Novamont, a leader in bioplastics production, has partnered with Genomatica, a technology leader for the chemical industry, to create a joint venture that will operate the first industrial plant for butanediol (BDO) production from renewable feedstocks.
The first BDO production plant will be constructed in Italy. Genomatica and Novamont have planned to renovate an existing industrial site to commence BDO production using Genomatica's production processes in late 2012. The facility is estimated to produce about 40 M lbs of BDO per year. Novamont will use the BDO, an intermediate chemical, to address the growing demand for its bioplastic products.
As a part of the agreement, Novamont will grant the necessary capital to build the first European facility. Also, the company will buy the material produced by the plant. Novamont will be responsible for the conversion of an existing site and implementation of Genomatica's BDO production process. Genomatica will deliver the basic engineering services to deploy its BDO production processes and will also provide technology transfer support. An option on a part of the production of the BDO is given to Genomatica. The earnings from the plants will be shared by both the companies in accordance with the particular terms between them.
The upgradation of the BDO process from Genomatica will support the development of Novamont's Mater-Bi Bioplastics. Thus, Genomatica processes are now industrially attractive. These processes revolutionize the chemical industry and they enable efficient production from renewable feedstocks.