First bio-succinic acid plant in US receives financial boost
Myriant Corporation has become the first bio-based chemicals company to receive a loan guarantee from the United States Department of Agriculture's (USDA) Business and Industry (B&I) rural development loan guarantee programme.
Of the $25m in bonds sold, $15m is guaranteed by the USDA under its B&I scheme.
The company will use the money to construct the country's first bio-succinic acid plant in Lake Providence in Louisiana, US.
The plant, which is expected to be capable of producing 30 million pounds of bio-succinic acid annually, is scheduled to start commercial operations in the first quarter of 2013.
The plant construction will help energise the US manufacturing base, leading to increased employment in north-east Louisiana, according to Myriant.
The company is currently planning a wider 140 million-pound capacity expansion in the US.
Stephen J. Gatto, Myriant Chairman and chief executive officer, said it is an accomplishment for Myriant to be the first renewable chemicals company to complete a project financing under the USDA's B&I programme.
"At a time when job creation, manufacturing expansion and infrastructure investment are seen as essential elements of the American economic recovery, innovation wrought by the combination of biotechnology, agriculture and manufacturing in America, by Americans, holds great promise for extraordinary growth and a revitalised global technology leadership," added Gatto.
Myriant has also received $50m from the United States Department of Energy (DOE) and a $10m grant from the Lake Providence Port Commission and the Louisiana Department of Transportation for the project.