Bio-Succinic Acid
We chose to develop bio-succinic acid as our first product because it is a platform
chemical that can be used in a broad range of markets, from high value niche
applications such as personal care products and food additives, to large volume
applications such as bioplastics, plasticizers, polyurethanes, resins and coatings.
Bio-succinic acid is also unique in terms of the limited quantity of sugar that
is needed for its production. In 2004, the DOE published a report on “Top
Value-Added Chemicals from Biomass”, identifying the top opportunities
for the production of chemicals from biomass. The study prioritized twelve chemicals,
from a group of over 300 possible building blocks that could be most effectively
manufactured from sugars. Bio-succinic acid was recognized as one of the renewable
building block chemicals with the greatest technical feasibility and commercial
potential.
We have identified four main market opportunities for our bio-succinic acid
platform:
Replacing petroleum-based succinic acid in applications where it is currently
in use, such as food additives and fine chemicals.
Replacing other petroleum-based organic acids, such as adipic acid in polyurethanes
and plasticizers, or isophthalic acid in PET resins and unsaturated polyester
resins.
Expanding into new uses for succinic acid, such as phthalate-free plasticizers,
silicone replacements and bioplastics such as PBS.
Converting bio-succinic acid into BDO and THF, which are large volume, existing
markets readily accessible to our “drop-in” bio-based alternatives.
Historically, the high cost of producing succinic acid from petroleum feedstock
limited its use to a narrow range of specialty applications such as pharmaceuticals
and food ingredients. A study published in August 2012 by Roland Berger estimated
the market for petroleum-based succinic acid at approximately 51,000 MT per
year. Roland Berger projected that the succinic acid market will grow at a compounded
annual growth rate of between 25% and 30% through 2020.
We are currently marketing our bio-succinic acid in several markets, using technical
data to demonstrate value in use:
Polyurethanes. Adipic acid is currently used in polyester polyols, which are
used to make polyurethanes. Polyurethanes are used in, among other things, soles
for footwear, molded foams for automotive applications like car seats and arm
rests, artificial leathers and non-foam applications such as coatings, adhesives
and sealants. Bio-succinic acid can be used to replace adipic acid in some segments
of this market, and it is currently the only renewable alternative to adipic
acid for the production of polyurethanes. Suppliers of polyester polyols are
actively looking for bio-based, cost-effective substitutes for adipic acid to
improve the environmental profile, derive differentiated performance attributes,
or reduce the cost of their products.
Resins and Coatings. Bio-succinic acid can be used to replace other organic
acids in polyester coating resins, unsaturated polyester resins, or UPR, and
polyester polyols used in urethane surface coatings. Bio-succinic acid can offer
differentiated performance in some applications, as well as environmental advantages
and cost-effectiveness.
Food Additives. Succinic acid is currently used for its multiple functions in
food applications; as an acidulant, to increase the tartness or acidity of food,
as a pH regulator for food ingredients, and as a flavoring agent. The unique
‘umami’ flavor of succinic acid gives a salty, soy-like taste to
food and is used in the production of soy sauce, miso, sake and synthetic liquors
in Asia. Outside of Asia, succinic acid is used in the baking industry. Succinic
acid can also be used to replace malic acid, which provides a bitter salty taste
similar to succinic acid, and adipic acid that is used as a flavor in fruit
drinks and as a gelling aid for gelatin desserts.
Lubricants and Corrosion Inhibitors. Adipate esters are widely used in the lubricants
market as base oils or as additives to form industrial lubricants and metal-working
fluids. Bio-succinic acid is capable of replacing adipate esters and producing
sustainable succinate esters that meet the demand for more environmentally friendly,
non-toxic lubricants. Our bio-succinate esters also perform well in terms of
improved flowability in cold temperatures and better prevention of oxidation,
rust and corrosion.
Fine Chemicals. Succinic acid is used today in a variety of high value added
applications including dyes, inks and toners. Succinic acid is also used in
pharmaceutical applications. Derivatives of succinic acid such as succinimides
can provide multiple functions in pharma applications, such as a pH buffer,
an antibacterial or chelating agent, a coatings/sizing agent, or as a stabilizer
for other ingredients.
