09/06/2011 (Chicago Business) - Elevance Renewable Sciences Inc. is putting its first U.S. biorefinery in Mississippi.

The fast-growing Bolingbrook-based startup, spun out of Cargill Inc. in 2007, makes substitutes for petroleum-based specialty chemicals from renewable sources such as palm oil. Late last year it raised another $100 million from investors for a U.S. biorefinery.

Elevance’s specialty chemicals, which are far more lucrative than biofuels such as ethanol, are used in personal-care products, detergents, plastics and lubricants.

Elevance says it bought an 800,000-square-foot biofuels plant in Natchez, Miss., for an undisclosed price. Elevance will invest $225 million over the next five years to convert it into a biorefinery, which will employ 165 people, the company said Tuesday.

Elevance will receive a $25-million loan from the state of Mississippi, as well as undisclosed assistance to make upgrades to the plant, located in the Natchez-Adams County Port.

The company wouldn’t say whether Illinois was considered for the project or if the state offered an incentive package. Elevance cited the Natchez facility’s access to barge, rail and road transportation for incoming raw materials and outgoing products.

"Elevance conducted a thorough site selection process in multiple locations across the United States and considered multiple criteria before selecting Natchez," a spokeswoman says, "because of Natchez’s dedicated workforce, existing infrastructure and the strong relationship we’ve developed with city and state officials."

The company plans to open its first large facility later this year in Indonesia under a joint venture with Wilmar International.