Novamont and Genomatica have formed a joint venture (JV) to operate the first butanediol (BDO) industrial plant in Europe to use renewable feedstocks.
Novamont will have the majority of the equity, while Genomatica will have a minority interest in the new JV. As per the agreement, Novamont is investing $50m in the plant to convert an existing lysine production facility at Adria to produce 40 million pounds a year of bioBDO from renewable feedstocks using Genomatica's biotech process, which is expected to start production in 2013.
Novamont said it will use the BDO for its own internal use to meet the increasing demand for its biopolymer products that incorporate BDO as a key monomer. Both companies said that their new agreement considers Novamont building a second BDO plant using Genomatica's process, which is expected to use a renewable feedstock comprised of biomass sugars.
Novamont CEO Catia Bastioli said Genomatica's BDO is the exact same chemical they've been using, and is the direct equivalent of petroleum-based BDO but with a smaller environmental footprint, while Genomatica CEO Christophe Schilling said Genomatica's process technologies will enable a new approach to chemical production - smaller-scale, capital-efficient manufacturing from renewable feedstocks that they believe fulfils customer needs across the value chain.
Genomatica delivers new, transformative manufacturing processes to its partners that enable them to produce intermediate and basic chemicals from renewable feedstocks.
Novamont, a joint investment of Intesa SanPaolo and Investitori Associati, is involved in the production of bioplastics containing renewable raw materials of agricultural origin. It owns a wide range of proprietary and proven technologies in connection with its bio-refinery model closely linked to the territory by working in partnership with the agricultural, industrial, institutional and academic sectors.
