Genomatica and Novamont have established a joint venture in Europe to produce butanediol (BDO) from renewable feedstocks. Novamont, a producer of biodegradable bioplastics, will consume the BDO for captive use to meet the increasing demand for its products, the companies said Aug. 18.
The first plant is expected to have a production capacity of approximately 40 million pounds per year and will be located in Italy. The companies intend to convert an existing industrial site to use Genomatica’s BDO production processes to begin production of this intermediate chemical by the end of 2012.
Novamont will provide the capital to construct the first plant and purchase the production output from the plant.
Genomatica will have an option on a portion of the BDO production.
Genomatica and Novamont will share the earnings of plants based on specific terms between the companies.
For more information, visit http://www.genomatica.com.