OREANDA-NEWS. August 1, 2012. Versalis, Eni's chemicals subsidiary leader in the production of elastomers, together with Genomatica (a leading developer of process technology for renewable chemicals), and Novamont (a leader in biodegradable plastics and pioneer in third generation integrated biorefineries) signed a Memorandum of Understanding (MOU) to establish a strategic partnership to enable production of butadiene from renewable feedstocks.

Butadiene is a raw material used in the production of rubber for tires, electrical appliances, footwear, plastics, asphalt modifiers, additives for lubricating oil, pipes, building components, and latex.

The partnership, on the basis of which a joint venture will be established, will develop a comprehensive ‘end-to-end' process for production of polymer-grade butadiene from biomass.  Versalis will hold a majority interest in the joint venture holding company and aims to be the first to build commercial plants using the process technology upon project success.

This unique and important agreement brings together the core competencies of all three companies. The partnership will leverage Genomatica's proprietary technologies and intellectual property for producing butadiene, Versalis' extensive expertise in catalysis process development and process engineering scale-up and market applications of butadiene derivatives, as well as Novamont's experience in renewable feedstocks.

Under this agreement, Versalis will use  Genomatica's process technology for economically competitive and sustainable production of an important supply-constrained chemical. The process technology aspect of the agreement is intended to be made available for future licensing in Europe, Africa and Asia.

Butadiene is a key intermediate for Versalis elastomers business.  The raw material required to produce it, extracted from ‘C4's (a mixture of molecules containing four carbon atoms) and produced by cracking plants, is increasingly subject to availability problems.

Decreasing supplies and a lack of dedicated butadiene production facilities have resulted in significant long-term pressure on the price and volatility of the chemical, which in turn increases the price of butadiene-based products, including tires.

Concerns of scarcity in the butadiene market are compounded by growth forecasts within the BRIC countries where demand for automotive products made from butadiene, such as tires, is expected to increase.

In this context, butadiene supplies from biomass become strategic to Versalis, because in times of C4 stream scarcity it can be freed from naphtha cracking processes. So the partnership represents a valuable opportunity to boost the supply of butadiene with the support of its know-how and the industrial system, and to expand its bio-based portfolio.