ADM to invest $25 million in novel technology company
Search for similar articles by keyword: [ADM
DECATUR, ILL. — Archer Daniels Midland Co. has committed to a $25 million equity investment in Menlo Park, Calif.-based Rennovia, Inc., a privately held company that develops catalysts and processes for the cost-advantaged production of chemical products from renewable feedstocks.
“This investment is part of ADM’s ongoing efforts to enhance returns by strengthening our portfolio of higher-margin products,” said Kevin Moore, vice-president of renewable chemicals at ADM. “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.”
Todd Werpy, senior vice-president of research and development at ADM, added the company is committed to continuing to identify novel technologies that provide “high yields and low conversion costs.”
“We believe that the new technologies being developed by Rennovia, coupled with ADM’s strength in manufacturing, will help us to deliver competitive products that complement our growing portfolio,” Mr. Werpy said.
Rennovia said it’s glad to have the support of ADM as a strategic financial investor. The investment will allow Rennovia to “scale-up and commercialize our bio-based chemical process technologies,” said Robert Wedinger, president and chief executive officer of Rennovia.
“ADM’s position as a leading producer of refined carbohydrates, combined with their focus on bio-based chemicals production, make them an ideal investor for Rennovia,” Mr. Wedinger said.
Founded in 2009, Rennovia targets production of existing chemical products using scalable chemical catalytic process technologies at costs advantaged over current petrochemical processes. The company’s first products are nylon intermediates adipic acid and hexamethylenediamine. ADM’s investment will be used for research and development programs and continuing operations.