Solugen doesn’t just cut costs…it helps fight climate change while transforming an industry that’s worth trillions of dollars globally.

Solugen is a company that’s reshaping the way chemicals are made, and it’s hard not to get excited about what they’re building. Based in Houston, Texas, this biotech firm is tackling one of the biggest challenges of our time: creating essential chemicals without relying on petroleum. Instead, they use enzymes—nature’s catalysts—and custom bioreactors to produce the same chemicals in a way that’s cheaper, safer, and even carbon-negative. 

Founded in 2016, Solugen has built an incredible team of biochemists and industry veterans to bring their vision to life. They’ve already developed two key products—hydrogen peroxide and glucaric acid—using their first enzyme. What’s remarkable is how quickly they’re scaling up, creating new enzymes to unlock an even broader range of chemical products. And they’re not stopping there. Solugen’s innovative manufacturing approach could disrupt the entire chemical industry by lowering costs and enabling localized production, cutting out the need for massive factories and complex supply chains.

Traditional chemical plants are expensive to build, costing upwards of $100 million for a small facility, and they rely on shipping chemicals—sometimes mostly water—thousands of miles around the world. Solugen flips this model on its head. Their modular plants cost just $10 million to set up and can be built close to customers, slashing transportation costs and eliminating unnecessary waste. This isn’t just better for the environment; it’s also a smart business move, improving margins and making their products highly competitive.

What makes Solugen’s technology so special is the combination of biology and engineering. They use plant sugars, air, and enzymes as raw materials, which are safer and more sustainable than petrochemical inputs. Their bioreactors are a critical piece of the puzzle, designed to optimize chemical production in ways that traditional methods can’t. With a focus on precision and efficiency, Solugen’s system delivers 10 times the productivity of standard fermentation processes, a leap forward made possible by thoughtful design and cutting-edge computational modeling.

Their innovation doesn’t just stop with the tech. Solugen’s business model is just as forward-thinking. By producing chemicals on-site or at smaller facilities distributed closer to customers, they can eliminate many of the hidden costs baked into the traditional system—like shipping diluted hydrogen peroxide across oceans. It’s a win for their customers, who get high-quality products faster and cheaper, and a win for the planet, as this decentralized approach drastically reduces emissions.

The market opportunity here is enormous. Solugen is already addressing a $25 billion market with its current products, but the potential stretches far beyond that into the trillions. With their ability to scale efficiently, deliver cost savings, and meet growing demand for sustainable solutions, Solugen is poised to redefine an industry. This is a company that’s showing us what’s possible when you pair bold ideas with brilliant execution, and it’s why we’re so excited to back them.

Since our initial investment, Solugen has made significant strides in its mission. In April 2024, the company broke ground on its 500,000-square-foot Bioforge facility in Marshall, Minnesota. Developed in partnership with ADM, this plant will produce up to 120 kilotonnes annually of low-carbon organic acids for industries such as water treatment, agriculture, energy, and personal care. Additionally, in June 2024, Solugen secured a conditional commitment for a $200 million plus loan guarantee from the U.S. Department of Energy's Loan Programs Office to support the construction of the Bioforge Marshall facility, reinforcing the U.S. as a leader in sustainable chemical manufacturing.