11 th Annual World Congress on Industrial BioTechnology

Transcription

1 11 th Annual World Congress on Industrial BioTechnology Track 3: Renewable Chemical Platforms and Biobased Materials Session 5: Market Opportunity for Renewable Chemicals and Biobased Products Moderator: Ron Buckhalt, USDA Sally Van Wert, Bayer CropScience Arlan Peters, Novozymes Harry Baumes, USDA

2 Market Opportunity for Renewable Chemicals and Biobased Products Ron Buckhalt, Program Manager United States Department of Agriculture s BioPreferred Program March 3 5, 2014 Baltimore, Maryland

3 Agenda The Evolution of Biobased Feedstocks Biobased in the Chemicals Arena Biobased End Use Products The USDA BioPreferred Program Federal procurement preference Voluntary labeling program Biobased Products and Renewable Chemicals in the news

4 The First Plastics Were BioPlastics Cotton and wood pulp made the first plastics Celluloid revolutionized movies and photography And then..... petroleum

5 Biobased Products Are Not New Less than 200 years ago, industrializing societies were carbohydrate economies. Plants were the primary raw material in the production of dyes, chemicals, paints, inks, solvents, construction materials, even energy. Then we shifted to a fossil fuel based economy based on low crude oil prices. For the first time in 60 years, the carbohydrate economy is back on the publicpolicy agenda and we are changing the very material foundation of industrial economies. Research and Quotes David Morris

6 1938 Farm Bill Directs USDA to conduct research to develop new industrial uses for agricultural commodities The resulting research facilities became part of the USDA Agricultural Research Service (ARS) Barn built at Chicago World s Fair, 1938

7 Biobased Products in the Early 1900s Rayon, the first manufactured fiber developed in 1890 in France Ford supported ethanol over gasoline

8 How Crude Is Used Still gas 5% Coke 5% Jet fuel 13% Fuel Oil 3% Liquified gas 3% Asphalt 2% Lubricants 1% Other products 2% Gasoline 51% Diesel 15% In Gallons: How is a Barrel of Crude Oil Used Source ABC News

9 Renewable Chemicals Today

10 Biobased Chemicals Today Industry is increasingly viewing chemical and polymer production from renewable resources as an attractive area for investment. Bio based Chemicals Value Added Products from Biorefineries. Jong, Higson, Walsh, Wellisch, for IEA Bioenergy Market potential studies vary based on what is counted and when study was conducted. The production of biobased products could generate $US billion of revenue for the global chemical industry. Biobased Chemicals: Value Added Products from Biorefineries, IEA Bioenergy, Jong, Higson, Walsh, Welish Other studies suggest $18B and 100,000 US jobs added to U.S. economy

11 Renewable Chemicals Biobased chemicals and plastics represent a historic opportunity..through the creation of a new generation of renewable, sustainable products developed and produced in the United States. Biobased Chemicals and Products: A New Driver of U.S. Economic Development and Green Jobs. Bio

12 Market Studies Global Renewable Chemicals market to grow at a CAGR of 7.32 percent over the period ResearchMoz.us, 2013 Nexant estimates the value of the global renewable chemicals and materials market to be approximately $2.5 billion (~1.2 million metric tons) in 2012, excluding oleochemicals

13 Compounded Annual Growth Rate (CARG) for Biobased Chemicals Selected Market Research Specialty Area CARG Projection Source BioPolymers 14.3 Research and Markets, 2013 Sythetic Lubricants 2.48% Transparency Research, 2013 BioPlastics 24.3% Research and Markets, 2013 BioSurfactants 3.5% Transparency Research, 2013

14 Compounded Annual Growth Rate for Plastics vs. BioPlastics 30% 25% 20% 15% 10% 5% 0% Plastics Bioplastics Bioplastics: Research and Markets, 2013; Plastics: plasticseurope, 2011

15 Survey of Petrochemical Industry (ICIS) Survey of 700 ICIS Members 71% have or are developing a sustainability strategy 44% very important to be frontrunner in sustainable chemicals 72% customers have expressed interest in sustainable chemicals Sustainability enters mainstream of chemical industry practices and planning, according to ICIS and Genomatica survey, January, 2013

