green polypropylene

Houston companies partner on sustainable plastics alternative

Lummus and Citroniq say their first plant, set for completion in 2027, will produce 400,000 metric tons of green polypropylene each year. Photo via lummustechnology.com

Two Houston companies, Lummus Technology and Citroniq Chemicals, have paired up to build North American plants that produce green polypropylene.

Polypropylene is a thermoplastic used to manufacture items such as plastic packaging, plastic parts, medical supplies, textiles, and fibers. Green polypropylene is made from biomass.

Lummus and Citroniq say their first plant, set for completion in 2027, will produce 400,000 metric tons of green polypropylene each year. The plant will be at an undisclosed location in the Midwest.

In April, Lummus and Citroniq signed a letter of intent to develop Citroniq green polypropylene projects in North America using Lummus’ Verdenesuite of polypropylene technology. Their newly announced licensing and engineering agreements apply to the first of four planned facilities.

“This agreement demonstrates the progress we continue to make with Citroniq in establishing the first world-scale sustainable bio-polypropylene production process in North America,” Romain Lemoine, chief business officer for polymers and petrochemicals at Lummus, says in a news release.

“Combining Lummus’ leadership in polypropylene licensing with Citroniq’s carbon-negative production capabilities will help us meet the growing demand for bio-polypropylene and accelerate the decarbonization of the downstream energy industry,” Lemoine adds.

Citroniq says it’s investing more than $5 billion to expand its E2O process. The process produces carbon-negative plastics and hydrogen-and-carbon compounds called olefins from fully sustainable feedstocks. This eliminates the use of convention fossil-fuel hydrocarbons, Citroniq says.

Mel Badheka, principal and co-founder of Citroniq, says his company aims “to meet the market’s growing need for sustainable carbon-negative polypropylene at a competitive price.”

The global market for green polypropylene was valued at $123.5 billion in 2022, according to Grand View Research. Growth in the sector is being driven in part by the construction industry, the firm says.

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A View From HETI

Base Power, founded by Justin Lopas and Zach Dell, has closed one of the largest venture capital deals of the year. Photo courtesy Base Power.

Austin-based startup Base Power, which offers battery-supported energy in the Houston area and other regions, has raised $1 billion in series C funding—making it one of the largest venture capital deals this year in the U.S.

VC firm Addition led the $1 billion round. All of Base Power’s existing major investors also participated, including Trust Ventures, Valor Equity Partners, Thrive Capital, Lightspeed Venture Partners, Andreessen Horowitz (a16z), Altimeter, StepStone Group, 137 Ventures, Terrain, Waybury Capital, and entrepreneur Elad Gil. New investors include Ribbit Capital, Google-backed CapitalG, Spark Capital, Bond, Lowercarbon Capital, Avenir Growth Capital, Glade Brook Capital Partners, Positive Sum and 1789 Capital Management.

Coupled with the new $1 billion round, Base Power has hauled in more than $1.27 billion in funding since it was founded in 2023.

Base Power supplies power to homeowners and the electric grid through a distributed storage network.

“The chance to reinvent our power system comes once in a generation,” Zach Dell, co-founder and CEO of Base Power, said in a news release. “The challenge ahead requires the best engineers and operators to solve it, and we’re scaling the team to make our abundant energy future a reality.”

Zach Dell is the son of Austin billionaire and Houston native Michael Dell, chairman and CEO of Round Rock-based Dell Technologies.

In less than two years, Base Power has developed more than 100 megawatt-hours of battery-enabled storage capacity. One megawatt-hour represents one hour of energy use at a rate of one million watts.

Base Power recently expanded its service to the city of Houston. It already was delivering energy to several other communities in the Houston area. To serve the Houston region, the startup has opened an office in Katy.

The startup also serves the Dallas-Fort Worth and Austin markets. At some point, Base Power plans to launch a nationwide expansion.

To meet current and future demand, Base Power is building its first energy storage and power electronics factory at the former downtown Austin site of the Austin American-Statesman’s printing presses.

“We’re building domestic manufacturing capacity for fixing the grid,” Justin Lopas, co-founder and chief operating officer of Base Power, added in the release. “The only way to add capacity to the grid is [by] physically deploying hardware, and we need to make that here in the U.S. ... This factory in Austin is our first, and we’re already planning for our second.”

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