53.7 F
San Diego
Thursday, Mar 28, 2024
-Advertisement-

Carlsbad Firm Gets $75 Million Boost From Malaysian Partner

Verdezyne Inc. has secured $75 million in debt financing to further its work in renewable chemicals – a development that may cut down on pollution and provide eco-friendly options for products traditionally made from petroleum-based chemicals, such as athletic apparel and carpets.

Officials with the Carlsbad-based industrial biotechnology firm said they will use the funds to build a 20,000-square-foot manufacturing facility on a 6.9-acre plot at a biotechnology park in Malaysia. Verdezyne’s lender and future landlord is a land developer called Malaysian Bio-XCell Sdn Bhd. The two companies signed an agreement that not only provides Verdezyne with the $75 million loan, but also provides Verdezyne with a plot of land and utilities at Bio-XCell’s 160-acre biotechnology park in Johor, Malaysia, which borders Singapore.

“This agreement is part of our strategy of expansion into Asia and represents a huge step toward our goal of replacing petroleum-derived chemicals with renewable replacements,” said Verdezyne’s President and CEO E. William Radany.

The facility will use Verdezyne’s yeast fermentation technology to make commercial chemicals that can be used as an eco-friendly alternative to petroleum when making nylons and polymers. The company said potential customers include large chemical companies such as BASF SE, DuPont and the Dow Chemical Co. Publicly announced customers include Universal Fiber, Inc., a company that makes carpet.

Environmental Impacts of Petro-Chem

Although most people associate crude oil with gasoline, the petroleum industry fuels a lot more than transportation. A typical 42-gallon barrel of crude oil yields about 20 gallons of gasoline and 4 gallons of jet fuel, according to the U.S. Department of Energy. The remaining 18 gallons are used to create a variety of consumer goods.

An average person’s home contains the following petroleum-based products: shampoos, soaps, shoe polish, motor oil, athletic apparel — even the carpet on which you walk.

Although important to many markets, the oil industry poses hazards to the environment. Jacqueline Mariano, an energy specialist at the National Petroleum Agency of Brazil and co-author of “Environmental Impacts of the Oil Industry,” said the oil industry impacts the environment on every level — air, water, soil – and, consequently, all living beings on the planet.

“The most widespread and dangerous consequence of oil and gas industry activities is pollution,” Mariano said. “Pollution is associated with virtually all activities throughout stages of oil and gas production, from exploratory activities to refining. Wastewaters, gas emissions, solid waste and aerosols generated during drilling, production, refining and transportation amount to over 800 different chemicals, among which, of course, prevail oil and petroleum products.”

‘Green’ chemicals

Verdezyne hopes to break the hold petro-chem has on the industry by selling bio-based chemicals to companies making nylons and polymers using a process that greatly reduces greenhouse gases and toxic byproducts.

Verdezyne’s chemicals are derived from vegetable oils rather than petroleum. Most oilseed production involves crushing the seed, extracting the oil and then going through a refining process during which impurities and color are taken out of the product before it arrives on supermarket shelves. When oil is refined, an impure side stream of fatty goo is a byproduct. The byproducts are often used to make soaps, binding agents or simply disposed of, said Verdezyne’s CFO Brian Conn.

Verdezyne can take this byproduct, process and refine it into chemicals such as dodecanedioic acids, or DDDA. This allows Verdezyne to make plant-based chemicals without disrupting the food chain.

When it comes to palm seed oil production, Radany said territories that are five degrees north and five degrees south of the equator are ideal for plantations. While Indonesia, Africa and South America have a booming palm industry, Conn said Malaysia has a more mature process of palm production that avoids chopping down more trees.

Verdezyne has sought out relationships with Malaysian partners, including Sime Darby Bhd, a major Malyasia-based multinational conglomerate and the world’s largest producer of sustainable palm oil. The relationship is beneficial to all players involved, Conn said.

“Malaysia needs to get more value out of palm because they are not planting new plantations,” Conn said. “We create that value by taking one of their raw materials and basically tripling the value of it. It allows their economy to grow without continuing deforestation.”

The new facility in Malaysia will be the world’s first plant for the production of bio-based DDDA. Construction on the project is set to commence in 2015.

-Advertisement-

Featured Articles

Oberon Eyes Europe for Renewable DME

Leaders of Influence in Law 2024

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-
-Advertisement-