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METabolic Explorer to Build a PDO Production Plant in Malaysia; Investment Analysis Done by TECHNIP

Published on 2014-01-30. Author : SpecialChem

METabolic EXplorer, a green chemistry company that specializes in the development of bioprocesses for the production of chemical compounds used in a wide range of everyday products (textile fibers, paints, solvents, animal feed supplements, adhesives, etc.) is communicating on the submission of the report by TECHNIP, about the analysis of the investment in Malaysia.

Having reviewed the report received from TECHNIP, METabolic EXplorer is providing an update on its project to build a plant in Malaysia. The company commissioned TECHNIP to conduct an in-depth assessment of the cost of resuming and completing the construction of its PDO production plant in Malaysia. As announced in November 2013, the call for tenders to select a new engineering company resulted in a higher-than-expected budget, making it impossible for METabolic EXplorer to pursue the project under satisfactory conditions.

TECHNIP has now completed its assessment mission. The initial allocation of €38 million estimated by METabolic EXplorer is confirmed, as well as the time required for the construction of the plant within about two years after the resumption of work. Briefly, provided adjustments are made to simplify and rationalize equipment choices and concentrate investment on the core process, the TECHNIP report confirms the PDO project is economically viable, with no impact on its initial quality or expected performance.

Note that the €38 million budget was based, among other things, on increasing annual production capacity for PDO to 8,900 metric tons (the first tranche of plant construction) and coproducing butyric acid, a compound used in particular as a food flavoring.

Based on these positive findings, new contractual terms now need to be established with Bio-XCell in order to resume plant construction on the Bio-XCell site, located in the Iskandar area in Malaysia.

Meanwhile, METabolic EXplorer is continuing to hold discussions with potential partners on effective ways to develop the value of its PDO technology.

About METabolic EXplorer

METabolic EXplorer is a biological chemistry company which was incorporated in 1999. Its goal is to help industrial businesses deal with the projected rise in oil prices, so that they can continue to manufacture but in a sustainable way. Based on the tried and tested principle of industrial fermentation, METabolic EXplorer's solutions replace today’s petrochemical processes with the use of a wide range of plant-based raw materials. By optimizing the metabolic yield of non-pathogenic bacteria in a contained, controlled environment, the company facilitates the production of chemical compounds used in a wide range of everyday goods (textile fibers, paints, solvents, plastics and animal feed).

METabolic EXplorer is currently focusing its alternative processes on the production of five compounds that together have an estimated, annual, end-market value of €11 billion. The company's strategy will be implemented in forms such as own-account developments (i.e., manufacturing plants) in geographically strategic regions and via limited exclusivity industrial partnerships in the shape of joint ventures and licenses.

Source: METabolic EXplorer


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