Danimer Scientific Announces Successful Expansion of Rinnovo® Demonstration Plant Capacity

Rhea-AI Summary

Danimer Scientific, Inc. (NYSE: DNMR) has completed the expansion of its Rochester, NY demonstration plant to facilitate partnership testing of Rinnovo® polymers, a unique type of PHA with enhanced properties. The plant's capacity has increased 20x, enabling the production of 20 tonnes annually. The expansion includes upgraded equipment for improved process efficiency and data collection.

Insights

Market Research Analyst

The expansion of Danimer Scientific's Rochester demonstration plant is a strategic move aimed at enhancing the company's ability to partner with other entities for testing its Rinnovo® polymers. The increased capacity to produce 20 tonnes annually represents a significant scale-up, which could lead to more rapid commercialization of the Rinnovo® product. This development is particularly important given the growing market demand for sustainable and biodegradable materials. The potential cost advantage of the thermocatalytic process over traditional fermentation could position Danimer favorably in the competitive landscape of bioplastics.

Investors and stakeholders should note the implications of the enhanced production capabilities. If Danimer can secure offtake commitments, it may lead to increased revenue streams and possibly enhance the company's market share in the bioplastics industry. However, the success of this expansion also hinges on the market's acceptance of Rinnovo®'s properties and cost-efficiency compared to existing PHA materials and other bioplastics.

Financial Analyst

The financial implications of Danimer Scientific's expanded plant capacity are multifaceted. The capital expenditure involved in the expansion appears to have been managed efficiently, with the CEO noting completion within budget. This fiscal prudence may reassure investors of the company's cost management capabilities. Looking forward, the claim that the capital cost for future commercial capacity of Rinnovo® will be significantly lower than that of fermentation-based PHA plants could translate into higher margins and profitability if the company can achieve economies of scale.

It is crucial for investors to monitor the subsequent financial performance of Danimer, including the actual cost savings realized from the new process and the impact on the company's balance sheet. The ability to attract offtake agreements will be a key driver of future earnings and should be closely watched as an indicator of the company's growth trajectory.

Sustainability Expert

From a sustainability perspective, Danimer Scientific's focus on the development of biodegradable materials like Rinnovo® is timely and aligns with global efforts to reduce plastic pollution. The successful scale-up of their demonstration plant is a positive step towards creating more environmentally friendly materials at potentially lower costs. This could encourage wider adoption and integration of bioplastics into various industries.

However, the true environmental impact of Rinnovo® will depend on its lifecycle analysis, including the energy consumption of the thermocatalytic process and the biodegradability of the end product. Stakeholders should consider the full environmental cost when evaluating the sustainability claims of the Rinnovo® product platform. Additionally, the company's ability to meet regulatory standards and consumer expectations for 'green' products will be essential for long-term success in the bioplastics market.

Newly completed demonstration plant capacity will accelerate partnership testing

BAINBRIDGE, Ga.--(BUSINESS WIRE)-- Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer” or the “Company”), a leading next generation bioplastics company focused on the development and production of biodegradable materials, today announced it has successfully completed the expansion of its Rochester, NY demonstration plant in order to better serve partners for the testing of Rinnovo® polymers.

Rinnovo® is a type of polyhydroxyalkanoate (“PHA”) synthesized using a thermocatalytic process, which the Company believes can be produced at a lower cost than PHA produced via fermentation processes. The Rinnovo® product platform boasts unique properties relative to currently marketed PHA materials, including enhanced barrier properties, increased elongation and a lower melting temperature. Danimer expects the capital cost to build out future commercial capacity of Rinnovo® will be significantly less than commercial plants using fermentation processes to produce other types of PHAs.

When operated continuously, the expanded demonstration plant can produce 20 tonnes annually, which marks an approximate 20x scale up from the previous production capacity. Key features of the expansion project include a larger carbonylation reactor, installation of three additional fractional distillation towers, a larger polymerization reactor and a polymer drying unit. The demonstration plant also features enhanced controls and data collection that will support additional process condition testing and optimization of the commercial plant design.

Stephen E. Croskrey, Chief Executive Officer of Danimer, said, “We are thrilled to have the Rinnovo® demonstration plant expansion completed, allowing us to accelerate our efforts to gain offtake commitments for this exciting polymer platform. Further, I would like to commend the entire Danimer team in Rochester for their efforts to bring the facility on line safely and within budget.”

For more information on Danimer Scientific, visit www.DanimerScientific.com.

About Danimer Scientific

Danimer is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than a decade, its renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters. Danimer’s technology can be found in a vast array of plastic end products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, films and injection-molded articles, among others. Danimer holds more than 480 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit https://danimerscientific.com.

Forward-Looking Statements

Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding our expectations for full year capital expenditures, Adjusted EBITDA and cash balances. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the overall level of consumer demand on our products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company's customers; the Company's ability to implement its business strategy, including, but not limited to, its ability to expand its production facilities and plants to meet customer demand for its products and the timing thereof; risks relating to the uncertainty of the projected financial information with respect to the Company; the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to our products; the Company’s exposure to product liability or product warranty claims and other loss contingencies; disruptions and other impacts to the Company’s business as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of the Company’s manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact on our business, operations and financial results from the ongoing conflict in Ukraine; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize potential net operating loss carryforwards; and changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222655799/en/

Investors

Blake Chamblee

ir@danimer.com

Media

Richard Ivey

rivey@danimer.com

Source: Danimer Scientific, Inc.

FAQ

What is the ticker symbol for Danimer Scientific, Inc.?

The ticker symbol for Danimer Scientific, Inc. is DNMR.

What type of polymers are being tested at the newly expanded demonstration plant in Rochester, NY?

The newly expanded demonstration plant in Rochester, NY is testing Rinnovo® polymers, a type of polyhydroxyalkanoate (PHA) synthesized using a thermocatalytic process.

What are the key features of the expansion project at the demonstration plant?

Key features of the expansion project include a larger carbonylation reactor, installation of three additional fractional distillation towers, a larger polymerization reactor, and a polymer drying unit.

What is the annual production capacity of the expanded demonstration plant?

The expanded demonstration plant can produce 20 tonnes annually, marking an approximate 20x scale up from the previous production capacity.

Who is the Chief Executive Officer of Danimer Scientific?

The Chief Executive Officer of Danimer Scientific is Stephen E. Croskrey.