Solugen has announced a conditional commitment for a $213.6 million loan guarantee from the U.S. Department of Energy’s Loan Programs Office (LPO). This significant financing will support the development of the Bioforge Marshall facility in Southwest Minnesota, further cementing the United States' leadership in sustainable chemical manufacturing. The LPO's commitment highlights the national strategy to bolster clean, domestic production and decrease reliance on foreign resources. Solugen’s innovative Bioforge technology platform converts biomass into essential chemicals, traditionally derived from fossil fuels, thus reducing carbon emissions and advancing state-of-the-art clean technologies.

“American manufacturing is at a turning point, and we are proud to have the opportunity to work with the DOE in bringing critical chemical production capabilities onshore to communities like Marshall,” said Gaurab Chakrabarti, CEO of Solugen. “By scaling cutting-edge technologies, we are meeting domestic demand for innovative solutions and setting global standards for sustainable biomanufacturing.”

The new 500,000-square-foot Bioforge Marshall facility will produce bio-based chemicals for sectors including wastewater treatment, industrial wastewater, construction, agriculture, and energy. The facility aims to cut annual carbon emissions by up to 18 million kilograms compared to traditional production methods.

“Scaling our Bioforge platform is not only a technological advancement but a strategic move to fortify the domestic supply chain for critical chemicals,” added Sean Hunt, CTO of Solugen. “This project will serve as a model for how innovative technologies can revive American industries and maintain our competitive edge on a global scale.”

Set to begin production in fall 2025, the Bioforge Marshall facility is anticipated to generate up to 100 construction jobs and 56 highly skilled full-time manufacturing positions once it is operational. The project supports the White House’s Justice40 Initiative, underscoring Solugen’s commitment to onshoring manufacturing, promoting local economic development, and minimizing environmental impact.

In its effort to engage with the Marshall community, Solugen has signed memorandums of understanding with local educational and workforce development organizations, including Marshall Public Schools and the Southwest Minnesota Private Industry Council. The company is also in discussions with Minnesota West Community and Technical College and Southwest Minnesota State University to address recruitment and training needs for the Bioforge Marshall facility.

While this conditional commitment represents a major milestone and shows the DOE’s intent to finance the project, certain technical, legal, environmental, and financial conditions must be satisfied before the loan guarantee is finalized. This includes negotiating definitive financing documents.

By collaborating with the DOE, Solugen has shown its dedication to upholding rigorous standards of technical, environmental, and commercial viability. The project aligns with government initiatives to advance biotechnology and biomanufacturing innovation, reinforcing the U.S. position as a leader in the global shift towards a sustainable economy.

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