Versalis, owned by Italian energy group Eni, said Monday it has teamed up with US-based Yulex for a biorubber production project in Europe.
The project will cover the entire manufacturing chain from crop science to biorubber extraction to the construction of a biomass power station.
Versalis said the biorubber will be used for various applications, initially focusing on consumer and medical specialty markets, then expanding into the tire industry later on.
"The partnership with Yulex is strategic to Versalis, considering concerns over the forecasted scarcity in the butadiene market and volatility of this chemical, which in turn causes long-term pressure on the price of products like synthetic rubber," said Versalis CEO Daniele Ferrari.
The investment will include an "ambitious research project" to develop technologies targeting the tire industry, Versalis said in a statement, adding an industrial production complex will be built in southern Europe as part of the plan.
The biorubber will be based on guayule, a renewable, non-food crop that requires little water usage, no pesticides and it is an alternative source of natural rubber because of its latex allergy friendly properties.
Yulex, based in Phoenix, Arizona, has developed a portfolio of biomaterials derived from the guayule plant. Its materials are designed to replace traditional tropical or petroleum-based rubber for consumer, industrial and medical markets, with the residual agricultural materials utilized as a feedstock for bioenergy.
