Terrabon

About Terrabon

Terrabon, Inc. was a Houston-based company founded in 1995 to commercialize biofuel technologies developed at Texas A&M University. The company focused on converting non-food biomass, such as municipal solid waste, sorghum, and sewage sludge, into renewable transportation fuels. Its core technology was an acid fermentation process called MixAlco™, which converted organic waste into organic salts, or "bio-crude." This intermediate product was designed to be transported to conventional refineries for conversion into high-octane, drop-in gasoline, diesel, and jet fuel, which avoided the blending and logistical challenges associated with ethanol.

The company's business model revolved around forming strategic partnerships to create an integrated biofuels value chain. This was exemplified by key investments from Valero Energy Corporation, North America's largest refiner, and Waste Management, Inc., the continent's leading waste services provider. Valero's role was to refine the bio-crude into finished fuels, while Waste Management was to supply the organic waste feedstock. Terrabon's strategy involved deploying smaller, localized plants to process waste and produce the bio-crude, which would then be shipped to a centralized processing facility like a Valero refinery. The principal inventor of the MixAlco technology was Mark Holtzapple, who spoke at the dedication of the company's research facility. The company was led by CEO Gary Luce and CFO Malcolm McNeill.

Terrabon achieved several milestones, including the opening of its Advanced Biofuels Research Facility in Bryan, Texas, in 2008. In 2009, it began operating a demonstration plant and successfully produced gasoline from sorghum biomass. The company secured significant equity financing from Valero in April 2009 and a subsequent investment from Waste Management in August 2009. It also received a $9.6 million contract from Logos Technologies in 2011 to design a renewable jet fuel production solution for the Defense Advanced Research Projects Agency (DARPA). However, Terrabon's ambitions were cut short when it failed to secure a necessary round of follow-on financing, reportedly after Waste Management decided not to participate. This funding was critical for the development of a planned commercial-scale facility. Consequently, in September 2012, Terrabon filed for Chapter 7 bankruptcy, ceasing all operations and laying off its approximately 60 employees.