Evonik has closed on an equity investment in Biosynthetic Technologies, LLC, a specialist in biobased lubricants headquartered in Irvine California. BT has developed and manufactures a new class of bio-based synthetic oils called estolides that are used primarily in the passenger car motor oil and industrial lubricant sectors. Field trials have shown that the technical characteristics of the biobased synthetic oils made by BT are exceptionally good, and include the ability to combat soot buildup in engines, which helps keep fuel consumption low. In addition to Evonik, BP Ventures also participated as a second strategic investor in this current funding round that focuses on growth. BP Ventures as well as Monsanto Company have already invested in previous financing rounds.
"Biosynthetic Technologies leads the way to high-quality sustainable lubricants," says Dr. Bernhard Mohr, head of Evonik Venture Capital. "In view of the large automotive market and the strong trend towards fuel-economy and sustainability, this is a growing market with a strong fit to Evonik´s oil additives business."
"We are excited to have Evonik join us as a strategic investor," says Allen Barbieri, CEO of Biosynthetic Technologies. "In addition to its capital investment, Evonik brings world class manufacturing, R&D and sales & marketing expertise that will expedite our commercialization process."
Biosynthetic Technologies new class of bio-based synthetic oils are made from organic fatty acids found in plant oils and have numerous uses in the lubricant, chemical, and cosmetics industries. They are biodegradable, nontoxic and they do not bio-accumulate in marine life. BT holds a broad patent portfolio to protect these novel biosynthetic oils that are marketed under the trade name LubriGreen® Biosynthetic Oils.
According to BT, its lubricants are now being tested and certified by many of the worlds largest lubricant manufacturers who want to use these as components in their existing or new motor oil and industrial lubricant product lines.
Within its venture capital activities Evonik plans to invest a total of 100 million in highly promising start-ups with break-through technologies and leading specialist venture capital funds. These investments will focus on Europe, the U.S. and Asia. Partnering with innovative start-up companies supplements Evoniks approach of open innovation and creates excellent opportunities for accelerating the development of new businesses and opening up future growth fields.
Evonik, based in Germany, is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around 12.7 billion and an operating profit (adjusted EBITDA) of about 2.0 billion.
Biosynthetic Technologies was formed in 2004 and received an exclusive license to a patent portfolio issued to the U.S. Department of Agriculture which covers the production of estolides from plant oils. Since that time the company has built a demonstration manufacturing plant and extended their patent portfolio. The company is headquartered in Irvine, CA, the demonstration plant is at an Albemarle site in Baton Rouge, Louisiana.
