NNFCC Market Review  Bio-based Products                                        Issue One, April 2012E     ach month we rev...
Markets                                               investment targets, overtaking the US and                           ...
with certain other polymers, including                thermoforming and injection-mouldingpolybutylene succinic polymers (...
BioAmber scales up production of                       agreements for a joint commercial operationbio-based 1,4 butanediol...
Roquette’s know-how in plant-based rawmaterial processing.Click here for more information.                     Bioplastics...
innovative, cost-effective bio-based materials       Yulex and Cooper Tire to develop bio-to the marketplace.             ...
Commodity PricesItem                                                Price, US$ (Feb 07)    Price, US$ (Feb 12)      % Pric...
Biopolymer World Congress, 23-24                   The first workshop covers the principles ofApril 2012 in Mestre-Venice,...
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NNFCC market review bio based products issue one april 2012


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Each month we review the latest announcements and news from across the global bio-based chemicals and materials sector exclusively for our business members.

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NNFCC market review bio based products issue one april 2012

  1. 1. NNFCC Market Review Bio-based Products Issue One, April 2012E ach month we review the latest But looking into the future it will be announcements and news from developing markets like Asia which are across the global bio-based likely to be the most attractive to newchemicals and materials sector for our investment.business members. A number of bioplastic companies areForeword already investing in this emerging market, including NatureWorks whoWelcome to the launch issue of our have recently announced plans for anew market review. This month we have polylactic acid plant in Thailand whichseen major progress in the could be online by 2015 but it is likely todevelopment of new markets for bio- be the first of many new facilities in thebased products and the trends suggest area over the next decade.the bioplastics market is likely to tripleover the next three years. Read on to find out more.As more biopolymer productionfacilities are due to begin commercial Highlightsoperations in 2012, it is evident we have Page 2 Markets News Round-upreached a tipping point in thecommercialisation of bioplastics. Page 2 Patents News Round-upMuch of the focus of current Page 3 Platform Chemicals Newsdevelopment is in the Americas and Round-upEurope, especially in countries like Italywhere tax breaks are being used to Page 5 Bioplastics News Round-uppromote the use of compostable Page 7 Commodity Pricesplastic bags. Page 7 Events NNFCC Market Review, April 2012, Page 1 of 8
  2. 2. Markets investment targets, overtaking the US and South America as the largest growth areas. In addition, Glycos said that demand for new bio-based chemicals, such as synthetic rubber, will continue to emerge and the performance and economic advantages of non-sugar feedstocks will become increasingly apparent to project developers and investment managers. Click here for more information. Source: ICISGlobal demand for bioplastics Patentsexpected to triple by 2015 Latest on the Gevo-ButamaxBy 2015, global demand for biodegradables isobutanol patent infringement clashand bio-based plastics will more than triple toexceed 1 million tonnes and be worth At the start of March, renewable chemical$2.9billion (€2.1billion), say the Freedonia and fuels company Gevo defeated a patentGroup. infringement claim from Butamax – a joint venture between BP and DuPont – relating toRising petroleum costs will allow some their isobutanol-producing yeast.bioplastic resins to reach price parity withconventional plastics. Less than a week later, Butamax filed a new lawsuit against Gevo for infringing their patentExcellent growth is projected for the two relating to the use of recombinant KARIleading biodegradable plastics, starch-based enzymes.resins and polylactic acid (PLA), which areexpected to more than double in demand The case is the latest in a long standing battlethrough 2015. Polyhydroxy-alkanoate (PHA) between the companies which goes back toresins, which are now entering the 2011, when Butamax filed suit against Gevocommercial market, are expected to show for two patent infringements – the trial forthe greatest gains. these cases is set for April 2013.Click here for more information. Click here and here for more information.Glycos Biotechnologies see Asian Metabolix grants patent license tomarket as major growth area for high- NatureWorks for new biopolymervalue speciality chemicals blendsGlycos Biotechnologies have announced Metabolix have announced they havewhat they see as the major future trends in granted a non-exclusive license torenewable chemicals. Topping the list they NatureWorks for the US patent No. 5,883,199,said Asian markets will become attractive titled "Polylactic Acid-based Blends," to make, use and sell blends of polylactic acid (PLA) NNFCC Market Review, April 2012, Page 2 of 8
