Developments in the biodegradable polymers industry

Significant effort is ongoing to develop cost-competitive biodegradable polymers, functionally suitable for widespread use.

Plastic producers actively invest in technology under the pressure of stricter government regulations, and end users increased preference for sustainable materials.  At the same time, consumer brands are making pledges to increase recycled and biodegradable materials content to address growing public awareness.

Consumers favour environmentally friendly alternatives, resulting in bold sustainability commitments.

Sophisticated formulations are marketed for specific applications, but these are generally applications in which the biodegradability or renewable origins of the material are a vital marketing attribute.  These niche markets tend to pay higher prices for real or perceived environmental benefits, and they grew rapidly but are orders of magnitude smaller than demand for conventional plastics.

Fungible polymers, biopolymers, blending of biopolymers, or bio/petro composites are typical approaches to lower formulated biopolymers costs, improve mechanical properties, and report biodegradable content.

In December 2021, the Food and Agriculture Organisation of the United Nations (FAO) published a report assessing the sustainability of agricultural plastic products recommending the replacement of non-biodegradable, conventional polymers with biodegradable, bio-based polymers.  The chairman of European Bioplastics (EUBP) welcomed the recognition of the environmental benefits of these biodegradable products highlighting the benefits in reducing dependence on fossil carbon sources, by using renewable carbon instead, and by playing a valuable role in reducing residual plastic pollution in soil, which can significantly impact agricultural productivity.

Biodegradable versus Biobased Polymers

As more sustainable products enter the market, their categorization complexified. Products are frequently labelled as biodegradable, bio-based or compostable. Bio-based polymers are not necessarily biodegradable, and not all biodegradable polymers are bio-based.

a Fully renewable feedstock routes are available or in development, but not common practice

b Partially renewable feedstock routes are available, fully renewable routes are in development

Each has different consumption drivers, though sustainability is the underlying motivation. Biodegradable polymers demand is driven by end-of-life concerns, including plastic waste accumulation in waterways and landfills, and challenges with existing solutions like mechanical recycling. Whilst bio-based polymers demand is driven by feedstock concerns associated with the use of fossil resources.

Sustainable bioplastics are generally grouped into:

• Bio-based plastics are made from bio-based resources. They may be extracted from plants – e.g., starch and cellulose –, or manufactured by microorganisms in fermentative processes or thermo-catalytic conversion of biomass or biomass fractions. Examples of biobased feedstocks include corn, sugarcane, palm oil, soybean oil, fats, wood, and grasses.

• Biodegradable plastics are made from natural or fossil resources and degrade by microorganisms activity in their natural environment. It degrades to CO2 and water with no residue under normal ambient conditions on land or in waterways in the short term (i.e., within months or few years). If biodegradable plastics degrade by compostability standards (e.g., the European standard EN 13432) they are compostable

• Polymers manufactured using bio-based processes. As technologies using biocatalysis scale-up capacities, such as methane and syngas fermentation, a third class of bio-polymers is emerging (i.e., biotechnology produced polymers). These technologies can consume bio-methane or bio-syngas and yield bio-based plastics produced via bio-based processes

Oxo-biodegradable plastics are often associated with sustainable plastics but distinct from them, are mainly composed of polyolefins such as polyethylene and polypropylene, containing further chemical additives intended to accelerate degradation. They decompose partially, generating microplastics and are not considered bioplastics. They are outlawed in many jurisdictions.

Sustainability is built around Ecological Good (good for the Planet), Sociological Good (good for People), and Economic Good (good for Profits). Proving sustainability is generally accomplished via Life Cycle Analysis (LCA) and impact analysis studies. For instance, waste plastics, municipal solid waste (MSW), CO-rich stack gases, and atmospheric CO2 might be deemed sustainable feedstock.

Industry Trends and Drivers

Sustainability concerns are the primary drivers of biodegradable polymers demand:

Political

• Many governments are claiming to be committed to transitioning to renewable a low-carbon economy and meeting its carbon reduction and renewable targets.

• Sustainability has come to the fore as consumer awareness of plastic waste and emissions grow.  Governments have implemented regulations and bans on bans on single-use plastics at national and state levels to accelerate environmental pledges.  For example, the dual control policy has had a significant impact on the plastics industry in China.

• Regulations reflect a shift from conventional plastic to biodegradable plastic as they reduces the impact on the environment.

