Solugen Secures Conditional Commitment For $213.6M DOE Loan Guarantee, Bolstering U.S. Leadership In Green Manufacturing And Domestic Chemical Production

(MENAFN- PR Newswire) MARSHALL, Minn. and HOUSTON, June 13, 2024 /PRNewswire/ --
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 financing will support the construction of the company's Bioforge Marshall facility in Southwest Minnesota, reinforcing the U.S. as a pioneer in sustainable chemical manufacturing.

This conditional commitment by LPO underscores the national strategy to enhance clean, domestic manufacturing and reduce reliance on foreign resources. Solugen's innovative Bioforge technology platform transforms biomass into high-demand chemicals, previously derived from fossil fuels, reducing carbon emissions and advancing clean, state-of-the-art technologies.

"American manufacturing is at a turning point, and we are proud to have the opportunity to work with the DOE in bringing critical chemical production capabilities onshore to communities like Marshall," said Gaurab Chakrabarti, CEO of Solugen. "By scaling cutting-edge 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 incumbent production methods.

"Scaling our Bioforge platform is not only a technological advancement, but a strategic move to fortify 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 revive American industries and maintain our competitive edge on a global scale."

Bioforge Marshall is scheduled to begin production in fall 2025. The facility will create 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 intent to finance the project, certain technical, legal, environmental, and financial conditions, including negotiation of definitive financing documents, must be satisfied 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.

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