Verdezyne Claims Milestone in Renewable Replacement of Petrochemical

When Verdezyne said last year it had made adipic acid in the laboratory, the Carlsbad, CA, industrial biotech said its eco-friendly fermentation process could make the valuable chemical for 20 percent less than it would cost a conventional petrochemical plant.

Today, Verdezyne says it is now operating a pilot plant in Carlsbad that can make adipic acid at an estimated cost savings of 30 to 35 percent. Using genetically engineered yeast and raw material from palm oil and other renewable sources, the facility is making “multiple kilogram” batches of adipic acid in production runs that take roughly 100 hours, according to Verdezyne CEO E. William Radany.

“We’ve done some significant metabolic engineering to come up with [yeast strains] that give us a significant cost advantage” in making petroleum-based chemicals, Radany said.

In a statement issued by the company today, Radany says Verdezyne’s pilot plant represents a key milestone in the development of a sustainable replacement for adipic acid, an important petrochemical product. “This is the first demonstration of the production of bio-based adipic acid at scale from a non-petroleum source,” he says.


Verdezyne Fermentation Tank


After raising an undisclosed amount of capital in May, Radany says Verdezyne built the pilot plant to optimize the processes needed to move to large-scale commercial production of adipic acid, a so-called “intermediate chemical” needed to make nylon 6,6. As I’ve reported previously, Verdezyne has taken a circuitous route to reach this stage. The company, which now has 46 employees, currently has enough cash for its operations, but will need to raise another round in 2012, Radany said. Verdezyne’s current investors include BP Alternative Energy Ventures, DSM Venturing B.V., OVP Venture Partners, and Monitor Ventures.

Verdezyne says its “green” adipic acid is identical to the petroleum-based polymer, and can be used to manufacture the nylon used to make clothing, carpets and other textiles, as well as polyurethane resins and engineered plastics. The company estimates the global market for adipic acid at more than $6 billion a year.

“The main goal of the pilot plant is to continue to validate your economics and your processes,” Radany told me recently. He described the facility as a fully integrated operation that will be used to optimize a variety of processes, including the ideal mix of ingredients and production cycle, as well as the filtration and separation of adipic acid from the fermentation broth.

Verdezyne says its proprietary yeast constitutes about 10 percent of the broth in a fermentation tank. The yeast consumes inexpensive “fatty acid distillates” and produces nearly 100-percent pure adipic acid, Radany said. He described the raw material as “non-food vegetable oils” that are typically sold at a low cost to soap manufacturers. The company says its production methods also generate less carbon dioxide and other pollutants compared with conventional petroleum-based production.

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.