BioAmber and CJCJ plan to establish a JV in China to produce up to 36 kton/year of bio-succinic acid

By -


Recent news about one of the main actors in the bio-succinic acid arena (learn more about succinic acid biorefineries). BioAmber Inc. is trying to penetrate the Asian market and, to this end, it has signed a non-binding letter of intent with South Korean-based CJ CheilJedang Corporation ("CJCJ"), a subsidiary of the CJ Group. Under the terms of the agreement, BioAmber and CJCJ plan to establish a joint venture in China to produce up to 36,000 metric tons of bio-succinic acid annually and commercialize the output in Asia (see the press release).

The goal is to retrofit an existing CJCJ fermentation facility with BioAmber's technology to market bio-succinic acid in China rapidly, cost effectively and with a relatively low investment. CJCJ would incur all capital costs required to retrofit its fermentation plant, including the capital needed during plant commissioning and startup. Production would begin in Q1 2018. If market demand were to subsequently exceed production capacity, the joint venture could expand it. The partners would also have a mutual right-of-first-refusal to retrofit additional CJCJ fermentation facilities globally (CJCJ operates in the United States, China, Indonesia, Malaysia and Brazil).

Figure 1. Succinic acid biorefinery of BioAmber in Sarnia (extracted from BioAmber web page)

CJCJ would own 65% of the JV and BioAmber would own 35%. The JV would pay BioAmber a royalty for having access to its bio-succinic acid technology and would pay CJCJ a tolling fee for producing bio-succinic acid on its behalf. Both partners would be entitled to a share of the profits equal to their respective equity ownership positions.

The proposed joint venture is subject to certain conditions, including technical and commercial due diligence, with the definitive agreements expected to be signed by July 2017. As part of the letter of intent, BioAmber will be selling bio-succinic acid manufactured at its Sarnia plant to CJCJ so that it can undertake market development in China and South Korea in the first half of 2017.

Popular Posts

Mini-plant for production of glucaric acid from glucose starts up successfully

By -
Image
Recent news about one of the DOE’s 12 Top Biobased Molecules. Rennovia Inc. and Johnson Matthey Process Technologies announced on July 16 that they have successfully started-up a mini-plant for production of glucaric acid from glucose using jointly developed technology. In March 2014, these companies embarked on a collaboration to develop, demonstrate and commercialize catalytic process technologies for the production of bio-based glucaric acid and adipic acid. Under the collaboration, Rennovia and JM Process Technologies work together in processes based on Rennovia’s technology for the catalytic aerobic oxidation of glucose to glucaric acid and the catalytic hydrogenation of glucaric acid to adipic acid. The final goal of the collaboration is to license a package enabling commercial production of these chemical products. The successful operation of this mini-plant is a major milestone in the journey to achieve this goal. The facility is located at the Johnson Matthey Process ...
Read more

Biorefinery models - Lignocellulosic biorefinery

By -
Image
Publication date: 25/04/2016 Last update: 25/04/2016 ABOUT THE SERIES OF POSTS “BIOREFINERY MODELS” This post belongs to a series called “ Biorefinery Models ”. This series is devoted to briefly describe the models or concepts of advanced biorefineries which have emerged in the last few years and that are rising currently. These models are simplified representations which enable us to understand in a simple way the structure and characteristics of a general biorefinery type. Some of these models refer to the type of feedstock while other focus on the technologies involved. A biorefinery may resemble these models or be the result of variations and combinations of them. It should be noted that although these paradigms are very useful and instructive, they show limitations in describing and classifying complex systems with high level of integration. In order to define and describe a specific complex case, the blog recommends use the classification proposed by IEA Bioenerg...
Read more

Biofuels from algae

By -
Image
In my opinion, the production of biofuels and biobased chemicals from algae is one of the most fascinating topics in the sector of the biorefineries and it will be one of the niches of opportunity with highest potential in the medium and the long terms. This post pretend to be a very basic approach to the topic Algae-to-Biofuels through three general key points. Algae 1,2,3,4,5 Algae include a wide variety of photosynthetic organisms capable of transforming light, water and specific nutrients into products that can be used with commercial and industrial purposes. We can say that algae are sunlight-driven factories with potential to convert CO 2 into biofuels, high-value biochemical, food and feed. There are four algae cultivation technologies currently in use for commercial algae cultivation and proposed for algal biofuel production: extensive or open ponds, intensive or raceway ponds, closed photobioreactors in many designs and closed fermenter systems. Algal biof...
Read more

Hidrotratamiento (HVO) – Conceptos, materias primas y especificaciones

By -
Image
English version Sección: BIOCOMBUSTIBLES AVANZADOS Serie: HVO - Hidrotratamiento (HVO) – Conceptos, materias primas y especificaciones - Hidrotratamiento(HVO) – Ventajas sobre el biodiesel convencional y propiedades - Biorrefinerías de Aceites Vegetales Hidrotatados (HVO) – El auge del diésel renovable - Entradas: HVO                El acrónimo HVO significa en inglés “ Hydrotreated Vegetable Oils ” (“Aceites Vegetales Hidrotratados”) o ” Hydrogenated Vegetable Oils ” (“Aceites Vegetales Hidrogenados”). Clave del proceso: Tratamiento con hidrógeno. En el proceso de producción de HVO, el hidrógeno se usa para eliminar el oxígeno de los triglicéridos produciendo una mezcla de parafinas lineales, CO 2 y agua. Posteriormente, el producto de la primera etapa se isomeriza, siempre en presencia de hidrógeno, para ramificar las cadenas lineales con el propósito de mejorar las propieda...
Read more

Biobased acrylic acid

By -
Image
Versión en Español Type of post: Fact sheet. Series: Biobased chemicals – Organic acids. Publication date: 05/05/2021. Last update: 05/05/2021. Description - Organic acid with 3 carbon atoms. - It is a clear, colourless, corrosive liquid with a characteristic acrid or tart smell. - Other names: prop-2-enoic acid. Applications - Formation of homopolymers or copolymers which are used in the manufacture of various adhesives, coatings, diapers, detergents, paints, plastics and textiles. The main use of crude acrylic acid is the generation of acrylate esters, followed by the production of polyacrylic acid, used mostly in superabsorbent polymers. - Chemical intermediate in multiple industrial processes. Conventional petrochemical route - Cracking of fossil naphtha to produce propylene / Oxidation of propylene. Main biobased routes - [3-HPA via] Fermentation of sugars to produce 3-hydroxypropionic acid (3-HPA) / Dehydration of 3-HPA. - [Biobased naphtha via] Cracking of biobased naphth...
Read more