Versalis, Eni’s chemicals subsidiary
leader in the production of elastomers, together with Genomatica and Novamont signed a Memorandum of
Understanding (MOU) to establish a strategic partnership to enable production
of butadiene from renewable feedstocks.

Butadiene
is a raw material used in the production of rubber for tires, electrical
appliances, footwear, plastics, asphalt modifiers, additives for lubricating
oil, pipes, building components, and latex.

The
partnership, on the basis of which a joint venture will be established, will
develop a comprehensive end-to-end process for production of polymer-grade
butadiene from biomass. Versalis will hold a majority interest in the
joint venture holding company and aims to be the first to build commercial
plants using the process technology upon project success.

This
agreement brings together the core competencies of all three companies. The
partnership will leverage Genomatica’s proprietary technologies and
intellectual property for producing butadiene, Versalis’ extensive expertise in
catalysis process development and process engineering scale-up and market
applications of butadiene derivatives, as well as Novamont’s experience in
renewable feedstocks.

Under
this agreement, Versalis will use Genomatica’s process technology for economically
competitive and sustainable production of an important supply-constrained
chemical. The process technology aspect of the agreement is intended to be made
available for future licensing in Europe, Africa, and Asia.

Butadiene
is a key intermediate for Versalis elastomers business. The raw material
required to produce it, extracted from ‘C4’s (a mixture of molecules containing
four carbon atoms) and produced by cracking plants, is increasingly subject to
availability problems.

Decreasing
supplies and a lack of dedicated butadiene production facilities have resulted
in significant long-term pressure on the price and volatility of the chemical,
which in turn increases the price of butadiene-based products, including tires.

Concerns
of scarcity in the butadiene market are compounded by growth forecasts within
the BRIC countries where demand for automotive products made from butadiene,
such as tires, is expected to increase.

In
this context, butadiene supplies from biomass become strategic to Versalis,
because in times of C4 stream scarcity it can be freed from naphtha cracking
processes. So the partnership represents a valuable opportunity to boost the
supply of butadiene with the support of its know-how and the industrial system,
and to expand its bio-based portfolio.

“Genomatica’s
process technology for on-purpose butadiene combined with our experience in
downstream applications and our ability to rapidly scale and commercialize the
process can expand our industry’s approach to C4 production, seizing a
promising business opportunity in a market that is experiencing a critical
time,” said Daniele Ferrari, CEO of Versalis. “This partnership, which follows
the establishment of Matrìca, the equal joint venture with Novamont for the
production of monomers, intermediates and polymers from renewable sources,
accelerates the entry of Versalis in that business by strengthening its
leadership in elastomers, in line with the new strategy of focusing on products
with high-added value.”

“Together
we will have a great opportunity to apply Novamont’s concept of third
generation integrated biorefineries to a well-known chemical like butadiene,
applying new biotechnological and chemical processes to local biomass for an
innovative industry at local level, thereby improving environmental, economical
and social sustainability,” said Catia Bastioli, CEO, Novamont. “And the
ability for on-purpose production will make it easier to adjust supply to meet
local market demand while staying close to a low volatility feedstock and
reducing environmental footprint.”

“Versalis
and Novamont are ideal partners to join us in leading the development of
process technology for the production of butadiene from renewable feedstocks,”
said Christophe Schilling, PhD, CEO of Genomatica. “Together we can cover the
entire value chain, and drive from innovation to commercialization, providing a
comprehensive solution. This partnership is further validation of the ability
of Genomatica’s technology platform to address multiple chemical market
opportunities.”

The
agreement between the three parties builds upon a series of recent key events
including the June 2011 formation of Matrìca, a 50:50 joint venture in
bio-based chemicals production between Versalis and Novamont; the announcement
that Versalis plans to heavily invest in innovation and capitalize on
Elastomers, and Genomatica’s successful production of pound quantities of
bio-based butadiene in August 2011.

Source: Genomatica