Verdezyne: Biofuels Digest’s 5-Minute Guide

Verdezyne is a privately held company developing and commercializing novel genetically engineered microorganisms for use as “factories” to manufacture chemicals and fuels, using renewable feedstocks. Verdezyne’s unique microorganisms permit greener, cleaner and more cost effective production of chemicals and fuels as compared with traditional methods. The Company is commercializing its technology through partnerships with leading chemical and fuel manufacturers.

Address:
2715 Loker Ave. West
Carlsbad, CA 92010

Year founded: 2005

Major Investors 
OVP Venture Partners
Monitor Ventures

Type of Processing Technology(ies):
Verdezyne is a product-focused company that is leveraging its technology platform to optimize the metabolic pathways, microorganisms and fermentation processes that enable economical production of renewable fuels and chemicals

Products:
Biobased adipic acid (a platform chemical)
Bioethanol

Feedstocks:
C6 sugars, C5 sugars (biomass, cellulosic sugars), plant-based oils, by-products from plant-based oil processing, paraffins

Co-products
Feed

Past Milestones

• Production of adipic acid biologically
• Partnership agreement with Lallemand Ethanol Technologies to develop and commercialize a genetically enhanced high-yield ethanol producing yeast
• Production of adipic acid from plant-based oil (mixed fatty acids)
• In January 2012, the company was awarded U.S. Patent No. 8,093,037, titled “Engineered Microorganisms With Enhanced Fermentation Activity” for the company’s engineering of a yeast which incorporates xylose isomerase, a key enzyme in the fermentation of certain pentose (“C-5”) sugars to ethanol and other products. In December, Verdezyne announced the sale of its proprietary xylose isomerase technology, enabling the metabolism of 5-carbon sugars, to DuPont Industrial Biosciences. Under the terms of the sale, DuPont purchased rights to Verdezyne’s patented xylose isomerase technology, covered by U.S. Patent Nos. 8,114,974 and 8,093,037, for use in the rapidly-commercializing biofuels and biochemical fields.
• In August, Verdezyne was granted U.S. Patent No. 8,241,879, titled “Biological Methods for Preparing Adipic Acid.” This covers one of the company’s proprietary processes for selectively converting non-petroleum oils into adipic acid – a key component used to manufacture sustainable nylon 6,6, thermoplastic polyurethane resins and coatings from renewable sources. Verdezyne has designed its proprietary adipic acid process specifically for the production of nylon 6,6. The company believes its renewably sourced adipic acid will be cost-advantaged compared with standard adipic acid, as well as being more environmentally-friendly.
• In December 2012, Verdezyne has entered into a strategic relationship with Universal Fiber Systems, and its operating companies, Universal Fibers and Premiere L Fibers.  Verdezyne will supply its bio-based adipic acid to Universal Fiber Systems for certain exclusive fields of use.
• The company was ranked #25 in the 30 Hottest Companies in Renewable Chemicals and Biomaterials for 2012-13.

Future Milestones

• Commercialize and sell (through our partnership with Lallemand) enhanced yeast, with increased yield and productivity for current ethanol producers
• Announce commercial cellulosic ethanol partner
• Announce commercial adipic acid partner

Business Model:
Technology licensor

Competitive Edge(s):
Verdezyne is a product-focused company that is leveraging its technology platform to optimize the metabolic pathways, microorganisms and fermentation processes that enable economical production of renewable fuels and chemicals.

Verdezyne aggressively pursues intellectual property protection for all aspects of its technology platform and product portfolio. Verdezyne’s yeast platform, including the proprietary metabolic engineering methodology “Combinatorial Pathway Engineering” and trade secret algorithms for protein optimization, allows rapid and efficacious strain development with pathways for ethanol, lignocellulosic ethanol and adipic acid.

Distribution, Research, Marketing or Production Partnerships or Alliances.
Lallemand Ethanol Technologies

Stage
1st Generation Ethanol: pilot-scale
Cellulosic Ethanol: lab-scale
Biobased Adipic Acid: lab-scale

Website