BASF to exit from Synvina

Bad news today as BASF notified Avantium of its exit from their Synvina joint venture effective 15 January 2019.

Avantium said it continues to disagree with BASF’s interpretation of the joint venture agreement. I am not sure what exactly they are disagreeing about (technology? timing? IPs? financing?) but as one startup CEO told me, having strategic investors sometimes require selling your soul. It is tragic as this could put a setback on the development and commercialization of the building block FDCA (furandicarboxylic acid) and PEF (polyethylene furanoate). However, DuPont Industrial Biosciences and Archer Daniels Midland are still working in this field so hopefully, Synvina can also soon get back on track with the right partner.

Anybody wants to start a bet on who will take a bite on Synvina?

Avantium and BASF are reportedly still discussing the terms and conditions of an exit. Upon an exit of BASF, Avantium will acquire BASF’s equity interest in the joint venture and Synvina will continue its operations as a fully Avantium-owned company. In addition, the YXY technology, know-how, and people will revert to Avantium. This will allow Avantium to pursue alternative routes
for commercializing the technology.

Synvina was formed in 2016 to commercialize the YXY technology developed by Avantium. The YXY technology catalytically converts plant-based sugar into FDCA and plastics, such as the new polymer PEF. The intent of the parties was to build the first commercial-scale plant for FDCA, the main building block for PEF, in Antwerp, Belgium.

“We remain fully confident in our YXY technology and the unique properties of PEF, confirmed by high market interest and existing Synvina partnerships. We look forward to building on the work undertaken within Synvina and being free to pursue further options to reach the full potential of PEF,” said Tom van Aken, Chief Executive Officer of Avantium.