BioAmber signs five-year agreement with Xuchuan for bio-based succinic acid -- K Trade Fair


BioAmber signs five-year agreement with Xuchuan for bio-based succinic acid

Xuchuan produces polyester polyols at four plants in China and has a production capacity of 150,000 t/y. Polyester polyols, in addition to adipic acid, are used to produce cast polyurethane elastomers (CPU). Xuchuan intends to replace adipic acid with bio-succinic acid, to produce CPUs offering enhanced properties such as abrasion and solvent resistance. BioAmber intends to initially produce volumes of between 300 t to 500 t of bio-based succinic acid per year, but this could increase to several thousand tonnes per year as Xuchuan broadens its line of bio-succinic acid-based polyester polyols to additional applications. This new agreement follows the recent announcements that BioAmber has secured its first take-or-pay commercial contract with PTTMCC, as well as a 15-year take-or-pay agreement for bio-based 1,4-butanediol (BDO) with Vinmar International. According to BioAmber, it is crucial to create strategic partnerships within the space, as the succinic acid market is still small, and producers need to secure customers to create demand. One potential market of bio-based succinic acid is the replacement of other chemicals such as adipic acid. This will give BioAmber broader options strategically to establish itself as a leader within the bio-based succinic acid space, as the company and its competitors scale production capacity. Going forward, BioAmber says it must align customers to compete in the bio-based succinic acid space that is working hard to find markets. Indeed, Myriant, Succinity, and Reverdia are all establishing downstream relationships to convert succinic acid into polybutylene succinate (PBS) and BDO, or like BioAmber, replacing adipic acid and other chemicals. As the bio-succinic acid market continues to grow, clients should consider downstream partnerships and integration, and engage with BioAmber and its competitors for potential supply agreements.