By Tyler Kula, www.theobserver.ca The Observer
A multi-million-dollar bioindustrial company is setting up shop in Sarnia.
Montreal-based BioAmber Inc. is building an $80-million first-of-its-kind biosuccinic acid plant on part of the existing Lanxess site by 2013.
The plant will produce bio-based succinic acid, derived from corn and used to match or better existing petrochemical products. They’re then used for plastics, fragrance and cosmetics, pharmaceuticals, polymers and non-corrosive de-icers.
Initial capacity at the Sarnia plant is pegged at 17,000 tonnes per year, with plans to double by 2014, industry and government officials said Monday at the University of Western Ontario Research Park in Sarnia.
Through its subsidiary Bluewater Chemicals, BioAmber will create, at minimum, 40 full-time jobs at the Sarnia plant, along with 150 construction jobs.
The company also plans to produce 1,4-Butanediol (BDO) on site.
“We’re delighted because we are here to create more jobs,” said Sandra Pupatello, Ontario’s minister of economic development and trade, announcing a $15 million loan to BioAmber on Monday.
It follows a $7.5 million federal government investment announced in July.
“This is a real collection of a whole bunch of hands in this pot to turn it and make it work,” Pupatello said. “And this is a perfect story.”
Sarnia was among more than 100 North American sites considered for the plant, said Mike Hartmann, BioAmber’s corporate affairs vice-president, noting the company already has a 3,000 tonne-capacity plant in France.
Sarnia was the top choice, he said, because of an abundance of corn; nearby facilities that make glucose; easy access to shipping channels; strong government support; nearby colleges and universities; a skilled work force; and existing infrastructure.
“Unfortunately, Sarnia has had some issues with plants closing, but for us it’s a great opportunity because it literally saves us millions of dollars in building boilers, waste water treatment, (and) having electricity,” Hartmann said.
BioAmber’s process is cheaper than conventional petroleum-based routes, he said. It’s renewable, sustainable and helps sequester CO2.
The deal is a step towards developing a bio and alternative fuel cluster in Sarnia-Lambton, said Sarnia Mayor Mike Bradley, noting the Bioindustrial Innovation Centre, the Sustainable Chemical Alliance, the Sarnia-Lambton Economic Partnership, the city, county and the private sector were all involved.
“We have several other companies we’re dealing with around the same site,” he said, noting Sarnia is developing a “buzz” in the renewable chemical field as a national leader.
Many Ontario jurisdictions have claimed titles as green energy hubs, Pupatello said, but Sarnia was there first.
“You are leaders in all of this, you are leading in the clean tech industries, you are leading in green energy jobs,” she said.
It also means a brand new market for Lambton County cash crop farmers, said Ontario Federation of Agriculture representative Don McCabe.
“At the end of the day I grow a crop that is looking for a home,” he said. “These guys are providing me a brand new one.”
Lambton County produces about 100,000 acres of corn each year, he said.
The BioAmber project includes a deal with local labour unions to ensure it will be built without a strike, said Bradley.
Permitting work began in June and groundbreaking is expected in October. The completion target is late 2012.
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