Friday, February 5, 2016

Projected Bio-Succinic Acid Markets Greatly Exceed Current Bio-Succinic Acid Production Capacity

An Internet search found commercially available bio-succinic acid production capacities.  The capacities found are shown in the following table:

2015 capacity in metric tons

No other companies that produce commercially-available bio-succinic acid could be found by the search.  The total capacity of these four companies (63,600 metric tons (mt)) is interesting in that the amount is substantially less than what market studies suggest will be needed in coming years.  For example, market study data found on the Internet provide estimates for bio-succinic acid demand in 2020 in the 600,000 mt to 700,000 mt range.  To meet this demand, the current capacity (63,600 mt) would have to increase in the 40% to 50% per year range.  This suggests that the four companies in the table above, and possibly other companies, will have to add significant capacity to meet the market studies' estimated needs.

Important reasons for the huge increased demand for bio-succinic acid apparently are that: first, succinic acid is used in making polybutylene succinate (PBS), a biodegradable plastic that can be used to make shopping and other bags; second, using a bio source, such as sugar, to make succinic acid (bio succinic acid) is easier than using fossil fuel sources; and, third, using a bio source versus a fossil fuel source has a significant carbon footprint reduction.

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