBN-One