Genomatica, Covestro Break Through in the Race to Bio-Nylon

More sustainable automotive coatings, nylon-6,6 and specialty nylons, here we come.

Today, let’s chat about HMD, but not the head-mounted displays known by many as virtual reality goggles. Today, let’s look at the molecule, hexamethylenediamine, also known around the bunsen burner as HMD. In this case, bio-HMD, and Covestro and Genomatica have revealed that they now have commercial process technology, and are scaling it up. 

What do we use it for? Well, the afore-mentioned coatings — automotive, construction, furniture, textiles and fibers. Adhesives, too. But really, think nylon 6,6. Which is more important to daily life than Phillips 66, or Route 66.

The nylon market

HMDA has a worldwide market of 2 million tons per year. Case in point: HMDA is a key ingredient in the $6.4B market for nylon-6,6. Each year, the automotive market uses 500,000 tons of polyurethane coating based on HMDA.

How much would manufacturers shift from fossil to bio, at the right price? More or less, all of it, did we mention ‘at the right price’? And may I add, ‘at the right price’?

It’s a big deal, nobody had this

Strategic Avalanche president James Iademarco, one of the ABLC Due Diligence Wolfpack, was, bullish, even wolfish. “Impressive. In my opinion, HMD always was the more strategic molecule in the Nylon 66 polymer and the CAPEX was always so large.  Great to see headway in the space,” he remarked.

Officially, both partners are already processing and testing material from their initial production campaigns, and the resulting bio-HMDA is of high purity and quality, quantities not specifically disclosed except an ambition to produce ton quantities of high-quality material over the course of multiple production campaigns.  We’ve pinky-sworn on specific campaign volumes, but if you’re thinking this is a 66 kilo production run, you’re way under. 

Next steps

Westward Ho! to scale, of course. How soon, when, where, and for how much? We’re still asking. To0 that end, however, we can relate that Covestro has secured an option from Genomatica to license the resulting integrated GENO HMD process technology for commercial production.

The Genomatica backstory

More on Genomatica magic here. and here.

The fame of the company stems from its advances in producing BDO —  renewable plastics, spandex and cosmetics, that’s Genoland. Plus, there’s been noise around butylene glycol and butadiene over the years, but nylon 66, that’s a bigger and better opportunity.

In short, clap hands for Simpheny, a computer modeling platform “designed to make predictions of cellular metabolism and behavior thus speeding research and development for the development of biotechnology products”. It’s sort of the ‘Matica’ engine inside Genomatica. 

Fellow Wolfpacker Steve Slome of Nexant said that this also further validates Genomatica’s commercialization engine, which as I have told Steve MANY times, even if they [exited] BDO (which they won’t), they would still be relevant because of their modeling engine. Bravo, another win for Simpheny! 

The Covestro backstory

With sales of EUR 10.7 billion in 2020, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative, sustainable solutions for products used in many areas of everyday life.

Main customers are the automotive and transport industries, the construction industry, the furniture and wood processing industries, and the electrical, electronics, and household appliance industries. Other sectors include sports and leisure, cosmetics, healthcare and the chemical industry itself. And they tout that “Covestro is becoming fully circular” — nothing we like to hear more at the DIGEST.

Reaction from the stakeholders

The principals are pleased and delighted.

“The increased use of alternative raw materials, including the utilization of biotechnology, is an important pillar of our approach to fully embrace the circular economy and help make it a global guiding principle,” says Covestro CEO Dr. Markus Steilemann. “Our program with Genomatica, which complements our internal R&D, is one of our largest external funding of biotechnology R&D to date, and underscores both the field’s importance to Covestro and the results it can deliver.”

“This program is of great importance to us, because markets are increasingly asking for more environmentally friendly products based on renewable raw materials, which are just as powerful as their fossil-based alternatives,” says Dr. Thorsten Dreier, global head of the Covestro business entity Coatings & Adhesives. “We can reduce this dependence on fossil feedstocks with innovative technology and our partnership. With a purely plant-based HMDA, we can significantly advance our corporate objective of CO2-neutral production.”

“Genomatica is committed to delivering a portfolio of sustainable materials that can help any brand reduce the carbon footprint of its products while maintaining the performance customers count on,” said Christophe Schilling, Genomatica CEO. “Covestro is a valued partner that is leading the way in improving the environmental impact of many of today’s most prevalent materials. Together, we are taking an important step to reduce greenhouse gas emissions for a broad range of products we use in daily life.”

The Bottom Line

Oh, my. People keep trying to knock u[ a bio-based Nylon 66, the market is so big, so visible, companies just can’t hep themselves. For sure, this is the most credible progress we’ve seen to date, given HMD’s strategic role. We’re absent two things, more on that ton-scale ambition, and a confirmation that this is going to be produced at a feasible price. When those are received, it’ll be nothing but blue skies for bio-HMD. Right now, clouds are clearing, and perhaps here comes the sun.