The project with an annual output of 50,000 tons of bio-based succinic acid is about to start construction

Recently, the online approval office hall of investment projects in Inner Mongolia Autonomous Region issued a record
on the construction project of Chifeng Huaheng Synthetic Biotechnology Co.
, Ltd.
with an annual output of 50,000 tons of bio-based succinic acid and bio-based product raw material production base.

Project Overview

Project Location: Tianyi Town, Ningcheng County, Chifeng City

Project investment: about 850 million yuan

Planned construction start and end years: 2022/11 to 2025/04

Construction scale and content: The project adopts the acquisition of assets model, restores equipment and plant buildings, transforms and expands the original 300,000-ton corn deep processing project, builds a new bio-based succinic acid and its salt plant, and installs air system equipment, succinic acid fermentation system equipment, extraction equipment, starch sugar making equipment, by-product processing equipment, digital automatic control system, sewage tail gas treatment facilities and other advanced equipment
。 The annual processing of 600,000 tons of corn, the use of synthetic biotechnology to produce succinic acid from bio-based raw materials, and finally the 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 salts
.

"Production of succinic acid by fermentation"

On September 12, 2022, Huaheng Biotech announced that it intends to sign a "technology license contract" with Hangzhou Ouhe Biotechnology Co.
, Ltd.
to obtain the relevant technical authorization
of its "fermentation method for the 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
.
The biological fermentation process is more favored
by downstream customers than the petrochemical path due to its green and renewable raw materials and green manufacturing process.

In 2025, the demand for succinic acid will reach 200,000 tons

In 2021, the domestic demand for succinic acid will be about 30,000-50,000 tons, mainly used in degradable plastic PBS, food, medicine and agriculture industries, of which PBS for degradable plastics accounts for about
50%.
With the tightening of national environmental protection policies and the strengthening of restrictions on the use of non-degradable plastics, domestic degradable plastics are ushering in explosive growth
.
The investment and expansion of degradable plastic PBS will drive the rapid growth of demand for succinic acid, especially for bio-fermentation succinic acid, and it is expected that the domestic demand for succinic acid will exceed 200,000 tons
in 2025.

Huaheng Biotechnology

Chifeng Huaheng Synthetic Biotechnology Co.
, Ltd.
was established in September 2022 and is a subsidiary of
Anhui Huaheng Biotechnology Co.
, Ltd.
As one of the world's leading enterprises that produce small-variety amino acid products on a large scale through biomanufacturing, Huaheng Biotech achieved revenue of 629 million yuan in the first half of 2022, a year-on-year increase of 65.
66%; The net profit was 129 million yuan, a year-on-year increase of 107.
6%.