By Paul Morden, from www.theobserver.ca The Observer
As Montreal-based BioAmber continues construction of a $125-million plant in Sarnia-Lambton, the community is among sites being considered for a second manufacturing facility that the company wants to commission in 2017.
Bio-Amber said this week it has signed a long-term deal that will see Houston-based Vinmar International buy bio-based butanediol (BDO) manufactured at a proposed 100,000-ton-a-year capacity plant. Vinmar also plans to invest in the plant, alongside BioAmber.
Sarnia-Lambton is “definitely” in the running for the BDO facility, said BioAmber CEO Jean-Francois Huc.
“We have not finalized the site-selection process, by any means,” he added.
“We probably won’t make a final decision until next year.”
Huc said sites in both the U.S. and Canada are being considered, and the contract with Vinmar is expected to help secure project financing.
“Vinmar has a proven track record of selling large volumes of BDO, has global logistics expertise and vast experience executing large chemical projects,” said Fabrice Orecchioni, BioAmber’s chief operations officer.
Work began in 2013 on a bio-succinic acid plant BioAmber is building on Vidal street in Sarnia. The company plans to create 60 permanent jobs there using sugar from corn to produce bio-succinic acid for use in manufacturing products ranging from automotive parts to cosmetics.
“Things are advancing well in Sarnia,” Huc said.
“Right now our core push is still on getting Sarnia completed by the end of the year, and getting product shipped out of that plant.”
BioAmber produces BDO by combining its succinic acid technology with a catalyst technology licensed from DuPont. The company says its bio-based BDO is cost competitive with BDO made from petroleum for use as a building block chemical in a wide range of products, including polyurethanes, biodegradable plastics and spandex.
The 100,000-ton BDO plant is expected to cost between $330 million and $350 million to build, Huc said.
“There are a lot of reasons to set up in Sarnia, so they are definitely in the running,” he said.
“We want to have a site selected and we want to have financing in place in 2015.”
Sarnia Mayor Mike Bradley, chairperson of the Sarnia-Lambton Economic Partnership, said it will be following up with BioAmber about the possibility of a second plant.
“They are the best ambassadors you could come up with,” Bradley said about the way Montreal company’s officials talk about Sarnia-Lambton.
“They are just so high on the site, the workforce, the cooperation, and all those things,” he said.
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