Solugen Secures $213 Million Federal Loan for New Biochemical Facility Near ADM Corn Plant
Overview:
- Solugen, a Texas-based chemical manufacturing company, has obtained a substantial loan of $213.6 million from the Department of Energy dedicated to building a new facility in Marshall, Minnesota, that will produce bio-based chemical products. This was announced in a press release on June 13. Read more.
- The state-of-the-art facility will focus on creating organic acids that will serve multiple sectors, including wastewater treatment, construction, agriculture, and energy.
- Production is anticipated to commence in the fall of 2025, with the project projected to generate approximately 100 jobs during construction and 56 permanent manufacturing roles upon completion.
Insights:
The facility, encompassing 500,000 square feet, broke ground in April next to the corn processing complex of food manufacturer Archer Daniels Midland. It will employ ADM-sourced dextrose, a sugar substrate, which offers a more environmentally friendly alternative to petroleum-based feedstock for the production of low-carbon organic acids.
This loan marks the largest investment by the U.S. government in bioindustrial manufacturing since President Biden issued an executive order promoting biomanufacturing in 2022, as noted in a Department of Energy press release.
The facility is equipped with three production lines, enabling a maximum production capacity of 120,000 tons annually.
Furthermore, Solugen received $760,000 in economic incentives from the Minnesota Department of Employment and Economic Development’s Job Creation Fund, as detailed in the April announcement. The facility is designed to cut annual carbon emissions by as much as 18 million kilograms, according to the press release.
This initiative aligns with the White House’s Justice40 Initiative, supporting the Marshall community, which has historically been impacted by lack of investment and pollution challenges.
Founded in 2016, Solugen has now expanded to more than 230 employees and operates two bioforges, or sustainable chemical manufacturing plants.
In 2018, the company took over a brownfield site in Houston where a previous chemical plant explosion occurred, redeveloping it for their operations. The Houston facility began production in 2022, following its commissioning in 2021. Learn more.
Additionally, Solugen collaborates with surfactant manufacturer Sasol Chemicals for the commercialization of their products from the Houston facility.
Maria Sanchez completed her Bachelor’s degree in Plant Sciences from the University of California, Davis, in the USA. Her studies focused on plant genetics and biotechnology, with an emphasis on developing disease-resistant crop varieties. Maria has contributed to several research projects aimed at improving crop resilience to climate change and is now pursuing her Master’s degree in Plant Breeding.