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Planet-Profit Report, reporting on sustainable development in the Western United States.

Transfer Spotlight: Rivertop Renewables

Glucaric acid is one versatile chemical

THE COMPANY: Rivertop Renewables

RESEARCH CONNECTIONS: Dr. Don Kiely left the University of Montana (Missoula) to start Missoula-based Rivertop Renewables with his son, VP of Marketing Jason Kiely, and CFO Jere Kolstad in 2008.

LIFTOFF: Glucaric acid expert Kiely has worked in his field in academia for years before taking his findings to the private sector with Rivertop Renewables. “He took it as far he could from a university standpoint,” says CEO Jim Stoppert, who joined the company in June 2010 after 30 years working in biochemicals and green chemicals at such chemical giants as Dow and Cargill.

With applications ranging from preventing corrosion on bridges to producing polymers, “Glucaric acid is an interesting chemical that can be used for a lot of different purposes,” Stoppert says, noting that Kiely's prime innovation offers a better way of producing the glucaric acid than the status quo. “The sweet spot is that it's a processing technology. It's a nitric acid oxidation technology.”

Glucaric acid is made from nitric acid and glucose, and existing production processes generate waste or inefficiently lose the former input, he says. The greener Rivertop process captures nitric acid and waste lost by other processes and efficiently recycles it back into the input stream. “It's not only cheaper but it's more environmentally friendly and energy efficient as well,” Stoppert says. But he's tight lipped on exactly how much cheaper: “I don't want to put a number on it,” he says, while noting that the number will be “significantly under a dollar a pound.”

There is a sizable potential market for raw glucaric acid, but it can also be used to create other chemicals. Among its many uses, glucaric acid is a substitute for phosphates – banned in the U.S. but still a leading ingredient for detergent and a concrete additive in many other countries. “In this case we don't have to further process [the glucaric acid],” Stoppert says. “Later on, we may make polymers out of it.”

Noting that Rivertop is the fifth startup he's been involved with in his career, Stoppert adds, “This one is exciting in how fast we can go to market. We'll be selling product from a contract manufacturer this time next year.”

The company is currently 12 employees strong, a number Stoppert says he'd like to double in 2011 as the company builds a laboratory and pilot plant in Missoula. The longer-term plan calls for a commercial facility to open in 2013.

THE PLAYERS: Dr. Don Kiely, formerly on the faculty of the University of Montana, co-founded Rivertop Renewables (then Montana Renewables) in 2008. Four of his former students currently work for the company.

THE MARKET: Phosphates are a $10 billion annual market worldwide. The market for polymers and other derivative products is considerably larger.

FINANCING: Rivertop's 2008 launch was funded by angel investments. “We're a startup,” Stoppert says. “You're always looking for funding.” He says the company has nearly closed on an interim round, and hopes to land a $7 million to $8 million round in 2011.