MARSHALL, Minn. and HOUSTON, June 13, 2024 — Solugen has secured a conditional commitment for a $213.6 million loan guarantee from the U.S. Department of Energy (DOE) Loan Programs Office (LPO). This funding will support the construction of the company’s Bioforge Marshall facility in Southwest Minnesota, solidifying the U.S. as a leader in sustainable chemical manufacturing.
This conditional commitment by LPO highlights the national strategy to bolster clean, domestic manufacturing and reduce reliance on foreign resources. Solugen’s innovative Bioforge technology platform converts biomass into high-demand chemicals, traditionally derived from fossil fuels, reducing carbon emissions and promoting clean, cutting-edge technologies.
“American manufacturing is at a pivotal point, and we are proud to collaborate with the DOE in bringing crucial chemical production capabilities to communities like Marshall,” said Gaurab Chakrabarti, CEO of Solugen. “By scaling advanced technologies, we are meeting domestic demand for innovative solutions and setting global standards for sustainable biomanufacturing.”
Solugen’s new 500,000-square-foot Bioforge Marshall facility will produce bio-based chemical products for use in wastewater treatment, industrial wastewater, construction, agriculture, and the energy sector. The facility is designed to reduce annual carbon emissions by up to 18 million kilograms compared to existing production methods.
“Scaling our Bioforge platform is not only a technological advancement but a strategic move to strengthen the domestic supply chain for critical chemicals,” added Sean Hunt, CTO of Solugen. “This project will serve as a model for how innovative technologies can revitalize American industries and maintain our competitive edge globally.”
Bioforge Marshall is slated to begin production in fall 2025. The facility will generate up to 100 jobs during construction and 56 highly skilled full-time manufacturing jobs once fully operational. The project aligns with the White House’s Justice 40 Initiative, underscoring Solugen’s commitment to onshoring manufacturing, fostering local economic development, and reducing environmental impact.
As part of its community outreach in Marshall, Solugen has signed memorandums of understanding with educational and workforce development organizations, including Marshall Public Schools and the Southwest Minnesota Private Industry Council. Additionally, Solugen is engaging in discussions with Minnesota West Community and Technical College and Southwest Minnesota State University to address recruitment and training needs for Bioforge Marshall.
While this conditional commitment represents a significant milestone and demonstrates the DOE’s intention to finance the project, certain technical, legal, environmental, and financial conditions, including negotiation of definitive financing documents, must be met before funding of the loan guarantee.
In collaboration with the DOE, Solugen has demonstrated its commitment to rigorous standards of technical, environmental, and commercial viability. This project aligns with the government’s directives to advance biotechnology and biomanufacturing innovation, reinforcing the U.S. as a leader in the global transition to a sustainable economy.
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SOURCE Solugen Inc.