Segetis: Biofuels Digest’s 2015 5-Minute Guide

Segetis is a technology-enabled green chemistry company producing versatile chemical building blocks.

Powered by its Javelin Technology, Segetis transforms simple carbohydrates into Levulinic Acid, a chemical building block recognized as a “top 12 value-added chemicals from Biomass” by the US Department of Energy.

The sugar inputs can come from mono-saccharides such as glucose or fructose, poly-saccharides such as corn starch or inulin, simple sugars available today, or cellulosic sugars of tomorrow.

Based on converting levulinic acid, the company targets biobased intermediates and speciality chemicals in plasticizers, household and industrial cleaners, biobased acrylate polymers, agrochemical formulations, polyester and polyurethane intermediates, polycarbonate co-monomers, and nylon intermediates.

The company says that “Levulinic Acid is now a Reality, with a piloted chemical process, validated thermochemical conversion of biomass, flexible feedstocks, multiple sugar sources for

feedstock flexibility, an economical process, and CAPEX estimates ~$1/lb of LA capacity.”

Rankings:

30 Hottest Companies in Renewable Chemicals: #22, 2014/15

40 Hottest Smaller Companies in the Advanced Bioeconomy, #8, 2014/15

Model:

Technology licensor.

The Situation:

Last April, the Iron Range Resources and Rehabilitation Board (IRRRB) approved $21.2 million in funding to renewable biochemical company Segetis, Inc. at today’s board meeting in St. Paul. Segetis plans to construct a commercial-scale plant at the Laskin Energy Park in Hoyt Lakes, Minn. Total project investment is $105 million, 70% of which will be funded by the company. The Segetis project is forecasted to have an annual $55 million economic impact on the region, supporting over 545 jobs, according to an independent study from the University of Minnesota Extension Center for Community Vitality.

Past Milestones:

In May 2014, Segetis received a $325,000 NextGen Energy grants, from a pool of 35 applicants. The grants fall under the Agricultural Growth, Research and Innovation program. The grant will be used for equipment, capital construction and materials for operation of a pilot plant for process development required to commercialize their biobased non-phthalate plasticizer.

In October 2013, Segetis announced the successful start up of their pilot plant facility in Golden Valley, Minnesota demonstrating the viability of its proprietary process to convert biomass to Levulinic Acid.

Segetis has the first fully integrated Levulinic Acid and Derivatives Biorefinery using a variety of carbohydrate feedstocks to meet the global demand for high-performing, safer, non-toxic end use products.”

In 2012, Segetis raised $25.5 million in its Series C financing. Saudi Basic Industries Corporation (SABIC) Ventures B.V. led the investment with full participation by current Segetis investors including Khosla Ventures, Malaysia Life Science Capital Fund (MLSCF), and Royal DSM, through its venturing subsidiary DSM Venturing.

A new Malaysian-based investor, PNB Equity Resource Corporation Sdn Bhd, also joined in this round of financing.

Future Milestones:

Scale-up to first commercial

Website.