Renmatix: Biofuels Digest’s 2014 5-Minute Guide

Renmatix is a technology licensor that enables the production of petrochemicals from plants. The company’s water-based Plantrose™ process is the lowest cost method for converting a wide range of non-food biomass into cellulosic sugars, used in the global chemical and fuels markets. Renmatix’s supercritical hydrolysis technology deconstructs non-food biomass an order of magnitude faster than other processes and enhances its cost advantage by using no significant consumables. Renmatix is privately held, with operations in Georgia (USA) currently capable of converting three dry tons of cellulosic biomass to Plantro™ sugar per day, and a world-class technical center in Pennsylvania (USA).

Rankings

50 Hottest Companies in Bioenergy: #34, 2013/14

30 Hottest Companies in Biobased Chemicals & Materials: #17, 2013/14

The Situation

As we wrote in December 2013, “Here comes the whale”. BASF and Renmatix signed a non-exclusive joint development agreement to scale up the Renmatix Plantrose process for the production of industrial sugars based on lignocellulosic biomass. The parties have agreed to key financial terms for future commercial licenses, which BASF can exercise at its discretion. The collaboration follows BASF’s $30 million investment in Renmatix in January 2012.

“The train is out of the station,” said Renmatix CEO Mike Hamilton, “in terms of the demand for renewable materials. What has to happen now is to enable very cost effective, sustainable sol

The news follows closely on an announce last week by Renmatix and Virent of a strategic collaboration to convert affordable cellulosic sugars to renewable chemicals and bio-based packaging materials. Specifically, under the terms of the multi-phase development project, Renmatix’s Plantrose platform will be evaluated and potentially optimized to provide an affordable sugar stream for Virent’s Bioforming process for the large-scale production of bio-based paraxylene.

Major Investors
Kleiner Perkins Caufield & Byers
BASF (BAS:Xetra)
Waste Management (WM: NYSE)

Top Past Milestones for 2011-13

• Raised $75M in Series C from strategic investors BASF and Waste Management, as well as new and existing venture investors
• Entered formal JDA with BASF to jointly scale the Plantrose™ process for the production of industrial sugars from lignocellulosic biomass
• Entered formal JDA with UPM to support its sugar to biochemical strategy and Biofore vision by licensing Plantrose technology.

In June 2013, UPM and Renmatix entered into a joint development agreement in the area of biochemicals.

For those less familiar with the giants of the European pulp & paper industry, the Finland-based UPM is right at the top of the stack — the company’s symbol, the griffin, perched atop many of the signature pulp & paper mills around the world.

Some time ago, UPM had set out on an ambitious BioFore strategy with a clear goal of leveraging its strength in aggregation and processing of wood resources into a series of new ventures in biofuels as well as renewable chemicals.

Impressively, and rarely for the cash-strapped pulp & paper sector, UPM had utilized their balance sheet in developing the world’s first wood-based renewable diesel refinery in Lappeenranta, starting construction last summer. UPM’s Lappeenranta biorefinery, constructed without any public funding, will produce diesel out of crude tall oil, a residue of pulp production. The process is based on hydrotreatment and production will start in summer 2014 — initial capacity in the sub-10 million gallon range but with a potential capacity to expand out to 55 million gallons per year.

In January 2013, the company commissioned its BioFlex Conversion Unit, a multiple-feedstock processing facility in King of Prusssia that will convert hardwood, perennial grasses, agricultural residues, softwoods and waste streams into cellulosic sugars for Renmatix’s downstream fuel and chemical strategic partners. Renmatix CEO Mike Hamilton referred at the time to a new wave of “farmistry” — reflecting a complimentary interest in agriculture and chemistry — driving the creation of added value for many types of locally grown biomass.

3 Major Milestone Goals for 2014‐16

• Execute on all JDA milestones to enable partner investment decisions and break ground at a minimum of one commercial facility
• Deliver on current license agreements and execute additional licenses for the Renmatix technology globally
• Continue broadening the scope of partners we work with and feedstocks qualified on the Plantrose technology

Business Model:

Renmatix has and will continue to license Plantrose to partners both upstream (feedstock) and downstream (sugar users) on a non-exclusive basis

Competitive Edge(s):

Renmatix produces the lowest-cost cellulosic sugars from a variety of feedstocks. Its Plantrose process uses water at elevated temperatures and pressures to break down biomass in seconds, rather than hours, and without any significant consumables. With low operating and capital costs, Renmatix will be competitive with corn and cane sugar at its first commercial facility. The Renmatix Plantro sugars have been successfully converted into more than a dozen chemicals and fuels by downstream partners such as BASF and UPM

Stage 

Current operating facilities include:
• Bioflex Conversion Unit – capacity of 100 kg dry biomass to sugar per day
• Demonstration – capacity of 3 dry tons of biomass to sugar per day
• Commercial – commence commercial scale build, in one or more selected locations, 2015

Company website