In Iowa, we\u2019ve learned that Renewable Energy Group has completed the sale of substantially all assets of REG Life Sciences\u2019 to Genomatica.<\/p>\n
REG acquired the Life Sciences business in 2014, when it was known as LS9. Since then the team has successfully advanced the technology development over several years including through key strategic partnerships with Exxon Mobil and Clariant. Many of the REG Life Sciences team members will join Genomatica at its San Diego Innovation Center.<\/p>\n
The REG Life Sciences backstory
\nWe last looked in depth at REG Life Sciences in \u201cThe Bio Wilburys: ExxonMobil, REG add Clariant to monumental effort for cellulosic-to-biodiesel \u2014 that\u2019s here \u2014 and in 2016, we reported that REG Life Sciences delivered its first commercial product, a specialty fatty acid.<\/p>\n
REG developed, produced and delivered approximately one metric ton of the renewable, multi-functional chemical to Aroma Chemical Services International. ACS will use the specialty chemical for the production of a high-performance musk ingredient for sale into the $620 million global musk ingredient market.
\nFatty acids are one of three product areas REG Life Sciences has focused on, along with esters and alcohols. Work on this product began last year after REG and ACS identified the specialty fatty acid as particularly well suited for the production of a high-performance musk.<\/p>\n
In 2017, we reported that ExxonMobil and Renewable Energy Group announced that by utilizing REG\u2019s patented fermentation technology, the companies\u2019 joint research program has demonstrated the ability to convert sugars from a variety of non-edible biomass sources into biodiesel.<\/p>\n
But what about the sourcing of the sugars? In January we reported that Clariant will conduct trials at its pre-commercial plant in Straubing, Germany using different types of cellulosic feedstock that will be converted into sugars for conversion by REG and ExxonMobil into high-quality, low-carbon biodiesel.<\/p>\n
More on that storyline here.<\/p>\n
The Genomatica backstory
\nBacked most recently by the spidery web of Ginkgo BioWorks and its sprawling ambitions to deliver better molecules to everyone and everywhere \u2014 and mindful in that respect of Genomatica\u2019s potential to provide better industrial processes to everyone, everywhere for everything bio (though its specific pipelines are into disciplined channels of advantage) \u2014 let\u2019s look at Genomatica and this REG Life Sciences acquisition.<\/p>\n
What they get is an advantaged set of organisms \u2014 a library of advantage, as it were \u2014 and perhaps missing that step of translating an organism into a process for which Genomatica has become justly famed through its work on BDO, butadiene and elsewhere.<\/p>\n
Just a few examples. In March we reported that Covestro and Genomatica launched a partnership for high-performance plant-based materials.<\/p>\n
In February we looked at High Tide for Brontide \u2013 Genomatica\u2019s Butylene Glycol and its markets.<\/p>\n
And last October we looked at Genomatica Magica \u2013 $90 Million Financing, Commercialized Technologies, Biobased Nylon \u2014 that\u2019s here.<\/p>\n
The REG backstory<\/p>\n
We last looked at REG in depth in December in \u201cC.J.s back and REGI\u2019s got her: Warner tapped as new Renewable Energy Group CEO\u201d \u2014 that\u2019s here.<\/p>\n
Reaction from the stakeholders
\n\u201cWe are pleased to be selling our Life Sciences\u2019 assets to Genomatica, who are well positioned to build upon the technical progress we have made, and to advance the team and the technology through to commercialization,\u201d said REG\u2019s CEO Cynthia J. Warner. \u201cAs we focus on our core strategies to grow our fuel business, this deal allows the technology to develop with a new owner while we retain the opportunity to participate in the successful commercialization of the technology in the future.\u201d<\/p>\n
\u201cConsumer demand for sustainable products continues to grow, and successful companies will increasingly switch to ingredients that reduce harm to the environment and work with partners with shared values,\u201d said Christophe Schilling, Genomatica\u2019s CEO. \u201cThis acquisition adds powerful technology and talent to help Genomatica enhance the sustainability of everyday products.\u201d<\/p>\n
For more information about this announcement or inquires related to the technology, contact Genomatica at info@genomatica.com or visit https:\/\/www.genomatica.com\/.<\/p>\n
The Bottom Line
\nWhen REG announced they were on the hunt for a buyer for the Life Sciences unit, we speculated that the acquirer would have a strategic interest in the work with ExxonMobil and Clariant in the area of cellulosics-to-fuels. Genomatica\u2019s interests are bound to be much broader than that \u2014 digging into the substantive library of potential that the old LS9 and then REG Life Sciences developed, to see where these advantaged organisms can be turned into viable, affordable processes and thereby gain the great commercial success that has oft been expected from this unit and team but has so far eluded it over the years of developing its library.<\/p>\n","protected":false},"excerpt":{"rendered":"
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