LANXESS Increases Application of Biological Materials
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Isobutylene is a key raw material for the production of butyl rubber and is usually based on various petrochemical materials. Gevo is developing a fermentation process that produces organic compounds isobutanol from fermentable sugar biomass in cereals. At the same time, LANXESS is also developing a dehydration process that converts isobutanol to isobutylene. LANXESS's dehydration process has been successful in the experiment and has been successfully trial-produced for several months in the small-scale reactor in Leverkusen, Germany. Tests have shown that the bio-butyl rubber produced by this process can meet the stringent requirements of the tire industry.
In addition to the equity transaction, the two companies also signed an agreement, LANXESS will have a certain exclusive right to purchase Gevo bio-isobutanol, and Gevo will also receive the exclusive right to provide a certain amount of bio-based isobutanol to LANXESS. The agreement lasts 10 years. This arrangement has yet to take effect after the final offtake agreement between the two parties is reached. At present, the agreement is still in negotiation.
Dr. He Deman, Chairman of LANXESS's Management Board, said: “This choice broadens our supply channels and allows us to focus more on 'green chemistry' and sustainable production. Their importance will become more apparent in the coming years.†Understand that LANXESS invested $10 million in May 2010 and became a shareholder of Gevo, a private limited company.
Gevo CEO Patrick Gruber said: “The new 10-year agreement further confirms the value of technology and investment in the production of isobutylene from renewable resources.†Isobutanol produced by Gevo can be directly used as a special chemical for gasoline Mix raw materials, aviation fuel feed, or convert to plastics, fibers, rubber, and other polymers. Gevo is currently renovating its 22 million-gallon ethanol production facility in Minnesota. It plans to produce 18 million gallons of isobutanol in the first half of 2012. In addition, Gevo plans to expand its production capacity through mergers and acquisitions and joint ventures in the next few years, and its annual production will exceed 350 million gallons by 2015.
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