LINCOLN, Neb. (DTN) -- Archer Daniels Midland (ADM) announced Monday it will be producing plant-based specialty chemicals at the company's corn-processing plant in Marshall, Minnesota, as a result of a new partnership.
The specialty chemicals company, Houston, Texas-based, Solugen, is set to begin construction on a 500,000-square-foot biomanufacturing addition in early 2024.
According to a news release, Solugen plans to start production during the first half of 2025, creating at least 40 permanent jobs and another 100 construction jobs during the commissioning of the plant.
Solugen plans to produce several plant-based specialty chemicals and biobased building block molecules at the new plant in Minnesota.
According to ADM, the facility will use ADM-provided dextrose to scale its current line of lower-carbon organic acids and develop new molecules to replace existing fossil fuel-based materials.
In addition, the companies also plan to collaborate on biomaterials commercialization for a range of applications including energy, water treatment, agriculture, construction materials, cleaning, personal care and more, according to the news release.
Solugen's Bioforge technology converts plant-derived substances into essential materials that have traditionally been made from fossil fuels.
ADM has been investing more in sustainability products in recent years.
"Sustainability is one of the enduring global trends powering ADM's growth and underpinning the strategic evolution of our carbohydrate solutions business," said Chris Cuddy, president of ADM's carbohydrate solutions business.
"ADM is one of the largest dextrose producers in the world and this strategic partnership will allow us to further diversify our product stream as we continue to support plant-based solutions spanning sustainable packaging, pharma, plant health, construction, fermentation, and home and personal care."
The companies said in a news release that a "robust and cost-competitive supply of corn," alongside advanced corn-to-dextrose conversion technology at the Marshall plant, makes it an "ideal location" to support the scale of Solugen's products.
The city boasts a "vibrant community, a pool of skilled workforce and a proactive approach" from local and regional governments, all "eager" to welcome innovative, high-tech industries, according to the news release.
Marshall Mayor Bob Byrnes said the project would provide a needed economic boost to the community.
"This industry-leading facility will serve as a powerful economic driver for the city, creating new jobs and diversifying our industry," he said in a news release.
"We are thankful for ADM's longstanding commitment and impact to Marshall, which has paved the way for this remarkable partnership and continues to further economic growth to our region."
Solugen co-founder and CEO Gaurab Chakrabarti said his company's technology and climate goals are a good fit for what ADM wants to accomplish at the Marshall plant.
"The strategic partnership with ADM will allow Solugen to bring our chemi-enzymatic process to a commercial scale and meet existing customer demand for our high-performance, cost-competitive, sustainable products," he said in a news release.
"As one of the few scaled-up and de-risked biomanufacturing assets in the country, Solugen's Bioforge platform is helping bolster domestic capabilities and supply chains that are critical in ensuring the U.S. reaches its ambitious climate targets."
Solugen's Chief Technology Officer Sean Hunt said building the facility alongside ADM in Minnesota will help his company continue to develop its technology.
"The initial phase of the project will significantly increase Solugen's manufacturing capacity, which is critical for commercializing our existing line of molecules and kicks off plans for a multi-phase large-scale U.S. Bioforge buildout," he said in a news release.
"The increase in capacity will also free up our Houston operation for research and development efforts into additional molecules and market applications."
Todd Neeley can be reached at todd.neeley@dtn.com
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