Home / News / Intrexon forms new venture for natural gas bioconversion

Intrexon forms new venture for natural gas bioconversion

09 Dec '15

2 min read

Intrexon Corporation, a leader in synthetic biology, has announced the formation of Intrexon Energy Partners II (IEP II), a joint venture with a select group of external investors, to produce 1,4-butanediol (BDO), a key chemical intermediate with a global market value exceeding US$5 billion that is used to manufacture spandex, polyurethane, plastics, as well as polyester.

This is Intrexon's second partnership utilising the Company's proprietary gas-to-liquids bioconversion platform to generate high-value products from natural gas, the most inexpensive source of industrially usable carbon for fermentation today.

Robert F. Walsh, senior vice president, head of Intrexon's energy sector and industrial products division said, “As an intermediate used in the manufacture of multiple industrial compounds, plastics, and fibres, the market demand for 1,4-butanediol is significant, despite the costly and energy intensive processes currently used for its production. With the knowledge framework in place to optimise microbial engineering and fermentation, we believe our methanotroph bioconversion approach will reduce energy use, production costs, and waste while producing a single high value product.”

Through Intrexon's advanced suite of technologies, methanotrophs that naturally consume methane have already been engineered to produce isobutanol as well as farnesene. Production of BDO within these microbes follows similar metabolic pathways enabling translation of the Company's unique know-how and proprietary genetic technologies to achieve commercial-scale production of this valuable chemical along an accelerated timeline.

Intrexon's approach may result in significant economic advantages in the production of BDO. The Company's bioengineering of methanotrophs will create BDO through a cost-effective, single-step fermentation process. Additionally through its superior yield potential versus other microbes and utilisation of low-cost natural gas feedstock for fermentation, Intrexon's methanotroph bioconversion platform has the potential to drive industry-leading margins for the fuels and chemicals it produces including BDO, according to a press release.

Randal J. Kirk, chairman and chief executive officer of Intrexon said, “IEP II will synergise with our ongoing isobutanol program within our earlier-formed Intrexon Energy Partners joint venture.”

Through an Exclusive Channel Collaboration (ECC) agreement, Intrexon will receive a technology access fee of US$18 million. IEP II will be responsible for all costs related to the development, manufacture, approval and commercialisation of the product. Intrexon owns a 50 per cent interest in the new venture. (GK)

Fibre2fashion News Desk - India