Wassup, EU? The Top 10 Trends in Europe’s Advanced Bioeconomy

#6 Active M&A

Biogas was in the news in December when Blue Sphere announced the acquisition of four operating biogas facilities in Italy, a major milestone in the Company’s history. Blue Sphere has acquired 100% of the stock of Agricerere, S.R.L., Agrielektra, S.r.L., Agrisorse, S.r.L. and Gefa, S.r.L. Individually, each fully operational facility generates one megawatt of electricity per hour which is sold to Gestore del Servizi Energetici GSE, S.p.A., a state owned company that promotes and supports renewable energy sources in Italy, under a power purchase agreement (PPA) that runs through December 31, 2027.

Meanwhile, we reported in February that GFBiochemicals acquired the assets and intellectual property of Segetis, a US-based, venture-backed levulinic acid derivatives producer Segetis has more than 50 patents and over 200 pending patent applications worldwide. The acquisition matches up GF Biochemical’s commercial-scale technology for producing levulinic acid, with Segetis’ technology for converting levulinic acid into biobased intermediates and speciality chemicals in plasticizers, fragrances, household and industrial cleaners, biobased acrylate polymers, agrochemical formulations, polyester and polyurethane intermediates, polycarbonate co-monomers, and nylon intermediates.

Spotlight: Abengoa in retreat

Abengoa’s bankruptcy has been in focus, In November, we reported on a pre-insolvency proceeding in an attempt to restructure its $21.4 billion of debt during the next four month before having to enter bankruptcy proceedings. Shares of the company dove 54% after a major investor refused to recapitalize the business, wiping about a half billion dollars from its value in a single day. It would be the country’s largest bankruptcy if it indeed failed. The company’s value has sunk by 85% since its financial situation became untenable in July.

Last month, a judge in the U.S. Bankruptcy Court in Wilmington ruled Abengoa’s bankruptcy proceedings in Spain are the main proceedings and must take the lead in how creditors in the US are treated. The judge granted protection under Chapter 15, a bankruptcy code created in 2005 that allows foreign bankruptcy proceedings to take precedence. The ruling means that US creditors will have to wait until Oct. 28, 2016 when the company is expected to have reorganized its debts.

Here’s a more comprehensive look on Abengoa’s woes and prospects: Abengoa’s descent into fiscal hell, and its hopes for redemption.