If approved, the $360 million loan guarantee will be used to fund BioAmber's next plant
MINNEAPOLIS, Sept. 21, 2016 /PRNewswire/ - BioAmber Inc. (NYSE: BIOA) is pleased to announce an important milestone in its application for a $360 million loan guarantee from the U.S. Department of Energy (U.S. DOE). This loan guarantee is in connection with the Company's goal of securing non-dilutive funding for its proposed second manufacturing facility that would be located in the United States.
The U.S. DOE's Loan Program Office (LPO) administers a four phase process under the Title XVII Innovative Clean Energy Projects loan guarantee program. This program finances innovative renewable energy and efficient energy projects. BioAmber successfully completed the first two phases of the process and was selected for the next phase in which it will engage the LPO in the negotiation of terms and conditions of the potential loan guarantee, and work with the LPO to validate the engineering, environmental, market and financial information that BioAmber submitted in the previous phases.
BioAmber's proposed second facility will be over six times the size of its existing Sarnia plant, with annual capacity of 70,000 tons of bio-based 1,4-butanediol (BDO), 24,000 tons of bio-based tetrahydrofuran (THF) and 60,000 tons of bio-based succinic acid. Using ten year average feedstock and chemical pricing, and the same performance targets as the Sarnia plant, this facility is forecast to generate annual sales of over $350 million and $150 million of EBITDA at full capacity.
Jean-Francois Huc, BioAmber's CEO stated: "Our first commercial plant in Sarnia is ramping up to full capacity and performance is on track. Securing funding for our second facility would be the cornerstone of our next phase of growth, where we will have expanded our product line to include bio-BDO and bio-THF and in so doing, become a world leader in renewable chemicals."
For more information on the DOE Title XVII program's application process, visit: http://energy.gov/lpo/title-xvii-application-process
About The Department of Energy's Loan Programs Office
The Department of Energy's Loan Programs Office (LPO) supports a large, diverse portfolio of more than $30 billion in loans, loan guarantees, and commitments, supporting more than 30 closed and committed projects. This portfolio is helping to advance the nation's all-of-the-above energy strategy through projects including the first nuclear power plant to begin construction in the U.S. in the last three decades, one of the world's largest wind farms, several of the world's largest solar generation and thermal energy storage systems, and more than a dozen new or retooled auto manufacturing plants across the country.
BioAmber (NYSE: BIOA) is a renewable materials company. Its innovative technology platform combines biotechnology and catalysis to convert renewable feedstock into building block materials that are used in a wide variety of everyday products including plastics, paints, textiles, food additives and personal care products. For more information visit www.bio-amber.com
This press release contains forward-looking statements, which are subject to substantial risks, uncertainties and assumptions. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward- looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. For additional disclosure regarding these and other risks faced by BioAmber, see disclosures contained in BioAmber's public filings with the SEC including, the "Risk Factors" section of BioAmber's most recent Annual Report on Form 10-K and the recent quarterly reports on Form 10-Q.
SOURCE BioAmber Inc.