Published on : Jan 22, 2015
It is expected that the global production capacity of bio-based materials and chemicals will increase significantly by 2018. The growth will primarily be driven by growth taking place in Brazil, and the U.S. As a result, with the help of the emerging technologies the production will be greater than 7.4 million metric tons. Also, the market for bio-based materials and chemicals will be fueled by strong growth in the North America region, which will be witnessing the establishment of 17 bio-based materials and chemicals facilities. Many of these facilities will be driven by upcoming technologies like Elevance Renewable Sciences metathesis technology and Butamax Advanced Biofuels’ retrofit that is meant for the manufacturing of isobutanol.
The planned facilities like that of Butamax have plans of retrofitting the current ethanol facilities. This will be a move that will get accelerated in the forthcoming years. According to industry specialists and experts, the most rapidly growing feedstock will be of Lignocellulosics. Thus, starch and sugar will be the dominant feedstocks that will account for almost 58% of the entire capacity. However, capacity that will be fed by lignocellulosics like corn stover and husks will witness highest rate of growth of almost 85% CAGR.
Intermediate chemicals like monoethylene glycol and lactic acid will hold about 40% of the total capacity. And polymers like bio-based polyethylene and polylactic acid will have a share of 32% and the segment of bio-oils and derivatives will witness robust growth at a CAGR of 38% and it will cross a capacity of one million metric tons.