InterviewNew firm touts performance over green

25 March 2008 22:55  [Source: ICIS news]

By Brian Ford

HOUSTON (ICIS news)--Newly launched specialty chemical company Elevance uses renewable feedstock that may be seen as environmentally friendly, but its chief executive said on Tuesday its products are not green at the expense of performance.

“We’re not asking consumers to give up on performance; we’re not making a green play,” said CEO K’Lynne Johnson.

Johnson said the company offers specialty chemicals producers cost-effective alternatives to non-renewable natural gas and crude oil feedstock.

The launch of Elevance Renewable Sciences was announced earlier on Tuesday. The company makes specialty chemicals from renewable natural oils derived from corn, soy, canola and other plants.

The company said it uses olefin metathesis technology that was developed by agricultural oil producer Cargill and Materia, a technology company that was spun off from the California Institute of Technology. The technology was developed by Robert Grubbs, one of three scientists who received the Nobel Prize in Chemistry in 2005.

Unlike some so-called “green” ventures, Elevance makes use of a proven technology that can efficiently convert natural oil feedstock in to an array of products such as waxes, coatings, inks, personal-care products and cosmetics, Johnson said.  

The company is looking to eventually use the technology to make anti-microbial products, lubricants and additives. The company already sells Naturewax, a candle wax product that was previously sold by Cargill.

Cargill decided to help create the company when it “became clear that the path that had the most value was the specialty chemical path,” Johnson said.

While Cargill, an agriculture company, can provide the feedstock, it is not a specialty chemicals producer and opted to help form a separate company with specialty chemicals expertise, she said.

“We are the only company that bridges petrochemicals and renewables using a proven technology,” said Johnson, who formerly was the senior vice president of Innovene’s global derivatives operating company.

She said she envisions petrochemical companies of the future as being hybrids that can use both traditional feedstock and renewables as a way to lessen the squeeze between rising costs and low margins.

The company plans to contract its production to other companies in order to reduce capital risks and get products to the market more quickly, she said.

It will also take advantage of partnerships with hopes of generating $1bn (€650m) in sales by 2016.

“We are currently engaged in discussions with partners across several markets and are very optimistic that we will finalise several relationships, said Andy Shafer, company executive vice president of sales and market development.

Based in Lisle, Illinois, Elevance received a $40m investment from private equity firm TPG Growth. Cargill and Materia will remain partners in the company.

($1 = €0.65)

For more on green chemicals check out Doris de Guzman’s Green Chemicals Blog

By: Brian Ford
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