Proprietary Technology Platform that Addresses a Large Market Opportunity
BioAmber owns or have exclusive rights to specific microorganisms, chemical catalysis technology and a unique, scalable and flexible purification process that, when combined and optimized, convert renewable feedstocks into chemically identical replacements for petroleum-derived equivalents. The company believes that its bio-based chemicals can serve as “drop in” replacements for existing petroleum-based chemicals, addressing what BioAmber estimates to be a more than $30 billion market opportunity.
Selling Commercial Product Today
BioAmber has sold bio-succinic acid to customers in connection with its product and market development efforts, having met their quality, performance and cost requirements. BioAmber believes it was the first company to sell bio-succinic acid products in commercial quantities.
Proven Cost-Competitive Economics at Large Scale
BioAmber’s experience operating a large scale facility in Pomacle, France since January 2010 with a 350,000 liter commercial scale fermenter has helped the company refine its process and cost-competitively make bio-succinic acid without subsidies. BioAmber expects to produce bio-succinic acid at its planned facility in Sarnia, Ontario that is cost-competitive with succinic acid produced from oil priced as low as $35 per barrel.
Limited Exposure to the Availability and Price of Sugar
BioAmber’s process requires less sugar than most other renewable products because 25% of the carbon in its biosuccinic acid originates from carbon dioxide. This makes its process less vulnerable to sugar price increases relative to other bio-based processes. In addition, BioAmber’s projected demand for sugar is a small fraction of the existing capacity in the markets in which it plans to operate. Given BioAmber’s modest demand, rapid growth in its production capacity would not likely have a material impact on the price of sugar in any of its markets.
Established, Diverse Customer Base
BioAmber’s industry leadership, product quality and economics are validated by the contracts it has signed with customers in a variety of end-markets. These close relationships provide BioAmber with a continuous feedback mechanism that helps it deliver products that best meet its customers’ needs.
Global Manufacturing Expansion Plan
BioAmber has signed an agreement with Mitsui to jointly build a facility in Sarnia, Ontario, that will have a projected initial capacity of 30,000 metric tons of bio-succinic acid and could be subsequently be expanded to produce another 20,000 metric tons of bio-succinic acid. The agreement with Mitsui also contemplates the construction and operation of two additional facilities.
Experienced Management Team with Strong Track Record
BioAmber’s management team consists of experienced professionals, possessing on average over 25 years of relevant experience in scaling up, manufacturing and commercializing chemicals, gained at both large companies and entrepreneurial start-ups. Members of our management team have worked at companies including Cargill, DuPont, INVISTA, Dow Corning, Royal DSM N.V., Sanofi and the Genencor division of Danisco A/S.