US and Brazil to drive growth of bio-based materials market

Led by growth in the US and Brazil, the global capacity to produce bio-based materials and chemicals (BBMC) from emerging technologies will rise to over 7.4 million metric tonnes in 2018, more than tripling from 2008 levels, according to Lux Research.
 
“Strong growth is likely in North America, with 17 BBMC facilities set to come online, many driven by emerging technology like Elevance Renewable Sciences’ metathesis technology and Butamax Advanced Biofuels’ retrofit for the production of isobutanol. Some of the planned facilities – like those of Butamax – plan to retrofit existing ethanol facilities, a move that is likely to accelerate in the coming years,” said Andrew Soare, senior analyst of Lux Research and the lead author of the report titled, ‘Capacity growth and trends of emerging bio-based material and chemical technologies’.
 
As per Lux Research report, lignocellulosics will be fastest-growing feedstock. Sugar and starch will remain the dominant feedstocks, accounting for 58 percent of total capacity, but capacity fed by lignocellulosics, such as risk husks and corn stover, will register the fastest growth, at a whopping 85 percent compound annual growth rate (CAGR).
 
Intermediate chemicals such as lactic acid and monoethylene glycol, with 2.94 million metric tonnes, will hold a nearly 40 percent share of the total capacity. Polymers, like polylactic acid and bio-derived polyethylene, will gain a 32 percent share with 2.39 million metric tonnes, but bio-oils and derivatives will grow the fastest - at a 38% rate, crossing one million metric tonnes in capacity in 2018.
 
“Specialty chemicals, led by ethyl acetate, butyl acetate, Dow Ecolibrium plasticiser, and farnesene, expanded rapidly from almost no capacity as late as 2010 to over 582,000 MT in 2014,” said Lux Research in the report. However, due to the limited number of players in this space set to scale up to commercial volumes, this segment will grow slowly at just a 4 percent CAGR through 2018.