(OTTAWA) – June 23, 2014- Export Development Canada (EDC) today announced that it has led a CAD 20 M commercial project finance facility for BioAmber to develop a biochemical production facility in Sarnia, Ontario.
The project, BioAmber Sarnia (BAS) will have an annual production capacity of 30,000 metric tons, making it the world’s largest bio-based succinic acid facility.
Bio-based succinic acid, a natural alternative to petroleum-based succinic acid, has a range of applications, including as a raw material for polyurethanes, coatings, adhesives, sealants, and personal care ingredients.
“BioAmber’s new Sarnia facility is an excellent example of next-generation clean technology, providing global industries with viable, bio-based and carbon neutral materials for industrial production,” said Carl Burlock, Senior Vice-President, Financing and Investments, EDC.
“EDC’s focus was to develop a commercial financing structure that was flexible enough to meet BioAmber’s needs and those of the partner banks, because private-sector financing will be critical to building a stronger BioAmber Sarnia and clean tech clusters in Canada overall,” added Mr. Burlock.
Accordingly, Comerica Bank and Farm Credit Canada are part of this financing facility for BioAmber on a pari-passu basis.
EDC is Canada’s leading provider of financing, insurance and bonding for Canadian companies of all sizes that do business outside of Canada.
“This is the world’s largest bio-based succinic acid plant and will help to create jobs and showcase Sarnia and South-West Ontario as an emerging cluster in the green chemicals space,” said Jean-Francois Huc, BioAmber’s Chief Executive Officer. “Working with EDC provides BioAmber with the opportunity to access global financial markets.”
The facility is expected to be mechanically complete in early 2015. BioAmber noted that there is potential to expand production by 20,000 metric tons in 2016, bringing total annual production capacity to 50,000 metric tons for the commercial global market.
BioAmber has been producing bio-based succinic acid in a large-scale facility in France since January 2010. Compared to petroleum-based succinic acid, BioAmber’s proprietary process produces carbon neutral, bio-based succinic acid from renewable plant based feedstocks.
Clean technology is an area of corporate priority at EDC, with a dedicated team focused on understanding the industry’s needs and delivering the right solutions to help Canadian cleantech companies start up and grow their business internationally.
In January of 2014, EDC issued its first US$300 million Green Bond, which was oversubscribed. The bond is based on EDC’s current portfolio of green assets and includes loans made to companies who are active in fields of preservation, protection or remediation of air, water, and/or soil, or the mitigation of climate change. BioAmber’s Sarnia facility will be allocated to the Green Bond portfolio.
BioAmber (NYSE:BIOA) is an industrial biotechnology company producing sustainable chemicals. Its 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.
EDC is Canada’s export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public- sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.