{"id":19237,"date":"2014-02-14T02:09:46","date_gmt":"2014-02-14T00:09:46","guid":{"rendered":"https:\/\/renewable-carbon.eu\/news\/?p=19237"},"modified":"2014-02-13T15:11:06","modified_gmt":"2014-02-13T13:11:06","slug":"adm-invests-25m-rennovia-complete-story","status":"publish","type":"post","link":"https:\/\/renewable-carbon.eu\/news\/adm-invests-25m-rennovia-complete-story\/","title":{"rendered":"ADM invests $25M in Rennovia: the complete story"},"content":{"rendered":"<p>Plus a multi-billion dollar market, a big partner in ADM, and big ambitions in adipic, glucaric and gluconic acids.<\/p>\n<h3>What\u2019s not to love about Rennovia?<\/h3>\n<p>In Illinois, Archer Daniels Midland Company and Rennovia, Inc. announced today that ADM has committed to a $25 million equity investment in the privately held company, which develops catalysts and processes for the cost-advantaged production of chemical products from renewable feedstocks.<\/p>\n<p>The company\u2019s first products are nylon intermediates adipic acid and hexamethylenediamine (HMD). ADM\u2019s investment will be used for research and development programs and continuing operations.<\/p>\n<h3>The partners say nice things about each other<\/h3>\n<p>\u201cThis investment is part of ADM\u2019s ongoing efforts to enhance returns by strengthening our portfolio of higher-margin products,\u201d said Kevin Moore, ADM vice president, Renewable Chemicals. \u201cThere is significant and growing demand for chemical products made from renewable feedstocks. We are impressed with the technology Rennovia is developing, and look forward to the opportunity for its products to join our current portfolio of renewable chemicals\u2014like propylene glycol and ethylene glycol\u2014as they offer increased access to attractive end markets in nylons and other materials.\u201d<\/p>\n<p>\u201cWe are committed to continuing to identify novel technologies that provide high yields and low conversion costs,\u201d said Todd Werpy, ADM senior vice president, Research and Development. \u201cWe believe that the new technologies being developed by Rennovia, coupled with ADM\u2019s strength in manufacturing, will help us to deliver competitive products that complement our growing portfolio.\u201d<\/p>\n<p>\u201cWe are delighted to have the support of ADM as a strategic financial investor to scale-up and commercialize our bio-based chemical process technologies,\u201d said Robert Wedinger, President and CEO of Rennovia. \u201cADM\u2019s position as a leading producer of refined carbohydrates, combined with their focus on bio-based chemicals production, make them an ideal investor for Rennovia.\u201d<\/p>\n<h3>ADM\u2019s latest excellent adventures<\/h3>\n<p>ADM\u2019s most recent activities in renewable chemicals have focused on its work with Solazyme in Clinton, Iowa. Two weeks ago, Solazyme announced that commercial operations have commenced at both Archer Daniels Midland Company\u2019s Clinton, Iowa facility, and the downstream companion facility operated by American Natural Products in Galva, Iowa.<\/p>\n<p>Solazyme, ADM and ANP have successfully manufactured three distinct and unique tailored oil products at the facilities, and products are currently being sold and distributed in both the U.S. and Brazil. Production at the ADM and ANP facilities is expected to ramp to a nameplate capacity of 20,000 MT\/yr within 12-18 months, with targeted potential expansion to 100,000 MT\/yr in subsequent years.<\/p>\n<p>Uses? Solazyme noted, in a release, that \u201ctruckloads of product are now shipping from the Iowa operations for use in applications including lubricants, metalworking and home and personal care. These shipments are being made pursuant to multiple supply agreements as well as spot purchases, and include reorders.\u201d<\/p>\n<h3>But wait, there\u2019s more.<\/h3>\n<p>Last August, Archer Daniels Midland Company\u00a0<a href=\"http:\/\/www.biofuelsdigest.com\/bdigest\/2013\/08\/28\/adm-joins-with-cic-holdings-and-chemanex-to-produce-bio-based-superabsorbent-polymers\/\">announced that it has joined with CIC Holdings and Chemanex PLC<\/a>\u00a0in a joint venture to build and operate a processing facility near Colombo, Sri Lanka, to manufacture bio-based superabsorbent polymers. These products are commonly used in food packaging, personal-care products and various industrial applications.<\/p>\n<p>ADM will be the majority owner of the venture and will market the plant\u2019s production of ADM\u2019s BioSAP brand superabsorbents.\u00a0 The BioSAP produced at the plant will be derived from starches obtained from agricultural feedstocks. Superabsorbent polymers, or SAPs, are traditionally produced from petroleum derivatives.<\/p>\n<h3>The world of adipic acid<\/h3>\n<p>As we pointed out in \u201c<em><a href=\"http:\/\/www.biofuelsdigest.com\/bdigest\/2011\/12\/21\/the-magic-word-is%E2%80%A6adipic-looking-at-verdezyne-and-its-bull-markets\/\">The Magic Word is\u2026Adipic<\/a>\u201c<\/em><\/p>\n<p><strong>Renewablechemicals.<\/strong>\u00a0Say it all together, real fast.\u00a0Especially in bio-based investment meetings as the universal answer to any annoyingly difficult question that cannot otherwise be answered with \u201cBrazil\u201d.<\/p>\n<p>How do you expect to make money? Renewablechemicals. Biofuels, aren\u2019t they a money pit? Renewablechemicals. Aren\u2019t there big infrastructure issues? Renewablechemicals. Why should I invest in you? Renewablechemicals.<\/p>\n<p>And within that world is noble adipic. Bioindustry entrepreneur, howl it it like the hungry wolf you are.<\/p>\n<p>But think nylon, the wonder material. Friend of low-cost carpet, your latest pair of Jimmy Choo sneakers, or mass-market, ready-to-wear fashion sold at everyday low prices. Adipic is a major precursor.<\/p>\n<p>You want green nylon? (Hint: Nike does, and Toyota) You may need renewably produced adipic acid. Who\u2019s in the nylon hunt? Oh, just a bunch of companies like Ashai Kasei, BASF, DSM, Dupont, Honeywell, Huntsman, Koch, Lanxess, and Rhodia.