Versalis Invests $20M in Genomatica, Launches JV for Bio-based Butadiene

by Jim Lane (Biofuels Digest) In Italy, Versalis and Genomatica announced the establishment of a technology joint venture for bio-based butadiene from non-food biomass. The resulting process will be licensed across Europe, Asia and Africa by the newly-created joint venture.

Versalis — the chemical subsidiary of Eni — aims at being the first to license the process and build commercial plants. It will also provide over $20 million in funding to Genomatica to support development of the integrated end-to-end process.

Future licensees of the process, including Versalis, will provide the capital required for the construction and operation of their own plants, and be responsible for use and sale of the resulting butadiene. Genomatica brings its expertise in biotechnology, particularly in engineering organisms and fermentation. Versalis brings its long-standing expertise in catalysis and process engineering.

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.

In September 2012, Eni announced a $125 million project to convert its Venice Refinery into a “bio-refinery”, producing renewable diesel using the Ecofining technology developed and patented by Eni.

The Green Refinery process will start with an initial conversion of existing facilities which will be launched in the second quarter of 2013 and completed by the end of this year. Until the start of the changeover, the refinery will continue to produce using to traditional methods. Biofuel production will start from January 1 2014 and will grow progressively as the new facilities enter into operation. The new facilities to be built under the project will be completed in the first half of 2015.

Honeywell’s UOP and Eni SpA jointly developed the UOP/Eni Ecofining process, which uses hydroprocessing technology to convert non-edible natural oils and animal fats to Honeywell Green Diesel. The fuel offers improved performance over biodiesel and petroleum-based diesel, including a high cetane value of 80 compared with a cetane range of 40 to 60 found in diesel at the pump today. Cetane value is the measure of the combustion quality of diesel. Higher cetane values help diesel engines operate more effectively. READ MORE and MORE