BioAmber Sarnia secures $7 million in additional funding from SDTC
Company says it secured additional funding by doubling capacity to 30,000 metric tons and increasing job creation numbers.
MINNEAPOLIS, Minn. — BioAmber Inc.’s Canadian subsidiary, BioAmber Sarnia Inc., has secured an additional $7 million grant from Sustainable Development Technology Canada (SDTC) for the ongoing construction of its $135 million bio-succinic acid plant in Sarnia, Ont.
The industrial biotechnology company that produces sustainable chemicals says it secured the 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.
When completed in 2015, the Sarnia plant will be the world’s largest succinic acid production facility.
The company 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. BioAmber has also signed 19 supply and distribution agreements and 8 memorandum of understanding, which collectively exceed the plant’s annual capacity.
BioAmber’s proprietary technology platform combines industrial biotechnology and chemical catalysts to convert renewable feedstock into sustainable chemicals for use in a wide variety of everyday products including plastics, resins, food additives and personal care products.