Solugen Inc. received a $213.6 million loan from the U.S. Department of Energy to build a biomanufacturing facility in Marshall, Minnesota.
The loan guarantee is the largest U.S. government investment in bioindustrial manufacturing since President Biden signed an executive order in 2022 to advance biotechnology and biomanufacturing innovation, the Houston-based company said in a June 13 news release.
The facility will be the latest using Solugen’s Bioforge chemical manufacturing platform, which leverages enzymes and metal catalysts produce organic acids. The plant will source dextrose from an adjacent Archer Daniels Midland corn processing complex, the company said.
The new Solugen plant will house three modular production lines dedicated to manufacturing various organic acids.
According to the company, this move will help re-shore production capacity for chemicals predominantly imported from nations like China, thereby enhancing domestic supply chain resilience and stabilizing costs for industrial buyers in the US. Solugen asserts that their bio-based products can potentially offer unit prices up to 40% lower compared to the existing chemicals they intend to replace.
The company plans to work with the local school district and the Southwest Minnesota Private Industry Council to develop career opportunities for students.
Solugen’s first commercial production plant, Bioforge Houston, opened in 2021.
