The Department of Energy’s Loan Programs Office announced a conditional $213.6 million loan guarantee Thursday to finance the construction of a facility in southwest Minnesota that will use biomass to manufacture chemicals that previously were derived from fossil fuels.
The conditional commitment to Bioforge Marshall — a subsidiary of Texas-based Solugen — represents the largest single investment by the U.S. government in bioindustrial manufacturing since President Joe Biden signed an executive order in September 2022 to advance innovation in biotechnology and biomanufacturing.
The new facility in Marshall, Minnesota, will manufacture bio-based chemical products for use in concrete, cleaning, agricultural and energy industries.
Solugen will utilize “novel technology” that leverages enzymes and metal catalysts in the production of the organic acids, the LPO said. That process will result in lower carbon emissions and higher yields than existing methods of chemical production, the office added.