IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v137y2021ics1364032120308716.html
   My bibliography  Save this article

Empirical analysis of large-scale bio-succinic acid commercialization from a technoeconomic and innovation value chain perspective: BioAmber biorefinery case study in Canada

Author

Listed:
  • Li, Xue
  • Mupondwa, Edmund

Abstract

Succinic acid from carbohydrates is increasingly being recognized as a renewable biochemical for deriving a wide range of sustainable value-added products. However, in spite of earlier efforts to commercialize bio-succinic acid on an industrial scale, the product's entry into the market has been severely constrained, leading to the demise of the business. This study evaluates the commercialization of bio-succinic acid from a technoeconomic and innovation value chain perspective, using BioAmber's carbohydrate-based succinic acid as a case study. A 30,000-tonne annum−1 bio-succinic acid production plant was designed and simulated using SuperPro® Designer. The estimated fixed capital cost of the Sarnia Plant was $147 million which was similar to BioAmber's expense but the calculated cost of succinic acid production was $2.23 kg−1 which was much higher than of BioAmber's original projection. The analysis revealed a number of factors that may have contributed to the demise of BioAmber Sarnia Plant. Lacking of cost competition and market demand, the Sarnia plant could not operate at full capacity and was unable to generate profit. The sensitivity analysis showed the derived coproducts such as 1,4-butanediol would not be profitable under current succinic acid prices. This study provides benchmarks for understanding risks in technology commercialization strategies and assisting in eliminating similar mistakes associated with the translation of a research invention into a successful commercial product.

Suggested Citation

  • Li, Xue & Mupondwa, Edmund, 2021. "Empirical analysis of large-scale bio-succinic acid commercialization from a technoeconomic and innovation value chain perspective: BioAmber biorefinery case study in Canada," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:rensus:v:137:y:2021:i:c:s1364032120308716
    DOI: 10.1016/j.rser.2020.110587
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032120308716
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2020.110587?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Auerswald, Philip E & Branscomb, Lewis M, 2003. "Valleys of Death and Darwinian Seas: Financing the Invention to Innovation Transition in the United States," The Journal of Technology Transfer, Springer, vol. 28(3-4), pages 227-239, August.
    2. Mupondwa, Edmund & Li, Xue & Tabil, Lope & Sokhansanj, Shahab & Adapa, Phani, 2017. "Status of Canada's lignocellulosic ethanol: Part I: Pretreatment technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 178-190.
    3. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    4. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    5. Mupondwa, Edmund & Li, Xue & Tabil, Lope & Sokhansanj, Shahab & Adapa, Phani, 2017. "Status of Canada's lignocellulosic ethanol: Part II: Hydrolysis and fermentation technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1535-1555.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Billette de Villemeur, Etienne & Ruble, Richard & Versaevel, Bruno, 2014. "Innovation and imitation incentives in dynamic duopoly," MPRA Paper 59453, University Library of Munich, Germany.
    2. Francesco Aiello & Graziella Bonanno & Stefania P. S. Rossi, 2020. "How firms finance innovation. Further empirics from European SMEs," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 689-714, November.
    3. Nykamp, Stefan & Andor, Mark & Hurink, Johann L., 2012. "‘Standard’ incentive regulation hinders the integration of renewable energy generation," Energy Policy, Elsevier, vol. 47(C), pages 222-237.
    4. Fabian Gaessler & Stefan Wagner, 2022. "Patents, Data Exclusivity, and the Development of New Drugs," The Review of Economics and Statistics, MIT Press, vol. 104(3), pages 571-586, May.
    5. Dirk Czarnitzki & Julie Delanote, 2015. "R&D policies for young SMEs: input and output effects," Small Business Economics, Springer, vol. 45(3), pages 465-485, October.
    6. Mendiburu, Andrés Z. & Lauermann, Carlos H. & Hayashi, Thamy C. & Mariños, Diego J. & Rodrigues da Costa, Roberto Berlini & Coronado, Christian J.R. & Roberts, Justo J. & de Carvalho, João A., 2022. "Ethanol as a renewable biofuel: Combustion characteristics and application in engines," Energy, Elsevier, vol. 257(C).
    7. Mihaela Diaconu, 2016. "Determinants of Financing Decisions in Innovative Firms: A Review on Theoretical Backgrounds and Empirical Evidence," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 198-203, February.
    8. Czarnitzki, Dirk & Lopes-Bento, Cindy, 2013. "Value for money? New microeconometric evidence on public R&D grants in Flanders," Research Policy, Elsevier, vol. 42(1), pages 76-89.
    9. Galai, Dan & Ilan, Yael, 1995. "Economic evaluation of remuneration from patents and technology transfers," International Review of Financial Analysis, Elsevier, vol. 4(2-3), pages 107-121.
    10. Laplane, Andrea & Mazzucato, Mariana, 2020. "Socializing the risks and rewards of public investments: Economic, policy, and legal issues," Research Policy, Elsevier, vol. 49(S).
    11. Nathan E. Wilson, 2021. "The Impact of Competition on Investment: Evidence From California Hospitals," Journal of Industrial Economics, Wiley Blackwell, vol. 69(1), pages 1-32, March.
    12. Dogan, Pinar & Bourreau, Marc & Manant, Matthieu, 2010. "A Critical Review of the “Ladder of Investment†Approach," Scholarly Articles 4777447, Harvard Kennedy School of Government.
    13. Panayotis Dessyllas & Alan Hughes, 2005. "The revealed preferences of high technology acquirers: an analysis of the characteristics of their targets," Working Papers wp306, Centre for Business Research, University of Cambridge.
    14. repec:eco:journ2:2017-04-17 is not listed on IDEAS
    15. Lin, Yongjia & Fu, Xiaoqing & Fu, Xiaolan, 2021. "Varieties in state capitalism and corporate innovation: Evidence from an emerging economy," Journal of Corporate Finance, Elsevier, vol. 67(C).
    16. Zheng, Ji-Lu & Zhu, Ya-Hong & Su, Hong-Yu & Sun, Guo-Tao & Kang, Fu-Ren & Zhu, Ming-Qiang, 2022. "Life cycle assessment and techno-economic analysis of fuel ethanol production via bio-oil fermentation based on a centralized-distribution model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    17. He, Yuqian & Tang, Song & Wang, Lanfang & Wang, Susheng & Yu, Tao, 2024. "Private equity market development, state ownership, and firm innovation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 958-985.
    18. Emmanuel Dechenaux & Brent Goldfarb & Scott Shane & Marie Thursby, 2008. "Appropriability and Commercialization: Evidence from MIT Inventions," Management Science, INFORMS, vol. 54(5), pages 893-906, May.
    19. Peter Mayerhofer & Michael Klien, 2016. "Unternehmensinvestitionen in den österreichischen Bundesländern. Entwicklung – Struktur – Funktion regionaler Förderung," WIFO Studies, WIFO, number 61950.
    20. Helen Simpson, 1998. "Biotechnology and the Economics of Discovery in the Pharmaceutical Industry," Monograph 000432, Office of Health Economics.
    21. William, Mbanyele & Fengrong, Wang, 2022. "Economic policy uncertainty and industry innovation: Cross country evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 208-228.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:137:y:2021:i:c:s1364032120308716. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.