Lallemand Biofuels & Distilled Spirits (LBDS) and Braskem announced a joint bio-acetone production platform for the U.S. corn-ethanol industry, enabling producers to generate a high-value renewable coproduct alongside ethanol. The partnership combines LBDS’s proprietary yeast strain with Braskem’s bolt-on separation technology to create a new revenue stream for biorefineries without compromising ethanol production performance. Braskem assumes responsibility for all bio-acetone sales and market development, providing producers with guaranteed demand for the output.

The collaboration follows five years of joint development and validation. LBDS engineered an innovative yeast strain that facilitates bio-acetone production during fermentation, while Braskem developed the recovery process to separate the acetone from ethanol. Bio-acetone serves as a drop-in replacement for fossil-based acetone, offering a 100% renewable, benzene-free, and phenol-free alternative verifiable through a C14 test. It is applicable in cosmetics, paints, coatings, acrylics, adhesives, and personal care products.

"Pairing Lallemand Biofuels & Distilled Spirits’ expertise in yeast and fermentation with Braskem’s knowledge of biochemicals and biopolymers is a natural fit," said Craig Ammann, Vice President of Business Development for LBDS. He noted that the partnership offers ethanol producers a unique method to boost bottom lines and shield against market volatility through strategic alliances.

Cirilo Vieira, Business Development Director – Renewables & Biochemicals at Braskem, emphasized the complementary nature of the teams' expertise. "The team at LBDS brought their expertise in yeast and their extensive knowledge of the ethanol industry, complemented by our experience in chemicals and bioproducts, to make this collaboration a success," Vieira stated. He described the launch as a significant step for the petrochemical industry toward a sustainable future.

Market Context

The global acetone market demonstrates consistent demand, exceeding 8 million tons per year. Various segments within this market are actively seeking renewable solutions, positioning bio-acetone as a viable alternative to traditional fossil-based sources. The platform allows existing ethanol facilities to access this mature market without significant infrastructure overhaul, leveraging Braskem’s established distribution and market development capabilities.

What the Numbers Show

The partnership addresses a specific gap in the renewable chemicals sector by integrating coproduction directly into existing ethanol workflows. With global acetone demand fixed at over 8 million tons per year, the introduction of a verified renewable supply chain via bolt-on technology suggests a scalable model for biorefineries looking to diversify revenue streams beyond fuel ethanol. The absence of performance impact on primary ethanol production removes a key operational risk typically associated with process modifications.

JP Morgan analyst Milene Carvalho has downgraded Braskem from Overweight to Neutral. The rating adjustment impacts the company's shares listed on the New York Stock Exchange under the ticker BAK.

Rating Details

The revision in the stock rating reflects a change in the analyst's perspective on the chemical company's performance outlook. Braskem is now classified with a Neutral rating, indicating a balanced risk-reward profile compared to its previous Overweight status.