  3. 3. with certain other polymers, including thermoforming and injection-mouldingpolybutylene succinic polymers (PBS). processes.The deal is welcome news for Metabolix This new compounded resins are designed forfollowing the recent announcement that food service ware applications and designedchemical giants ADM would be cutting ties to expand the Ingeo property range in termswith the company. of flexibility, toughness, heat resistance, and drop-in processability on existingClick here for more information. manufacturing equipment.Myriant develops proprietary process Click here for more information.to produce bio-acrylic acid OPXBIO achieves bio-based acrylicMyriant has filed for patent protection with acid production milestonethe United States Patent and TrademarkOffice for its bio-acrylic acid process and will OPX Biotechnologies Inc. have announcedimmediately initiate scale-up activities to that they have successfully demonstratedprovide product samples to customers in the their fermentation process for bio-basedsecond half of 2012. acrylic acid (or BioAcrylic) at the 3,000-liter scale.Based on its progress to-date, Myriant expectsthat its bio-acrylic acid product will be cost OPXBIO is working with The Dow Chemicalcompetitive, compared to petroleum-based Company to bring BioAcrylic into the $10-acrylic acid without the need for government billion market for acrylic used in products suchsubsidies or green premiums. as diapers, detergents, paints and adhesives. Click here for more information.Click here for more information. Amyris secures $83.7 million in additional financingPlatform Chemicals Renewable chemical and fuel company Amyris have sold $58.7 million of shares in a private placement and agreed to sell $25 million in notes to boost its working capital. One of the biggest investors was Biolding Investment, a company owned by Qatar’s former Prime Minister Sheikh Abdullah binNatureWorks and BioAmber form joint Khalifa Al-Thani.venture to commercialise polymersmade from bio-based succinic acid Biolding Investment agreed to purchase $15 million of additional common stock on theUnder the joint venture, NatureWorks plans to provision that Amyris completes itscommercialise a new family of compounded commercial-scale Paraíso Bioenergia SAIngeo™ resin grades made using BioAmber’s Biofene™ production facility plant in Brazil byPLA/PBS compounding technology, and is March 2013.immediately offering samples ofdevelopmental grades aimed at Click here for more information. NNFCC Market Review, April 2012, Page 3 of 8
  4. 4. BioAmber scales up production of agreements for a joint commercial operationbio-based 1,4 butanediol in Asia for the production of bio-based 1,4 butanediol (BDO) using Genomatica’s process technology.BioAmber has scaled up its hydrogenationcatalyst technology under license from Mitsubishi has made an up-front payment toDuPont and converted multi-ton quantities of Genomatica of $3.5 million while thebio-succinic acid into 100% bio-based 1,4- companies continue to work towardbutanediol (1,4-BDO), tetrahydrofuran (THF) completing their definitive agreements, someand gamma-butyrolactone (GBL). or all of which may be repaid upon certainBioAmber believes the global addressable conditions.market for these products exceeds $4 billion,and that they are principally used to make The agreement continues until 30 June 2012polyesters, polyurethanes, spandex and or the date the companies execute abiodegradable plastics. definitive agreement.Click here for more information. Click here for more information.LANXESS invest $10 million in GuangXi Guangwei Chemical toBioAmber produce bio-based PVABioAmber has completed its latest round of GuangXi Guangwei Chemical havefinancing with net proceeds of $30 million; launched a new production line of bio-basedincluding a $10 million investment with PVA with a capacity of 50,000 metric tons perspecialty chemicals company LANXESS. year to satisfy the growing market for renewable PVA in Asia.The investment by LANXESS is the culminationof a strategic collaboration in the field of PVA is used in a range of applicationsrenewable, phthalate-free plasticizers. including paper adhesive, packaging filmsBioAmber and LANXESS are jointly developing and bio lubricants.phthalate-free plasticizers and expect tobegin sampling succinic-based plasticizers Click here for more information.later in 2012. Royal DSM and Roquette Frères bio-The companies are also collaborating in based