German chemical giant BASF and Amsterdam-based renewable chemistry specialist Avantium have signed a letter of intent to form a joint venture for production and marketing of furandicarboxylic acid (FDCA) as well as the marketing of FDCA-based polyethylenefuranoate (PEF).

FDCA, a new chemical building block produced from renewable resources, is the essential chemical building block for PEF, a new type of polymer claimed to improve barrier properties for gases such carbon dioxide and oxygen, thus extending the shelf life of packaged products.

The proposed joint venture would use the YXY process developed by Avantium and tested in a pilot plant in Geleen in the Netherlands.

The companies said they plan to further develop the process as well as building a reference plant with an annual capacity of up to 50,000 t/y at BASF’s Antwerp, Belgium, site, with the goal of building up world-leading positions in FDCA and PEF. The plans would also include licensing the technology for industrial scale application.

Using PEF, which has a higher mechanical strength, the companies said thinner plastic packaging could be produced, thus reducing material consumption. PEF is said to be particularly suitable for food and beverage packaging, including example films and plastic bottles. The material is also claimed to be recyclable.

With the planned joint venture, Stefan Blank, president of BASF’s Intermediates division, said Avantium’s specific production technology and application know-how for FDCA and PEF could be combined with the strengths of BASF in market development and large-scale production.

Avantium CEO Tom van Aken said the jv would further strengthen the Dutch company’s global technology base and establish the partners’ market leadership for FDCA and PEF.