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BioAmber gets fed help to build bio-chem plant

site_sarniaAugust 28, 2013, Sarnia, Ont - BioAmber Sarnia's new bio-based succinic acid plant, the first commercial scale production plant of its kind, will receive a $12 million investment from the federal government to support its construction in Sarnia.


August 28, 2013
By Scott Jamieson


Topics

The
announcement was made today by Patricia Davidson, Member of Parliament
for Sarnia–Lambton, alongside the Honourable Gary Goodyear, Minister of
State for the Federal Economic Development Agency for Southern Ontario
(FedDev Ontario).

The plant is expected to create 150 construction jobs and 60 permanent jobs once the plant is operational at the end of 2014. BioAmber currently produces bio-based succinic acid in a large-scale demonstration facility in Pomacle, France, which is among the largest bio-chemical manufacturing facilities in the world. BioAmber Sarnia is a joint venture between BioAmber Inc. (70%), and
Mitsui & Co. (30%), one of Japan's largest trading houses. BioAmber
has partnerships with market leaders including Cargill, DuPont Applied
Biosciences, Mitsui & Co. and Mitsubishi Chemical.

"Our Government is proud to invest in companies that are forming the foundation of a strong green economy in Canada," said MP Davidson. "We
welcome BioAmber to this community and look forward to seeing the
company evolve and prosper alongside the rest of Sarnia's growing
chemical cluster."

Succinic acid is a chemical used in the manufacturing process of many
everyday products, such as plastics, cosmetics, automotive parts and
construction materials. BioAmber has developed a proprietary process to
produce bio-succinic acid sustainably from renewable feedstocks, instead of petroleum.

"Sarnia's unique chemical and transport infrastructure, highly skilled workforce, excellent post-secondary institutions, and proximity to rich agricultural land make it the ideal place for BioAmber's bio-based succinic acid plant," said Minister Goodyear. "This investment will help position Sarnia as a hub for bio-chemical research and innovation, further diversifying the region's economy and establishing the conditions for long-term prosperity in southern Ontario."

A repayable contribution of up to $12 million through FedDev Ontario's Prosperity Initiative is being provided for the construction and operation of BioAmber's $110-million bio-succinic acid plant. For more on this plant read Canadian Biomass' earlier report on the Sarnia CanBio conference.

"We are grateful for the support given by FedDev Ontario to BioAmber Sarnia to build a commercial scale bio-based succinic acid plant and in helping develop a new bio-based chemical cluster in Sarnia," said Jean-François Huc, President and CEO, BioAmber. "This initial 30,000-tonne
capacity plant is an important step in changing the way the world makes
products that historically have only been made through the traditional
petrochemical route."


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