Ashland and Cargill Create Joint Biobased Chemical Venture

The venture's first product will be renewable propylene glycol.

Published on: May 8, 2007
Ashland Inc. and Cargill have agreed in principle to create a new joint venture devoted solely to the development and production of biobased chemicals. The parties intend for the new stand-alone entity to become global supplier of chemicals from renewable sources.

The venture's first product will be propylene glycol. The venture will produce high-grade propylene glycol from glycerin, a co-product of biodiesel production.

The companies will have a 50-50 ownership structure over the venture.

"We believe the chemical market has reached a tipping point where biobased and petroleum-based options are both desired by the market and practical to produce," says Ashland Inc. vice president Walter Solomon.
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