October, 2012

Myriant Lake Providence, Inc

THE PROJECT

In October 2012, AMCREF Community Capital (AMCREF) provided $15 million of NMTC financing to Myriant Lake Providence, Inc., (Myriant) an industrial biotechnology company and green manufacturer that has developed a proprietary technology platform to produce high-valued biomass-based industrial chemicals that can directly compete with or replace petroleum-derived chemicals. Myriant has developed an innovative renewable chemical, bio-succinic acid production facility in a highly distressed rural census tract in Lake Providence, LA. Myriant is located in a parish (county) with the 4th highest unemployment rate in the nation (20.5% as of June 2012) and therefore is in dire need of additional employment opportunities. Myriant has been commended by federal and local governments for the positive economic impact it is providing to an economically depressed region.

Operational in June 2013, the project uses grain sorghum and/or dextrose to produce up to 30mm lbs per year of bio-succinic acid (Phase I). Succinic acid is traditionally produced from petroleum-based feedstocks and used in a wide variety of applications, including the production of foams, paints, adhesives, spandex, plastics and packing. Bio-succinic acid can directly substitute for the petroleum-based version, thus providing a renewable bio-based industrial chemical building block and reducing U.S. dependence on imported oil while reducing greenhouse gas emissions.

COMMUNITY IMPACT

  • Job Creation and Support: Created 50 FTEs immediately, increasing to 75 FTEs at full plant capacity (170 million lbs); FTE wages average well above the local living wage; provides job training and benefit packages; estimated 250 direct construction jobs and supports 300+ indirect / induced FTEs
  • Environmental Benefits: Producing a lower cost alternative to petroleum-based chemicals, thereby reducing greenhouse emissions and US reliance on oil. Innovative proprietary patented technology can be applied to other chemicals, creating numerous biomass-based renewable chemical alternatives. Process has feedstock flexibility and will eventually utilize waste feedstocks. Production process is net CO2 consuming versus existing succinic acid production which increases CO2 emissions.
  • Community Support and Impacts: Myriant is working with local workforce development programs to hire from within the community. New facility will help establish biotechnology and the biofuels industry in a rural, economically depressed area. Myriant plans to eventually source grain sorghum feedstock from within the region, thereby supporting surrounding farming and trucking sectors.
  • Economic / Catalytic Effects: Strongly supported by federal, state and local economic development agencies. Planned plant expansion at current location and it will be the first of numerous commercial scale facilities planned by Myriant.