BioAmber secures its first bio-succinic acid contract
May 1, 2014, Minneapolis, Minn. - BioAmber Inc. announced it has signed its first take-or-pay contract for succinic acid. Under the terms of the agreement, BioAmber will be the principal supplier of bio-succinic acid to PTTMCC Biochem for the production of a biodegradable plastic in Thailand.
May 1, 2014 By Canada Newswire
May 1, 2014, Minneapolis, Minn. – BioAmber Inc. announced it
has signed its first take-or-pay contract for succinic acid. Under the terms of
the agreement, BioAmber will be the principal supplier of bio-succinic acid to
PTTMCC Biochem for the production of a biodegradable plastic in Thailand.
PTTMCC Biochem Company Limited is a joint venture
established by Mitsubishi Chemical Corporation, Japan's leading chemical company
and PTT Public Company Limited, Thailand's largest oil and gas company. The
joint venture will produce and sell polybutylene succinate (PBS), a
biodegradable plastic made from succinic acid and 1,4 butanediol (BDO). PTTMCC is constructing a PBS plant in Rayong,
Thailand that will have an annual production capacity of 20,000 tons. The PBS
plant is expected to be operational in the first half of 2015 and will consume
approximately 14,000 tons of succinic acid per year at full capacity.
BioAmber plans to supply PTTMCC from its 30,000 ton per year
plant under construction in Sarnia, Canada. After the commissioning and start
up periods for both plants in 2015, BioAmber will exclusively supply a minimum
of 80% of PTTMCC's total bio-succinic acid needs until the end of 2017. The
take-or-pay volumes committed by PTTMCC over the three-year term represent
approximately half of the total annual quantity of bio-succinic acid that
PTTMCC plans to purchase from BioAmber.
"This first succinic acid take-or-pay agreement is an
important milestone for BioAmber," said Babette Pettersen, BioAmber's
Chief Commercial Officer. "This contract guarantees significant sales
volume for our Sarnia plant during its first three years of operation. PTTMCC
is a major new buyer of bio-succinic acid and locking up this substantial
volume commitment will strengthen our market leadership," she added.
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