Uncertainty emerged as a central theme at the 4th Annual Global Biobased Economy Conference, held in Washington, D.C., and hosted by the Alternative Fuels and Chemicals Coalition (AFCC). The event brought together over 500 attendees to discuss the future of federal programs and funding under the incoming Trump administration, particularly those tied to the Biden-Harris Inflation Reduction Act (IRA). The $370 billion IRA legislation supports energy and climate initiatives under Executive Order 1408, and its continuation faces potential challenges amid anticipated policy shifts.
Some speakers at the conference provided cautious optimism, emphasizing that certain appropriations already enacted under the IRA would remain available to applicants for a defined period. Others speculated that a Republican-led administration might modify, rather than eliminate, IRA programs to improve efficiency. Notably, many bio-related energy projects are in Republican congressional districts, underscoring the agriculture sector’s critical role in these initiatives. Any attempts to reverse the IRA could coincide with efforts to extend provisions from the Trump administration’s 2017 tax overhaul.
Key concerns centered on the incoming administration’s appointments to pivotal agencies such as the U.S. Department of Agriculture, the U.S. Department of Energy, and the Department of Defense, collectively driving significant financing for bio-based fuels and chemicals. A particularly vital program for the renewable chemicals sector is the Section 9003 initiative, officially known as the “Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program.” This program offers up to $250 million in loan guarantees for eligible applicants developing advanced biofuels, renewable chemicals, and biobased product manufacturing facilities incorporating innovative technologies.
Many renewable chemicals and bioplastics companies relying on these loan programs are bracing for potential policy shifts, given the incoming administration’s stated intent to dismantle current climate initiatives and its strong ties to fossil fuel and petrochemical industries. In response, companies are expected to increasingly pursue public-private funding partnerships to advance manufacturing scale-up efforts.
Despite these uncertainties, the conference highlighted positive developments, including significant U.S. biomanufacturing scale-up updates from several renewable chemical companies, such as those cited below.
🧱 Sustainea partnered with Primient to co-locate its planned corn-based MEG production facility in Lafayette, Indiana. The project’s production capacity, expected to begin operation in 2028, was not disclosed. Sustainea’s broader bio-MEG strategy includes constructing three industrial plants with a combined production capacity of 700,000 tons/year of bio-MEG.
🧱 Lygos and CJ BIO are building a biorefinery complex in Fort Dodge, Iowa. The complex will produce up to 40,000 tons/year of Lygos’ flagship products, Soltellus™ biodegradable polymers and Ecoteria™ biobased malonates. The partnership also contemplates expanding to produce biobased aspartic acid and launching new biobased and biodegradable materials. The facility’s capacity can increase to 100,000 tons/year.
🧱 Solugen is building its Bioforge biomanufacturing facility in Marshall, Minnesota, adjacent to Archer Daniels Midland’s (ADM) corn processing complex. The facility, with a capacity of up to 120,000 tons/year, will house three modular trains that use dextrose feedstock to manufacture low-carbon organic acids for water treatment, agriculture, energy, and home and personal care applications. It is expected to come online in the fall of 2025.
🧱 Trillium Renewable Chemicals is building its first demonstration plant, Project Falcon, which will convert glycerol into acrylonitrile at INEOS Nitriles’ Green Lake facility in Port Lavaca, Texas. The facility will start operations in early 2025 and run through early 2026.
Green D Market Analytics moderated the Track 1 Session 4 panel at the AFCC, which focused on lessons learned and the challenges associated with biomanufacturing scale-up as presented by Origin Materials, Verde Bioresins, NatureWorks, Danimer Scientific, and Qore. The panel expressed optimism regarding the sustained growth of the bioplastics industry; however, concerns were noted about the likelihood of continued federal funding support under the new administration.
🔑 Origin Materials has shifted its focus from expanding its 5-CMF capacity in the Gulf Coast to prioritizing the production of PET caps. The company previously announced an organizational realignment to accelerate profitability and address the growing demand for PET caps projected for 2025 and 2026. This strategy reallocates resources to the caps and closures segment, with its 5-CMF biomass conversion plant, Origin 1, in Ontario, Canada, now operating on an on-demand basis with reduced staffing.
🔑 Verde Bioresins has announced plans to go public through an initial public offering (IPO) to raise capital for scaling its production of PolyEarthylene™, a proprietary bio-based and biodegradable polyolefin. The company is installing a third production line, increasing its California facility’s capacity to 50 million pounds annually. Significant expansion plans for a second location are also slated for next year.
🔑 NatureWorks is constructing its second polylactic acid (PLA) production facility in Map Ta Phut, Rayong, Thailand, with an annual capacity of 75,000 tons. Drawing on over a decade of experience operating its first PLA plant in Blair, Nebraska, the company recognizes the importance of diversifying feedstock sources and application areas. While funding for the new facility is well-supported by its parent companies, Cargill and PTT Global Chemical, NatureWorks noted that the investment recovery period remains extended for novel materials such as PLA. Customers typically require prolonged testing phases before product deployment, further impacting the time necessary to achieve financial returns.
🔑 Danimer Scientific is advancing its plans for a world-scale greenfield PHA production facility in Bainbridge, Georgia, with a fermentation capacity of 600,000 liters, equivalent to 125 million pounds per year of finished PHA-based resin. Having invested over $187 million in the project, the company seeks additional funding from the U.S. Department of Energy’s Loan Programs Office. Furthermore, Danimer has expanded its Rochester, New York, demonstration plant to support testing its Rinnovo® PHA polymers, produced via a thermocatalytic process. The expanded facility can now produce 20 tons per year in continuous operation.
🔑 Qore, a privately held joint venture between Cargill and Helm, is constructing a bio-based 1,4-Butanediol (BDO) production facility in Iowa, scheduled to begin operations in early 2025. Qore addressed the challenges of overcapacity from coal-based BDO production in China by targeting demand from branded companies seeking sustainable alternatives, particularly textiles. Its corn-based BDO, marketed under the QIRA™ brand, has already secured offtake agreements with major partners such as Lycra and BASF.
Green D Market Analytics can provide a special report highlighting the market for renewable chemicals and biopolymers such as PLA, PHA, PBAT, and PBS. We provide our clients with confidential reports on the current renewable chemicals market landscape, including new and planned projects. Please contact us for more information about our customized client services, detailed market data, and special reports.
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