Economic weakness continues bio-based chemicals market sees heat

Despite a weaker economic outlook, interest in bio-based chemicals remains high, driven by the global decarbonization movement and consumer preference for greener products. This continued interest stands in stark contrast to the lull in investment in biobased chemicals following the 2008 financial crisis.

In the last recession, the market, including venture capitalists, The interest in bio-based chemicals has indeed waned or even disappeared. This time, what we are seeing is a firm confidence of industry players, who have more realistic perceptions and a deeper understanding of the market.”

This continued interest in bio-based chemicals is reflected in investment projects announced this year, despite economic indicators pointing to continued inflation.

Brasco announced in January that it is considering building the world's first commercial-scale production facility for bio-based polypropylene in the United States. The facility will use the company's proprietary technology and use bioethanol as a feedstock. Mark Nikolic, CEO of Brasco Americas, said, “The inclusion of bio-based polypropylene in the product portfolio will help the company achieve its goal of 1 million tons/year of biopolymer production capacity by 2030 and help Company to be carbon neutral by 2050". Brasco began producing high-density polyethylene and linear low-density polyethylene with bioethanol as raw materials in Brazil in September 2010.

French company Afyren also announced that it will build a second bio-based carboxylic acid plant in Thailand. The company has signed a cooperation agreement for the project with Thailand's Liangyi Company, which will supply raw materials for the production facility.

Some chemical manufacturers are also ramping up their M&A efforts to add favorable bio-based ingredients to their product portfolios. Croda International, a British specialty chemical manufacturer, announced this year that it will acquire South Korea's Solus Biotechnology Company from Solus Advanced Materials for 350 billion won (about 1.824 billion yuan). German fragrance giant Synergy has acquired a majority stake in Israeli plant-based antimicrobial producer Synergio. (Pang Xiaohua)