Wu, Qinglin and Richard Vlosky. 2004. New Initiative on Bio-based Industry Development in the United States. Proceedings of the 2004 Council Meeting and Technical Forum of Wood Industry Section, Chinese Forestry Society. Dan Yang, China. October 27-29. NEW INITIATIVE ON BIO-BASED INDUSTRY DEVELOPMENT IN THE UNITED STATES Qinglin Wu and Richard P. Vlosky Louisiana Forest Products Development Center Louisiana State University Ag Center Baton Rouge, LA 70803 Abstract Bio-based products are materials, chemicals and energy derived from renewable bioresources including forestry, agriculture and other biomass. The molecular building blocks and components of biomass can be harnessed to heat our homes, run our cars, light our buildings and provide industrial and consumer products. These products include fibers and fiber-based products, paper, board, engineered wood, structural panels, wood-based composites, renewable plastics, and bio-derived chemicals and fuels. This area of research and development provides a strong foundation in the sustainable utilization of bio-resources while protecting the environment. The interdisciplinary nature of bio-based technology combines science, engineering, technology, and business - all related to the manufacturing and end-use applications of materials, products and energy from renewable resources. In the United States, new initiatives are being undertaken currently to aggressively develop bio-based industry. In this paper, a brief background, description of the initiative, and its implication to the forest product industry are discussed. Keywords: biomass, bioenergy, forestry, composites, polymer Introduction Agricultural and forestry production and other natural resource based enterprises have been, and will continue to be, the source of food, feed, and fiber for the United States. Incoming years, agricultural and other natural resource commodities will provide primary building blocks for energy materials, and chemicals. These bio-based products will include liquid fuels, lubricants, plastics, building materials, nutraceuticals, pharmaceuticals, industrial enzymes, monomers, polymers, and many other items. Advances in biological sciences, combined with continuing developments in process engineering, will make this possible (Kansas State University 2004, DOE 1998, Coston and Huhnke 2003). As the science and technology developments move forward, new entrepreneurial industries will emerge and prosper in an environmentally sound manner. Additionally, existing companies will develop new business ventures. Significant employment opportunities will arise. Currently, many raw materials for industrial production are derived from petroleum. The biobased economy will complement and augment the petroleum industry (DOE 1998, Coston and Huhnke 2003).
Background There are a number of strong, interdependent forces driving the search for alternate ways to address America s energy needs and development of a bio-based economy for the United States (DOE 1998, Coston and Huhnke 2003). Petroleum has been (and will continue to be) a primary source of fuels and the basic building blocks for many products. Estimates of the reserves vary from as little as twenty years to fifty or more years. Exploration continues and new recovery techniques are allowing extraction of petroleum from aging wells. Assuring continued access to proven petroleum reserves drives much of U.S. foreign policy. However, regardless of how much petroleum will ultimately be extracted, development of the bio-based economy will extend the useful life of reserves and also allow minimal disruption if petroleum is depleted. Development of bio-based products represents an insurance policy against shortages and associated price increases of petroleum-based products. Some products derived from bio-based technologies are available, for example ethanol through fermentation of carbohydrates, but most are not as cost effective to produce at this stage in their development compared to their petroleum-based counterparts. Development of bio-based products will reduce the dependence on imported oil and positively affect the balance of payments for the United States. Many bio-based products will be derived from plant materials such as crops, grasses, and forests. Production of these raw materials will be dependent on current photosynthesis. Carbon dioxide will be withdrawn from the atmosphere and some returned when the products are utilized (e.g. burning of fuels) resulting in equal amounts of CO 2 being withdrawn and returned to the atmosphere. The utilization of fossil fuels however, has led to increase of net CO 2 level (and other greenhouse gases) in the earth s atmosphere. Development of the bio-based economy can help minimize further increases in atmospheric CO 2 concentrations. These developments should help enhance sustainability of natural resources. In addition to biomass produced specifically for bio-based products, co-/by-products from food processing, animal production, and the organic portions of garbage may serve as raw materials. Currently, many of these materials are considered wastes and often are liabilities for the organizations that produce them. There are significant costs associated with disposal and handling. If these materials can be utilized to produce marketable products, the organizations will realize additional income and will be able to create significant economic activity and associated employment (DOE 1998, Coston and Huhnke 2003). Economic factors will result in the early steps of processing being done relatively close to the sites of raw material production. Otherwise, transportation of bulky, water-laden material would likely not be economically feasible. Because raw material production (biomass, animal wastes, etc.) will primarily occur in rural areas, the first steps of processing and product development will also occur there. There will also be opportunities for production of intermediate products and, in some cases, final products in rural areas. Collectively these activities raw product production through product development - have the potential to diversify rural economies and spawn high-value enterprises and employment. Such enterprises will offer new opportunities for specialty and limited acreage farmers. Many of these businesses will be locally owned by farmers and other citizens in the local community through cooperatives and 2
