Entrepreneurship

    To connect our project to reality, from the beginning we worked to study how to commercialize the product. We found our target customers and gained insight into their values and needs. Through cooperation with business experts, we have conducted multiple analysis of target customers, products, product markets, business strategy, financial planning, and our team. Combining expert insights with the results of our analysis, we developed a business plan to achieve the commercialization of the project. In order to verify the feasibility of the business plan, we participated in the China International "Internet +" College Students' Innovation and Entrepreneurship Competition. During the competition, we introduced our project to business experts across the country, which highlighted the potential of our business plan. On the following pages, you can see our analysis and assumptions about our customers, products, and companies.

(Figure 1 Team members participated in the China International "Internet+" Student Innovation and Entrepreneurship Competition)

Problem statement

    In 2019, aviation produces 1.8 percent of overall global greenhouse gas emissions.About 79 per cent of carbon emissions from the air transport sector come from the combustion of aviation fuel, making it the main source of carbon emissions from civil aviation.As the aviation industry grows, its GHG emissions and share will continue to increase.According to the International Civil Aviation Organisation (ICAO) Feasibility Report on the Long-Term Aspirational Goal (LTAG) for carbon dioxide Reductions from International Civil Aviation, without external interventions in the aviation industry, international aviation carbon dioxide emissions will account for 7.00 per cent of global carbon emissions in 2050 under a 1.5°C temperature rise scenario, and 18.30 per cent of global carbon emissions in 2070. emissions by 2050, and by 2070, international aviation carbon dioxide emissions will account for 18.30 per cent of global carbon emissions.

（Figure 2 The cumulative carbon emissions generated by international aviation will account for the future global carbon budget）

    As the aviation industry grows, its emissions and share will continue to increase.Therefore, measures to reduce carbon emissions from aviation are critical to achieving global emissions reduction targets.The International Air Transport Association (IATA) has set a goal of achieving net zero emissions from aviation by 2050.In order to achieve this goal, the aviation industry can take a variety of measures to reduce carbon emissions.These include upgrading aircraft technology to improve energy efficiency, developing new types of aircraft powered by electricity and hydrogen as an energy source, and improving the efficiency of operations and infrastructure.However, these methods cannot fundamentally solve the problem of carbon emission reduction in the aviation industry.

Opportunity

    The problem described in the problem statement leads to the opportunity that HUBU-China discovered。Sustainable aviation fuel is a liquid fuel used in commercial aviation that reduces carbon dioxide emissions by 80 per cent or more compared to traditional fossil fuels.
    There are two main types of sustainable aviation fuels (SAF): sustainable aviation biofuels and sustainable aviation synthetic fuels.Sustainable aviation biofuels are produced from organic biomass (waste and low carbon content feedstocks), while the main energy sources and feedstocks used to produce sustainable aviation synthetic fuels are renewable electricity, water and carbon dioxide.
    In the U.S. market, the Alcohol to Jet (AtJ) synthesis process is the main production method for SAF.According to the capacity planning of major suppliers, the AtJ route dominates.HUBU-China is developing a technology for the biosynthesis of isobutanol from non-food feedstocks, the product of which, isobutanol, can be used as a feedstock for the Alcohol to Jet (AtJ) synthesis process.The technology has a better environmental effect and meets the policy requirement of carbon emission reduction.

Market Analyses

Synthetic Biology Market

    Production of chemicals, materials, fuels, plant natural ingredients and alternative proteins through microbial cell factories; cellular sensors for clinical medicine, environmental and food monitoring; bacteria, cells to treat diseases and help increase crop yields; and more.Synthetic biology and its applications have appeared frequently in recent years and are profoundly influencing the development of the chemical, food, consumer product, energy, healthcare and agriculture sectors, and creating enormous social and economic value.Therefore, synthetic biology has been emphasised and laid out in the governmental strategies of many countries.
    In the UK, both the Growing the Bioeconomy Strategy published in 2018 and the UK Innovation Strategy 2021 emphasise the importance of synthetic biology and provide support for its development.In the United States, synthetic biology is listed as one of the six disruptive basic research areas in the Department of Defence's Science and Technology Priorities.In addition, the American Innovation and Competitiveness Act of 2021, which was passed in 2021, also lists synthetic biology as one of the key technology focus areas and calls for the cooperation of various government departments in the development of synthetic biology.In Germany, synthetic biology also features prominently in the Biotechnology 2020+ programme, a research strategy initiated by the German Federal Ministry of Education and Research (BMBF) and others.The synthetic biology research network "MaxSynBio", initiated by the Max Planck Society, and the project "SynBioDesign - Synthetic Biology for the Design of Systems for the Production of Complex Natural Substances" are part of this programme.