\u00a0Now, renewable adipic acid is being chased by companies that do not have the star brand power of, say, Dupont. But what they lack in visibility they make up in speed and nimbleness. Companies like Rennovia, Genomatica, BioAmber and Verdezyne.<\/p>\n<h3>Competing paths to nylon 6,6<\/h3>\n<p>Adipic isn\u2019t the only way. There\u2019s butadiene, generally thought of as a path to polybutadiene rubber (PBR) and styrene butadiene rubber (SBR), two types of synthetic rubbers used globally to replace natural rubber. But also a key intermediate chemical used by INVISTA for the production of adiponitrile (ADN), which in turn is a critical intermediate chemical used in the manufacture of nylon 6,6.<\/p>\n<p>And Cobalt and Genomatica\/Versalis are hot on the trail of butadiene, with LanzaTech\/INVISTA, Arzeda\/INVISTA and Global Bioenergies\/Synthos also getting into the game<\/p>\n<h3>What about Rennovia, anyway?<\/h3>\n<p>We pointed out in \u201cGet cracking!\u201d that chemocatalysis is hot, hot hot this year. And Rennovia is an example \u2014 minimizing supply chain risk by employing renewable raw materials instead of petroleum to produce popular chemicals, while minimizing conversion risk by utilizing chemo-catalysis process technology in place of fermentation.<\/p>\n<h3>Looking at Rennovia in depth<\/h3>\n<p><strong>The Mission<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"Rennovia-1\" src=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-1.png\" width=\"475\" height=\"133\" data-cfsrc=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-1.png\" \/><\/p>\n<p><strong>Rennovia\u2019s gluconic, glucaric and adipic acids and the path to nylons, polurethanes, ployesters and more<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"Rennovia-2\" src=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-2.png\" width=\"475\" height=\"335\" data-cfsrc=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-2.png\" \/><\/p>\n<p><strong>Rennovia vs petroleum<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"Rennovia-3\" src=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-3.png\" width=\"475\" height=\"338\" data-cfsrc=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-3.png\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Rennovia vs fermentation<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"Rennovia-4\" src=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-4.png\" width=\"475\" height=\"328\" data-cfsrc=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-4.png\" \/><\/p>\n<p><strong>Timeline to scale<\/strong><\/p>\n<p>(Back in spring 2012, the path looked like this\u2026)<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"Rennovia-5\" src=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-5.png\" width=\"475\" height=\"330\" data-cfsrc=\"http:\/\/www.biofuelsdigest.com\/bdigest\/wp-content\/uploads\/2014\/02\/Rennovia-5.png\" \/><\/p>\n<h3>The latest from Rennovia<\/h3>\n<p>Last October, we reported that Rennovia produced, and shipped to a prospective partner, samples of what it believes to be the world\u2019s first 100% bio-based nylon-6,6 polymer, under Rennovia\u2019s RENNLON brand, made from Rennovia\u2019s renewable monomers, RENNLON adipic acid and RENNLON hexamethylenediamine.<\/p>\n<p>Production costs for Rennovia\u2019s bio-based AA and HMD are projected to be 20-25% below that of conventional petroleum-based AA and HMD, with a significantly lower per-pound capital cost. Additional projected benefits include an 85% reduction in greenhouse gas emissions compared to conventional petroleum-derived AA, and a 50% reduction in GHG emissions compared to conventional petroleum-derived HMD.<\/p>\n<h3>The bottom line<\/h3>\n<p>$25M is not commercial-scale finance. But it\u2019s a huge vote of confidence in Rennovia\u2019s path as it opens up new chemicals for scale-up. We said \u201cGet Cracking!\u201d and ADM and Rennovia have certainly grabbed the whip.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Plus a multi-billion dollar market, a big partner in ADM, and big ambitions in adipic, glucaric and gluconic acids. What\u2019s not to love about Rennovia? In Illinois, Archer Daniels Midland Company and Rennovia, Inc. announced today that ADM has committed to a $25 million equity investment in the privately held company, which develops catalysts and [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","nova_meta_subtitle":"","footnotes":""},"categories":[5572],"tags":[],"supplier":[6497,196,4468,4356,75,1180,5425,5424,2395,12205,337,2414,1534,1509,12926,3374,3591,722,2392,4896,1599,3496,12050,2420,3752],"class_list":["post-19237","post","type-post","status-publish","format-standard","hentry","category-bio-based","supplier-american-natural-products","supplier-archer-daniels-midland-company-adm","supplier-arzeda-corp","supplier-asahi-kasei-corp","supplier-basf-se","supplier-bioamber-inc","supplier-chemanex-plc","supplier-cic-holdings","supplier-cobalt-technologies-inc","supplier-dsm","supplier-dupont","supplier-genomatica-inc","supplier-global-bioenergies","supplier-honeywell","supplier-huntsman-corporation","supplier-invista","supplier-koch-technik","supplier-lanxess-ag","supplier-lanzatech","supplier-rennovia","supplier-rhodia","supplier-synthos-sa","supplier-terravia","supplier-verdezyne-inc","supplier-versalis"],"_links":{"self":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/19237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/comments?post=19237"}],"version-history":[{"count":0,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/19237\/revisions"}],"wp:attachment":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media?parent=19237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/categories?post=19237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/tags?post=19237"},{"taxonomy":"supplier","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/supplier?post=19237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}