De-icing Solutions. Chlorides are the most commonly used de-icer for roadways.
Potassium salts are typical non-chloride de-icers used for roadways as well
as airport runways and other surfaces. We have developed a patented bio-succinic
acid-based de-icer formulation for use on airport runways. Our bio-based product
is significantly less corrosive than potassium acetate and potassium formate.
Bio-succinic acid based products can also be used as wetting agents for chlorides
in the larger roadway market, which can in turn reduce the corrosiveness of
the chlorides applied to surfaces.
Personal Care Products. Our focus in the personal care market has been the use
of esters of bio-succinic acid as natural emollients and surfactants. Emollients
are used in lotions, liquid soaps and cleansers to improve and moisturize skin,
while surfactants are used in soaps, body washes and shampoos to allow easier
spreading. We believe there is a significant opportunity for bio-based alternatives
as consumers are increasingly demanding renewable products and ingredients in
the personal care products they use including the replacement of silicone based
ingredients in shampoos and other products.
Co-monomer in PET resins. Isophthalic acid is used as a co-monomer in the production
of PET resin, which is then used to produce carbonated soft drink and water
bottles, and various packaging. Isophthalic acid is added to PET resin to improve
crystallinity (approximately 3% by weight). Bio-succinic acid has been shown
to provide the same benefits as isophthalic acid, without negatively impacting
the PET resin, while offering a significant cost savings and greater renewable
content.
Polybutylene Succinate (PBS). PBS is a biodegradable polymer made by reacting
succinic acid with BDO. The market for this biopolymer is currently limited
by capacity and price, and the fact that it has traditionally been made with
petroleum-derived succinic acid and BDO. Applications range from single use
in food service ware, including cutlery, cups and lids, agricultural mulching
film and compostable bags. Our bio-succinic acid enables PBS to be lower cost
and partially renewable, and upon commercialization, we expect our BDO will
enable PBS to be 100% bio-based.
Plasticizers. Plasticizers are organic esters that are primarily used to render
polyvinyl chloride, or PVC, more flexible. PVC is widely used in multiple end-markets
because it is low cost, durable and versatile. Bio-succinic acid esters can
serve as replacements for the major phthalate-based plasticizers, which account
for over 80% of the worldwide plasticizer market. There is increasing demand
for renewable, phthalate-free plasticizers, particularly in sensitive applications
such as children’s toys and childcare articles. We entered into a joint
development agreement with Lanxess, a global leader in phthalate-free plasticizers,
to develop a portfolio of bio-succinic-based phthalate-free plasticizers that
can exceed the performance of general purpose plasticizers at competitive prices.
Lanxess has begun to market a range of succinic acid based plasticizers, under
the Uniplex brand.
We estimate the global addressable market for these various uses of bio-succinic
acid is in excess of $2 billion.
Bio-based 1,4 Butanediol (BDO)
Succinic acid can be used to produce BDO. The major uses of BDO are in the production
of polyurethanes and PBT. PBT is an engineering-grade thermoplastic that combines
excellent mechanical and electrical properties with robust chemical resistance.
The automotive and electronics industries heavily rely on PBT to produce connectors,
insulators, wheel covers, gearshift knobs and reinforcing beams. We believe
there is growing interest in the automotive industry to produce PBT and blends
that are partially bio-based to enable automobile manufacturers to meet their
sustainability goals. Based on information obtained from ICIS Chemical Business
Magazine (August 27 – September 9, 2012), the global BDO market is estimated
to be approximately $4 billion.
Tetrahydrofuran (THF)
Succinic acid can also be used to produce THF. THF is used to produce spandex
fibers and other performance polymers, resins, solvents and printing inks for
plastics. There is also growing demand in the apparel industry for renewable,
bio-based spandex. Based on information obtained from CEH Marketing Research
Reports on Tetrahydrofuran published in October 2010 and March 2013, respectively,
we estimate the global THF market to be approximately $2 billion.