(Figure 3 UK Research Council funding statistics for synthetic biology)

    The emphasis on synthetic biology in these countries has provided policy and financial support for the commercial development of synthetic biology, opening up broader prospects for its commercialisation and application.Based on the CAGR% index it can be seen that the market in the field of synthetic biology is promising.

（Figure 4 regional market size of global synthetic biology）

Biofuel Markets

    With increasing global climate change and continued high volatility in conventional energy prices, biofuels are gradually gaining attention from various countries.Biofuel is a kind of fuel produced by renewable biomaterials, which can replace petrol and diesel made from oil to a certain extent, and is an important direction in the development and utilisation of renewable energy, which is of great significance to the reduction of greenhouse gas emissions and the protection of the atmospheric environment.
    According to BP (British Petroleum), fossil fuels still account for 84 percent of global energy consumption in 2019.However, the share of renewable energy in energy consumption has gradually increased from 6.4 per cent in 1980 to 11.4 per cent in 2019, showing a continuous growth trend.
    With regard to the long-term strategy for the development of biofuels, three countries, namely, Brazil, the United States and India, have successively given clear instructions on the development, management, stages of development and objectives of biofuels.In December 2017, Brazil specified in its National Biofuels Development Plan that the share of biofuels in the country's energy mix should increase to 18 percent by 2030, with a value of R$150bn ($28.3bn) and the creation of one million jobs.In 2005 and 2007, the United States introduced the Energy Policy Act and the Energy Independence and Security Act to provide clear planning for the production and use of biofuels.
In 2021, the U.S. Department of Energy released the Sustainable Aviation Fuels Grand Challenges Roadmap, which targets an annual production of 11.36 billion litres of sustainable aviation fuels (SAF) by 2030, and a 100 per cent SAF share of the U.S. aviation fuel sector by 2050.India's National Biofuel Policy 2018 plans to blend 20 per cent ethanol into petrol by 2030. The Government has now brought forward the target to be achieved by 2025-2026, while also setting clear directions and targets for the use of biofuels in the transport sector.
    Based on the above material, we find that global demand for biofuels is rising rapidly. As the world's largest energy consumer and CO2 emitter, China has huge potential and demand for developing biofuels.

Isobutanol Markets

    According to Beziers Consulting, the global isobutanol market size reached RMB 6.654 billion in 2021 and is forecasted to reach RMB 8.549 billion by 2027.The global isobutanol market is expected to grow at a CAGR of 4.2% during the forecast period 2021-2027.The market size of isobutanol varies from country to country due to different production capacity and different demand.HUBU-China's main market is China.The current production of isobutanol in the Chinese market does not meet the demand side and must rely on imports.Now the price of isobutanol is above RMB 7500/tonne, the monthly apparent consumption of Chinese market is above 10,000 tonnes, the monthly potential market is above RMB 75 million, and the annual potential market is above RMB 900 million.

（Figure 5 China's isobutanol production and apparent consumption (10,000 tons).Data source: Baichuan Yingfu, Huaan Securities Research Institute）

    According to the analysis of the above materials, isobutanol is currently in short supply in the Chinese market and has great market demand.Synthesis of isobutanol using synthetic biology methods could fill a gap in the Chinese market.

Customer

    HUBU-China's main customers are airlines that already use Sustainable Aviation Fuel (SAF) in their commercial passenger flights.These airlines should have the technology to work with SAF and be willing to invest in this type of fuel.These companies should have a positive attitude towards the use of SAF and be willing to pay a higher cost relative to conventional fuels to use SAF.As a team dedicated to making the world a better place, HUBU-China wants to do its part to reduce global carbon emissions.We also hope that our customers will share our vision and work together to reduce carbon emissions globally.Air China, China Southern Airlines, China Eastern Airlines, etc. are our ideal clients.

