SAN DIEGO, CALF. (Jan. 23, 2:15 p.m. ET) — Genomatic Inc. and Novamont SpA have signed a definitive agreement to create a joint venture plant in Europe that will make butanediol directly from renewable feedstocks.
The companies had announced a letter of intent to form the venture in August.
The companies expect initial production of BDO in 2013. BDO is an intermediate that can be used in polymers like Novamont's biodegradable plastic, Mater-Bi.
According to the companies, the JV will convert an existing Novamont plant in Adria, Italy, into a 40 million pound-per-year BDO plant. The facility will use San Diego-based Genomatic's production process.
Novara, Italy will provide capital for the project, and will commit to buy the plant's output.
“Genomatica's process technologies enable a new approach to chemical production – smaller-scale, capital-efficient manufacturing from renewable feedstocks that we believe fulfills customer needs across the value chain,” said Christophe Schilling, CEO of Genomatica, in a news release.