Novamont, Genomatica sign Europe JV for bio-BDO
Novamont and Genomatica have signed a definitive agreement establishing a joint venture (JV) for the first industrial plant in Europe producing butanediol (BDO) directly from renewable feedstocks, the companies said on Friday.
This follows the announcement on August 18, 2011, of a letter of intent between the companies.
Novamont will have a majority of the equity in the JV, and Genomatica a minority interest.
Novamont, a leading producer of biodegradable bioplastics, will consume the BDO for its own internal use to meet the increasing demand for its biopolymer products that incorporate BDO as a key monomer, the company said.
Under the agreement, Novamont is converting an existing facility in Adria, Italy, to use Genomatica's BDO process.
Novamont is financing the plant conversion and will operate the plant, which is expected to have a production capacity of approximately 40 million pounds/year.
Initial production is expected in 2013.
Novamont has committed to purchasing all of the output from the plant, while Genomatica may purchase a portion at its discretion to support further market development, the companies said.
Novamont said it is also considering building and operating a second BDO plant using Genomatica's process, which is expected to use biomass sugars as the renewable feedstock.
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