European Chemical Industry News & Insights

Novamont and Genomatica Form JV for European BDO Plant

At a glance
  • The JV will convert an existing facility in Adria, Italy to produce 40 million pounds of BDO annually from renewable feedstocks.
  • Initial production is expected in 2013.
  • Novamont will finance and operate the plant.
  • A second BDO plant using biomass sugars is planned.

Joint Venture Agreement

Genomatica and Novamont have signed a definitive agreement to establish a joint venture (JV) for the first industrial plant in Europe producing butanediol (BDO) directly from renewable feedstocks. Novamont will hold the majority equity in the JV, while Genomatica will have a minority interest. This follows a letter of intent announced on August 18, 2011.

Plant Conversion and Production

Under the agreement, Novamont is converting an existing facility in Adria, Italy to utilize Genomatica’s BDO process. The plant conversion is financed by Novamont, which will also operate the facility. The plant is expected to have a production capacity of approximately 40 million pounds per year, with initial production slated for 2013. Novamont has committed to purchasing all output from the plant, while Genomatica may purchase a portion to support further market development.

Future Plans

The agreement also includes plans for Novamont to build and operate a second BDO plant using Genomatica’s process, which will use biomass sugars as the renewable feedstock.

Environmental Impact

Genomatica’s BDO process provides Novamont with BDO made from renewable feedstocks, aligning with Novamont’s strategy to use more bio-based raw materials in its MATER-BI biopolymer products. The BDO produced is chemically identical to petroleum-based BDO but has a smaller environmental footprint.