Solugen Secures $213.6 Million DOE Loan Guarantee for Carbon-Reducing Bioforge Facility in Minnesota
- Solugen secures a $213.6 million loan guarantee from the U.S. Department of Energy to build the Bioforge Marshall facility in Minnesota.
- The new facility, set to open in 2025, will produce organic acids from locally sourced dextrose, reducing carbon emissions by 18,000 tonnes annually.
Texas-based chemical manufacturer Solugen has received a conditional commitment for a $213.6 million loan guarantee from the US Department of Energy (DOE) Loan Programs Office (LPO). The funding will be used to construct the Bioforge Marshall facility in Marshall, Minnesota, where ground was broken in April.
“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,” he added.
The 46,000 m² facility is scheduled to open in the second half of 2025. It will utilize dextrose from ADM's nearby corn processing complex to produce organic acids, to be used in wastewater treatment, industrial wastewater, construction, home and personal care, agriculture, and energy applications. Solugen asserts that this will cut carbon emissions by 18,000 tonnes annually compared to current production methods.
The facility will have three production lines with a total capacity of 120 kilotons annually. This project is part of the White House’s Justice40 Initiative since Marshall is considered a marginalized community impacted by underinvestment and legacy pollution.
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Started in 2016, Solugen now has over 230 employees and operates two bioforges. In 2018, Solugen acquired and redeveloped a brownfield site in Houston where a chemical plant had exploded. The Houston Bioforge came into operation in 2021 and started its production in 2022. Solugen partners with Sasol Chemicals for the commercialization of this plant.
In April, Solugen received $760,000 in financial incentives from the Minnesota Department of Employment and Economic Development’s Job Creation Fund. The facility is also expected to reduce annual carbon emissions by up to 18 million kilograms.
Edited by Harshajit Sarmah
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