Genomatica develops novel bioplastic

San Diego-based Genomatica said today it has developed a microorganism that could replace the need for petroleum in the process to make some plastics.

Genomatica’s scientists genetically engineered E.Coli bacteria to consumer sugar and produce 1,4 butanediol, or BDO, which is used in plastics, solvents, pharmaceuticals, automotive components and textiles. The global market for BDO is about 3 billion pounds, or $4 billion, a year.

CEO Christopher Gann told the Cleantech Group that by the end of 2009, Genomatica expects to build and begin operating a pilot plant, increase yields for commercial-scale manufacturing, and develop a commercial license for its first product.

Gann said scientists are still tweaking yields and concentrations of the microorganism but expect to be cost-competitive with hydrocarbon-based BDO within a year, even if oil drops to $50 a barrel. Gann declined to share details of the current concentration or yields.

Gann said Genomatica’s process produces no by-products and requires much less energy than traditional BDO production. If fact, he said the process requires 32,000 British thermal units per pound.

Genomatica decided to license the process instead of selling the production itself because the company has eight other chemicals in its development pipeline, Gann said. Six are based on E. Coli, while the rest use other microorganisms.

Gann said Genomatica genetically engineered E. Coli based on a pathway its scientists developed on a computer. They chose E.Coli because it’s one of the best-understood microorganisms, which made the process easier, he said.

Sugar was chosen as the feedstock because it’s readily available throughout the world and relatively cheap. When prices increase, so does production, which would keep the process affordable, Gann said. However, scientists could tweak the process to use another feedstock in about 3-to-6 months if needed, he added.

Gann said the company hopes to build the pilot plant near its headquarters. The plant would require two or three 30-liter fermenters and a couple large rooms, and it would cost $5 million to $15 million, depending on the level of automation and whether it can be multi-purposed to test other chemicals in the company’s pipeline.

Genomatica has raised $24 million from Mohr Davidow Ventures, Draper Fisher Jurvetson and Alloy Ventures. Gann said the company will likely raise another round for the pilot plant and for speeding development of its other chemicals. 

Gann joined Genomatica in March from Dow Chemical (NYSE: DOW). Genomatica was founded in 2000 by biotech researchers from the University of California at San Diego.

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