Tecnon OrbiChem’s Bio-Materials Issue 11 newsletter is now done and out, and we have some interesting news that came from China. In the meantime, there were also several recent announcements that came out and I will post some of them starting with M&G Chemicals and Anhui Guozhen’s joint venture announcement.
M&G Chemicals actually announced late last year its plans to build a cellulosic bio-MEG facility in China with Guozhen but this recent announcement is a formality of the JV and how much each will spend in the JV.
The companies announced this week that they formed a green refinery JV called, Anhui M&G Guozhen Green Refinery Co. Ltd., which will employ the PROESA Technology licensed by Beta Renewables to convert 970,000-1.3 million tons/year of agricultural residues into cellulosic ethanol, glycols and by-products such as lignin in Fuyang City (Anhui Province, PRC). The biomass will be supplied by Guozhen under a long-term fixed price agreement, and the enzymes needed for the conversion of the biomass will be supplied by Novozymes.
M&G will hold 70% stake in the new company and the rest will be from Guozhen. Total investment in the JV is estimated at $325 million. The companies claim this will be the largest cellulosic biorefinery in the world. The companies expect to soon announce the creation of a second JV that will convert lignin into steam and electricity.
A 45 megawatt cogeneration plant is expected to be built at the site using the lignin, which is a byproduct from the biorefinery.