The primary use of MEK is as a solvent in paints and coatings used in wood furniture finishing and automotive refinishing. MEK is also used in the synthetic rubber industry, in the production of paraffin wax and household products such as lacquers, varnishes, and glues. Further uses include the production of magnetic tapes and as an intermediate for a number of pharmaceutical products.
Worldwide, installed capacity for manufacturing is just less than 3 billion pounds per year, and the market is valued in excess of $2 billion. Over half of the production capacity is in Asia, which is also the largest consumer of MEK. The United States is a net importer of MEK, and currently only has one production facility. There are a number of production processes for MEK, all of which utilize feedstocks derived from fossil fuels.
Genomatica targeted MEK for development because it presented a strategic opportunity to use existing ethanol facilities left idle by a recent market contraction. Because of a recent downturn in demand for corn ethanol, many small and mid-sized manufacturing facilities have been forced to cut production or shut down. These facilities are also facing serious concerns regarding the long-term competitive outlook for profitable ethanol production. To make better use of these idle investments, Genomatica developed a sustainable chemical process that would use the same equipment, temperatures and processes. With minimal additional investment and a shorter timeframe to market, existing plants will be able to produce a chemical valued at significantly higher prices than ethanol.
As with Genomatica’s previously announced product, the company will continue to refine and develop the process for MEK to increase the cost advantage and efficiency. Genomatica will offer a licensing model to allow other manufacturers to directly produce MEK.