BioBusiness Matters
February 2008

THE SERIAL entrepreneur is always looking for the next opportunity. But Michael Dennis wasn’t even looking for the one that became the foundation for his new company.

Dennis was the president and CEO of Genome Atlantic, the regional organization that promotes research in genomics, when he became interested in using microbes to clean up the environment. Microbes are micro-organisms such as bacteria, which are natural cleaning agents because they decompose and digest waste.

"I realized the market opportunities in the growing green economy were huge," he said. "The significant shift within Europe and some parts of North America to sustainable development models revealed opportunities that I just couldn’t ignore."

So he left his position with Genome Atlantic and founded Blue Bio.

Blue Bio is an early-stage company with one investor (Dennis), two unpaid employees (Dennis and his business partner Mike Andrusyk) and a growth plan that includes a short-term goal for revenue generation and a longer-term vision to use marine biotechnology to develop green solutions.

"There is an enormous shift in the business world toward revamping processes and materials to prevent pollution. As companies determine how to adopt green business practices, service providers who can get ahead of the wave of that shift will find a ready market. That’s where we plan to play."

In order to create some initial revenue, Blue Bio looked for systems that already incorporated biotechnology. Late last year he acquired local rights for a system that targets a basic component of most businesses — machinery.

"All machines need to be degreased and right now the standard is to use chemical solvents which not only emit greenhouse gasses and other pollutants, but create waste that is considered extremely toxic," he says. "We have a system that uses water-based cleaners to degrease and then microbes to digest the waste; thus, no emissions, no hazardous waste to dispose (of)."

Blue Bio launched its services in January and has already attracted customers. Attracting investment is another matter. Financing a biotech company is never easy, even less so for one that’s using existing technology.

"Those who support biotech enterprises, whether they’re from investment organizations or government programs, like to see patents and proprietary technology. But we won’t have that," he says. "Most of the technology that can be used in our market already exists. So we’re focusing instead on building a revenue base and establishing our brand to attract investors to our long-term vision."

He and his partner see the market opportunities in the tougher environmental standards that companies will have to meet in the not-too-distant future. The long-term vision is in the area of converting waste to bio-energy.

One potential project Dennis would like to tackle involves using algae to clean up greenhouse gas emissions. The waste algae, which produce high-quality fat, can then perhaps be refined into a bio-fuel. Being in Nova Scotia with access to ocean algae and people who know how to grow it, Blue Bio could one day be a conduit between marine biotech and the global eco-economy.

BioBusiness Matters is BioNova's monthly column in the Chronicle Herald.