Canadian chemicals are raking it in.
BioAmber Inc. (NYSE: BIOA), a company creating sustainable chemicals, announced its subsidiary company, BioAmber Sarnia Inc., secured a CAD$20 million commercial loan for the world’s largest bio-based succinic acid production facility.
The plant will convert Canadian agricultural products into bio-based succinic acid, which is a chemical used in a wide variety of everyday products such as car interiors, plastics, resins, food additives and personal care products. (If you’re wondering about the food additives part, it actually occurs naturally in broccoli, beets, rhubarb, asparagus, cheese and more.) The loan comes from a financial consortium led by Canada’s export credit agency Export Development Canada, and include Farm Credit Canada and Comerica Bank.
These funds may be big, but they’re not BioAmber’s biggest, or first. Just in February of 2014, BioAmber announced $10 million in debt financing for the succinic acid plant.
“This is a great example of how government can support Canadian farmers, create jobs and reinvigorate the manufacturing sector, while also making a meaningful contribution to climate change,” said Jean-Francois Huc, BioAmber’s Chief Executive Officer, of the last loan.
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BioAmber projects that the Ontario-based plant will be completed in early 2015, and that over 90 percent of the plant’s 30,000 MT annual capacity will be exported.
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FEATURED PHOTO: kuhnmi/Flickr