Genomatica Gets Microbes to Make Industrial Chemicals

Microbes have been enlisted to make cheese, alcohol, medicine and fuel. Genomatica is exploiting them to make industrial chemicals.

The San Diego-based company, which for years sold molecular modeling software, has devised a way to feed raw glucose to genetically-enhanced microbes and get a chemical substance out the other end that is a precursor to BDO, an industrial substance used in Spandex, air bags, bumpers, etc.

“Three billion pounds of BDO are sold a year,” said Christopher Gann, CEO of the company.

The biologically produced BDO is chemically identical to regular BDO, but it costs far less to produce and far less energy gets consumed in the manufacturing process, he added. Making regular BDO involves cooking up several different chemical intermediates at high temperatures. Biological BDO requires genetically enhanced microbes (E. coli by the way) and an environment that allows them to grow and breed. The reaction takes place at normal air pressures and requires only slightly higher-than-normal room temperatures.

Even if oil falls to $50 a barrel, he says Genomatica can be competitive with traditional BDO.

Gann added that Genomatica has identified seven other chemicals as potential markets. He wouldn’t tell me what they are, but said if it’s a molecule that has nitrogen, oxygen, carbon, or hydrogen and no metals like sodium, the company might be able to devise a bug to make it.

The company first finds a chemical to replicate biologically, and then concocts a genetic pathway in a microbe to make it.

Industrial microbiology began to gain momentum a few years ago. Historically, microbiologists concentrated on food or pharmaceuticals. Exploiting bugs for other purposes, though, makes a lot of sense. For one thing, you don’t have to worry about FDA testing. The metabolic process is also quite complex, allowing a company to build complex molecules comparatively quickly and with little energy.

There are a whole slew of companies (Mascoma, Amyris) out there trying to harness the power of microbes to make ethanol, synthetic petroleum, butanol, biodiesel or other fuels. At the University of College Dublin, scientists are going to spin out a company in which microbes make biodegradable plastic. Others interesting companies include Cambrios (industrial chemicals) and Microgy (microbes for turning manure into fuel.)

Genomatica is particularly interesting in what it is not doing. First, it doesn’t break down plant matter into sugar with microbes. It just feeds them sugar. That takes a major task off of the company’s plate. Second, it isn’t aiming for fuel. It is looking only at industrial chemicals, which is a broad, and often under served, market.

Third, it is skipping synthetic biology. Some companies are coming up with interesting metabolic pathways and then reproducing that pathway synthetically in the lab. It’s biology without the critters. Amyris specializes in this. While there are advantages to this process, it also adds a layer of complexity. We shall see which method works best as the years go on.

But here’s something to watch out for. Genomatica won’t make and sell chemical intermediates. Instead, it will license the process. Licensing allows a company to avoid building plants and massive sales units. However, large companies are often reluctant to license. In the chip industry, the rule of thumb is that you can’t license your product until you win a huge, multimillion dollar verdict in court. Then everyone will stop copying you. Pharma companies will license, but it’s a bit of an exception.

Gann said that chemical companies with experience in biotech will likely be amenable to licensing.

By the end of next year, Genomatica – which has received money from Draper, FIsher Jurvetson and Mohr Davidow Ventures – hopes to have a prototyping lab and some licensing deals.

Gann will also speak this week at Going Green, a green conference taking place in the Bay Area.