Genomatica, which uses bacteria to manufacture chemicals from plants, announced Thursday that it is acquiring assets from the REG Life Sciences division of Renewable Energy Group, a biodiesel production company. Those assets, which include intellectual property as well as a research program with ExxonMobil, will be used to expand the San Diego-based company’s product platform into more areas, such as household and industrial cleaning products.
Genomatica aims to replace the old and often costly process of manufacturing chemicals from petroleum-based sources through chemical reactions with a bio-based solution, in which genetically engineered E. coli bacteria are able to take plant material and turn it into useful chemical compounds. Those compounds are in turn used by Genomatica's customers to manufacture products such as athletic apparel, shoes, cosmetics and more.
According to Schilling, the company is largely interested in the REG assets because its intellectual property would allow Genomatica to create organic chemical compounds with longer carbon chains. These longer polymers are often used in applications related to home and personal care such as shampoos, detergents, soaps and more.
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