World´s First DDDA-Plant Verdezyne to Build Bio-Based Dodecanedioic Acid Plant in Malaysia

Verdezyne has reached an agreement with Bio-Xcell Malaysia to construct Verdezyne’s first commercial-scale renewable chemicals manufacturing facility in Bio-Xcell’s premier biotechnology and ecosystem park in Nusajaya, Iskandar, in southern Malaysia. It will be the world´s first bio-based plant for the production of Dodecanedioic Acid (DDDA).

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The privately-held industrial biotechnology company Verdezyne is focused on producing renewable chemicals and will build and operate the DDDA-plant in Malaysia.
The privately-held industrial biotechnology company Verdezyne is focused on producing renewable chemicals and will build and operate the DDDA-plant in Malaysia.
(Picture: PROCESS)

Carlsbad/USA, Kuala Lumpur/Malaysia – With construction scheduled to commence in 2015, the plant will be capable of producing approximately 30 million pounds per year of diacids, including dodecanedioic acid (DDDA). The exchange of agreement ceremony took place during the official opening ceremony of “Bio Malaysia: Bioeconomy Asia Pacific 2014 Conference & Exhibition”, and was attended by Malaysian Prime Minister Najib Razak.

“This agreement is part of our comprehensive strategy of expansion into Asia, and represents a huge step toward our goal of replacing petroleum-derived chemicals with renewable drop-in replacements,” commented E. William Radany, Ph.D., President and CEO of Verdezyne. “We are thrilled, and are eagerly anticipating breaking ground in the near future on this major new manufacturing plant for the production of renewable diacids.”

What does the multi-faceted agreement includes

  • Leasing a 6.9-acre site owned by Bio-Xcell in Malaysia’s premier biotechnology park located in Nusajaya, Iskandar, Malaysia, 30 minutes north of Singapore. The 13-year, renewable lease provides for expansion options on other adjacent lots, and all major utilities will be supplied by Bio-Xcell.
  • A loan of approximately 75 Million Dollar (approximately RM 250 Million) from Bio-Xcell.

“We are happy to welcome Verdezyne to the Park. The investments related to building Verdezyne's new factory here will bring the total investment into Bio-XCell to 250 million Malaysian Ringgit, and with a couple more companies in the pipeline, we expect to have secured 1.86 billion Ringgit [approximately 555 Million Dollar] in investment by year-end,” said Rizatuddin Ramli, Chief Executive Officer of Bio-Xcell Malaysia.

“To review, in June of last year we reached a collaboration agreement with Malaysian Biotechnology Corporation, and in September of last year we were awarded Bionexus Status by the Malaysian government. In April of this year we secured 30 Million Dollar in financing from Malaysian conglomerate Sime Darby, and our signing ceremony was attended by none other than President Barack Obama. As rewarding as our projects in Malaysia have been thus far, though, we feel that the best is yet to come,” added Radany.

The manufacturing facility will leverage Verdezyne’s yeast fermentation technology with the abundant supplies of non-food, plant-based feedstocks in Malaysia to produce a variety of commercial diacids, including DDDA. These diacids may in turn be used to produce nylon or other polymers for use in a variety of applications including: engineering resins, automotive parts, athletic apparel, carpeting and toothbrush bristles, at lower cost than traditional, petroleum-derived nylons.