Solugen secures $213.6 million loan guarantee for Bioforge facility in Minnesota

Solugen announced a conditional commitment to a $213.6 million loan guarantee from the U.S. Department of Energy’s Loan Program Office (LPO). This significant financing will support the development of the Bioforge Marshall facility in southwestern Minnesota, further strengthening U.S. leadership in sustainable chemical manufacturing. LPO’s involvement underscores a national strategy to strengthen clean, domestic production and reduce dependence on foreign resources. Solugen’s innovative Bioforge technology platform converts biomass into essential chemicals traditionally derived from fossil fuels, thereby reducing carbon emissions and advancing cutting-edge clean technologies.

“American manufacturing is at an inflection point and we are proud to have the opportunity to partner with DOE to bring critical onshore chemical manufacturing capabilities to communities like Marshall,” said Gaurab Chakrabarti, CEO of Solugen. “By scaling cutting-edge technologies, we are meeting the national demand for innovative solutions and setting global standards in sustainable bioproduction.”

Bioforge Marshall’s new 500,000-square-foot facility will produce biochemicals for sectors including wastewater treatment, industrial wastewater, construction, agriculture and energy. The facility’s goal is to reduce annual carbon dioxide emissions by up to 18 million kilograms compared to traditional production methods.

“Scaling our Bioforge platform is not just a technological advancement, but a strategic move to strengthen the domestic supply chain for key chemicals,” added Sean Hunt, chief technology officer at Solugen. “This project will serve as a model for how innovative technologies can revitalize American industry and maintain our competitive advantage on a global scale.”

The Bioforge Marshall facility, expected to begin production in fall 2025, is expected to support up to 100 construction jobs and 56 highly skilled full-time manufacturing positions once operational. The project supports the White House’s Justice40 initiative, highlighting Solugen’s commitment to relocating production to other countries, promoting local economic development and minimizing environmental impact.

In an effort to connect with the Marshall community, Solugen has signed memorandums of understanding with local education and workforce development organizations, including Marshall Public Schools and the Southwest Minnesota Private Industry Council. The company is also in talks with Minnesota West Community and Technical College and Southwest Minnesota State University to meet recruiting and training needs at the Bioforge Marshall facility.

While this conditional commitment represents a milestone and indicates DOE’s intention to finance the project, certain technical, legal, environmental and financial conditions must be met before the loan guarantee can be finalized. This includes negotiating the final financial documents.

By working with the DOE, Solugen has demonstrated its commitment to rigorous standards of technical, environmental and commercial viability. The project is part of government initiatives to advance innovation in biotechnology and biomanufacturing, strengthening the United States’ position as a leader in the global transition to a sustainable economy.

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