Economic

• A change in the market and consumer trends triggered initiatives to reduce waste which led to implementing plastic taxes/levies on conventional plastics - for example, EU levy of €800 per ton of non-recycled plastic packaging waste.

• Cost to dispose of plastics in landfill are lower than recycling.

• Market trends and consumer awareness led to be increased investment into biodegradable polymers.

• Economic underperformance and political instability will slow down biodegradable plastics in some regions.

• Cost of producing biodegradable is significantly higher than conventional plastics.

Social

• Poor knowledge on waste, recycling and reusing plastics.  Most of the negative plastic publicity is driven by inadequate social habits to collect plastic waste.

• Changes in lifestyles and work patterns due to the COVID-19 pandemic led to increased conventional plastic demand.  However, climate and waste awareness have led consumers and brand owners to pursue sustainable alternatives.

• An increase in the middle class, particularly in Asia, has led to increased demand for sustainable goods, including biodegradable products.

Technology

• Some biodegradable polymers are up to 10 times more costly than conventional polymers.  However, increased investments are projected to improve current processes and reduce costs.

• Improved blending technology material leads to improved starch processability with film equipment.

• Lack of recycling plants in some regions.

• New chemical and mechanical recycling technologies - for example, pyrolysis of plastic waste.

Environmental

• Conventional plastic production releases greenhouse gases linked to climate change and global warming.

• Biodegradable polymers offer an attractive alternative to recycling of conventional plastics.

• Land use for biodegradable polymers is expected to increase by over 50 percent by 2025.

Legal

• New projects with a conventional plastics product slate seeking international project financing (i.e., from commercial banks and export credit agencies) are anticipated to face increased pressure to offer a net-zero path and solutions to plastics collection in different jurisdictions.  Future legal implications are unclear, but large projects co-financed by European-based agencies are expected to face mounting scrutiny.

• Investment funds and private equities have increased their focus on targets' ESG metrics during mergers and acquisitions.  Significantly different concerns and local directives will challenge the legal framework to support transactions between companies in different counites.

• At an individual level, certain countries are introducing hefty fines for littering.

What happens next...

Outlook for Biodegradable Polymers Capacity

Biodegradable polymer production at commercial levels could play a pivotal role in improving sustainability and reducing plastic waste. Yet the solution is not as simple as we hope it will be. There remains uncertainty of how to transition to more sustainable alternatives with attractive cost competitiveness. Without larger paradigm shifts from governments and regulatory bodies or fiscal incentives such as a carbon tax or largescale investment in low-cost renewable energy, biodegradable polymer adoption could remain modest in the near term.

Find out more...

NexantECA has analyzed this sector in depth, resulting in the following publications that evolve around process technology, cost competitiveness, market band profitability.

NexantECA's Market Insights program focuses on market and price forecasts:

Market Insights: Polylactic Acid - 2021 includes discussion regarding key market drivers and constraints, as well as supply, demand and trade analysis for nine regions: North America, South America, Western Europe, Central Europe, Eastern Europe, Middle East, Africa, Asia Pacific, and China with forecasts to 2035.  Analysis, including competitive landscape, who’s who of suppliers and cost competitiveness along with price forecasts to 2035 and a snapshot of latest pricing trends is also included by region.

Polybutylene Adipate Terephthalate (PBAT) - 2021 includes discussion regarding key market drivers and constraints, as well as supply, demand and trade analysis for nine regions: North America, South America, Western Europe, Central Europe, Eastern Europe, Middle East, Africa, Asia Pacific, and China with forecasts to 2035.  Analysis, including competitive landscape, who’s who of suppliers and cost competitiveness along with price forecasts to 2035 and a snapshot of latest pricing trends is also included by region.

NexantECA's Biorenewable Insights program focuses on developments in technology and cost:

Biorenewable Insights: Biodegradable Polymers (2021 Program) analyzes the technoeconomic developments in biodegradable technologies. Relevant commercial technologies processes and high level economics are presented. Impacts on the conventional industry, trends and drivers are also discussed.

Biorenewable Insights: Biocomposites (2021 Program) provides an analysis of technologies and activity within the biocomposites space. Biocomposites investigated include bioresins (such as PLA, TPS, and others) and use of biomass (such as wood, natural fiber, or other materials) as filler or binder material. Several case studies are also provided.

The Author

Olu Shaw, Consultant