16 Selected Industry Sectors Biobased in Composites, Lubricants, Polymers, Surfactants, Plasticizers

17 Potential Advantages include: Biobased Composites Lighter weight Good specific strength and stiffness properties Better insulation and sound absorption properties Reduction in VOC and HAP emissions Better degradation when service life is exhausted Reduction in the dependence on petroleum based products Growing areas include medical applications and residential construction C.A. Ulven, Presentation "Biobased Composite Materials for Structural Applications" North Dakota State University, 2013

18 Biobased Lubricants Biobased lubricants have superior lubricity without the need for these chemical additives. This added lubricity reduces friction. Less friction also reduces wear on cutting tools and grinding wheels, usually extending tool life. Biobased crankcase oils a new category for the BioPreferred federal procurement preference The Benefits of Biobased Lubricants, Dwight Smtih and Bob Frazier, Gear Solutions, 2012

19 BioPolymers The worldwide production capacity of biopolymers is considerably higher than in previous studies indicated. Biobased polymers are definitely polymers for the future. nova Institute, Michael Carus, 2013 Up and Coming applications of biopolymers Biomedical Films and coatings Plasticizers

20 Recent Biobased Surfactants Example Methyl ether sulfonate (MES) is a bio chemical based substitute for linear alkyl benzene sulfonate (LABS). Interest in this space is intense due to benefits of MES, which scores better than LABS on multiple counts. as high purity, devoid of any volatile organic compounds gentle on the skin, low percent of di salt, suitable for both liquid and powder detergents. Bio based chemicals gaining ground to reduce carbon footprint Manish Panchal, Charu Kapoor and Binay Agrawal Mumbai, December 31, 2013

21 Biobased Plasticizers The most commonly used plasticizers are phthalates. Phthalates are being phased out of many products in the United States, Canada, and the European Union over health concerns. Biobased plasticizers alternatives to these petroleum derived plasticizers are from such as fatty acid composition esters extracted primarily from crop feedstocks. The market phthalate free plasticizers is growing at about 7% per year.

22 The USDA BioPreferred Program Supporting the Development of New Biobased Markets

23 Legislative and Executive Office Drivers Reauthorized in the 2014 Farm Bill 2012 Presidential Memo 2012 FAR Update E.O Agricultural Act of 2014

24 Federal Interest in Biobased Products Energy Security Environmental Security Economic Security Food Security The bottom line sustainability is important, but a healthy, vibrant rural America is also important. BioPreferred can help with both. Tom Vilsak Secretary of Agriculture

25 Two Components of BioPreferred Program Federal Procurement Preference Voluntary Labeling

26 Procurement Preference for Biobased Products Requirement for: - Federal Agencies - Federal Contractors USDA identifies product categories that make sense for a purchasing preference

27 The Federal Procurement Preference currently includes: Currently, 97 product categories Representing more than 10,000 products Product categories continue to be added

28 Examples Product Category Minimum Biobased Content Water Tank Coatings 59% Metal Cleaners and Corrosive Removers 71% Paint Removers 41% Plastic Lumber Composite Panels 23% Structural Wall Composite Panels 94% Slide Way Lubricants 71% Where no minimums for category, the minimum is 25% For intermediate ingredients such as PLA and PHA, the minimum is 25%

29 What is the voluntary labeling program?

30 The USDA Certified Biobased Label Launched February, 2011 Serve as an unbiased indicator of biobased content Independent third party certification partnership with ASTM International

31 What s on the Label? Sun, sea, and soil motif Product or package Biobased content percentage listed FP included in Federal Procurement Preference

32 Label Activity Category Label Applications (from nearly 600 companies) Numbers ~2500 Certified Products ~1600 Applications in Process ~800 Note: There was a delay in processing of applications for label due to delayed passage of Farm Bill Now fully back in business as of April, 2014

