Houston-based sustainable chemical manufacturing secures $213.6 million to support new facility

Houston-based Solugen has secured funding from the U.S. Department of Energy’s Office of Loan Programs to support its mission of producing clean chemicals.

LPO’s $213.6 million loan guarantee will be used to build the company’s 500,000-square-foot Bioforge Marshall plant in southwest Minnesota, which broke ground in April and will produce bio-based chemicals intended for use in wastewater treatment, construction, agriculture, and the energy sector. According to Solugen, the facility is expected to reduce annual carbon emissions by up to 18 million kilograms.

“The U.S. manufacturing industry is at a turning point and we are proud to have the opportunity to work with DOE to bring critical chemical production capabilities to communities like Marshall,” said Gaurab Chakrabarti, CEO of Solugen, in a press release. “By developing cutting-edge technologies, we are meeting national demand for innovative solutions and setting global standards for sustainable biomanufacturing.”

The new facility, initially announced last year, is expected to come online in fall 2025 and will create up to 100 temporary construction jobs as well as 56 full-time manufacturing jobs once it is ready. The installation will be operational.

“Today’s announcement reflects President Biden’s commitment to building a thriving bioeconomy that benefits all Americans and ensures that the United States leads the world in emerging biomass industries,” writes the DOE in its press release.

Bioforge Marshall is a scaled-up version of the company’s first project, Bioforge Houston, which has been operational since 2021 and will continue to serve as Solugen’s research, development and innovation center.

“Scaling our Bioforge platform is not only a technological advancement, but also a strategic move to strengthen the national supply chain of critical chemicals,” adds Sean Hunt, CTO of Solugen. “This project will serve as a model for how innovative technologies can revive American industries and maintain our competitive advantage globally.”

Solugen will need to meet certain DOE standards to move forward with funding. Additionally, the company has created partnerships with regional education and workforce development organizations for training and recruiting.

Founded in 2016, the Houston company has raised more than $600 million through Crunchbase and landed unicorn status with a valuation of $1 billion in 2021. Last month, Solugen ranked 36th on the CNBC’s annual Disruptor 50 list, and in 2023, Chakrabarti and Hunt were named winners of the EY Entrepreneur of the Year awards.