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April 4, 2006

MSU joins to bring bioeconomy boom to southeast Michigan

ROMULUS, Mich. – Michigan is advancing the new bioeconomy in the heart of the automotive industry, with a company fueled by MSU patents announcing intention of joining with Wayne County to develop a biotechnology park.

Michigan State University, Wayne County and Diversified Natural Products, based in Scottville, have signed a letter of understanding to collectively develop and construct a biotechnology park to produce succinic acid and ethanol.

Succinic acid has enormous global demand for everything from industrial solvents and biodegradable polymers to airport runway de-icers. The international market for succinic acid, which currently derives overwhelmingly from petroleum production, is in the billions of dollars. Fifteen of the company’s patents have sprung from the research of MSU University Distinguished Professor Kris Berglund.

The company’s technology to make succinic acid is notable because it’s “green.” Succinic acid is made from natural sugars, such as Michigan corn. It serves as a starting point for chemicals that can:

  • lower the freezing point of water and thus be used to make safer engine coolants and jet runway de-icers;
  • find uses in biodegradable industrial solvents that pose little threat of air pollution or ozone damage; or
  • make biodegradable polymers for car parts such as dashboards.

Jointly, Wayne County, MSU, and Diversified Natural Products will be working to attract interested investors from automakers to chemical and pharmaceutical companies in order to bring the company’s biorefinery as the foundation for a major industrial biotech park into Wayne County.

"The proposed biorefinery complex in Wayne County will offer improved economics over an ethanol plant by producing a diverse array of fuels and chemicals with a broader set of replacement opportunities for petroleum," said Berglund, chief science officer for Diversified Natural Products.

Wayne County Executive Robert Ficano understands the pressing need for Michigan to diversify the economy into the biotech market. Last month in his state of the county speech, he said: “Wayne County will pursue the first urban Agricultural Renaissance Zone in Michigan. I want to announce that in partnership with Michigan State University, Diversified Natural Products is prepared to build its first U.S. biorefinery right here in Wayne County.”

“Wayne County, and the state of Michigan offer unique opportunities for the creation of the biorefinery model,” said Paul Jacobson, CEO of Diversified Natural Products. “The county executives understand the need to bring the various technological, corporate and government interests together to work toward reducing the use of petroleum.”

Michigan can function as a model for industrial biotechnology, as it is one of the few places that has both the agricultural and industrial base necessary for achieving low-cost alternatives to oil.

Project Phase I would include:

  • Establishment of a biotech park.
  • Development of biorefineries for the purpose of producing bio‑based chemicals and alternate fuels, in addition to ancillary non-petroleum based products.
  • Creation of a research, training and development facility.

"Technologies developed by Michigan State University researchers are playing a key role in promoting the post-petroleum bioeconomy throughout the state," said MSU President Lou Anna K. Simon. 

"In that spirit, MSU is pleased to assist Wayne County in attracting a truly pioneering biorefinery, the first of its kind in the state and the first of many we believe will convert Michigan farm and forest products into the advanced materials Michigan needs for its automotive and other manufacturing sectors," said Simon.

For more information on Diversified Natural Products, see: http://special.newsroom.msu.edu/dnp/index.html and http://www.dnpworld.com/.

For more information on the bioeconomy, see: http://special.newsroom.msu.edu/biobased_economy/index.html.

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Michigan State University has been advancing knowledge and transforming lives through innovative teaching, research and outreach for 150 years. MSU is known internationally as a major public university with global reach and extraordinary impact. Its 15 degree-granting colleges attract scholars worldwide who are interested in combining education with practical problem solving.