Elevance Renewable Sciences: Biofuels Digest’s 2014 5-Minute Guide
Company description:
Headquartered in Woodridge, Ill., Elevance Renewable Sciences, Inc. is a high-growth specialty chemicals company that creates novel specialty chemicals from natural oils. Using a proprietary technology called olefin metathesis at our world-scale, 180,000 MT biorefinery in Gresik, Indonesia, the company creates high-performance products for use in personal care products, detergents and cleaners, engineered polymers, lubricants and additives, and other specialty chemicals markets.
3 Top Milestones for 2010‐13
2010
1. Elevance Renewable Sciences Announces Joint Venture With Wilmar International To Build World Scale Biochemical Refinery
2. Elevance Enters Joint Development Agreement with Stepan to Commercialize Novel Surfactants & Antimicrobials
3. Elevance Renewable Sciences Raises $100 Million in Series C Financing
2011
1. Elevance Renewable Sciences Broadens Technology Portfolio to Include Additional Metathesis Catalysts, Secures Licensing Agreement with XiMo
2. Elevance Renewable Sciences announces acquisition of Delta BioFuels facility in Natchez, MS
3. Clariant and Elevance Renewable Sciences Enter Into a Cooperation for Renewable Products
2012
1. Elevance Renewable Sciences Raises $104 Million in Series E Financing
2. Elevance Renewable Sciences, XiMo AG Announce Significant Advancements in Technology for Metathesizing Natural Oils
3. Elevance Renewable Sciences and Arkema Announce Partnership to Develop, Produce Renewable Polymers
2013
Completion of construction and commencing commercial sales from World-Scale Biochemical Refinery — accomplished and announced July 2013
In October, Elevance announced that it has authorized the next significant stage of its second world-scale biorefinery in Natchez, Miss., in order to expand production of its Inherent renewable building blocks in 2016. The decision is based on the successful start-up and operation of Elevance’s first world-scale joint venture biorefinery in Asia, as well as robust customer activity and demand forecasts for the company’s specialty and intermediate chemicals.
The commercial-scale manufacturing facility in Natchez will produce novel specialty chemicals, including multifunctional esters such as 9-decenoic methyl ester; a unique distribution of bio-based alpha and internal olefins including decene; and a premium mixture of oleochemicals. It will have a capacity of 280,000 MT (approximately 617 million pounds).
The high-value performance specialty chemicals, olefins and oleochemicals produced at the company’s biorefineries will be used in personal care products, detergents and cleaners, lubricants and additives, engineered polymers, and other specialty chemicals markets.
The Natchez biorefinery will initially operate using canola or soybean oil; the Gresik biorefinery is now operating on palm oil. Both plants are capable of running on multiple renewable oil feedstocks, including jatropha or algal oils when they become commercially available.
2014
In February, Versalis and Elevance signed a Memorandum of Understanding to establish a strategic partnership to jointly develop and scale a new metathesis technology to produce bio-chemicals from vegetable oils.
Versalis and Elevance intend to focus on jointly developing and scaling new catalysts, leveraging the significant progress of this technology that has been already accomplished by Elevance. In addition, the partners will assess the design and construction of the first world-scale ethylene metathesis-based production that will utilize renewable oils at the Versalis Porto Marghera site. This will also take advantage of existing infrastructures and production streams. The market applications of the future bio-chemicals production will be personal care, detergents and cleaners, bio-lubricants and oilfield chemicals.
Versalis will contribute its extensive skills in catalysis process development and engineering design scale-up and Elevance will bring proprietary know-how regarding metathesis and associated engineering with the use of vegetable oils in producing specialty chemicals for premium applications, leveraging similar projects in the U.S. and Asia.
Also in February, Elevance announced that it has selected URS Corporation to provide engineering, procurement and construction (EPC) services for its second world-scale biorefinery in Natchez, Miss., ensuring the company remains on track to meet customer forecasts for its Inherent renewable building blocks in 2016. Under the contract, URS’ scope of work involves converting Elevance’s existing biodiesel plant into a new biorefinery.
3 Major Milestone Goals for 2014-15
1. Commercialization of additional novel products from various collaborations into personal care products, detergents and cleaners, engineered polymers, lubricants and additives, and other specialty chemicals markets
2. Completion of engineering and commencing construction on the facility in Natchez, Miss., to convert it into the second Elevance biorefinery
Business Model: Producer and collaborative partner
Elevance was created on the premise that a high-performance, renewable, capital-light, partnership-based business model will provide a unique market position based on a significant and sustainable advantage in the specialty chemicals market. The company has achieved rapid growth as a result and continues to focus on establishing unique partnerships and collaborations. Elevance has established feedstock, technology and manufacturing as well as market partnerships, working with innovative industry leaders to accelerate the production and commercialization of high-performance renewable chemicals.
Elevance is now operating its world-scale biorefinery in Asia, the first based on Elevance’s propriety metathesis technology and a joint venture with Wilmar International. Elevance has made renewable specialty chemicals for existing and potential partners commercially available, and is commercially supplying its partners with better-performing, cost-competitive renewable alternatives to petrochemicals.
Competitive Edge(s):
By simultaneously producing a suite of high-value chemicals from any of several different feedstocks, Elevance’s biorefinery has a distinct economic advantage over other processes, as demonstrated by its ability to be profitable without subsidies. Elevance has a strong intellectual property position, demonstrated by the Nobel Prize awarded to Dr. Robert Grubbs in 2005 for his work developing the core technology, metathesis, which Elevance uses. In addition to its large patent portfolio, Elevance has extensive proprietary knowledge, deep experience from its leadership team and employees, and large, strong investors. Elevance’s business model of collaboration leverages the significant strengths of its partners, like Stepan Company and Wilmar International. Finally, the speed that Elevance is moving in commercializing its business creates a significant advantage.
Elevance has successfully and safely completed the construction, commissioning and startup of its 180,000 MT biorefinery, the first world-scale biorefinery based on its proprietary metathesis technology. The joint venture with Wilmar International, located in Gresik, Indonesia, produces novel specialty chemicals including multifunctional esters such as 9-decenoic acid methyl ester, a unique distribution of bio-based alpha and internal olefins including decene and a premium mixture of oleochemicals. The renewable specialty chemicals are now commercially available and are providing better-performing, cost-competitive alternatives to petrochemicals across multiple industries. Elevance is driving positive changes in the chemical industry at large by delivering products that improve performance and reduce environmental impact — accelerating the transformation of the petrochemical industry to renewable-based products.
Category: 5-Minute Guide
