Page 57 - Plastics News January 2017
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BioAmber & CJCJ in JV for bio-succinic acid production in Asia
BioAmber has signed a non-binding letter of intent Sarnia plant and building a second plant in North America,
with South Korean-based CJ CheilJedang Corporation this JV is an opportunity for BioAmber to accelerate the
("CJCJ"). Under the terms of the agreement, BioAmber deployment of its bio-succinic acid technology on a global
and CJCJ plan to establish a 35:65 joint venture in China scale without capital investment," stated Jean-Francois
to produce up to 36,000 metric tons of bio-succinic acid Huc, BioAmber's CEO.
annually and commercialize the output in Asia. The goal
is to competitively produce bio-succinic acid in China Engineers India to set up 1 mln
tpa petrochemical complex
near Kakinada port
Engineers India (EIL) will set up a 1 mln tpa
and quickly penetrate the world's largest succinic acid petrochemical complex near the Kakinada port
market. The JV would pay BioAmber a technology royalty in Andhra Pradesh.
for having access to BioAmber's proven bio-succinic acid “The detailed project
technology, and would pay CJCJ a tolling fee for producing plan for the same is
bio-succinic acid on behalf of the JV. Both partners to be ready by March
would be entitled to a share of the profits equal to their 2017. The 1 mtpa
respective equity ownership positions. The proposed ethylene derivatives
joint venture is subject to certain conditions, including petrochemical plant
technical and commercial due diligence, with the is going to make niche
definitive agreements expected to be signed by July 2017. plastic products,” a
As part of the letter of intent, BioAmber will be selling top EIL official told.
CJCJ bio-succinic acid manufactured at its Sarnia, Ontario Currently the petrochemical plant is a 50:50 joint
plant, so that CJCJ can undertake market development venture project between HPCL and GAIL. They may
in China and South Korea in the first half of 2017. induct another strategic partner, HPCL Chairman, M
K Surana had told reporters in August. Accoding to
According to understandings CJCJ would incur all capital reports The project investment would be around Rs
costs required to retrofit their fermentation facility, 30,000 crore and EIL is seeking a long-term contract
including the capital needed during plant commissioning for feedstock supply to be in place before the project
and startup, and production would begin in Q1 2018. If actually takes off. While land is yet to be acquired
market demand were to subsequently exceed production for the petrochemical complex, the project has been
capacity, the joint venture could expand production in the offing for long. The oil ministry is in the final
through debottlenecking and/or additional investment. stages of approving the conglomerate that will fund
The partners would also have a mutual right-of-first- and operate the plant. It will most likely be comprised
refusal to retrofit additional CJCJ fermentation facilities of domestic players. Engineers India is a total
globally. "While we remain focused on ramping up our solutions consultancy company and EPC contractor
in petroleum refining, petrochemicals, pipelines, oil
and gas terminals and storages, fertilizers, mining &
metallurgy and infrastructure projects. The company
is also diversifying into water and waste management
and has made inroads into nuclear, solar and thermal
power sectors.
57 • January 2017 • Plastics News
