Locus Fermentation Solutions has raised $117 million in debt to develop more biological alternatives to conventional chemicals for companies in the agriculture, energy, mining, industrial and consumer products industries.
Locus uses proprietary biomanufacturing methods to develop biologicals that outperform toxic chemicals in both results and sustainability, a company spokeswoman said in an email.
These biologicals also are designed to remove carbon dioxide emissions from commercial and industrial processes, such as those used to raise cattle and drill for oil, the Solon, Ohio-based company said in a statement.
President Joe Biden made advancing domestic biomanufacturing and filling a void in biological production a national priority in a recent executive order. The aim is to create "innovative solutions in health, climate change, energy, food security, agriculture, supply chain resilience, and national and economic security," Biden said in his order.
"The immediate need for solutions that reduce the global carbon footprint has never been more urgent; but production limitations, high costs and inconsistent performance have hindered implementation of biological alternatives," said Andrew "Andy" Lefkowitz, chairman and CEO of Locus Fermentation Solutions, in his company's statement.
Locus has become an international leader in sustainable biobased products, leading to investments from and agreements with strategic partners, including Dow and Anew Climate, Lefkowitz said.
Locus Fermentation's recent capital raise was done through insurance companies that secured their debt investments with some of the company's intellectual property (IP) and library of more than 1,300 biomanufacturing technology patent filings, the Solon company said.
Insurers Markel, Liberty Specialty Markets, CNA, Aspen and Fidelis participated in a collateral insurance policy based on the company's IP, which was valued by professional services firm Aon, Locus said.
Locus Fermentation has raised $250 million in funding since its 2013 founding and is in the process of raising another $150 million in equity, its spokeswoman said.
Locus, which has five operating companies, operates 11 offices in five states, including Ohio, and employs more than 160 people.
The company was cofounded by Lefkowitz and Sean Farmer — the same entrepreneurs who started Ganeden Biotech Inc. in Mayfield Heights, Ohio, in the late 1990s.
Now owned by Ireland-based Kerry Group, Ganeden developed a patented strain of probiotic bacteria, called GanedenBC30, under Lefkowitz's leadership. The probiotic is used in dietary supplements, foods and beverages.
