Minnesota Governor Tim Walz announced that the state has secured $200 million in funding to finance a new 500,000-square-foot sustainable biomanufacturing facility in Marshall. The facility, owned by climate technology company Solugen, will produce organic acids typically derived from oil, using Minnesota-grown corn, significantly reducing carbon emissions.
The project is backed by a $213.6 million loan from the U.S. Department of Energy’s Loan Programs Office, the largest U.S. government investment in bioindustrial manufacturing since an Executive Order promoting biotechnology and biomanufacturing. An additional $15 million will come from the Minnesota Forward Fund, which aims to invest $400 million in business growth and provide matching funds for companies seeking federal resources.
The facility, known as Bioforge Marshall LLC, will produce organic acids for various industries, including concrete, cleaning, agriculture, and energy. The operations in Marshall are expected to reduce emissions equivalent to powering 3,500 American homes annually and create up to 100 construction jobs and 56 full-time manufacturing jobs. Construction is expected to be completed by 2025.
The funding announcement marks a significant milestone for Minnesota’s efforts to promote sustainable biotechnology and biomanufacturing. The state has secured over $200 million in funding for the project, making it one of the largest investments in bioindustrial manufacturing in the country.
“This investment in sustainable manufacturing is a major win for Minnesota and a big step towards our goal of carbon free electricity by 2040,” Walz said. “Solugen’s expansion will help reduce greenhouse gasses while creating jobs and placing Minnesota at the forefront of biotechnology and biomanufacturing. With this partnership we’re ensuring a greener future and putting Minnesota on the map as a great place to live, work, and raise a family.”
