METEX and financial partner to create JV for the construction and operation of its PDO/BA plant
Type of post: NEWS IN BRIEF.
We already knew that METabolic EXplorer (METEX)
intended to build a facility for producing butyric acid (BA) and
1,3-propanediol (PDO). Preliminary data of the plant and the main
characteristics of BA and PDO markets were summarized in a previous post (METEX
plans to build a PDO/BA production facility, 22/5/2017). At the end of last
month, the French company reported some advances of this interesting project (see
press
release, 29/1/2018). Let us know the most important details.
Location
METEX has confirmed its selection of the Carling Saint-Avold petrochemical platform
in Moselle (Greater East Region). This decision is based on preliminary
studies carried out in the framework of assistance agreements signed in June
2017 with Total Développement Régional and in September 2017 with the Communauté d’Agglomération de
Saint-Avold Synergie. It will be necessary to install two buildings and
utilities at the platform for the construction of this plant.
Figure 1. General view of the Carling
Saint-Avold petrochemical platform which could host the new PDO/BA plant
Joint venture
METEX has signed a
letter of intent with a French financial partner (the name was not disclosed) to create a joint venture for the construction
and operation of the plant. METEX will grant an exclusive license to the
joint venture, along with sub-licensing rights. The licensing agreement also
provides for an additional valuation of the technology when the project moves
into the second stage.
Funding
The total financing required for the project, excluding
buildings, utilities and studies, is estimated at a maximum of 37 M€ (CAPEX: 29
M€; WCR, contingencies and diverse start-up expenses: 8 M€). The financial
partner would provide a maximum of 19.6 M€ in equity capital. For its part,
METEX undertakes to provide a maximum of 17.3 M€ in cash. The final amount of
the investment will depend notably on the contributions from all public and
private stakeholders to the financing of the buildings, utilities and related
studies.
Timeline
Financing documents are under review at the present time and METEX is expecting local, regional, national and European stakeholders to confirm their commitments by the end of June 2018. If the funding for the first stage (estimated at approximately 15 M€) is obtained by the planned date, construction should get underway at the end of the third quarter of 2018.
