By Paul Morden, From www.theobserver.ca The Observer
Sarnia-Lambton’s efforts to provide a home for the emerging bio-industry is beginning to show results, say officials.
After a century or more of turning oil into fuel, plastic and chemicals, Sarnia-Lambton began nearly a decade ago to pursue the emerging chemical sector that uses plants and other bio-mass as its starting point.
“I think we’re making good progress,” said George Mallay, general manager of the Sarnia-Lambton Economic Partnership.
“These things, unfortunately, don’t happen as fast as you want them to happen.”
Mallay was talking to municipal politicians in Sarnia-Lambton as early as 2004 about the need for a bio-technology strategy to help attract jobs.
Since then, the community turned the former Dow Chemical offices into a research park and attracted funding for the Sustainable Chemistry Alliance and Bioindustrial Innovation Centre to set up shop to help bio-companies move their technology to commercial production.
Recently, Woodland Biofuels and KmX Corporation set up pilot plants at the research park, plus BioAmber is beginning work on an $80-million bio-succinic acid plant at the Lanxess site in Sarnia. It’s expected to create 40 permanent jobs.
Over the years, Suncor also built an ethanol plant in St. Clair Township and Solutions4CO2, a Canadian bio-tech company, decided to open a research and development facility at Trans-Alta’s Bluewater Energy Park in Sarnia.
“Everything’s looking pretty good,” said Murray McLaughlin, CEO of the Sustainable Chemical Alliance.
He said BioAmber’s decision to build in Sarnia has raised the community’s profile with bio-industry companies.
“We’re getting much more interest from companies these days, and more calls coming in,” McLaughlin said.
“Between now and spring, I’m hoping that we’ll, maybe, be at the stage of another announcement.”
McLaughlin said they’re also talking with companies interested in setting up pilot plants at the research park, where there’s room for at least one more.
Mallay said they have been working to create a “bio-hybrid chemistry complex” in Sarnia-Lambton with traditional crude oil, low-cost shale gas and new bio-industries.
Added to that is opening up more opportunities for the engineering, metal shops and other support companies that have grown up around Chemical Valley and are now gaining experience servicing bio-industries.
“We actually have more opportunities for diversity than we’re ever had,” Mallay said.
There have been challenges, include the difficulty companies face raising capital in the fallout from the recession, as well as changes in oil and gas drilling technology that have opened up new supplies in North America.
While natural gas is currently plentiful and cheap, oil prices remain high enough that the bio-industry is still competitive, McLaughlin said.
“Another thing we’re seeing now is that there’s a much higher interest from the consumer to have green products, as long as the price is right.”
That, he added, will continued moving the bio-based industry forward.
Because of that momentum, McLaughlin said he expects to see to see more partnerships develop between petroleum and bio-based companies in the next four or five years.
“I just feel that we’re in a nice spot in this industry,” he said.
“We’re in early days but there’s definite growth opportunities.”
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