Metabolix: the Post-ADM Update
It’s been a very busy summer, but I had a chance to catch up with Rick Eno, the CEO of Metabolix, last week. Metabolix makes a bio-based plastic that it calls Mirel, though chemists call it a polyhydroxyalkanoate polymer (PHA). We last heard from Metabolix in January when its commercial-scale partnership with Archer Daniels Midland dissolved.
The breakup was a significant blow to the company in terms of growing its business and selling Mirel to customers. The partnership with ADM was based around an ADM-financed production plant capable of making 50,000 tons of Mirel per year. Unfortunately, sales ramped up slowly and ADM said the market was too risky.
Since the breakup, Metabolix has decided to launch the biodegradable Mirel bioplastic under its own nameplate, says Eno. It has transferred inventory from ADM, and brought over all the business operations. Still, the company needs a production partner.
“Since Mirel was exclusive to ADM for so long, [after the breakup] we did get inbound calls and we also reached out to potential partners to establish potential manufacturing,” Eno told C&EN. He says that rather than try to sell enough Mirel to keep a huge plant busy, he’s now looking for something closer to a 10,000 ton per year scale.
“We’ve narrowed down a large number of potential opportunities to four. Now we’re looking at engineering detail for integration of our manufacturing technology to the partners’ asset sets,” Eno reports. “We’re deeply evaluating a short list of manufacturing options.” Without ADM to center the business, Metabolix can look outside the U.S. – for example, to be closer to customers. In fact, the firm has opened a sales office in Cologne, Germany to be close to the European market.
As Alex Tullo wrote in his recent cover story on biodegradable plastics, an important market niche is in organic waste handling – specifically in municipalities where organic waste is separated and hauled to composting facilities. Eno suggests this is both a good niche for PHA, and also a great reason to be in Europe where people rigorously sort their trash.
Eno followed up on his January comments that the company would look to higher-value markets that really require biodegradability, rather than try to compete with cheap and plentiful petro-based plastics. He said the company is focusing on agriculture and horticultural markets – for things like biodegradable plastic mulch; the consumer market for compostable bags and similar products for organic waste diversion; a broader packaging market; and a marine and aquatic segment where it is important that plastics biodegrade fully in oceans and streams.
The breakup with ADM somewhat ironically boosted Metabolix’s cash position (for some rather complicated accounting reasons). That will be a big help, because the company is still developing its upcoming portfolio of bio-based C3 and C4 chemicals, using different PHA molecules than Mirel uses as an intermediate. Example target chemicals are gamma butyrolactone and acrylic acid. The C4 program is the farthest along and has reached 60,000 liter fermenters in scale-up. Eno says the chemicals program has netted “significant partner interest.”
Also helping to pay the bills is a government grant backing the company’s efforts to put the bio-based plastic platform into purpose-grown plants. In a recent advance, Metabolix and its research partners have reported a new way to increase polyhydroxybutyrate (PHB) production in sugar cane.
So there you have it – Metabolix is still moving along. The next time we will hear from them, Eno says, it will be because they have a new production partnership to announce. Stay tuned.