DAILY NEWS Feb 22, 2014 11:53 AM - 0 comments

Bio-chemical maker gets $10 million gov't loan for Ontario plant

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2014-02-22

The federal government is lending $10 million to France-based sustainable chemicals firm BioAmber Inc. for the construction of a commercial-scale bio-based chemical plant in Ontario, said to be the first facility of its kind in Canada.

 

According to Agriculture and Agri-Food Canada, the agency is providing the interest-free loan to BioAmber Sarnia Inc. for the construction of a massive succinic acid plant in Sarnia, Ont.

 

The plant will have an annual production capacity of 30,000 tonnes when complete, according to the firm.

 

BioAmber Sarnia, a subsidiary of BioAmber Inc., has previously received $35 million in financing from government organizations including Sustainable Development Technology Canada (SDTC), the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) and the Ontario Ministry of Economic Development, Trade and Employment.

 

The loan from the federal agriculture ministry was provided through its AgriInnovation Program.

 

“We are very appreciative of the support that the AgriInnovation Program has provided to our Sarnia plant,” BioAmber CEO Jean-Francois Huc said in a release. “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.”

 

Produced using corn-derived feedstock, succinic acid is used to manufacture plastic resins, paints, pharmaceuticals, solvents, food additives, fabrics and cosmetics. The process replaces the conventional production method that uses petrochemicals and is carbon neutral.

 

The plant is expected to create 60 direct jobs when it’s fully operational.



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