other innovative business structures. These developments will play a significant role in improving local economies and community vitality (DOE 1998, Coston and Huhnke 2003, Kansas State University 2004). The Sun Grant Initiative The Sun Grant Initiative is an activity that will enlist the resources of the Land Grant Universities in the U.S. in helping push the bio-based economy to reality. Partnerships with private sector entities; foundations; other educational institutions; local, state, and federal government; and other organizations will be essential. The Initiative was proposed to be established in five regions, with coordination in each of the regions through a designated Land Grant university. The South Central Region was defined as Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and Texas. Oklahoma State University was asked to serve as the coordinating institution for the consortium. Coordinating institutions for the other four regions are South Dakota State University, Cornell University, University of Tennessee, and Oregon State University (Sun Grant Research Initiative Act of 2003, 2003, and Coston and Huhnke 2003). The goal is to improve the regional economy with bio-based products as a significant part of the industrial base. Because of the location of feedstocks and the economics of moving these materials, much of the processing development will occur in rural areas. There is also an expectation that many of these enterprises will be high technology in nature. These new enterprises will provide significant new employment opportunities in rural communities as well as serve as an impetus for further economic and social development supporting community sustainability (Coston and Huhnke 2003). The current authorization for the initiative includes $25,000,000 for fiscal year 2005, $50,000,000 for the fiscal year 2006, and $75,000,000 for each of fiscal years 2007 through 2010 (Sun Grant Research Initiative Act of 2003, 2003). The appropriation process is still pending to the congress. The fund, once available, will be equally divided among the five centers in the country. The South Central Region Consortium Initiative The South Central Consortium will concentrate on development of understandings and processes that transcend geographical borders, transcend specific final products, and can work with numerous input materials. The south central region has excellent bio-based materials production capacity, abundant land, infrastructure, human capital, opportunities for production of many types of biomass, large land areas of underutilized biomass, other feedstock sources, particularly co-/by-products from animal production and processing, outstanding industrial sector (petroleum and associated industries) to commercialize products, environmental analytic capacity. The regional program goals include (Coston and Huhnke 2003): Development of cost-efficient, low environmental impact bio-based energy sources and other commercial products/processes Distributed processing systems and enhanced local processing New products vitalizing rural areas of individual states and the region as a whole 3
Creation of new, high-tech businesses Established, well-defined industries Increased public knowledge and appreciation of biomass and bioproducts New policies that encourage bio-based products development National leadership in bio-based research and product development. A working partnership between industry and all land-grants in the region in an integrated multi-institution, multi-state, multi-disciplinary app roach Educational programs, cooperative among institutions and industry, to prepare professionals for the bio-based economy Identification of new opportunities for products or enterprises in the region based on technical and economical potential and feasibility Bio-based Technology under Development Composite from Agri-fiber sources. Composites products from wheat and rice straw, corn stalk, bagasse, and other agri-fiber sources are being produced. Bio-polymers. Bio-degradable polymers (e.g., foams) are being developed from soybean oil and cornstarch for bio-composite manufacturing. Bio-chemicals. Bio-chemicals are being extracted from food processing wastes and biomass for use as wood preservatives to replace petroleum-based chemicals (Wu et al. 2004). Bio-adhesive. Bio-adhesive from soybean protein and rice bran is being formulated to compete with petroleum based adhesives currently used in the wood industry. Bio-mass gasification. Extensive research has been done to develop equipment and process for gasification of bio-mass for energy uses (steam and electricity generation). Ethanol from biomass. Research is being done to produce ethanol from biomass through gasification and fermentation process. Implications for the Forest