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62                       2  An Original Business Model: The Integrated Biorefinery


              This analysis demonstrates that the Bazancourt-Pomacle Biorefinery has at its
            disposal sufficient skills and know how to become a central player nationally, in
            Europe and globally in a context where markets for bio-based products are boom-
            ing. However, the platform still has recurring problems concerning the attractive-
            ness of the site (environment, fiscal and regulatory situation) to innovative firms.
            The recent example of BIOAMBER illustrates this perfectly.


            3.3    BIOAMBER: A Locally Unrecognised Success Story

            As early as 2002, ARD was declared by experts to have exceptional competence in
            the field of biotechnologies. The Scientific Council of the time recommended it to
            investigate succinic acid, a four-carbon molecule 52  that ferments anaerobically. 53
              Together with its American partner DNP Green Technology, ARD set up a joint
            venture in this area in 2008 (c.f. Fig. 2.24). BIOAMBER SAS, the result of this
            R&D partnership between the two shareholders, is the first company in the world to
            have developed commercially the technology to produce plant-sourced succinic
            acid. This technology, licenced with the American Department of Energy, is based
            on an E. coli bacterial strain and significantly reduces production costs. It opens up
            new markets that today are inaccessible for fossil-based succinic acid. 54
              In the context of its agreement with DNP, ARD industrialised its laboratory
            process and invested 21 million euros in an industrial demonstration unit,




                           The challenge:
                           Industrial-scale produc on of succinic acid.


                             The obstacle:
                             Financial barriers to entry (cost of patents)


                           The solu on:
                           Crea on of a joint venture


            Fig. 2.24 BIOAMBER: challenge, obstacle and solution




            52
             Four-carbon chemistry is extremely important.
            53
             As succinic acid provides four carbon atoms and glucose six, in theory with one glucose
            molecule and two CO 2 , we can produce two succinic acid molecules. This never works in practice,
            but the yield remains high. Carbon can be metabolised into succinic acid.
            54
             http://www.a-r-d.fr/ARD-filiales-et-partenaires-BIOAMBER-46.html
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