The Iron Range Resources and Rehabilitation Board on Tuesday granted a Golden Valley based company $21 million dollars for engineering and construction of a bio-chemical plant at the Laskin Energy Park in Hoyt Lakes. Segetis proposed $105 million plant would produce cleaning products from wood-based bio-chemicals, instead of oil-based plastics.
The plant is expected to start small, using corn-based feedstock to derive sugars that would be made into levulinic acid, a key building block used to make plastics and cleaning compounds.
The company plans to expand and use biomass from forest products to get the same results by about 2018, eventually using up to 400,000 cords of wood per year.
Segetis was founded in 2006. The rest of the funding is expected to come from private investors and the Department of Employment and Economic Development.