LANXESS invests in U.S. biofuel & biochemical company

USD 10 million investment in Gevo

28-May-2010 - USA

LANXESS has invested in U.S. biofuel & biochemical company Gevo, Inc. as part of a proposed cooperation to produce isobutene from renewable resources. The companies aim to find an alternative route to source isobutene - a key raw material needed in the manufacturing of butyl rubber.

Isobutene is conventionally produced in steam crackers, which use petroleum derivatives as a feedstock. Alternatively, Gevo is developing a fermentation process to produce the organic compound isobutanol from the fermentable sugars in biomass, starting with corn. Isobutanol is a fundamental building block for making biodiesel, bio jet fuel as well as plastics, rubber and fibers.

Gevo and LANXESS intend to use their technical know-how to produce isobutene by dehydrating isobutanol. Researchers from LANXESS’ innovation department and the Butyl Rubber business unit are working together to optimize the dehydration process, which has proven successful in the laboratory.

“This investment and the proposed cooperation broaden our future supply options against the background of volatile raw material prices and consolidation within the petrochemical industry,” said Axel C. Heitmann, Chairman of the LANXESS Board of Management. “This investment also underpins our commitment to ‘Green Chemistry’, which is becoming more important to all stakeholders.”

LANXESS has invested USD 10 million in the Denver, Colorado-based company. In exchange, it has received a minority shareholding in Gevo and a seat on the Director’s Board, which will be filled by Ron Commander, head of the company’s Butyl Rubber Business Unit.

https://www.chemeurope.com/en/news/118202/lanxess-invests-in-u-s-biofuel-biochemical-company.html