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Global Industry Insight: Biobased Chemicals Market Development and Demand Forecast to 2020
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Biobased chemicals release less carbon dioxide (CO2) than chemicals manufactured with conventional feedstock. The production of biobased chemicals reduces the greenhouse gas emissions of the downstream users and petrochemical industry. Although the conventional petroleum based process is expected to become more greenhouse gas efficient with time due to technological advancements and enhanced exploration methods such as deep sea drilling, tar sands and arctic exploration. It will pose a great challenge to the biobased chemicals market in the coming years and will push the biobased chemicals producers in making more advanced products. Integration of biobased chemical production with biofuel production depends on many factors such as technology and feedstock fit with the biorefinery, biorefinery location, business plans and capital cost of integration versus stand alone chemical production.
On the basis of product type, the biobased chemicals market can be categorized as polymers, alcohols, ketones, 1,3-Propanediol, epichlorohydrin and organic acids. The biobased chemicals market can be categorized on the basis of chemicals as 3-Hydroxypropionic acid, levulinic acid, glucaric acid, polylactic acid (PLA), itaconic acid, bio ethylene, aspartic acid, polyhydroxyalkanoate (PHA), and glutamic acid. The strongest growth is in the polylactic acid, polyhydroxyalkanoate and bio ethylene categories as they are used to manufacture bio based plastics.
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Some of the factors driving the growth of the biobased chemicals market are technological innovations, boost for rural economy, abundant and low cost feedstock and growing popularity of biopolymers and platform chemicals. Improvements in technology have constantly led the chemical industry to influence new feed stocks that provide advantages in terms of cost while bringing up a sustainable chemical product. Government supports and funds to the biobased chemicals manufacturers, such as the biorefinery assistance program conducted in the U.S. states that companies producing high performance biobased chemicals and products will only be eligible for loan guarantees while building the essential manufacturing plants.
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