(Figure 6 Air China)

(Figure 7 China Southern Airlines)

(Figure 8 China Eastern Airlines)

Products

    Isobutanol, as a branched four-carbon alcohol, has the advantages of high energy density, high octane, easy mixing, low vapour pressure, low hygroscopicity, low corrosiveness, etc., compared with traditional biofuels ethanol and n-butanol. It can be used directly in the existing engines and other fuel utilisation equipments, and can also be used directly in existing gasoline pipelines and distribution channels, and it is considered to be the new generation of biofuel with great potential for development as a substitute for gasoline.In addition to this, isobutanol can be used as a feedstock to produce renewable aviation fuel (SAF).SAF can be blended with fossil aviation fuels in blends of up to 50 per cent, effectively reducing carbon emissions from the aviation industry.
    The HUBU-China team uses synthetic biology to construct industrial strains for high and stable production of non-food biofuels.Heterologous production of isobutanol was achieved by establishing and characterising isobutanol production-related biological components in Zymomonas mobilis and constructing an isobutanol production module by integrating the assembled biological components into Zymomonas mobilis cells through homologous recombination, CRISPR-Cas and other genetic engineering techniques.In addition to this, the team introduced the Calvin cycle pathway, as well as the introduction of carboxylates for carbon concentration, assisting in carbon sequestration and improving the efficiency of carbon sequestration, so that more carbon sources can flow to the production of isobutanol, and the efficient production of zero-carbon isobutanol can be realised.

Business Models

    This product is currently a B2B model, forming a supply relationship with the upstream supplier, the Central China Plains Straw Factory, and a sales relationship with the downstream major airlines.
    Establishing a supply relationship with the Central China Plain Straw Plant will ensure that the Company will be able to obtain sufficient straw feedstock for the production of isobutanol.This ensures stability, quality and sustainability of supply.At the same time, the company has reached a strategic cooperation with downstream airlines to establish a sales relationship, so that our products are widely used and sold.At the same time, the company is constantly improving its products according to the market demand by understanding the needs and requirements of the airlines.
    As the company grows, it will turn to technology development and commercialisation through licensing.By licensing our technologies to other companies for use in specific fields or regions and receiving corresponding licence fees or royalties. In this way, we can expand the market coverage of our products and achieve wider commercialisation.
    In addition, the company will establish collaborative relationships with other research institutions, partners and investors to drive scientific and technological development and licensing.These partners will provide support in terms of funding, technical expertise and market channels to accelerate product development and commercialisation.

Marketing strategy

Promotional strategy

    Because the synthesis of isobutanol through non-food raw materials is much lower than the cost of chemical synthesis of isobutanol on the market, and the product can reduce carbon dioxide emissions in the process of manufacturing and use, the economic and environmental benefits are far more than the current on the isobutanol products, so it has a considerable price competitiveness.Therefore, the enterprise chooses to buy this product. Our company adopts the promotion strategy of buy one tonne and get 100kg free at the initial stage of the enterprise to accelerate the market expansion of the enterprise.

Channel strategy

    The main online + offline dual-platform sales promotion strategy, online through the establishment of the website for the process demonstration and technology demonstration, to attract straw plant co-operation, offline through the company's marketing staff and straw plant docking, to achieve co-operation in the form of low-priced concessions, to obtain a stable supply of raw materials channels. It also interfaces with the government to make the name of the environmental protection company and market it through multiple channels.

Advertising strategy

    In order to promote SAF, we will adopt various ways and means.Firstly, we will make full use of the new media platform to disseminate our product information to our target customer groups through social media, online advertising and other channels to increase the visibility and influence of our products.Secondly, we will invite some authoritative experts to promote the product, so as to enhance the credibility and market recognition of the product through their professional recognition and reputation.Finally, we will also actively seek the support and co-operation of government departments to promote our products in the form of government publicity channels and policy support, to further expand our market share and to promote the sales and market development of our products.

