VINCENNES, IND. — AgroRenew is an agriculturally based, industrial project getting underway in Vincennes and Knox County, Ind., a project that could be a game changer for producing plant-based, biodegradable plastics using agricultural waste – starting with watermelons – as feedstock.

The market demand for green sourced, non-petroleum plastics is so great that AgroRenew (AR) has sold out, in advance, 100 percent of its initial future production, according to Brian Southern, AgroRenew’s founder and CEO. The company needs 550 million pounds of watermelon waste each year, the basic feedstock to make 300,000 tons of biodegradable plastic pellets annually. The pellets will be transformed into a variety of finished products, including plastic bags, hard plastics, straws, and single-use packaging. The company is seeking approval for various medical products. This ag-based plastic is the basis for 14 formulations of various end-use plastics.

A groundbreaking ceremony took place last June for a new 200,000-square-foot industrial facility just off U.S. 41 at East Elkhorn Road south of Vincennes. The project includes a new CSX railway siding, indicating the scale of transportation infrastructure necessary to bring in sufficient watermelons. Importantly, the new rail capacity will also be used by an auto manufacturing plant just north of Vincennes.

In a recent interview, Southern explained that, for supply, AR is working with Knox County farmers, where it’s estimated that 40 million pounds of melons are left unharvested in fields each year. In addition, AR is establishing supply chains with farmers in Georgia, Florida, Texas and California. AR has established a growers’ cooperative that will review payments to farmers for the ag waste. The ag-waste supply stream will diversify in the future to include other melon-type produce.

“We’re sure of our sources as we start,” Southern said. He explained further that “we need 1.6 billion pounds of biosource during a manufacturing year. This will make 631 million pounds of degradable resin. A 3:1 reduction of ag material.”

Brady Mouzin, with Mouzin Brothers Farms, in Vincennes, is on the board of the new co-op. At the June groundbreaking he noted new opportunities for farmers.

“Current standard procedure is that the farm incurs a cost or pays someone to dump the product if it doesn’t meet grade A fruit and vegetable standards, so this (new facility) is going to provide an opportunity for us to either do that at a cost neutral way or even make a profit off of this,” Mouzin said.

One challenge for farmers is how to best retrieve unwanted produce, now mostly left to decay, Southern said. “Now, we’re asking farmers to harvest that previously unwanted produce,” he added. This will take time and energy; hence the efforts to be upfront about payments.

Mouzin said there is no clear answer yet about collection. He said this is a topic of active discussion among farmers within the co-op. Because of labor costs, it’s not possible to just experiment with different approaches. Grade A watermelons are handled singularly and carefully to avoid bruising and product rejection; watermelons are not a mechanized harvest.

However, absent concerns about bruising and rejection, Mouzin commented that collection can likely be quicker, less cautious. One possible initial approach, Mouzin said, is using conveyor belts to move nonsaleable melons from fields to nearby wagons or trucks. Another approach could be retrieving – and separating – all watermelons during field work, and then sending the non-marketable melons to AgroRenew.

Mouzin expects new mechanized approaches will eventually be developed, perhaps similar to a potato digger.

AR’s ag resource will likely expand beyond watermelons and Southern said the co-op is evaluating whether and how cover crops might be used. One question for Southern is whether a cover crop can be deliberately chosen because it could maximize the precursor compounds valuable for bioplastics.

AR has developed proprietary processes to break the watermelons and remove water and seeds and then further pulverize the rinds to recover natural starches and retain chemical building blocks. Southern said “the trick is getting the water out and pulverizing without loss. We want the starch which is used for compounding processes. We can get the molecules to bind together to make a polymer similar to petroleum. This is a 100 percent bio resin polymer.”

Southern explained that AR’s process has advantages over other ag-waste plastic production because AR’s methods do not require as much heat nor fermentation.

Southern was asked for an update on construction, which, six months ago, AR expected would be finished in 2026. Some production and shipping were expected even earlier, in 2025.

However, Southern explained there have been unexpected bumps in that timetable. One challenge is the availability of certain equipment, particularly industrial scale electrical equipment such as transformers and switching gear. Orders for new equipment face a 70-week delay, he said, adding that this market is still recovering from the pandemic and related supply chain issues. Plus, the recent hurricanes in Florida and the southeast caused further disruptions, not just with availability but because damaged areas, based on need, are given priority for new equipment.

In November, Southern said the site is preparing for foundation work. Design work is 90 percent finished. Southern added that construction has to generally align with harvest schedules. He said, “we can’t have a complete plant but no harvest so we’re taking it a bit slower.”

The plant will buy electric power from the regional utility to supply industrial loads. But the plant will also install roof-top solar panels to supply smaller loads, such as offices, an on-site child-care facility and other non-work areas. Additionally, for possible emergencies in the non-industrial areas, the plant will have battery storage sufficient for four hours of service.

Southern was asked about workforce recruitment and retention. When operating at maximum capacity, it’s expected that the plant will employ more than 300, with employees needed to provide a range of skills, from facility management to production and operation as well as engineering and researchers in agricultural sciences. A follow up goal, after start-up, is constructing a research facility focusing on biobased chemical feedstocks. This is a priority for USDA and Southern said he is in discussions now with USDA officials about a partnership covering a range of agriculture research and development initiatives.

AR has a “Join Our Team” link on its website. At the end of November, Southern said about 500 people have signed up to receive notifications. He’s confident that from this interested group, AR will be able to build its opening workforce. He has noted a great deal of interest from younger people who would like to return to Vincennes if the right career opportunities are available. AR’s project is the biggest new investment in Knox County in about a decade. AR planned to start hiring at the end of the summer 2024, but that, too, has been pushed back slightly.

Southern expects significant project updates in the second quarter 2025.