Biomass valorization using green technologies: an entrepreneurship approach

The aim of this thesis project is to suggest a market application for Subcritical Water Extraction Technology (SW Technology), which uses water based processes. It is a green, versatile and environmental safe technology. The first step was to study in detail the technical features of the technology in order to provide a set of possible market applications focused on waste valorization. Selection criteria were considered for the raw material as well as for the market application and resulted in the choice of two applications: i) potato starch from Industrial potato wastes and ii) pectin from Industrial citrus and apple peels. From further market application, potential production and market need analysis, it transpired that pectin for food applications is the best promising application from the market point of view. The business model proposes the creation of a start-up, BioADD, constituted by a team of highly qualified specialists in different areas. BioADD will produce the product PectiCitrus from orange wastes adopting a factory in factory business model with the company Lara, Laranjas do Algarve. The European pectin market is valued in 372 M€ and BioADD will target 3% of it in the first year of operations. BioADD business model is Business to Business and PectiCitrus will be sold to European Distributing companies. The business model is developed for a five years time period, where the first year is dedicated to technology scale up studies in order to fit Lara orange peels production. The necessary investment to create BioADD is about 850 000€ with return of investment period in three years and internal rate of return of 32%. PectiCitrus is positioned in the market as a sustainable and competitive product. The Food industry market application is large. Although BioADD technology detains the potential to cover all applications, BioADD will focus on three major markets: i) Soft drinks, ii) Jams, jellies and marmalades and iii) Yoghurt and acidified milk drinks