Bank and government backing has given Biosynthetic the confidence as it heads for a commercial manufacturing facility.
Biolubes get backing Image: Commons |
The California-based company has had its Phase One application for a loan guarantee progressed to Phase Two, meaning the US Department of Agriculture (USDA) will underwrite 80% of the finance required by Biosynthetic Technologies to build a major production site.
The remainder of the money, more than $100m in total, will come from an as yet un-named major US bank and is a significant boost not only to the bio-lubes producer, but to the bio industry in general.
Under the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program - also known as the “9003 Program”, the USDA is implementing the US government's commitment to renewable chemical and biobased product manufacturing.
Biosynthetic uses a catalytic process to convert plant-derived fatty acids into bio-oils - high-performance additives used in producing motor and industrial lubricants amongst other applications. Biosynthetic already has SAE 5W-20 and 5W-30 formulae certified by the API.
The new plant is set to be built within an existing chemical complex, with an output of around 20 million gallons of bio base oil. Representing only a tiny fraction of the total global lubes market, Biosynthetic views the opportunity as creating huge potential for future expansion.