Corporations

Executive summary

    We expect to establish the company to be located in Caidian District, Wuhan City, Hubei Province, and focus on the research and development, production and sales of biofuels.The company takes airlines that have already used sustainable aviation fuel (SAF) in commercial passenger flights as its target customers, adheres to the tenet of innovation creates development, responsibility makes the future, makes full use of the R&D power of universities, and promotes the industrialisation of high-tech achievements.At present, the company mainly develops zero-carbon isobutanol aviation fuel as the core product.

Company Profile

    Company name: Wuhan Synthetic Green Biology Co.
    Main business: Apply modern biotechnology to research and development, production and sales of sustainable aviation fuel, to achieve the effective application of zero-carbon aviation fuel, to achieve "ecological design - recycling - efficient use - carbon reduction and environmental protection".
    Cultural Concept: The company uses hydrolysis enzymes to degrade and utilise cellulosic biomass, produces sustainable aviation fuel with zero carbon, greatly reduces pollution to the environment and achieves recycling, focuses on expanding the green recycling industry, reduces carbon emissions and environmental pollution, and is committed to creating a green future.

Equity structure

    The registered capital of the company is RMB 8 million. From the entrepreneurial team and expert advisory group, the technology valuation of 1.6 million yuan accounted for 20% of the total registered capital.

（Figure 9 Initial investment capital distribution table）

Company Structure

    In the early stage of the company's business, due to the limited number of members and start-up capital, and the small size of the company, a linear-functional organisational structure was adopted. Instead of a supervisory board, there is one supervisor to oversee the management of the company, and instead of a board of directors, there is only one executive director who also serves as the general manager to manage the four departments of production, sales, personnel and finance. At the same time, the company has also hired a legal adviser to provide legal counselling for the company's affairs at the start-up stage.
    When the company grows to a certain scale, we will refine the company structure, adopt a linear organisational structure, and add a research and development department on top of the existing one.Our company seeks for innovation and development, so we set up a technical department in the R&D department, responsible for the research and development of new products and technologies, and separate the marketing department and sales department in the marketing department, so as to be fully prepared for further market development.At the same time, the marketing department has set up a customer service department to provide customers with high-quality consulting services and product guidance services.

(Figure 10 Corporate Structure)

Financial analysis

    At the beginning of the business we need to invest a certain amount of start-up capital to carry out the company's planning and layout, in the company's overall operation of the state of good, we can absorb the co-operation of the investment.With regard to financial management, what we need to do is to use funds wisely and handle financial relations well, so as to achieve good returns without violating the law.
    The financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance of the People's Republic of China, and the fiscal year begins on 1 January and ends on 31 December of each calendar year.

Intellectual property

    Article 2(3) of the Chinese Patent Law defines a utility model as follows: "A utility model is a new technical proposal for a product that is suitable for practical use in terms of its shape, construction or combination thereof.
    The utility model patent application process is as follows:
    Application Stage: The application documents for a utility model patent application are: the utility model patent request, the specification of the utility model patent, the appended drawings of the specification, the utility model patent claims, the abstract, and the appended drawings of the abstract thereof.In a utility model patent application, the applicant is not allowed to have the drawings attached to the specification. If the applicant appoints an agent, a power of attorney should be submitted.
    Examination stage: The domestic examination system for utility model patent applications is a preliminary examination system.During the preliminary examination of the application, the patent examiner will issue a notice of correction to the applicant in respect of the formal issues in the application documents of the utility model patent application and a notice of examination opinion in respect of the obvious substantive issues, and the applicant will respond to the notice after receiving it.A utility model patent is subject to preliminary examination only, and is not subject to substantive examination like an invention patent application. The main examination is whether the utility model patent application has the provisions of the Patent Law.
    Authorisation stage: After the utility model patent application has passed the preliminary examination, the investigator will issue a notice of receipt of patent rights.After the applicant receives the notification of granting the patent right, the applicant needs to go through the relevant registration procedures and pay the relevant fees. The applicant can obtain the patent certificate after completing the above procedures, which takes two to three months.

(Figure 11 Patent application process)

Business plan

    A business plan is a document that describes our project background, product technology, market analysis, company strategy, business model, marketing strategy, financial analysis and risk analysis.Meanwhile our business plan documents the efforts of the HUBU-China team for Zero-carbon SAF. To thank them for their efforts, we decided to make a separate page for our business plan! (on the Business plan page)