Association, Biorefinery, Government, Investments, News Roundup, studies and reports

New BIO Report: Renewable Chemical Commercialization

Industry trade organization, BIO, has released a new report featuring snapshots of the renewable chemical industry, with profiles of companies that are commercializing new bio-based chemicals/materials including production capacity. The report is intended to illustrate the potential of this industry, which according to McKinsey & Co. in the report, is estimated to make up 11% of the $3,401 billion global chemical market, and sales of biobased products to reach $375-441 billion by 2020.

McKinsey estimates sales of biobased products in 2012 at $252 billion, with biofuels and plant extracts comprising more than half. Sales of renewable chemicals reportedly represented 9% of the $2,820 billion worldwide chemical sales for that year.

Biobased products sales are estimated to have an annual compounded growth of 8% by 2020. Worldwide sales of chemicals are expected to grow at 4%/year overall. By 2020, McKinsey expects the highest growth rates in sales of new biopolymers and renewable chemicals, biocatalysts for industrial processes and biologic medicines, as well as biofuels.

Supportive policies are expected to help growth the 21st century biobased economy, according to BIO. The report also outlined federal and state policies in the USA that support the industry. An example is the 2014 Farm Bill extended loan guarantee eligibility to biobased product makers and renewable chemical producers through the section 9003 program.

“The Farm Bill extended loan guarantee program ensures renewable chemical producers can access necessary capital to build large-scale biorefinery projects in rural areas, creating new high value jobs and driving economic growth. The USDA under the leadership of Secretary Tom Vilsack also has been a leading champion for the renewable chemical and biorefinery industry.

Important policy drivers for the future include legislation that would create tax incentives for qualifying renewable chemical production and investments in biorefineries. Spurred by this draft federal legislation, a number of states, such as Iowa and Minnesota, recently enacted production tax credits for renewable chemicals that will help attract renewable chemical companies, build capital investment availability and speed commercialization.” – Brent Erickson, exec. VP, BIO’s Industrial and Environmental Section

BIO is hoping to continue updating the report periodically with new start-ups, acquisitions and mergers, and established companies selecting new chemical targets.

I will be writing a short analysis and my updates based on this report on Tecnon OrbiChem September edition of the Biomaterials newsletter. By the way, for our Biomaterials subscribers, please let me know if you like me to continue our report on Cellulosic Fibers.

About Doris de Guzman

Will Green Chemistry save the world or is it hype? Doris de Guzman examines alternative processing, new technology, R&D and other sustainability initiatives aimed at preventing pollution; replacing ingredients; and using renewable feedstocks in Green Chemistry. She has been covering the oleochemicals market for 15 years and spread her beat to inorganics, biofuels and green chemistry.

Discussion

2 Responses to “New BIO Report: Renewable Chemical Commercialization”

  1. PROBIOTICS are a potential new opportunity in cosmetics; particularly in skin care.I think there in plenty of room in this arena for new products.

    Posted by Robert Verdicchio PHD | September 11, 2016, 12:57 pm

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