Liberation Labs secures additional funding for Richmond plant
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The U.S. Department of Agriculture has awarded a $25 million Business and Industry (B&I) loan guarantee that will support the construction of a $115 million biomanufacturing facility in Richmond.
New York-based Liberation Labs made the announcement Thursday, along with Georgia-based Ameris Bank, which helped secure the loan.
Liberation Labs announced plans for its first biomanufacturing facility in January with the goal of creating 45 jobs. Construction on the plant began in June and commercial production is expected to begin by the end of 2024.
The B&I loan is a government-backed loan made available to businesses located in areas with a population of 50,000 or fewer and are designed to help spur economic development.
Liberation Labs co-founder and CEO Mark Warner said receiving the loan guarantee is continued confirmation of the importance of adding biomanufacturing capacity in the U.S.
“Our project underwent significant due diligence and risk rating, and to come out the other end with a loan guarantee is a strong reflection of the quality of our team, our vision and our ability to execute,” Warner said in a news release. “We appreciate the significant efforts of the team at Ameris Bank to help secure this award.”
When complete, the commercial precision fermentation plant will produce alternative proteins, which are used in food products such as almond milk and plant-based meat, as well as agricultural products such as biopesticides.
The plant is being built on a 36-acre lot in Richmond’s Midwest Industrial Park and will have a fermentation capacity of 600,000 liters, the company said.
The company says the loan guarantee will ensure it has access to the necessary capital for additional “brick and mortar” needs of the construction process.
“Liberation Labs is at the forefront of bringing modern manufacturing to the heartland, creating well-paying jobs and driving economic impact,” said Neil Hollifield, managing director of government guaranteed lending at Ameris Bank. “It is exactly the kind of business the B&I program was made for.”
When the project was first announced, Liberation Labs said it had raised $20 million in a seed round of funding to advance its plans for the facility. In April, the company announced it had secured an additional $30 million in financing for the equipment needed at the plant.
As it continues construction, Liberation Labs says all long-lead equipment has been ordered and is under construction, while the company builds its corporate staff and local team in Richmond.
In a January interview with Inside INdiana Business, Warner said there will be room for expansion in the Wayne County city after the plant is completed.
“This initial facility is not as big as we hope to ultimately get,” he said. “There’s no near-term plan to expand, but the site itself will support a much larger build out should we choose to eventually.”
Warner cited the labor market in the region, readily available power, and a close proximity to corn wet mills that can provide corn dextrose—the plant’s main feedstock—as reasons to build the plant in Richmond.