Canadian Biomass Magazine

News
BioAmber secures $7 million loan from SDTC

July 2, 2014, Minneapolis, Minn. - BioAmber Inc. announced that its Canadian subsidiary BioAmber Sarnia Inc. has secured a $7 million grant from Sustainable Development Technology Canada (SDTC). The funds will be used to support the ongoing construction of the $135 million bio-succinic acid plant that is under construction in Sarnia, Ont.


July 2, 2014
By Canadian Biomass

July 2, 2014, Minneapolis, Minn. – BioAmber Inc. announced
that its Canadian subsidiary BioAmber Sarnia Inc. has secured a $7 million
grant from Sustainable Development Technology Canada (SDTC). The funds will be
used to support the ongoing construction of the $135 million bio-succinic acid
plant that is under construction in Sarnia, Ont.   

 

This grant comes in addition to the $7.5 million grant that
SDTC provided to BioAmber Sarnia in 2012. BioAmber secured this additional
funding after expanding the scope of the Sarnia plant, nearly doubling the
production capacity from 17,000 metric tons to 30,000 metric tons per year, and
increasing the number of jobs that will be created. The SDTC grant also
supports the switch to BioAmber's second-generation yeast, which proved to be
significantly more cost competitive than the bacteria-based fermentation
originally designed to operate in Sarnia.

 

Advertisment

When completed in early 2015, the Sarnia plant will be the
world's largest succinic acid production facility. BioAmber has secured
significant demand for the plant, including a take-or-pay contract with PTTMCC
Biochem, a joint venture between Mitsubishi Chemical of Japan and PTT PCL of
Thailand, which guarantees the sale of approximately 20% of total plant capacity.
In addition, BioAmber has signed 19 supply and distribution agreements and 8
memorandum of understanding, which collectively represent demand that exceeds
the plant's annual capacity.

 

Mike Hartmann, Exec VP of BioAmber, thanked SDTC for the additional
Sarnia plant funding. "Commercializing an innovative, clean technology
that is cost disruptive to the petrochemical industry is a major undertaking,
and it needs government support to become a reality. We are making chemicals
cleaner and cheaper than the petrochemical route, and this will translate into
lasting environmental and economic benefits for Canada."


Print this page

Related



Leave a Reply

Your email address will not be published. Required fields are marked *

*