Genomatica: Biofuels Digest’s 5-Minute Guide
Address: 10520 Wateridge Circle San Diego, CA 92121
Year Founded: 2000
Annual Revenues: 2011: $4.3 million
Company description:
Genomatica is a technology leader for the chemical industry. It delivers new manufacturing processes that enable its partners to produce intermediate and basic chemicals from renewable feedstocks. These chemicals serve as the basis for making substantially all of the products that make modern life possible. Genomatica’s processes are designed to achieve better economics with enhanced sustainability and a smaller environmental footprint than petroleum-based manufacturing processes.
Genomatica is developing a pipeline of manufacturing processes for the production of major chemicals, starting with BDO (1,4-butanediol). The first commercial-scale BDO plant that uses Genomatica’s BDO process is expected to begin production in 2013, at a Novamont plant. Genomatica has announced that butadiene will be its second targeted commercial process, and Versalis and Novamont have joined its bio-butadiene program following the successful production of pound quantities from renewable sources. Genomatica has intellectual property for over 20 major chemicals and has a distinctive technology platform, recognized by the distinguished EPA Presidential Green Chemistry Challenge award, that facilitates a productive approach to developing processes for additional chemical targets.
Genomatica’s strategy is to license its technology to major companies worldwide. By developing processes that produce the exact same chemicals used today in value chains, and working with and through partners, Genomatica believes that there is the potential for rapid industry adoption. This approach was recognized for its transformative potential by the previously-mentioned EPA award, the CONNECT Most Innovative Product award, and being named a finalist for two ICIS innovation awards, with final judging in process as of August 2012. Genomatica partners include Novamont, Mitsubishi, Versalis, Gruppo M&G, Waste Management and Tate & Lyle.
Major Investors
Genomatica has raised $125 million from venture capital and strategic investors including Alloy Ventures, Bright Capital, Draper Fisher Jurvetson, Mitsubishi Chemical, Mohr Davidow Ventures, TPG Biotech, VantagePoint Capital Partners, Versalis and Waste Management.
Past Milestones
- Validated Genomatica’s process for the production of BDO at demonstration scale
- Signed first wave of strategic partnerships, with Tate & Lyle (demonstration-scale validation); Waste Management (joint development for syngas from waste as feedstock); M&G (PROESA biomass technology); Novamont and Mitsubishi (MOUs for BDO plants in Europe and Asia)
- Produced pounds of bio-based butadiene
Future Milestones
- Commercial-scale production of BDO by our partners, to start by end of 2013
- Sign agreements for additional BDO plants (e.g. in Asia and the Americas)
- Sign additional partners to our bio-butadiene program, and advance our process
- Progress toward using biomass as feedstock
Business Model:
Genomatica is focused on licensing its process technology to partners as the most effective way to bring our products to market. We can more quickly make an impact by leveraging the scale, operating experience, applications expertise, market expertise, distribution channels and capital of industry leaders.
As examples:
– Novamont has signed a joint venture to license our process technology for the commercial-scale production of BDO in Italy (40 million pounds per year) and is providing all the construction capital;
– Mitsubishi has entered a limited exclusivity agreement regarding BDO plants in Asia;
– Versalis and Novamont have joined our bio-butadiene program, and Versalis has invested in Genomatica;
– Waste Management is working with Genomatica to develop process technology to harness syngas from municipal solid waste as a renewable feedstock;
– Beta Renewables (a joint venture formed from M&G’s Chemtex division) has provided an exclusive license to Genomatica for the production of BDO from biomass via any route.
Competitive Edge(s):
As seen by a licensor: Genomatica’s processes actually work; deliver competitive economics; and provide feedstock flexibility.
– It works: For example, BDO produced using Genomatica’s process has been successfully converted into major downstream products by multiple companies, speeding product acceptance and integration. The BDO process has been scaling up reliably and along well-known paths, and is moving rapidly toward full commercial-scale production (expected by the end of 2013).
– Process economics are highly competitive: The ultimate proof point has been companies (such as Novamont) investing their own money to build plants based on a Genomatica technology – providing a significant show of confidence. Industry analysts estimate that Genomatica’s direct, single-step process should have superior economics – in capital expenses and in operating cash costs – than indirect bio-based routes for BDO, such as using bio-succinic as an intermediate.
– Feedstock flexibility: Genomatica’s initial process for BDO provides the industry with the use of a range of conventional sugars as an alternative to oil and natural gas. Genomatica is working actively on harnessing biomass as a further alternative, and has also started work on using syngas from municipal solid waste.
For Genomatica, in developing additional processes: Genomatica’s distinctive technology platform – and extensive intellectual property on over 20 major industrial chemicals – provide a significant advantage in approaching and mastering the development of cost-effective processes for multiple intermediate and basic chemicals, over time. This has been validated through the distinctive EPA Presidential Green Chemistry Challenge Award (previously won by a team from the two largest firms in the industry); by initial partnerships with Versalis and Novamont to support Genomatica’s second process (for butadiene); and by Waste Management’s support of a third process to be developed.
Research, or Manufacturing Partnerships or Alliances:
– Beta Renewables and Chemtex: to develop an integrated process for biomass to BDO
– Versalis and Novamont: to develop an integrated process for biomass to butadiene
– Waste Management: develop a process for waste to syngas to chemicals; develop process for a specific chemical
– Novamont: for production of BDO in Italy
– Mitsubishi: exploring production of BDO in Asia
Stage: (Bench, pilot, demonstration, commercial)
– Proven at demonstration scale; ongoing production of tons of BDO.
– Committed commercial-scale partners (e.g. Novamont has purchased a site and is retrofitting for production of BDO using Genomatica’s process).
Website URL: www.genomatica.com
Category: 5-Minute Guide
