Bio-industries must tackle feedstock issues

Boston, Massachusetts – The bio-based materials and chemicals sector needs to tap newer, non-food sources of feedstock before it can become a viable alternative to petroleum-based products, according to Lux Research.

Currently, the high cost of capital and operations limit bio-based materials and chemicals to a few facilities located where corn and cane are plentiful and cheap, notes a Lux Research report.

“Bio-based materials and chemicals manufacturers need syngas and sugar to fuel their growth. Gasification and enzymatic hydrolysis are key technologies for securing vast amounts,” said Mark Bünger, research director and the lead author of the report.

Lux Research analysts studied cost drivers in gasification, enzymatic hydrolysis of cellulosics and algae cultivation to find opportunities where new technologies can turn them to profit. Among their findings:

- Algae remains a cost-intensive loser. In Lux Research’s model, algae cultivation yields a 48% loss, calling into question its long-term prospects. The problem lies in the high capital costs for growing algae at industrial scale, which amount to $202,000 per hectare.

- Syngas fermentation has great new product potential. The many products of syngas fermentation proven at lab scale or larger include ethanol, butanol, acetic acid, butyric acid, 2,3-butanediol and methane. Leading startups in this domain include ZeaChem, which is collaborating with Procter & Gamble, and LanzaTech.

- There’s hope for cellulosic biomass, but costs need to fall. Enzymatic hydrolysis is being commercialised at new facilities like GraalBio’s plant in Brazil, using the latest enzymes from Novozymes and DSM. However, many parts of the process need to improve, including harvesting and/or collecting biomass, which adds $15 per tonne, or $0.21 per gallon, in costs.