Off-take supply agreements seem to be the trend these days in the renewable chemical markets, first with BioAmber and Vinmar, and now with this recent news from industrial biotech company, Verdezyne.
Verdezyne announced that it has signed an agreement with Will & Co, a sales and marketing firm for raw materials, semi-finished products, additives, and pigments, for distribution of its first commercial product, BIOLON™ DDDA (biobased dodecanedioic acid or “DC12”), in Europe.
BIOLON™ DDDA will be produced at Verdezyne’s commercial-scale plant in Malaysia. The agreement secures off-take for over 25% of the expected plant capacity of over 10 ktpa of diacids including DDDA. Verdezyne’s BIOLON™ DDDA is reportedly produced more sustainably than traditional petroleum-derived intermediate chemicals and will be used to make engineering polymer resins, automotive parts, toothbrush bristles, cosmetics, fragrances, and more.
Verdezyne’s plant, expected to open in 2017, will utilize Malaysia’s diverse and abundant base of plant-derived feedstocks. Will & Co. noted its customers’ request for alternative to petroleum-derived chemicals, and Verdezyne’s BIOLON™ DDDA will reportedly fits the bill. Will & Co. hopes to expand its product portfolio with biobased products and the Verdezyne deal is the first step.
I will revisit the DDDA market including pricing and growth trends on this month’s Tecnon OrbiChem Bio-materials newsletter.
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