Global chemical giant BASF has invested $30 million in a Pennsylvania-based company that has developed a process to produce cellulosic sugars for renewable chemicals and biofuels.

BASF, through subsidiary BASF Biorenewable Beteiligungs GmbH & Co. KG led a $50 million financing round in the technology firm Renmatix Inc.

Renmatix has developed the patented Plantrose™ platform whereby industrial sugar can be produced from lignocellulosic biomass (wood, cane trash or straw). In the Plantrose technology, biomass is split into cellulose and sugar in supercritical water at high temperature and pressure in a two-step process.

Industrial sugars are important renewable resources for the chemical industry and can be used, for example, to produce biofuels or basic chemical products and intermediates by fermentative processes. The availability of industrial sugars in sufficient quantities and at favorable cost is therefore important for the competitiveness of the products.