AFYREN, a French producer of biomolecules derived from the reuse of non-food biomass, opened its AFYREN NEOXY plant in Carling-Saint Avold, in the Grand Est region in late September 2022. The plant produces biobased carboxylic acids from sugar beet co-products. Several months later, in January 2023, the company announced plans to establish a new biorefinery near Bangkok, Thailand in cooperation with Mitr Phol, a Thai producer of cane sugar and its derivatives. This biorefinery will also produce carboxylic acids. Both plants will cater to the food and feed markets.
Although AFYREN was established in 2012 to meet the growing need of industries to reduce the use of petroleum derivatives in their production chains, using a green biochemistry process to produce biomolecules through renewable non-food biomass as feedstock, the company’s foray into the industrial-scale animal nutrition space can be seen as more recent.
During its first years, co-founders Jérémy Pessiot (CTO) and Nicolas Sordet (CEO) sought to turn the start-up into a robust industrial production process. In 2016 and 2017, AFYREN focused on going from the first proofs of concept at the laboratory scale to a pre-industrial scale. In 2018, AFYREN created the AFYREN NEOXY joint venture with Bpifrance's SPI fund. The aforementioned Carling-Saint Avold plant was built in 2021-2022.
Moreover, AFYREN went public in 2021, listing on the Euronext Growth exchange and raised a total of €70.4 million to boost its industrial development at the international level. In total, AFYREN has gathered a total of €150 million to finance its development.
With consumer habits changing and public policies fuelling the development of bio-based feed additives, players active in the feed sector are seeking to improve the environmental and carbon footprint of their processes. This is where AFYREN sees its opportunity in the market for its range of bio-based organic acids dedicated to animal feed ingredients and additives. AFYREN offers acetic, butyric, caproic, propionic and valeric acids.
“The organic acids market is significant, currently representing some 18 million tonnes, with annual growth of around 5.7%, and valued at over $13 billion. Currently, nearly 99% of the organic acids on the market are petroleum-based,” said Joachim Merziger, Chief Commercial Officer, AFYREN.
Grand Est
In France, the AFYREN NEOXY plant in Carling-Saint Avold, in the Grand Est region has a designed production capacity of 16,000 tonnes/year. After the start of construction in December 2020, it only took 20 months for AFYREN NEOXY to open its doors on 29 September 2022.
“After the different steps of construction and commissioning, today, AFYREN NEOXY is perfectly operational and secure. The biorefinery reached production start-up phase in the 2022 calendar year, as announced,” Merziger said. “AFYREN plans to gradually increase volumes to produce 16,000 tonnes/year of carboxylic acids within two years, a world first. At this stage, 75% of AFYREN NEOXY's target production of organic acids has already been pre-sold.”
“The commissioning of the site involved the recruitment of 60 people, covering the whole range of industrial professions (production, maintenance, quality control, security, and administration),” Merziger added.
In May 2022, AFYREN also announced the signature of a new multi-year structuring contract with a European player in animal nutrition, for the supply of an organic acid from the Carling-Saint Avold plant.
Thailand
Meanwhile, production start-up for AFYREN’s biorefinery near Bangkok is expected by 2025. The new plant, being co-developed with Mitr Phol, aims to have a carboxylic acids production capacity of approximately 28,000 tonnes/year.
Merziger could not comment on how much of this targeted capacity will be sold into the Asia-Pacific feed market but referred to the structural growth of the Asian feed sector, which according to Databridge Market Research, is expected to enjoy a CAGR of more than 4% until 2029.
“On top, it represents a strategic target market for short and medium chain fatty acids and AFYREN remains committed to that market segment,” Merziger commented.
Merziger went on to say that AFYREN considered a number of options and sites in Asia, including different options in Thailand. However, this particular project represented the best opportunity.
“Our project in Thailand will fit extremely well to our fully circular model, with the proximity of sugar cane residues and renewable energy. The availability of a large amount of under-valorised biomass that can serve as renewable feedstock for our project is also a key driver. The final decision was made taking into account a good ESG impact by lowering our environmental footprint and good reliability with the local partner,” he said.
“The Asian market is a major one, with a GDP growth of 3-4%, and many governments and companies in the region are redoubling efforts to build greener, more sustainable economies. Thailand is among these countries and is well located to address the ASEAN market,” Merziger added.
According to AFYREN, this new Thai capacity will offer for the first time a local supply of its biobased low-carbon carboxylic acids in industrial quantities. Furthermore, it is their understanding that there is no local or regional production capacity for even some conventional acids.
“The APAC market is estimated to represent 25% of the carboxylic acids C3 to C6 demand. AFYREN will have strong exposure to fast-growing segments, particularly in food and feed markets. But at this stage, we cannot project any specific split between industries/vertical markets,” Merziger went on to say.
Third Plant?
When announcing the Thai project, AFYREN pointed out that in order to have an annual production capacity of more than 70,000 tonnes by 2026, the company will also aim to have a third production facility.
Asked about this third plant, Merziger said that the project is still at a “prospective level.”
“We are looking at the best scenario to develop our production capacity and serve our customers locally with a global reach,” he commented.
Finally, when asked about the carboxylic acid expansions seen in recent months in the animal nutrition market (the latest being OQ Chemicals announcing in January 2023 that it would be growing its production capacity) and the rising investor interest in this space, Merziger stated that AFYREN is “currently focused on organic growth” and “retaining full control” of its project.
