Danimer Scientific to Acquire Biodegradable Polymer Developer Novomer

Danimer Scientific plans to acquire Novomer, Inc. within third quarter, which is expected to both allow the company to further diversify its portfolio of Nodax PHA bioplastics and to lower its costs. Headquarted with a pilot plant in Rochester, N.Y., Novomer is a developer of conversion technology that provides low net carbon inputs for producing PHA-based resins and other biodegradable materials. One of the materials they developed is poly(3-hydroxypropionate)--p(3HP), a type of PHA, all of which can be sourced from renewable or non-renewable feedstocks.

Novomer leverages its proprietary Novo22 catalyst and intelligent process design to develop products in its pilot plant that can be produced at low costs. The company also has an extensive intellectual property portfolio with more than 100 issued patents and over 140 patents pending. .Danimer believes that Novomer’s p(3HP) is highly complementary with Danimer’s inputs, and can be incorporated as a component in certain Danimer resins. Danimer’s Nodax PHA and Novomer’s p(3HP) have different properties and attributes: Nodax has strong performance and biodegradability properties, making it possible to be used across diverse end-use applications, while p(3HP) has improved barrier properties and is a lower cost non-fermented input.

By incorporating Novomer’s p(3HP) into Danimer’s customer solutions, Danimer expects to have greater flexibility to meet an even broader range of customer needs, and also expects to be able to produce its resins at a substantially lower cost. Additionally, by blending these inputs, Danimer will reduce the amount of fermentation required in the production of its resins. Given these significant benefits, Danimer expects to modify its previously announced greenfield construction plans for its new facility in Bainbridge, Georgia to include fewer fermenters and expand Novomer’s production capacity. This transaction and the resulting modifications are expected to meaningfully reduce Danimer’s planned capital expenditures on a per-pound basis while increasing the anticipated overall volume of finished product it will be able to deliver when also taking into account the completion of its Kentucky Phase II expansion.

Said Danimer’s chief science & technology officer Phillip Van Trump, “Novomer has proven its technology in pilot applications and we have validated the biodegradability of Novomer’s biopolymers through rigorous assessment and third-party testing. We believe that by incorporating Novomer’s technology in our processes, we can further enhance production to meet our customers’ commercial needs with a broader suite of biodegradable solutions. In addition to using Novomer’s p(3HP) as an input in, and in conjunction with, the production of Nodax based resins, this technology can also be used to produce acrylic acid from renewable and other sources for use across superabsorbent polymer (“SAP”) products like diapers and feminine hygiene products. Also, the addition of Novomer’s world-class scientists, engineers and technicians to the Danimer team, as well as its broad portfolio of patents, presents meaningful opportunities to develop new applications and drive continued innovation and growth in the years ahead.”

Novomer’s CEO Jeff Uhrig, will report to Danimer CEO Stephen E. Croskrey and will continue to lead the Novomer team in coordination with Danimer’s senior leadership.