succinic acid joint ventureSarnia, Ontario, on the establishment ofBioAmber’s first world-scale bio-succinic acid approvedmanufacturing facility. LANXESS is owner ofthe site and will provide BioAmber with utilities Reverdia, the joint venture between Royaland services needed to operate the facility. DSM and Roquette Frères, has been formally approved by the relevant regulatoryClick here for more information. authorities. Reverdia aims to build on its emergingMitsubishi Chemical signs BDO limited leadership position for bio-based succinicexclusivity agreement acid through its proprietary production technology and by ensuring reliable supply toGenomatica announced that Mitsubishi meet the evolving market demands. ReverdiaChemical Corporation has signed an combines DSM’s expertise in Materialsagreement to exclusively negotiate definitive Sciences, and biotechnology together with NNFCC Market Review, April 2012, Page 4 of 8
  5. 5. Roquette’s know-how in plant-based rawmaterial processing.Click here for more information. BioplasticsRivertop Renewables beginsadvanced testing of green chemicalswith commercial productionexpected later in the yearIn March US chemical company RivertopRenewables announced that they havesuccessfully scaled up their patentedglucarate manufacturing technology.Rivertop has contracted DTI, a custommanufacturer of fine and speciality chemicalproducts based in Virginia (US), to pilot themanufacture of Rivertop’s glucarate-based Avantium and Danone to developproducts. next-generation bioplasticProduct made in this initial phase of contract Following its agreement with Coca-Cola lastmanufacturing will be used to fulfil Rivertop’s year, Avantium has now signed a Jointcommercial contracts for bio-based corrosion Venture Agreement for the development ofinhibitors. Poly-ethylene-furanoate (PEF) bottles withRivertop and DTI hope to scale capacity up Danone – makers of evian and volvic – andto 10 million pounds of contract- number two in the worldwide bottled watermanufactured product per year in the fourth business.quarter of 2012. In December 2011, Avantium opened its pilotClick here for more information. plant in Geleen, the Netherlands, with the capacity to produce 40 tonnes of PEF forAjinomoto and Toray to develop bio- application development.based nylon Avantium hopes to license its YXY technology to enable large scale, world-wide productionAjinomoto and Toray Industries have entered and use of its bio-sourced plastic materials.into an agreement to begin joint research formanufacturing the nylon raw material 1,5- Click here for more information.pentanediamine (1,5-PD) from the aminoacid lysine produced from plant materials byAjinomoto using fermentation technology, DaniMer Scientific and Myriantand commercialising a bio-based nylon announce strategic alliance tomade from this substance. develop bio-based polymersClick here for more information. DaniMer Scientific and Myriant have announced that the companies have formed a strategic alliance focused on delivering NNFCC Market Review, April 2012, Page 5 of 8
  6. 6. innovative, cost-effective bio-based materials Yulex and Cooper Tire to develop bio-to the marketplace. based rubber tyresAs part of the strategic alliance, DaniMer will US natural rubber specialists Yulex and tyreutilize Myriant’s bio-succinic acid for the manufacturers Cooper Tire have signed aproduction of high-performance, bio-based joint venture to develop tyres made from apolymers used to make a broad range of desert shrub, native to south west America,sustainable, eco-friendly products. known as Guayule.Click here for more information. Under the agreement, Cooper will provide advanced polymer and materials scienceRoquette industrial unit for Gaialene® expertise and share its design, developmentbioplastic production fully operational and testing capabilities.Starch producers Roquette have successfully Yulex will provide experience with thelaunched their first industrial production unit development and production of advancedfor Gaialene® bio-based plastics at its main engineered guayule-based biopolymers.site in Lestrem, France. Click here for more information.The unit which has an annual capacity of25,000 tons was finished at the end of 2011 New nano-catalyst could be biggestand has now started commercial operations. bioplastic breakthrough in threeThe unit is expected to serve the growing decadesEuropean market for bio-based products. A new nano-catalyst being developed byClick here for more information. chemical giants Dow could help the company commercialise a process forEvonik polyamides certified “bio- making traditional plastics from biomass,based” according to research published in the journal Science.The VESTAMID® Terra family of polyamidesfrom Evonik Industries has been certified as The new catalyst is made of tiny spheres of"bio-based" by