Mitsubishi Chemical Corp. signs MOU with Genomatica

By Genomatica | April 28, 2011

Genomatica and Mitsubishi Chemical Corp., the 8th‐largest chemical maker in the world, signed a broad memorandum of understanding (MOU) outlining multiple potential areas of collaboration. These include:

a) Study of a joint venture for Bio-BDO production in Asia: Mitsubishi and Genomatica will explore forming a joint venture to build the first commercial plant in Asia for Bio‐BDO. This plant would use Genomatica’s direct, one‐step technology and leverage Mitsubishi’s leadership in BDO applications and sales, as well as their manufacturing expertise.

b) Development of additional green intermediate and basic chemicals: Mitsubishi and Genomatica will discuss collaborating to develop several major chemicals, which are strategic to both companies.

c) An equity investment in Genomatica: Mitsubishi made an equity investment in Genomatica as part of Genomatica’s recently‐announced $45 million Series C‐1 funding.

Mitsubishi will join Genomatica in a plenary presentation at the BIO World Congress conference on May 11, titled Strategic Partnerships for More Robust Value Chains.

“We respect and share Genomatica’s vision of the importance of sustainability for the chemical industry, and we recognize their achievements with C4 chemicals, which are strategic to us,” said Hiroaki Ishizuka, representative director of Mitsubishi Chemical. “Asia is the fastest‐growing chemicals market in the world and we see great potential to deliver biobased chemicals to this market as a growing complement to our current conventionally‐sourced chemicals. We believe that a strategic partnership with Genomatica will provide market‐leading economics and quality which will benefit both parties.”

“We’re gratified and honored to be chosen as a strategic partner by Mitsubishi”, said Christophe Schilling, CEO of Genomatica. “Our interests and core values are fully aligned, as we work to create long‐term value. This marks another step forward in being the preferred partner to the chemical industry—giving them the flexibility to use renewable inputs to make the same great products, while delivering superior profitability compared to petrochemical processes and a smaller environmental footprint.”

Genomatica and Mitsubishi Chemical Corporation will negotiate in good faith the terms of definitive agreements for the collaborations described in the MOU.