US biotechnology company Verdezyne, which counts BP and DSM among its investors, has broken ground on its first commercial-scale biochemicals plant. The facility, known as VerdePalm and located at the Bio-XCell park in Nusajaya, Iskandar, southern Malaysia, will be the world’s first bio-based plant to produce dodecanedioic acid (DDDA), Verdezyne said.

“Crude palm oil and palm by-products, as well as other plant-based raw materials, will be used to produce approximately 6,000 t of industrial-grade DDDA each year. Verdezyne’s technology will enable a very low-value by-product of palm oil processing to become a high-value green product that reduces the use of petroleum,” said Chad Waite, Verdezyne’s chairman.

The plant, which is expected to be completed in 12-18 months time, is designed to produce bio-based long chain diacids by fermentation of Verdezyne’s proprietary yeast, which has been engineered to use non-food biomass as a feedstock.

DDDA is a major component of FerroShield, Verdezyne’s nitrate-free dibasic acid mixture used in a range of corrosion inhibitor applications, including metalworking fluids, engine coolants, metal cleaners, die cast release agents and aqueous hydraulic fluids.

William Radany, Verdezyne’s president and CEO, said marketing of FerroShield was launched in February. He commented: “The rust inhibition industry is in need of a high-performing dibasic acid mixture that can be easily incorporated into existing customer formulas. We foresee strong demand for FerroShield in a number of countries in Asia and Europe, as well as in the US and Canada.”

The company is reported to have signed an agreement with Dutch sales, marketing and distribution group, Will & Co, which will buy 2,500 t/y of Verdezyne’s DDDA to sell in Europe.