- Contract guarantees sales volume for Sarnia plant during its first three years of operation
- Agreement ensures BioAmber is the principal supplier to a key emerging buyer of succinic acid
- PTTMCC selection of BioAmber as supplier validates bio-succinic cost competitiveness and quality
MINNEAPOLIS, MN, May 1, 2014 /CNW/ – BioAmber Inc. (NYSE: BIOA), an industrial biotechnology company producing sustainable chemicals, today announced it has signed its first take-or-pay contract for succinic acid. Under the terms of the agreement, BioAmber will be the principal supplier of bio-succinic acid to PTTMCC Biochem for the production of a biodegradable plastic in Thailand.
PTTMCC Biochem Company Limited (PTTMCC) is a joint venture established by Mitsubishi Chemical Corporation, Japan’s leading chemical company and PTT Public Company Limited, Thailand’s largest oil and gas company. The joint venture will produce and sell polybutylene succinate (PBS), a biodegradable plastic made from succinic acid and 1,4 butanediol (BDO). PTTMCC is constructing a PBS plant in Rayong, Thailand that will have an annual production capacity of 20,000 tons. The PBS plant is expected to be operational in the first half of 2015 and will consume approximately 14,000 tons of succinic acid per year at full capacity.
BioAmber plans to supply PTTMCC from its 30,000 ton per year plant under construction in Sarnia, Canada. After the commissioning and start up periods for both plants in 2015, BioAmber will exclusively supply a minimum of 80% of PTTMCC’s total bio-succinic acid needs until the end of 2017. The take-or-pay volumes committed by PTTMCC over the three-year term represent approximately half of the total annual quantity of bio-succinic acid that PTTMCC plans to purchase from BioAmber.
“This first succinic acid take-or-pay agreement is an important milestone for BioAmber,” said Babette Pettersen, BioAmber’s Chief Commercial Officer. “This contract guarantees significant sales volume for our Sarnia plant during its first three years of operation. PTTMCC is a major new buyer of bio-succinic acid and locking up this substantial volume commitment will strengthen our market leadership,” she added.
About BioAmber Inc.
BioAmber (NYSE: BIOA) is an industrial biotechnology company producing sustainable chemicals. Its proprietary technology platform combines industrial biotechnology and chemical catalysis 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.
About PTTMCC Biochem Limited
PTTMCC Biochem was established to develop and produce Polybutylene Succinate (PBS), a biodegradable plastic that is derived from sugar with a lower carbon footprint than conventional plastics. The company is a joint venture between PTT Public Company Limited of Thailand and Mitsubishi Chemical Corporation of Japan, with the shareholding proportion of 50% each. The company has its head office in Bangkok, and a plant is being built in Map Ta Phut, Rayong, Thailand.