September 2021
Company Spotlight
Viridis Chemical
For this Company Spotlight, we interviewed Viridis’ CEO (Carl Rush) and CFO (Randy Whitaker) about how the company is creating the first commercial-scale renewable ethyl acetate production facility in North America. Viridis is a manufacturer of renewable chemicals with a focus on the safe, environmentally sound, and economically viable conversion of bioethanol into useful products previously derived from oil or natural gas For more information on Viridis, please visit www.viridischemical.com.
Background: After over a decade of working together at Waste Management and Emerging Infrastructure Capital Partners, Carl Rush and Randy Whitaker co-founded Viridis Chemical in 2020 after identifying an opportunity to purchase Prairie Catalytic, a facility purposed for producing renewable ethyl acetate (ETAC) whose previous owner could not raise the capital required to complete construction. Given Carl and Randy’s prior experience at GNI Group (an environmental service and chemical company) and Yellow Rose Distillery (Houston’s first legal whiskey distillery), they had strong working knowledge of not only how ethanol is purified into various final products but also ethanol regulatory requirements. This, combined with a strong working relationship with Koch Process Solutions, enabled Carl and Randy to realize that with some modifications to the production process, the Prairie Catalytic plant could become the first economically-feasible renewable ETAC plant in North America and only the third in the world.
In February 2021, Viridis received an equity capital commitment from EIV Capital, which has enabled it to recently complete Phase I of the modifications to the Prairie Catalytic plant. Phase I upgraded the facility to allow the production of 40 million gallons per year of USP ethanol. Phase II, which is expected to be completed in early 2023, will further expand the plant to begin production of ~50,000 metric tons per year of renewable ETAC. Viridis’ exclusive marketing partner, HELM, has already received significant interest for its renewable ETAC, the majority of which is expected to be sold into the U.S. and European markets.
Product Offering: After completion of Phase II, Viridis will be producing three products from its sustainable, bio-based ethanol feedstock, all of which are expected to be produced with costs at or below hydrocarbon-based processes (i.e. no “green” premium required to bolster economics):
USP Ethanol: U.S. pharmacopeia (USP) ethanol is an ultra-high purity grade of ethanol, which is produced by distilling and dehydrating lesser grades of ethanol (fuel or industrial grade) to remove contaminants. In addition to being an intermediary in Viridis’ ETAC production process, USP ethanol is a feedstock for personal cleansing products, such as hand sanitizer and soap. USP ethanol provides further optionality as a bio-based feedstock at the plant to produce additional high-value chemicals in the future.
ETAC: Conventional ETAC production relies on hydrocarbon feedstocks and follows two primary technologies: acetic acid / ethanol and acetic acid / ethylene. Through its proprietary catalyst-driven process, Viridis is able to produce ETAC utilizing only corn-based ethanol as a feedstock. Because acetic acid is made from natural gas or coal-based methanol, Viridis’ renewable ETAC appeals to various end markets that are experience strong consumer pushes for more sustainable products, such as personal care / cosmetic, ink / coatings, and paints.
Green Hydrogen: The plant also generates significant renewable hydrogen as a co-product of its ETAC production process. Currently, this hydrogen is used to heat part of its production process, but once Phase II is completed, there will be an excess produced (approximately one Bcf per year). Viridis management is currently evaluating commercial opportunities for this surplus, as it is one of the lowest cost producers of green hydrogen.
Closing Thoughts: While currently focused on completing its ETAC production plant, Viridis also owns a portfolio of IP for several other renewable specialty chemicals (e.g. butyl acetate, n-butanol, etc.). We look forward to following Viridis’ growth, as it continues to expand its renewable chemical portfolio to other bioethanol-based chemicals as well as others in its goal of becoming a premier biochemical platform.