BioAmber, Mitsui plot Canada biosuccinic acid plant
BioAmber and Mitsui & Co. have officially partnered in Canada to build and operate their previously-announced biosuccinic acid manufacturing facility in Sarnia, Ontario.
The initial phase of the facility is expected to have production capacity of 17,000 tpy of biosuccinic acid and commence commercial production in 2013.
The partners intend to subsequently expand capacity and produce 35,000 tpy of succinic acid and 23,000 metric tons of 1,4 butanediol (BDO) on the site.
BioAmber and Mitsui also intend to jointly build and operate two additional facilities that, together with Sarnia, will have a total cumulative capacity of 165,000 tpy of succinic acid and 123,000 tpy of BDO.
BioAmber will be the majority shareholder in the plants.
The two companies also plan to build and operate a second plant in Thailand, which is projected to come on line in 2014. The partners are currently undertaking a feasibility study for the Thailand plant with PTT MCC Biochem Co. a joint venture established between Mitsubishi Chemical Corp. and PTT Public Co.
BioAmber and Mitsui & Co. also plan to build and operate a third plant, located in either North America or Brazil, which will be similar in size to the Thailand project, the companies said.
The partners said they are combining their respective strengths. BioAmber has developed a proprietary technology platform that combines industrial biotechnology, an innovative purification process and patented catalysts to convert renewable feedstocks into chemical that are cost effective replacements for petroleum-derived chemicals.
BioAmber is currently producing and selling succinic acid at a plant in France and said it has proven the quality and cost competitiveness of its technology without subsidies, using commercial-scale fermenters.
Mitsui & Co. is one of the largest general trading companies in the world, with a broad presence in the global chemicals market.
In addition to its extensive distribution capabilities and market access, Mitsui & Co. said it is strongly committed to the renewable chemicals industry and has secured renewable feedstock in Brazil, Thailand and other countries as part of its strategic focus on renewable chemicals.
In its fiscal year ending March 31, 2011, Mitsui had total revenues of $55 billion and net income of $3.6 billion. The company has over 40,000 employees on a consolidated basis and operates 153 offices in 65 countries.
"Our goal is to play a leading role in the growth of renewable chemicals, as evidenced by our recent joint ventures with BioAmber in North America for biosuccinic acid and The Dow Chemical Company in Brazil for biochemicals," said Masanori Ikebe, general manager of Mitsui's specialty chemicals division.
"We believe that biosuccinic acid and bio-BDO will experience rapid growth over the next decade, and BioAmber's technology leadership is an excellent fit with Mitsui's strength across the supply chain," Ikebe added.
Jean-Francois Huc, CEO of BioAmber, said: “BioAmber's partnership with Mitsui & Co. is a strong endorsement of our technology platform.
"Mitsui is an ideal partner thanks to its long-term commitment to renewable chemistry, its extensive reach into chemical markets and its strategic access to sustainable feedstocks. Mitsui also has the financial strength to support our expansion and help us compete internationally."
Comments