Cropenergies acquires stake in biotech start-up LXP

The start-up has developed a patented process to produce biofuels from residual and waste materials. Now Cropenergies is getting involved.

Cropenergies has secured just under 20 percent of the Brandenburg-based start-up LXP. This cost the company around two million euros. The investment is said to be a further step in the Mannheim-based energy company's realignment. "The investment in LXP, with a patented, state-of-the-art process, opens up further opportunities for Cropenergies to expand its raw material base for the production of second-generation biofuels," says Stephan Meeder, CEO of Cropenergies. The company now intends to specialize more in producing ethanol from residues.

LXP, a start-up founded in 2012, aims to produce biofuels and biobased chemicals from clippings, sawdust and straw. In addition, the process would also produce lignin, which can be used to make products such as 3D printer ink, carbon fibers and phenolic resins. LXP plans to build a pilot plant in the near future to start producing cellulose and lignin, he said. "The strategic reinforcement by Cropenergies enables us to expand our technology much faster," says Volker Bauer, managing director of LXP Group GmbH.