American agricultural firm Archer Daniels Midland (ADM) announced that it has poured $25 million in equity investment into private firm Rennovia. The latter produces chemical products using renewable feedstocks, according to Plast Europe.
Formed in 2009, Rennovia says it produces chemical products that have 20% to 25% lesser cost compared to petrochemical processes. The California-based firm is targeting a commercial production of its bio-based chemical products in 2018, the report stated.
ADM seems to have a better outlook for polyamide (nylons) compared to its previous renewable plastics ventures. In 2006, the agricultural giant invested in Telles bioplastics as a joint venture with bioscience firm Metabolix for the commercialization of PHA-based bioplastics. However, ADM exited the joint venture in 2012, the report detailed.
There are several other polyamide (PA) producers that are shifting to renewables. However, Ascend Performance Materials seems to be the only one not joining the bio-group, the report noted.
Ascend vice president of engineering polymers Scott W. Rook explained: "Bio-based feedstocks are not appropriate for the processes we use."
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