BioAmber inks bio-succinic acid supply pact with Oleon

BioAmber Inc, the US-based industrial biotechnology company producing sustainable chemicals, has signed an exclusive supply agreement for bio-based succinic acid with Oleon.  Under the terms of the 5-year contract, which runs from 2014 to the end of 2018, BioAmber Sarnia, a joint venture with Mitsui & Co, will supply Oleon with bio-based succinic acid for the development and production of succinate lubricants. According to BioAmber, the addressable market for succinic acid in specialty lubricants is estimated to be $ 100 million.
 
Oleon, a division of Sofiproteol, is a leading European producer of oleochemicals (oil derived chemicals). Oleon, which is developing a new line of succinic acid based lubricants that target 100% carbon renewability, is combining bio-succinic acid and (bio-based) alcohols to produce a new line of lubricants for industrial uses requiring high performance, biodegradability and renewable content.
 
Oleon's new line of succinic acid based lubricants targets a strong performance in extreme conditions, including cold weather, where they offer improved temperature flowability without compromising seal compatibility. These Oleon lubricants also offer good physico-chemical properties including oxidation and hydrolytic stability, pour point and color. BioAmber will supply Oleon from its Sarnia plant, which is expected to be completed in early 2015 and have an initial capacity of 30,000 tons per year.
 
"Oleon's new line of lubricants is a great example of the value and differentiation that bio-based succinic acid can bring in technically challenging applications," said Jean-Francois Huc, BioAmber's Chief Executive Officer.
 
Moussa Naciri, Chief Executive Officer, Oleon, said, “This agreement highlights the importance of collaboration to accelerate innovation in the oleochemical industry. We believe that working with sustainable chemical companies such as BioAmber brings fresh ideas and new products offering unique combinations of performance and sustainability for our industry.”