The annual production of 50,000 tons of biobutyric acid project will start construction

Project overview

Project location: Tianyi Town, Ningcheng County, Chifeng City

Project investment: about 850 million yuan

Planned construction period: 2022/11 to 2025/04

Construction scale and content: This project adopts the model of acquisition of assets, equipment and plant recovery, reform the expansion of the original 300000 tons of corn deep processing projects, new bio-based succinic acid and its salt plant, install air system equipment, succinic acid fermentation system, extraction equipment, starch sugar, by-products processing equipment, digital control systems, wastewater, exhaust gas treatment facilities and other advanced equipment. Annual processing of 600,000 tons of corn, using synthetic biotechnology to produce succinic acid from bio-based raw materials, eventually forming an annual output of 340,000 tons of bio-based product raw materials (180,000 tons of starch, 160,000 tons of glucose), 180,000 tons of by-products, 50,000 tons of bio-based succinic acid and its salt.

"Production of Succinic Acid by Fermentation"

On September 12, 2022, Huaheng Biotechnology announced that it planned to sign a "Technology License Contract" with Hangzhou Ouhe Biotechnology Co., LTD., and obtain the relevant technology authorization of "fermentation production of succinic acid".

At present, several domestic enterprises are engaged in the production and sales of succinic acid, and most of them use petroleum-based processes to produce succinic acid such as electrolysis or hydrogenation. Biological fermentation process is preferred by downstream customers compared to petrochemical path due to its green and renewable raw materials and green manufacturing process.

The demand for succinic acid will reach 200,000 tons in 2025

In 2021, the domestic demand for succinic acid is about 30,000-50,000 tons, which is mainly used in degradable plastic PBS, food, medicine and agriculture industries, of which PBS for degradable plastic accounts for more than 50%. With the strict national environmental protection policy and the strengthening of the use of non-degradable plastics, domestic degradable plastics are witnessing explosive growth. The investment and expansion of biodegradable plastic PBS will drive the rapid growth of demand for succinic acid, especially for biofermentation succinic acid. It is expected that the domestic demand for succinic acid will exceed 200,000 tons in 2025.

The hang seng China things

Chifeng Huaheng Synthetic Biotechnology Co., Ltd. was established in September 2022 as a subsidiary of Anhui Huaheng Biological Technology Co., LTD. As one of the world's leading enterprises in the large-scale production of small varieties of amino acid products through biological manufacturing, Huaheng Bio-Products achieved revenue of 629 million yuan in the first half of 2022, an increase of 65.66% year-on-year; Net profit was 129 million yuan, up 107.6% year on year.