Vnesheconombank, Bright Capital, and Renmatix Consider Implementation of an Investment Project in Biochemical and Biofuels Industries
(MSN Money/PR NewsWire) During the first Moscow International Forum for Innovative Development Open Innovations, the State Corporation ‘Bank for Development and Foreign Economic Affairs’ (Vnesheconombank), venture capital firm Bright Capital Management, and Renmatix, the leading manufacturer of biobased sugar intermediates, signed a Memorandum of Understanding to jointly consider mutually beneficial relationships, potential collaboration and investment in the biochemical and biofuels industries.
“Russia’s rich endowment of natural resources offers abundant opportunities for our technology. This MOU marks a step towards increasing the footprint of the Plantrose process,” saidDuncan Cross, Renmatix Director and head of the company’s Russian initiatives. “Renmatix’s water-based conversion technology quickly and efficiently deconstructs woody biomass -in ample supply throughout Russia- into the affordable building blocks for bioethanol, and other sustainable chemicals and fuels.”
Under the MOU, the companies are working together to pursue the development of a series of industrial plants that will produce cellulosic sugar from woody biomass, with near-term end markets serving cellulosic ethanol demand in Europe, by leveraging Renmatix’s proprietary Plantrose™ technology. The total amount of potential investment is up to approximately 750 million USD.
Renmatix and Bright Capital will collaborate to bring financial and strategic partners together for market development. The parties will manage primary aspects of future licensing for Plantrose technology into the Russian Federation, and engagement of key Russian and international industrial partners – such as wood processors – to participate in successful development of such facilities and facilitate equity financing. In order to further develop the relationships established by the MOU, the parties have agreed to establish a task team with representatives from each organization.
Valery Krivenko, Managing Partner of Bright Capital, noted the potential impact of the agreement “could make Russia to utilize the presence of the world’s largest reserves of cellulosic biomass, and leverage a sound geographic location in relation to the main consumers of biofuels and biochemicals by means of creating efficient export industries.” READ MORE