As manufacturers in the biofuels space look to diversify their portfolios and improve their profitability, some are making the move to make bio-based chemicals. Products such as bio-succinic acid and bio-butanol have the same building blocks as biofuels. Why make something that sells for $2.50 a gallon when you can make something that sells for $50 per ounce?
It's not as easy as it seems because of specialized distribution channels and limited market potential. There have been pockets of success, though, with companies like GEVO and Solazyme. What makes these companies different? As more firms look to these markets, what do you think are the keys to success?