DoD Invests $80 Million in Bay Area Bioindustrial Site

Even amid headlines on government cutbacks and short lists of possible federal building sales, the U.S. Department of Defense is investing at least $80 million to turn a 25,000-square-foot Hayward property into a pilot site for bioindustrial manufacturers.

That’s according to a press release from BioMADE, a public-private partnership created by the department in October 2020 to build up the domestic bioindustrial manufacturing industry.

The investment is “critical” to support early-stage biomanufacturing, not fall behind other countries and address national security, according to BioMADE CEO Doug Friedman.

Bioindustrial manufacturing can create defense materials like fuels, high temperature-resistant foams and thermal protection systems as well as consumer products like plant-based fabrics, detergents, beauty products and bioplastics, according to BioMADE.

The space at 25821 Industrial Blvd is part of Mt. Eden Research Park, a nearly 25-acre site with a six-building, 370,000-square-foot life sciences campus that was acquired by San Francisco-based private investment firm GI Partners for $155 million in 2021. GI Partners did not immediately reply to a request for comment.

While a BioMADE rep would not comment on the exact details of the real estate transaction, the press release said the plan is to build on investments already made in the building by its current biotechnology tenant to create a multi-user piloting, processing and analytical space. Currently, the U.S. has a lack of pilot- to demonstration-scale infrastructure, causing American companies to seek appropriate venues overseas, according to BioMade.

The building was already occupied by San Francisco-based Lygos, a biotechnology company that engineers yeast and other microbes to turn sugars into industrial chemicals. As part of the deal, BioMADE will acquire Lygos’ processing equipment and further invest in the facility to expand its capabilities.

“The opportunity to acquire this facility in Hayward offered excellent equipment, as well as a good building size and specifications for pilot-scale biomanufacturing operations,” Friedman said. “As a whole, the Bay Area is a national hub for biotechnology and biomanufacturing innovation, with hundreds of BioMADE members in California alone. Going further, there are many relevant education and workforce development opportunities in the area that will help to further bolster industry growth.”

Friedman added that the U.S. is at risk of falling behind other countries in its ability to produce chemicals and materials needed for both defense and consumer applications, and that the facility would play a “critical role as America works to regain dominance in the biotechnology and biomanufacturing industry.”

Lygos will stay on while the upgrades, which should wrap up in early 2026, are being made, according to the BioMADE rep. Once the BioMADE facility is open, Lygos could become one of its users.

Lygos is “proud to partner with BioMADE on a shared vision to strengthen U.S. capabilities,” Lygos CEO Eric Steen said in a statement.

This is not the only DoD-sponsored investment via its BioMADE institute, which has over 300 member companies in 39 states. This week it also announced a $132 million infrastructure facility in Maple Grove, Minnesota and last March it shortlisted Georgia, Hawaii, Indiana, Iowa and North Carolina for additional infrastructure sites.

“Through bioindustrial manufacturing, the U.S. can secure global supply chains, enhance military readiness, address contested logistics challenges and more,” Friedman said.