Baby Sarnia checks in at 60 million pounds, no ounces, doing fine.<\/p>\n
In Canada, BioAmber\u2019s Sarnia joint venture with Mitsui & Co. Ltd. has begun shipping bio-succinic acid to customers and is operating its manufacturing process at commercial scale, meeting a significant company milestone, the company said.<\/p>\n
BioAmber has confirmed the performance of its proprietary yeast in the production fermenters in Sarnia.\u00a0The fermentation performance achieved is significantly above the initial targets set for 2015, and the yield and productivity levels already exceed the targets the plant was designed to hit longer term.\u00a0 The bio-succinic acid being produced is of higher quality than the product previously produced in the demonstration plant located in France.<\/p>\n
Initial shipments have started to customers so they can confirm the quality of the bio-succinic acid produced in the Sarnia plant.\u00a0Management expects the Sarnia plant to be in commercial operation later this month and to increase production volumes progressively to reach full capacity in 2017.<\/p>\n
1. Limited feedstock risk is a good idea. BioAmber is using relatively plentiful Ontario corn sugars that are generally available in the sub-$4 range, and for which a supply chain is already in place.<\/p>\n
2. Think advantaged fermenation, not advanced. Succinic acid is one of the most efficient targets, starting from dextrose. C4H6O4 succinic, from C6H12O6 dextrose \u2014 that\u2019s up to 98% theoretical efficiency, much higher than making hydrocarbons or alcohols from sugar. Plus, it\u2019s a one-pot system \u2014 compared to stepping up to succinc from a petroleum-based hydrocarbon.<\/p>\n
3. Creative offtake partnerships make a real difference. The take-or-pay partnership with Vinmar for boatloads of succinic acid relieves a young company from the burden of identifying and capturing all the global customers, and aids immensely with financing by offloading some market risk.\u00a0Under the terms of the 15-year agreement, Vinmar has committed to purchase and BioAmber Sarnia has committed to sell 10,000 tons of succinic acid per year from the 30,000 ton per year capacity plant that is currently under construction in Sarnia, Canada.<\/p>\n
Will the technology reach nameplate capacity, and when? That\u2019s a questino not only of the yield \u2014 but the at-scale rates and titers and whether the economic lift from sugar to succinic supports the capex. BioAMber says, emphatically, yes \u2014 and we\u2019re standing by for confirmation when the company reaches expected capacity in 2018.<\/p>\n