MOUNTAIN VIEW, Calif., Oct. 30, 2012 /PRNewswire/ -- Cobalt Technologies ("Cobalt"), a leading developer of next generation bio-based chemicals, today announced that Bunge Global Innovation LLC, a wholly-owned subsidiary of global agribusiness and food company Bunge Limited (NYSE: BG) ("Bunge"), has joined its Series E Preferred Stock round as a strategic investor.
The investment follows Cobalt's agreement with Bunge and specialty chemicals company Rhodia Poliamida e Especialidades Ltda. ("Rhodia") to operate a pilot plant demonstrating the production of n-butanol utilizing sugarcane bagasse as feedstock at the Laboratorio Nacional de Ciencia e Tecnologia do Bioetanol facility in Campinas, Brazil. The terms of the agreement also provide for the parties to work together on co-location of a demonstration scale facility and to consider co-location of a commercial-scale biorefinery at a Bunge sugarcane mill. N-butanol is a widely used industrial chemical found in paints, lacquers and other surface coatings.
"We are pleased to have forged this strategic partnership with Bunge, one of the largest sugar producers in Brazil," said Bob Mayer, CEO, Cobalt Technologies. "Bunge's investment and supply of raw material for feedstock will allow us to begin demonstrating the value of our biobutanol technology and help unlock its potential."
"Cobalt's promising technology presents the opportunity to leverage Bunge's sugarcane processing assets to produce new high-value products that diversify our revenue streams and enhance returns," said Ben Pearcy, Managing Director, Sugar & Bioenergy and Chief Development Officer, Bunge Limited.All institutional investors from previous rounds participated in the Series E Preferred Stock round, including Pinnacle Ventures, Malaysian Life Sciences Capital Fund, VantagePoint Capital Partners, The Whittemore Collection, Ltd., Life Sciences Partners (LSP), @Ventures and Harris and Harris. Cobalt was advised by Pacific Crest Securities.