BIOAMBER
100,000 t/y bio-based BDO facility planned in North America / Offtake agreement with Vinmar extends for 15 years / Market breakthrough
Renewable chemistry company BioAmber (Plymouth, Minnesota / USA; www.bio-amber.com) plans to build a bio-based BDO plant in North America and has signed an offtake agreement with marketing and distribution company Vinmar International (Houston, Texas / USA; www.vinmar.com). Under the agreement, Vinmar will purchase 100% of the output from the 100,000 t/y plant for 15 years. The plant is scheduled to come onstream in 2017.
The companies said Vinmar plans to invest in the BDO project by taking a minority equity stake of at least 10%. Vinmar also has a right of first refusal to invest in and secure 100% of the offtake from a second BDO plant that BioAmber could build in the future.
As part of pre-marketing activities, BioAmber plans initially to produce about 4,000 t/y of BDO at a toll manufacturing facility that it expects to commission in 2015. Vinmar will purchase 100% of the BDO produced at this tolling facility, which will also convert bio-succinic acid produced at a plant in Sarnia / Canada that BioAmber is currently building with Mitsui (Tokyo / Japan; www.mitsui.com) – see Plasteurope.com of 15.11.2011. BioAmber produces BDO by combining its succinic acid technology with a catalyst technology licensed from DuPont (Wilmington, Delaware / USA; www.dupont.com).
"This partnership with Vinmar positions BioAmber to become a producer of BDO, a second platform chemical beyond succinic acid,” states BioAmber CEO Jean-Francois Huc. “We believe this take-or-pay contract will help us to secure significant project financing for our first commercial BDO plant.” BioAmber expects the project financing, together with co-investments by Vinmar and other equity partners such as Mitsui, to limit the cash BioAmber needs to contribute to become the majority owner of the plant.
"Vinmar has a proven track record of selling large volumes of BDO, has global logistics expertise and vast experience executing large chemical projects," adds Fabrice Orecchioni, BioAmber’s COO. Vinmar was the principal off-taker of a 75,000 t/y BDO plant in Saudi Arabia from production start-up in 2005 until 2013.
BioAmber says it has validated the quality of its bio-based BDO with more than 20 purchasers of petroleum-based BDO. The market for BDO, which is used in the manufacture of materials including engineering plastics and PU, is estimated at USD 4 bn (EUR 2.9 bn).
The companies said Vinmar plans to invest in the BDO project by taking a minority equity stake of at least 10%. Vinmar also has a right of first refusal to invest in and secure 100% of the offtake from a second BDO plant that BioAmber could build in the future.
As part of pre-marketing activities, BioAmber plans initially to produce about 4,000 t/y of BDO at a toll manufacturing facility that it expects to commission in 2015. Vinmar will purchase 100% of the BDO produced at this tolling facility, which will also convert bio-succinic acid produced at a plant in Sarnia / Canada that BioAmber is currently building with Mitsui (Tokyo / Japan; www.mitsui.com) – see Plasteurope.com of 15.11.2011. BioAmber produces BDO by combining its succinic acid technology with a catalyst technology licensed from DuPont (Wilmington, Delaware / USA; www.dupont.com).
"This partnership with Vinmar positions BioAmber to become a producer of BDO, a second platform chemical beyond succinic acid,” states BioAmber CEO Jean-Francois Huc. “We believe this take-or-pay contract will help us to secure significant project financing for our first commercial BDO plant.” BioAmber expects the project financing, together with co-investments by Vinmar and other equity partners such as Mitsui, to limit the cash BioAmber needs to contribute to become the majority owner of the plant.
"Vinmar has a proven track record of selling large volumes of BDO, has global logistics expertise and vast experience executing large chemical projects," adds Fabrice Orecchioni, BioAmber’s COO. Vinmar was the principal off-taker of a 75,000 t/y BDO plant in Saudi Arabia from production start-up in 2005 until 2013.
BioAmber says it has validated the quality of its bio-based BDO with more than 20 purchasers of petroleum-based BDO. The market for BDO, which is used in the manufacture of materials including engineering plastics and PU, is estimated at USD 4 bn (EUR 2.9 bn).
04.02.2014 Plasteurope.com [227413-0]
Published on 04.02.2014
German version of this article...