independent institutes. The iron and could significantly increase thebio-based components have been certified efficiency of converting synthesis gas to lowerper DIN ISO 10694; 1996-08 and by the USDA’s olefins; key building blocks for manufacturingBiopreferred® program. These official plastics, cosmetics and evenlaboratories used C14 trace carbon analytics pharmaceuticals.to verify that the carbon in these productscome from biomass rather than petroleum. The new, improved iron-based catalyst yielded about 50 per cent more lower olefinsVESTAMID® Terra polymers are partially or than conventional catalysts. Dow say theyentirely based on renewable feedstocks. The are still refining the process further andstarting material is the castor bean (Ricinus commercial production could yet be 5 to 10communis) and its oil derivatives, which are years away.synthesised into monomers that form the basisof the VESTAMID® Terra product range. Click here for more information.Click here for more information. NNFCC Market Review, April 2012, Page 6 of 8
  7. 7. Commodity PricesItem Price, US$ (Feb 07) Price, US$ (Feb 12) % Price IncreaseCrude oil (petroleum, barrel) 57.58 ↑ 112.71 95.75Maize (corn, metric ton) 177.35 ↑ 279.71 57.72Rapeseed oil (metric ton) 864.93 ↑ 1300.00 49.98Soybean oil (metric ton) 664.88 ↑ 1170.00 76.00Sugar (pound) 0.1057 ↑ 0.2406 127.63Ethanol (gallon) 2.12 ↓ 2.20 3.77 For details on indexes please see www.indexmundi.com/commodities Crude Oil (petroleum), simple average of three spot prices; Dated Brent, West Texas Intermediate, and the Dubai Fateh. Ethanol details available at www.neo.ne.gov/statshtml/66.html Arrows indicate rise (↑) or fall (↓) from previous month. Comparison of Price Indexes (2005 = 100) 300 Price index (relative terms) 250 200 Agricultural Raw 150 Materials Food 100 50 Crude Oil (Petroleum) 0 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 For details on the nature of these commodities please see www.indexmundi.com/commoditiesEvents The main focus of this event is on the UK role for biomass conversion, and the business and commercial implications of the technologiesProcessing Lignocellulosic Biomass being developed.Conference, 18 April 2012 inCleveland, UK NNFCC members can benefit from up to £50www.soci.org/events off the standard delegate rate to this event. Email enquiries@nnfcc.co.uk to receive theThe main focus of this event is on the UK role special promotional code.for biomass conversion, and the business andcommercial implications of the technologiesbeing developed NNFCC Market Review, April 2012, Page 7 of 8
  8. 8. Biopolymer World Congress, 23-24 The first workshop covers the principles ofApril 2012 in Mestre-Venice, Italy LCA, requirements, problems and issues. The second provides a ‘hands on’ opportunity towww.biopolymerworld.com learn to carry out an LCA. The workshops can be taken together or separately.This international forum tackles the latestadvancements in the Biopolymer industrywhile addressing the entire value chain. The 8th International Conference onCongress focuses on the modern challenges Renewable Resources & Biorefineries,facing the biopolymer and bio-based 4-6 June 2012 in Toulouse, Francechemicals industry, ranging from research www.rrbconference.combreakthroughs to end-of-life recovery. As a result of the growing impact ofThe diverse assembly of attendees will renewable resources, this conference aims atinclude: business executives, research & bringing together academic researchers,development managers, investors, policy industrial experts, policymakers and venturemakers, brand owners, researchers, scientists capital providers to discuss the challengesand engineers from all over the globe. emerging from the transition towards a bio- based economy and to present newNNFCC members receive a 10 per cent developments in this area.discount off the usual delegate rates. Emailcongress@biopolymerworld.com to receive 7th European Bioplastics Conference,the special promotional code. 6-7 Nov 2012 in Berlin, Germany en.european-bioplastics.orgLife Cycle Assessment Workshops, 16-17 May 2012 in York, UK The annual European Bioplastics Conferencewww.nnfcc.co.uk/events offers a unique information platform for industry trends and innovations in materialTwo workshops have been developed to and application development.provide a basic understanding of LCA andhow to set about doing one. Credits and Disclaimer NNFCC Market Review is edited by Dr Matthew Aylott for NNFCC members. Feedback is welcome. The Review has been compiled in good faith and NNFCC does not accept responsibility for any inaccuracies or the products or services shown. NNFCC, Biocentre, Phone: +44 (0)1904 435182 York Science Park, Fax: +44 (0)1904 435345 Innovation Way, E: enquiries@nnfcc.co.uk Heslington, York, Web: www.nnfcc.co.uk YO10 5DG. NNFCC Market Review, April 2012, Page 8 of 8