According to the news published by “Plastics News Europe“: BASF SE is pulling out of a joint venture deal with Dutch biotechnology company Avantium to produce PEF-building block. FDCA. PEF is a 100% bio-based alternative for PET.
In an 18 December statement, Avantium said the German chemicals company has announced that it would exit from the Synvina joint venture, effective 15 January 2019.
The two companies revealed their dispute in October, stating that they disagreed on the timing for the fullfilment of the criteria to invest in the commercial-scale plant for FDCA (furandicarboxylic acid). FDCA is the main building block for the new bio-based polymer PEF (polyethylenefuranoate).
In its latest statement, Avantium said it ‘continued to disagree’ with BASF’s interpretation of the joint venture agreement. The two companies are currently discussing the terms and conditions of an exit.
The disagreement follows Avantium’s decision in January to extend the pilot phase of Synvia’s FDCA (furandicarboxylic acid) production by 24 to 36 months in order to “optimise” future commercial-scale production.
BASF asserts that fullfilment of the investment criteria for the reference plant should have been assessed in the fourth quarter of 2018, as originally envisaged in the joint venture agreement.
Avantium, however, disagrees with BASF’s interpretation of the joint venture agreement, saying it is convinced that the 2-3 year extension of the PEF pilot phase “logically necessitates a postponed final assessment”.
Upon BASF’s exit, Avantium will acquire the German company’s equity interest in the JV and Synvina will continue its operations as a fully Avantium-owned company. In addition, the YXY technology, know-how and people will revert to Avantium.
The Dutch company will pursue alternative routes for commercialising the technology.
Synvina was formed in 2016 to commercialise the YXY technology developed by Avantium. The YXY technology catalytically converts plant-based sugar into FDCA and plastics, such as the new polymer polyethylenefuranoate (PEF). The intent of the parties was to build the first commercial-scale plant for FDCA, the main building block for PEF, in Antwerp, Belgium.
“We remain fully confident in our YXY technology and the unique properties of PEF, confirmed by high market interest and existing Synvina partnerships,” said Tom van Aken, chief executive officer of Avantium.
The Avantium executive also said that his company was looking forward to building on the work undertaken within Synvina and “being free to pursue further options” to reach the full potential of PEF.
Please read more from the “SOURCE“, or from “Avantium“. Also search for “BASF” and “Synvina” at this news Channel.
Contributed by: Samaneh Marjani (The new PIMI Contributor)
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