33 USDA Catalog Examples of Labeled Products Company Location Product Example ITW ROCOL North America Glenview, Illinois Accu Lube Block and Accu Lube Stick Metalloid Corporation Sturgis, Michigan ADVVANCE Forming Lubricants InPro Corporation Muskego, Wisconsin Biopolymer Flex Corner Guard BioBlend Renewable Resources, Inc Joliet, Illinois BioBlend Chain and Cable Lubricants American Oil and Supply International Tinton Falls, New Jersey Jack of All Sprays multi purpose lubricants Pylantis Groton, New York Ecopec wood bioplastic hybrid for injection molding Dupont Wilmington, Delaware Sorona Polymer Whitmore Manufacturing Company Rockwall, Texas BioSwitch Switch Plate Lubricant Gabriel Products, Inc Jeffersonville, Indiana Ebase Multipurpose Grease Food Grade USG Corporation Chicago, Illinois Aspen Acoustic Ceiling Tile (composite) Green Earth Technologies Celebration, Florida Engine Crankcase Oil 10W30

34 Biochemicals in the News

35 6R Supply Inc. has transitioned to a wholly biobased industrial supply product line. Biobased in the News Product line offers clients additional options for industrial hydraulic fluids, lubricants and solvents that are readily biodegradable, non hazardous and do not use petroleum or its derivatives as base ingredients. Press Release, 6R Supply, August 8, 2013

36 Biobased In the News DuPont says that more than half of its plastics portfolio will be made from renewable resources within 15 years. Dupont is exploring technologies to make chemical monomers for basic plastics like nylon from carbon based resources that can be rapidly regenerated using non food crop resources. BioPlastics Today, June 24, 2013

37 Campion Boats, a Canadian boat builder, gets resin from Ashland Chemicals of Kentucky. The unsaturated polyester resin has 12 percent bio content (by weight) derived from soybean oil and corn based ethanol. The product, Envirez T30, has heat distortion temperature and elongation properties that make it suitable for boatbuilding. Biobased In the News Biotalk, May 28, 2013

38 Biobased in the News Cortec Corporation Announces Biopad, a flexible corrosion inhibiting device constructed from 100 percent biobased non woven material, containing 66 percent biobased content. The product provides up to two times as much corrosion inhibiting action as conventional VCI foams. BioPad contains a high concentration of VpCI in combination with its thin design, resulting in material reduction by up to 94 percent in comparison to similar polyurethane foam emitting devices. Azom.com, January 13, 2014

39 Biobased in the News Laurel Biocomposite has earned the USDA Certified Biobased Product Label for its Bio Res PE and Bio Res powder products. A cost effective, green replacement with improved performance properties for traditional petroleum based resins in a variety of plastics manufacturing processes.

40 Biobased in the News Mercedes Benz C and A Class use flax/pe biobased composite underbody panels and engine and transmission covers. The John Deere uses composite panels a collaboration among University of Delaware, Ashland Chemical Co, and John Deere

41 Regulatory Trends and the Future

42 BiPartisan Congressional and White White House initiative to promote the Bioeconomy Blueprint released in April, 2012 Biobased in the 2002, 2008, and 2014 Farm Bills and the Federal Acquisition Regulation. House Support

43 International Cooperation TEC Innovation Action Partnership focuses on commercialization of emerging technologies and sectors Collaboration on promoting the development and use of biobased products Standards Best Practices Linkages Transatlantic Economic Council Joint Statement

44 Countries Participating in the USDA BioPreferred Program Argentina China Italy Philippines Trinidad and Tobago Australia Denmark Japan Puerto Rico Turkey Austria El Salvador Korea Senegal United Kingdom Bangladesh France Malaysia Singapore United States Brazil Germany Mexico South Africa Vanuatu Cambodia Hong Kong Myanmar Spain Vietnam Cameroon India Netherlands Sri Lanka Canada Indonesia New Zealand Switzerland Chad Ireland Norway Taiwan

45 Current Considerations Encourage market pull with federal marketplace and voluntary label. State level initiatives such as Ohio Mitigating risks/incentives Investment tax credits Loan guarantees Production credits Chemical Safety Improvement Act (bill before Senate to update the Toxic Substance Control Act)

46 Contact Ron Buckhalt Program Manager USDA BioPreferred Program gov Web site: