Royal DSM N.V., a global Life Sciences and Materials Sciences company headquartered in the Netherlands, and Roquette Frères, a global starch and starch-derivatives company headquartered in France, signed a joint venture agreement for the production, commercialization and market development of bio-based succinic acid, subject to regulatory approvals and notifications.
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.
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 sustainable fermentative technology to produce bio-based succinic acid. The first testing volumes of this renewable and versatile chemical building block—used in the manufacture of polymers, resins and many other products—have already been produced in a demonstration plant in Lestrem (France) that was built in 2009.
The positive results from this cooperation have led to the establishment of the joint venture. DSM and Roquette will each have a 50% stake in the new entity, Reverdia V.o.f., which will be headquartered in the Netherlands.
DSM and Roquette will elaborate on a recent technical breakthrough and proprietary process for the manufacture of bio-based succinic acid that will contribute to overall superior economics and an improved environmental footprint at the 7th annual World Congress on Industrial Biotechnology, taking place this week in Washington DC.
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.