Metabolix (Cambridge, Massachusetts / USA; www.metabolix.com) and South Korean bioscience company CJ CheilJedang (CJ; http://english.cj.net) have signed an agreement to develop renewable C4 chemicals via fermentation. The agreement includes advancing the production technology and assessing investment options for the C4 chemicals, which are used in applications including engineering plastics, fibres and personal care products. Metabolix and CJ said in a joint statement that the initial market entry is expected to be through gamma butyrolactone (GBL), with subsequent growth into butanediol (BDO), tetrahydrofuran (THF) and polyester engineering resins (PBT). They estimate the C4 chemical market currently stands at USD 3 bn (EUR 2.07 bn), and said it is growing at 4% per year.

Under the agreement, CJ will contribute fermentation assets and expertise to produce pilot quantities of dried whole fermentation broth containing raw C4 chemicals. Metabolix will continue the development of microbial strains and the scale-up of its “FAST” recovery process to produce high-purity C4 chemicals. "CJ's global fermentation asset base and product expansion plans fit very well with the market needs for C4 chemicals,” stated Rick Eno, president and CEO of Metabolix. “Together, we hope to meet the strong market demand for this important family of materials.”

CJ BIO, a division of CJ CheilJedang, operates world-scale fermentation facilities in China, Indonesia and Brazil. These sites, and others, will be analysed as potential locations for the C4 chemicals production, the companies said.

Metabolix said separately, in its H1 financial report, that the agreement with CJ is non-exclusive, and each party will be responsible for its own costs during the joint development phase. The company also noted that its technology will be ready for commercial plant design by the end of this year. Metabolix, which produces polyhydroxyalkanoate (PHA)-based resins through its Telles joint venture with Archer Daniels Midlands (Decatur, Illinois / USA; www.adm.com), reported a USD 19.6m net loss for the first half of 2011, compared with a USD 19.3m loss for the same period last year. Revenues rose 79% to USD 517,000. The company said it is in early stage discussions with potential partners for its C3 technology platform, which leverages the C4 chemical work and equipment.