MINNEAPOLIS, MN, July 2, 2014 BioAmber Inc. (NYSE: BIOA), an industrial biotechnology company producing sustainable chemicals, today announced that its Canadian subsidiary BioAmber Sarnia Inc., a Joint Venture with Mitsui & Co., has secured a CDN $7 million grant from Sustainable Development Technology Canada (SDTC). The funds will be used to support the ongoing construction of the CDN$135 million (US$125 million) bio-succinic acid plant that is under construction in Sarnia Ontario.
This grant comes in addition to the $7.5 million grant that SDTC provided to BioAmber Sarnia in 2012. BioAmber secured this additional funding after expanding the scope of the Sarnia plant, nearly doubling the production capacity from 17,000 metric tons to 30,000 metric tons per year, and increasing the number of jobs that will be created. The SDTC grant also supports the switch to BioAmber's second-generation yeast, which proved to be significantly more cost competitive than the bacteria-based fermentation originally designed to operate in Sarnia.
When completed in early 2015, the Sarnia plant will be the world's largest succinic acid production facility. BioAmber has secured significant demand for the plant, including a take-or-pay contract with PTTMCC Biochem, a joint venture between Mitsubishi Chemical of Japan and PTT PCL of Thailand, which guarantees the sale of approximately 20% of total plant capacity. In addition, BioAmber has signed 19 supply and distribution agreements and 8 memorandum of understanding, which collectively represent demand that exceeds the plant's annual capacity.
Mike Hartmann, Exec VP of BioAmber, thanked SDTC for the additional Sarnia plant funding. "Commercializing an innovative, clean technology that is cost disruptive to the petrochemical industry is a major undertaking, and it needs government support to become a reality. We are making chemicals cleaner and cheaper than the petrochemical route, and this will translate into lasting environmental and economic benefits for Canada".
About BioAmber
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. For more information visit www.bio-amber.com
About SDTC
On behalf of the Government of Canada, Sustainable Development Technology Canada helps move Canadian clean technologies forward, readying them for growth and export markets. With a portfolio of companies under management valued at more than $2.5 billion, SDTC is demonstrating that cleantech is a driver of jobs, productivity and economic prosperity. SDTC works with the private sector and all levels of government to meet the Government of Canada's commitment to create a healthy environment and a high quality of life for all Canadians. SDTC operates as a not-for-profit corporation.
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to the cost and completion of our planned facility under construction in Sarnia and future sales of succinic acid. All statements other than statements of historical fact contained in this press release are forward-looking statements. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond BioAmber's control. BioAmber's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in BioAmber's most recent registration statement on Form S-1 filed with the Securities and Exchange Commission, as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the Company's limited operating history, the inability of the Company to execute on its manufacturing expansion strategy, including the construction of our planned facility in Sarnia, Ontario, the inability of the Company to comply with milestone covenants contained in certain of its agreements, the Company's limited sales of bio-succinic acid to date, the Company's inability to obtain additional financing, the Company's inability to leverage its bio-succinic acid technology to develop and commercialize derivatives of bio-succinic acid and other bio-based building block chemicals, and a decrease in demand for bio-succinic acid, bio-based 1,4 BDO and other bio-succinic acid derivatives. 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.
SOURCE BioAmber Inc.
Share this article