DSM, Roquette Sign Bio-Based Succinic Acid Joint Venture

HEERLEN, The NetherlandsRoyal DSM N.V. and Roquette Frères have signed a joint venture agreement for the production, commercialization and market development of bio-based succinic acid, subject to regulatory approvals and notifications. DSM and Roquette will each have a 50-percent stake in the new entity, Reverdia V.o.f., which will be headquartered in the Netherlands.

The formation of the joint venture is a new step following the successful cooperation between DSM and Roquette pursuant to a joint development agreement (JDA). Since early 2008 the two companies have been working together to develop the best and most sustainable fermentative technology to produce bio-based succinic acid. The first testing volumes of this renewable and versatile chemical building blockused in the manufacture of polymers, resins and many other productshave already been produced in a demonstration plant in Lestrem, France, that was built in 2009.

DSM and Roquette believe that fermentation based succinic acid will be able to replace existing fossil based succinic acid as well as open new applications, while at the same time delivering a better environmental performance. This innovative technology to produce bio-based succinic acid from starch is unique in the world. This new production route delivers a reduction in greenhouse gas emissions, as it sequesters carbon dioxide (CO2), and the proprietary process does not produce any salts as waste. Bio-based succinic acid will enable customers to produce products with substantially lower environmental footprints.

Many companies already have sampled and tested bio-based succinic acid from the demonstration plant of Roquette produced pursuant to the JDA and intend to take shipments from the joint venture upon its formation. The joint venture between DSM and Roquette, which is subject to regulatory and other customary approvals and notifications, plans to focus on applications such as 1,4 butanediol (BDO), polyurethane resins, and biopolymers such as polybutylene succinate (PBS) into applications among others in paints and coatings, automotive and textiles.

DSM and Roquette will be marketing bio-based succinic acid via the joint venture Reverdia and also are working together to further expand their joint capacity.