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Capacity for bio-based chemicals intermediates to double in 2017

Market for bio-based materials and chemicals to become nearly 13.2 million tonne, while specialty chemicals expand six-fold to 5,90,000 MT in 2017, according to Lux Research

ImageBS B2B Bureau B2B Connect | Boston, Massachusetts
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Bio-based material and chemical (BBMC) technologies have reached an inflection point with companies scaling to commercial production levels and growing revenues, according to Lux Research. The leading growth category will be intermediate chemicals like adipic acid and lactic acid, with capacity growing from 2.0 million metric tons (MT) to 4.9 million MT in 2017, while the capacity of bio-derived polymers – currently at 1.1 million MT – will grow 18% per year through 2017.
 
“The basic science of bio-based materials and chemicals has advanced to the point that dozens of chemicals can now be produced from multiple feedstocks, at costs that are competitive with petroleum, at least in theory and at scale. As a result, bio-based material and chemical manufacturers continue to expand and diversify into new feedstock types, product types, and geographical areas,” said Julia Allen, Lux Research Analyst and the lead author of the report titled, ‘Cultivating capacity for bio-based materials and chemicals through 2017’.
 
As per the report, specialty chemicals like farnesene will grow at a compound annual growth rate (CAGR) of 46% between now and 2017; companies set to benefit include players like Solazyme and Segetis. North America now ranks fourth in global capacity, but will become a leader by 2017 as American start-ups like Gevo build plants closer to home. Europe's share of global capacity is expected to drop from 37% in 2005 to 14% in 2017.
 
Lux Research expects first-generation sugar/starch feedstocks – such as corn and sugarcane – to remain the dominant bio-based source. Cellulosic feedstocks will grow relatively slowly, and the rise of new sources like bio-oils and waste gas will help lower cellulosics' share from 67% to 27%.

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First Published: Feb 20 2014 | 5:25 PM IST

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