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BASF and CSM establish 50-50 joint venture for bio-based succinic acid

BASF and Purac, a subsidiary of CSM, are establishing a joint venture for the production and sale of bio-based succinic acid. The company will be named Succinity GmbH and will be operational in 2013. The establishment of Succinity GmbH is subject to filing with the relevant competition authorities. The company headquarters will be in Düsseldorf, Germany. (Earlier post.)

BASF and CSM have been conducting research on succinic acid under a joint development agreement since 2009. The complementary strengths in fermentation and downstream processing led to the development of a sustainable and highly efficient manufacturing process based on a proprietary microorganism. The bacterium used is Basfia succiniciproducens, which produces succinic acid through natural processes.

It is capable of metabolizing a variety of renewable feedstocks into succinic acid. The new process combines high efficiency with the use of renewable raw materials and the fixation of CO2 in the production of succinic acid. This makes bio-based succinic acid an economically and ecologically attractive alternative to petrochemical raw materials.

The demand for succinic acid is anticipated to grow strongly in the years ahead, driven mainly by bioplastics, chemical intermediates, solvents, polyurethanes and plasticizers.

BASF and CSM are currently modifying an existing fermentation facility at Purac’s Montmélo site near Barcelona, Spain, for the production of succinic acid. This plant, which will commence operations in late 2013 with an annual capacity of 10,000 metric tons of succinic acid, will put the new joint venture company in a leading position in the global marketplace. This is complemented by plans for a second large-scale facility with an annual capacity of 50,000 metric tons of succinic acid to enable the company to respond to the expected increase in demand. The final investment decision for this facility will be made following a successful market introduction.

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