Saudi Aramco acquires Novomer’s Converge Polyols businesses

14-Nov-16

Novomer has announced the successful completion of the sale if its Converge polyols businesses to Saudi Aramco’s subsidiaries Aramco Services Company and Saudi Aramco Technologies. Included in the transaction, valued at up to US$100 Million, are Novomer’s extensive CO₂ polyol patent portfolio, along with certain equipment and product inventory.
COEth^TM Overview:

Novomer combines carbon monoxide with ethylene oxide to create beta-propiolactone.
This intermediate can be converted to wide used chemicals like acrylic acid, acrylate esters, succinic anhydride and 1,4-butanediol.
Applications for these chemicals include high performance plastics, and textiles with a market potential in excess of $20 billion.
The process can also produce polypropiolactone, a biodegradable polymer that has the potential to replace many packaging materials.
Novomer’s process has been demonstrated to have a 20-50% lower cost and is more environmentally friendly than today’s technologies used to make the same chemicals.

Jim Mahoney, Novomer President, said: “The entire Novomer team is truly excited by this acquisition. Soon after we commercialized the Converge polyol technology we entered into a strategic relationship with Saudi Aramco and for the past two and one-half years have worked together to expand the commercial potential of this exciting technology. This acquisition is the culmination of that significant team effort. I commend Aramco on its strategic vision and commitment to innovation.” Mahoney also added: “Novomer will use the proceeds from this acquisition to fully commercialize its COEth^TM (EO/CO) process to make low cost, sustainable C-3 and C-4 products, including glacial acrylic acid, butanediol, polypropiolactone and succinic acid.”