Genomatica raises $90 million for synthetic biology materials manufacturing

Courtesy
Genomatica

• San Diego-based Genomatica announced on Wednesday it has
  raised $90 million to apply its approach of using microbes to
  produce biodegradable chemicals to more projects. 
• So far, Genomatica can produce two chemicals used in plastic
  bags and cosmetic products. It has plans to expand into making
  sustainable nylon for the fashion industry. 
• The funding will help the company expand into producing other
  chemicals more sustainablly. 

In the future, the plastic used in your grocery bags, coffee
pods, or clothing might be produced by microbes. 

One company in the space, Genomatica, is using biotechnology to
produce the chemicals needed to make plastic bags. On Wednesday,
Genomatica raised $90 million bringing its total funding raised
to $231.8 million.

Venture firm Casdin Capital led the round, with Viking
Global Investors, and Ginkgo Bioworks, another synthetic biology
company, participating as well. 

The approach Genomatica is using is
called synthetic biology, or the ability to use a cell — like
yeast or E. coli — to produce something beyond its intended
purpose, like excreting a new drug, using yeast to create a new
fragrance, or even producing silk for a tie. In Genomatica’s
case, it could be used to make a chemical that can then be used
in biodegradable plastic bags. 

It’s different from how chemicals are traditionally made. Most of
the materials we use every day are made by a process of turning
crude oil into chemicals that become the building blocks for
materials like polyester, Genomatica CEO Christophe Schilling
told Business Insider. 

“We’re a biotech company using biotech as a way to make widely
used chemicals,” Schilling said. 

So far, the company’s made two chemicals. 

• 1,4-butanediol is the first one. It’s
  used in biodegradable plastic bags. Through a plant in Italy,
  Genomatica and its partner Novamont can currently can make
  30,000 tons.
• The other is butylene glycol, a chemical
  that’s used used in cosmetics and self-care products. 

Gingko Bioworks CEO Jason Kelly told Business Insider that what
got him excited about working with Genomatica — both as an
investor and as a partner — was that the company was producing
sustainable versions of chemicals in large enough volumes to
compete with current production methods. 

“It’s one of the only examples of actually producing a product
that’s disruptive to petrochemicals at scale,” Kelly said. He
also pointed to the interest millennials have in using
sustainable products as a driving force behind the industry, as
seen in the recent swell of support in banning
plastic straws. 

The additional funding will be used to help Genomatica expand
into other chemicals using its microbe-based approach. There are
about 30 intermediate chemicals like butanediol and butylene
glycol, each of which could be made through microbes rather than
oil. The company’s next project: using microbes to make nylon
fabric for fashion brands, feeding into the interest of consumers
in materials made in a sustainable way. 

“Nylon gets to the trends in fashion where the need for
sustainability is becoming more paramount,” Schilling said. 

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