Products Industry and Research Bio-based products are materials, chemicals and energy derived from renewable bioresources including forestry, agriculture and other biomass. Much of the commercial products and energy that we use today from fast depleting fossil fuels can be derived from renewable bioresources. The molecular building blocks and components of biomass can be harnessed to heat our homes, run our cars, light our buildings and provide industrial and consumer products. These products include fibers and fiber-based products, paper, board, engineered wood, structural panels, wood-based composites, renewable plastics, and bio-derived chemicals and fuels. This area of research provides a strong foundation in the sustainable utilization of bio-resources while protecting the environment. The interdisciplinary nature of bio-based technology combines science, engineering, technology, and business - all related to the manufacturing and end-use 4
applications of materials, products and energy from renewable resources (Kansas State University 2004 and University of Minnesota 2004). In the realm of academia, focus is shifting away from strictly wood science to a more holistic bio-based approach. For example, at the University of Minnesota, the Department of Wood and Paper Science has changed its name to the Department of Bio-Based Products. The research program of the department supports a broad array of research projects. Basic and applied research is undertaken by the faculty with extensive collaboration with other units in the University of Minnesota. Current topics include lignin and paper chemistry, pulping and bleaching, process modeling, alternative fibers evaluation, environmental life cycle analysis, environmental marketing, e-commerce, wood protection, building performance, and engineered wood products design and performance evaluation. National research funding in the United States, a critical issue for wood scientists and the forest products industry, is also undergoing significant change. The US Department of Agriculture spends about $1.7 billion annually on research related to the nation's system of food, fiber, and natural resources. For example, major funding programs for 2004 where wood scientists could be key contributors include: (1) bio-based products and bioenergy; and (2) nano-scale science and engineering for agricultural and food systems (Smith et al. 2004). Sustainable Forestry/Forest Products Industry Development Bio-based products, including wood based products can promote sustainable forest sector industry development. We suggest that an expansion of current thinking beyond wood alone creates a holistic and flexible framework that emphasizes long-term sustainable industry development. Driven by markets and demand for sustainably manufactured products, strategies can be developed to implement economic development efforts that capitalize on defensible market driven opportunities in forest products industry sectors. The goal is to develop the wood products industry while adding value to existing resources, creating employment opportunities with transferable skills and maintaining the stewardship of renewable resources (Vlosky et al. 1998). Summary The opportunities of the South Central Region Sun Grant Initiative are immense. The greatest challenge for the Sun Grant Initiative will be to identify focus, and undertake activities that will develop and transfer information with broad applicability throughout the region. The technologies and systems that will arise from consortium programs will have utility for many beginning biomaterials and marketable products. Through education programs offered by the Land Grant universities, the public will have a better understanding and appreciation for biobased products. As a result, they will utilize the products because they are economically attractive and also because the products help meet other social goals such as environmental stewardship, enhanced national security, and enhanced vitality of rural areas. It is clear that research in forest products is merging with agricultural and other bio-based research. The South Central Region Sun Grant Initiative can help to promulgate this evolution (Coston and Huhnke 2003). Reference 5
Coston, D.C., and R. L. Huhnke. 2003. The Sun Grant Initiative. South Central Sun Grant Initiative Report. 16 pp. DOE. 1998. Plant/crop-based renewable resources 2020: a vision to enhance U.S. Economic Securiy Through Renewable Plant/Crop-based Resources Use.. DOE/GO-10098-385, January 1998. Kansas State University. 2004. Biomaterials Research products and energy. KSU Agricultural Experiment Station 5-year Action Plan. Smith, P.M., A. Zink-Sharp, D.S. Stokke, M.P. Wolcott, and S.M. Shaler. 2004. Editorial Wood & Fiber Sci., July 36(3):289-290 Sun Grant Research Initiative Act of 2003. 2003. SEC. 9011 Research, extension, and educational programs on bio-based energy technologies and products. Title IX of the Farm Security and Rural Investment Act of 2002. The US Congress. University of Minnesota. 2004. Department of Bio-based Products website: http://www.cnr.umn.edu/bp/ Vlosky, Richard, N. Paul Chance, Pamela Monroe, David Hughes and Lydia Blalock. 1998. An Integrated Market-Based Model for Value-Added Solid Wood Products Sector Economic Development. Forest Products Journal. 48(11/12): 29-35. Wu, Q., X. Duan, and J.Z. Lu. 2004. Chitosan copper complex as a potential preservative for enhancing biological performance of wood polymer composite. In Proc. the Sun Grant Initiative South Central Region Meeting. Okalahoma City, OK. June 14-15, 2004. B-4. 6