DoD Makes Award to Danimer Scientific via the Distributed Bioindustrial Manufacturing Program

Rhea-AI Summary

Danimer Scientific (NYSE: DNMR) has been awarded $1.36 million by the U.S. Department of Defense through the Distributed Bioindustrial Manufacturing Program (DBIMP). The funding is for developing plans to produce biobased polyols for high-performance coatings used on ships, marine vessels, and steel piping. These coatings are said to have superior properties compared to petroleum-based alternatives.

Upon completing the current project, Danimer may be eligible for a follow-on award of up to $100 million to construct a U.S.-based manufacturing facility. This initiative is part of the White House's Executive Order 14081, which aims to strengthen America's bioeconomy and enhance the Department of Defense's capabilities. The funding is provided under the Defense Industrial Base Consortium (DIBC) Other Transaction Agreement (OTA).

Positive

• Awarded $1.36 million from the U.S. Department of Defense
• Potential for follow-on award of up to $100 million for manufacturing facility
• Development of innovative biobased polyols for high-performance coatings

Negative

• None.

Insights

Financial Analyst

The $1.36 million award from the U.S. Department of Defense to Danimer Scientific is a positive development, albeit with immediate financial impact given the company's $46 million market cap. However, the potential for a follow-on award of up to $100 million for building a manufacturing facility is significantly more impactful.

This award aligns with the government's push towards sustainable and secure bioeconomy, potentially positioning Danimer as a key player in this emerging sector. The development of biobased polyols for high-performance coatings could open new revenue streams in the defense and marine industries.

Investors should note that while this initial funding is modest, it provides Danimer with a foothold in a potentially lucrative government-backed initiative. The company's ability to successfully execute this project could lead to substantial future contracts and enhance its competitive position in the biomaterials market.

Materials Science Expert

Danimer's focus on developing biobased polyols for high-performance coatings is technologically significant. These materials have the potential to outperform petroleum-based alternatives, which is important for applications in harsh marine environments.

The superior properties mentioned could include enhanced corrosion resistance, durability and environmental friendliness. If successful, this technology could disrupt the current market for protective coatings in marine and industrial applications.

The involvement of the Department of Defense suggests that these materials may have strategic importance, possibly relating to improved longevity of naval assets or reduced maintenance requirements. This government backing could accelerate the adoption of Danimer's technology in both military and civilian sectors.

From a scientific perspective, this project represents an important step in transitioning from petroleum-based to bio-based materials in critical applications, aligning with broader sustainability goals while potentially enhancing performance.

Innovative biobased polyols for use in high performance coatings for ships, marine vessels, and steel piping.

BAINBRIDGE, Ga.--(BUSINESS WIRE)-- Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer”), a leading, next-generation biotechnology company focused on the production of biomaterials, announces an award from the U.S. Department of Defense via the Distributed Bioindustrial Manufacturing Program (DBIMP).

Danimer Scientific has been awarded $1.36 million to develop plans for a facility to produce biobased polyols that can be converted into high-performance coatings for ships, marine vessels, and steel piping. These biobased coatings have superior properties to petroleum-based incumbents. Upon completion of its work under the current award, Danimer may become eligible to receive a follow-on award that could provide access to up to $100 million to build a U.S.-based manufacturing facility.

The award is conferred as part of the White House's Executive Order 14081, "Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy," aimed at bolstering America's bioeconomic strengths while helping the Department of Defense achieve advanced defense capabilities. Through these awards, companies receive funding to produce business and technical plans that detail construction of domestic bioindustrial manufacturing production facilities under the Defense Industrial Base Consortium (DIBC) Other Transaction Agreement (OTA), a contract vehicle awarded and overseen by the Office of the Assistant Secretary of Defense for Industrial Base Policy.

“We are excited to receive this funding to continue developing our innovative polyol biotechnology, and proud to support the efforts of the Department of Defense through the DBIMP and Executive Order 14081,” Stated Danimer Chief Science and Technology Officer Phil Van Trump.

About Danimer Scientific

Danimer is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than two decades, 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 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

About the Department of Defense Distributed Bioindustrial Manufacturing Program (DBIMP)

Following a competitive evaluation of proposed solutions, the Department entered negotiations with more than 30 selectees for business and technical planning efforts across focus areas for defense materials: fabrication, firepower, fitness, food, and fuel. Upon completion of planning efforts, businesses are eligible to enter negotiations to proceed to the next phase of the DBIMP under the DIBC, wherein the DoD will support building bioproduction infrastructure that increases the domestic supply of critical materials. DBIMP awards are conferred as part of the White House's Executive Order 14081, "Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy," aimed at bolstering America's bioeconomic strengths while helping the Department achieve advanced defense capabilities.

For more information, visit https://www.defense.gov/

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 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 carry forwards; 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/20240924598133/en/

Investors and Media

Blake Chamblee

Phone: 770-337-6570

ir@danimer.com

Source: Danimer Scientific

FAQ

What is the amount of the award Danimer Scientific (DNMR) received from the Department of Defense?

Danimer Scientific (DNMR) received an award of $1.36 million from the U.S. Department of Defense through the Distributed Bioindustrial Manufacturing Program (DBIMP).

What is the purpose of the award given to Danimer Scientific (DNMR)?

The award is for developing plans to produce biobased polyols that can be converted into high-performance coatings for ships, marine vessels, and steel piping.

What potential follow-on award could Danimer Scientific (DNMR) receive after completing the current project?

Upon completion of its work under the current award, Danimer Scientific (DNMR) may become eligible to receive a follow-on award of up to $100 million to build a U.S.-based manufacturing facility.

What executive order is this award related to for Danimer Scientific (DNMR)?

The award is part of the White House's Executive Order 14081, 'Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy.'