Companies will work together on portfolio of bio-based chemical products
DECATUR, Ill. and MENLO PARK, Calif., Feb. 11, 2014 – Archer Daniels Midland Company (NYSE: ADM) and Rennovia, Inc. announced today that ADM has committed to a $25 million equity investment in the privately held company, which 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, ADM vice president, Renewable Chemicals. “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.”
“We are committed to continuing to identify novel technologies that provide high yields and low conversion costs,” said Todd Werpy, ADM senior vice president, Research and Development. “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.”
“We are delighted to have the support of ADM as a strategic financial investor to scale-up and commercialize our bio-based chemical process technologies,” said Robert Wedinger, President and CEO 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.”
Founded in 2009, Rennovia targets production of existing high-value chemical products using scalable chemical catalytic process technologies at costs significantly advantaged over current petrochemical processes. The company’s first products are nylon intermediates adipic acid and hexamethylenediamine (HMD). ADM’s investment will be used for research and development programs and continuing operations.
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve vital needs. Today, 31,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa into products for food, animal feed, industrial and energy uses. With more than 270 processing plants, 470 crop procurement facilities, and the world’s premier crop transportation network, ADM helps connect the harvest to the home in more than 140 countries. For more information about ADM and its products, visit www.adm.com.
Rennovia is a chemical process technology development company focused on the creation of novel processes for the cost-advantaged production of commodity and specialty chemicals from renewable feedstocks. For further information, visit www.rennovia.com.