ADM to invest $25M in bio-based chemicals company Rennovia
11 February 2014
Archer Daniels Midland Company has committed to a $25-million equity investment in Rennovia, Inc., a privately held company which develops catalysts and processes for the cost-advantaged production of chemical products from renewable feedstocks.
Founded in 2009, the company’s first products are nylon intermediates adipic acid and hexamethylenediamine (HMD). ADM’s investment will be used for research and development programs and continuing operations.
Rennovia says that its high-throughput technology enables not only the synthesis and screening of tens of thousands of catalyst formulations in a short period of time, but also the development of basic process conditions under which chemicals derived from bio-renewable feedstocks could be economically producible. Rennovia currently has the capability of scaling process technologies through pilot scale operation, and intends working with partners to scale its processes to demonstration and full commercial scale.
This investment is part of ADM’s ongoing efforts to enhance returns by strengthening our portfolio of higher-margin products. There is significant and growing demand for chemical products made from renewable feedstocks. We are impressed with the technology Rennovia is developing, and look forward to the opportunity for its products to join our current portfolio of renewable chemicals—like propylene glycol and ethylene glycol—as they offer increased access to attractive end markets in nylons and other materials.—Kevin Moore, ADM vice president, Renewable Chemicals