Verdezyne

About Verdezyne

Verdezyne, founded in 2005 by G. Wesley Hatfield, Richard H. Lathrop, and Robert J. Molinari, was an industrial biotechnology firm positioned to produce renewable chemicals from non-food sources. The company's core business centered on leveraging proprietary yeast strains and fermentation processes to create cost-effective, bio-based alternatives to petrochemicals. Verdezyne's technology was feedstock-flexible, designed to metabolize various plant-based oils and their by-products, mitigating vulnerability to price and supply fluctuations associated with sugar or petroleum feedstocks.

The company's product portfolio was aimed at large, established markets. A key offering was BIOLON™ DDDA (dodecanedioic acid), a bio-based chemical intermediate used in the manufacturing of engineering polymers, automotive parts, cosmetics, and fragrances. Another commercial product, FerroShield™, was a dibasic acid mixture developed as a nitrate-free corrosion inhibitor for applications like metalworking fluids and engine coolants. Verdezyne's strategy involved forming partnerships with major chemical producers and consumers to ensure market penetration. For instance, it secured a significant off-take agreement with European distributor Will & Co for over 25% of the expected capacity of its planned Malaysian production facility for BIOLON™ DDDA.

Throughout its operation, Verdezyne raised substantial capital, totaling over $80 million from investors including Sime Darby, BP Alternative Energy Ventures, OVP Venture Partners, and Monitor Ventures. A pivotal moment was a $48 million investment led by Malaysian conglomerate Sime Darby, intended to finance technology development and a commercial-scale plant in Malaysia in partnership with Bio-XCell. This facility, dubbed "VerdePalm," was set to make Verdezyne the first commercial producer of bio-based dodecanedioic acid. However, despite the plant being near completion, the primary investor, Sime Darby, withdrew its funding. This abrupt loss of financial backing forced Verdezyne to cease operations and file for bankruptcy in 2018, leading to the liquidation of its assets.